Cummins to pay $1.675 billion in emissions 'cheating' settlement — and recall 630,000 trucks

Diesel engine manufacturer Cummins agreed to pay $1.675 billion to settle civil cases brought against it by the Biden administration and California for allegedly "cheating" emissions laws, according to a Wednesday press release from the Department of Justice.

According to the DOJ, the settlement agreement is the largest ever for a Clean Air Act violation and the second-largest environmental penalty.

Cummins was accused of "installing emissions defeat devices on hundreds of thousands of engines," violating the Clean Air Act and California law. The defeat devices, which can be a part or software, allow vehicles to circumvent emissions testing requirements.

In addition to the civil penalty, Cummins also agreed to invest over $325 million to remedy the defeat devices. Approximately 630,000 Ram 2500 and 3500 pickup trucks will be recalled to replace the engine control software. The manufacturer's recall only involves software updates.

"Cummins will also extend the warranty period for certain parts in the repaired vehicles, fund and perform projects to mitigate excess ozone-creating nitrogen oxides (NOx) emitted from the vehicles and employ new internal procedures designed to prevent future emissions cheating. In total, the settlement is valued at more than $2 billion," the DOJ reported.

In 2015, the Environmental Protection Agency warned vehicle manufacturers that it would begin conducting special testing to discover potential defeat devices.

Cummins' defeat devices "artificially reduced the effectiveness of the emission controls – and increased NOx emissions – during normal driving outside of the standard test conditions," the DOJ claimed.

As part of the settlement agreement, Cummins must pay the California Air Resources Board approximately "$175 million to fund mitigation actions or projects that reduce NOx emissions in California through CARB mitigation programs."

The manufacturer was also ordered to offset NOx emissions by working with railroad locomotive owners to replace 27 high-emitting diesel engines with "new, low-emitting diesel or electric engines." Cummins will also fund 50 projects to reduce idle time for diesel-powered switch locomotives.

Attorney General Merrick B. Garland reaffirmed the DOJ's commitment to "vigorously enforcing environmental laws that protect the American people from harmful pollutants."

"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," Garland stated.

Cummins has denied any wrongdoing.

"Today marks another step toward concluding that four-year review," Cummins said, Fox News Digital reported.

The company pointed to comments it made in December regarding the settlement, adding, "As Cummins said then, we are looking forward to obtaining certainty as we conclude this lengthy matter and continue to deliver on our mission of powering a more prosperous world."

"We remain committed to advancing our Destination Zero strategy — Cummins' vision for achieving a zero-emissions future — which is driven by decarbonization and aimed at promoting economic growth while using fewer of the world's resources," it continued.

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