Diesel engine manufacturer Cummins to pay record $2 billion clean air settlement in California, federal cases
State and federal officials announced Wednesday a "landmark settlement" that will yield the largest-ever civil penalty under the Clean Air Act and the second largest in federal environmental litigation.
Under two consent decrees filed in federal court in the District of Columbia, Cummins Inc., an Indiana-based engine manufacturer, will pay $1.675 billion to resolve federal and state claims that certain Cummins diesel engines contained "defeat devices" that bypassed emissions controls. Cummins will also take other remedial steps -- including recalls -- that are anticipated to cost the company another $325 million.
California both joined the EPA in its settlement and separately resolved its own claims. State officials estimated that California's share of both settlements will amount to more than $372 million.
The consent decrees, totaling 142 pages without exhibits, are subject to court approval after a 30-day public comment period.
In an earlier statement, U.S. Attorney General Merrick Garland said, "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."
Garland added that the devices, "caused them to produce thousands of tons of excess emissions of nitrogen oxides. The cascading effect of those pollutants can, over long-term exposure, lead to breathing issues like asthma and respiratory infections."
According to the government, illegal defeat devices were installed in 630,000 RAM 2500 and 3500 pickup truck engines from model years 2013 to 2019. The company also installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines.
Approximately 100,000 of the vehicles were sold in California, according to the consent decrees.
The consent decrees also require Cummins to conduct a recall and repair program to remove all defeat devices from the 2013-19 trucks and provide replacement software. The company will also offer a special extended warranty covering emission control components.
Cummins is required to repair 85% of the trucks with defeat devices within three years.
California Attorney General Rob Bonta said, "Cummins knowingly harmed people's health and our environment when they skirted state emissions tests and requirements. Today's settlement sends a clear message: If you break the law, we will hold you accountable."
In a corporate statement released in December 2023 when a settlement in principle was first reached, Cummins said that it "has seen no evidence that anyone acted in bad faith and does not admit wrongdoing."
When questioned about Cummins' position, Assistant Administrator David Uhlmann of EPA's Office of Enforcement and Compliance Assurance said, "Cummins would not be paying $2 billion today to settle these claims if the company did nothing wrong."
Bonta added that he thought Cummins' "spin" was disappointing. "They knew what they did, they got caught, and we held them accountable."
A spokesman for Cummins said that the company stood by its earlier statement.
