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CONCURRENT RESOLUTION REGARDING THE

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VOLKSWAGEN SETTLEMENT

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2017 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Timothy D. Hawkes

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Senate Sponsor: Brian E. Shiozawa

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8     LONG TITLE
9     General Description:
10          This concurrent resolution highlights provisions of the Volkswagen Partial Consent
11     Decree and outlines the state of Utah's participation as a beneficiary of Volkswagen
12     Environmental Mitigation Trust funds.
13     Highlighted Provisions:
14          This resolution:
15          ▸     highlights provisions of the Volkswagen Partial Consent Decree; and
16          ▸     outlines the state of Utah's participation as a beneficiary of Volkswagen
17     Environmental Mitigation Trust funds.
18     Special Clauses:
19          None
20     

21     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
22          WHEREAS, as used in this resolution:
23          (1) "Beneficiary" means the state of Utah as the governmental entity, identified in the
24     Volkswagen Partial Consent Decree, that may seek environmental mitigation funds to mitigate
25     excess nitrogen oxides emitted by noncompliant Volkswagen and Audi vehicles, and
26     potentially by Porsche vehicles;
27          (2) "Beneficiary mitigation plan" means a plan prepared by the state of Utah as the

28     beneficiary that describes the beneficiary's goals for using mitigation trust funds, including
29     identifying specific eligible mitigation actions, describing expected emission benefits,
30     estimating the beneficial impacts on air quality in areas that bear a disproportionate share of the
31     air pollution burden, and describing how the beneficiary will seek and consider public input;
32          (3) "Eligible mitigation actions" means any of the specific vehicle replacements or
33     engine repowers identified in the Volkswagen Partial Consent Decree, Appendix D-2;
34          (4) "Mitigation trust" or "Volkswagen Environmental Mitigation Trust" means the trust
35     established under the Volkswagen Partial Consent Decree to hold and disburse environmental
36     mitigation trust funds paid by Volkswagen and potentially Porsche to mitigate the excess
37     nitrogen oxides emitted from noncompliant Volkswagen, Audi, and potentially Porsche
38     vehicles;
39          (5) "Mitigation trustee" or "trustee" means the trustee appointed by the U.S. District
40     Court to administer the mitigation trust in accordance with the Volkswagen Partial Consent
41     Decree; and
42          (6) "Volkswagen Partial Consent Decree" means the partial consent decree settling
43     portions of Re: Volkswagen "Clean Diesel" Marketing, Sales Practices, and Products Liability
44     Litigation, Case No: Multi-District Litigation No. 2672 CRB (JSC), approved October 25,
45     2016;
46          WHEREAS, on October 25, 2016, the U.S. District Court for the District of Northern
47     California approved the Volkswagen Partial Consent Decree between the United States
48     Environmental Protection Agency (EPA), the state of California, and defendants: Volkswagen
49     AG; Audi AG; Volkswagen Group of America, Inc.; and Volkswagen Group of America
50     Chattanooga Operations, LLC (collectively, Volkswagen) to settle a complaint alleging
51     violations of the federal Clean Air Act from the operation of certain noncompliant Volkswagen
52     and Audi 2.0-liter diesel vehicles;
53          WHEREAS, Volkswagen admitted that software in certain 2.0-liter and 3.0-liter diesel
54     Volkswagen, Audi, and Porsche vehicles enables the vehicles' emission control module to
55     operate emission control systems when undergoing emission testing but to render the emission
56     control systems inoperative when not undergoing emission testing, resulting in emissions that
57     exceed EPA-compliant levels for nitrogen oxides (NOx) when the vehicles are driven on the
58     road;

59          WHEREAS, to fully mitigate the total lifetime excess NOx emissions from certain
60     noncompliant 2.0-liter diesel Volkswagen and Audi vehicles, Volkswagen agreed to pay into
61     the Volkswagen Environmental Mitigation Trust to fund eligible mitigation actions within the
62     United States or its territories;
63          WHEREAS, 5,983 noncompliant 2.0-liter and 3.0-liter Volkswagen and Audi diesel
64     vehicles and 1,030 noncompliant 3.0-liter Volkswagen, Audi, and Porsche diesel vehicles are
65     registered in the state of Utah;
66          WHEREAS, seven counties in the state of Utah have been designated "nonattainment"
67     for the federal National Ambient Air Quality Standards for pollutants that are formed by NOx;
68          WHEREAS, the State Implementation Plan imposes certain requirements and
69     restrictions on the public so the air quality may reach attainment for those pollutants in the
70     seven counties;
71          WHEREAS, in accordance with the terms of the Volkswagen Partial Consent Decree,
72     the Governor of the state of Utah may seek a portion of the Volkswagen Environmental
73     Mitigation Trust to fund specific eligible mitigation actions authorized by the U.S. District
74     Court-appointed trustee to mitigate the lifetime excess NOx emissions in the state of Utah from
75     the noncompliant Volkswagen and Audi 2.0-liter diesel vehicles;
76          WHEREAS, it is the intention of the Governor to elect to become a Volkswagen
77     Environmental Mitigation Trust fund beneficiary by timely filing, with the U.S. District Court,
78     the necessary certifications, including certifying that the state will agree to be bound by the
79     terms of the Environmental Trust Agreement, only for purposes of requesting, obtaining, and
80     expending funds from the Volkswagen Environmental Mitigation Trust;
81          WHEREAS, the Governor intends to designate the Utah Department of Environmental
82     Quality to act on behalf of and legally bind the state regarding requests and expenditures from
83     the Volkswagen Environmental Mitigation Trust;
84          WHEREAS, upon the trustee confirming the state of Utah as a beneficiary under the
85     Volkswagen Partial Consent Decree, the Department of Environmental Quality and its Division
86     of Air Quality, on behalf of the state, shall prepare and submit to the trustee the required
87     Beneficiary Mitigation Plan;
88          WHEREAS, following submittal of the state's Beneficiary Mitigation Plan, the
89     Department of Environmental Quality and its Division of Air Quality, on behalf of the state,

90     shall request funds from the trustee for specific eligible mitigation actions;
91          WHEREAS, on or about December 19, 2016, the EPA, the state of California,
92     Volkswagen, and additional defendants: Dr. Ing, h.c. F.; Porsche AG; and Porsche Cars North
93     America, Inc. (collectively, Porsche) agreed to a second partial consent decree to settle a
94     complaint alleging violations of the federal Clean Air Act from the operation of certain
95     noncompliant Volkswagen, Audi, and Porsche 3.0-liter diesel vehicles that are also equipped
96     with software that results in emissions that exceed EPA-compliant levels for NOx when the
97     vehicles are driven on the road;
98          WHEREAS, the settlement of federal Clean Air Act violations for noncompliant
99     Volkswagen, Audi, and Porsche 3.0-liter diesel vehicles in the second partial consent decree
100     will offer funds to the state to mitigate the lifetime excess NOx emissions pursuant to the
101     procedures provided in the Volkswagen Partial Consent Decree regarding 2.0-liter diesel
102     vehicles; and
103          WHEREAS, it is the intention of the Governor to also seek funds to implement actions
104     to mitigate the lifetime excess NOx emissions from noncompliant Volkswagen, Audi, and
105     Porsche 3.0-liter diesel vehicles:
106          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
107     Governor concurring therein, believes that it is beneficial to the public at large and for the air
108     quality of the state to implement eligible mitigation actions funded by the Volkswagen
109     Environmental Mitigation Trust to mitigate the lifetime NOx emissions from noncompliant
110     Volkswagen, Audi, and Porsche 2.0-liter and 3.0-liter diesel vehicles.






Legislative Review Note
Office of Legislative Research and General Counsel