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. Caterpillar is one ofthe world's largest manufacturers of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. On August 29,2009, Caterpillar imported one 3,000 horsepower diesel engine, model year 2007, into the Port of West Palm Beach, Florida. Caterpillar submitted EPA Declaration Form 3520-21 with Box 1 marked for Stationary compression-ignition engines with displacement below 30 liters per cylinder and Box 3 marked for Manufacturer-owned engine. Importing a labeled engine by a manufacturer holding a current certificate of conformity. On September 9,2009, U.S. Customs and Border Protection (CBP) inspected the engine. CBP did not locate an EPA emission control information label or any exemption label on the engine. Caterpillar stated that the Subject Engine is a newer technology engine that failed catastrophically overseas and was being imported to assess the root cause of the failure. Caterpillar failed to provide to EPA any documentation that demonstrated that the Subject Engine bore a permanently affixed EPA Emission Control Infonnation Label indicating that the engine was manufacturer owned. The Clean Air Act and the Code of Federal Regulations (40 C.F.R. § 89. 1 003 (a) and 40 C.F.R. § 1068.101(a)) prohibit the sale of any new nonroad diesel engine unless the engine is covered by an EPA isued certificate of conformity and bears a permanently affixed Emissions Control Label. The regulations include an exemption for manufacturers holding a current certificate of conformity who comply with the applicable criteria and requirements, including affixing onto the engine a permanent label with the proper information. Uncertified vehicles and engines can emit harmful air pollutants at 30% or more above allowable standards. EPA is working with U.S. Customs to stop illegal vehicles and engines at the ports and requiring exportation. As part of the settlement with EPA, Caterpillar has agreed to pay a $20,000 civil penalty.

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

Enforcement conclusions (1)

• Caterpillarentered 2012-05-20

  Primary law: CAA

  Federal penalty: $20,000

Timeline (4 milestones)

• 2012-05-20Complaint Filed/Proposed Order
• 2012-05-20Final Order Issued
• 2012-06-20Enforcement Action Closed
• 2012-09-24Enforcement Action Data Entered