Golden State Today

California Attorney General Rob Bonta and the California Air Resources Board (CARB) have announced a settlement of $236.5 million with Hino Motors, Ltd., along with its U.S. subsidiaries, over allegations of fraudulent practices related to emissions data. The settlement is part of a broader federal agreement totaling $1.5 billion.

The resolution includes approximately $30.3 million earmarked for CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). This component addresses claims that Hino improperly obtained low emissions vehicle subsidies from the state by allegedly violating laws such as the False Claims Act and Unfair Competition Law. Additionally, about $206 million will be paid to CARB for civil penalties and mitigation efforts aimed at reducing excess nitrogen oxide (NOx) emissions. Hino has also agreed to offer a voluntary fix for certain affected vehicles at no cost to their owners.

The investigation into Hino began in 2019 when CARB identified inconsistencies in emissions data during a review of certification applications. Subsequent testing, conducted in collaboration with the U.S. Environmental Protection Agency, revealed undisclosed auxiliary emission control devices on specific heavy-duty engines produced between 2010 and 2019. These engines were found to emit NOx levels significantly above permissible limits, posing health risks particularly to disadvantaged communities.

“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” stated Attorney General Bonta.

"CARB's rigorous air quality regulations protect communities from harmful pollutants that cause a host of serious health problems," said CARB Chair Liane Randolph.

Further investigations uncovered that Hino misled CARB into approving its trucks for HVIP funding by falsely asserting compliance with legal standards since 2012. This led to dealers selling these trucks at reduced prices through state-funded discounts, resulting in over 1,600 fraudulent vouchers being issued.

Hino admitted to submitting false statements within its HVIP application after voluntarily disclosing inaccuracies. The company was found to have manipulated emission test data or fabricated results entirely without conducting actual tests while failing to disclose software functions impacting emission controls.

Copies of the consent decrees and settlement agreement are available online for public access.