Cummins agreed to pay about $1.7 billion to settle claims that the engine maker installed devices in hundreds of thousands of engines that bypassed emission-control sensors, violating the Clean Air Act, the Justice Department said.

It is the largest-ever civil penalty levied under the Clean Air Act, Attorney General Merrick Garland said Friday. All told, Cummins said it would book a $2.04 billion charge to settle claims involving the Justice Department, the Environmental Protection Agency and California environmental regulators. The settlements are subject to regulatory approvals.