As required in the first partial settlement, Volkswagen must pay a total of $2.9 billion into an Environmental Mitigation Trust (Trust) to fund defined eligible mitigation actions that will reduce nitrogen oxides emissions. Each beneficiary will receive an allocation based on the number of registered subject vehicles within its boundaries. Iowa's allocation from this settlement totals $20,179,540.80. The second partial settlement requires Volkswagen to contribute an additional $225 million to the Trust. The State of Iowa's portion of this contribution is $1,022,196.90, which brings Iowa's total Trust allocation to $21,201,737.70.
On March 15, 2017, Wilmington Trust, N.A. was appointed by the court to serve as the trustee. The Trust became effective on Oct. 2, 2017. Potential government beneficiaries must elect to become a beneficiary no later than 60 days after the effective date (Dec. 1, 2017). Those that are eligible include all 50 states, Puerto Rico, the District of Columbia, and Native American tribes. Iowa submitted the completed Appendix D-3, Certification for Beneficiary Status, on November 21, 2017, with Governor Reynolds designating the Iowa Department of Transportation as the lead agency to manage the settlement funds. The Notice of Beneficiary Designation was filed with the court on January 29, 2018, naming Iowa as an approved beneficiary.
The State of Iowa will have a right to request Eligible Mitigation Action funds up to $21,201,737.70, with no more than one-third of the allocation being requested during the first year after the initial deposit, or two-thirds of the allocation during the first two years after the initial deposit. A Beneficiary Mitigation Plan must be submitted and made publicly available by the beneficiary no later than 30 days prior to submitting its first funding request. View the Beneficiary Mitigation Plan requirements and eligible projects.
| Event | Time Constraints | Date |
|---|---|---|
| Trustee selected | N/A | March 15, 2017 |
| Final version of trust approved (REVISED) | Trust effective date (TED) | May. 19, 2020 |
| State elects to become beneficiary | Within 60 days after TED | Nov. 21, 2017 |
| Beneficiary designation approved by trustee | Within 120 days after TED | Jan. 29, 2018 |
| Submit Beneficiary Mitigation Plan | No later than 30 days prior to first funding request | Aug. 8, 2018 |
| Acceptance of applications for Trust funds | After Beneficiary Mitigation Plan submittal | Fall 2018 |
| Initial award of Trust funds | Within 60 days after trustee receives funding request. | Winter 2018 |
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