EPA ALLEDGED THAT AMERICAN HONDA MOTOR CO (HONDA) FAILED TO INSTALL A PROPERLY WORKING ON-BOARD DIAGNOSTIC (OBD) SYSTEM ON 1.6 MILLION 1996 AND 1997 MODEL YEAR PASSENGER CARS IN VIOLATION OF SEVERAL PROVISIONS OF THE CAA. A PROPERLY WORKING OBD SYSTEM MONITORS THE CAR'S EMISSION CONTROL SYSTEM AND ALERTS THE DRIVER OF ANY MALFUNCTION THROUGH A DASHBARD WARNING LIGHT, ALLOWING THE OWNER TO FIX THE CAR BEFORE A LOR OF EXCESS POLLUTANTS HAVE BEEN EMITTED. TO RESOLVE EPA'S CLAIMS, HONDA AGREED TO PAY $10.1 MILLION IN CIVIL PENALTIES AND $1 MILLION IN SEPS. HONDA ALSO AGREED TO FIX THE OBD PROBLEM WITH THEIR CARS FOR THE 1998 MODEL YEAR, TO EXTEND THE EMISSION WARRANTY ON ALL AFFECTED 1996 AND 1997 MODEL YEAR CARS TO 14 YEARS OR 150,000 MILES, AND TO PERFORM A PERIODIC SERVICCE CHECK ON ALL AFFECTED CARS TO MAKE SURE THEIR EMISSION CONTROL SYSTEMS ARE STILL WORKING PROPERLY.