SACRAMENTO - The California Air Resources Board reached settlements with Derive Systems, Inc., and Hypertech, Inc. to resolve violations of the California Health and Safety Code related to the advertising and sales of illegal aftermarket performance parts in California, especially tuner products made for diesel pick-up truck engines.

“California fights every day to achieve the best air quality possible and we cannot tolerate those who circumvent our regulations,” said Todd Sax, CARB’s Enforcement Chief.  “We commend these companies for their full cooperation with our investigations, and for committing to ensure that consumers can take corrective measures without incurring any costs.”

Florida-based Derive Systems, Inc., is the parent company of performance part manufacturer Bully Dog Technologies, LLC.  Derive paid $281,840 to resolve the sale of diesel and gasoline aftermarket parts illegally sold by Bully Dog in California from 2010 through 2012.  The affected 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.  The parts had not been evaluated by CARB to demonstrate that they did not negatively impact the vehicle’s emissions. As a result, it is illegal to sell or install them on consumer vehicles in California. 

As directed by the settlement agreement, Derive Systems paid $211,380 to the California Air Pollution Control Fund, which supports efforts to decrease air pollution through education and the adoption of cleaner technologies.  The remaining $70,460 was directed towards a Supplemental Environmental Project to reduce emissions from diesel engines and school buses.  The company also agreed to institute a voluntary buyback program to recover these parts from its distributors, dealers and customers at no cost to consumers.

Hypertech, Inc., based in Bartlett, Tennessee, sold illegal diesel tuners/programmers, fuel pumps, thermostats and pressure regulators from 2011 through 2013.  These parts were sold prior to receiving CARB certification to ensure compliance with emissions regulations. As directed by the settlement agreement, Hypertech, Inc., paid $225,000 to the California Air Pollution Control Fund.  The company is also implementing a buyback program.

Modified vehicles that no longer meet California’s emission requirements pose a significant health threat to California residents.  They create higher amounts of smog-forming pollutants, which can lead to increased respiratory and cardiovascular hospitalizations and premature deaths for adults.  They can also lead to more emergency room visits for children with asthma.