how long was the settlement process with epa and vw

How many settlements did the EPA have against Volkswagen?

(Washington, D.C.) - Through a series of three partial settlements, the EPA has resolved a civil enforcement case against Volkswagen AG, Audi AG, Dr. Ing. h.c. F. Porsche AG, Volkswagen Group of America, Inc., Volkswagen Group of America Chattanooga Operations, LLC, and Porsche Cars North America, Inc. (collectively “Volkswagen”).

How much will the Volkswagen settlement pay out?

As a part of this settlement, VW will provide $2.7 billion for the 2.0 liter violating vehicles and $225 million for the 3.0 liter violating vehicles to an Environmental Mitigation Trust. Funds from the trust will be used to fully remediate the excess NOx emissions from the illegal vehicles.

What is the Volkswagen diesel emissions scandal settlement?

These settlements resolve allegations that Volkswagen violated the Clean Air Act by the sale of approximately 590,000 model year 2009 to 2016 diesel motor vehicles equipped with “defeat devices" in the form of computer software designed to cheat on federal emissions tests.

When did the EPA approve Volkswagen’s proposed emissions modification?

On January 6, 2017, the EPA and CARB approved Volkswagen’s proposed emissions modification for the following 2.0 liter vehicles: - model year 2015 Volkswagen Beetle, Beetle Convertible, Golf, Golf SportWagen, Jetta and Passat diesel vehicles, and

What did the EPA do to Volkswagen?

These settlements resolve allegations that Volkswagen violated the Clean Air Act (“CAA”) by the sale of approximately 590,000 model year 2009 to 2016 diesel motor vehicles equipped with “defeat devices.” The EPA alleged that these vehicles are equipped with defeat devices in the form of computer software designed to ...

How much did VW pay in fines and settlements?

Volkswagen has since paid well over $20 billion in fines and legal settlements related to its diesel emissions cheating.

How much did the EPA fine VW?

In separate civil resolutions of environmental, customs, and financial claims, VW agreed to pay $1.5 billion which covers EPA's claim for civil penalties against Volkswagen as well as U.S. Customs and Border Protection claims for customs fraud.

How much did VW settle for?

LONDON, May 25 (Reuters) - Volkswagen (VOWG_p.DE) will pay 193 million pounds ($242 million) as part of an out-of-court settlement to around 91,000 British drivers over a diesel emissions scandal that engulfed Europe's largest carmaker in 2015.

Are VW paying compensation?

More than 90,000 people will receive a share of £193million following a court settlement related to the VW emissions scandal. The Volkswagen Group will pay out a share of £193million to around 91,000 drivers in England and Wales following a high-profile lawsuit relating to the 'Dieselgate' scandal.

Who is eligible for VW settlement?

Who is Eligible? You may be able to join the Claim if your car was manufactured by Volkswagen, Audi, SEAT, Skoda or Porsche and: It is a 1.2, 1.6, 2.0, or 3.0 litre diesel vehicle with engine EA189, EA288 or EA897. It was manufactured between 2009 and 2019.

Is it too late to claim against VW?

The statute of limitations is thought to end for the claims with the longest statute of limitations in or around September 2021, six years after the VW defeat device software became publicly known in England and Wales.

Can you still claim for VW emissions 2020?

The Volkswagen Emissions claim is now closed. The VW Group paid a settlement to 91,000 claimants in May 2022. This means you cannot begin a new claim for Volkswagen emissions. If, however, you bought your car using Personal Contract Purchase (PCP) finance, then you may have a claim for Mis-sold PCP compensation.

What happened to VW emissions scandal?

In April 2017, a US federal judge ordered Volkswagen to pay a $2.8 billion criminal fine for "rigging diesel-powered vehicles to cheat on government emissions tests". The "unprecedented" plea deal formalized the punishment which Volkswagen had agreed to.

How much will VW claimants get?

In an official statement this week, the Volkswagen Group has confimed that it will pay £193 million to the 91,000 claimants in an out-of-court settlement.

Can you still claim for VW emissions 2022?

Unfortunately, the Volkswagen Dieselgate claim is now finished and closed for any new claimants. The case was settled by Volkswagen in May 2022. This means you cannot begin your VW emission claim for compensation.

Can you still claim for diesel emissions?

Those who were affected by the scandal could be eligible to make a claim. If you purchased a diesel vehicle between 2007 and 2018, whether purchased new or second hand, you could make a claim. This includes both vehicles purchased outright or via lease. You can also claim even if you no longer own the vehicle.

How much will VW pay for buyback?

VW owners who had their vehicles when the scandal erupted in September 2015 have two options. They are generally eligible for a vehicle buyback ranging in value from $12,500 to $44,000. Or they can get their car fixed to make it legal and receive a payout ranging from about $5,000 to $10,000.

What were the consequences of such violation in Volkswagen?

The E.P.A. can impose civil penalties on an automaker of up to $37,500 for every vehicle for violations of the Clean Air Act. Thus, Volkswagen could face a total penalty of about $18 billion, based on selling nearly 500,000 vehicles with the defeat device.

How did Volkswagen recover from scandal?

Volkswagen eventually admitted that it had designed and installed a defeat device that could detect when the vehicle was being tested and modify its performance levels so that it would meet emissions requirements.

In what ways has Volkswagen pledged to help the global environment in the future?

Environmental compliance We intend to become a carbon neutral company by 2050. By 2025, we plan to reduce our total life cycle Greenhouse Gas Emissions of passenger cars and light duty vehicles by 30% compared to 2015. We actively contribute to the transition towards renewable energies along the entire life cycle.

General Information

The U.S. government and Volkswagen (VW) have resolved allegations that VW violated the Clean Air Act by selling approximately 590,000 vehicles equipped with defeat devices.

States

The States, Puerto Rico, and the District of Columbia may obtain funds as Mitigation Trust Beneficiaries upon application to the Trustee to implement NOx reduction projects as defined in Appendix D-2 , including the DERA Option under the DERA State Grant Program.

Tribes

Federally recognized tribes may obtain trust funds as Beneficiaries upon application to the Trustee to implement NOx reduction projects as defined in Appendix D-2 , including the DERA Option under the competitive DERA Tribal and Insular Area Grant Program.

When did Volkswagen settle the Clean Air Act?

On June 28, 2016, Volkswagen entered into a multi-billion dollar settlement to partially resolve alleged Clean Air Act violations based on the sale of 2.0 liter diesel engines that were equipped with software designed to cheat on federal emissions tests, known as “defeat devices.”.

When did VW get the emissions modification?

On July 27, 2017, EPA and the California Air Resources Board approved an emissions modification proposed by VW for model year 2009 – 2014 diesel Jetta, Golf, Beetle, and Audi A3 diesel vehicles. Review the approval letter.

What year did Volkswagen install software?

The notice alleges that Volkswagen installed software in its model year 2009-2015 2.0 liter diesel cars that circumvents EPA emissions standards. These vehicles emit up to 40 times more pollution than emissions standards allow.

How much did Volkswagen pay in penalties?

On January 11, 2017, Volkswagen agreed to plead guilty to three criminal felony counts, and agrees to pay $2.8 billion criminal penalty. In separate civil resolutions of environmental, customs, and financial claims, VW agreed to pay $1.5 billion which covers EPA’s claim for civil penalties against Volkswagen as well as U.S. Customs and Border Protection claims for customs fraud. In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act.

When was the second phase of emissions modification approved?

On April 18, 2018, EPA and CARB approved the second phase of emissions modifications for Model Year 2015 2.0 Liter Diesel Vehicles. Review the approval letter.

What is the EPA agreement?

In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act. On March 15, 2017, Wilmington Trust, N.A. is appointed by the Court as Trustee of the Environmental Mitigation Trust.

When did defeat device screening protocols become part of compliance oversight?

On September 25, 2015, EPA announced that defeat device screening protocols would be included in compliance oversight programs going forward. Review manufacturer guidance letter.

What is VW settlement?

Volkswagen AG and certain of its North American subsidiaries (collectively "VW") have entered into a multi-billion dollar settlement with the federal government for violations of the Clean Air Act. VW publicly admitted to installing "defeat devices" in certain diesel vehicles.

What did the Illinois EPA look at in revising the Beneficiary Mitigation Plan?

In revising the Beneficiary Mitigation Plan and establishing goals, priorities and expected benefits, the Illinois EPA looked at several categories of metrics and data as required by the Settlement.

What is the Illinois EPA?

The Illinois Environmental Protection Agency (Illinois EPA) has been designated as the lead agency to administer funds allocated to Illinois from the Volkswagen Environmental Mitigation Trust (Trust). The Trust was established by Appendix D of the VW Settlement (Settlement). Illinois’ initial allocation of funds is approximately $108 million to be used to fund mobile source diesel emission reduction projects. The funds are to be used for projects that reduce emissions of nitrogen oxides in Illinois. As directed by the Trust Agreement, the Illinois EPA must develop a Beneficiary Mitigation Plan which addresses Illinois’ planned use of the funds.

What was the Volkswagen recall?

Under the Settlement, Volkswagen was required to remove from commerce in the United States or perform an approved emissions modification on at least 85 percent of the affected 2.0 liter and 3.0 liter vehicles covered by the Settlement. In order to achieve the 85 percent recall rate, Volkswagen offered owners and lessees of the vehicles the opportunity to have their vehicles bought back by Volkswagen at a fair replacement value of the vehicle as of September 17, 2015, or to have their leases terminated at no cost. This buyback or lease termination option had a limited time availability.

What is the appendix C of the settlement?

Appendix C of the Settlement requires Volkswagen to invest $1.2 billion in zero emission vehicle (ZEV) charging infrastructure and in the promotion of ZEVs in areas of the country outside of California. Volkswagen Group of America has created a wholly owned subsidiary, Electrify America LLC, to fulfill its Appendix C commitments. Appendix C commits Volkswagen to separately invest $800 million in California on ZEV infrastructure and promotion.

What is environmental justice?

Environmental Justice (EJ) is based on the principle that all people should be protected from environmental pollution and have the right to a clean and healthy environment. Illinois EPA has defined an area of EJ concern as a community with an income below poverty and/or minority population greater than twice the statewide average. Illinois EPA has developed the EJ Start tool to identify areas of the state, at the census block group level, that meet this definition of an area of EJ concern.

When was the BMP revised?

The Settlement provides that the BMP may be revised. Illinois EPA submitted a BMP to the Trustee in August 2018. In line with Governor Pritzker’s priorities for a cleaner transportation sector in Illinois, the Illinois EPA is revising the BMP.

What is Volkswagen's third partial settlement?

Pursuant to the third partial settlement, Volkswagen will ensure the personnel who test their vehicles for emissions compliance are separate from the personnel who design their vehicles. Volkswagen will also establish a steering committee to ensure compliance with the Clean Air Act. The company will perform portable emission measurement system (PEMS) testing on their vehicles, including gasoline vehicles, and follow strict procedures when developing new vehicles. The company will establish a whistleblower system, and survey employees to gauging compliance, among other things, with United States laws relating to environmental compliance. Lastly, an independent auditor will thoroughly assess Volkswagen’s compliance with this settlement.

How much did Volkswagen invest in CAA 2.0?

To that end, Volkswagen will invest $800 million in California and $1.2 billion throughout the rest of the nation, over the next decade. Volkswagen will invest more in California than in other states due to California’s pivotal role in the case and the market demand for charging infrastructure in California. The ZEV investments required by the CAA 2.0 liter partial settlement are intended to address the fact that consumers purchased these illegal vehicles under the mistaken belief that such vehicles were lower-emitting than others. Examples of ZEV investment for which Volkswagen may obtain credit against the $1.2 billion commitment include, for example, level 2 charging at multi-unit dwellings, workplaces, and public sites, direct current fast charging facilities accessible to all vehicles utilizing non-proprietary connectors, and brand-neutral education or public outreach that builds or increases public awareness of ZEVs.

What is the recall rate for Volkswagen 3.0?

In order to achieve the 85 percent recall rate for the 3.0 liter generation 2 vehicles, Volkswagen must recall and modify these vehicles so that the vehicles meet their certified exhaust emissions standards, if such a technical solution is approved by EPA and CARB.

What is the CAA 3.0 settlement?

Under the CAA 3.0 liter partial settlement, Volkswagen must remove from commerce in the United States or perform an approved emissions modification on at least 85 percent of the affected 3.0 liter vehicles. Volkswagen’s specific obligations for these vehicles differ depending on the technology generation of the vehicles – referred to as the generation 1 or the generation 2 vehicles.

Which state has the 2.0 liter partial settlement?

The State of California, on behalf of its California Air Resource Board and the California Attorney General, joined the United States in both the 2.0 liter partial settlement and the 3.0 liter partial settlement.

What is the CAA 2.0 liter recall?

Under the CAA 2.0 liter partial settlement, Volkswagen must remove from commerce in the United States or perform an approved emissions modification on at least 85 percent of the affected 2.0 liter vehicles by June 2019. VW must also meet a separate 85 percent recall rate in California. If VW fails to reach the 85 percent recall rate, VW must pay additional funds into the mitigation trust in an amount equal to $85 million for each percentage point by which it fell short of the national recall target, and $13.5 million for each percentage point by which it fell short of the California recall target.

What is the EPA settlement for VW?

The first civil settlement resolves EPA’s remaining claims against six VW-related entities (including Volkswagen AG, Audi AG and Porsche AG) currently pending in the multidistrict litigation before U.S. District Judge Charles R. Breyer of the Northern District of California. EPA’s complaint alleges that VW violated the Clean Air Act by selling approximately 590,000 cars that the United States alleges are equipped with defeat devices and, during normal operation and use, emit pollution significantly in excess of EPA-compliant levels. VW has agreed to pay $1.45 billion to resolve EPA’s civil penalty claims, as well as the civil penalty claim of CBP described below. The consent decree resolving the Clean Air Act claims also resolves EPA’s remaining claim in the complaint for injunctive relief to prevent future violations by requiring VW to undertake a number of corporate governance reforms and perform in-use testing of its vehicles using a portable emissions measurement system of the same type used to catch VW’s cheating in the first place. Today’s settlement is in addition the historic $14.7 billion settlement that addressed the 2.0 liter cars on the road and associated environmental harm announced in June 2016, and $1 billion settlement that addressed the 3.0 liter cars on the road and associated environmental harm announced in December 2016, which together included nearly $3 billion for environmental mitigation projects.

How much did VW pay in civil penalties?

In separate civil resolutions of environmental, customs and financial claims, VW has agreed to pay $1.5 billion. This includes EPA’s claim for civil penalties against VW in connection with VW’s importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud.

What was the defeat device software used for?

Hadler authorized Dorenkamp to proceed with the project knowing that only the use of the defeat device software would enable VW diesel vehicles to pass U.S. emissions tests. Starting with the first model year 2009 of VW’s new “clean diesel” engine through model year 2016, Dorenkamp, Neusser, Hadler and their co-conspirators installed, or caused to be installed, the defeat device software into the vehicles imported and sold in the United States. In order to sell their “clean diesel” vehicles in the United States, the co-conspirators lied to the EPA about the existence of their test-cheating software, hiding it from the EPA, CARB, VW customers and the U.S. public. Dorenkamp, Neusser, Hadler, Gottweis, Schmidt, Peter and their co-conspirators then marketed, and caused to be marketed, VW diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly.

What caused the VW diesel to fail?

Around 2012, hardware failures developed in certain of the diesel vehicles. VW engineers believed the increased stress on the exhaust system from being driven in the “dyno mode” could be the cause of the hardware failures. In July 2012, VW engineers met with Neusser and Gottweis to explain what they believed to be the cause of the hardware failures and explained the defeat device. Gottweis and Neusser each encouraged further concealment of the software. In 2014, the co-conspirators perfected their cheating software by starting the vehicle in “street mode,” and, when the defeat device realized the vehicle was being tested, switching to the “dyno mode.” To increase the ability of the vehicle’s software to recognize that it was being tested on the dynamometer, the VW engineers activated a “steering wheel angle recognition feature.” With these alterations, it was believed the stress on the exhaust system would be reduced because the engine would not be operating for as long in “dyno mode.” The new function was installed in existing vehicles through software updates. The defendants and other co-conspirators falsely represented, and caused to be represented, to U.S. regulators, U.S. customers and others that the software update was intended to improve durability and emissions issues in the vehicles when, in fact, they knew it was used to more quickly deactivate emission control systems when the vehicle was not undergoing emissions tests.

What is VW charged with?

VW is charged with and has agreed to plead guilty to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. VW is also charged with obstruction of justice for destroying documents related to the scheme, and with a separate crime of importing these cars into the U.S. by means of false statements about the vehicles’ compliance with emissions limits. Under the terms of the plea agreement, which must be accepted by the court, VW will plead guilty to all these crimes, will be on probation for three years, will be under an independent corporate compliance monitor who will oversee the company for at least three years, and agrees to fully cooperate in the Justice Department’s ongoing investigation and prosecution of individuals responsible for these crimes.

How did VW violate the law?

VW entities violated criminal and civil customs laws by knowingly submitting to CBP material false statements and omitting material information, over multiple years, with the intent of deceiving or misleading CBP concerning the admissibility of vehicles into the United States.

How much did VW pay in fines?

VW to Pay $2.8 Billion Criminal Fine in Guilty Plea and $1.5 Billion Settlement of Civil Environmental, Customs and Financial Violations; Monitor to Be Appointed to Oversee the Parent Company

Settlement Breakdown

Of the $2.9 billion allocated to environmental mitigation projects, North Carolina will receive approximately $92 million. The amount awarded was based on the approximately 16,000 affected 2.0-and 3.0-liter diesel engine vehicles registered in North Carolina.

Mitigation Projects

North Carolina’s $92 million allocation from the VW Settlement will be invested in a variety of environmental mitigation projects. Appendix D-2 of the Consent Decree (link is external) outlines specific details of how trust funds may be used.

Overview

Affected Vehicles

Timeline of Key Milestones

Coordination with California

• EPA is working closely with our partner California's Air Resources Board to implement the settlement with Volkswagen. In addition, EPA and its partners the California Air Resources Board and Environment Canada are testing all current 2015-2016 light duty diesel vehicles to screen for potential defeat devices. The agencies will announce the results ...

See more on epa.gov

Overview of The VW Settlement

Metrics & Data

Revised Beneficiary Mitigation Plan

• The Settlement provides that the BMP may be revised. Illinois EPA submitted a BMP to the Trustee in August 2018. In line with Governor Pritzker's priorities for a cleaner transportation sector in Illinois, the Illinois EPA is revising the BMP. On April 27, 2022, the Illinois EPA submitted a revised BMP to the Trustee with revised goals and allocati...

See more on www2.illinois.gov

Public Input