WASHINGTON, D.C. – In a decisive move underscoring the U.S. government’s commitment to enforcing environmental regulations, the Department of Justice (DOJ) and the Environmental Protection Agency (EPA) have announced a landmark settlement agreement with French industrial conglomerate Fayat S.A.S. and nine of its subsidiaries. The agreement, which includes a hefty $11 million civil penalty and a mandatory environmental mitigation project, resolves allegations that Fayat and its subsidiaries flagrantly violated the Clean Air Act by importing and selling hundreds of non-compliant, polluting pieces of heavy construction equipment into the United States between 2014 and 2018. This case marks a significant victory for environmental protection and public health, sending a clear message to corporations that circumventing U.S. emission standards will not be tolerated.
A Pattern of Disregard: Fayat’s Multi-Year Violation of Emission Standards
The complaint, lodged in the U.S. District Court for the District of Columbia, paints a picture of a company that systematically disregarded critical environmental regulations for years. Fayat, a global leader in the manufacture and distribution of construction equipment, through its subsidiaries including BOMAG GmbH, Bomag Americas Inc., MARINI S.p.A., and others, allegedly imported and sold hundreds of pavers, rollers, and other nonroad equipment equipped with outdated diesel engines that failed to meet the stringent emission standards mandated by the Clean Air Act. These standards are designed to limit the release of harmful pollutants, including nitrogen oxides (NOx) and particulate matter (PM), which are known to contribute to respiratory illnesses, cardiovascular problems, and other serious health issues, as well as exacerbate climate change.
The equipment in question, used in road construction and other heavy-duty applications, failed to adhere to the emission control requirements, which can vary by engine type and horsepower. This means that the imported machinery emitted significantly higher levels of harmful pollutants than allowed by law, directly impacting air quality and posing a risk to public health. The alleged violations occurred between 2014 and 2018. The exact number of pieces of equipment was reported to be in the hundreds.
Furthermore, the complaint alleges that Fayat failed to comply with the Clean Air Act’s labeling and reporting requirements. This lack of transparency further complicated efforts by the EPA to track and regulate the emissions of these noncompliant machines. Proper labeling is crucial for identifying equipment that meets the required emission standards, while accurate reporting enables authorities to monitor compliance and identify potential violations.
The $11 Million Price Tag: Holding Fayat Accountable
The settlement agreement reached between the DOJ, the EPA, and Fayat is a decisive blow against corporate environmental negligence. The $11 million civil penalty imposed on Fayat is one of the largest ever levied for violations of the Clean Air Act’s mobile source emission standards. This substantial penalty underscores the seriousness of Fayat’s actions and serves as a powerful deterrent to other companies that might be tempted to cut corners on environmental compliance.
“Fayat failed to ensure that the equipment it introduced into the United States market complied with Clean Air Act requirements designed to protect the public’s health from harmful emissions,” stated Assistant Attorney General Todd Kim of the DOJ’s Environment and Natural Resources Division (ENRD). “We will not tolerate violations of Clean Air Act standards. The settlement requires both a substantial civil penalty and a project that will reduce emissions in the Mobile, Alabama, area and contribute to improved public health.”
Acting Assistant Administrator Cecil Rodrigues for EPA’s Office of Enforcement and Compliance Assurance echoed this sentiment, highlighting the public health risks posed by Fayat’s actions. “Fayat’s import of nonroad vehicles with outdated diesel engines violates the Clean Air Act standards for emissions from mobile sources and threatened exposure to harmful diesel air emissions,” Rodrigues said. “Today’s announcement demonstrates that EPA will hold accountable companies that put outdated equipment into commerce that pollutes the air and risks exposing communities to toxic air pollutants.”
Beyond the Fine: A Project to Mitigate Environmental Harm
In addition to the substantial financial penalty, Fayat is required to undertake a specific environmental mitigation project aimed at reducing the harm caused by its past violations. This project focuses on retrofitting a tugboat currently in service in Mobile, Alabama. Tugboats are known for their significant emissions, and this particular project represents a targeted effort to address the localized air quality impacts of Fayat’s actions.
The retrofit will involve the removal and destruction of two existing main engines and two auxiliary generators, replacing them with two new, modern engines and two new generators that meet the most stringent current emission control standards. This upgrade will result in a substantial reduction of NOx and PM emissions from the tugboat, contributing to cleaner air in the Mobile, Alabama, area. The choice of Mobile, Alabama, is particularly significant, as it is a major port city and industrial hub, where air quality is already a concern.
The project to reduce the harm from emissions will cost an unspecified amount, but it adds to the total price Fayat will pay for its years of Clean Air Act Violations.
The Implications: A Clear Message to Industry
This settlement sends a clear and unambiguous message to the construction equipment industry and beyond: compliance with environmental regulations is not optional. The EPA and DOJ have demonstrated their commitment to vigorously enforcing the Clean Air Act and holding companies accountable for their actions. This case serves as a stark reminder that cutting corners on emission standards can lead to severe financial penalties, reputational damage, and mandatory mitigation projects.
The Fayat case also highlights the importance of proactive compliance measures. Companies operating in the United States must be aware of and adhere to all applicable environmental regulations, including those governing mobile source emissions. This includes ensuring that imported equipment meets U.S. emission standards, properly labeling equipment, and maintaining accurate records.
Public Comment and Final Approval
The proposed consent decree, which outlines the terms of the settlement agreement, is subject to a public comment period before it receives final approval from the U.S. District Court for the District of Columbia. This period allows stakeholders, including members of the public and environmental advocacy groups, to review the proposed settlement and submit their comments to the court. This process ensures transparency and public accountability in the enforcement of environmental laws.
Information on how to submit comments and access the full settlement agreement is available on the Department of Justice’s website.
Conclusion: A Victory for Clean Air and Public Health
The settlement agreement with Fayat represents a significant victory for the EPA, the DOJ, and the American public. It underscores the government’s commitment to protecting air quality and public health by enforcing the Clean Air Act. The substantial penalty and the mandatory mitigation project serve as a powerful deterrent to other companies that might be tempted to prioritize profits over environmental compliance. This case sets a strong precedent for future enforcement actions and reinforces the importance of rigorous adherence to environmental regulations in all industries. It’s a clear win for clean air and a step towards a healthier environment for all Americans.
