[T]he Legislature will use the “normal budget process” to decide how Vermont spends $18.6 million the state will receive from Volkswagen in a settlement for the automaker’s fraud involving “clean diesel” emissions, state Finance and Management Commissioner Adam Greshin said Friday.
The Agency of Natural Resources will present its plan for spending the money to the House Committee on Energy and Technology, and lawmakers will be free to accept the plan or to change it entirely, just as they’re free to do in the normal budgeting process, Greshin said.
The $18.6 million is Vermont’s share of a $15 billion settlement between U.S. state and federal governments and VW, which was charged in 2015 with giving fraudulent test results to make “clean diesel” engines appear to be burning cleaner than they were. Much of the money in the national settlement is going to buy back vehicles from consumers.
Many lawmakers and environmental advocates say the money should be invested in electric buses and feared the Scott administration would simply buy more “clean diesel” vehicles with the proceeds instead.
Hopes for electric buses took a hit in November, when ANR Deputy Secretary Peter Walke told lawmakers they wouldn’t play any defined role in deciding how the money is spent.
“We’ve obviously had lots of conversations with the Legislature about what they’re interested in, but in terms of a specific role, I don’t see one they play” in the decision, Walke said, when asked whether the Legislature would have a say.
Walke denied any inconsistency between that statement and the administration’s current position, which is that the matter will go through the standard appropriations process.
“It’s been a consistent message,” Walke said.
Greshin, a former lawmaker, said that while it’s out of his hands where the ultimate authority over the money rests, legislators always work with the executive branch to negotiate the best use of state funds.
“Every bill that goes through the Legislature is an agreement between the Legislature and the executive branch,” he said. “We would not expect this to be any different. We intend to work with the Legislature as we do with many other bills to arrive at a plan. In the end hopefully we’ll come to an agreement.
Environmental advocates say they’ll continue to push that Vermont’s share of the money be spent on electric buses.
“The public has made their voice clear,” said Sarah Wolfe, of the Vermont Public Interest Research Group. “This should be used for clean electric transportation, not more fossil fuels. We’ve made that case to the administration and now we will make it to the Legislature.”
The settlement gives states the option to spend the money on new vehicles or upgrades to vehicles that operate either on electricity or on “clean diesel.” Scott has expressed a preference for the latter, saying it represents a more cost-effective use of the money.
Environmentalists have been leery of investing settlement funds from a “clean diesel” fraud lawsuit and spending it on more of the same.
A class-action lawsuit was filed last week against Ford, alleging the automaker had defrauded half a million truck buyers by rigging emissions tests in a fashion similar to that used by VW. Ford representatives have denied the allegation.
