Cummins Agrees To Pay $2 Billion Fine In Largest-Ever Clean Air Act Settlement

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Cummins will cough up $2 billion after reaching a settlement with the U.S. Justice Department and California over allegations that it has used devices to cheat emissions controls.

The engine manufacturer first agreed in principle to the settlement in December but has only just finalized it. While the settlement is still subject to court approval, Cummins will be forced to pay a $1.675 billion fine, including $1.48 billion to the federal government, $164 million to the California Air Resources Board, and $33 million to the California Attorney General’s Office.

Additionally, Cummins will spend in excess of $325 million to remedy its excess emissions, including allocating $175 million to California to reduce excess nitrogen oxide and to fund the replacement of high-emitting diesel engines used in locomotives.

The lawsuit alleges that Cummins used defeat devices on 650,000 Ram 2500 and 3500 trucks built from 2013 to 2019. Auto News notes the government also asserted the engine manufactured had undisclosed auxiliary emission control devices on 330,000 Ram 2500 and 3500 trucks from 2019 to 2023, but said these did not result in excess emissions. The penalty is the largest ever for a Clean Air Act violation and the second-largest environmental penalty in U.S. history.

Read: Cummins Chokes Up Record $1.7 Billion Fine To Settle Dirty Ram Diesel Scandal

“These results should send a powerful message that admission cheating attempts by vehicle and engine manufacturers will not be tolerated,” the head of the Justice Department’s Environment and Natural Resources Division, Todd Kim, said of the settlement.

Despite agreeing to a massive settlement, Cummins says it “has seen no evidence that anyone acted in bad faith and does not admit wrongdoing.”

In addition to it taking a $2.04 billion charge in the fourth quarter to resolve the claims of it cheating emissions controls, Ram will recalibrate the software of 2013-2019 model year vehicles to bring them in line with emissions regulations.