VW Settlement-Background Information

On October 25, 2016, the court approved a partial settlement and consent decree resolving allegations that VW violated the Clean Air Act (CAA) by the sale of approximately 500,000 model year 2009 to 2015 motor vehicles containing 2.0 liter diesel engines equipped with emissions testing defeat devices in the form of computer software designed to cheat on federal emissions tests. Additionally, on December 20, 2016, the court and VW reached an agreement regarding the installation and use of emission testing defeat devices in approximately 80,000 model year 2009 to 2016 motor vehicles containing 3.0 liter diesel engines sold and operated in the U.S. Related consent decrees for VW can be found at: https://www.epa.gov/enforcement/third-partial-and-30l-second-partial-and-20l-partial-and-amended-consent-decree.

To mitigate environmental damages from violating the CAA, the settlement requires VW to invest $2.925 billion in an independently administered environmental trust, which will fund projects to fully mitigate the diesel emissions caused by the offending vehicles. States, tribes, Puerto Rico, and the District of Columbia have been allocated a portion of the trust based on the number of affected vehicles in their jurisdiction. Virginia anticipates receiving $93.6 million from the Trust between 2017 and 2027. The EMT establishes a process to administer the funds, and identifies 10 categories of mitigation actions that will be eligible for funding. For more information about eligible project types, please see:https://www.epa.gov/sites/production/files/2016-10/documents/amended20lpartial-cd.pdf; Appendix D-2 (p. 209-220).

The partial settlement agreements also require VW to buy back or modify the offending 2.0 and 3.0 liter diesel vehicles from consumers, and to spend $2 billion on zero emissions vehicle infrastructure and programs aimed at increasing public awareness of zero emission vehicles. The consumer vehicle "recall" and ZEV infrastructure investment programs established as part of the settlement agreements are separate from the EMT. Information about the consumer vehicle “recall” program is available at https://www.vwcourtsettlement.com. Information on the ZEV infrastructure investment program can be found at: https://www.electrifyamerica.com.

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Virginia Department of
Environmental Quality
P.O. Box 1105
Richmond, VA 23218
(804) 698-4000


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