Both sides have acknowledged that any settlement will need to include a monetary penalty, a plan to recall and fix about 104,000 diesel pickups and SUVs and some effort to repair environmental harm caused by the vehicles' excess pollution, according to a Jan. 27 letter from Justice Department lawyers to Fiat Chrysler attorneys obtained by Bloomberg News. Fiat Chrysler acknowledged the need for those three pillars in a term sheet the company submitted earlier to government lawyers, the letter said. The automaker's term sheet also "appears to propose" reducing the size of the monetary penalty based on the funding it would commit to projects aimed at promoting low- or zero-emission "mobility projects," the letter said. The Justice Department said regulators would be willing to consider such projects.