This case addresses violations of the Clean Air Act (CAA) by Astec Industries, Inc., a manufacturer of non-road equipment. Astec disclosed under EPA's Final Policy Statement entitled Incentives for Self-policing: Discovery,
Disclosure, Correction, and Prevention of Violations (Audit Policy) that Astec produced 51 pieces of nonroad equipment using Tier I and II engines in excess of their allowance under the Transition Program for Equipment Manufacturers (TPEM).
40 Code of Federal Regulations section 89.102 establishes effective dates by which equipment manufacturers must use current year engines to manufacture their equipment. Section 89.102(d) provides flexibility (the TPEM) for nonroad equipment manufacturers that establishes a percentage-based cap on the number of Tier I and Tier II engines that may be used in the manufacture of new nonroad equipment after the effective date of the Tier II and III requirements.
EPA issued the Audit Policy to encourage regulated entities to conduct voluntary compliance evaluations and to disclose and promptly correct violations. Where the disclosing party establishes that it satisfies all of the conditions set forth in the Audit Policy, EPA will not seek gravity-based civil penalties. EPA concluded that Astec in its self-disclosure met all of the conditions set forth in the Audit Policy.
As part of the settlement with EPA, Astec has agreed to pay a $27,000 civil penalty.