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U. S. Settles Clean Air Case against Toyota -- Toyota Will Convert School Buses to Run Cleaner As Part of Settlement

Release Date: 03/07/2003
Contact Information:


MARCH 7, 2003
ENRD (202) 514-2007
EPA (202) 564-9828

(03/07/03) WASHINGTON, D.C. -- The Department of Justice and the Environment Protection Agency finalized yesterday a settlement of the government=s lawsuit against Toyota Motor Corporation for Clean Air Act violations involving 2.2 million vehicles manufactured between 1996 and 1998.

Under the settlement, Toyota will spend $20 million on a supplemental environmental project to retrofit up to 3,000 public diesel fleet vehicles to make them run cleaner and extend the emission control system warranty on affected vehicles. In addition, Toyota will accelerate its compliance with certain new emission control requirements, and pay a $500,000 civil penalty. The settlement will cost Toyota an estimated $34 million.

The United States alleged Toyota sold 2.2 million vehicles which were different from those described in its application for Certificates of Conformity, which allow vehicles to be legally sold if they meet Clean Air Act emission standards. The government=s lawsuit charged Toyota failed to disclose limitations in the operation of that part of the on-board diagnostic system that checks for leaks in vehicles= evaporative emission control systems. As a result, the on-board diagnostic system would not promptly signal drivers to a problem by lighting their dashboard light. Emission control system leaks need to be noticed and repaired because fuel vapors into the atmosphere contribute to ozone pollution.

The supplemental environmental project requires Toyota to spend $20 million to retrofit up to 3,000 diesel vehicles, including older, high-polluting school buses and municipal buses (which are not manufactured by Toyota) with pollution control equipment, such as catalytic converters, filters or whole engines. This retrofit, along with the purchase of ultra-low sulfur fuel (which Toyota may subsidize) is expected to eliminate up to 220 tons of particulate matter emissions, 1,200 tons of hydrocarbon emissions, and 15,000 tons of carbon monoxide emissions.

School children near school buses, as well as pedestrians, are particularly likely to experience high exposure to diesel particulate matter. Diesel particulate is classified as a probable human carcinogen and is known to exacerbate the effects of asthma and heart disease. More than 24 million children across the nation ride diesel buses to school.

AThis settlement is another milestone by this Administration in our work to produce cleaner air for the American people. With this bus retrofit action, our nation=s school children will be breathing less of the small particles that can cause lung and respiratory damage,@ said EPA=s Administrator Christine Whitman. AThis action is a reminder to all drivers that their vehicle=s engine light plays an important part in keeping vehicles running clean and protecting the environment.@

AVehicle manufacturers must make all required disclosures so that EPA can carry out its responsibilities to ensure clean air,@ said Thomas L. Sansonetti, the Department of Justice=s Assistant Attorney General for the Environment and Natural Resources Division. AThis settlement makes clear that we will enforce these requirements vigorously.@

The settlement also requires Toyota to accelerate, by approximately one year, its compliance with EPA=s new Anear-zero@ evaporative emissions regulation, which requires the capture of more gasoline vapors. Due to this accelerated compliance, about 1.4 million new Toyota vehicles manufactured from 2004 to 2006, which would not yet be subject to the new regulation, will be built with more robust evaporative emission control systems. The accelerated compliance schedule is estimated to cost Toyota about $11 million.

The case, filed in federal District Court in Washington, D.C., involves model year 1996 through 1998 vehicles, including some Camry, Avalon, Corolla, Tercel, Paseo, Lexus, Sienna minivans, 4Runner, RAV4, Tacoma and T100 models.

The settlement requires Toyota to notify affected owners of the warranty extension within the next 12 months. The evaporative emission control system warranty will be extended from the current two years or 24,000 miles to 14 years or 150,000 miles. The extended warranty is estimated to cost Toyota about $3 million, and will reduce emissions of hydrocarbons by affected vehicles by an estimated 30 tons, in addition to the 1,200- ton reduction of hydrocarbons achieved by the supplement environmental project.

Owners who have not received a notice within 12 months are encouraged to contact their local Toyota dealer. Owners who smell gasoline or whose malfunction indicator light illuminates should contact their mechanic to determine whether a repair under the extended warranty is indicated. A small number of affected vehicles are expected to have any such malfunction at this time, which is why the government did not consider a recall in this case.

The proposed settlement will be published in the Federal Register for 30 days for public comment, and must be approved by the Court.