EPA v. Detroit Diesel

Case summary

This case involves allegations that Detroit Diesel Corp. (DDC) violated the Clean Air Act by selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards. DDC manufactures heavy duty diesel engines, axles, and transmissions for the on-highway and vocational markets. The company is a wholly-owned subsidiary of Daimler Trucks North America and is incorporated in the state of Delaware. EPA alleged that DDC introduced into commerce 7,786 heavy duty diesel engines in model year 2010 that did not have valid EPA-issued certificates of conformity as required by Section 203(a)(1) of the Clean Air Act, 42 U.S.C. ? 7522(a)(1) and that failed to meet 2010 emissions standards. The Clean Air Act (CAA) requires manufacturers to obtain a certificate of conformity demonstrating compliance with emission standards before introducing an engine into commerce. Certificates of conformity cover only those engines produced within a single model year. A model year for an engine family of engines ends either when the last such engine is produced, or on December 31 of the calendar year for which the model year is named, whichever date is sooner. Detroit Diesel commenced construction of the heavy duty diesel engines during model year 2009 but did not complete construction of the engines until calendar year 2010. Because Detroit Diesel completed all manufacturing and assembling processes for the engines in 2010, the engines required a certificate of conformity demonstrating compliance with 2010 emission standards. From approximately January 5, 2010 through approximately June 1, 2010, Detroit Diesel sold the engines for on-highway use in heavy duty vehicles. Because the engines were not certified to the more stringent 2010 emission standards, Detroit Diesel?s sale of these engines resulted in excess emissions. The engines were manufactured in Detroit, Michigan, but were introduced into commerce across the country. The consent decree requires Detroit Diesel to spend a total of $14.5 million on clean diesel projects. These clean diesel projects include: 1.Replacing older, high-polluting school buses with new school buses that meet current, more-protective emissions standards. The amount to be spent on this project is $10.875 million. 2.Replacing or repowering high-polluting switch locomotives, which are locomotives used in ports to move goods short distances. The amount to be spent on this project is $3.625 million. In addition, Detroit Diesel will be required to post information about these projects on a public website in order to inform the public of actions taken under this settlement. Expanding transparency by making information more accessible to the public is one component of EPA?s Next Generation Compliance. The clean diesel school bus and locomotive projects will reduce diesel emissions, which include nitrogen oxide (NOx), particulate matter, hazardous air pollutants and other pollutants. Nitrogen oxide is a precursor to ozone and can lead to acid rain. Diesel exhaust poses a lung cancer hazard for people and can cause respiratory effects such as asthma, and these risks can disproportionately impact sensitive populations such as children. The EPA estimates that each dollar spent to reduce diesel emissions results in $13 of public health benefits. Thus, EPA estimates that $14.5 million spent on clean diesel projects could provide $188.5 million in public health benefits as the result of ambient air pollutant reductions. The projects are expected to be implemented by Detroit Diesel in a manner that seeks projects across many geographic areas, emphasizes project options that reduce cost and maximize environmental benefit and prioritizes areas that are non-attainment for any pollutant or are potential low income areas. Detroit Diesel Corp. will pay a $14,000,000 civil penalty. For more information, see https://www.epa.gov/enforcement/detroit-diesel-corp-clean-air-act.

Defendants (1)

• Detroit Diesel CorporationNamed in complaintNamed in settlement

Facilities (2)

• DETROIT DIESEL CORPORATION

  13400 OUTER DRIVE, DETROIT, MI, 48239

  Registry ID: 110000407202

• DETROIT DIESEL CORPORATION

  13400 OUTER DRIVE, DETROIT, MI, 48239

  Registry ID: 110000407202

Statutes cited

• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines

Enforcement conclusions (1)

• Detroit Dieselentered 2016-12-19

  Primary law: CAA

  Federal penalty: $14,000,000

Timeline (5 milestones)

• 2012-01-09Referred To Dept Of Justice
• 2012-10-09Enforcement Action Data Entered
• 2016-10-06Final Order Lodged
• 2016-10-06Complaint Filed With Court
• 2016-12-19Final Order Entered