MPCA expands investments in clean transportation with final $14M of Volkswagen settlement

Draft plan continues building out EV network, adds new focus on trains

The Minnesota Pollution Control Agency (MPCA) today rolled out ideas for spending the final phase of Minnesota’s Volkswagen settlement funds to reduce harmful air pollution by helping Minnesotans transition to electric vehicles and cleaner-burning fuel engines. The draft plan, developed with input from around the state, calls for investing the remaining $14 million on projects expected to significantly reduce emissions, especially in communities most vulnerable to the effects of vehicle pollution.

To date, $33 million spent with settlement dollars has expanded the statewide electric vehicle charging network by more than 2,500 miles, adding 103 new charging stations, and enabling more Minnesotans to drive electric vehicles to their destinations. Grants have also helped replace 475 older diesel vehicles and equipment with new versions that run on a variety of fuel types, including those that meet stricter emission standards, propane, and electric alternatives.

The MPCA will spend the third and final phase of funding between 2024 and 2027 through six grant programs across different vehicle and equipment types that continue investments in electric alternatives with some new additions. These include: 

• $7 million to support businesses and communities making the switch to electric vehicles including $2.8 million for heavy-duty electric vehicles like trucks and transit buses, $2.1 million for electric school buses, and $2.1 million for EV charging stations.
• $7 million to help purchase cleaner heavy-duty on-road vehicles, off-road equipment, and school buses using a variety of fuel types including diesel, propane, and CNG. This allows businesses and communities to purchase vehicles that best fit their budget and local needs. 
• $210,000 to focus on locomotive idle-reduction projects. Data show these projects are not only the most cost-effective but also result in the highest emissions reductions of nitrogen oxides (NOx), harmful gases that contribute to the formation of smog and acid rain.

Based on feedback from Minnesotans and spending strategies during previous phases of the settlement, the plan includes continuing the goal to award 60% of grants in urban areas, where many low-income and communities of color reside, and 40% in greater Minnesota. Grant awards will prioritize environmental justice areas.

Minnesota received a total of $47 million from the Volkswagen settlement in 2017. Projects funded have allowed the MPCA to achieve significant emissions reduction goals while making strides in maximizing health benefits, reducing exposure to air pollution, and ensuring Minnesotans across the state benefit from these investments.

The MPCA expects these programs will collectively reduce emissions of NOx by 2,722 to 3,365 tons, fine-particle pollution by 153 to 297 tons, and greenhouse gases by 32,264 to 63,338 tons. These successes contribute to goals outlined in Minnesota’s Climate Action Framework, the statewide plan to address and prepare for climate change.

The MPCA is asking the public to provide feedback about the draft plan to ensure Minnesotans feel it reflects their priorities. The draft plan is open for comment now through January 15, 2024. The public can review the draft plan and submit public comments on the MPCA website.

To learn more about the draft plan, the MPCA will host a virtual meeting on December 21 from 1-2 p.m. More information on the meeting can be found by visiting the event page on the MPCA website. Questions about the plan can be emailed to vwsettlement.pca@state.mn.us.