[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