EPA v. Caterpillar

Case summary

This case addresses violations of the Clean Air Act (CAA) by Caterpillar Inc., a Fortune 500 company headquartered in Peoria, Illinois, which manufactures heavy-duty diesel engines, among other products. Caterpillar, Inc. will pay a civil penalty of $2.55 million to resolve claims that the company shipped and sold more than 590,000 highway and non-road diesel engines without the correct emissions controls and also failed to comply with emission control reporting and engine-labeling requirements. Caterpillar violated the Clean Air Act (CAA) in shipping over 590,000 engines to OEMs without exhaust after-treatment devices (ATDs) and incorrect fuel injector and fuel map settings. ATDs are devices that control engine exhaust emissions once the emissions have exited the engine and entered the exhaust system. Typical ATDs include catalytic converters and diesel particulate filters. The fuel injector and fuel map settings meter the amount of fuel delivered into the engine. Under the settlement, Caterpillar will recall these known defective engines and install the correct ATDs and reprogram the fuel injector and fuel map settings. This recall will continue until all engines with incorrect catalysts, fuel injectors or fuel map settlings have been addressed or until December 31, 2011, whichever is earlier. In addition to the recall, and regardless of its success, Caterpillar will mitigate excess emissions through permanent retirement of banked emission credits. Within 30 days of entry of the Consent Decree, Caterpillar agrees to retire credits equivalent to the lifetime excess emissions from the 925 engines that did not receive the correct ATD or that were programmed with incorrect fuel injector or fuel map settings. This permanent retirement of banked emission credits is equivalent to 17.6 tons of nitrogen oxides (NOx) and non-methane hydrocarbons (NMHC) and 0.97 ton of particulate matter (PM). Nitrogen oxides can cause ground-level ozone, acid rain, particulate matter, global warming, water quality deterioration, and visual impairment. Ground level ozone can trigger a variety of health problems, including chest pain, coughing, throat irritation and congestion. It can also worsen bronchitis, emphysema and asthma. Particulate Matter, especially fine particles, contains microscopic solids or liquid droplets that are so small that they can get deep into the lungs and cause serious health problems. Caterpillar will also pay a $2.55 million civil penalty, $2.04 million to the United States and $.51 million to the state of California. More information on the settlement see: http://www.epa.gov/compliance/resources/cases/civil/caa/caterpillarinc11.html

Defendants (1)

• Caterpillar, Inc.Named in complaintNamed in settlement

Facilities (1)

• CATERPILLAR INC

  100 NE ADAMS ST, PEORIA, IL, 61629

  Registry ID: 110002126253

Statutes cited

• CAA 213 — Non-road Engines & Vehicles
• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines

Enforcement conclusions (1)

• Caterpillarentered 2011-09-07

  Primary law: CAA

  Federal penalty: $2,040,000 · State/local: $510,000

Timeline (6 milestones)

• 2008-08-20Enforcement Action Data Entered
• 2009-08-14Referred To Dept Of Justice
• 2011-07-28Final Order Lodged
• 2011-07-28Complaint Filed With Court
• 2011-09-07Final Order Entered
• 2018-09-26Enforcement Action Closed