California, Volvo reach settlement over emissions in heavy-duty vehicles

SACRAMENTO, Calif. (CN) — A California air regulatory agency announced a settlement Monday with Volvo Group North America over emissions violations, with the vehicle manufacturer agreeing to pay almost $197 million to resolve the civil action.

The enforcement focused on some 10,000 diesel engines, for model years 2010 through 2016, for heavy-duty trucks used in California. The engines used auxiliary emission control devices, which the California Air Resources Board said weren’t properly disclosed during the emissions certification process.

That failure to completely and accurately report the devices violated the state’s heavy-duty engine regulations, the board said.

“This case underscores why CARB’s compliance testing and strong enforcement are essential to protecting the state’s air quality and public health,” said Lauren Sanchez, chair of the board, in a statement. “Our responsibility goes beyond adopting regulations — we are committed to upholding them by identifying violations and holding companies accountable for meeting emissions standards.”

The Swedish engine and vehicle manufacturer cooperated throughout the board’s investigation. It agreed to issue a recall repair, which will apply to model years 2014 through 2016 diesel engines, as well as an extended warranty.

Volvo in a statement said an internal review found no evidence anyone acted in bad faith. Additionally, the settlement includes no admission of liability.

“The Volvo Group has always intended to comply with relevant regulations and conducts rigorous testing to ensure that its engines are compliant with all emissions requirements,” the manufacturer said. “There are no performance or safety issues associated with the engines in question.”

Of the almost $197 million settlement, California will get $17.5 million in penalties and costs. Another $71 million will go toward mitigating air-quality harms created by the violation. The remaining $108 million is earmarked for emission-reduction projects in the state.

The emission-reduction projects that are part of the settlement will work toward reducing air pollution and its related health impacts.

According to the Air Resources Board, the engines emitted smog-forming nitrogen oxides over the state emission standard. Those nitrogen oxides are a significant pollutant and lead to the formation of ozone and particulate matter, which are known aggravators of health issues like asthma and cardio-pulmonary disease.

The board said almost 18 million Californians live in regions with unhealthy air quality. Those unhealthy air levels lead to serious public health costs.

A fix for the engines affected is in the works.

Volvo is working on a software repair for the auxiliary emission control device problems for model years 2014 through 2016. Once complete, it will submit a recall application to the Air Resources Board. If approval is granted, Volvo will notify impacted vehicle owners. That notification is expected next year.

Developing the software fix is complex, it added, as each variation needs specific calibration, testing and verification.

The recall isn’t mandatory and isn’t needed to pass a Clean Truck Check, the board said.

Air quality is a subject that falls under strict scrutiny in California, as the state has some of the worst pollution in the nation. Los Angeles and the Central Valley are some of the worst offenders.

California, for decades, obtained waivers that allowed it to set its own clean air standards that stood apart from federal oversight. That was because the state had expertise in controlling vehicle emissions amid its air pollution challenges.

However, that oversight came under fire under the Trump administration, which has pushed back on giving California that authority.