California says Volkswagen will pay the state another $154 million in penalties and costs over the automaker's emissions scandal.
California's Air Resources Board says the increase in a consent decree filed Thursday brings VW's total settlement in California to $1.3 billion.
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Volkswagen Group of America acknowledges rigging 11 million of its vehicles with software used to cheat on vehicle emissions tests.
Environmental regulators say some of the VW vehicles emitted up to 40 times the allowed levels of unhealthy nitrous oxides when on the road.
The additional $154 million settlement requires court approval. Volkswagen spokeswoman Jeannine Ginivan called it an important step for the automaker and its shareholders.
The total $1.3 billion negotiated settlement includes penalties and payments to help California boost its network supporting cleaner-running electric cars.