The U.S engine maker, Cummins Inc., is facing increased scrutiny over accusations of cheating on emissions tests. The company is reported to be issued with the largest-ever penalty under the Clean Air Act of any company in the U.S.
The Clean Air Act is a federal law enacted in 1970 with the aim of protecting public health and welfare from air pollution. The huge penalty amount of more than $1 billion has been imposed following the investigation into the company’s violations of the law. The investigation was conducted by the Justice Department, which alleged that Cummins had telephoned, bribed, and deceived officials and agencies to bypass emissions tests and also funded the design of software that made vehicles appear to meet the clean air requirements.
As part of the settlement, Cummins is required to invest $2.5 billion into developing clean diesel tech and also to pay a civil penalty of $722 million. It will also have to spend $68 million on projects that directly benefit local and regional environment and clean air.
“This is a historic settlement that ensures Cummins will invest the largest sum ever seen in the development of clean diesel technology,” said the Justice Department’s assistant attorney general Jeffrey Wood.
Cummins has said that it has cooperated with the investigation and is “committed” to a “safer, cleaner future”. This case is an example that U.S companies cannot think they are unscathed when it comes to breaking aspects of the Clean Air Act. Other companies should take note and obey the law to avoid being hit with incredibly large penalties.