Washington State Fines VW $176 Million for Rigged Diesels

The state of Washington has levied a $176 million (€158 million) fine against Volkswagen AG for manipulating 21,000 diesels sold there to evade federal emission limits.

VW says it “regrets” the agency’s decision to impose a separate fine after the state and 42 others participated in a nine-month federal investigation into the cheater diesels. That probe resulted in a $14.7 billion nationwide settlement in June.

VW also agreed to pay $2.7 billion for a nationwide environmental remediation trust fund and $2 billion for initiatives that promote zero-emission vehicles. Washington, 42 other states and the District of Columbia participated in the federal investigation. But they are not prohibited by the settlement from imposing their own environmental sanctions.

Washington’s Dept. of Ecology says its fine makes VW accountable for environmental damage it inflicted within the state in the form of excessive nitrogen oxides emissions from the cars. The agency plans to contribute the proceeds, which work out to more than $8,000 per affected vehicle, to a general fund to reduce air pollution.

VW has 30 days to appeal the fine to the state’s Pollution Control Hearings Board. The company did not immediately declare its intentions.