EPA v. Bandit Industries

Case summary

This case concerns allegations that Bandit Industries, Inc., committed 2,552 violations of the Clean Air Act ( CAA ) due to Bandit's failure to comply with the CAA's Transition Program for Equipment Manufacturers (TPEM). Bandit, a manufacturer of self-powered, industrial-strength wood and waste processing equipment, such as whole tree wood chippers is based in Remus, Michigan. Bandit allegedly sold certain non-road compression-ignition, diesel-fueled engines and equipment that were neither covered by the certificates of conformity required under Section 203(a)(1) of the CAA, nor exempt from that certification requirement because Bandit's engines and equipment failed to meet the TPEM regulations. Additionally, at the outset of its participation in TPEM, Bandit allegedly stockpiled prior model year engines in exceedance of normal inventory. The CAA prohibits stockpiling engines that meet older emission standards before a new emission standard takes effect. To meet current diesel-fuel Tier 4 emission standards, equipment manufacturers generally modify their equipment designs to accommodate engines with additional and improved emissions control devices. In the TPEM program, EPA adopted transition provisions for equipment manufacturers to provide flexibility for equipment manufacturers to selectively delay compliance with current emissions standards for up to seven years. Bandit allegedly did not transition to the current emissions standards in time and sold equipment with older noncompliant engines, creating a competitive advantage over equipment manufacturers offering compliant Emission standards for diesel engines and equipment reduce emissions of, among other pollutants, particulate matter and nitrogen oxides (NOx). The key health effects categories associated with ambient particulate matter include premature mortality, aggravation of respiratory and cardiovascular disease, aggravated asthma and acute respiratory symptoms including aggravated coughing and difficult or painful breathing, chronic bronchitis and decreased lung function that can be experienced as shortness of breath. Symptoms of immunological effects such as wheezing and increased allergenicity have also been observed. Diesel exhaust particulate matter is of special concern. The EPA's Clean Air Scientific Advisory Committee has concluded that diesel exhaust is likely to be carcinogenic to humans. In addition to these health effects, particulate matter generally causes damage to, and soiling of, commonly used building materials and culturally important items such as statues and works of art. It is also a major cause of substantial visibility impairment in many parts of the United States. NOx pollution contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. Nitrogen dioxide formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children. As part of the settlement, Bandit agreed to pay a $3 million civil penalty to the US Treasury. For more information, see https://www.epa.gov/enforcement/bandit-industries-inc-clean-air-act-settlement.

Defendants (1)

• Bandit Industries, Inc.Named in complaintNamed in settlement

Facilities (4)

• BANDIT INDUSTRIES INC

  6750 W MILLBROOK RD, REMUS, MI, 49340

  Registry ID: 110002027501

• BANDIT INDUSTRIES INC

  6750 W MILLBROOK RD, REMUS, MI, 49340

  Registry ID: 110002027501

• BANDIT INDUSTRIES INC

  6750 W MILLBROOK RD, REMUS, MI, 49340

  Registry ID: 110002027501

• BANDIT INDUSTRIES INC

  6750 W MILLBROOK RD, REMUS, MI, 49340

  Registry ID: 110002027501

Statutes cited

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

Enforcement conclusions (1)

• Bandit Industriesentered 2017-01-18

  Primary law: CAA

  Federal penalty: $3,000,000

Timeline (6 milestones)

• 2015-10-29Referred To Dept Of Justice
• 2016-04-08Enforcement Action Data Entered
• 2017-01-18Final Order Entered
• 2017-01-18Final Order Lodged
• 2017-01-18Complaint Filed With Court
• 2019-04-04Enforcement Action Closed