The California Air Resources Board (CARB) has agreed to a final settlement with Volkswagen in which California will receive $153.8 million on top of the $533 million already paid and the $800 million paid into the California Zero Emissions Vehicle program.
The agreement is pending court approval. 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.
