About half of the money goes toward cleaning up the environment.

Detroit Diesel, a division of Daimler, must pay a total of $28.5 million in penalties to settle Clean Air Act violations with the United States Environmental Protection Agency and Justice Department. The fines amount to a $14 million civil penalty and $14.5 million in payments for reducing diesel engine pollution.

The issue arose when Detroit Diesel sold 7,786 heavy-duty diesel engines for use in trucks and buses in 2010 without having a certificate of conformity from the EPA for the powerplants. The business argued that it started building these mills in 2009 but didn’t complete them until 2010, Automotive News reported. Therefore, the firm felt that they needed to meet the less-stringent emissions standards of the earlier year. The government disagreed and said that it mattered when Detroit Diesel finished assembly, but when the process began.

“This case demonstrates the critical importance of EPA’s vehicle and engine certification program to achieving the goals of the Clean Air Act,” Assistant Attorney General John C. Cruden said in the decision’s announcement. “By not certifying the engines in accordance with the rules, Detroit Diesel Corp. increased pollution and undercut competitors.

The $14.5 million for cleaning up air pollution will focus on low-income areas and places that do not meet Clean Air Act standards. Of the funds, $10.875 million will go towards replacing old school bus diesel engines with powerplants from 2013 or newer. In addition, $3.625 million will replace or re-power the locomotives for moving goods short distances around ports. The settlement won't require Detroit Diesel 7,786 out-of-compliance mills.

Detroit Diesel's resolution with the U.S government is nothing compared to the $14.7-billion settlement that the EPA reached with Volkswagen Group earlier this year over the automaker's diesel scandal. There could be another multi-billion penalty in the near future over the defeat device in the company's 3.0-liter V6 in several luxury models.

Source: Automotive News, Environmental Protection Agency

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