Caterpillar Inc. to Pay $2.55 Million Penalty to Resolve Clean Air Act Violations

WASHINGTON Caterpillar Inc. has agreed to pay a $2.55 million civil penalty to settle alleged Clean Air Act violations for shipping more than 590,000 highway and non-road engines without the correct emissions controls, the Justice Department and Environmental Protection Agency (EPA) announced today. Caterpillar also allegedly failed to comply with emission control reporting and engine-labeling requirements. Engines operating without proper emissions controls can emit excess nitrogen oxides (NOx), particulate matter and other air pollutants that impact peoples health, potentially causing respiratory illnesses and aggravating asthma. The Clean Air Act requires the use of certified after-treatment devices (ATDs) 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. Correct fuel injector and fuel map settings are also crucial for proper engine emission control. Caterpillar allegedly shipped over 590,000 engines to vehicle assemblers without the correct ATDs and with improperly configured fuel injector and map settings. In some cases, the mis-configured engines were incorporated into vehicles which resulted in excess emissions of NOx and particulate matter into the environment. The consent decree requires Caterpillar to continue its recall of non-compliant engines to install the correct ATDs and correct the fuel injector and fuel map settings. In addition to the recall, Caterpillar will mitigate the effects of the excess emissions from the non-conforming engines through permanent retirement of banked emission credits. Caterpillar will also improve its reporting of emission control system defects, as required under the Clean Air Act. The state of California, through the Air Resources Board, is also settling its claims for violations arising from the sale in California of improperly configured engines. California will receive $510,000 of the civil penalty.