Engine builders agree to reduce emissions

By Staff -- Logistics Management, 12/1/1998

In a decision that will cost them millions of dollars, six diesel-engine manufacturers have reached agreement with the federal Environmental Protection Agency (EPA) to begin phasing in new diesel-engine emissions regulations. They also agreed to meet new, tougher emissions standards 15 months ahead of the scheduled date in 2004.

The agreement came after the EPA threatened legal action against the manufacturers for what the agency charged were violations of the Clean Air Act and EPA emissions regulations during the last four to 10 years. The EPA alleged that the engine makers used computerized devices that met clean-air standards in laboratory testing but which adjusted during actual truck operations to improve engine efficiency while allowing emissions to exceed the standards.

The engine manufacturers disputed those charges, but agreed to the settlement to avoid the risks and costs of protracted litigation. In a press release, Jim Henderson, chief executive officer and chairman of Cummins Engine Co., said, "We firmly believe that Cummins has been in full compliance with both the spirit and the letter of the Clean Air Act and EPA emissions regulations, and that we would prevail in court." He charged that the EPA and the California Air Resources Board understood the strategies the manufacturers were using to control emissions and had never questioned them until last year.

In addition to Cummins, Caterpillar Inc., Mack Trucks Inc., Detroit Diesel, Volvo Truck Corp., and Navistar signed the agreement. The manufacturers agreed to civil penalties totaling $84 million. The pact also requires the manufacturers to spend $835 million to produce cleaner engines and another $100 million for other environmental projects.

Trucking interests' worst fears were alleviated when EPA decided it would not order a recall of trucks already on the road. Henderson said the new standards could be met without a major disruption for the trucking industry.

The American Trucking Associations projects that the new standards could result in reduced fuel economy for new trucks, translating into higher operating costs for motor carriers.