The comparison comes after the truck operator Complete Logistics falsely certified compliance with emissions in order to receive government funding

OAKLAND – California Attorney General Rob Bonta and the California Air Resources Board (CARB) today announced a settlement of $ 2.38 million in government grants to buy new, cleaner trucks. The Goods Movement Emission Reduction Program financed under proposal 1B uses incentive grants to induce freight forwarders to reduce emissions below the legally prescribed threshold. Truck operators must certify that they meet government emissions standards before receiving funding to buy additional cleaner trucks. CLC allegedly issued bogus emission permits and then took remedial action to comply once the owner discovered the inappropriateness.

“Unfortunately, Californians still breathe the worst air in the country, and heavy trucks contribute to this air pollution. Proposal 1B offers an important program to help tackle this pollution by encouraging private truck fleets to secure new, cleaner trucks that will benefit the health of the community, ”said Attorney General Bonta. “For the program to work, companies have to stick to the rules. Any company that shuns the state with taxpayers’ money will be brought to justice quickly. We are encouraged to see that Complete Logistics has cleaned up.” their act. ”

“CARB uses its audit and investigation tools to track down companies receiving incentive funds for falsely reported CARB compliance. As this case shows, the consequences of fraud like this are grave, ”said Richard W. Corey, Executive Officer of CARB. when they falsify information in order to obtain valuable incentive funding. “

CARB is incentivizing trucking companies to meet government emissions standards with grants from Proposition 1B, a 2006 statewide bond that provides approximately $ 1 billion to reduce air pollution associated with freight travel in California. During an audit, CARB concluded that CLC was not compliant when the company falsely certified that its fleet met these government emissions standards and wrongly accepted $ 2.2 million in Proposition 1B funds. The company used the grant to buy new, clean trucks.

The alleged misrepresentation happened when the owner of CLC left the company for health reasons. When the owner returned to CLC in 2017, he took remedial action after learning of false statements made to CARB, which included the termination of responsible employees. CARB reports that CLC became compliant in 2019 and is now a model truck operator in terms of emissions compliance.

Under the terms of the settlement, CLC will pay the State of California $ 2.38 million, of which CARB will receive 90% and the California Department of Justice will receive 10%. CARB previously secured a $ 650,000 settlement against CLC to fix alleged violations of fleet emissions regulations. Today’s settlement resolves CARB’s breach of contract and fraud claims against CLC.

A copy of the statement is available here.

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