fixing the foul play: mitigating the environmental and public health damage caused by the volkswagen...
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Fixing the Foul PlayMitigating the Environmental and Public Health Damage Cause
by the Volkswagen Emissions Scandal
By Greg Dotson, Alison Cassady, and Myriam Alexander-Kearns March 2016
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Fixing the Foul PlayMitigating the Environmental and Public Health
Damage Caused by the Volkswagen Emissions Scandal
By Greg Dotson, Alison Cassady, and Myriam Alexander-Kearns March 2016
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1 Introduction and summary
4 The health and environmental effects
of Volkswagen’s actions
6 The EPA’s options for responding to
the Volkswagen violations
6 Force a recall of defective Volkswagen vehicles
8 Implement pollution mitigation measures
8 Assess significant civil penalties
10 Develop a Supplemental Environmental Project
12 Recommendations
13 Require Volkswagen to mitigate its environmental harm
14 Assess civil penalties that reflect the seriousness of the violation
15 Develop a SEP to expedite the deployment of electric vehicles
18 Conclusion
19 About the authors
20 Endnotes
Contents
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Introduction and summary
Sae and ederal agencies coninue o invesigae Volkswagen’s alleged effors
o chea on emissions ess in he Unied Saes. As he invesigaions come o a
close, he U.S. Environmenal Proecion Agency, or EPA, should consider how
o resolve his scandal in a way ha boh miigaes he public healh and environ-
menal damage caused by Volkswagen’s acions and builds momenum oward a
cleaner ransporaion secor.
On January 4, 2016, he Deparmen o Jusice, or DOJ, on behal o he EPA, fileda civil complain agains Volkswagen and wo o is subsidiary companies, Audi
and Porsche, in ederal cour. In he complain, he DOJ alleges ha he company
insalled sofware in cerain ligh-duy diesel passenger vehicles ha allows hose
vehicles o circumven emissions esing, violaing he Clean Air Ac. Te DOJ
saes ha Volkswagen insalled his device in approximaely 499,000 2.0-lier and
85,000 3.0-lier vehicles.1 Te Caliornia Air esources Board, or CAB, which firs
sared examining hese allegaions in 2014, also is pursuing enorcemen acion.2
Te deea device in quesion deecs when he vehicle is undergoing emissions
esing. During his esing, he vehicle acivaes ull emissions conrols or pollu-
ion rom nirogen oxides, or NOx. During normal driving condiions, however,
he vehicle emis more nirogen oxides han allowed by law. By using his sofware,
Volkswagen allegedly was able o claim ha is diesel vehicles me ough air pollu-
ion sandards while also delivering high uel economy o is cusomers.
Te EPA esimaes ha 2.0-lier diesel vehicles wih his sofware emited up o
40 imes he legal amoun o NOx polluion ino he air, while 3.0-lier diesel
vehicles emited up o nine imes he allowed levels.3 Nirogen oxides are a key
componen o soo and smog, exposure o which can rigger ashma atacks andcause premaure deah.
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In parallel wih his ederal cour acion, he EPA and CAB have asked
Volkswagen o develop a plan o rerofi he vehicles ha have deea devices
so ha hey comply wih all air qualiy sandards. Te agencies will require
Volkswagen o recall and repair he deecive vehicles, assuming he company can
develop a remedial plan ha he agencies approve.4 Te iming and scope o any
such recall remains uncerain, as he company and agencies have no ye agreedon a plan ha saisfies regulaors’ concerns abou vehicle perormance, saey,
and emissions compliance.5 A op CAB official said ha i “may no be pos-
sible” o reurn he cars o heir “cerified configuraion” and has publicly raised
he possibiliy o allowing he vehicles o say on he road.6 On March 24, 2016,
Volkswagen missed a cour deadline o provide a plan o bring he cars ino com-
pliance. Te company now has unil April 21 o deliver a soluion.
In addiion o coninuing o pursue a recall plan, he EPA and he DOJ will
spend he coming weeks and monhs working o deermine how o penalize
Volkswagen or he company’s alleged violaions and, in some way, make upor he damage ha he exra emissions rom he deecive vehicles imposed on
human healh and he environmen.
I he EPA’s allegaions are rue, hen Volkswagen has been flagranly violaing he
law or years, derauding consumers, harming public healh, and degrading he
environmen. Jus as imporanly, he company appears o have aken policymak-
ers and he public down a alse road by promising ha diesel vehicles could mee
he muliple objecives necessary or a modern vehicle flee, including low ailpipe
emissions and beter uel economy.
Te Cener or American Progress recommends ha he EPA and he DOJ pursue
a hree-pronged approach o resolve hese alleged violaions:
• equire Volkswagen o miigae or offse he NOx emissions atribuable o is
pas or ongoing violaions by replacing or rerofiting diesel engines in publicly
operaed vehicle flees wih cleaner echnology. Te EPA ofen includes miiga-
ion acions as par o final setlemens wih companies regarding violaions o
he Clean Air Ac, Clean Waer Ac, and oher saues.
• Assess large civil penalies or hese violaions in order o dissuade oher car-
makers rom violaing he law in he uure. Te Clean Air Ac ses a maximum
penaly o $37,500 or each vehicle wih he illegal sofware. Consequenly,
Volkswagen could ace more han $18 billion in moneary penalies.
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• Work wih Volkswagen o develop a significan Supplemenal Environmenal
Projec, or SEP, o clean up he U.S. ransporaion secor. Volkswagen would
be moivaed o work wih he EPA o creae a SEP, which could offse a porion
o he civil penalies while achieving concree polluion reducions. Te SEP
should direc a subsanial amoun o unds, perhaps calculaed on a per-car
basis, o creae a und or sae and local governmens, as well as privae-secoreniies, o implemen projecs o reduce polluion rom on-road vehicles and
increase deploymen o zero-emission elecric vehicles.
By aking his approach, he EPA could deliver NOx polluion reducions ha
exceed he excess emissions released by he deecive Volkswagen vehicles while
helping redirec and accelerae he naion’s ransiion o a cleaner ransporaion
secor. By ensuring ha he penalies, miigaion acion, and SEP oal in he bil-
lions o dollars, his approach also would deer oher auomakers rom violaing
he Clean Air Ac in he uure.
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The health and environmental
effects of Volkswagen’s actions
By allegedly claiming ha vehicles used clean diesel echnology, Volkswagen sold
millions o deecive cars under he premise o offering a less-polluing alernaive
o gasoline wihou compromising perormance or driving experience.7
In realiy, many o hese cars were releasing up o 40 imes more polluion han
he Clean Air Ac emissions sandards allow.8 Domesically, his means ha he
vehicles in quesion emited an exra 10,392 meric ons o 41,571 meric ons
o nirogen oxides each year.9 Assuming ha he affeced models inernaion-ally incur similar mileage as cars driven in he Unied Saes, hese cars released
beween 237,161 meric ons and 948,691 meric ons o previously unknown
NOx emissions worldwide each year.10
Te Environmenal Proecion Agency has been limiing NOx emissions under he
Clean Air Ac since he 1970s by seting sandards or nirogen dioxide, or NO2, as a
represenaive or all compounds in he NOx amily, since i is he mos common. 11
Exposure o NOx is harmul o human healh. Sudies show ha individuals
exposed o NOx are a risk o respiraory issues, including ashma atacks.12 NOx
also is a precursor o oher dangerous air polluans. In he presence o sunligh,
NOx and volaile organic compounds reac chemically o orm ozone. Exposure
o ozone can cause shorness o breah and aggravae exising respiraory illnesses,
including ashma.13 In addiion, NOx reacs wih ammonia and moisure o orm
fine paricles, which when inhaled lodge in he lungs and can rigger ashma
atacks and cause premaure deah in people wih hear and lung disease.14 Even
generally healhy people wihou chronic lung condiions experience inflamma-
ion o he airways when exposed o hese polluans. Children and he elderly are
he mos vulnerable.15
Emissions rom he road have negaive healh effecs on people all over he coun-
ryno jus drivers. EPA sudies have shown ha concenraions o NO2 are
higher near roadways, wih increases o 30 percen o 100 percen compared wih
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concenraions away rom roadways.16 Sixeen percen o housing unis in he Unied
Saes si wihin 300 ee o a major highway, airpor, or railroad, so approximaely
48 million Americans reside in areas wih hese higher concenraions o NO2.17
esearchers rom he Massachusets Insiue o echnology and Harvard have
evaluaed he public healh effecs o he affeced Volkswagen cars on public healhin he Unied Saes.18 Beween 2008 and 2015, hey esimae ha all affeced
Volkswagen vehicles in he Unied Saes raveled 40.5 billion kilomeers in oal,
resuling in a release o 36.7 million kilograms o excess NOx emissions.19 Te
researchers conclude ha exposure o his excess NOx polluion over his seven-
year period will shoren he lives o 59 individuals, cosing an esimaed $450
million in moraliy coss, and will resul in more hospial admissions or cardiac
and respiraory condiions.20 Te researchers also examined he poenial healh
effec o allowing all o he deecive vehicles o say on he road wihou any oher
program o miigae NOx emissions rom he ransporaion secor. Under hese
circumsances, he sudy esimaes ha he excess emissions rom he Volkswagen vehicles could shoren he lives o an addiional 140 people.21
Alhough he healh effecs are he mos urgen concern, NOx emissions also harm
he naural environmen. Nirogen emissions conribue o algal blooms in waer
bodies and acid rain, boh o which hreaen he healh and viabiliy o ecosysems.22
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The EPA’s options for responding
to the Volkswagen violations
As he agencies responsible or implemening and enorcing he Clean Air Ac, he
Environmenal Proecion Agency and he Deparmen o Jusice are asked wih
responding o Volkswagen’s violaions o he ac in such a way ha dissuades oher
companies rom breaking he law and, o he maximum exen possible, miigaes
he harm caused by he excess polluion released by he auly vehicles. Te ederal
governmen has a number o ools a is disposal o achieve his oucome, includ-
ing orcing a recall o he deecive Volkswagen vehicles; requiring he company
o implemen a polluion miigaion plan; assessing significan civil penalies; and working wih Volkswagen o develop a Supplemenal Environmenal Projec o
achieve addiional emissions reducions.
Force a recall of defective Volkswagen vehicles
From he beginning, he EPA and he Caliornia Air esources Board have been
working wih Volkswagen o ideniy a way o rerofi he deecive cars o ensure
ha hey comply wih air polluion sandards.23
Te iming and scope o any such recall remain uncerain. When announcing
he civil complain, he EPA also saed ha ongoing recall discussions wih
Volkswagen have no ye produced “an accepable way orward.”24 o dae, an
accepable recall plan has no been idenified or eiher 2.0-lier vehicles or 3.0-
lier vehicles. On January 12, 2016, CAB rejeced Volkswagen’s proposed recall
plan or he 2.0-lier vehicles sold in Caliornia beween 2009 and 2015 ha
allegedly violaed sae clean air sandards, arguing ha i lacked sufficien deail
in many areas. On February 2, 2016, Volkswagen submited a recall plan or he
3.0-lier vehicles sold in Caliornia, bu no evaluaion o he accepabiliy o hisplan has ye been rendered.25 On March 24, Volkswagen missed a cour-ordered
deadline o deliver a plan o bring he deecive cars ino compliance wih emis-
sions sandards. Te judge gave he company an exension unil April 21, 2016,
afer which poin he mater could go o rial i no soluion has been idenified.26
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A a sae legislaive hearing on he Volkswagen scandal in March 2016, odd
Sax, division chie o CAB’s enorcemen division, warned ha i “may no be
possible” o reurn he cars o heir “cerified configuraion” and publicly raised
he possibiliy o allowing he vehicles o say on he road.27 He also said ha he
agency, working wih he EPA, will have o “decide wha he bes approach is o
dealing wih hese vehicles, and one o he opions poenially would be o accepsomehing less han a ull fix.”28
A recall would be a mulibillion dollar venure or Volkswagen. Te company has
esimaed he cos o recalling he vehicles as being a leas $9.5 billion on op
o fines and penalies.29 Te agencies will coninue o work wih Volkswagen o
ideniy a poenial recall plan ha saisfies regulaors’ concerns abou vehicle
perormance, saey, and emissions.30
In addiion o he expense, a recall poses significan logisical challenges ha may
reduce is effeciveness a achieving emissions reducions and ensuring compli-ance on a imely basis. Some expers sugges ha rerofiting will involve insalling
a muligallon urea ank ha mixes urea ino exhaus o render he nirogen oxides
harmless. In addiion, more han 300,000 o he affeced cars in he Unied Saes
could require hardware fixes.31 Afer hese rerofis are insalled, owners could
experience a decrease in engine power and uel economy.32
As a resul, even i Volkswagen engineers a soluion, some owners may choose
no o rerofi heir vehicles. According o he Naional Highway raffic Saey
Adminisraion, on average, only 70 percen o vehicles subjec o saey recalls are
fixed wihin 18 monhs.33 Te Governmen Accounabiliy Office ound ha he
recall compleion rae varies significanly by year, ranging rom 55 percen o 75
percen.34 I is reasonable o assume ha his recall success rae could be even lower
or deecs ha are no saey relaed, as in he case wih he Volkswagen vehicles.
Some saes, such as Caliornia, require proo o rerofis beore issuing a
vehicle regisraion, making recalls an effecive way o implemen he rerofis.35
However, more han hal o saes require eiher no emissions esing a all or
vary requiremens by couny or municipaliy, making i difficul o enorce he
recall and rerofis. Some saes ha do require regular emissions esing onlymandae i every wo years.36 Tis means ha i consumers are relucan o par-
icipae in a recall o heir Volkswagen vehicles, he mechanisms o help ensure
paricipaion in a recall are uneven among he saes and unlikely o assure
broad and consisen paricipaion.
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Tis assumes ha Volkswagen will evenually develop a recall plan or all deec-
ive vehicles ha passes muser wih he EPA and CAB. I i does no, he car
company could ace pressure o buy back each deecive vehicle. Tis could cos
he company $7.3 billion, according o Kelley Blue Book esimaes.37
Implement pollution mitigation measures
Te EPA ofen includes miigaion acions in setlemens or violaions o environ-
menal laws in order o minimize he harm caused by illegal conduc. According o
he EPA, miigaion acions are “sough by he governmen o remedy, reduce or
offse pas (and in some cases ongoing) harm caused by he alleged violaions in a
paricular case.”38 Tese acions mus provide idenifiable benefis, such as limiing
he amoun o uure polluans emited o address pas excesses.39 Because he
purpose o a miigaion acion would be o, “as nearly as possible, resore he saus
quo ane ,” here mus be a close connecion beween he miigaion acion and heharm caused by he violaion.40 In general, he EPA is able o demand miigaion
acion as par o a setlemen because a cour likely would order such miigaion as
injuncive relie i he case were liigaed.41
In May 2015, or example, he EPA and he DOJ announced a setlemen wih
Marahon Peroleum Corporaion over Clean Air Ac violaions a 10 aciliies.
As par o he setlemen, he consen decree requires Marahon o miigae
he harm caused by is excess emissions by spending $3 million o reire sulur
dioxide credis and insall proecive seals on 14 uel sorage anks.42 As anoher
example, in April 2015, he EPA, he DOJ, and he sae o Colorado setled
wih Noble Energy or violaions o he Clean Air Ac relaed o vapor conrol
sysems a he company’s condensae sorage anks. Noble agreed o spend $4.5
million o rerofi is drilling equipmen and improve company processes o
reduce ozone-orming emissions.43
Assess significant civil penalties
Te Clean Air Ac ses maximum penalies or violaions. Should he EPA and heDOJ decide o setle he case agains Volkswagen, he EPA has discreion o deer-
mine he appropriae oal penaly o assess on op o oher measures o miigae
or offse he environmenal harm caused by he excess polluion. Te EPA has
esablished a policy o guide is acions relaed o negoiaed setlemens o viola-
ions o he Clean Air Ac’s vehicle and engine cerificaion requiremens, such as
hose a issue wih Volkswagen.44
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According o he EPA, a penaly should recover “any economic benefi o non-
compliance” and “an addiional amoun o reflec he seriousness o he viola-
ion.”45 While EPA policy prescribes a rule o humb or esimaing he economic
benefi o violaing he Clean Air Ac, his approach is no appropriae in cases in
which an auomaker uses emissions conrol deea devices, as hese devices allow
he auomaker o offer consumers vehicles wih perormance and prices ha mayno be possible wih legal engines or design. In deea device cases, he EPA con-
ducs a ac-specific inquiry ha examines he acual benefis o noncompliance.46
Te addiional penaly sum ha reflecs he seriousness o he violaion, known
as he “graviy-based” porion o he penaly, is based on specific objecive acors
and consideraion o a variey o acors and circumsances.47 Tis analysis would
examine he ollowing issues:
• Actual or potential harm. Tis acor ocuses on wheher he violaion resuls in
excess emissions and i so, he magniude o hose emissions.48 Te EPA caego-
rizes a violaion as “major”he mos egregious caegory o violaioni he vehicle in quesion generaes greaer emissions han a complian vehicle.49 Te
agency can use is discreion o reduce he penaly i “effecive remedial acions
are aken promply,” or i can increase he graviy-based porion o he penaly
by up o 30 percen i he company akes no or ineffecive remedial acion.50
• Importance to the regulatory scheme. Tis acor examines how imporan he
violaed requiremen is o achieving he goals o he Clean Air Ac.51
• Scaling factors. EPA policy prescribes ha he penalies on a per-engine basis
decrease as he number o violaing engines increases.52 For example, he penaly
on he 400,000h noncomplian vehicle sold is less han he penaly or he 10h
noncomplian vehicle sold. Oherwise, he per-engine graviy-based calculaion
could resul in unreasonably large penalies, perhaps beyond he company’s abil-
iy o pay wihou going ou o business.
• Business size. EPA policy saes ha or larger companies, a larger penaly is
necessary o creae an appropriae deerren.53
Te EPA also seeks o ensure equiable reamen o he regulaed communiyin assessing civil penalies by considering he violaor’s degree o willulness or
negligence. For example, he agency looks a how much conrol he company
had over he alleged violaion; wheher he company ook reasonable precau-
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ions o preven he violaion; and wheher he violaion was oreseeable.54
When he violaor has aced wih a paricular degree o willulness or negli-
gence, he EPA can increase he graviy-based porion o he penaly by up o 20
percen based on his analysis.55
Addiionally, he EPA’s policy saes “ha where a pary has violaed a similarenvironmenal requiremen beore, his is usually clear evidence ha he pary
was no deerred by he Agency ’s previous enorcemen response.”56 For repea
offenders, he EPA has he discreion o increase he graviy-based porion o he
penaly by up o 35 percen or one prior violaion and up o 70 percen or more
han one prior violaion.57
Develop a Supplemental Environmental Project
As par o a setlemen, he EPA also can work wih companies o develop a SEP. According o he EPA’s guidance, a SEP is:
[An] environmenally beneficial projec or aciviy ha is no required by law,
bu ha a defendan agrees o underake as par of he setlemen of an enforce-
men acion. SEPs are projecs or aciviies ha go beyond wha could legally be
required in order for he defendan o reurn o compliance, and secure environ-
menal and/or public healh benefis in addiion o hose achieved by compli-
ance wih applicable laws.58
SEPs differ rom he miigaion acions described above in imporan ways.
Foremos, whereas a cour likely would order miigaion as injuncive relie i
a case were liigaed, a SEP is a volunary projec ha “resuls rom negoiaion
beween he paries and canno be secured ouside he setlemen conex.”59
Secondly, SEPs are designed o achieve broadly defined public healh or environ-
menal benefis ha are no necessarily closely linked o he violaion a hand. In
conras, miigaion acions mus demonsrae a close nexus o he harm caused
by he violaion.60 Finally, he EPA can offer an offending company he opion o
reducing he civil penalies in exchange or perorming a SEPan opion ha
does no apply o a miigaion acion.61
Te EPA ofen uses SEPs in combinaion wih civil penalies and oher polluion
miigaion requiremens. In is 2015 setlemen wih he EPA, or example, Noble
Energy agreed o pay a $5 million civil penaly, devoe $4.5 million o environ-
menal miigaion acions, and spend $4 million on SEPs, including he replace-
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men o wood soves in an area wih poor air qualiy and he developmen o
improved esing procedures or vapor conrol sysems.62 Also in 2015, ASACO
agreed o pay a $4.5 million civil penaly, spend $150 million o insall new pol-
luion conrol echnology, and allocae $1 million or a SEP o replace a diesel
swich locomoive operaed a is Arizona aciliy wih a less-polluing diesel-
elecric swich locomoive.63
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Recommendations
Te Environmenal Proecion Agency and he Caliornia Air esources Board
are likely o coninue o work wih Volkswagen o ideniy a echnical fix ha
allows he diesel-powered vehicles in quesion o comply wih he Clean Air Ac.
However, i is uncerain wheher Volkswagen will be able o ideniy such a fix
and wheher mos vehicle owners will ake heir cars in or repair. Eiher way,
he EPA needs o ensure ha a final setlemen wih Volkswagen miigaes he
harm caused by he vehicles’ excess emissions; deers uure illegal conduc; and
expedies he ransormaion o he U.S. ransporaion secor oward a cleaner,less-polluing, and lower-carbon uure.
CAP recommends ha he EPA pursue a hree-pronged sraegy o achieve
hese imporan goals. Firs, he EPA should require Volkswagen o implemen
a miigaion acion wih he goal o reducing emissions o nirogen oxides rom
diesel engines. Second, he EPA should assess significan per-vehicle penalies
ha reflec he seriousness o he violaions. Tird, he setlemen should include
a Supplemenal Environmenal Projec ha unds projecs a he sae and local
levels o clean up he U.S. ransporaion secor, including iniiaives o pu more
elecric vehicles on he road.
Tis approach can do more han merely offse he addiional emissions associaed
wih Volkswagen’s noncomplian auomobiles. I can deliver a public healh and
environmenal dividendone ha ocuses on he penalies associaed wih each
violaing vehicle and maximizes he polluion reducions possible rom such unds.
Tis would be a fiting consequence or acions ha sough o profi rom raudulen
claims associaed wih proecing public healh and he environmen. Furhermore,
a srong setlemen also would be in he ineres o Volkswagen, whose repuaion
has suffered and can be resusciaed by making amends or pas acions.
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Require Volkswagen to mitigate its environmental harm
Te EPA should require Volkswagen o underake miigaion acion o offse he
environmenal and healh effecs o is violaions. Any miigaion acion should be
linked o he company’s violaionsmeaning ha Volkswagen’s miigaion effor
should offse NOx emissions rom he ransporaion secor. CAP recommendsha Volkswagen pay ino a und ha would finance projecs o reduce NOx emis-
sions rom diesel engines.
Te Diesel Emissions educion Ac, or DER, would provide a good model or
such miigaion. Congress esablished he DER wih he Energy Policy Ac o
2005.64 DER-unded projecs arge emissions reducions rom diesel vehicles,
equipmen, and engines. Eligible projecs can involve rerofiting diesel equipmen
and engines o make hem cleaner or replacing componens or whole engines
a he end o lie. Under DER, gran recipiens also can inves in echnology o
increase he uel efficiency o diesel fleessuch as idle reducion, aerodynamics,or low-rolling resisance ireswhich have been demonsraed o reduce NOx
emissions and uel use.65 DER grans are available o agencies a he regional,
sae, and ribal levels, as well as por auhoriies, wih jurisdicion over ranspora-
ion issues and air qualiy. Ciies, counies, municipaliies, and school disrics ha
operae diesel flees are also eligible.66
However, because a setlemen agreemen canno provide unds o an agency o
supplemen is appropriaions, Volkswagen canno provide unds direcly o he
DER program.67 Insead, he EPA and Volkswagen could model he miigaion
acion on he mehodology and approach o he DER program o ensure an
effor ha is ransparen and effecive.
Tere is clear preceden or his approach. In 2003, or example, oyoa agreed o
spend $20 million o clean up public diesel flee vehicles as par o is setlemen
wih he EPA over violaions o he Clean Air Ac.68 oyoa creaed a “Clean Buses
or Kids” program ha offered grans o school disrics o purchase filers and
ulra-low sulur diesel uel or buses.69 While his program uilized he knowledge
gained by he DER program, he EPA did no operae i.
Tis miigaion acion no only will make up or pas excess emissions o he
exen ha such polluion can be offse, bu i also will be an imporan elemen in
addressing uure excess emissions rom vehicles ha escape he recall process or
oherwise remain in use.
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Assess civil penalties that reflect the seriousness of the violation
Under he Clean Air Ac, using a deea device o exceed emissions sandards
warrans a maximum fine o $37,500 per affeced car.70 In he civil complain,
he Deparmen o Jusice also asks he cour o hold Volkswagen liable or
up o $3,750 or each deea device insalled in he vehicles and suggess ha Volkswagen could ace an addiional $37,500 in penalies or each day o viola-
ion.71 I required o pay he maximum fine, Volkswagen would ace an exraordi-
nary penaly o approximaely $18 billion.72 Te acual amoun Volkswagen pays
could be subsanially less, however, as he EPA and he DOJ resolve he charges
hrough a negoiaed setlemen.
During he setlemen process, he EPA will use is discreion o deermine he
appropriae penaly amoun. According o EPA policy, he penaly should recover
“any economic benefi o noncompliance” and “an addiional amoun o reflec he
seriousness o he violaion.”73
Te EPA firs will have o conduc a case-specific inquiry o deermine he eco-
nomic benefi o hese violaions o Volkswagen.74 Tis economic benefi is likely
o be subsanial, given he large number o deecive vehicles a issue. Moreover,
Volkswagen allegedly gained a compeiive advanage in he markeplace by
markeing hese diesel-ueled vehicles as meeing srong polluion sandards while
delivering superior uel economy and perormance.
Te EPA hen will calculae he “graviy-based” porion o he penaly ha
reflecs he seriousness o he allegaions.75 Te EPA has a sound case or assess-
ing significan penalies based on he graviy o Volkswagen’s acions. Te viola-
ions caused acual and poenial harm in he orm o excess emissions, qualiying
he violaion as “major” on he EPA’s scale o egregiousness.76 Moreover, because
Volkswagen has been slow o ideniy a saisacory fix o bring he cars ino com-
pliance, he EPA has he discreion o increase he graviy-based porion o he
penaly by up o 30 percen.77
Adding o he graviy o he violaion is he imporance o engine cerificaion
requiremens o achieving he goals o he Clean Air Ac.78
Compliance wihengine cerificaion requiremens is cenral and undamenal o conrolling emis-
sions rom moor vehicles, and Volkswagen appears o have sysemaically and
decepively violaed hose requiremens. Tis ac is likely o increase he amoun
o penalies assessed.
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Since Volkswagen is a large mulinaional corporaion worh ens o billions o
dollars, a larger penaly is necessary o creae an appropriae financial deerren.79
Te agency also will look a Volkswagen’s degree o willulness in commiting he
violaion. News repors indicae ha Volkswagen’s CEO knew abou he deea
devices in diesel vehicles more han a year beore he violaion was discovered.80
As a resul, he EPA could increase he graviy-based porion o he penaly by upo 20 percen.81
Te EPA is likely o consider Volkswagen’s rack record as well. Tis is no he firs
ime Volkswagen has run aoul o Clean Air Ac requiremens by insalling devices
ha urn off polluion conrols. In 1974, Volkswagen setled charges ha he com-
pany ailed o properly disclose wo emperaure-sensing swiches ha deacivaed
par o he emissions conrol sysems in abou 25,000 vehicles.82 In ligh o his
hisory o noncompliance, he EPA could increase he graviy-based porion o he
penaly by up o 35 percen.83
Given his analysis, he EPA should assess a mulibillion dollar penaly or hese
Clean Air Ac violaions. Alhough one commenaor has suggesed ha applying
he EPA penaly policy described above would yield a penaly o $3.2 billion, his
analysis ails o consider boh he economic benefi o noncompliance and he
poenial applicaion o some o he penaly mulipliers.84 Based on CAP’s calcula-
ions, he graviy-based porion o he oal penaly could amoun o a leas $5
billion should he paries decide o setle he offenses.85
Develop a SEP to expedite the deployment of electric vehicles
In addiion o he direc harm o he environmen and public healh, he
Volkswagen emissions scandal misled policymakers and he public abou he role
o diesel engines in achieving a clean, modern vehicle flee. Consumers who chose
Volkswagen models or he alleged emissions profile could have purchased cleaner
vehicles. o address his issue, a setlemen wih Volkswagen should include a
large SEP o help clean up he ransporaion secor by acceleraing he ransiion
o cleaner vehicles, including he deploymen o elecric vehicles. Tis will benefi
communiies mos affeced by polluion rom he ransporaion secor: hose inclose proximiy o America’s nework o roads and highways.
Elecric vehicles and plug-in hybrid elecric vehicles offer drivers he opporuniy
o reduce heir NOx emissions and oher polluans significanly.
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Studies show that electric vehicles are, on average,cleaner than gasoline vehicles
A 2015 report by the Union of Concerned Scientists found that from “cradle to grave”—or across the
entire life cycle of the vehicle, including manufacturing—battery electric vehicles on the market today
produce less than half the greenhouse gases of similar gas-powered vehicles.
86
Similarly, a 2015 study bythe Electric Power Research Institute found that nationally, as of 2013, the average plug-in electric vehicle
produced the emissions equivalent of a gas-powered vehicle that gets 61 miles per gallon. Regionally
across the country, the miles-per-gallon equivalents of these vehicles ranged from 46 miles to 251 miles
per gallon.87 A 2013 study of Maricopa County, Arizona, concluded that compared with a gasoline vehicle
in that county, battery electric vehicles reduced NOx emissions by 76 percent. Plug-in hybrids also reduced
NOx emissions 30 percent to 48 percent, depending on how many of the miles driven were electric miles.88
As the United States transitions to a less carbon-intensive electricity grid with cleaner sources, the
emissions benefits created by electric vehicles and plug-in hybrids will compound.89
Volkswagen could provide significan unds or a SEP, perhaps calculaed on a per-
noncomplian-vehicle basis. A subsanial porion o he SEP should be devoed o
financially incenivizing deploymen o elecric vehicles and relaed inrasrucure.
Tese incenives, however, should no simply serve as an incenive o purchase
elecric vehicles manuacured by Volkswagen.
Insead, he EPA and he DOJ could srucure he SEP o designae unds o help
sae and local governmens, as well as privae-secor eniies, increase he deploy-
men o elecric vehicles or finance oher projecs o reduce emissions rom he
ransporaion secor. Tese projecs could vary by he exising circumsances and
desires o differen communiies. One sae migh seek o encourage he reire-
men o polluing vehicles. Anoher ciy migh incenivize he replacemen o
diesel school buses. A privae company migh seek an incenive o replace a flee o
diesel delivery vans wih elecric vehicles. Te SEP could allocae hese unds by
sae based on populaion or he number o deecive Volkswagen vehicles sold in
each saeor some combinaion hereo. Te SEP could include an applicaion
process o ve and approve eligible projecs, much like he DER program.
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Te EPA has experience using setlemens o promoe elecrificaion o vehicles.
In 2015, or example, he EPA and Duke Energy announced a consen decree
resolving he company’s violaions o he Clean Air Ac a some o is coal-fired
power plans. As par o he setlemen, Duke Energy agreed o spend $4.4 million
on supplemenal environmenal miigaion projecs, which could include a projec
o insall elecric vehicle charging inrasrucure or advanced ruck sop elecrifica-ion equipmen in Norh Carolina.90
Agreemen o he esablishmen o a SEP in a negoiaed setlemen is volunary
and would require Volkswagen’s consen. Volkswagen, however, has reason o
agree o such a SEP. Firs, i Volkswagen agrees o setle, he negoiaed setlemen
wih a SEP will likely yield a lesser civil penaly han i he mater is pursued in
cour. Second, he emissions scandal has harmed Volkswagen’s inernaional repu-
aion, and a SEP ha provides subsanial unding o clean up he ransporaion
secor could help Volkswagen urn he page on an alleged campaign o raudulen
asserions abou he environmenal benefis o heir producs.
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Conclusion
Te Deparmen o Jusice, working wih he Environmenal Proecion Agency
and he Caliornia Air esources Board, will hold Volkswagen accounable or
is alleged effors o deceive he governmen and consumers by insalling deea
devices in diesel vehicles, allowing he cars o release dangerous polluans ino
he air undeeced. While billed as clean diesel vehicles, he nirogen oxides emi-
ed rom heir ailpipes have rendered hem anyhing bu clean.
CAP recommends ha he EPA and he DOJ impose ough moneary penal-ies on he company in order o deer uure violaions. he EPA also should
require he company o pursue miigaion acions o clean up diesel engines
in rucks, buses, and oher vehicles already on he road. Finally, he EPA
should work wih Volkswagen o develop a Supplemenal Environmenal
Projec o achieve addiional emissions reducions by unding governmenal
and nongovernmenal agencies o deploy more elecric vehicles and expedie
he ransiion o a cleaner ransporaion secor.
While he polluans rom he deecive Volkswagen vehicles canno be reurned
o he ailpipes, and while he damage o healh canno be reversed, uure damage
can be miigaed by aking his hreeold approach.
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About the authors
Greg Dotson is he Vice Presiden or Energy Policy a he Cener or American
Progress. For more han 18 years, Doson was he lead environmenal and energy
saffer or ormer ep. Henry A. Waxman (D-CA) and a op saffer on he House
Energy and Commerce Commitee and he House Commitee on Oversigh and
Governmen eorm. His major accomplishmens include House passage o com-
prehensive climae change legislaion and he enacmen o laws on clean energy,
pesicide saey, drinking waer, and clean air.
Alison Cassady is he Direcor o Domesic Energy Policy a he Cener. Cassady
joined CAP afer working as a senior proessional saff member or ormer
ep. Henry Waxman (D-CA) in he U.S. House o epresenaives, firs on he
Commitee on Oversigh and Governmen eorm and hen he Energy and
Commerce Commitee. Cassady spearheaded he commitees’ work on unconven-
ional oil and gas developmen and led one o he firs congressional invesigaions
ino he pracice o hydraulic racuring. She also developed experise on climae
change, air qualiy, and nuclear power issues and worked o advance chemical
plan securiy legislaion in 2009.
Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam
a he Cener. Beore joining he Cener, she worked a he Georgeown Climae
Cener, ocusing on boh climae change adapaion and miigaion iniiaives. She
previously inerned wih he W hie House Council on Environmenal Qualiy on
he climae adapaion eam.
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Endnotes
1 United States of Amer ica v. Volkswagen AG, Audi AG,Volkswagen Group of America, Inc., Volkswagen Groupof America, Chattanooga Operations, LLC, Dr. Ing. H.c. F.Porsche AG, and Porsche Cars North America, Inc. (2016),available at http://www.justice.gov/opa/file/809826/download.
2 Letter from Annette Herbert to David Geanacopoulosand Stuart Johnson, S eptember 18, 2015, availableat http://www.arb.ca.gov/newsrel/in_use_compli-ance_letter.pdf; letter from Annette Herbert to DavidGeanacopoulos, Stuart Johnson, and Walter J. Lewis,November 2, 2015, available at http://www.arb.ca.gov/newsrel/in_use_compliance_letter_110215.pdf.
3 U.S. Environmental Protection Agency, “FrequentQuestions about Volkswagen Violations,” available athttp://www.epa.gov/vw/frequent-questions-about-volkswagen-violations (last accessed February 2016).
4 U.S. Environmental Protection Agency, “Learn AboutVolkswagen Violations,” available at http://www.epa.gov/vw/learn-about-volkswagen-violations (last ac-cessed February 2016); California Air Resources Board,“VW 2-liter diesel car denial of recall, and Notice ofViolation: Frequently Asked Questions” (2016), availableat http://arb.ca.gov/msprog/vw_info/jan_12_vw.pdf .
5 U.S. Environmental Protection Agency, “UnitedStates Files Complaint Against Volkswagen, Audi andPorsche for Alleged Clean Air Act Violations,” Pressrelease, January 4, 2016, available at http://yosemite.epa.gov/opa/admpress.nsf/0/AC7B52362207DAD-785257F300060442E.
6 Rory Carroll, “California may allow partially repaired VWdiesels to remain on road,” Reuters, March 8, 2016, avail-able at http://www.reuters.com/article/us-california-volkswagen-repairs-idUSKCN0WB05H.
7 Jad Mouawad and Christopher Jensen, “The Wrath ofVolkswagen’s Drivers,” The New York Times, Sep-tember 21, 2015, available at http://www.nytimes.com/2015/09/22/business/the-wrath-of-volkswagens-drivers.html?_r=0.
8 U.S. Environmental Protection Agency, “Learn AboutVolkswagen Violations,” available at http://www2.epa.gov/vw/learn-about-volkswagen-violations (last ac-cessed February 2016).
9 Gwyn Topham and others, “The Volkswagen emissionsscandal explained,” The Guardian, September 23, 2015,available at http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars.
10 Ibid.
11 California Office of Environmental Health Hazard As-sessment, “Health Effects of Diesel Exhaust,” available athttp://oehha.ca.gov/public_info/facts/dieselfacts.html(last accessed February 2016).
12 U.S. Environmental Protection Agency, “Nitrogen Diox-ide: Health,” available at http://www3.epa.gov/airqual-ity/nitrogenoxides/health.html (last accessed February2016).
13 U.S. Environmental Protection Agency, “Ozone Pollu-tion,” available at https://www.epa.gov/ozone-pollution (last accessed March 2016).
14 U.S. Environmental Protection Agency, “ParticulateMatter (PM): Health,” available at http://www3.epa.gov/airquality/particlepollution/health.html (last accessedFebruary 2016).
15 U.S. Environmental Protection Agency, “Nitrogen Diox-ide: Health.”
16 Ibid.
17 Ibid.
18 Steven R H Barrett and others, “Impact of theVolkswagen emissions control defeat device on USpublic health,” Environmental Research Letters 10 (11)(2015): 1–10, available at https://dspace.mit.edu/handle/1721.1/99727.
19 Ibid., p. 8.
20 Ibid., pp. 6–7.
21 Ibid., p. 7.
22 U.S. Environmental Protection Agency, “What is AcidRain?”, available at https://www3.epa.gov/acidrain/what/index.html (last accessed March 2016); U.S. Envi-ronmental Protection Agency, “Harmful Algal Blooms,”available at https://www.epa.gov/nutrientpollution/harmful-algal-blooms (last accessed March 2016).
23 U.S. Environmental Protection Agency, “Learn AboutVolkswagen Violations”; California Air Resources Board,“VW 2-liter diesel car denial of recall, and Notice ofViolation Frequently Asked Q uestions.”
24 U.S. Environmental Protection Agency, “United StatesFiles Complaint Against Volkswagen, Audi and Porschefor Alleged Clean Air Act Violations.”
25 California Air Resources Board, “Air Resources Boardrejects VW 2-liter diesel recall plan and issues Noticeof Violation,” Press release, January 12, 2016, avail-able at http://www.arb.ca.gov/newsrel/newsrelease.php?id=780; Dana Hull and Jeff Plungis, “VW Submits
Recall Plan for 3-Liter Diesels to CARB, EPA,” BloombergBusiness, February 2, 2016, available at http://www.bloomberg.com/news/articles/2016-02-03/vw-submits-recall-plan-for-3-liter-diesels-to-u-s-regulators.
26 Jack Ewing, “Court Sets Deadline for a VW Diesel Fix,but Solution Could Prove Elusive,” The New York Times,March 24, 2016, available at http://www.nytimes.com/2016/03/25/business/international/volkswagen-emissions-scandal-fix-hearing.html?_r=0.
27 Carroll, “California may allow partially repaired VWdiesels to remain on road.”
28 Ibid.
29 Bethan Howe, “Volkswagen scandal: 5 scary numbers,”CNNMoney, November 4, 2015, available at http://mon-ey.cnn.com/2015/11/04/news/companies/volkswagen-
scandal-five-things-to-know/index.html?iid=EL.
30 U.S. Environmental Protection Agency, “United StatesFiles Complaint Against Volkswagen, Audi and Porschefor Alleged Clean Air Act Violations”; California AirResources Board, “Air Resources Board rejects VW 2-literdiesel recall plan and issues Notice of Violation.”
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31 Jeff Plungis and Alan Katz, “VW’s Emissions Retrofit MayBe Among Costliest Recalls Ever,” Bloomberg Business,October 22, 2015, available at http://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-ever.
32 Alex Davies, “VW Owners aren’t going to like the fixesfor their diesels,” Wired , September 22, 2015, availableat http://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/.
33 Government Accountability Office, “Auto Safety: NHTSA
Has Options to I mprove the Safety Defect Recall Pro-cess,” GAO-11-603, June 2011, p. 24, available at http://www.gao.gov/assets/320/319698.pdf .
34 Ibid., p. 25.
35 California Vehicle Code § 4750(c) - Grounds Requir-ing Refusal of Registration, available at http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767 (last accessed March2016); FindLaw, “California Health and Safety CodeSection 43105,” available at http://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-43105.html (lastaccessed March 2016); California Code of Regulations,13 CCR § 2117 – Proof of Correction Certificate.
36 AAA Digest of Motor Laws, “Emissions Inspection,”available at http://drivinglaws.aaa.com/tag/emissions-inspection/ (last accessed February 2016).
37 Ron Lieber, “How Volkswagen Could Compensate Die-sel Owners,” The New York Times, September 25, 2015,available at http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0.
38 U.S. Environmental Protection Agency, “Memorandumon Securing Mitigation as Injunctive Relief in CertainCivil Enforcement Settlements” (2012), p. 2, available athttps://www.epa.gov/sites/production/files/2013-10/documents/2ndeditionsecuringmitigationmemo.pdf.
39 Ibid.
40 Ibid., p. 4.
41 Ibid., p. 3.
42 U.S. Environmental Protection Agency, “MarathonPetroleum Corporation Clean Air Settlement,” May 19,2015, available at https://www.epa.gov/enforcement/marathon-petroleum-corporation-clean-air-settlement.
43 U.S. Environmental Protection Agency, “Noble Energy,Inc. Settlement,” April 22, 2015, available at https://www.epa.gov/enforcement/noble-energy-inc-settle-ment.
44 U.S. Environmental Protection Agency, “Clean Air Act:Mobile Source Civil Penalty Policy: Title II of the CleanAir Act Vehicle and Engine Emissions CertificationRequirements” (2009), p. 3, available at http://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdf .
45 Ibid., p. 11.
46 Ibid., pp. 7, 11.
47 Ibid.
48 Ibid.
49 Ibid., p. 13.
50 Ibid., p. 14.
51 Ibid., p. 11.
52 Ibid., p. 15.
53 Ibid.
54 Ibid., pp. 23–24.
55 Ibid., p. 23.
56 Ibid., p. 25.
57 Ibid., p. 26.
58 U.S. Environmental Protection Agency, “U.S. Environ-mental Protection Agency Supplemental Environ-mental Projects Policy: 2015 Update” (2015), p. 1,available at http://www2.epa.gov/sites/production/files/2015-04/documents/sepupdatedpolicy15.pdf.
59 U.S. Environmental Protection Agency, “Memorandumon Securing Mitigation as Injunctive Relief in CertainCivil Enforcement Settlements,” p. 3.
60 Ibid., p. 4.
61 Ibid., p. 4.
62 U.S. Environmental Protection Agency, “Noble Energy,Inc. Settlement.”
63 U.S. Environmental Protection Agency, “ASARCO LLCSettlement,” November 3, 2015, available at https://www.epa.gov/enforcement/asarco-llc-settlement.
64 Energy Policy Act of 2005, Public Law 58, 109th Cong.,1st sess. (August 8, 2005), sections 791–797, availableat http://energy.gov/sites/prod/files/2013/10/f3/epact_2005.pdf.
65 U.S. Environmental Protection Agency, “SmartWay Tech-nology,” available at http://www3.epa.gov/smartway/forpartners/technology.htm (last accessed February2016).
66 U.S. Environmental Protection Agency, “Clean DieselNational Grants: Projects (2012-2015),” available athttp://www2.epa.gov/cleandiesel/clean-diesel-nation-al-grants (last accessed March 2016).
67 U.S. Environmental Protection Agency, “Memorandumon Securing Mitigation as Injunctive Relief in CertainCivil Enforcement Settlements,” p. 9.
68 U.S. Environmental Protection Agency, “Toyota MotorCorporation Settlement,” March 7, 2003, available athttp://www.epa.gov/enforcement/toyota-motor-corporation-settlement.
69 School Bus Fleet, “Toyota offers $20 million for cleanerschool buses,” November 1, 2004, available at http://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buses.
70 Clean Air Act § 201-219; 42 U.S. Code § 7521-7554.
71 United States of America v. Volkswagen AG, Audi AG,Volkswagen Group of America, Inc., Volkswagen Groupof America, Chattanooga Operations, LLC, Dr. Ing. H.c. F.
Porsche AG, and Porsche Cars North America, Inc.
72 Timothy Gardner and Bernie Woodall, “Volkswagencould face $18 billion penalties from EPA,” Reuters,September 18, 2015, available at http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKC-N0RI1VK20150918.
http://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-everhttp://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-everhttp://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-everhttp://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/http://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/http://www.gao.gov/assets/320/319698.pdfhttp://www.gao.gov/assets/320/319698.pdfhttp://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-43105.htmlhttp://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-43105.htmlhttp://drivinglaws.aaa.com/tag/emissions-inspection/http://drivinglaws.aaa.com/tag/emissions-inspection/http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0https://www.epa.gov/sites/production/files/2013-10/documents/2ndeditionsecuringmitigationmemo.pdfhttps://www.epa.gov/sites/production/files/2013-10/documents/2ndeditionsecuringmitigationmemo.pdfhttps://www.epa.gov/enforcement/marathon-petroleum-corporation-clean-air-settlementhttps://www.epa.gov/enforcement/marathon-petroleum-corporation-clean-air-settlementhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttp://www2.epa.gov/sites/production/files/2015-04/documents/sepupdatedpolicy15.pdfhttp://www2.epa.gov/sites/production/files/2015-04/documents/sepupdatedpolicy15.pdfhttps://www.epa.gov/enforcement/asarco-llc-settlementhttps://www.epa.gov/enforcement/asarco-llc-settlementhttp://energy.gov/sites/prod/files/2013/10/f3/epact_2005.pdfhttp://energy.gov/sites/prod/files/2013/10/f3/epact_2005.pdfhttp://www3.epa.gov/smartway/forpartners/technology.htmhttp://www3.epa.gov/smartway/forpartners/technology.htmhttp://www2.epa.gov/cleandiesel/clean-diesel-national-grantshttp://www2.epa.gov/cleandiesel/clean-diesel-national-grantshttp://www.epa.gov/enforcement/toyota-motor-corporation-settlementhttp://www.epa.gov/enforcement/toyota-motor-corporation-settlementhttp://www.schoolbusfleet.com/http://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.reuters.com/article/2015/09/18/us-usa-volkswagen-idUSKCN0RI1VK20150918http://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.schoolbusfleet.com/article/610862/toyota-offers-20-million-for-cleaner-school-buseshttp://www.schoolbusfleet.com/http://www.epa.gov/enforcement/toyota-motor-corporation-settlementhttp://www.epa.gov/enforcement/toyota-motor-corporation-settlementhttp://www2.epa.gov/cleandiesel/clean-diesel-national-grantshttp://www2.epa.gov/cleandiesel/clean-diesel-national-grantshttp://www3.epa.gov/smartway/forpartners/technology.htmhttp://www3.epa.gov/smartway/forpartners/technology.htmhttp://energy.gov/sites/prod/files/2013/10/f3/epact_2005.pdfhttp://energy.gov/sites/prod/files/2013/10/f3/epact_2005.pdfhttps://www.epa.gov/enforcement/asarco-llc-settlementhttps://www.epa.gov/enforcement/asarco-llc-settlementhttp://www2.epa.gov/sites/production/files/2015-04/documents/sepupdatedpolicy15.pdfhttp://www2.epa.gov/sites/production/files/2015-04/documents/sepupdatedpolicy15.pdfhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttp://www.epa.gov/sites/production/files/documents/vehicleengine-penalty-policy_0.pdfhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttps://www.epa.gov/enforcement/noble-energy-inc-settlementhttps://www.epa.gov/enforcement/marathon-petroleum-corporation-clean-air-settlementhttps://www.epa.gov/enforcement/marathon-petroleum-corporation-clean-air-settlementhttps://www.epa.gov/sites/production/files/2013-10/documents/2ndeditionsecuringmitigationmemo.pdfhttps://www.epa.gov/sites/production/files/2013-10/documents/2ndeditionsecuringmitigationmemo.pdfhttp://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0http://www.nytimes.com/2015/09/26/your-money/how-volkswagen-could-compensate-diesel-owners.html?_r=0http://drivinglaws.aaa.com/tag/emissions-inspection/http://drivinglaws.aaa.com/tag/emissions-inspection/http://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-43105.htmlhttp://codes.findlaw.com/ca/health-and-safety-code/hsc-sect-43105.htmlhttp://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=04001-05000&file=4750-4767http://www.gao.gov/assets/320/319698.pdfhttp://www.gao.gov/assets/320/319698.pdfhttp://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/http://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/http://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-everhttp://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-everhttp://www.bloomberg.com/news/articles/2015-10-22/vw-s-emissions-retrofit-may-be-among-costliest-recalls-ever
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22 Center for American Progress | Fixing the Foul Play
73 U.S. Environmental Protection Agency, “Clean Air Act:Mobile Source Civil Penalty Policy.”
74 Ibid., p. 7.
75 Ibid., p. 11.
76 Ibid., p. 13.
77 Ibid., p. 14.
78 Ibid., p. 11.
79 Ibid., p. 15.
80 Nicholas Comfort, “VW’s Winterkorn Told of DefeatDevice Probe in 2014, Bild Says,” Bloomberg Business,February 14, 2016, available at http://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-says.
81 U.S. Environmental Protection Agency, “Clean Air Act:Mobile Source Civil Penalty Policy,” p. 23.
82 Autoweek , “VW emissions ‘defeat device’ isn’t the first,”September 24, 2015, available at http://autoweek.com/article/car-news/vw-emissions-defeat-device-isnt-first.
83 U.S. Environmental Protection Agency, “Clean Air Act:Mobile Source Civil Penalty Policy.”
84 Aaron Cole, “This is Why Volkswagen Won’t Pay $18 Bil-lion,” The Truth About Cars, S eptember 25, 2015, avail-able at http://www.thetruthaboutcars.com/2015/09/volkswagen-wont-pay-18-billion/.
85 This calculation reflects only the gravity-based portionof the penalty and followed the formula detailed inU.S. Environmental Protection Agency, “Clean Air Act:Mobile Source Civil Penalty Policy.” The calculationassumes, per EPA guidance, that each vehicle has a 250horsepower, or HP, engine. The penalty was calculatedon a per-HP, per-vehicle basis, adjusted for egre-giousness and to reflect the size of Volkswagen. Thepenalty was scaled for the adjusted number of vehicles.Discretionary multipliers were used in the calculationto reflect the lack of remediation, the willfulness andnoncooperation of the violations, and the company’shistory of noncompliance.
86 Rachel Nealer, David Reichmuth, and Don Anair,“Cleaner Cars from Cradle to Grave” (Washington: Unionof Concerned Scientists, 2015), available at http://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdf.
87 Electric Power Research Institute, “EnvironmentalAssessment of a Full Electric Transportation Portfolio,Volume 1: Background, Methodology, and BestPractices” (2015), p. 2-1, available at http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875.
88 Mike Salisbury, “Air Quality and Economic Benefits ofElectric Vehicles in Arizona” (Boulder, CO: SouthwestEnergy Efficiency Project, 2013), available at http://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdf .
89 Roland Hwang, “Clearing the Air on Electric Cars andPollution,” Roland Hwang’s Blog, January 24, 2014,available at http://switchboard.nrdc.org/blogs/rhwang/clearing_the_air_on_electric_c.html.
90 U.S. Environmental Protection Agency, “Duke EnergyCorporation Clean Air Act (CAA) Settlement,” Sep-tember 10, 2015, available at http://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlement.
http://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-sayshttp://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-sayshttp://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-sayshttp://autoweek.com/article/car-news/vw-emissions-defeat-device-isnt-firsthttp://autoweek.com/article/car-news/vw-emissions-defeat-device-isnt-firsthttp://www.thetruthaboutcars.com/2015/09/volkswagen-wont-pay-18-billion/http://www.thetruthaboutcars.com/2015/09/volkswagen-wont-pay-18-billion/http://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://switchboard.nrdc.org/blogs/rhwang/clearing_the_air_on_electric_c.htmlhttp://switchboard.nrdc.org/blogs/rhwang/clearing_the_air_on_electric_c.htmlhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://www.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlementhttp://switchboard.nrdc.org/blogs/rhwang/clearing_the_air_on_electric_c.htmlhttp://switchboard.nrdc.org/blogs/rhwang/clearing_the_air_on_electric_c.htmlhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.swenergy.org/data/sites/1/media/documents/publications/documents/AZ%20EV%20AirQuality.EconAnalysis.9.26.13%20.pdfhttp://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?productId=000000003002006875http://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.ucsusa.org/sites/default/files/attach/2015/11/Cleaner-Cars-from-Cradle-to-Grave-exec-summary.pdfhttp://www.thetruthaboutcars.com/2015/09/volkswagen-wont-pay-18-billion/http://www.thetruthaboutcars.com/2015/09/volkswagen-wont-pay-18-billion/http://autoweek.com/article/car-news/vw-emissions-defeat-device-isnt-firsthttp://autoweek.com/article/car-news/vw-emissions-defeat-device-isnt-firsthttp://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-sayshttp://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-sayshttp://www.bloomberg.com/news/articles/2016-02-14/vw-s-winterkorn-told-of-defeat-device-probe-in-2014-bild-says
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