FOR IMMEDIATE RELEASE
AG
THURSDAY, OCTOBER 22, 1998 (
202) 616-2765
WWW.USDOJ.GOV TDD
(202) 514-1888PREPARED REMARKS OF ATTORNEY GENERAL JANET RENO
ON DOJ, EPA SETTLEMENT WITH DIESEL ENGINE MANUFACTURERS
"Administrator Browner, U.S. Attorney Lewis and I are pleased to announce one of the most important federal environmental enforcement actions in American history. The Department of Justice and the Environmental Protection Agency have reached an unprecedented Clean Air Act settlement with the seven largest manufacturers of heavy duty diesel engines, representing 95 percent of the U.S. heavy diesel market. The settlement is expected to cost the companies more than one billion dollars for corrective action, future improvements and record fines.
"This is an extraordinary settlement. The companies that dominate this single industry are coming together to correct their environmental violations. It is the largest settlement in the history of the Clean Air Act.
"This settlement is good news for the American people. The diesel engine industry has illegally poured millions of tons of pollution into the air. It's time for the diesel engine industry to clean up its act -- and clean up our air.
"As a result of today's agreement, over the next five years emissions from diesel engines will be reduced by one-third from their current level. America will breath cleaner air because of this settlement.
"Today's settlement is as comprehensive as it is historic. Most notably, the diesel engine industry will take new steps to reduce emissions, build cleaner engines and refit existing ones. In the future, the diesel engine industry also will test their engines carefully to ensure that they stay clean.
"Specifically, the settlement will resolve charges that the companies -- Caterpillar, Cummins Engine, Detroit Diesel, Mack Truck, Navistar, Renault and Volvo,-- violated the Clean Air Act by installing in their diesel engines computer software that masks illegal emissions from inspectors.
"During emissions tests, the software kept engine emissions within legal limits. But on the road, the software let the engine emit illegal levels of Nitrogen Oxides, or "NOx." NOx contributes to smog. Smog reduces lung capacity -- especially in children and the elderly -- and aggravates asthma and bronchitis. NOx also causes acid rain.
"These violations led to emissions many times the legal limit. In 1998 alone, diesel engines emitted more than 1.3 million tons of excess NOx -- well above the 2 million tons they are permitted to release each year, and an average of almost 10 pounds for every man, woman and child in America.
"Pollution from trucks and cars causes nearly one-half of all air pollution in the United States. That's why this Administration has made truck and auto pollution such a high priority under the Clean Air Act. And that's why these settlements also call for unprecedented steps to protect our environment and public health.
"Under the settlement, the companies have agreed to three actions:
"First, together they will spend at least $850 million to introduce cleaner new engines, rebuild older engines to cleaner levels, recall pickup trucks that have defeat devices installed, and conduct new emissions testing. And starting in 1999, all diesel engines produced will emit a dramatically smaller amount of NOx, preventing NOx emissions totaling 75 million tons over the next 27 years.
"Second, together they will spend $109.5 million on other projects to cut NOx emissions, including research and development on low emission engines that use new technologies and cleaner fuels.
"Finally, these companies violated our environmental laws, and they must pay a price. Together, they will pay $83.4 million dollars in civil penalties. One fourth of that will go to the state of California, which has a related settlement with the companies.
"Every polluter in America had better take note of these record penalties -- if you pollute America's air, you are going to pay a very high price. The plain fact is that these companies needlessly cost themselves millions of extra dollars by not complying with the law in the first place. Quite simply, an ounce of compliance is worth a pound of penalties.
"Every American should be pleased with this agreement. Pollution from diesel engines will be significantly reduced because of what we have done today. That means every American -- most importantly our children and our elderly -- will have cleaner air to breathe. And polluters are on notice that our environmental laws will be enforced.
"I am now pleased to introduce Administrator Browner, and to welcome her again to the Justice Department."
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