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.
Volkswagen Group of America acknowledges rigging 11 million of its vehicles with software used to cheat on vehicle emissions tests.
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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.