Volkswagen, Defeat Devices, and the Clean Air Act: Frequently Asked Questions

Summary

The German automotive manufacturer Volkswagen Automotive Group (VW) has admitted to installing a software algorithm in several of its diesel-fueled vehicle engines that acts as a “defeat device”: the software detects when the vehicle is undergoing compliance testing and activates certain pollution control devices to reduce tailpipe emissions. During normal driving situations, however, the control devices are turned off, resulting in higher emissions of nitrogen oxide (NOx) and other air pollutants than claimed by the company. Federal and California regulators and the European Union (EU) are examining the use of this software, which was reportedly installed in 11 million vehicles worldwide.

A summary of federal and state actions includes the following:

September 18, 2015: the U.S. Environmental Protection Agency (EPA) issued a notice of violation (NOV) of the Clean Air Act to VW, contending that 2.0 liter Volkswagen and Audi diesel cars (model years 2009-2015) include software that circumvents EPA standards for NOx, allowing emissions up to 40 times the standard.

November 2, 2015: EPA issued a second NOV alleging that VW installed defeat devices in light-duty diesel vehicles equipped with 3.0 liter engines for model years 2014-2016, resulting in NOx emissions increases nine times the EPA standard.

January 4, 2016: the U.S Department of Justice filed a civil complaint against VW on behalf of EPA in federal court alleging that nearly 600,000 diesel vehicles had illegal defeat devices installed, thereby impairing emissions controls and causing harmful air pollution in excess of EPA standards.

EPA stated that it will not grant a certificate of conformity for VW’s model year 2016 diesel vehicles, thus halting sales of these vehicles in the United States.

The California Air Resources Board initiated an investigation into VW’s use of this “defeat device,” and, on January 12, 2016, issued a NOV to VW, alleging that “approximately 75,688 California vehicles do not conform to State law.”

This report is organized as a series of frequently asked questions. It focuses on a description of modern diesel technologies, their market and emissions profiles, and some potential reasons that could underlie the use of defeat devices. It summarizes the specific allegations filed against VW under the Clean Air Act, the current status of federal and state investigations, and the potential civil and criminal penalties which may result. Further, the report introduces several outstanding issues currently under debate, including whether EPA has sufficient resources to monitor vehicle emissions, whether the current penalty structure is sufficient, why EPA failed to detect VW’s defeat device when there have been similar cases in the past, and whether VW’s response to the emissions problem and its efforts to provide restitution to U.S. customers has been adequate.