California to Receive $153 Million in Final VW Settlement

The California Air Resources Board (CARB) has 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 defeat devices from 2009 to 2016 on 2- and 3-liter diesel passenger cars. VW has already paid $533 million to California, of which $422 million will flow to the state through a mitigation trust.

The latest 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.

“This payment to the State of California closes another chapter in the so-called ‘dieselgate’ case against Volkswagen, but it is not the end of the story,” said Mary Nichols, chair of CARB. “There are still consumers waiting to find out the future of their cars. CARB is working with U.S. EPA to determine if the remaining vehicles can be modified.”

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 U.S. and California laws and regulations.

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