Submitted By: Tom Duncan
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Presentation By: Tom Duncan
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2025-157 amending the Fiscal Year 2024-25 budget to appropriate Volkswagen Environmental Mitigation Trust funds from the Florida Department of Environmental Protection in the amount of $300,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND: In 2015, the United States Environmental Protection Agency (EPA) issued a notice of violation to Volkswagen AG, alleging that the company had installed defeat devices in approximately 590,000 diesel vehicles sold in the U.S. These devices were designed to cheat emissions tests by reducing nitrogen oxide (NOx) emissions during testing, while allowing the vehicles to emit significantly higher levels during regular operation. This was a violation of the Clean Air Act.
As a result, Volkswagen entered into a series of civil settlements totaling more than $20 billion, one of which established the Volkswagen Environmental Mitigation Trust. The Trust aims to fund projects that mitigate the excess emissions caused by the affected vehicles. Each state received an allocation from the Trust, and the Florida Department of Environmental Protection (FDEP) serves as the lead agency for administering Florida's share of the settlement funds.
Eligible projects under the Trust include replacing or repowering older diesel engines with new, cleaner technologies, including purchasing electric transit buses. The $300,000 grant awarded to the City of Ocala is part of Florida's allocation from the VW Environmental Mitigation Trust. It is intended to support the City's investment in clean transportation and infrastructure.
Project funding and budget details were to be completed by June 30, 2025, under the original agreement with FDEP. Still, the city needed first to secure the Low/No Emissions Gr...
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