Final Plan and Funding Opportunity
Beneficiary Mitigation Plan: IL Beneficiary Mitigation Plan. Illinois submitted its final BMP to the Trustee on August 28, 2018. The Plan includes the following funding allocations:
- Public Transit (includes buses and rail) 30% or $32.6 million
- School Buses – All-Electric 10% or $10.8 million
- School Buses – Other Fuels 10% or $10.8 million
- Class 4-8 On-Road 10% or $10.8 million
- Non-Road (freight switchers, ferries/tugs) 28% or $30.4 million
- EV Charging 10% or $10.8 million
- Administrative 2%
Priority Areas: In the BMP, Illinois EPA has established three priority areas and anticipates funding projects in all three priority areas. The priority areas are established to realize emission reductions in the areas where the vehicles were located, where the greatest number of mobile source emissions are located, and where the largest concentration of population potentially disproportionately impacted by mobile source emissions is located. Priority Area 1: The Chicago metropolitan non-attainment area. Priority Area 2: Metro-East St. Louis non-attainment area. Priority Area 3: Seven counties, each with 1% or more of the total affected VW vehicles (Champaign, DeKalb, LaSalle, McLean, Peoria, Sangamon and Winnebago Counties).
Funding Solicitations/Cost Share. Not all categories will be funded in all rounds; a Notice of Funding Opportunity will be issued for each funding round identifying eligible projects for that round of funding. Illinois requires a cost share of at least 50 percent, or a higher cost share where specified by the Trust Agreement or DERA. For government applicants, Illinois requires a cost-share of at least 25 percent, or a higher cost share where specified by DERA. Federal agencies will be treated as non-government applicants.
Illinois Proposes Mitigation Plan Changes to Only Fund Electric Projects – Comment Opportunity – Deadline June 21, 2021: The Environmental Protection Agency has prepared a draft revised BMP which lays out goals, allocations, and benefits. The Agency is soliciting public input on the draft revised BMP between April 29, 2021 and June 21, 2021. Public input should be provided in writing and submitted to the Agency electronically at EPA.VWSettlement@illinois.gov. For this revised BMP, the types of EMAs that Illinois will consider funding are: 1) Class 4-8 new, all-electric school bus replacement projects; 2) all-electric public transportation projects, including Class 4-8 new, all-electric transit bus replacements and passenger/commuter line haul locomotive projects; and 3) light duty ZEV supply equipment projects. Illinois will also fund administrative expenditures of the Agency associated with implementing the EMAs as allowed under the Trust Agreement. Illinois expects to request up to 38 percent of the Volkswagen Trust funds for new, all electric school bus replacement projects, up to 45 percent for all-electric public transportation projects and up to 15 percent for light duty ZEV supply equipment projects.
Funding Opportunity – Electric School Buses – Deadline August 9, 2021: Consistent with the changes proposed above, this funding opportunity is only open to electric school buses. Driving a Cleaner Illinois - Round 3 Notices of Funding Opportunity (NOFO) are now available. The Illinois EPA is making Volkswagen funding available to replace old, diesel school buses with new all-electric school buses in the Chicago and Metro-East non-attainment areas. The application periods close August 9, 2021. You may find the NOFOs HERE. The funding available is $6.5 million for Chicago and $2.5 million for Metro-East.
HB109 appropriates $20 million from the Environmental Mitigation Fund to the IL EPA to administer and fund projects under the VW Settlement. Status: Introduced 1/11/2017 by Reps. Harris and Burke.
HB3342 establishes the VW Environmental Mitigation Settlement Fund and directs that funds received from the VW Trust are to be deposited into the Fund for use by the IL EPA subject to appropriations by the legislature. Status: passed both Houses as of May 31, 2018; introduced by Rep. Turner.
SJR77 requires the IL EPA to issue a report each year on funding efforts under the VW Settlement. The plan is to be issued by April 15 and the EPA is to hold at least one hearing to discuss the report and receive public comment. Status: introduced 5/29/2018 by Sen. Castro.