http://www.washingtonpost.com/wp-dyn/articles/A28611-2002Jul31.html
(washingtonpost.com)

Bid to Delay New Emissions Rule Fails
Companies Face Penalties for Not Complying With Tough Standards for 
Diesel Trucks

By Eric Pianin
Washington Post Staff Writer
Thursday, August 1, 2002; Page A08

The White House yesterday rejected a plea from House Speaker J. 
Dennis Hastert (R-Ill.) and other lawmakers to postpone a tough new 
anti-pollution standard for long-haul diesel trucks that will provide 
stiff penalties for companies that don't meet the deadline for 
compliance.

Hastert and dozens of other House members had turned to the White 
House for help after Environmental Protection Agency Administrator 
Christine Todd Whitman told them a week ago that the administration 
would implement the rule to sharply reduce health-threatening 
nitrogen oxide emissions from diesel engines.

Senior officials of the Office of Management and Budget and the EPA 
confirmed the decision, with one saying, "We looked at the science 
and heard from as many stakes-holders as possible . . . and believe 
that moving forward is the right thing to do."

Officials of the American Lung Association and key environmental 
groups recently wrote to President Bush urging him to hold the diesel 
engine manufacturers "accountable for over a decade of corporate 
irresponsibility that continues to impact public health." The White 
House cited the letter yesterday as a factor in its decision.

At least two manufacturers of diesel engines -- Caterpillar Inc. of 
Peoria, Ill., and Detroit Diesel Corp. -- face millions of dollars in 
penalties because they cannot meet an Oct. 1 deadline for complying 
with the new standards. They were among six major manufacturers that 
signed consent decrees with the Justice Department in 1998 agreeing 
to meet the new standard by the end of this year. The consent 
agreements settled government allegations that the companies had 
intentionally evaded emission standards for over a decade by 
installing devices that turned off pollution controls while their 
trucks were on the road but not during EPA's certification tests.

Hastert was drawn into the dispute by Caterpillar, a significant 
contributor to GOP campaigns. A Hastert spokesman said recently that 
Caterpillar "is a very important company, not only in Illinois but in 
the country," and that Hastert and other lawmakers were "trying to 
get some common-sense regulation."

Caterpillar officials say it would be unfair for the government to 
implement the new rule this fall because manufacturers haven't been 
given sufficient time to test new engines that cause less pollution 
and because the added cost of developing those engines will seriously 
harm an industry already reeling from years of declining sales.

The company complained that the EPA has proposed a sliding-scale 
penalty system of fines that is three times greater than originally 
discussed. According to the EPA, the penalties range from a few 
hundred dollars -- for an engine close to meeting the new emission 
standards -- to more than $12,000 for an engine far from compliance.

But White House regulatory czar John Graham agreed with EPA and 
Justice Department officials, who concluded that the new rule is 
essential to protecting public health and that Caterpillar is 
exaggerating the potential economic impact. A senior Justice 
Department official said "a deal's a deal," and companies that fail 
to comply with the deadline must face the consequences. Two other 
manufacturers, Cummins Inc. and Mack Trucks Inc., have developed 
engines that satisfy the new standards.

"Obviously we think it's the wrong decision, given that most of the 
companies haven't had a chance to adequately test the engines," 
Hastert spokesman John Feehery said. "There could be safety concerns, 
but we will have to see what they say before making any official 
reaction."

Rep. Mac Collins (R-Ga.), a former trucking company owner, and other 
lawmakers have vowed to introduce legislation to sidetrack the 
regulation or soften the penalties.

© 2002 The Washington Post Company





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