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newsrel -- CARB approves $200 million VW zero-emission vehicle investment in California

Posted: 27 Jul 2017 17:23:29

Please consider the following news release from the California
Air Resources Board:



July 27, 2017



Stanley Young
(916) 956-9409 - cell
(916) 322-2990 - office

CARB approves $200 million VW zero-emission vehicle investment in

Plan to guide first phase of $800 million court-ordered

SACRAMENTO — The California Air Resources Board (CARB) today
approved the first of four plans by VW to invest $800 million
over 10 years in zero-emission vehicle (ZEV) infrastructure,
public outreach, and access to these ultra-clean vehicles for
residents of disadvantaged communities. The investment is part of
a multi-pronged settlement agreement resulting from the
automaker’s use of software that caused its 2009-2016 diesel
passenger cars to spew up to 40 times the allowed amount of
nitrogen oxide (NOx) into the atmosphere.

“We are pleased that Volkswagen can now move forward with its
ambitious plan to help bring electric vehicle technology to
corners of California ignored in earlier efforts,” said CARB
Chair Mary D. Nichols. “This will help the state as a whole, and
especially some of our disadvantaged and underserved communities,
to shift to the cleanest vehicles on the market to help clean the
air and fight climate change.” 

The tenacious efforts of CARB technicians forced the company to
admit the use of the so-called “defeat device” in those cars in
2015. VW has paid out more than $15 billion in claims and
penalties for using those defeat devices, and this ZEV investment
is one of multiple pieces to mitigate the environmental harm
caused by VW’s actions.

A separate part of the overall agreement requires VW to mitigate
the excess NOx emissions of its diesel passenger cars by paying
about $422 million to California to replace older, dirtier
heavy-duty vehicles and equipment with cleaner versions. The
agreement also requires VW to buy back or fix affected vehicles,
and to pay $153.8 million to the State in penalties.

The $800 million ZEV investment commitment is part of an
agreement by the company with CARB, U.S. EPA, the California
Department of Justice and the U.S. Department of Justice that
combines mitigation and penalties to fully resolve all of the
environmental harm from VW’s actions.  The funds will be invested
by Electrify America, a subsidiary of VW created for that
purpose, in four installments of $200 million each over the next
10 years in projects identified in four separate 30-month
Investment Plans approved by CARB through a public process. 

The first $200 million invested in California will build the
basic charging network around the State, launch the multi-lingual
public outreach and education campaign, and begin ZEV access
projects, including the first “Green City” project. Electrify
America has chosen Sacramento as the first of two Green Cities,
in which it will provide a set of ZEV initiatives that are
accessible to city inhabitants and offer residents better quality
of life through enhanced mobility and improved air quality. This
will include charging stations and access to ZEVs for car
sharing, and other “ride and drive” opportunities. A second Green
City in a disadvantaged community will be selected in a later
phase of the investment.  

The first phase of the Investment Plan, which is made up of a
Plan and Supplement, will also include ZEV infrastructure
rollouts in six metropolitan areas. Those cities are Fresno, Los
Angeles, San Francisco, San Jose, San Diego, and Sacramento. The
Plan includes community charging networks in each of these
cities, as well as a statewide high-speed charging network. The
vehicle charging networks include community locations,
multi-family dwellings, commercial and retail locations,
workplaces and municipal parking lots and garages.

Electrify America intends to put chargers into disadvantaged
communities and other areas where they do not yet exist. The
company estimates that more than 35 percent of its investments
will benefit those communities.

With oversight of these investments, CARB will continue to
provide guidance to Electrify America as it implements the plan.
Electrify America will file detailed, written reports to CARB on
a regular basis, and CARB staff will continue having regular
discussions with Electrify America to monitor and assist with the
investment projects.  

CARB’s oversight role will also ensure compliance with the
requirements of SB 92, passed by the Legislature this session. SB
92 requires that CARB approve or disapprove each proposed Plan at
a public meeting, that the Plans be posted publicly, and that
CARB strive to ensure that at least 35 percent of the investments
benefit the state’s disadvantaged communities. 

CARB will also ensure compliance with its written guidance and
the Consent Decree’s terms and goals. Additionally, an
independent auditor will monitor VW’s efforts for compliance with
CARB’s approvals and the Consent Decree.

Frequently Asked Questions is here:

The Electrify America ZEV Investment Plan is here:

The Plan Supplement can be viewed here:

Electrify America’s website is here:

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