SEATTLE—Washington state regulators have fined Volkswagen $176 million, saying the auto maker put people's health at risk by releasing harmful air pollutants by cheating on emissions tests.

The Department of Ecology said Thursday that the company violated state clean-air laws when it installed illegal software on many of its diesel vehicles to trick emissions tests.

Volkswagen vehicles emitted as much as 40 times the allowable amount of harmful nitrogen oxides while being driven, the department said. The fine was based on violations per vehicle, and the penalty holds Volkswagen accountable for environmental damage from more than 21,000 vehicles registered in Washington, the department said.

Volkswagen said in a statement Thursday that it is working with federal and state agencies on a national resolution of remaining environmental issues on the issue. "It is regrettable that some states have decided to pursue environmental claims now" after supporting that process, the company said.

Volkswagen said on June 28 that it reached a $603 million agreement with 44 U.S. states, the District of Columbia and Puerto Rico to resolve consumer-protection claims.

Separately, the German auto maker reached a deal in June with the U.S. government to pay as much as $14.7 billion to settle emissions-cheating claims with American consumers and regulators.

Copyright 2016 Associated Press

(END) Dow Jones Newswires

July 28, 2016 21:05 ET (01:05 GMT)