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California to receive additional $153M in final settlement with Volkswagen

20 July 2017

The California Air Resources Board (CARB) filed a consent decree for its final settlement with the Volkswagen Group of America (VW). The company will be required to pay an additional $153.8 million to California over the company’s use of illegal defeat devices in 2009-2016, 2.0 and 3.0 liter diesel passenger cars. Before today, VW had paid $533 million to California, of which $422 million will flow to the state through a mitigation trust. Volkswagen also is making $800 million in ZEV-related investments in the state.

The additional consent decree was negotiated by attorneys and technical experts from CARB and the California Attorney General’s Office, and is subject to court approval. The overall VW settlement is the largest ever for violations of vehicle air quality rules.

The $153.8 million dollars represents penalties for air quality violations and the costs of CARB’s investigation. This Consent Decree is in addition to:

  • More than $422 million dollars VW must pay into a national trust to mitigate environmental harm in California;

  • $800 million dollars in Zero Emission Vehicle (ZEV) related investments that VW must perform in California pursuant to an investment plan approved by CARB;

  • $25 million dollars VW has paid to CARB to support ZEV investment programs, including vehicle replacement programs, for low-income residents;

  • Consumer relief, including restitution and modification or buy back of the affected vehicles;

  • $86 million dollars it has paid to the California Attorney General’s office for civil penalties and costs; and

  • Any additional mitigation payments VW is required to make if it fails to modify or buy back at least 85% of the subject vehicles in California.

The Consent Decree also includes an injunction requiring the company to implement a corporate compliance program, conduct enhanced vehicle testing, and undertake a series of audit and reporting obligations to ensure future compliance with US and California laws and regulations.

July 20, 2017 in Diesel, Emissions, Regulations | Permalink | Comments (0)

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