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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Detroit Diesel Corp. to Pay Penalty and Reduce Exposure to Harmful Diesel Exhaust to Resolve Clean Air Act Violations

WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) today announced a settlement with Detroit Diesel Corp. that resolves alleged violations of the Clean Air Act for selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards. Under the settlement, Detroit Diesel will spend $14.5 million on projects to reduce nitrogen oxide and other pollutants, including replacing high-polluting diesel school buses and locomotive engines with models that meet current emissions standards. Detroit Diesel will also pay a $14 million civil penalty.

The government’s complaint, filed today along with the settlement, alleges that Detroit Diesel violated the Clean Air Act by introducing into commerce 7,786 heavy-duty diesel engines for use in trucks and buses in model year 2010 without a valid EPA-issued certificate of conformity demonstrating conformance with Clean Air Act standards to control nitrogen oxide (NOx) emissions. The complaint also alleges that the engines did not conform to emission standards applicable to model year 2010 engines. The school bus and locomotive replacement projects will reduce ambient air levels of NOx and other pollutants. In addition, the school bus program will improve air quality inside school buses by reducing exposure to diesel exhaust. Diesel exhaust poses a lung cancer hazard for people and can cause respiratory effects such as asthma. Detroit Diesel intends to target areas for the replacement projects that do not meet Clean Air Act standards for certain air pollutants and areas with low-income communities.

“Today’s settlement protects clean air for many communities and vulnerable people across the country, including school children,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will continue to hold engine manufacturers accountable for meeting emissions standards that protect public health and the air we breathe.”

“This case demonstrates the critical importance of EPA’s vehicle and engine certification program to achieving the goals of the Clean Air Act,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “By not certifying the engines in accordance with the rules, Detroit Diesel Corp. increased pollution and undercut competitors. We will uphold the integrity of that program by holding accountable those that skirt the rules.”

The Clean Air Act requires manufacturers to obtain a certificate of conformity demonstrating compliance with emission standards before introducing an engine into commerce. Certificates of conformity cover only those engines produced within a single model year. A model year for a family of engines ends either when the last such engine is produced, or on December 31 of the calendar year for which the model year is named, whichever date is sooner.

The complaint alleges that Detroit Diesel commenced construction of the heavy-duty diesel engines during model year 2009, but did not complete construction of the engines until calendar year 2010. Because Detroit Diesel completed all manufacturing and assembling processes for the engines in 2010, the complaint alleges that the engines were produced in 2010 and required a certificate of conformity demonstrating compliance with 2010 emission standards. From approximately January 5, 2010 through approximately June 1, 2010, Detroit Diesel sold the engines for on-highway use in heavy duty vehicles. Because the engines were not certified to the more stringent 2010 NOx emission standards, Detroit Diesel’s introduction of these engines resulted in excess emissions. The engines were manufactured in Detroit, Michigan, but were introduced into commerce across the country.

Under the consent decree, Detroit Diesel will be required to implement projects to replace high-polluting school buses with school buses that meet current federal emissions standards and replace or repower high-polluting switch locomotives. Detroit Diesel is also required to post data and information about the clean diesel projects on a public website.

Detroit Diesel Corp. is a Michigan corporation that began as a diesel engine manufacturing division of the General Motors Corporation in 1938. It is currently a wholly-owned subsidiary of Daimler Trucks North America. Detroit Diesel manufactures heavy-duty diesel engines, axles and transmissions for the on-highway and vocational truck markets.

The consent decree was lodged in the District Court for the District of Columbia. Notice of the lodging will appear in the Federal Register allowing for a public comment period of not less than 30 days before the consent decree can be entered by the court as final judgement. The $14 million civil penalty is due 30 days after the effective date of the consent decree.