School buses first priority in Michigan Volkswagen settlement plan

From Energy News Network, reporter Andy Balaskovitz. Full story here.


Michigan’s first priority in distributing settlement funds from the 2015 Volkswagen emissions scandal is to replace aging, polluting diesel school buses.

State officials released the “Volkswagen Settlement Beneficiary Mitigation Plan” this week, which will distribute $64.8 million over the next nine years to reduce air pollution from the transportation sector.

The spending plan, which takes place in four phases, targets the replacement of diesel vehicles across a variety of sectors, including local freight vehicles, Great Lakes ferries and airport ground support equipment. The plan also distributes $9.7 million electric vehicle charging stations.

The first phase directs nearly $13 million toward school buses, with up to $3 million specifically for electric buses and charging stations. While school districts have options for replacing them — including with newer diesel models — the state is incentivizing electric and alternative-fuel models by reimbursing more of the upfront costs. The plan will cover up to 70 percent of the cost of a new electric bus and charging station under contract with a public school district compared to 25 percent of the cost of a new diesel bus. Buses powered by propane or compressed natural gas are also eligible for funding.