Gov. Dannel P. Malloy’s attempt to close a nearly $390 million budget hole in the current fiscal year won’t affect plans to use funds from a Volkswagen legal settlement for air-pollution mitigation projects, according to the Department of Energy and Environmental Protection.
Among the deficit measures proposed by Malloy this week is the transfer to the general fund of $14.1 million from a settlement with VW over its emissions cheating scandal.
However, that money – which was received last year – was already intended for the general fund, DEEP spokesman Dennis Schain said Wednesday. Malloy’s plan would formalize that.
The state expects to be able to tap an additional $51 million from a VW settlement fund.
DEEP has been planning exactly how to use the funds, with public input, since a VW settlement was announced last year. The state would apply for the funds with detailed proposals for projects that reduce smog-forming nitrogen oxide emissions.
Funding is expected to cover investments in both light-duty and heavy-duty vehicles, from electric vehicle infrastructure to conversions to cleaner fuels, among other measures. More information on the state’s planning can be found here.
The transportation sector was responsible for more than two-thirds of nitrogen oxide emissions in Connecticut in 2014, according to federal data.
