General Motors has reached an agreement with the Environmental Protection Agency and the Transportation Department to resolve excess emissions stemming from nearly 6 million of its vehicles — and the company has agreed to pay a penalty of nearly $146 million. 

The penalty is a result of an EPA investigation that identified excess carbon emissions from GM vehicles, violating federal regulations. Tests done by both GM and the EPA showed that the company’s vehicles were emitting an average of 10% higher CO2 levels than previous reports claimed. 

“EPA’s vehicle standards depend on strong oversight in order to deliver public health benefits in the real world,” EPA Administrator Michael Regan said. “Our investigation has achieved accountability and upholds an important program that’s reducing air pollution and protecting communities across the country.”

The agreement comes after the Biden administration has issued one of the toughest tailpipe emission standards for vehicles. 

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As part of the agreement, the car company has retired approximately 50 million metric tons of greenhouse gas credits. In a statement to the Washington Examiner, a spokesperson for GM said the company will resolve outstanding problems with the National Highway Traffic Safety Administration through a combination of compliance mechanisms. However, in agreeing to the resolution, General Motors admitted to no wrongdoing or noncompliance with federal regulations, including the Clean Air Act and the Energy Policy and Conservation Act of 1975. 

“We believe this is the best course of action to swiftly resolve outstanding issues with the federal government regarding this matter,” said Bill Grotz, a spokesman for the company. “GM remains committed to reducing auto emissions and working toward achieving the administration’s fleet electrification goals.”