Caterpillar to pay $2.55m to resolve Clean Air Act violations

Christopher Goodfellow - 8 August 2011

Caterpillar has agreed with the Environmental Protection Agency and the US Department of justice to pay a $2.55m fine for violations of the Clean Air Act (CAA). The company, which is based in Peoria, Illinois, will pay $2.04m to the United States and $510,000 to the State of California.

Caterpillar violated the CAA in shipping over 590,000 engines to vehicle manufacturers without exhaust after-treatment devices (ATD), as well as incorrect fuel injector and fuel map settings. Caterpillar also failed to comply with emission control reporting and engine-labelling requirements. As part of the settlement, Caterpillar is to recall the defective engines, in order to install the correct ATDs and re-program the fuel injector and fuel map settings, according to a statement from the EPA.

In addition to the recall, Caterpillar will mitigate the effects of the excess emissions from its engines through permanent retirement of banked emission credits. These emission credits are equivalent to the lifetime excess emissions from the 925 engines that did not comply with EPA standards.

Bridget M. Young, Cat's corporate affairs representative, said: "Caterpillar denies any wrongdoing, but does agree that the decree represents a good faith effort between the parties to resolve their difference and avoid potentially lengthy litigation."

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