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October 4, 2018

VW settlement funds to green CT vehicle fleets soon

More than two years after Volkswagen agreed to pay $14.7 billion to settle allegations that it installed emissions cheating software in its vehicles, Connecticut is nearly ready to start doling out its portion of the money.

Connecticut will administer nearly $56 million from a $2.9 billion mitigation trust, funded by the settlement and aimed at reducing diesel emissions.

Now, companies, municipalities, and state entities are vying for the first round of that money -- a $7.5 million pot -- that will help green truck and bus fleets with newer, cleaner models or with retooled engines.

The Department of Energy and Environmental Protection (DEEP) expects to announce winners as early as this month.

There’s plenty of competition for the first round. DEEP received 56 applications in late July, seeking more than $32 million -- far more than what’s available -- to support the replacement or overhaul of more than 400 vehicles or engines, with a total value of $77 million.

The largest requests include:

  • First Student, $6.6 million to help purchase 114 school buses
  • Department of Transportation, $4.9 million to help purchase 12 electric buses
  • USA Hauling & Recycling, $2.2 million to help convert 30 refuse trucks to run on compressed natural gas
  • New Milford, $2.1 million to replace 18 trucks

DEEP has yet to decide on how the second round of grant funding will be structured, but the agency expects to announce the next round early next year.

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