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HARRISBURG, Pa. (AP) — Pennsylvania's governor said Thursday the state will use a $118 million settlement with Volkswagen over the company's cheating on emissions tests to cut air pollution in the state.

Forklift trainingDemocratic Gov. Tom Wolf told The Associated Press that he is setting up Driving PA Forward , central-it.Co.uk a program to distribute grants and rebates that aim to boost air quality.

The goal is to replace older diesel engines with new technologies, and cut nitrogen oxide emissions by up to 27,700 tons.

"Clean air is the cornerstone of a clean, healthy environment," Wolf said in a statement ahead of a formal announcement in western Pennsylvania. "When Volkswagen cheated on its emissions equipment, it undermined that cornerstone."

Volkswagen Group of America Inc. is making the payment to settle complaints it sold nearly 600,000 diesel-engine autos in the U.S. with computer software that rigged the results of federal emissions tests.

Wolf said eight grant and rebate programs will operate over the next five years, with up to $39 million available in the first year.

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