Federal officials announced Wednesday that Cummins Inc., the manufacturer of Diesel engines, agreed to a proposed settlement for alleged infractions of the Clean Air Act and California law.
In addition to consenting to a $1.6 billion civil penalty, which is the highest ever imposed in a Clean Air Act case, Cummins has committed to allocating over $325 million to rectify the infractions, officials stated.
These infractions involved utilizing software “defeat devices” that evaded emissions testing and certification mandates.
Cummins must conduct a comprehensive recall across the country to rectify and substitute the engine management software in over 600,000 RAM 2500 and RAM 3500 pickup vehicles that are fitted with the company’s diesel engines.
Cummins will also extend the warranty period for certain parts of the repaired vehicles, fund and carry out projects to reduce the excess of ozone-forming nitrogen oxides (NOx) produced by the vehicles, and set up new internal rules that are meant to stop emissions fraud from happening again.
The total valuation of the settlement exceeds $2 billion.
According to authorities, NOx emissions are a significant factor in creating detrimental smog and fine particulate matter in the atmosphere.
Individuals who fall into the categories of children, elderly persons, outdoor enthusiasts, and those with heart or lung conditions are especially vulnerable to the adverse health consequences associated with exposure to smog or particulate matter.
Nitrogen dioxide, which is a byproduct of NOx emissions, can aggravate respiratory conditions, particularly asthma, and may also contribute to the development of asthma in children.
“The Justice Department is committed to vigorously enforcing environmental laws that protect the American people from harmful pollutants,” said Attorney General Merrick B. Garland. “The types of devices we allege that Cummins installed in its engines to cheat federal environmental laws have a significant and harmful impact on people’s health and safety. This historic agreement makes clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people’s health and safety.”
Background
Testing conducted at the EPA’s National Vehicle and Fuel Emissions Laboratory found defeat devices in Cummins engines utilized in RAM pickup trucks, similar to previous cases involving other manufacturers.
The testing of RAM trucks followed an EPA warning to manufacturers in 2015.
The agency intended to conduct special testing to detect defeat devices using driving cycles and settings that deviated from the standard yet represented typical vehicle operation and usage.
Two consent decrees that the United States and California submitted to the U.S. District Court for the District of Columbia set forth the specific terms of the proposed agreement with Cummins.
In a set of complaints filed today, the United States and California claim that many RAM 2500 and RAM 3500 pickup trucks manufactured between 2013 and 2023 were equipped with undisclosed engine control software features.
Furthermore, out of the total trucks produced between 2013 and 2019, over 630,000 were found to have illegal emissions control software defeat device features.
The software defeat mechanisms enabled the vehicles to meet the routine EPA emissions testing successfully but also deliberately hindered the efficiency of the emission controls and resulted in elevated NOx emissions during regular driving outside of the standardized test settings.
Recall and Repair Program
Although Fiat Chrysler’s RAM truck division and its dealers marketed and sold the vehicles, Cummins pursued all EPA and CARB emission certifications for RAM vehicles equipped with its engines.
The settlement mandates Cummins to collaborate with Fiat Chrysler and its dealers on a vehicle recall and repair initiative.
This program will remove all defeat devices from the affected 2013-2019 RAM trucks at no cost, ensuring compliance with the relevant emissions standards outlined in the Clean Air Act.
The fix solely entails software updates. Cummins has promptly initiated the recall and repair program mandated by the settlement.
Cummins is obligated to rectify a minimum of 85% of the 2013-2019 RAM trucks fitted with defeat devices within three years. The corporation must provide a specialized extended warranty that specifically covers the sections of the emission control system for RAM vehicles manufactured between 2013 and 2019, provided that these trucks have received the replacement software.
Cummins must also do long-term testing on the rebuilt trucks to verify ongoing compliance with emissions requirements.
Mitigation Programs
As an additional condition of the settlement, Cummins is obligated to completely compensate for the surplus nitrogen oxide (NOx) emissions produced by the 2013-2019 RAM vehicles that were fitted with devices designed to cheat emissions tests.
In California, Cummins will provide a lump sum payment of about $175 million to CARB in order to finance initiatives or projects that aim to decrease NOx emissions in the state through CARB mitigation programs.
Cummins will collaborate with railroad locomotive owners to implement two locomotive emission reduction initiatives to achieve offsetting NOx reductions across the remainder of the country.
Cummins will provide funding and guarantee the substitution of 27 outdated diesel locomotive engines that release high levels of pollutants with new engines, either diesel or electric, that emit lower levels of pollutants.
Furthermore, Cummins will provide financial support and successfully carry out 50 initiatives to decrease the amount of time diesel-powered switch locomotives spend idle.
This will result in a reduction in fuel consumption as well as the emissions of NOx, particulate matter, volatile organic compounds, and carbon dioxide.
Public Information and Public Comment
This EPA website offers additional information concerning the settlement:
https://www.epa.gov/enforcement/2024-cummins-inc-vehicle-emission-control-violations-settlement
The complaints and the proposed consent decrees in the related cases filed by the Justice Department’s Environment Enforcement Section and the State of California can be viewed on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
A 30-day public comment period is available for the proposed consent decree in the case the United States filed.