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May 29, 2019
Transportation Electrification Accounts for 42% of All VW Settlement Awards So Far
Source: EV Hub
Three years following the finalization of the settlement agreement, less than 10 percent of the roughly $2.5 billion total in state mitigation funds has been awarded, according to the EV Hub VW Settlement Funding Awards dashboard. The story is mostly positive for transportation electrification with 42 percent of total funds awarded going to EV charging and electric trucks and buses. Electric transit buses alone account for more than 27 percent of the total $207 million that has been awarded since the first announcements last year.

A newly released scorecard from the U.S. Public Interest Research Group argues that states aren’t doing enough to prioritize transportation electrification. The report scored states based on the prioritization of EVs in their mitigation plans with 35 states, the District of Columbia, and Puerto Rico scoring a “D” ranking or worse. Indeed, existing state plans dedicate less than 30 percent of funds to electrification and that number falls to 16 percent when you exclude California.

States should take steps to dedicate more funds to transportation electrification through modifying their mitigation plans, but a closer look at the existing state plans and a scan of the announced funding awards reveals a more positive situation than the pessimistic headlines generated by the scorecard. Electric transit buses, for example, make up more than 63 percent of the total transit bus funding awards so far. In addition, some states that do not dedicate funds for electric trucks and buses in their plans, like New York, have indicated a very strong preference for funding zero emission projects.

Another positive development from the settlement is the growing state interest in funding EV charging infrastructure with 45 states committing to the technology. Of those states, 33 have indicated plans to spend the maximum 15 percent on charging deployment. These investments of more than $270 million could make a meaningful contribution to filling the expected charging gap.

Electric trucks and school buses, however, have not fared as well so far and that’s likely because these technologies are largely still in the pilot phase. Electric school buses have only received one percent of the total $63 million invested in school buses. At the end of 2018, it was estimated that there were more than 150 electric school buses in the United States with most of these concentrated in California (electric transit bus deployment was as high as 1,650 through the same period). More than three times as expensive as conventional alternatives, electric school buses are unlikely to generate lifetime savings for operators under current market conditions due to low usage.

Electric trucks face similar challenges to electric school buses in terms of market readiness. Although states liked Minnesota have dedicated funds to pilot electric trucks, none have pulled the trigger on awarding funds yet.

States can overcome challenges with these new technologies by seeking synergies between public funding, clean transportation targets, and electric utility engagement. Hawaiian Electric seeks to support Hawaii’s mitigation plan and clean transportation goals by offering reduced rates for off-peak transit bus charging. This is just one example of when the VW settlement has generated new partnerships. Combined with other programs including the Federal Low-No Grant Program to subsidize the purchase of electric transit buses, states have significant resources at their disposal to commit to transportation electrification.
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EV Hub News

Tennessee Allocates $8.8 Million of VW Settlement Funds for School Bus Replacement

On May 22, 2019, Tennessee announced the recipients of $8,854,685.42 in VW Settlement grants to replace older models of diesel school buses with newer and cleaner alternatives.

The funding will help replace 143 older diesel school buses with one electric, 68 diesel, 66 propane, and eight CNG school buses. 39 school districts across the state were selected to receive grants in this funding cycle. Read More Here

Colorado Adds 24 Electric Buses Through the VW Settlement

Colorado announced almost $14 million in awards through the VW Settlement on April 18, 2019. The funding will go towards the purchase of 24 electric buses, three CNG buses, and one LPG bus throughout the state. This is the first award made from the state’s $68 million total allocation. 

Boulder, Colorado Springs, Fort Collins, and Eagle County will receive their first electric buses through this round of funding. Read More Here

Indiana Announces Round One RFP for VW Settlement Funding

Indiana announced the first round RFP for VW Settlement funding on March 27, 2019. This RFP is administered by the Indiana Department of Environmental Management (IDEM) and will remain open until June 17, 2019. $9.8 million of the total $40.1 million allocated to the state will be available during this round of funding. 

Only school buses have funding specifically set aside to support electrification, for a total of $850,000, although electric vehicles are allowable as replacements for the other project categories. Read More Here

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Job Openings
Below are current job openings in transportation electrification: If you have a job posting you would like to share with EV Hub users, please send them to us in an email at info@atlasevhub.com.
Upcoming Events

The Missouri Department of Natural Resources will hold a public meeting to provide an update on the Volkswagen Trust in Missouri. Read More Here

May 30th @ 1:30pm CST at Elm Street Conference Center in Jefferson City, MO 

ASCE International Conference on Transportation & Development (ICTD 2019) is organized to facilitate exchange of information, knowledge, and best practices among transportation and development practitioners and researchers, public infrastructure owners, policymakers, government engineers and planners, operations managers and leading academics from around the world. Read More Here

June 9th-12th @ the Hilton Alexandria Mark Center in Alexandria, VA 

Veloz is presenting a webinar about bringing electric mobility to communities across California. Read More Here


June 13th @ 10:00pm EST
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