U.S. May Ask VW for Reparations for Cheater Diesel Pollution

Volkswagen AG may be asked by the U.S. not just to fix diesels it rigged to evade emission standards but also to help clean the air its vehicles have polluted.

Bloomberg News reports the Environmental Protection Agency has been presented with a broad range of suggestions to impose sanctions beyond a straightforward recall and fine for cheating. The proposals aim to more than offset the estimated amount of excess oxides of nitrogen emissions from the 580,000 cheater diesels VW sold in the U.S. since 2009.

Among the suggestions are those that would press VW to build and sell EVs in the U.S., help pay for America’s EV charging infrastructure or fund programs to retrofit older diesel-powered trucks and buses with modern emission control systems.

Bloomberg notes that EPA has been willing in the past to reduce a polluter’s penalties if the company agrees to a project that provide “significant, quantifiable benefits to public health or the environment.”

Last summer researchers from Harvard University and the Massachusetts Institute of Technology estimated that excess NOx emissions from VW’s rigged diesels will cause 60 early deaths in the U.S.

EPA could ultimately rule out remedial projects and simply levy a hefty fine against VW. An analyst with UBS AG has estimated VW’s overall cost to repair the 11 million doctored diesels it sold worldwide could reach $42 billion (€38 billion) for repairs, buybacks, punitive fines and lawsuit settlements.