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Volkswagen Settlement

Air & Waste Management Meeting

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Volkswagen Matters

Volkswagen Matters

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“Subject Vehicles emit levels of oxides of nitrogen (“NOx”) significantly in excess

of the EPA compliant levels.” – Consent Decree

• Texas had 7.11% of the Volkswagen vehicles with illegal emissions controls

• National Ambient Air Quality Standards (NAAQS)

• DFW area in non-attainment for 8-hour ozone

• 2008 75ppb (Moderate: July 2018 Attainment deadline)

• 2015 70ppb (tbd)

• Emissions not accounted for in the State Implementation Plan (SIP)

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Source:

https://www3.epa

.gov/airquality/gr

eenbook/map/ma

p8hr_2008.pdf

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Dallas Fort Worth International Airport

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Vision Mission

Key Results

We provide an exceptional Airport experience for our customers and connect our community to the world.

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Achieving Neutrality Offset prior year’s emissions for operations under the Airport’s direct control

Electricity 70%

Facilities 12%

Fleet 16%

Other 2%

Carbon Offsets

Texas Landfill and

Wastewater Treatment

Plant Methane Capture

Projects 100% Renewable Energy

Texas Wind Power

DFW Commitment to action

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• Decrease electricity use

• Decrease fuel use Energy Reductions

• Optimize performance

• Continue to invest in energy efficiency programs

Energy Optimization

• Use low carbon energy sources

• Onsite/offsite renewables Low Carbon Energy

• Offset residual emissions

• Renewable Energy Certificates

• Certified Carbon Offsets

Offset

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Renewable Energy Use and Energy Cost by Year

Grants

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But also, funding.

2.0 Liter Class Action Settlement and FTC Order: $14.7 Billion

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Electrify America

Environmental Mitigation Trust

Vehicle Recall and Emissions Modification Program

$2B

$2.7B

$10.033B

$208M with 3.0 L

$1.2B

2.0 Liter Class Action Settlement and FTC Order: $14.7 Billion

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Electrify America

Environmental Mitigation Trust

Vehicle Recall and Emissions Modification Program

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Vehicle Recall and Emissions Modification Program

2.0 L Recall and Emissions Modification

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• Approximately 500,000 Volkswagen diesel cars equipped with 2.0 liter engines

• Beetle, Golf, Jetta, Passat, Audi A3

Photo credit: Volkswagen

3.0 L Recall and Emissions Modification

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• Volkswagen Touareg

• Audi Q7, A6, A7, A8, A8L, Q5

• Porsche Cayenne Diesel

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Environmental Mitigation Trust

Eligible Mitigation Actions

How it will work

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Third-part trustee must file signed trust agreement

Texas must file to become a beneficiary

Texas

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$191M from 2.0L Settlement and $17M from 3.0L Settlement

First allocation will be approximately $50M (can not be more than 1/3 of funding each year)

10-15 years to spend allocated funds

Eligible Mitigation Actions

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Beneficiaries of the trust fund can remediate excess NOx emissions via 10 eligible mitigation

actions outlined in Appendix D-2 of the Consent Decree associated with the 2.0L Settlement.

Not subject to Buy American requirements (as of yet):

1. Class 8 Local Freight Trucks and Port Drayage Trucks (Eligible Large Trucks)

2. Class 4-8 School Bus, Shuttle Bus, or Transit Bus (Eligible Buses)

3. Freight Switchers

4. Ferries/Tugs

5. Ocean Going Vessels (OGV) Shorepower

Eligible Mitigation Actions

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6. Class 4-7 Local Freight Trucks (Medium Trucks)

7. Airport Ground Support Equipment

8. Forklifts

9. Light Duty Zero Emission Vehicle Supply Equipment

10.Diesel Emission Reduction Act (DERA) Option

Replacement:

• Old vehicle must be scrapped

• New diesel or alternative (alt) fuel vehicle (25% funding for non-government)

• All-electric vehicle (75% funding for non-government)

Repowered with:

• New diesel or alt fuel engine (40% funding for non-government)

• All-electric engine (75% funding for non-government)

Eligible Categories:

1. Class 8 Local Freight Trucks and Port Drayage Trucks (Engine year 1992-2009)

2. Class 4-8 School Bus, Shuttle Bus, or Transit Bus (Engine year 2009 or older)

3. Freight Switchers (Pre-Tier 4 switcher locomotives that operate 1000 or more hours/year)

Mitigation Actions 1-3

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Mitigation Actions 1-3

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Replacement:

• Old vehicle must be scrapped

• New diesel or alternative (alt) fuel vehicle (100% funding for government)

• All-electric vehicle (100% funding for government)

Repowered with:

• New diesel or alt fuel engine (100% funding for government)

• All-electric engine (100% funding for government)

Eligible Categories:

1. Class 8 Local Freight Trucks and Port Drayage Trucks (Engine year 1992-2009)

2. Class 4-8 School Bus, Shuttle Bus, or Transit Bus (Engine year 2009 or older)

3. Freight Switchers (Pre-Tier 4 switcher locomotives that operate 1000 or more hours/year)

Electric Buses

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Electric Vehicles

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Under the electrification categories, associated charging infrastructure is also included at the

same percentage.

Power Unit Kiosk

Mitigation Action 4

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Eligible Ferries/Tugs

4. Unregulated, Tier 1, or Tier 2 marine engines

Repowered with:

• Old engines must be scrapped

• New Tier 3 or Tier 4 diesel or alt fuel engine (40% funding for non-government)

• All-electric engine (75% funding for non-government)

Eligible Ferries/Tugs

4. Unregulated, Tier 1, or Tier 2 marine engines

Repowered with:

• Old engines must be scrapped

• New Tier 3 or Tier 4 diesel or alt fuel engine (100% funding for government)

• All-electric engine (100% funding for government)

Mitigation Action 4

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Mitigation Action 5

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Eligible Marine Shorepower:

5. Equipment to enable vessel’s main and auxiliary engines to remain off while at berth

Purchase Shore-side System:

• 25% funding for non-government

• 100% funding for government

Replacement:

• Old vehicle must be scrapped

• New diesel or alternative (alt) fuel vehicle (25% funding for non-government)

• All-electric vehicle (75% funding for non-government)

Repowered with:

• New diesel or alt fuel engine (40% funding for non-government)

• All-electric engine (75% funding for non-government)

Eligible Categories:

6. Class 4-7 Local Freight Trucks (Engine year 1992-2009)

Mitigation Action 6

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Mitigation Action 6

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Replacement:

• Old vehicle must be scrapped

• New diesel or alternative (alt) fuel vehicle (100% funding for government)

• All-electric vehicle (100% funding for government)

Repowered with:

• New diesel or alt fuel engine (100% funding for government)

• All-electric engine (100% funding for government)

Eligible Categories:

6. Class 4-7 Local Freight Trucks (Engine year 1992-2009)

Mitigation Actions 7-8

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Replacement:

• Old equipment must be scrapped

• All-electric equipment (75% funding for non-government)

Repowered with:

• All-electric engine (75% funding for non-government)

Eligible Categories:

7. Airport Ground Support Equipment (Tier 0-2 diesel GSE, or uncertified or certified to 3 g/bhp-hr

or higher emissions, spark ignition engines)

8. Forklifts and Port Cargo Handling Equipment (Over 8000 pounds lift capacity)

Mitigation Actions 7-8

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Replacement:

• Old equipment must be scrapped

• All-electric equipment (100% funding for government)

Repowered with:

• All-electric engine (100% funding for government)

Eligible Categories:

7. Airport Ground Support Equipment (Tier 0-2 diesel GSE, or uncertified or certified to 3 g/bhp-hr

or higher emissions, spark ignition engines)

8. Forklifts and Port Cargo Handling Equipment (Over 8000 pounds lift capacity)

Mitigation Action 9

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Light Duty Zero Emission Vehicle Supply Equipment

Up to 15% of beneficiary Trust Fund allocation to serve following purposes:

• Electric vehicle supply equipment (EVSE) located in public place, workplace, multi-unit dwelling and NOT at private single-occupant dwelling

• Hydrogen fuel cell vehicle supply equipment

To be funded at:

• 100% EVSE at Government owned property

• 80% EVSE at Non-Government owned property (public)

• 60% EVSE at workplace (not public)

• 60% EVSE at multi-unit dwelling (not public)

• 33% Hydrogen Supply Equipment capable of dispensing 250 kg/day

• 25% Hydrogen Supply Equipment capable of dispensing 100 kg/day

Mitigation Action 10

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Diesel Emission Reduction Act (DERA) Option

May use Volkswagen funding as non-federal voluntary match under DERA Program

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Electrify America

Zero Emissions Vehicle (ZEV) Technology

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$2B over up to 10 years

Directly distributed through Volkswagen

Development, construction and maintenance of ZEV-related infrastructure and education

$1.2B outside California:

• Four 30-month investment cycles

• $300M each cycle

Electrify America Cycle 1

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2,500+ electric vehicle chargers at more than 450 station sites:

• ~240 along high-traffic corridors between metropolitan areas

• 300+ community-based charging stations in 11 target metropolitan areas: Boston, Chicago,

Denver, Houston, Miami, New York City, Philadelphia, Portland, Raleigh, Seattle and

Washington D.C.

• Distributed to regional groups to then distribute further

Educational campaign

For more information

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www.vwcourtsettlement.com/en/

www.electrifyamerica.com

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Competition

Other funding sources

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TCEQ Alternative Fueling Facilities Program/Clean Transportation Triangle Program

TCEQ Texas Natural Gas Vehicle Grant Program

TCEQ Emissions Reduction Incentive Grant

EPA Diesel Emissions Reductions Act (DERA) Clean Diesel Program

DOT FTA Low or No Emissions grant

FAA Zero Emissions Vehicle (ZEV) and Infrastructure Pilot Program

FAA Voluntary Airport Low Emissions (VALE) Program

NCTCOG North Texas Airport Emissions Reduction Call for Projects

Thank You

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Emily Conway Environmental Operations Analyst

Environmental Affairs

DFW Airport

T (972) 973-5565

econway@dfwairport.com

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