Court Approves VW Settlement with Additional Funds for States

May 17, 2017 – The U.S. District Court for the Northern District of California, San Francisco Division, has approved a settlement among automakers Volkswagen AG, Audi AG, Porsche AG and related entities (VW), the U.S. Department of Justice, EPA and the California Air Resources Board to address the automaker’s sale of 83,000 3.0-liter diesel cars for model years 2009-2016 with illegal emission control defeat devices.  The settlement, proposed on December 20, 2016, is separate from an earlier and larger partial agreement pertaining to 2.0-liter vehicles.  The 3.0-liter vehicle settlement calls for VW to buy back or terminate leases or offer emissions modifications, of they are approved.  As part of the settlement, VW will provide $225 million to fund projects that will mitigate the past and future emissions of nitrogen oxides (NOx) resulting from the affected vehicles.  This is in addition to the $2.7 billion that VW has placed into a mitigation trust fund as a result of the settlement on the 2.0-liter vehicles.  The additional funds will be placed into the same mitigation trust fund as the proceeds from the settlement from the 2.0-liter vehicles, with all states, Puerto Rico, the District of Columbia and tribes eligible for specified amounts (listed in the settlement).  The funds are expected to be used for the same types of projects identified as eligible for funding under the 2.0-liter vehicle settlement.