Judge Will Review Diesel Engine Makers’ Settlement With EPA

Before the $1 billion settlement negotiated by diesel engine manufacturers, the Environmental Protection Agency and the Department of Justice is final, it must past a judicial review.

Also, EPA will consider public input on the deal.

Even when it does become official, the agreement likely will face legal challenges.

EPA alleges that the engine manufacturers programmed their engines’ computers to pass certification tests but let the engines produce illegal levels of emissions on the road. To settle these claims, Caterpillar Inc., Cummins Engine Co., Detroit Diesel Corp., Mack Trucks, Navistar International Transportation Corp. and Volvo Truck Corp. agreed to pay record fines and submit to tighter clean air standards.

After the agreement is published in the Federal Register, the public will have 30 days to comment on it. If adverse comments warrant, the agreement could be changed, EPA officials said, but only with the engine makers’ consent.

American Trucking Associations will let the EPA know about the broad public impact it will have, said ATA President Walter B. McCormick Jr.

"We are now moving into the second phase of this deal, the phase in which those who are affected have the opportunity to say there are broader tradeoffs here than simply engines and emissions," Mr. McCormick said. "There are broader tradeoffs that effect the entire American economy, and those need to be on-scale and balanced."

Once EPA reviews the public comments, it will submit the decree to Judge Henry H. Kennedy Jr. of the U.S. District Court in Washington, D.C. He can’t change specific provisions of the agreement, EPA lawyers said, but only accept it or reject it whole. He can ask the parties to renegotiate.

Mr. Kennedy presided over earlier legal actions involved with this settlement, when negotiations between Mack Trucks and the EPA broke off and the two sides traded lawsuits.

Environmental groups have indicated they will challenge the settlement. The Sierra Club said the agreement isn’t strict enough, and argues that the Clean Air Act requires EPA to issue a recall order.

The Natural Resources Defense Council is considering filing suit against the agreement as well. "We want to look at all the documents. We’re really going over the agreement with a fine tooth comb and we want to talk to the agency to hear their answers to our questions and then we’ll make a decision," said Richard Kassel, a senior attorney with NRDC.

ennis Vacco, attorney general of the state of New York, also is looking into the settlement. His office issued subpoenas to the engine manufacturers to get documents from them that relate to the EPA allegations.

"The purpose of getting those documents is so we can evaluate the companies violations and the impact those violations could have on the environment here in New York," said Jared Snyder, a lawyer in the attorney general’s office.

There are no plans to sue at this point however. "Right now we’re just looking into things," Mr. Snyder said.