Regulations

$11M offered for commercial truck fuel economy technologies

The U.S. Department of Energy is making $11 million in available funding to support development and demonstration of innovative alternative technologies for medium- and heavy-duty vehicles, designed to help reduce U.S. reliance on gasoline, diesel, and oil imports.

The funding opportunity includes two areas of interest:

• Medium- and heavy-duty vehicle powertrain electrification – Research, development, and demonstration of electric-drive technologies for medium- and heavy-duty vehicles that significantly reduce fuel consumption.
• Heavy-duty vehicle dual fuel fleet demonstration – Demonstrate the performance and reliability of commercially-available dual fuel heavy-duty vehicles equipped with engines and emissions controls capable of using a mixture of diesel fuel and gaseous fuels, such as natural gas and propane; or natural gas- derived fuels such as dimethyl ether.

Data collected from these activities will be analyzed by Energy Department National Laboratories and used to identify technology barriers and inform future efforts. www.energy.gov

For details on applying for Energy Department funding, visit https://goo.gl/HiaETk.

Regulators allege massive Clean Air Act violations for Volkswagen diesel cars

Regulators in Washington and California have accused Volkswagen of installing defeat devices in 482,000 diesel cars from 2009 through 2015, raising the possibility of $18.1 billion in penalties – $37,500 for each violation of the Clear Air Act.

In several previous cases in which regulators accused automotive and trucking companies of using technology to circumvent regulations, the final fines were significantly lower than the maximum.

“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” says Cynthia Giles, assistant administrator for the Office of Enforcement and Compliance Assurance. “Working with the California Air Resources Board, EPA is committed to making sure that all automakers play by the same rules.”

The EPA alleges that VW used sophisticated computer algorithms to sense when the cars were undergoing emissions testing – enabling emissions controls that weren’t active during normal driving conditions. Regulators say the scheme allowed VW diesels to emit 10x to 40x more nitrogen oxide (NOx) than permitted.

Volkswagen officials have pledged to cooperate with regulators and perform an internal investigation.

Then Volkswagen CEO Martin Winterkorn, before he resigned in the midst of the scandal, said. “I personally am deeply sorry that we have broken the trust of our customers and the public… The trust of our customers and the public is and continues to be our most important asset. We at Volkswagen will do everything that must be done in order to re-establish the trust that so many people have placed in us, and we will do everything necessary in order to reverse the damage this has caused.”

The Volkswagen case is the first major accusation of the use of defeat devices in nearly two decades. During the mid-1990s, the EPA settled defeat-device allegation cases with General Motors, Ford, Honda, and the bulk of the diesel-engine truck industry. In all of those cases, the civil fines were a tiny fraction of the potential maximum penalty. www.epa.gov; www.volkswagenag.com; www.gm.com; www.honda.com; www.cat.com; www.ford.com

EPA defeat devices cases

1995: General Motors
470,000 Cadillac vehicles with 4.9L engines equipped with computer controls changed the air-fuel mixture, creating more carbon monoxide (CO) than allowed.

GM response – Company officials at the time said, “This is a matter of interpretation of current regulations regarding the complex issue of off-cycle emissions.”

Costs – $11 million fine, $34 million in remediation/retrofit projects
 

1998: Honda
1.6 million cars and minivans use a diagnostic computer that disabled some monitoring functions if the engine misfired. Regulators alleged that no check-engine warning encouraged drivers to use potentially polluting vehicles.

Honda response – “Regrettably, the company interpreted these regulations differently than the EPA and California Air Resources Board,” said Bill Willen, then American Honda’s managing counsel.

Costs – $17.1 million in fines and environmental projects, $250 million in extended warranties and services
 

1998: Ford
60,000 Econoline vans used computer engine controls to boost fuel economy in highway driving in a way that emitted more NOx than allowed.

Ford response – Officials said they were unaware that the computer control changes had such a big impact on emissions and immediately stopped van sales.

Costs – $2.5 million in fines, $2.5 million in NOx offset credits, $1.5 million in future remediation project, $1.3 million to fix the emissions systems in existing vans
 

1998: Diesel truck industry
1.3 million diesel truck engines made by Caterpillar, Cummins, Detroit Diesel, Mack, Navistar, Renault, and Volvo – 95% of the diesel engine industry – used computer controls that boosted fuel economy and NOx emissions, allowing trucks to pass tests but pollute in real-world conditions.

Engine makers’ response – Sid Banwart, then Caterpillar’s vice president, said, “Our engines have always been in compliance with the Clean Air Act and EPA emissions regulations, and the EPA was aware of and supported the technologies we use to control emissions.”

Costs – $83.4 million in fines, $850 million in development costs for cleaner engines, $109.5 million in special projects