January 20, 2022

News

News Network

Remarks by Deputy Attorney General Jeffrey A. Rosen on the Settlement of Clean Air Act Claims against Daimler AG and Mercedes-Benz USA LLC

20 min read

Remarks as Prepared for Delivery

Good afternoon.  I am very pleased to be joined today by colleagues from the Department of Justice and the Environmental Protection Agency, including EPA Administrator Andrew Wheeler, Assistant Attorney General Jeff Clark, and EPA Assistant Administrator Susan Parker Bodine.  And the reason we are all here is to announce an important matter that involves the protection of our environment. 

I will turn the podium over to Administrator Wheeler to make that announcement, before I offer a few brief comments myself after him, but before we proceed, I want to express my profound appreciation for Administrator Wheeler’s leadership, both in regard to this matter and the administration’s broader environmental policy efforts.  He and I have worked together on tough environmental policy issues since the mid-2000s when he served as Chief Counsel of the U.S. Senate Committee on Environment and Public Works and I served as General Counsel at OMB.  His dedication to serving the American people and his faithful interpretation of the nation’s environmental laws have been hallmarks of his service to our country.  And those are certainly demonstrated by what he is about to tell you.  Administrator Wheeler.    

*        *        *

Thank you Administrator Wheeler.  I want to emphasize the strong commitment that both the Department of Justice and the Environmental Protection Agency have made to the enforcement of our pollution laws, including the Clean Air Act.  So let me briefly describe the key ways that this settlement will fulfill that commitment, as it includes several different forms of relief. 

First, as Administrator Wheeler just mentioned, Daimler will pay a civil penalty totaling $875 million, which equates to about a $3,500 penalty for each vehicle that was sold in the U.S.  That is the largest per-vehicle civil penalty judgment ever imposed for a mobile emissions violation under the Clean Air Act.   

Second, Daimler will fix each of the affected vehicles without any cost to the consumer.  That means recalling the vehicles and bringing them into compliance with Clean Air Act emissions standards.  We estimate the cost to Daimler to perform these recalls is close to $400 million. 

Third, Daimler will mitigate the damage this scheme did to our nation’s air by replacing at its own expense no less than 15 old locomotive engines with new, low nitrogen oxide-emitting engines that should offset the illegal emissions from its vehicles. 

Fourth, Daimler and Mercedes-Benz USA will strengthen their internal corporate compliance procedures to prevent future violations of the Clean Air Act.  They must hire a third-party to review their compliance measures on a regular basis going forward to ensure they are strong enough. 

Taking all these things together, the total cost to Daimler of these undertakings and other requirements is around $1.5 billion.  We expect that this relief will also serve to deter any others who may be tempted to violate our nation’s pollution laws in the future.

From the DOJ side of this, the settlement is the culmination of a tremendous effort by the Environment & Natural Resources Division and its staff, especially Stefan Bachman, Lori Jonas, Steve O’Rourke, and Jerry MacLaughlin.  The Attorney General and I appreciate their work on this case and all the division does on behalf of the American people to enforce our environmental laws.  I also thank Assistant Attorney General Jeff Clark and his counsel Michael Buschbacher for their leadership during the settlement negotiations.  

Now, for the EPA side of things, I also want to thank EPA Assistant Administrator Bodine and the men and women of the EPA for their tremendous work and for their outstanding partnership during this investigation.  And I again want to express my gratitude to Administrator Wheeler for his leadership and dedication to the nation’s pollution laws.

At this point, Assistant Attorney General Clark and Assistant Administrator Bodine will be available to provide additional information and help us address any questions about today’s announcement.  Thank you very much.

News Network

  • China Travel Advisory
    In Travel
    Reconsider travel to the [Read More…]
  • Chief Justice Names Conference Committee Chairs
    In U.S Courts
    Chief Justice John G. Roberts, Jr. has named eight new chairs of Judicial Conference committees and extended the term of a current chair by one year. 
    [Read More…]
  • Secretary Antony J. Blinken Remarks to Embassy Doha and Mission Afghanistan
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Department of Justice Argues That Vermont’s Barring Parochial Student from College Course Program Violates Constitution
    In Crime News
    The Department of Justice today filed a brief in the U.S. Court of Appeals for the Second Circuit supporting a parochial high school student and her parents and who claim that Vermont discriminated against them in violation of the Free Exercise Clause of the U.S. Constitution by excluding them from a state program paying tuition for high school students to take up to two college courses.
    [Read More…]
  • [Protest of Navy Contract Award for Engineering Support Services]
    In U.S GAO News
    A firm protested a Navy contract award for engineering support services, contending that the Navy: (1) improperly failed to conduct a cost realism analysis of the awardee's proposal; (2) did not evaluate the risk posed by the awardee's use of uncompensated overtime; (3) technical evaluation was inconsistent with the stated evaluation criteria; and (4) did not conduct a cost/technical trade-off analysis in selecting the awardee's bid. GAO held that: (1) it would consider the protest of the Navy's cost realism analysis in a future decision; (2) there was no evidence that the awardee proposed the use of uncompensated overtime; (3) the Navy reasonably evaluated the bids in accordance with the stated evaluation criteria; and (4) the Navy was not required to conduct a cost/technical trade-off analysis, since the contract award was based solely on bid price. Accordingly, the protest was dismissed.
    [Read More…]
  • Canadian National Sentenced for Human Smuggling Conspiracy
    In Crime News
    A Canadian national was sentenced to 32 months in prison for conspiracy to bring undocumented immigrants to the United States for private financial gain in connection with his role in a scheme to smuggle undocumented immigrants from Sri Lanka through the Caribbean and into the United States.
    [Read More…]
  • Michigan Biodiesel Exporter Sentenced to Prison for Tax Fraud
    In Crime News
    A Bloomfield, Michigan, businessman, who operated a biodiesel fuel company, was sentenced to 30 months in prison today for filing a false income tax return.
    [Read More…]
  • Open Data: Additional Action Required for Full Public Access
    In U.S GAO News
    What GAO Found The Open, Public, Electronic and Necessary Government Data Act of 2018 (OPEN Government Data Act) codifies and expands on existing open data policy. It requires, among other things, agencies to publish information as open data by default, as well as develop and maintain comprehensive data inventories. However, the Office of Management and Budget (OMB) has not issued statutorily-required implementation guidance to agencies on making data open by default and comprehensive data inventories. GAO previously recommended that OMB issue inventory guidance, but that recommendation has not been implemented. Despite the lack of guidance, selected agencies—AmeriCorps, the Departments of Justice (DOJ) and State, and the Federal Deposit Insurance Corporation (FDIC)—made progress developing data inventories. Specifically, DOJ, the Department of State, and FDIC are at varying stages of updating their data inventories as required under the act. Further, although AmeriCorps lacks a comprehensive data inventory of all of its data assets, it has developed a searchable open data portal. Regarding engaging with the public, GAO found that the selected agencies had mixed results in addressing all requirements of the act (see figure below). For example, while most of the agencies were assisting the public in expanding use of data assets, none were fully addressing the requirement to publish information on such use. Selected Agencies' Efforts to Address Requirements to Engage with the Public on Open Data Federal data users spanning the public, private, and nonprofit sectors reported that they use and value a variety of data from across the federal government, such as demographic, spending, economic, and law enforcement data. Data users suggested that creating more comprehensive, standardized, accessible, and curated government data could increase the overall value and usefulness of open data. Full implementation of the public engagement requirements in the act could help address issues identified by federal data users. Why GAO Did This Study Federal agencies create and collect large amounts of data to fulfill their missions. Public access to open data—data that are free to use, modify, and share—holds great promise for promoting government transparency and engendering public trust. The OPEN Government Data Act includes provisions for GAO to report on federal agencies' comprehensive data inventories and on the value of the data made available to the public, among other requirements. This report examines, among other things, (1) the extent to which OMB met its statutory requirements; (2) selected agencies' progress developing comprehensive data inventories; (3) the extent to which selected agencies engage with the public; and (4) how data users value and use information made publicly available. GAO reviewed four selected agencies' websites and related documentation, and interviewed OMB staff, General Services Administration and agency officials, and data users.
    [Read More…]
  • Special Envoy for the Horn of Africa Feltman to Speak on Ethiopia
    In Crime Control and Security News
    Office of the [Read More…]
  • Justice Department Settles with New Jersey-Based IT Consulting Company to Resolve Immigration-Related Discrimination Claims
    In Crime News
    The Department of Justice announced today that it reached a settlement with Quantum Integrators Group (Quantum), an IT consulting and staffing company based in New Jersey. The settlement resolves claims that Quantum (1) discriminated against a lawful permanent resident by requiring her, based on her citizenship status, to provide unnecessary documentation before it would refer her for an employment opportunity, and (2) routinely required other work-authorized non-U.S. citizens to present unnecessary documents to prove their eligibility to work.
    [Read More…]
  • Namibian Independence Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Belgium National Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Under Secretary Hale’s Call with Moldovan President-Elect Sandu
    In Crime Control and Security News
    Office of the [Read More…]
  • Joint Statement by the U.S. Department of State and U.S. Department of Homeland Security on the Expansion of Access to the Central American Minors Program
    In Crime Control and Security News
    Office of the [Read More…]
  • Taiwan Travel Advisory
    In Travel
    Exercise normal [Read More…]
  • Justice Department and Federal Trade Commission Announce Agenda for Dec. 6 and 7 Workshop ‘Making Competition Work: Promoting Competition in Labor Markets’
    In Crime News
    The Department of Justice Antitrust Division and the Federal Trade Commission (FTC) announced an agenda for their upcoming virtual workshop regarding competition in labor markets.
    [Read More…]
  • Federal Rulemaking: Deregulatory Executive Orders Did Not Substantially Change Selected Agencies’ Processes or Procedures
    In U.S GAO News
    What GAO Found GAO found that the five selected agencies—the Departments of Commerce, Homeland Security (DHS), the Interior, and Transportation (DOT), and the Environmental Protection Agency (EPA)—implemented deregulatory executive order (EO) requirements, most with limited changes to their existing regulatory processes and procedures. Generally, these EOs required agencies to reduce the total number of regulations and overall regulatory costs. The Office of Information and Regulatory Affairs (OIRA) reported that collectively the federal government met the two primary goals of the EOs by (1) implementing two deregulatory actions for every new regulatory action, and (2) achieving net cost savings (see table). Four of the five selected agencies reported having regulatory cost savings. DHS received a regulatory budget allowance from OIRA for this requirement due to DHS's need to implement priority immigration regulations. However, GAO's analysis of OIRA's data showed the reporting of agencies' deregulatory actions could be overstated partly because OIRA's overall reporting compared all agency deregulatory actions to only significant regulatory actions. A significant regulatory action is one that results in a $100 million or greater effect on the economy in any given year, or meets certain other criteria. The Office of Information and Regulatory Affairs' (OIRA) Reported Actions, Projected Costs, and Projected Cost-Savings by Selected Agencies, Fiscal Years 2017-2020 Dollars are net present value in millions Selected agencies Non-significant deregulatory actions Significant deregulatory actions Significant regulatory actions Projected Costs and (cost savings) Commerce 65 4 4 ($1,144) Homeland Security 26 8 8 $37,153 Interior 41 10 0 ($6,254) Transportation 47 16 6 ($100,484) Environmental Protection Agency 47 22 14 ($89,196) Selected agencies' total 226 60 32 ($159,925) Source: GAO analysis of OIRA and reginfo.gov data. | GAO-21-104305 Note: OIRA allocated an increase in DHS's regulatory budget to implement priority immigration regulations. The Office of Management and Budget's guidance implementing EO 13771 allowed agencies to include alternative actions as a means of achieving deregulatory goals. Alternative actions are those that were not promulgated through the notice-and-comment rulemaking process, such as guidance documents, information collection requests, and other directives. GAO found that of the 286 deregulatory actions reported by the five selected agencies, at least 28 (or about 10 percent) were alternative actions. GAO also found that the five selected agencies did not identify or implement changes to their regulatory enforcement activities in response to EO 13771. For example, officials from some agencies told GAO that any changes in regulatory enforcement activities that occurred while the EO was in effect were not in response to, nor a consequence of, the EO. Why GAO Did This Study From January 2017, until they were revoked in 2021, three EOs required agencies to reduce the total number of federal regulations and regulatory costs and burden. (1) EO 13771 required agencies to eliminate two deregulatory actions for every new regulatory action; (2) EO 13777 established regulatory reform task forces within the agencies, and (3) EO 13924 directed agencies to identify regulatory actions that may inhibit economic recovery in response to the COVID-19 pandemic. GAO was asked to review these deregulatory EOs to better understand the processes and procedures agencies used to implement them. This report examines (1) selected agencies' processes and procedures to implement the EOs and achieve and report on their goals; (2) their alternatives to rulemaking used in response to the EOs; and (3) how enforcement activities changed in response to EO 13771. GAO selected five agencies that collectively implemented more than half of all actions under the deregulatory EOs—Commerce, DHS, Interior, DOT, and EPA—and reviewed their regulatory policies and procedures, and interviewed relevant agency officials. GAO reviewed OIRA's reports and interviewed agency officials. GAO also identified 20 nonfederal entities and interviewed a nongeneralizable selection of representatives from six that reflected a mix of industry groups, environmental policy advocates, and trade organizations. For more information, contact Yvonne D. Jones at (202) 512-6806 or jonesy@gao.gov.
    [Read More…]
  • Operation Legend: Case of the Day
    In Crime News
    A Bates City, Missouri, man was charged in federal court after law enforcement officers seized nearly two dozen firearms and illegal drugs from his residence.
    [Read More…]
  • Lifting Self-Imposed Restrictions on the U.S.-Taiwan Relationship
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Secretary Antony J. Blinken With Thorold Barker of The Wall Street Journal CEO Council Summit
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]

Crime

Network News © 2005 Area.Control.Network™ All rights reserved.