FRANKFORT, Ky. — How to spend the $20.4 million from the Volkswagen Settlement Fund was the topic of committee today.
In June 2016, Volkswagen settled with the federal government for violating emissions laws in hundreds of thousands of its cars that were labeled as low emissions. The settlement included billions to buy back the vehicles and $3 billion for the Environmental Mitigation Trust, to be distributed by every state.
The House Budget Review Subcommittee on Economic Development, Public Protection, Tourism, and Energy heard from the Kentucky Energy and Environment Cabinet on their plan for the funds. A plan must be submitted to the federal government by October 1, 2027. Kentucky is currently the only state that has not submitted a plan to be approved.
The funds must be used to help promote clean air and air quality in the areas it is being used for.
The cabinet says they plan to use 75% of the funds to replace 150 school buses, this would be one school bus in each county with the additional 30 buses going to school districts as needed. About 20% of the funds would go toward replacing and improving public transit buses throughout Kentucky. 5% would go toward administrative costs.
Gov. Andy Beshear, D-Kentucky, included the purchase of the new buses in the budget recommendation.
The cabinet believes this plan is the best way to utilize the funds in the way they were intended to be used.
“We think we’ve put pretty careful thought into this particular version of the plan, it supports the constraints of the plan, still allows each county in the state to benefit from the limited funds available and we think its fair,” Energy and Environment Cabinet Secretary Rebecca Goodman told lawmakers.
Committee Chairman Rep. Lynn Bechler, R-Marion, wanted to make sure the proposal would be approved under the terms of the agreement since some districts were not in areas of non-attainment, meaning the air quality in the region was acceptable by environmental standards, Goodman assured Bechler she believes it falls in line with the standards set forth since it will be improving air by moving toward cleaner school buses.
Rep. David Hale, R-Wellington, said new school buses in his community would have a major impact.
“A new school bus for Boone County, or Fayette County or Jefferson County or Warren County may not be that big of a deal, but a new bus for my three districts would be a big deal,” he said.
However, not everyone is on the board with the plan. Greater Louisville Inc and Northern Kentucky Chamber of Commerce would like the funds to be distributed to the areas who had a greater number of Volkswagen’s registered and lower air quality.
Greater Louisville Inc requested the funds be used to help them fulfill a federal grant to replace buses for the Transit Authority of River City (TARC).
“By investing in the metro regions where it can have the greatest impact and go furtherest in fulfilling the key purposes of the settlement will result in significant air quality gains and healthier communities both of which will contribute to a stronger economy here in Kentucky,” said Iris Wilbur Glick, VP, Governmental Affairs and Public Policy for GLI.
Northern Kentucky Chamber of Commerce told lawmakers they believe the funds should be concentrated in the areas where counties are non-attainable areas. Kirstin Baldwin, VP of Public Affairs and Communications for Northern Kentucky Chamber of Commerce told lawmakers superintendents in here area were also confused by the promise of a new school bus and have no desire to go through the hoops necessary to get one.