The company says the money will go to Connecticut, Delaware, Maine, Massachusetts, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington. All 10 states follow California’s clean air standards.
The settlement covers 3-Liter six-cylinder diesel engines and is separate from a $603 million agreement reached last year with 44 states, Washington, D.C., and Puerto Rico that covered 2-litre engines.
Thursday’s settlement is the first time the 10 states have won penalties from an automaker under their own emissions laws, New York Attorney General Eric Schneiderman said Thursday in a statement.
Setting that precedent is important now because President Donald Trump has proposed budget cuts for federal environmental enforcement “which would leave states like New York and California as the first line of defence for the environment,” the statement said.
Volkswagen has admitted to programming its diesel engines to activate pollution controls during government treadmill tests and turning them off for roadway driving.
VW has paid out more than $20 billion to buy back or repair cars and pay criminal and civil fines and legal settlements related to the scandal.