VW federal settlement & state penalty

In 2018, Washington filed its Beneficiary Mitigation Plan with the federal settlement trustee, Wilmington Trust. This required plan outlines investment principles, and priorities to improve air quality and mitigate the illegal emissions of the violating vehicles.

We developed the plan with input from stakeholders and the public. We also received guidance from the Governor and other state agencies. The plan lays out Washington goals, principles, and priorities that guide grant program development. The mitigation plan goals align with the overall purpose of the federal settlement to:

• Reduce emissions where the violating vehicles were, are, or will be operating.
• Fully mitigate the total lifetime excess nitrogen oxide emissions of the violating vehicles.

These principles guide Washington's selection of eligible grant projects: 

• Improve air quality for highly-impacted communities that have experienced an excessive share of air pollution.
• Provide air quality benefits in addition to reducing nitrogen oxide.
• Maximize air quality benefits that improve people's health.

Washington prioritizes funding for projects that:

• Accelerate adoption of electric vehicles, equipment, and vessels.
• Promote electric technologies in public transportation fleets.
• Accelerate state fleet replacement to the cleanest motors or engines.
• Reduce emissions substantially, beyond what would occur without trust funds.
• Create cost-effective grant opportunities.
• Leverage matching funds.

A steering committee of state agencies and the Governor’s Office helps inform planning efforts and ensures coordination with other zero-emission transportation efforts across Washington.

Read the complete Washington Volkswagen Beneficiary Mitigation Plan.

Learn more about the federal settlement and eligible projects.

Achieving the reduction goal for nitrogen oxide emissions

About 24,000 vehicles with illegal emissions operated in Washington, producing an estimated 3,000 tons of excess nitrogen oxide over those vehicles' operating lifetimes and harming people's health. These zero-emission transportation grant projects will reduce an estimated 5,100 tons of nitrogen oxide.

• Electric transit buses
• EV charging stations at public workplaces
• Electric ferry
• Electric school buses
• EV charging stations along high traffic roadways
• Shore power for ocean-going vessels
• Electric fire trucks

In 2018, the Legislature directed these state penalty funds to be used to reduce air pollution from transit buses, school buses, state-owned vehicles, and trucks serving Washington’s ports.

Funded projects include:

• $12 million to replace old, diesel school buses
• $9.7 million to electrify transit buses
• $5.5 million to add electric vehicles to state vehicle fleets
• $1.2 million to help public ports buy cleaner trucks and install shore power for ocean-going vessels