VW diesel settlement’s $2.8 billion: Here’s how states will spend it

South Carolina wants to replace aging school buses. Colorado plans to electrify Denver’s bus system. And Washington wants electric ferryboats for Puget Sound. As part of a 2016 federal court settlement after Volkswagen admitted programming its diesel vehicles to cheat on emissions tests, the automaker agreed to pay $2.8 billion to states to be used to reduce diesel pollution.