Indiana looks for $40 million idea for Volkswagen settlement funds

The money is part of a $2.7 billion settlement reached last year between the U.S. Justice Department, the Volkswagen Corp. and its subsidiaries regarding the company's installation and use of emission testing defeat devices in more than 500,000 vehicles.

The money is intended to offset the excess air pollution emitted by some of the VW vehicles that violated the Clean Air Act.

The governor formed an 11-person committee that will work with Indiana Department of Environmental Management on a mitigation plan and set up a web site, VWTrust@idem.IN.gov, where individuals can provide public comment on what types of projects they believe the state should consider.

The state also is seeking proposals for projects that would reduce nitrous oxide emissions from diesel-powered vehicles and equipment, primarily by replacing and repowering existing diesel vehicles or equipment with cleaner alternatives.

Eligible vehicles include some freight trucks, diesel school and transit buses, diesel switch locomotives, ocean-going vessels and some port cargo hauling equipment.

Special consideration for funding will be given to projects in densely populated areas and those adjacent to rail yards, shipping terminals and distribution centers, according to the mitigation plan.

Kay Nelson, director of environmental affairs with the Northwest Indiana Forum, was named to the mitigation committee along with former Hobart resident and retired Indiana Supreme Court Justice Brent Dickson and Jody Peacock, vice president of Ports of Indiana.

Nelson said the applications with the best merit will score well, adding that the mitigation settlement is a three-year process with one-third of the funds being distributed each year.

She encouraged those considering applying for mitigation funds to pay for a project to go to the IDEM website for information.

"I want everyone to consider all the options as far as how to reduce diesel emissions. I want everyone to think outside of the box," Nelson said.

She said if a project doesn't qualify for the Volkswagen Mitigation funds, it might qualify for other funding.

Tara Wolf, an IDEM spokeswoman, said non-attainment counties, such as Lake and Porter, do not necessarily have an edge in receiving funding.

"The project matters more than the location. More accurately, the overall benefits of the project matter more than where the project is located," Wolf said.

She said IDEM and the committee are looking at any and all proposals that meet the criteria of the consent decree. Each will be judged on its merits and all will be scored with the use of a scoring model.

She said businesses can submit proposals.

Meanwhile, some Volkswagen vehicles that don't meet federal emissions standards continue to be stored at a section of the Gary/Chicago International Airport.

Airport spokesman David Goldenberg said the airport has a 3-year agreement with Merrillville-based CLR Auto Transport to store the vehicles while the company figures out how it can modify the emissions systems so they would comply with federal standards and could be sold.

Goldenberg said he didn't know how many cars are on site, how they will be fixed or when they would be moved.

"The airport doesn't control what happens with the cars," he said.