VW Funds Released for Electrifying Ports, Trucks, Buses – Important Step Forward

Today, the DEP announced that NJ will invest $45 million to reduce greenhouse gas emissions from the transportation sector. The $45 million will come from New Jersey’s $72.2 million share of the national Volkswagen settlement.

“We are glad that the $45 million from the Volkswagen settlement funds are going out to electrify our transportation sector in New Jersey. This money will help reduce our greenhouse gas emissions, and it’s long overdue. The biggest source of air pollution and greenhouse gases in our state comes from automobiles, so it is critical to move quickly to electrify our transit system. This money will go toward electric trucks, buses, trains, and boats as well as expanding our EV infrastructure across the state. What is even more important is that they are targeting these funds toward overburdened Environmental Justice communities,” said Jeff Tittel, Director of the New Jersey Sierra Club. “During the current health emergency, it is critical to reduce greenhouse gases because a recent Harvard study linked coronavirus risk with air pollution exposure.”

DEP will use $37.2 million to fund projects converting old diesel trucks, buses, port equipment, marine vessels, and trains to electric power. The additional $7.6 million will be dedicated for electric vehicle charging infrastructure, including fast chargers, throughout the state.

“We believe that this is an important step forward because this money is going to areas where we really need to electrify first. Ports and bus corridors tend to be areas where we have the worst air quality, but this money should have gone out the door sooner. We got the $72.2 million from the Volkswagen settlement over two years ago and we’ve been waiting for it. This will help buy electrify our buses and ports, build charging stations, and create green jobs. New Jersey has some of the worst air quality in the nation. Most of our counties are still receiving ‘F’ designations form the latest report from the American Lung Association, and these are the areas where funding will be targeted,” said Tittel. “Now that the funds have been released, we need to move quickly. We are at the starting gate of the Indianapolis 500 while everyone else is miles ahead of us.”

According to the 2020 State of the Air report by the American Lung Association, New Jersey has nine counties with ‘F’ designations for ground-level ozone. North Jersey is ranked the 12th worst metropolitan area in the U.S. for ozone levels, which is slightly improved from last year.

“We are glad to see the Volkswagen settlement money working together with other funds, but this is just a down payment. NJ Transit needs to change their capital plan to start buying electric buses this year, and all of the buses they buy by 2025 should be electric. They are still investing in gas-guzzling trains and buses that will remain in the fleet for another 20 years. Electric buses and trains are 70% cheaper to operate, and it would help New Jersey reach 100% clean energy by 2050,” said Jeff Tittel. “Electrifying ports and trucks around our ports is critical because these vehicles are driving through Environmental Justice communities with some of the worst air pollution in the country.”

New Jersey’s biggest source of air pollution and GHG is from cars and trucks, but our state has been gridlocked when it comes to moving forward with electric vehicles. They are responsible for over 45% of our greenhouse gasses in New Jersey come vehicles and our state suffers from failing air levels.

“After waiting two years, we are glad to see this money finally going to electrify our transportation sector. These funds will help us reach 100% renewable and zero carbon by 2050. These funds will also help Environmental Justice communities at a time when these communities are suffering even more during the coronavirus pandemic. Half of New Jersey’s greenhouse gases come from mobile sources, but these emissions can be easily cut by implementing EV technology,” said Jeff Tittel, Director of the New Jersey Sierra Club. “This money will help kick electric vehicles into high gear and reduce air pollution and fossil fuels.”

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IMMEDIATE RELEASE

April 22, 2020

Contact: Caryn Shinske          (609) 984-1795

Lawrence Hajna       (609) 292-2994

NEW JERSEY TO INVEST NEARLY $45 MILLION IN ELECTRIFICATION OF TRANSPORTATION SECTOR; FOCUS ON AIR QUALITY IMPROVEMENTS IN ENVIRONMENTAL JUSTICE COMMUNITIES

(20/P18) TRENTON – In celebration of Earth Day and building off last week’s release of the Regional Greenhouse Gas Initiative Strategic Funding Plan, New Jersey will additionally invest nearly $45 million to reduce greenhouse gases produced by the transportation sector, thanks to funds from the national Volkswagen settlement, New Jersey Department of Environmental Protection Commissioner Catherine R. McCabe announced today.

As part of the Murphy Administration’s prioritization of initiatives that reduce greenhouse gas emissions and associated health impacts in communities disproportionally impacted by pollution, the DEP will fund approximately $37.2 million worth of projects converting old diesel trucks, buses, port equipment, marine vessels, and trains to electric power. In addition, the settlement will dedicate an additional $7.6 million for electric vehicle charging infrastructure, including fast chargers, throughout the state.

“Together with the RGGI Strategic Funding Plan, this is a historic investment in New Jersey’s communities and environment,” Commissioner McCabe said. “New Jersey’s transportation sector is a major source of both greenhouse gases and pollutants that threaten the health of our residents. This injection of millions of dollars will take New Jersey further toward Governor Murphy’s goal of reaching 100 percent clean energy by 2050, grow the clean energy economy and protect our residents against climate threats.”

The project solicitation released today is available at www.state.nj.us/dep/vw.  Applications are due by June 22, 2020.

The funds invested in electrification upgrades represent the remaining funds from the state’s $72.2 million share of the national Volkswagen settlement. The settlement resulted from federal actions against Volkswagen for installing devices that allowed vehicles it manufactured to emit pollutants without being detected by emissions-testing programs across the nation. Last year, the DEP awarded $24 million in grants to electrify garbage trucks, school buses, NJ TRANSIT buses, and port and airport equipment.

Today’s solicitation marks another milestone in New Jersey’s continued work to electrify the transportation sector, achieve clean energy goals and reduce environmental burdens on New Jersey’s most vulnerable communities including:

*       RGGI Strategic Funding Plan. Last week, the DEP, New Jersey Board of Public Utilities and New Jersey Economic Development Authority released a formal plan for investing the state’s proceeds from RGGI auctions, expected to be about $80 million each year. The Strategic Funding Plan calls for 75 percent of RGGI auction proceeds over the next three years to be used towards projects that spur clean and equitable transportation by accelerating the transition to electric transportation throughout the state, with a heavy focus on projects that help environmental justice communities.

*       NJ Protecting Against Climate Threats. A targeted regulatory reform effort that will modernize environmental laws and regulations to help government, businesses and residents effectively respond to current climate threats and reduce future climate damages.

*       Legislation to boost electric vehicle use. Signed by Governor Murphy on Jan. 17, 2020, the landmark legislation set aggressive goals for New Jersey electric vehicle sales and public charging stations, requiring the establishment of rebates for electric vehicle purchases, and directing the state to electrify its fleet.

*       Partnership to Plug-In. On June 3, 2019, the DEP joined the New Jersey Economic Development Authority and the New Jersey Board of Public Utilities in a Partnership to Plug-In Memorandum of Understanding, which helped dovetail each agency’s efforts to electrify the transportation sector. Further, the recently signed comprehensive electric vehicle law directed the DEP to develop goals to decarbonize the medium- and heavy-duty trucking sector. These initiatives, combined with Volkswagen mitigation funding, will help us achieve the state’s long-term air quality goals.

*       Pay$ to Plug-In Program. The DEP allocated more than $4 million for electric-vehicle charging station grants under It Pay$ To Plug-In, has conducted numerous electric vehicle ride-and-drive events, and actively participates in the regional Drive Change-Drive Electric campaign to help raise consumer awareness about the benefits of clean vehicles.

*       NESCAUM Statement of Intent. Signed on Dec. 12, 2019, by New Jersey and seven other states, the Statement of Intent builds on the success achieved from a light-duty zero emission vehicle Memorandum of Understanding signed by New Jersey in 2013. Through the new Statement of Intent, participating states commit to developing another multi-state Memorandum of Understanding to accelerate deployment of medium- and heavy-duty zero-emission vehicles through a collaborative process facilitated by the Northeast States for Coordinated Air Use Management (NESCAUM).

In New Jersey, transportation sector emissions account for 71 percent of nitrogen oxide emissions as well as 42 percent of greenhouse-gas emissions. Nitrogen oxides are a major contributor to smog, which forms when pollutants interact with sunlight and hot temperatures during warmer months to create ground-level ozone molecules.

Ozone is beneficial in the upper atmosphere by shielding harmful rays from the sun but is a health hazard at ground level. Ozone irritates tiny lung sacs, known as alveoli, and can increase asthma attacks in asthmatics and make people more vulnerable to lung diseases such as pneumonia and bronchitis. Long-term exposure to ozone particles can cause lung inflammation, chest pain, coughing, wheezing, sneezing, pulmonary congestion and scarring of lung tissue.

For more on the DEP’s transportation efforts, visit www.drivegreen.nj.gov.

For more information about the Volkswagen settlement and the DEP’s Beneficiary Mitigation Plan, visit www.nj.gov/dep/vw/.

Follow the DEP on Twitter @NewJerseyDEP.

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