Environmental Fraud

January 10, 2024

In the largest civil penalty ever for a Clean Air Act case, engine manufacturer Cummins, Inc. of Indiana has agreed to pay $1.675 billion in penalties to the EPA, $164 million in penalties and $175 million in mitigation efforts to the California Air Resources Board (CARB), and $33 million in penalties to the California Attorney General’s Office to resolve charges of deliberately circumventing vehicle emissions control equipment in their engines.  Cummins allegedly installed illegal defeat devices in the engines of more than 600,000 pickup trucks nationwide.  Now, the company must recall those engines and update the control software within three years, and fully offset the excess NOx emissions from those trucks by funding certain mitigation efforts.  DOJ; CA AG

December 22, 2023

Cummins Inc. has agreed in principle to pay $1.675 billion—the largest ever Clear Air Act violation penalty—for installing defeat devices or undisclosed auxiliary emissions control devices on 960,000 RAM engines from 2014 through 2023. Defeat devices enable users to bypass, defeat, or render inoperative the onboard emissions controls required by the Clean Air Act, producing thousand of tons of excess omissions of nitrogen oxides, to which exposure over time can cause respiratory issues. DOJ

November 21, 2023

Ingredion Incorporated, which makes plant-based ingredients, has settled with the EPA, Indiana Department of Environmental Management, and the Indiana Attorney General’s Office for violating the Clean Air Act at its corn wet milling facility.  Ingredion allegedly failed to operate and monitor certain equipment, resulting in its facility emitting particulate matter above allowable limits.  Under the settlement, Ingredion will pay a civil penalty of over $1.1 million and implement measures costing almost $7 million to help reduce and offset their emissions.  DOJ

November 20, 2023

Coffeyville Resources Refining & Marketing LLC (CRRM) and its affiliated companies have agreed to pay more than $23 million in penalties to the United States and State of Kansas for violating the provisions of a 2012 consent decree as well as the Clean Air Act.  According to the DOJ and EPA, CRRM’s petroleum refinery emitted over 2,300 excess tons of sulfur dioxide (SO2) between 2015 and 2017, which violated a 2012 consent decree to properly monitor such emissions.  In addition to the penalties, CRRM must spend at least $1 million to benefit the public and environment, and implement measures costing up to $9 million to prevent future violations.  DOJ

September 29, 2023

SMC Systems Inc., d/b/a Skyetec, has agreed to pay $2.35 million to resolve allegations of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989.  Over a seven year period, Skyetec allegedly made false statements to the EPA regarding the results of inspections for the EPA’s Energy Star Home Certification Program, which verifies the presence and installation quality of a home's insulation.  DOJ

September 8, 2023

Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals have agreed to pay $49 million to settle claims of unlawfully disposing hazardous medical waste and protected health information for 16 different facilities.  The misconduct violated California’s Hazardous Waste Control Law, Medical Waste Management Act, Confidentiality of Medical Information Act, Customer Records Law, Unfair Competition Law, and the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA).  Under the settlement, Kaiser must also retain an independent third-party auditor to ensure Kaiser’s compliance with applicable laws.  CA AG

August 31, 2023

Tadano Ltd., a Japanese company, and its subsidiaries have agreed to pay $40 million to resolve allegations of violating the Clean Air Act in connection with the sale and importation of nearly 300 diesel-engined cranes into the U.S. that failed to comply with federal emission standards.  In addition to the civil penalties, Tadano has agreed to contribute $3.2 million toward mitigating environmental harms caused by its cranes, including by replacing a diesel-engined tugboat with a cleaner tugboat near its factory in Texas.  DOJ

August 22, 2023

Zeaborn Ship Management (Singapore) PTE. LTD., Chief Engineer Constancio Estuye, and Captain Alexander Parreno have pleaded guilty and agreed to pay $2 million in civil penalties for dumping over 7,500 gallons of unprocessed oily bilge water overboard their ship, the Star Maia, in 2022, in violation of the Act to Prevent Pollution from Ships.  Additionally, the defendants admitted that during the same time period, they also burned garbage in barrels on board the ship’s deck and threw the burned barrels into the sea.  DOJ

August 8, 2023

Mewbourne Oil Company has agreed to pay a $5.5 million penalty and spend at least $4.6 million on environmental projects to settle claims of violating the Clean Air Act and New Mexico state law.  A complaint filed on behalf of the Environmental Protection Agency and New Mexico Environment Department alleged the company failed to obtain required state and federal permits, capture and control air emissions, and comply with inspection, monitoring, and recordkeeping requirements from at least 2019 to 2022.  As a result, more than 11,000 tons of pollutants, including more than 9,900 tons of volatile organic compounds (VOCs) and 1,300 tons of methane, were released into the air each year.  DOJ