US ports could benefit from Volkswagen’s (VW) settlement with the US federal government and the California Air Resources Board (CARB) under which the company is obliged to pay billions to mitigate pollution and invest in zero-emission vehicle technology, according to the American Association of Port Authorities (AAPA).
The agreement relates to the sale of VW cars with defective air emissions equipment.
Included in the consent decree agreement, the German automaker will pay USD 2.7 billion to mitigate air emissions and USD 2 billion to invest in green vehicle technology in areas where its defective cars are in operation.
The mitigation part of the agreement is to pay for reducing nitrogen oxides (NOx) emissions. It states that port projects, such as those related to port drayage trucks, rail freight switchers, ferries/tugs, ocean-going vessels using shore power and Federal Diesel Emission Reduction Act (DERA) projects, are eligible for funding.
“This funding could help U.S. ports reduce NOx emissions in and around their facilities,” AAPA President and CEO Kurt Nagle said.
Furthermore, the green technology part of the agreement is to promote zero-emission vehicles, including on-road heavy duty vehicles such as those that haul goods to and from America’s ports.
Including the abovementioned sum, VW will have to spend up to USD 14.7 billion to settle allegations on cheating emission tests and deceiving customers.