U.S. Justice Department drops $3M Harley-Davidson emissions penalty

The Justice Department on Thursday announced it has dropped a requirement that Harley-Davidson Inc spend $3 million to reduce air pollution as part of a settlement the Obama administration announced in August.

Last year, the Milwaukee-based motorcycle maker agreed to pay a $12 million civil fine and stop selling illegal after-market devices that cause its vehicles to emit too much pollution and spend about $3 million to retrofit or replace wood-burning appliances with cleaner stoves.

The Justice Department in a court filing cited a new policy from U.S. Attorney General Jeff Sessions and an ongoing review of the penalty by a government auditor in dropping the $3 million penalty from the settlement.

(Reporting by David Shepardson)