Comments on United States v. Hyundai Proposed Consent Decree

December 11, 2014

The Georgetown Climate Center, in its role as facilitator of the Transportation and Climate Initiative, has recommended that the U.S. Justice Department revise its proposed consent decree in United States et al. v. Hyundai Motor Company et al. to require the defendants to direct funds to state projects and programs that have demonstrated success in reducing transportation-sector emissions.

The Center further encouraged funds to be directed to programs that support electric vehicles, and for the consent decree to reduce the penalty in the proposed decree commensurately. The Center filed its comments on Dec. 8 after the U.S. Justice Department had requested public comments on the proposed decree.

The United States and the California Air Resources Board filed suit against Hyundai Motor Company and Kia Motor Company under Title II of the Clean Air Act for misrepresenting vehicle fuel efficiency standards and improperly claiming over four million greenhouse gas credits under EPA’s averaging, banking, and trading program. The settlement described in the proposed decree would require the defendants to pay a civil penalty of $100 million, take steps to prevent future violations, and forfeit 4.75 million greenhouse gas credits that were wrongfully claimed by the defendants.