[Federal Register Volume 84, Number 22 (Friday, February 1, 2019)]
[Notices]
[Pages 1230-1231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00662]


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DEPARTMENT OF JUSTICE


Notice of Lodging of Proposed Consent Decree Under the Clean Air 
Act

    On January 10, 2019, the Department of Justice lodged a proposed 
Consent Decree with the United States District Court for the Northern 
District of California in the lawsuit entitled In re: Chrysler-Dodge-
Jeep ``Ecodiesel'' Marketing, Sales Practices, and Products Liability 
Litigation, Case No. 3:17-md-2777 EMC (JSC), resolving civil Clean Air 
Act claims and various California claims (including under the 
California Health and Safety Code) against Fiat Chrysler Automobiles, 
N.V., FCA US, LLC and others (``Fiat Chrysler''), concerning 
noncompliant 3.0 liter ``EcoDiesel'' vehicles (``Subject Vehicles''). 
In addition, on the same date, the private Plaintiffs' Steering 
Committee filed a proposed Consumer Class Action Settlement Agreement 
and Release (``Class Action Settlement'') with Fiat Chrysler with 
respect to the same EcoDiesel vehicles, and Customs and Border 
Protection entered into an administrative Settlement Agreement with 
Fiat Chrysler based on allegations of illegal importation of a portion 
of these noncompliant diesel vehicles (``CBP Agreement''). In addition 
to its joint settlement with the United States, on the same day, 
California entered into two additional settlements with the defendants 
concerning the Subject Vehicles. The First California Partial Consent 
Decree resolves California's claim for mitigation (and is discussed 
further below), and the Second California Partial Consent Decree 
resolves defendants' alleged violation of California consumer 
protection laws related to the Subject Vehicles. These five settlements 
resolve separate claims but offer coordinated relief.
    On May 23, 2017, the United States, on behalf of the Environmental 
Protection Agency (``EPA'') filed a complaint against Fiat Chrysler 
Automobiles, N.V., FCA US LLC, V.M. Motori S.p.A., and V.M. North 
America, Inc. alleging that the defendants violated Sections 203(a)(1), 
(2), (3)(A), and (3)(B) of the Clean Air Act--42 U.S.C. 7522(a)(1), 
(2), (3)(A), and (3)(B)--with regard to approximately 104,000 model 
year 2014 to 2016 Jeep Cherokee and Ram 1500 vehicles containing 3.0 
liter EcoDiesel engines. The United States' complaint alleges, among 
other things, that each Subject Vehicle contains computer software 
functions that are undisclosed Auxiliary Emission Control Devices 
(``AECDs'') and prohibited defeat devices that cause the emissions 
control system of those vehicles to perform differently during normal 
vehicle operation and use than during emissions testing. The complaint 
alleges that the defeat devices cause the vehicles, during normal 
vehicle operation and use, to emit excess oxides of nitrogen 
(``NOX''). The complaint seeks, among other things, 
injunctive relief to remedy the violations, including mitigation of 
excess NOX emissions, and civil penalties.
    On January 9, 2019, the People of the State of California, by and 
through the California Air Resources Board, and Xavier Becerra, 
Attorney General of the State of California (collectively, 
``California''), filed a complaint against the defendants alleging 
that, in connection with the certification, marketing, distribution, 
and sale of approximately 14,000 Subject Vehicles in California, the 
defendants violated Section 304(a)(1) of the Clean Air Act, 42 U.S.C. 
7604(a)(1); California Health and Safety Code Sec. Sec.  43016, 43017, 
43151, 43152, 43153, 43154, 43205, 43211, and 43212; 13 C.C.R. 
Sec. Sec.  1961, 1961.2, 1965, 1968.2, and 2037, and the 40 CFR 
sections incorporated therein by reference; and California Business and 
Professions Code Sec. Sec.  17200 et seq., 17500 et seq., and 17580.5. 
California's complaint alleges that each Subject Vehicle contains, as 
part of the electronic control module, certain software functions and 
calibrations that cause the emission control system of those vehicles 
to perform differently during normal vehicle operation and use than 
during emissions testing. California's complaint alleges that these 
software functions and calibrations are undisclosed AECDs in violation 
of California and federal law, and that they are also prohibited defeat 
devices. California's complaint alleges that the defeat devices and 
undisclosed AECDs cause the Subject Vehicles to emit NOX in 
excess of CARB-compliant levels. California's complaint also alleges 
that defendants' actions violated California consumer protection laws. 
California's complaint seeks, among other things, civil penalties, 
injunctive relief to remedy the violations (including mitigation of 
excess NOX emissions), costs, and other equitable relief.
    The lodged Consent Decree is entered into between the United 
States, California, and the defendants (Fiat Chrysler Automobiles, 
N.V., FCA US LLC, V.M. Motori S.p.A., and V.M. North America, Inc.). 
The Decree provides a remedy for the vehicles on the road by requiring 
Fiat Chrysler to offer all Eligible Owners and Lessees of Eligible 
Vehicles (all as defined in the Decree) the Approved Emissions 
Modification and applicable warranties (as defined and described in the 
Decree). Fiat Chrysler must install the Approved Emissions Modification 
on at least 85% of the Subject Vehicles (as further described in the 
Decree) by no later than two years after the Decree is entered by the 
Court. If it fails to do so, Fiat Chrysler must make a payment to the 
United States of $5.5 million for each 1% that Fiat Chrysler falls 
short of the 85% rate. Fiat Chrysler must also achieve a separate 85% 
recall rate for vehicles in California, and must pay $825,000 to 
California for each 1% that it falls short of this target. See Decree 
Paragraph 41. For each Subject Vehicle that receives the Approved 
Emissions Modification, Fiat Chrysler must provide Eligible Owners and 
Lessees with an Extended Warranty. See Decree Paragraph 45. The 
Extended Warranty covers all components, parts, and associated labor 
described in Appendix E of the Decree. Fiat Chrysler must mail notice 
of the recall to all known Eligible Owners and Eligible Lessees. Fiat 
Chrysler may provide this notice through a Court-approved Class Action 
Settlement Notice or through an alternative means approved by the 
United States and California. See Decree Paragraph 43.
    There is no end date for the emissions modification recall. Fiat 
Chrysler must offer the Approved Emissions Modification to Eligible 
Owners and Eligible Lessees for eighteen years after the Court enters 
the Decree (the ``Effective Date''); following the eighteenth 
anniversary of the Effective Date, Fiat Chrysler must make reasonable 
efforts to ensure that the Approved Emissions Modification remains 
available. See Decree Paragraph 39.
    In addition, the Decree requires Fiat Chrysler to perform a 
mitigation program, which is estimated to mitigate the lifetime excess 
tons of NOX caused by Defendants' violations in all 50 
states, except California, by implementing a program to improve the 
efficiency of 200,000 aftermarket

[[Page 1231]]

catalytic converters that will be installed on light-duty gasoline 
motor vehicles nationwide (except in California, New York, and Maine, 
which already require the use of high-efficiency aftermarket catalytic 
converters). See Decree Section VI.D (Mitigation Program). Fiat 
Chrysler has entered into a separate agreement with California, which 
is estimated to mitigate the lifetime excess NOX emissions 
from the Subject Vehicles in California--this program is set forth in a 
separate proposed consent decree between California and Fiat Chrysler.
    Fiat Chrysler must also implement updated and improved corporate 
compliance and governance programs. See Decree Section VI.C (Corporate 
Compliance Requirements).
    Finally, Fiat Chrysler must pay a civil penalty of $305 million to 
the United States and the State of California.
    The publication of this notice opens a period for public comment on 
the Consent Decree. Comments on the Consent Decree (but not concerning 
the CBP Agreement, Class Action Settlement or California-only 
settlements) should be addressed to the Assistant Attorney General, 
Environment and Natural Resources Division, and should refer to In re: 
Chrysler-Dodge-Jeep ``Ecodiesel'' Marketing, Sales Practices, and 
Products Liability Litigation, Case No. 3:17-md-2777 EMC (JSC), D.J. 
Ref. No. 90-5-2-1-11607.
    All comments must be submitted no later than thirty (30) days after 
the publication date of this notice. Comments may be submitted either 
by email or by mail:

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         To submit comments:                     Send them to:
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By email............................  [email protected].
By mail.............................  Assistant Attorney General, U.S.
                                       DOJ--ENRD, P.O. Box 7611,
                                       Washington, DC 20044-7611.
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    During the public comment period, the Consent Decree may be 
examined and downloaded at this Justice Department website: https://www.justice.gov/enrd/consent-decrees. We will provide a paper copy of 
the Consent Decree upon written request and payment of reproduction 
costs. Please mail your request and payment to: Consent Decree Library, 
U.S. DOJ--ENRD, P.O. Box 7611, Washington, DC 20044-7611.
    For the entire Consent Decree and its appendices, please enclose a 
check or money order for $56.00 (25 cents per page reproduction cost) 
payable to the United States Treasury. For a copy of certain portions 
of the Consent Decree, please designate which portions are requested, 
and provide the appropriate amount of money. For the Consent Decree 
without the exhibits and signature pages, the cost is $36.25. For 
Appendix A (Adjustment Factors), the cost is $0.50. For Appendix B (CVN 
and CALID for the Final Carryback Configuration), the cost is $0.75. 
For Appendix C (documents related to the MY 2014 Field Fix), the cost 
is $11.50. For Appendix D (Approved Emissions Modification Disclosure), 
the cost is $0.50. For Appendix E (Extended Warranty description), the 
cost is $0.75. For Appendix F, the cost is $4.00 (list of Defendants 
affiliates, parents, and subsidiaries for purposes of the Effect of 
Settlement and Reservations of Rights).

Randall M. Stone,
Acting Assistant Section Chief, Environmental Enforcement Section, 
Environment and Natural Resources Division.
[FR Doc. 2019-00662 Filed 1-31-19; 8:45 am]
 BILLING CODE 4410-15-P