About the Settlement
Volkswagen intentionally developed and installed computer programs (“defeat devices”) into their diesel cars, which allowed the vehicles to cheat federal emissions testing. As a result, roughly 500,000 cars polluted up to 35 times more nitrogen oxides (NOx) than allowed by law between 2009 and 2016.
In October 2016, the federal court finalized a lawsuit settlement agreement between government agencies and Volkswagen for some of their violations of emission standards. VW agreed to pay $14.7 billion in settlement activities to lessen the harm caused by these vehicles.
The settlement outlines four actions:
- Environmental Mitigation Trust Fund
- Zero Emission Vehicle (ZEV) Investment Commitment
- Buyback or Lease Termination
- Emissions Modification
Environmental Mitigation Trust Fund
VW must provide $2.7 billion to states and territories to fund environmental mitigation projects that reduce NOx pollution in areas where the “cheating” cars operate. Funds are distributed based on the proportion of cheating vehicles sold in each state. Washington State’s allotment is roughly $103.4 million – the sixth highest in the nation.
A second settlement regarding 3.0 liter diesel vehicles, announced in December 2016, will add another $225 million to the NOx mitigation fund. Washington State’s allocation from this settlement is expected to be approximately $8.7 million.
The mitigation funds can be used on a range of projects that reduce emissions, including:
- Airport ground support equipment
- Forklifts and port cargo-handling equipment
- Freight switcher locomotives
- Light-duty vehicles (by providing electric vehicle charging equipment)
- Local freight trucks and port drayage trucks
- Ocean-going vessels (by providing shore power at the dock)
- School buses, shuttle buses, transit buses
The VW mitigation fund represents a significant opportunity to reduce pollution in Washington while striving to mitigate the harms caused by Volkswagen’s actions.
$2 Billion Zero-Emission Vehicle (ZEV) Investment Commitment
Volkswagen will invest $800 million in California, and $1.2 billion in the rest of the country for projects that bolster the use, availability and awareness of zero-emission vehicle technology.
The main categories for investment include:
- Electric vehicle charging infrastructure
- Increasing awareness and fostering education
- Launching a Green City Initiative
Volkswagen is currently seeking proposals for its national zero-emission vehicle investment program. To learn more or submit a proposal, visit their website.
Buyback or Lease Termination
Under the settlement, Volkswagen must compensate diesel vehicle owners by either buying back the car or paying for an early lease termination. If you own or lease a Volkswagen diesel vehicle, go to the company’s website to check your eligibility in this program.
Volkswagen vehicle owners also have the option to ask the company to modify their car (instead of a buyback payment). This allows owners to keep their car once the vehicle’s emissions system is corrected.