US Engine manufacturer Cummins has agreed in principle to pay a USD1.675bn penalty for violating the Clean Air Act, as reported by Reuters on December 22. According to the US Department of Justice (DOJ), the company allegedly installed emissions defeat devices on hundreds of thousands of engines. Defeat devices are parts or software that are designed to bypass or disable emissions controls, including emission sensors and onboard computers. The DOJ estimates that defeat devices on some Cummins engines have resulted in thousands of tons of excess nitrogen oxide emissions. The department warns that long-term exposure to these pollutants could lead to breathing issues like asthma and respiratory infections.

The USD1.675bn fine marks the largest civil penalty levied under the Clean Air Act, and the second largest environmental penalty ever secured. Cummins unveiled that it expects to spend USD2.04bn in the fourth quarter to resolve regulatory claims relating to nearly one million engines, after paying USD59m to recall 960,000 vehicles. The company also pledged to update its emissions control software, while it refused to admit any wrongdoing. The punishment signals US regulators’ continued efforts to combat using emission defeat devices. In 2017, Volkswagen was found using software to suppress nitrogen oxide emissions during tests, bypassing US pollution rules on nearly 600,000 diesel vehicles. The German automaker paid USD4.3bn in civil and criminal penalties to settle these charges, with the overall cost of this cheating scandal reaching over USD30bn, including its pledge to repair or buy back vehicles.

Sources:

https://www.reuters.com/business/autos-transportation/cummins-take-about-204-bln-charge-fourth-quarter-2023-12-22/

https://www.justice.gov/opa/pr/statement-attorney-general-merrick-garland-agreement-principle-cummins-settle-alleged

https://www.nbcnews.com/business/business-news/cummins-emissions-defeat-devices-rolling-coal-fine-clean-air-act-rcna130975

https://www.theguardian.com/business/2017/mar/10/volkswagen-vw-pleads-guilty-criminal-charges-emissions-cheating

https://www.nbcnews.com/business/autos/judge-approves-largest-fine-u-s-history-volkswagen-n749406