Daimler AG and Mercedes-Benz USA, LLC Clean Air Act Settlement FAQs
Frequently Asked Questions, September 14, 2020
- What are the key elements of this settlement agreement?
- Who is agreeing to the consent decree?
- How did EPA find this software? When?
- Which vehicles are covered by this settlement?
- Why are there so many different Approved Emissions Modifications, or “fixes”?
- What does this mean for vehicle owners and lessees?
- Why are only some AEMs currently approved?
- What happens if the AEM doesn’t meet emissions standards?
- How does EPA know that the emissions modifications will work?
- Is there an end date or a completion date in the settlement?
- Why isn’t there a buyback option, like the Volkswagen 2.0L settlement?
- What is a defeat device?
- Do other diesel vehicles have the same software or problems with compliance? Is EPA investigating? Are you going to test them?
- What pollutants are being emitted?
- How does NOx pollution affect people’s health?
- Will the repair affect a vehicle’s fuel economy?
- Will the repair affect the amount of DEF a vehicle owner needs to use?
- I got the fix, and I’m now having trouble with my vehicle. What should I do?
- How does the mitigation program work?
- Who decides where in the country the locomotive engines will go?
- Who will manufacture the locomotive engines?
- Whose locomotives will be replaced?
- You say that the decree’s Mitigation Program will apply in all states except California. How do you plan to address the excess emissions resulting from noncompliant vehicles in CA?
- Will the states be getting money for the mitigation projects?
What are the key elements of this settlement agreement?
This settlement addresses the violations by requiring Daimler to: (1) remove the defeat devices and bring the vehicles into compliance with the applicable emission standards under the Clean Air Act; (2) replace 15 old locomotive engines with new, lower-NOx-emitting engines in order to mitigate excess NOx emissions caused by the defeat devices; (3) take measures to prevent future violations; and (4) pay a substantial civil penalty to ensure the company does not keep the profits it acquired by breaking the law and to deter future violations.
- Civil Environmental Penalty: $875 million
- Federal Mitigation: replace or repower 15 locomotive engines to more stringent emissions standards
- Vehicle Repair: CAA compliant repair of at least 85% of affected passenger cars and at least 85% of the affected vans
- Corporate Compliance: enforceable measures to prevent future violations
Who is agreeing to the consent decree?
The U.S. Department of Justice, the Environmental Protection Agency (EPA), the California Air Resources Board (CARB), Daimler AG, and Mercedes-Benz USA, LLC (collectively, “Daimler”).
This settlement does not involve consumers, other federal agencies, or states other than California.
How did EPA find this software? When?
The EPA discovered the defeat devices through testing at the National Vehicle and Fuel Emissions Laboratory (NVFEL) and through information requests sent to the company. This testing was performed after the EPA’s announcement on September 25, 2015, following the Volkswagen diesel emissions scandal, that it would perform additional testing “using driving cycles and conditions that may reasonably be expected to be encountered in normal operation and use, for the purposes of investigating a potential defeat device.” The EPA found a number of Auxiliary Emission Control Devices (AECDs) in the affected vehicles that were not described in the applications for the certificates of conformity that purportedly cover these motor vehicles. The United States alleged in its complaint that one or more of these AECDs is a defeat device.
Which vehicles are covered by this settlement?
There are approximately 250,000 light- and medium-duty model year 2009-2016 diesel vehicles affected nationwide (approximately 160,000 Sprinters and approximately 90,000 passenger cars). For a detailed breakdown of the vehicles, see chart below:
|
EMC |
Model (MY) |
# Subject Vehicles |
AEM Component Updates |
Availability of AEM |
|
EMC 1 |
Sprinter (MY13-16) 6-cyl |
74,332 |
|
Upon Effective Date of Consent Decree |
|
EMC 2 |
Sprinter (MY10-12) 6-cyl |
46,086 |
|
Upon Effective Date of Consent Decree |
|
EMC 3 |
Sprinter (MY14-16) 4-cyl |
40,981 |
(These vehicles have copper catalysts already installed) |
Expected to be available [on or around February 2021,] after approval |
|
EMC 4 |
ML350 (MY12-14) 6-cyl |
32,764 |
|
Expected to be available on or around December 2020, after approval |
|
GL350 (MY12-16) 6-cyl |
||||
|
EMC 5 |
ML320 (MY09) ML350 (MY10-11) 6-cyl |
27,847 |
|
Expected to be available on or around November 2021, after approval |
|
GL320 (MY09) GL350 (MY10-11) 6-cyl |
||||
|
R320 (MY09) R350 (MY10-12) 6-cyl |
||||
|
EMC 6 |
S350 (MY12-13) 6-cyl |
1,601 |
|
Expected to be available on or around January 2022, after approval |
|
EMC 7 |
E350 (MY13) 6-cyl |
1,267 |
|
Expected to be available on or around December 2021, after approval |
|
EMC 8 |
E350 (MY11-12) 6-cyl |
5,702 |
|
Expected to be available on or around December 2021, after approval |
|
EMC 9 |
GLK250 (MY13-15) 4-cyl |
9,580 |
|
Upon Effective Date of Consent Decree |
|
EMC 10 |
GLE300d (MY16) 4-cyl |
1,818 |
(These vehicles have copper catalysts already installed) |
Upon Effective Date of Consent Decree |
|
EMC 11 |
ML250 (MY15) 4-cyl |
3,588 |
|
Upon Effective Date of Consent Decree |
|
EMC 12 |
E250 (MY14-16) 4-cyl |
5,713 |
|
Expected to be available on or around January 2021, after approval |
Why are there so many different Approved Emissions Modifications, or “fixes”?
There is considerable variation within the affected Daimler fleet, including variation in software calibrations. The vehicles have been categorized into 12 subgroups of fixes, or vehicle updates, known as “Emission Modification Categories,” or “EMCs.”
What does this mean for vehicle owners and lessees?
Vehicle owners and lessees will receive information directly from Daimler concerning the Approved Emission Modification (AEM) installation and monetary inducements for installation of the AEM on their vehicles. Once Daimler repairs the vehicle, Daimler will provide the vehicle owners and lessees with an extended warranty for all impacted hardware or software. More information for vehicle owners and lessees will be available after entry on Daimler’s website.
Why are only some AEMs currently approved?
The EPA and CARB approved the AEMs for five EMCs (EMCs 1, 2, and 9 - 11) prior to lodging of the Consent Decree. The agencies will approve the remaining updates (EMCs 3-8 and 12) in a staggered fashion through 2021, based on their review of Daimler’s proposed updates and emissions test results demonstrating that each update will ensure the relevant vehicles comply with applicable emission standards.
What happens if the AEM doesn’t meet emissions standards?
The EPA and Daimler expect that the vehicles will meet the emissions standards to which they were certified after the AEM is applied. However, because the updates will be approved in a staggered fashion after lodging, the Consent Decree includes provisions that will require Daimler to pay increasing stipulated penalties, up to a specified emissions ceiling, called the “Emission Standard Upper Threshold,” for any update that does not meet the certified standard. Even if each of EMCs 4 – 8 and 12 fell to the Emission Standard Upper Threshold, which we do not expect, the total excess NOx emissions would be covered by the NOx reduced through the federal mitigation project required by the Consent Decree.
How does EPA know that the emissions modifications will work?
Daimler has performed extensive emissions testing to demonstrate that the approved emissions modifications work and maintain emission controls that will meet applicable emission standards under real-world driving conditions. Daimler will continue to conduct rigorous testing as it develops the remaining vehicle updates. EPA and CARB review all reports summarizing this testing, submitted pursuant to the Test Protocol of the Consent Decree, and conduct confirmatory testing on a representative sample of vehicles (including real-world testing with PEMs) to corroborate the results, ensure all AECDs have been disclosed, and the vehicles are free of any defeat devices.
Furthermore, the Consent Decree requires Daimler to demonstrate that vehicles that receive the AEM will remain in compliance with applicable emission standards for the vehicles’ full useful life. A number of the vehicles will be tested each year for five years following entry of the Consent Decree to ensure that the repair is successful and that the vehicles continue to comply with emission standards. Daimler may incur additional penalties if the vehicles fail this in-use compliance testing.
Is there an end date or a completion date in the settlement?
Daimler must install an AEM in at least 85% of the U.S. Passenger Car vehicle fleet (“National Passenger Car Emission Modification Program (EMP) Rate”) by two years from the Effective Date of the Consent Decree or two years from approval of the last-submitted passenger vehicle EMC, whichever is later. Daimler must install the AEM in at least 85% of the U.S. Sprinter vehicle fleet (“National Sprinter EMP Rate”) by three years from the Effective Date of the consent decree or three years from approval of the last-submitted Sprinter EMC(EMC 3), whichever is later. The Approved Emissions Modification will remain available to consumers for 15 years after the Model Year of the vehicle or 8 years after approval of the applicable AEM, whichever is later.
Why isn’t there a buyback option, like the Volkswagen 2.0L settlement?
In the Volkswagen (VW) 2.0 Liter settlement, VW was not able to demonstrate that it could repair the vehicles so that they would meet applicable emission standards. For that reason, VW was required to offer a buyback option for those vehicles. In this case, as in the VW 3.0L settlement and the settlement with Fiat Chrysler entities (FCA), the expectation is that the affected vehicles can be modified to meet the emission standards to which they were originally certified and are not required to be bought back. EPA’s priority has been to address the pollution problem and get the polluting vehicles off the road or bring them into compliance with emission standards. With this settlement, we are doing just that.
This settlement requires Daimler to recall and repair these vehicles so that they comply with their certified emission standards. For EMCs 1, 2, 9 – 11, the AEMs have undergone extensive testing and will fix these vehicles so that they comply with their certified emission standards. The proposed modifications for the remaining categories of vehicles will also undergo extensive testing, and are expected to fix the vehicles so that they comply with their certified emissions standards.
What is a defeat device?
Generally, a defeat device is any part or component that defeats any element of design of a vehicle or engine installed to comply with the Clean Air Act. Specifically in the context of certifying motor vehicles, a defeat device is a vehicle design feature “that reduces the effectiveness of the emission control system under conditions which may reasonably be expected to be encountered in normal vehicle operation and use…” EPA may allow such features to be included in a vehicle, but only if the manufacturer discloses them to the EPA during certification and: (1) Such conditions are substantially included in the Federal emission test procedure; (2) The need for the feature is justified in terms of protecting the vehicle against damage or accident; (3) The feature does not go beyond the requirements of engine starting; or (4) The AECD is justified for emergency vehicles. 40 C.F.R. § 86.1803-01.
Do other diesel vehicles have the same software or problems with compliance? Is EPA investigating? Are you going to test them?
It is essential that EPA maintain an active compliance and oversight presence and constantly adjust our protocols in ways that manufacturers cannot anticipate. In September 2015, just after announcing the VW violations, EPA informed manufacturers that the Agency would expand its testing processes to screen for defeat devices. We have done just that, and it was this program that uncovered the defeat devices in the 3.0 liter VW vehicles, the FCA vehicles, and these Daimler vehicles.
The vast majority of manufacturers, both foreign and domestic, have demonstrated through extensive Agency testing that their vehicles do comply with stringent emission standards in all types of normal vehicle operation. This reinforces our determination to continue to apply rigorous oversight, to change up our testing as circumstances and technologies change, and to hold manufacturers accountable if we do find issues.
What pollutants are being emitted?
Motor vehicles emit an array of pollutants. EPA regulations set standards that control the allowable emission levels of nitrogen oxides (NOx), hydrocarbons, carbon monoxide, carbon dioxide, particulate matter, and other pollutants. The Daimler software affects the way the emission control system in the vehicles operates, resulting in higher NOx emission levels from these vehicles than from vehicles with properly operating emission controls.
How does NOx pollution affect people’s health?
NOx emissions pose significant health and environmental concerns. NOx forms when fuel burns at high temperatures. NOx can travel long distances, causing a variety of health and environmental problems in locations far from their emissions source, including ozone and smog. NOx also contributes to the formation of particulate matter and ground-level ozone through chemical reactions in the atmosphere. Exposure to ozone and particulate matter have also been associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at risk for health effects of these pollutants.
Will the repair affect a vehicle’s fuel economy?
Drivers should not notice any adverse changes in vehicle reliability, durability, performance, drivability, fuel economy, or other driving characteristics for the AEMs that have already been approved (EMCs 1, 2, 9 – 11). For the remaining EMCs, Daimler must perform fuel economy tests and provide consumers with an emissions modification disclosure that contains a clear and accurate description regarding all impacts of the emissions modification on the vehicle, including any impacts on fuel economy. As with all vehicles, however, several factors can affect actual fuel economy, such as, how and where a person drives, vehicle condition, maintenance and age, fuel variations, and vehicle variations.
Will the repair affect the amount of DEF a vehicle owner needs to use?
For EMCs 1, 2, 9 – 11, for which the AEMs have been approved, a vehicle owner’s Diesel Exhaust Fluid (DEF) tank refill interval is not expected to change. As with all vehicles, however, several factors can affect actual DEF usage, such as, how and where a person drives, vehicle condition, maintenance and age, and vehicle variations. Daimler must provide consumers with an emissions modification disclosure that contains a clear and accurate description regarding all impacts of the emissions modification on the vehicle, including any impacts on DEF refill interval.
I got the fix, and I’m now having trouble with my vehicle. What should I do?
If you are experiencing problems with the fix, your attempts to receive the fix, claims under the extended warranty, or delays in receiving your payment, please contact Daimler or the class action plaintiffs’ attorneys.
How does the mitigation program work?
The mitigation program requires Daimler to replace or repower 15 older, more-polluting line-haul locomotive engines with new engines that meet more stringent emissions standards. This program will fully mitigate the lifetime excess NOx emissions from the vehicles in the 49 states (CA mitigation is covered below).
Who decides where in the country the locomotive engines will go?
In selecting locomotives, Daimler must preferentially repower those that are likely to run long distances to geographically diverse locations across the continental United States. Appropriate injunctive relief for mitigation need not be performed specifically state-by-state. Daimler is not required to repower locomotives located in or traveling to California, although they may do so, because the State of California will implement a separate mitigation program.
Who will manufacture the locomotive engines?
Daimler will select the manufacturer or manufacturers for the locomotive engines, or it may hire a contractor to help with the selection process. Daimler cannot preferentially select manufacturers that are Daimler-controlled entities over other manufacturers or suppliers.
Whose locomotives will be replaced?
Daimler will select the owners to receive the locomotive engines, or it may hire a contractor to help with the selection process. Daimler cannot preferentially select owners that are Daimler-controlled entities over other manufacturers or suppliers.
You say that the decree’s Mitigation Program will apply in all states except California. How do you plan to address the excess emissions resulting from noncompliant vehicles in CA?
The federal Mitigation Program is estimated to mitigate the collective excess tons of NOx caused by Daimler’s violations in all states, except California. California has entered into a separate mitigation agreement with Daimler that requires it to make a payment to CARB of $110,000,000 to mitigate the lifetime excess NOx emissions from the affected vehicles in California.
Will the states be getting money for the mitigation projects?
No. In keeping with the EPA’s traditional approach to mitigation projects, Daimler will be responsible for implementing the mitigation program for this settlement.