Derive Systems, Inc. Case Settlement
Derive Systems, Inc. Case Settles for $281,840
Derive Systems, Inc., the parent company of performance part manufacturer Bully Dog Technologies, LLC (Bully Dog), agreed to settlement terms with the Air Resources Board (ARB) in September 2016 to resolve the sale of diesel and gasoline aftermarket parts illegally sold by Bully Dog in California during the 2010 through 2012 calendar years. The subject parts replaced original emission components on cars and trucks, such as the intake and exhaust systems, or employed different engine calibration software to increase vehicle power. However, they had not been evaluated by ARB in order to demonstrate continued emissions compliance and consequently be exempted from California’s anti-tampering laws prior to them being be sold and installed on consumer vehicles.
Derive Systems, Inc. fully cooperated with ARB during the entirety of the investigation, and provided all requested information promptly. ARB consequently resolved the case with the company for a total civil penalty $281,840, with $70,460 of this total being directed toward a Supplemental Environmental Project to reduce emissions from diesel engines and school buses. This penalty is applicable to 1,084 illegal parts at a rate of $260 per unit. The company has also agreed to institute a voluntary buyback program to recover these parts from its distributors, dealers, and customers at no cost to them.