Make VW Pay

The Environmental Protection Agency (EPA) says Volkswagen designed some 567,000 "clean" diesel cars to violate the law. They built elaborate software, called a "defeat device," to turn on emissions controls during testing and turn them off during regular driving. By cheating the law, VW ripped off hundreds of thousands of consumers who thought they were buying clean vehicles. They put our health at risk, emitting as much as 40 times the legal limit of smog-forming pollutants.

Yet, their deceit and the subsequent settlement now represents a historic opportunity to drastically reduce the harmful pollution that makes us sick and accelerates climate change by providing an essential down payment toward the transition to a clean and modern 21st century transportation system. 

According to the terms of the VW settlement, agreed to by VW and the Department of Justice, VW will pay a total of $14.7 billion in damages for their role in violating federal clean air laws.

Out of the total settlement, $2.7 billion will be distributed to states specifically to reduce NOx pollution, a major component of diesel exhaust. Each state will be required to ask for the funds and to develop a plan for how the money will be used to reduce NOx emissions. 
 
NOx poses a serious threat to human health and has been shown to aggravate and even contribute to the development of respiratory illnesses. NOx is also a key component of smog, which has similar respiratory and health impacts and contributes to acid rain. In addition, diesel exhaust, which contains NOx, carbon dioxide (CO2), particulate matter, and other pollutants, was classified as a carcinogen by the World Health Organization in 2012.
 
Given the unique challenges and opportunities in each state, the settlement leaves a good amount of flexibility in how the money may be used. However, that flexibility presents its own challenges, opening up the possibility of squandering the money on older, dirtier technologies like diesel and natural gas, while forgoing clean, electric alternatives. Such a move would represent a massive missed opportunity to transition to a cleaner, healthier and modern all-electric system, while only realizing marginal pollution reduction benefits. 
 
Transitioning to all-electric alternatives can reduce long-term costs, gas consumption and harmful pollution, while bringing our outdated transportation system into the 21st century. Therefore, it is essential that these funds be invested wisely.
 
Ensuring that the funds are used wisely will result in several distinct benefits including, but not limited to:
  • Drastically reducing NOx, ground-level ozone (smog), and particulate matter;
  • Significantly reducing CO2 and other greenhouse gas emissions; 
  • Reducing long-term fuel consumption, maintenance, and operation costs of public fleet vehicles;
  • Adding needed stability to the price of energy inputs for vehicles;
  • Increasing public awareness and adoption of electric vehicles as cleaner alternatives to traditional gas-powered vehicles. 
To ensure this opportunity is not lost, we're educating the state agencies entrusted with these funds and urging them to spend the maximum allowable amount (15 percent) on electric vehicle charging infrastructure for the state’s highways, while investing the remaining funds on replacing outdated, dirty transit buses. We believe that this is the best possible use of the funds to reduce harmful pollution, lower costs and accelerate a market transformation to an all-electric, 21st century transportation system. 
 
Simultaneously, we are acting to educate and mobilize the public on this opportunity, and bring together likeminded advocates from across the political spectrum to do the same. As leaders in the movement to hold VW accountable, and because of our previous work to ensure a fair and beneficial settlement to VW consumers and the general public, we are uniquely positioned to continue leading this fight. However, if we do not act now, this opportunity will pass and state decision makers may use these funds in counterproductive ways, missing the opportunity to make a substantial down payment on a cleaner, healthier transportation system.
 

Issue updates

News Release | U.S. PIRG Education Fund | Transportation

New Report: Long-Term Drop in How Much People Drive, Youth Desire More Transportation Options

A new report released today by the U.S. Public Interest Research Group Education Fund and the Frontier Group demonstrates that Americans have been driving less since the middle of last decade. The report, Transportation and the New Generation: Why Young People are Driving Less and What it Means for Transportation Policy, shows that young people in particular are decreasing the amount they drive and increasing their use of transportation alternatives.

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Report | U.S. PIRG Education Fund & Frontier Group | Transportation

Transportation and the New Generation

From World War II until just a few years ago, the number of miles driven annually on America’s roads steadily increased. Then, at the turn of the century, something changed: Americans began driving less. By 2011, the average American was driving 6 percent fewer miles per year than in 2004.

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Blog Post | Transportation

House Transportation Bills Strikes First as Tragedy, Then as Dangerous Farce

The House introduced additional legislation proposing that new revenue for the Transportation Fund would come through increased volumes of oil drilling and that public transit would be kicked out of the transportation fund. This breaks with three decades of public transit being supported by a small portion of the federal gas tax. The House measure would instead funnel all these funds to highways, and leave mass transit to search for new money from Congress at a time when debt reduction rules require massive cuts to the general budget. If you were trying to make America as addicted to oil as possible, you might design legislation like this.

 

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News Release | U.S. PIRG | Transportation

House Proposal Threatens to Defund Public Transportation

Statement of U.S. PIRG Tax and Budget Associate Dan Smith on the House Ways and Means Committee title (H.R. 3864) of the surface transportation bill to fund all federal investment in transportation over the next five years.

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News Release | U.S. PIRG | Budget, Transportation

House Transportation Bill a Step Backwards, Lacks Serious Funding Mechanism

 

Statement of U.S. PIRG Tax and Budget Associate Dan Smith on the House transportation reauthorization bill introduced today.

 

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Pages

Blog Post

In Virginia, Dominion Energy proposed the nation’s most ambitious electric school bus plan, but where are the rest of the states?

Blog Post

Last month, Florida became the last state to make public its draft plan for spending the Volkswagen settlement money. Every state in the nation has received money from Volkswagen's historic settlement with federal authorities over emissions control violations in the automakers "clean diesel" vehicles. Florida's share is $166 million. While the plan commits to new funding for electric vehicle charging infrastructure, the plan dedicates the rest of the diesel mitigation funding to the purchase of new diesel vehicles. We urged the state to amend the plan so that the funding is focused exclusively on electric vehicles.”

News Release | U.S. PIRG

 

The Senate Committee on the Environment and Public Works unveiled a major transportation bill today, which includes a section on climate change that shifts some federal highway money to Complete Streets -- a  program that makes streets safer for walking and biking. The legislation also moves money toward investments in public transportation designed to reduce greenhouse gas emissions and authorizes funding for an expansion of electric vehicle charging infrastructure.

Blog Post

States across the country are still spending billions of dollars every year widening highways, usually in the name of congestion relief. These dollars are not being well spent. The projects don’t do a good job reducing traffic, but they do exacerbate the very real safety, health and environmental problems with our transportation system.

News Release | U.S. PIRG

Highway projects are notorious for wasting taxpayer dollars. In the fifth edition of their Highway Boondoggles report, U.S. PIRG Education Fund and Frontier Group identify nine new wasteful highway expansion projects across the country, slated to cost at least $25 billion collectively. Over five editions of the report, the groups have profiled 50 boondoggles.

Transportation | U.S. PIRG

Volkswagen settlement scorecard

Volkswagen was caught cheating emissions laws and settled with federal authorities. The settlement included nearly $3 billion for the Environmental Mitigation Trust. How well does your state rank on plans for investing VW mitigation trust funds in clean transportation projects?

 
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