Owners of newer vehicles, which Volkswagen intends to fix, will receive approximately $7,000 to $16,000 in compensation.
The company said Thursday it welcomed Breyer's decision to approve the agreement.
The 3.0-liter settlement brings the total amount the company must pay in the dieselgate matter in North America to more than $22 billion. The settlement [Reuters report] requires Volkswagen to pay at least $1.22 billion to buy back or fix 80,000 3.0-liter vehicles.
Addressing a handful of objectors to the settlements, Breyer said this is a case in which "the perfect" should not become "the enemy of the good".
If VW can't come up with an Environmental Protection Agency-authorized fix for the second group, it will be required to offer a buyback to those customers, as well, making the total settlement worth $4 billion.
These models can not be repaired to meet their originally certified emission standards, so owners will likely opt for a buyback or trade-in.
Resolution of the civil case comes after another federal judge ordered the German auto maker in April to pay a $2.8 billion criminal fine as part of a plea deal with USA prosecutors.
The earlier settlement concluded in a $14.7-billion deal, finalized in October 2016, to lay to rest claims over some 500,000 two-liter diesel engine vehicles tainted by emissions-cheating software.
The company has acknowledged that the cars were programmed to turn on emissions controls during government lab tests and turn off the controls while on the road.
In April, a federal judge in Detroit approved VW's agreement to pay a $4.3 billion penalty for misleading US regulators and customers. "We believe the substantial compensation and steps to fix or remove polluting cars from the roads detailed in the settlements provide excellent value to consumers and hold Volkswagen and Bosch accountable for their breach of consumer trust".
Volkswagen acknowledged in 2015 that roughly 475,000 Volkswagen and Audi vehicles with 2.0-liter diesel engines included software created to circumvent emissions standards.
Under the terms of the settlement, VW will be required to modify or buy back up to 80,000 3.0-liter vehicles sold in the US that were equipped with "defeat device" software that turned off required emissions controls within the vehicles. They emitted up to 40 times the legal limit for harmful nitrogen oxide.
"A year ago, I stood here and said Volkswagen was committed to making things right with the environment, consumers and regulators", Giuffra said at Thursday's hearing. "As of today, and this is six months into the program. we're up to 280,000 vehicles".