Home Investing U.S. engine maker facing largest Clean Air Act penalty ever over emissions test cheating accusations

U.S. engine maker facing largest Clean Air Act penalty ever over emissions test cheating accusations

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In November 2019, the U.S. Environmental Protection Agency and Department of Justice announced a settlement with engine manufacturer Cummins Inc. requiring the company to pay $7M in civil penalties and $2.6M for state investments in projects that reduce emissions. The settlement was the largest penalty ever for a company accused of Clean Air Act emissions test cheating.

The settlement stemmed from investigations that alleged Cummins installed and failed to disclose emissions control devices on its engines without following the regulatory process. These undisclosed emission control devices allowed engines to meet emissions requirements when tested, but not in real-world applications. The company also agreed to recall 500,000 engines across the U.S. and Canada.

As part of the settlement, Cummins also agreed to implement an emissions control compliance program to improve compliance and ensure its engines met their emission standards in real-world driving scenarios. The company did not admit to or deny the allegations.

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