Request for Comments/Input
In June 2020, the EEC website announced that the 2020 General Assembly (HB352) had approved a spending plan and appropriated funds in fiscal year 2020-2021 to administer under the Volkswagen Settlement beginning July 1, 2020. The Kentucky Energy and Environment Cabinet subsequently revised the Beneficiary Mitigation Plan to reflect the spending authority provided by the legislature and submitted a final plan to National Trustee. The next step is to develop a process for the various categories outlined in the budget.
Beginning July 1, 2020, the spending plan will provide the following funds:
- $8,521,700 shall be used to reimburse local school districts for 50 percent of the purchase cost to replace up to five school buses per district currently in daily use meeting the necessary criteria with a chassis year of 2001 or earlier. If these funds are insufficient to cover 50 percent of the purchase costs of districts that have requested reimbursement by June 1, 2021, the reimbursement shall be pro rata reduced;
- $8,521,700 shall be transferred to the Office of Transportation Delivery to replace public transit buses meeting the necessary criteria. Priority shall be given to maximizing Federal Transit Grants;
- $3,056,700 shall be used for the purchase of light-duty, zero-emission vehicle supply equipment meeting the necessary criteria. Recipients shall provide at least 50 percent of matching funds per project; and
- $278,500 may be used for administrative costs.
If all funds are not expended during fiscal year 2021, those remaining funds will be available for expenditure in the 2021-2022 fiscal year. The Energy and Environment Cabinet will be working on reviewing the budget language and will begin working with various stakeholder groups to develop timelines and plans for implementation.
HB352 (2019) directs $11.7 million be used in FY 20-21 to reimburse local school districts for the purchase cost of two school buses with a chassis year of 2001 or earlier. If funds are insufficient to fully cover the purchase costs of districts that have requested reimbursement by June 1, 2021, the reimbursement shall be pro rata reduced. If there are excess funds, districts may apply for reimbursement for the purchase cost of a third school bus. Also, $8.4 million in FY 20-21 is transferred to the Office of Transportation Delivery to match Federal Transit Grants to replace public transit buses. And $278,600 is to be used for administrative costs. Status: passed House 3/6/20.
HB200 (2018). Appropriations bill sets up account for VW Settlement Funds with $6.8 million for FY 2018-2019, and $13.6 million for FY 2019-2020. Indicates that VW Settlement funds are not to be expended or appropriated without the express authority of the General Assembly." Status: Vetoed by Governor 4/9/18; overridden by both houses 4/13/18 Act 169.