Notice of Lodging of Proposed Consent Decree Under the Clean Air Act, 1230-1231 [2019-00662]

Download as PDF 1230 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices Dated: December 14, 2018. Respectfully submitted, lllllllllllllllllllll Matthew D. Siegel * Trial Attorney Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, Suite 4000, Washington, DC 20530, Phone: 202–598–8303, Email: Matthew.Siegel@usdoj.gov. * Attorney of Record [FR Doc. 2019–00556 Filed 1–31–19; 8:45 am] BILLING CODE 4410–11–P 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, VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 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 §§ 43016, 43017, 43151, 43152, 43153, 43154, 43205, 43211, and 43212; 13 C.C.R. §§ 1961, 1961.2, 1965, 1968.2, and 2037, and the 40 CFR sections incorporated therein by reference; and California Business and Professions Code §§ 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, PO 00000 Frm 00184 Fmt 4703 Sfmt 4703 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 E:\FR\FM\01FEN1.SGM 01FEN1 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices 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 highefficiency 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: To submit comments: Send them to: By email ....... pubcomment-ees.enrd@ usdoj.gov. Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, DC 20044–7611. By mail ......... 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 VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 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 DEPARTMENT OF JUSTICE Notice of Lodging of Proposed Consent Decree Under the Clean Water Act On January 8, 2019, the Department of Justice lodged a proposed Consent Decree with the United States District Court for the Eastern District of Louisiana in the lawsuit entitled United States of America v. Shell Offshore Inc., Civil Action No. 2:19-cv-122. The Complaint in this Clean Water Act case was filed on behalf of the United States Coast Guard against Shell Offshore Inc. concurrently with the lodging of the proposed Consent Decree. The Complaint alleges that Shell is civilly liable for violation of Section 311 of the Clean Water Act (‘‘CWA’’), 33 U.S.C. 1321. The Complaint seeks civil penalties and injunctive relief for the discharge of harmful quantities of crude oil into the Gulf of Mexico. In the Complaint, the United States alleges that Shell is liable under the Clean Water Act for the crude oil spill that began on the night of May 11, 2016, at Shell’s Green Canyon Block 248 offshore production facility located 97 miles offshore in the Gulf of Mexico. The Complaint alleges the spill began when a 6-inch-diamater transfer pipeline at the sea floor cracked due to stress on a joint in the line. Shell caused this added stress by placing sediment and debris from other operations on top of the pipe, which caused the pipe to PO 00000 Frm 00185 Fmt 4703 Sfmt 4703 1231 settle into the sea bed. As a result of the pipeline crack, approximately 1,900 barrels (approximately 80,000 gallons) of crude oil flowed into the ocean. Under the Consent Decree, Shell is required to pay $2.2 million in civil penalties. In addition, Shell commits to improve its leak-detection training program across its operations in the Gulf of Mexico. Since the spill, Shell has provided enhanced training to its control room operators and subsea supervisors. Shell will now develop and conduct refresher training that focuses on leak detection and includes simulator-based exercises that incorporate conditions experienced during the May 2016 spill. The penalties and remedial measures required by the Consent Decree are in addition to the costs the company has already incurred to clean up the oil spill and compensate the public for injuries to natural resources. In a separate settlement filed in July 2018 and approved by the court in August, Shell agreed to pay a total of $3.871 million to the United States and Louisiana for natural resource restoration projects and to reimburse all of the state and federal trustees’ remaining unpaid past assessment costs related to the spill. The publication of this notice opens a period for public comment on the proposed Consent Decree. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, and should refer to United States of America v. Shell Offshore Inc., D.J. Ref. No. 90–5– 1–1–11920/1. All comments must be submitted no later than thirty (30) days after the publication date of this notice. Comments may be submitted by either email or by mail: To submit comments: Send them to: By email ....... pubcomment-ees.enrd@ usdoj.gov. Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, DC 20044–7611. By mail ......... During the public comment period, the proposed 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 proposed 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. Please enclose a check or money order for $6.00 (25 cents per page reproduction E:\FR\FM\01FEN1.SGM 01FEN1

Agencies

[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:

------------------------------------------------------------------------
         To submit comments:                     Send them to:
------------------------------------------------------------------------
By email............................  pubcomment-ees.enrd@usdoj.gov.
By mail.............................  Assistant Attorney General, U.S.
                                       DOJ--ENRD, P.O. Box 7611,
                                       Washington, DC 20044-7611.
------------------------------------------------------------------------

    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