ADOMANI Sees $2.9 Billion in Settlement Funds, from Volkswagen Environmental Mitigation Trust, As Unprecedented Product Funding Opportunity in its Goal to "Help Yellow Go Green!"(TM)
NEWPORT BEACH, CA / ACCESSWIRE / August 17, 2017 /ADOMANI, Inc. (NASDAQ: ADOM), a provider of advanced zero-emission and hybrid vehicle drivetrain solutions and purpose-built electric vehicles, has announced its coordinated pursuit of the $2.9 billion Volkswagen ("VW") Settlement to help fund electric school bus transitions. The company sees this as a major funding resource for replacing traditionally-fueled school buses with zero-emission electric school buses on a state-by-state basis. The targeted replacement of traditionally fueled school buses is a theme that has been echoed in several state position letters.
Michigan was one of the first states to publish its draft Beneficiary Mitigation Plan. In March, the state's Department of Environmental Quality issued a Request for Information to solicit input on its draft plan for the $60.3 million the state is slated to receive as part of the settlement. The draft includes categories of eligible projects and fund allocations per project type. Specifically, Michigan plans to designate 72% of the funds for on-road and non-road vehicle replacements, which includes Class 4-8 vehicles with a large portion of the money going towards government owned school and transit buses.
Pennsylvania released its draft Beneficiary Mitigation Plan in May for the $118 million it has been allocated in which it designates a large portion of its funding for on-road fleets, including local freight trucks, school and public transit buses. Similar to Michigan, the current draft plan does not include a fuel-specific priorities.
Most other states have yet to publish draft plans but in some cases they have released their goals and priorities to begin formulating their plans. In April, Washington State released its funding goals, which places a large emphasis on electric vehicles. This focus is in line with their "Results Washington" initiative, which sets a goal of 50,000 electric vehicles on the road by the year 2020.
The current and planned ADOMANI zero-emission and hybrid product line aligns well with the intended target of these mitigation funds, being centered around drivetrains for school buses and other medium and heavy-duty commercial fleet vehicles that are logically a significant source of emissions when operated on traditional combustion fuels.
"Understanding the new electric fleet vehicle experiences of our early adopters will be critical to our success. We have assembled an experienced team of drivetrain engineers, sales professionals with proven success in new product introductions (CNG, Propane, etc.) and after-sale service oriented personnel," said ADOMANI CEO Jim Reynolds. "As a unique and valuable benefit to working with ADOMANI and our OEM partners, we have also built a synergistic network with country-wide reach to proactively assist our customers to identify and access funding and partnership opportunities such as the VW Settlement. In order to enhance our ability to help our customers access the funds, we have contracted with DERA Program expert Joe Annotti at Gladstein, Neandross & Associates and with Marshall Macomber, Principal of ThinkP3, a Washington, DC based consultancy firm. Joe is familiar with DERA tribal grants and leads a team of seven industry experts in monitoring over 500 grant and rebate programs for alternative fuel vehicles. Marshall is our advocate in working with key individuals at Federal, State and Tribal agencies and in creating and implementing Utility Company partnership opportunities."
The ADOMANI team surveys the needs of its commercial fleet customers to understand the operating conditions and route requirements of their vehicles, and then creates efficient, durable and safe drivetrains for them. It also works to build on that relationship to become a trusted advocate, advisor and procurement resource in the hybrid and zero-emission drivetrain and vehicle industry.
VW Environmental Mitigation Trust Allocations ($2,925,000 Total):
In 2016, the Volkswagen Group made an initial settlement with the United States District Court for $14.7 billion in regard to fraudulent emissions testing. Included was a $2.7 billion Environmental Mitigation Trust to fund actions that remediate excess NOx emissions. The Court later called for a further $225 million to be placed in the Trust, giving the Fund a total of over $2.9 billion. The VW settlement focuses on supporting solutions to reduce or eliminate NOx emissions.
ADOMANI, Inc. (NASDAQ: ADOM) is a provider of zero-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. ADOMANI helps fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price instability and local, state and federal environmental regulatory compliance. ADOMANI designs, manufactures and installs advanced zero-emission electric and hybrid drivetrain systems for use in new school buses and medium to heavy-duty commercial fleet vehicles.
Cautionary Statement Regarding Forward Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospectus or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," "outlook," "designed" and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, ADOMANI undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
Tim Gnatek, Blue Practice
Investor Relations Contacts:
Michael K. Menerey, Chief Financial Officer
Telephone: (626) 483-3280
Kevin Kanning, VP Investor Relations
Telephone: (650) 533-7629
SOURCE: ADOMANI, Inc.
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