Hyundai, Kia fined largest penalty ever assessed under Clean Air Act

On Monday, the Obama administration announced a settlement of more than $300 million with South Korean automakers Kia and Hyundai for violating the Clean Air Act. The automakers understated greenhouse-gas emission for nearly 1.2 million of their cars and trucks.

The fine is the largest enforcement action of its kind under the Clean Air Act to date.

Under the terms of the settlement, Kia and Hyundai will forfeit 4.75 million greenhouse-gas credits, estimated to be worth more than $200 million. Car companies earn the credits for manufacturing vehicles that emit less greenhouse-gas pollution than the law requires.

EPA Administrator Gina McCarthy spoke in a news conference on the matter alongside Attorney General Eric Holder.

““Businesses that play by the rules shouldn’t have to compete with those breaking the law,” said McCarthy. “This settlement upholds the integrity of the nation’s fuel economy and greenhouse-gas programs and supports all Americans who want to save fuel costs and reduce their environmental impact.”