VW Fallout: $2.0 Billion for ZEV Infrastructure Buildout

[RubberToe]

Electrek has a new story out (more on this at the bottom), which at first I thought was referring to the VW Settlement...

California is poised for the most massive deployment of electric vehicle chargers across the U.S.

Turns out it isn't but there is some new information relative to the Settlement: "none of the funds can be appropriated until after the official hearing of the case on October 18th". Looks like maybe then October 18th will be the "effective date", which earlier was defined to be "The date upon which this Consent Decree is entered by the Court or a motion to enter the Consent Decree is granted, whichever occurs first, as recorded on the Court's docket".

Any legal types present who care to chime in whether the official hearing date (10-18-16) would end up being the day that "the Consent Decree is entered by the Court"?

Presuming it is then:
30 days later (11-17-16) is when the VW Creditable Cost Guidance submission to CARB is due.
60 days later (12-17-16) is when the final Creditable Cost Guidance gets submitted
100 days later (01-26-17) is meeting with CARB to discuss spending plan
120 days later (02-15-17) is when the draft spending plan is submitted to CARB

The article itself refers to a Scientific American article:

California Utility Wants to Install Huge Number of Electric Car Chargers

PG&E submitted a plan for installing 7,500 Level 2 (5,000 currently) and 100 DCFC's across the state over 3 years. The CPUC could decide on Monday whether to vote on it by September 29th. It looks like ratepayers will be on the hook for the $160 million cost. The CPUC has approved EV charging plans for the states other 2 large utilities. SDG&E will place 10 chargers at each of 350 locations, and SCE will develop the infrastructure leading up to 1,500 EV charging stations, but will let other companies build and operate the stations. This is all per SB-350.

The Electrek article points out that this CPUC decision that will come on 9-29-16 precedes the dates for the VW Settlement proposed spending, so VW Settlement funds cannot be used, hence the ratepayers $160 million tab.

RT

 

[RubberToe]

利利を矢をリラ利ラリれ等をりゃをリララリり利利りゃらや利利利利リラわゃりりりらさを利りをーわささややね

I couldn't possibly have said it better myself. Well done Hiroshiy

RT

 

[hiroshiy]

oops

 

[RubberToe]

Interesting story concerning VW, BMW and Chargepoint building two fast charging networks. One on the East coast and one on the West:

BMW and Volkswagen Take on Tesla Motors With a New U.S. Fast-Charging Network -- The Motley Fool

I bring it up here because the VW Settlement funds are discussed, with this specifically stated in the article: "VW agreed to spend $2 billion over 10 years on zero-emissions vehicle infrastructure, access, and awareness in the U.S. VW's contribution to this network is the beginning of that spending."

I don't believe this is the case, since the court decision isn't even final yet, nor have any spending plans been submitted by VW to CARB. I believe there is a specific statement in the settlement something to the effect that prior funds expended cannot count toward the new money to be spent. Not absolutely sure about that though.

Sure would be interesting to see how many of those "stations" have more than a single CCS charger.

RT

 

[nwdiver]

oops

No worries... that's what google is for

'Sasaya Ya ne Wa the Toshiri the Rirarariri Togiri Ryaraya Togiri Togiri lira I Yariririrasa the if Re the lira interest library is like an arrow the Togiri'

..... they do Archery in libraries in Japan?

 

[RubberToe]

Starting to get a little activity now that the proposed settlement hearing is coming up. The linked article states that the final hearing date is October 18th.

VW SCANDAL: EV leaders, politicians sound alarm bells over settlement

"As part of the settlement, Volkswagen must submit a spending plan and specific deployment plans for the $2 billion to U.S. EPA and the California Air Resources Board (ARB) for separate approval. The settlement does not explain whether states, the public or the industry can provide feedback. ARB has little leeway to direct changes and EPA has even less, according to lawyers who have read the settlement."

So I read the settlement, and it seemed pretty clear to me that CARB had the final say concerning VW's plans. Here is the wording from the proposed settlement: "CARB may, in its discretion, approve or disapprove each California ZEV Investment Plan, in whole or in part". Maybe some of the "lawyers who have read the settlement" can chime in here and explain to us exactly how that sentence can be parsed to suggest that "ARB has little leeway to direct changes"?

"ChargePoint urged Judge Breyer to reconsider the terms of the special EV funds in court filings late Tuesday. The $2 billion could allow Volkswagen "literally to drown out all other participants in the ZEV infrastructure market through enormous spending, made at its unfettered discretion, that is untethered to the normal constraints and financial metrics by which all other market participants must operate," the company said in an amicus brief to the court."

This seems an obviously good point. All the EV charging network operators are struggling to sell something thats very inexpensive, and also have to maintain what in a lot of cases is very expensive equipment. It wasn't clear to me upthread who would be paying for the electricity being used by the VW installed equipment. If users didn't have to pay for the power, then Chargepoint is absolutely correct that it would upend their business model. Still puzzling over this part:


Heres the thing though. People are worried that VW is going to try and do something really stupid, or try and circumvent the intent of the settlement agreement. But thats why the agreement has an entire section devoted to specifying what "Creditable Costs" are. Its exactly to prevent VW from doing something like putting 1,000 people on the payroll to do nothing but create plans that never get any hardware installed. Could VW still try and "pull a fast one" by trying to do something like that, or the equivalent? Sure they could, its VW after all, but the public relations disaster that would occur would just be another black eye for the company as a follow up to the initial scandal. You would think that now that they have been "caught", that they would start behaving like a good citizen and that their proposed spending plan will show that. Besides, they seem to have seen the light WRT rolling out more EV's, so it would also be in their best interest to get the EVSE deployed so their upcoming fleet of Tesla Killer vehicles will have some place to publicly charge.

I guess we will see once VW submits their proposed plan. If 10-18 is the magic date for the courts blessing, then VW's proposed plan is due to CARB within 30 days. I suppose the court has the ability to change the wording of the agreement, perhaps the judge is doing that? So mark your calendar, November 17th will be the next deadline unless VW already has it ready and submits it earlier. Stalling will buy them time, but the spending is going to happen eventually anyway.

RT

 

[RubberToe]

The judge will issue his final ruling by October 25th, delayed by a week. The judicial clocks must also be running on Elon TIme.

Judge Says He's Inclined to Back VW Settlement

RT

 

[Jeff N]

The judge will issue his final ruling by October 25th, delayed by a week. The judicial clocks must also be running on Elon TIme.

Judge Says He's Inclined to Back VW Settlement

RT

This is completely normal. It would be rare for a judge to instantly rule from the bench in a huge and complex case like this. Actually, as the judge noted in his courtroom remarks, this was a remarkably quick resolution considering that VW's actions only became a legal issue late last year.

 

[Jeff N]

My take on the impact of the settlement:

VW Settlement May Supercharge non-Tesla DC Rollout in US - HybridCars.com

 

[Jeff N]

I suppose the court has the ability to change the wording of the agreement,

As far as I can tell he cannot do that. He can reject it and explain why and then the parties can negotiate some more. However, I think he pretty clearly communicated in the courtroom that he was going to perhaps scribble some comments but approve it as is. He suggested in court that the lawyers start filing their billing award requests for his reviews, assuming he approves the decree (wink).

 

[RubberToe]

ARB news release concerning the judges ruling. Nothing here we already didn't know. No mention of the next scheduled dates in the process:

News Release: 2016-10-25 Federal court approves $14.7 billion settlement in VW cheating case

So VW plan due to CARB by 11-24. Will be interesting to see whether that gets released to the public as soon as they get it or not. I did read in one of the numerous news articles that CARB was going to give the public and legislators an opportunity to comment on the plan once received. (lost link).

RT

 

[Jeff N]

So VW plan due to CARB by 11-24. Will be interesting to see whether that gets released to the public as soon as they get it or not. I did read in one of the numerous news articles that CARB was going to give the public and legislators an opportunity to comment on the plan once received.

I think we won't get to see the initial draft for the charging installation until late winter.

Here is the schedule as I understand it based on the description between pages 152-166 of the final proposed settlement:

Within 15 days (Nov. 9), VW submits a draft plan for seeking guidance from various non-federal government agencies on the national ZEV plan.

Within 15 days after the Effective Date, Settling Defendants shall submit to EPA for review and approval in accordance with Section V (Approval of Submissions and EPA/CARB Decisions) of the Consent Decree a detailed plan that addresses how Settling Defendants will solicit input from interested States, municipal governments, federally-recognized Indian tribes (“Tribes”), and federal agencies relevant to Settling Defendants’ development of each 30-month phase of the National ZEV Investment Plan (the “National ZEV Outreach Plan”). The National ZEV Outreach Plan shall include a description of how Settling Defendants will provide information sufficient to allow States, municipal governments, Tribes, and federal agencies to offer meaningful input on the development of the National ZEV Investment Plan, or an update thereto, including the identification of opportunities within States, municipal governments, Tribes, and federal agencies to make National ZEV Investments where most needed. Although this Consent Decree does not impose upon Settling Defendants any obligation to act upon or respond to any suggestions received, Settling Defendants shall provide a reasonable opportunity for suggestions on the development of the National ZEV Investment Plan.

Within 30 days (Nov. 24), VW submits a draft accounting guidance document.

Within 30 Days after the Effective Date, Settling Defendants shall submit to EPA for review and approval in accordance with Section V (Approval of Submissions and EPA/CARB Decisions) of the Consent Decree a proposed National Creditable Cost Guidance developed in accordance with the requirements set forth in Appendix C-1. EPA and the Settling Defendants shall meet and confer as soon as practicable after that submission to discuss the proposed National Creditable Cost Guidance. The final National Creditable Cost Guidance shall be developed by the Settling Defendants in accordance with the requirements set forth in Appendix C-1, taking into account feedback received from EPA during the meet-and-confer session. Unless otherwise agreed in writing with EPA, Settling Defendants shall submit the final National Creditable Cost Guidance within 60 days after the Effective Date.

Within 120 days (Feb. 22) or 30 days after the end of the outreach program (whichever is later), VW submits a draft investment plan. This is what we all want to see.

The California ZEV Initiative does not have the outreach aspect so the deadline is a simple 120 days.

Within 120 Days after the Effective Date or 30 Days after the end of the comment acceptance period under the National ZEV Outreach Plan in Paragraph 2.3., whichever occurs later, Settling Defendants shall submit a Draft National ZEV Investment Plan to EPA that describes proposed National ZEV Investments that will be implemented for at least the next 30 months. Settling Defendants shall provide an Executive Summary of the Draft National ZEV Investment Plan that does not contain confidential business information (“CBI”), that could be made public upon request, and that would include all key elements of the Draft National ZEV Investment Plan, as well as a general summary of comments received and how the Settling Defendants considered such
comments. EPA and the Settling Defendants shall meet and confer as soon as practical after the submission in order to discuss the Draft National ZEV Investment Plan. The purpose of the meet and confer is for EPA to provide Settling Defendants with preliminary views on the Draft National ZEV Investment Plan in advance of Settling Defendants’ submission of the National ZEV Investment Plan.

Within 30 days after meeting with EPA/CARB to get feedback, VW submits their final investment plan for approval.

Within 30 Days after the meet and confer on a Draft National ZEV Investment Plan, Settling Defendants shall submit a National ZEV Investment Plan to EPA for EPA’s review and approval as consistent with the requirements of this Appendix C in accordance with Section V (Approval of Submissions and EPA/CARB Decisions) of the Consent Decree. To the extent that the Plan contains any CBI, Settling Defendants shall provide a version of it that contains all the key elements and that can be posted on a website established by the Settling Defendants in accordance with Paragraph 32 of the Consent Decree. Following EPA’s approval, Settling Defendants shall publish a link to the National ZEV Investment Plan on the website specified above.

Final investment plans could be submitted as late as April 2017. Plans are approved. Work begins.

Status reports are filed annually every April 30 and a public version stripped of sensitive proprietary information is released to the public.

 

[mspohr]

Here's the VW Settlement site with more information:
https://www.vwcourtsettlement.com/en/

 

[Pollux]

@RT, thank you SO MUCH for your yeoman work on reviewing all the documents and statements, and boiling it down for the rest of us.

Alan

 

[RubberToe]

CARB has a new page up today that will document all VW settlement related information:



Page can be found here:
Volkswagen Settlement - California ZEV Investments

 

[Jeff N]

As part of CARB's announcement for the workshop, they acknowledged that VW has ultimate control over what they choose to spend on just as in the non-CA part of the settlement that is overseen by the EPA. Hopefully this will mean less or no near-term spending on fuel cell stations:


https://www.arb.ca.gov/msprog/vw_info/vsi/vw-zevinvest/meetings/120216_wkshp.pdf

1. While ARB is developing initial guiding principles, some of which are outlined in the four areas of qualified expenditures above, the Consent Decree stipulates that VW has final say over its proposal for spending Appendix C funding, as long as it complies with the terms of the Consent Decree.

 

[RubberToe]

Jeff,
You mentioned this previously too: "they acknowledged that VW has ultimate control over what they choose to spend on". It isn't clear to me that is the case. Here is what the page that you linked to says: "the Consent Decree stipulates that VW has final say over its proposal for spending Appendix C funding".

I think the key part is the "over its proposal". Per the consent decree, they are preparing the proposal. So they have final say over what goes into the proposal. But the consent decree also describes what happens once VW submits the proposal. I posted this earlier up thread, but here it is again:

[URL=http://s882.photobucket.com/user/RubberToe420/media/tmcpic8_zps8mwpfv41.jpg.html][/URL]

While this is some pretty heavy legalese, it seems pretty clear that CARB has the final say over what the money eventually gets spent on.

Are you not reading it that way?

RT

 

[BluestarE3]

As part of CARB's announcement for the workshop, they acknowledged that VW has ultimate control over what they choose to spend on just as in the non-CA part of the settlement that is overseen by the EPA.

With the new administration coming in, is there any way VW will be able to weasel their way out of the non-CARB portion of the settlement if the EPA won't hold their feet to the fire? Could the money be spent on something other than building out EV charging stations? Could VW lobby to have the implementation delayed?

 

[RubberToe]

The "Notice of Public Workshop" link shows that the first plan submittal date is 2-22-17. So it looks like that is indeed 120 days following the 10-25-16 final hearing. Adjusting my dates based on the 10-25-16, we now have the following:

30 days later (11-24-16) is when the VW Creditable Cost Guidance submission to CARB is due.
60 days later (12-24-16) is when the final Creditable Cost Guidance gets submitted
100 days later (02-01-17) is meeting with CARB to discuss spending plan
120 days later (02-22-17) is when the draft spending plan is submitted to CARB

Should be able to see some of this appear on the website. Always good to see dates associated with actions.

RT

 

[Jeff N]

While this is some pretty heavy legalese, it seems pretty clear that CARB has the final say over what the money eventually gets spent on.

It's as clear as mud. I'll try to clarify it.