VW Settlements and Iowa’s Allocation
As a result of two related Volkswagen settlements, the state of Iowa is expected to receive approximately $21 million in environmental mitigation trust funds over the next ten years for projects that reduce emissions of nitrogen oxides (NOx). We are currently seeking public input about how the settlement money should be spent on eligible mitigation actions. This information will be used to help Iowa draft the state’s Beneficiary Mitigation Plan.
In 2016, the Environmental Protection Agency (EPA) filed a complaint alleging VW violated the Clean Air Act by the sale of approximately 580,000 motor vehicles containing 2.0 or 3.0 turbocharged direct injection (TDI) liter diesel engines equipped with “defeat devices” between model years 2009 and 2016. The subject vehicles are equipped with devices in the form of computer software designed to perform differently during normal vehicle operation than during emissions tests. It is alleged that during normal use, the subject vehicles emit levels of NOx in excess of the EPA compliant levels and are a serious health concern.