EPA v. Brookville Equipment

Case summary

This case addresses violations of the Clean Air Act (CAA) by Brookville Equipment Corporation (?Brookville?), a manufacturer of locomotives, streetcars, and mining equipment. Brookville produced 12 new diesel-electric locomotives under a contract with the South Florida Regional Transportation Authority (SFRTA). Brookville manufactured these in or before May 2014, and delivered all but one of them to SFRTA between September 2013 and May 2014. In February and March 2014, for the first time, Brookville submitted to the Diesel Engine Compliance Center of the EPA?s Office of Transportation and Air Quality (OTAQ) an application for a model year 2014 certificate of conformity (?COC?) to cover the locomotives. So, at the time of initial submission of its application for a COC to cover the locomotives, Brookville had already produced the locomotives and delivered most of them to its buyer. In a December 18, 2014 phone call between OTAQ and Brookville concerning the pending application, OTAQ learned for the first time that Brookville had already delivered 11 of the 12 locomotives to SFRTA. OTAQ informed Brookville during that phone call that it appeared Brookville had violated the CAA by delivering the uncertified locomotives. In sum, Brookville failed to timely submit a complete application for a model year 2014 COC, and OTAQ was therefore unable to complete its review before December 31, 2014?the last day that OTAQ may issue a model year 2014 COC. 40 C.F.R. ? 1033.201(a). On January 6, 2015, Brookville submitted a letter entitled, ?Voluntary Self-Disclosure.? By this letter, and a subsequent letter on February 25, 2015, Brookville explained the events surrounding the contract for, manufacturing of, and EPA compliance efforts concerning the locomotives. Brookville stated its position that it satisfied all nine factors from the EPA?s Audit Policy. Incentives for Self-Policy: Discovery, Disclosure, Correction and Prevention of Violations, 65 Fed. Reg. 19,618, 19,625-26 (April 11, 2000). At the request of MSEB, OTAQ has completed its review of Brookville?s COC application, and although it cannot issue the requested model year 2014 COC in 2015, OTAQ has agreed that the locomotives satisfy Tier 3 standards and otherwise were certifiable. OTAQ has also agreed that, even in the absence of a COC, OTAQ is able to treat the locomotives as though they were properly certified. Brookville violated 40 C.F.R. ? 1068.101(a)(1) when it sold, offered for sale, introduced into commerce, or delivered for introduction into commerce (or caused the foregoing with respect to) the 12 locomotives. The locomotives are not covered by a COC because the EPA never issued the COC for which Brookville applied, and because Brookville produced the majority of the locomotives before the date that Brookville submitted the application for that COC. EPA encourages the regulated community to discover, disclose, and correct violations by use of the Audit Policy. Incentives for Self-Policy: Discovery, Disclosure, Correction and Prevention of Violations, 65 Fed. Reg. 19,618, 19,625-26 (April 11, 2000). The Audit Policy sets forth nine conditions. A violator who satisfied all nine conditions is entitled to a 100 percent reduction to its gravity-based penalty. If the violator satisfies only conditions (2) through (9), then the Audit Policy calls for a 75 percent reduction to the gravity-based penalty. Brookville paid a $202, 000 civil penalty to the US Treasury as part of this settlement and agreed to relabel the locomotives specifying that they are not certified but are legal for sale and to perform any and all responsibilities it would otherwise have had the locomotives been certified by the EPA.

Defendants (1)

• Brookville Equipment CorporationNamed in complaintNamed in settlement

Facilities (1)

• BROOKVILLE EQUIP

  175 EVANS STREET, BROOKVILLE, PA, 15825-9411

  Registry ID: 110001084059

Statutes cited

• CAA 213 — Non-road Engines & Vehicles

Enforcement conclusions (1)

• Brookville Equipmententered 2015-07-30

  Primary law: CAA

  Federal penalty: $202,000

Timeline (4 milestones)

• 2015-07-30Complaint Filed/Proposed Order
• 2015-07-30Final Order Issued
• 2015-08-30Enforcement Action Closed
• 2015-09-14Enforcement Action Data Entered