With Volkswagen, regulators, and owners expected to present a diesel scandal settlement agreement to US District Judge Charles Breyer on June 28, rumors are already swirling about what the content of the deal will be. Bloomberg today is reporting that Volkswagen will provide cash payments of $1,000 to $7,000 to TDI owners and will fund a grant to offset air pollution.

As we reported earlier this week , the rumored agreement will amount to more than $10 billion for Volkswagen, and the amount actually paid out to the owners of the 482,000 diesel cars will depend on age and other factors, says Bloomberg's report.

Regulators are said to be looking at the Diesel Emissions Reductions Act (DERA) grant as a model for how to spend the remediation fund that Volkswagen is paying to government regulators. DERA funded projects like retrofitting older diesel buses and replacing aging fleets of diesel trucks.

Just how much money goes intothat fund will depend on a complex calculus that will take into account how long the TDIs have been on the road, how long they will continue to be on the road, and how many are likely to never get fixed. As a result, the figure isn’t set.

These reports come from a source who spoke to Bloomberg on condition of anonymity, and since Judge Breyer has administered a gag order, the story cannot be confirmed or denied by official sources.

[source: Bloomberg ]