Caterpillar Inc. to pay $2.55 million penality, recall 590K engines

Manufacturing company Caterpillar Inc. will pay a $2.55-million penalty and recall more than 590,000 engines that fail to meet emission control standards under the Clean Air Act, according to the U.S. Environmental Protection Agency and the U.S. Department of Justice, which settled with the company last week.

The EPA said the company did not report emission controls or correctly label the engines built between 2001-2005. Failing to comply with emission controls allows engines to release excess nitrogen oxides, particulate matter and other air pollutants that cause respiratory illness and aggravate asthma. 

"The enforcement of vehicle emissions standards, labeling and reporting requirements is critical to protecting the air we breathe and ensuring that companies play by the rules,” said Cynthia Giles, assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance. The “settlement will protect public health and create a level playing field for companies that meet their environmental obligations.”

Of the $2.55-million fine, Caterpillar will pay $2.04 million to the U.S. government and $510,000 to California for the sale of improperly configured engines in the state, the EPA said.