The Environmental Protection Agency (EPA) and Department of Justice have announced a settlement agreement with Manitowoc Company, Inc., and two of its subsidiaries, Grove U.S. L.L.C., and Manitowoc Crane Group Germany GmbH (collectively, “Manitowoc”) for violations of the Clean Air Act’s mobile source emission standards regulations.
The settlement agreement requires Manitowoc to pay a civil penalty of $42.6 million and resolves allegations that the company imported and sold heavy non-road cranes with diesel engines that were not certified to meet applicable Clean Air Act emission standards, and violated related Clean Air Act regulatory requirements, which resulted in the release of excess carcinogenic diesel exhaust containing nitrogen oxides (NOx) and particulate matter.
As part of the agreement, Manitowoc will undertake a project to mitigate harm from the alleged unlawful emissions by retrofitting a short-line locomotive currently in service in the Sparrows Point, Maryland, area. This area is near the Port of Baltimore where Manitowoc had imported cranes with the illegal engines. The pathway of the 70 miles of track includes areas with underserved and overburdened communities. Reducing NOx and particulate matter emissions around the track will improve surrounding air quality.
Retrofitting of the locomotive includes removing, destroying, and replacing the locomotive’s old engine, which was manufactured before locomotive emission standards were in place, with a new engine equipped with present-day emission controls.
The complaint alleges that between 2014 and 2018, Manitowoc imported or introduced into U.S. commerce and sold non-road cranes with at least 1,032 diesel engines that were not covered by EPA-issued certificates of conformity. Many of the engines also did not qualify for a limited exemption. Manitowoc also failed to comply with Clean Air Act labeling, bonding, and reporting requirements.
The proposed consent decree, lodged in the U.S. District Court for the Eastern District of Wisconsin, is subject to a 30-day public comment period and final court approval.