White House Clears EPA Rule to Allow Navistar Engine Sales

The White House approved a regulation that could allow Navistar Inc. to resume selling heavy-duty diesel engines that violate 2010 emissions standards while paying a penalty.

Following the approval by the Office of Management and Budget, the Environmental Protection Agency must publish the rule in the Federal Register before it can take effect. EPA did not return a call asking when rule would be published.

The text of the rule is not public, and OMB did not provide any information about the rule on its regulatory docket except to note that it approved the rule Wednesday after making unspecified changes to it.

The rule would replace an “interim” rule that allowed Navistar to sell noncompliant engines starting in January while paying a $1,919 fine. After some Navistar competitors sued, a federal court overturned that rule in June, saying EPA skipped the proper procedures in issuing it.

Navistar declined to comment on OMB’s action.