Notice of Filing of Consent Decree Under the Clean Air Act

DEPARTMENT OF JUSTICE

Notice of Filing of Consent Decree Under the Clean Air Act

Under 28 C.F.R. 50.7, notice is hereby given that on October 22,

1998, a proposed Consent Decree (exception two appendices which will be

the subject of a motion for leave to file under seal) in United States

v. Caterpillar, Inc., Civil Action No. 98-2544 (HHK), was filed with

the United States District Court for the District of Columbia. At the

same time, (1) Caterpillar, Inc. (``Caterpillar'') and the California

Air Resources Board (``CARB'') have concluded a related settlement

agreement that resolves California claims similar to the federal claims

addressed by this proposed Consent Decree; and (2) the United States

filed similar settlements with six other manufacturers of motor vehicle

diesel engines, notice of which is also being published at this time.

The United States has asserted in a civil complaint against

Caterpillar under the Clean Air Act, as amended 42 U.S.C. 7401 et seq.

(``the Act''), that Caterpillar sold, offered for sale, or introduced

or delivered for introduction into commerce, certain heavy duty diesel

engines that are equipped with computer software that alters fuel

injection timing when the engines are in actual use, relative to the

fuel injection timing used to control emissions of oxides of nitrogen

(``NOX'') on the emissions test (the Federal Test Procedure

or ``FTP'') required by U.S. Environmental Protection Agency (``EPA'')

regulations for the sale of motor vehicle engines in the United States.

The United States alleges in its complaint that these computer

strategies have an adverse effect on the engines' emission control

system for NOX, that they were not adequately disclosed to

EPA, that they are emission-control defeat devices prohibited under the

Act, and that these engines are not covered by an EPA Certificate of

Conformity, as required by the Act for motor vehicle engines to be sold

in the United States.

Under the proposed Consent Decree, Caterpillar has agreed to

resolve the United States' claims by, among other things:

(1) Reducing emissions from heavy duty diesel engines and

eliminating the strategies of concern in future production, in

accordance with the schedule set forth in the proposed Decree. This

includes a substantial reduction in emissions by the end of this year,

and a requirement that Caterpillar achieve early compliance (by October

1, 2002) with the more stringent NOX plus nonmethane

hydrocarbon emission standard that would otherwise not apply (under

current law) until January 1, 2004;

(2) Meeting Consent Decree emission limits both on the FTP and on a

supplemental test called the EURO III test, which measures emissions

under steady state conditions;

(3) Meeting ``emission surface limits'' and ``not-to-exceed''

limits that impose specific emissions limits in real-world operating

conditions;

(4) Addressing emissions from engines previously sold and currently

in use by developing and supplying dealers and independent rebuilders

with Low NOX Rebuild Kits, which would be used by engine

rebuilders at the time of rebuild, and would reduce NOX

emissions in rebuilt engines; and

(5) Meeting certain emission limits for nonroad engines one year

earlier than the law engines;

As additional injunctive relief Caterpillar also will spend up to

$35 million to fund projects approved by EPA and CARB that are designed

to reduce NOX and PM emissions. Some of those projects are

already specified in the Consent Decree. Others will be selected after

the close of the public comment period following consideration of, and

review and approval by the United States and CARB, of projects proposed

by Caterpillar, including any ideas submitted by the public.

Caterpillar may receive credit against a portion of this $35 million

obligation in return for securing verifiable reductions in

NOX emissions not otherwise required by this Decree or other

applicable law, but in no event will its obligation to fund projects be

less then $25 million.

Finally, Caterpillar is required to pay $25 million of civil

penalties, twenty-five percent of which will be paid to CARB as part of

its parallel settlement with Caterpillar.

The Department of Justice will receive for a period of thirty (30)

days from the date of this publication comments relating to the Consent

Decree. Comments should be addressed to the Assistant Attorney General

of the Environmental and Natural Resources Division, Department of

Justice, Washington, D.C. 20530, and should

[[Page 59331]]

refer to United States v. Caterpillar, Inc., Civil Action No. 98-2544

(HHK), D.J. Ref. 90-5-2-1-2255.

The Consent Decree may be examined at the Office of the United

States Attorney for the District of Columbia, Judiciary Center Bldg.,

555 Fourth St., N.W., Washington, D.C. 20001; at the Environmental

Protection Agency Library, Reference Desk, Room 2904, 401 M Street,

S.W., Washington, D.C. 20460; and at the Consent Decree Library, 1120 G

Street, N.W., 3rd Floor, Washington, D.C. 20005, 202-624-0892. A copy

of the Consent Decree may be obtained in person or by mail from the

Consent Decree Library, 1120 G Street, N.W., 3RD Floor,

Washington, D.C. 20005. In requesting a copy, please enclose a check in

the amount of $34.50 (25 cents per page reproduction cost) payable to

the Consent Decree Library.

Joel M. Gross,

Chief, Environmental Enforcement Section, Environment and Natural

Resources Division.

[FR Doc. 98-29405 Filed 11-2-98; 8:45 am]

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