States Score From VW Settlement.

• Author: Dowd, Emily
• Position: TRENDS

The historic $14.7 billion settlement against Volkswagen for allegations of cheating on emission testing offers every state, tribe, Puerto Rico and the District of Columbia the opportunity to receive a portion of the funds--based on the number of affected vehicles each has--to support a variety of projects that reduce emissions in the transportation sector.

The settlement goes back to 201 5, when the U. S. Environmental Protection Agency and the Federal Trade Commission charged Volkswagen with in stalling illegal software, known as "defeat devices," in its diesel cars and violating the Clean Air Act as a result. The devices turn off a car's emission controls after it has passed its emissions test. As a result of litigation culminating in 2016 and 20 17, the German automaker agreed to spend $14.7 billion in the United States to settle allegations.

The settlement is divided into three parts: $10 billion will be used to buy back or fix customers' diesel vehicles, $2 billion will go toward infrastructure for zero emission vehicles--like charging stations--and activities aimed at increasing public awareness of the vehicles, and the final $2.7 billion will satisfy a requirement that VW in vest in an independently administered environmental mitigation trust to fund projects that reduce diesel emissions. States had to file as "beneficiaries" by December 2017 to be eligible for a portion of the $2.7 billion set aside...