NTAA: Volkswagen Settlement

Volkswagen Settlement Work Group

The NTAA VW Settlement Tribal Work Group was formed to address the historic settlement that will provide $55 million to Tribes in the near future and ensure fair access to all Tribes as the settlement moves forward. This page includes information and resources for Tribes to help them understand and access this historic settlement.

September 1, 2018 is the next funding cycle deadline for Tribes to submit funding requests

As a reminder, Tribes and states each have their own separate trust each managed separately by the trustee, Wilmington Trust, N.A. The trustee will be posting a website for Tribes to access and submit forms necessary to access funds. Stand by for more information!

The NTAA VW Settlement Tribal Work Group hosts monthly calls for Tribes on the 2nd Thursday of each month. Check NTAA’s calendar or NTAA’s Weekly Update for information on the next call.

Click HERE to view a fact sheet for the VW Settlement Work Group

Click here to view a flier on the NTAA VW Settlement Work Group
Feel free to contact:

Andy BesslerAndy Bessler, NTAA Project Director

Updates on the VW Settlement:

VW Settlement News - As a response to the March 2, 2018 Court Order from Judge Charles R. Breyer, the U.S. Department of Justice (DOJ) issued two letters to Tribal Leaders regarding the Court Order’s requirement to “meet and confer” with Tribal Beneficiaries and potential Tribal Beneficiaries.
     The first letter dated March 16, 2018 details four possible approaches to allocation for an oversubscribed funding cycle. A call was held on March 21st with Tribes. Comments are due by March 28, 2018.
     The second letter dated March 27, 2018 provides several conceptual approaches to allocation for over subscribed funding cycle that were raised by Beneficiaries during the March 21st call.
     The Department of Justice accepted written comments until April 3, 2018.

VW Settlement News - On March 2, 2018 United State District Judge Charles R. Breyer ordered a 60 day stay for certain Trustee obligations under the Environmental Mitigation Trust Agreement for Indian tribe Beneficiaries. In compliance with the Order of the Court, the Trustee will not be publishing any notice, with respect to the first funding cycle on the Indian Tribe Trust's public-facing website at this time.
Instead, the U.S. Department of Justice and the Environmental Protection Agency, in consultation with the Trustee, will be establishing a schedule for the process described in the Order. The Trustee will share the details of that schedule and process as soon as they are available. Click here to read the Court Order.

On October 2, 2017, the VW Settlement Trust Effective Date (TED) was established. The first round of funding closed on January 2, 2018 but Tribes can apply for the second round of funding that closes on September 1, 2018. NTAA has developed a Fact Sheet and a Beneficiary Claim Checklist to help guide Tribes in the application process.

9/19/17 NTAA received word that Honorable Judge Charles Breyer signed his approval on the $55 million settlement for Tribes to help fund and implement environmental mitigation projects in the coming decade. With Judge Breyer's approval the morning of September 19, 2017, the VW Settlement for Tribes moves to all the settlement parties for signatures. Once the attached agreement has all the signatures and is filed with the court, we will have a Trust Effective Date! Thanks to all the NTAA VW Settlement Work Group members and others who have contributed to finalizing this historic settlement! You can view the Judge’s order here.

9/15/17: The NTAA Executive Committee submitted a letter to the U.S. DOJ and EPA with a request for a legal opinion on a tax issue with the VW Settlement related to the separation of the Tribal and State trusts. NTAA again recorded the EC’s request for reconsideration of the funding match requirement for the VW Settlement’s DERA option’s for Tribes. You can view the letter here.

9/6/17: The final VW Settlement Trust Agreement was made public and submitted to Federal District Court Judge Breyer for approval. This will set into motion the VW Settlement for Tribes. If and when Judge Breyer approves the settlement, his approval will set the Trust Effective Date (TED). The TED starts a 90-day clock for Tribes to submit their Beneficiary Claims and Environmental Mitigation Plans for funding to the trustee. The $55 million settlement will be available to Tribes for the next 10 years. You can find the full court motion, trust agreement and template forms Tribes must fill out to gain access to the Settlement by clicking here

The final VW Settlement trust agreement includes modifications from the original settlement. The modifications include:

Once Judge Breyer approves the trust agreement, a 90-day window opens for Tribes to submit funding requests to the trustee. After that, window closes, Tribes may submit plans on September 1st of each year for the following 9 years.

As requested by Tribes during consultation and negotiations, the Trustee has agreed to establish both a Technical Assistance Provider (TAP) to assist Tribes in preparing funding requests and a Tribal Advisory Committee (TAC), and has selected the Institute for Tribal Environmental Professionals (ITEP) as the TAP and as the coordinator of the TAC. The TAP will be funded with 5% of Tribal Allocation Subaccount, and an $30,000 portion of the Tribal Administration Account will pay for the TAC costs.

Modifications to the Trust Agreement have been made and there will now be two Trusts: one for States/Puerto Rico/District of Columbia and one for Indian Tribes.

Appendix D has been modified to extend the application period from 6 years to 10 years. If the fund is oversubscribed in a given year, funds will be allocated according to census information.

On June 28, 2016, the United States lodged with the court a settlement with automaker Volkswagen to resolve allegations that Volkswagen violated the Clean Air Act (“CAA”) by the sale 2.0 and 3.0 liter diesel engines equipped with “defeat devices” (“CAA 2.0 Liter Partial Settlement”) meant to falsify air emission tests. The major excess pollutant at issue in this case is oxides of nitrogen (NOx), and is a serious public health concern.