General Motors (GM) has agreed to pay $145.8 million in penalties and forfeit significant carbon credits following an investigation by the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA). The investigation revealed that approximately 5.9 million GM vehicles produced from 2012 to 2018 emitted more than 10% higher carbon dioxide levels than reported in GM’s initial compliance statements.

The settlement also includes the forfeiture of approximately 50 million metric tons of carbon allowances, roughly valued at $300 million, according to GM. This follows earlier disclosures by GM that the total expensed costs in connection with this issue reached $450 million through 2023.

The EPA’s findings do not allege that GM used intentional devices to reduce emissions during testing, unlike the 2015 Volkswagen diesel scandal. Nonetheless, the EPA and environmental advocates have stressed the importance of strong pollution regulations.

Approximately 4.6 million full-size pickups and SUVs, along with 1.3 million midsize SUVs from model years 2012 to 2018, including models like the Chevy Tahoe, Cadillac Escalade, and Chevy Silverado, are involved in this case.

In a statement, GM asserted compliance with all regulations during the certification and testing processes of the concerned vehicles. The EPA indicated that the vehicles would remain on the road without the need for recalls or modifications to the fuel economy ratings on window stickers.

NHTSA noted GM had previously paid $128.2 million in penalties for non-compliance with fuel economy requirements for 2016 and 2017. Historically, GM had not faced penalties in the 40-year history of the fuel economy program until these recent settlements.

The EPA’s action does not necessitate a recall, underscoring the agency’s commitment to upholding its emission standards to protect public health.

Environmental groups have criticized GM’s emissions overstatements but acknowledged the settlement’s role in holding the automaker accountable.