This case involves allegations that Detroit Diesel Corp. (DDC) violated the Clean Air Act by selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards.
DDC manufactures heavy duty diesel engines, axles, and transmissions for the on-highway and vocational markets. The company is a wholly-owned subsidiary of Daimler Trucks North America and is incorporated in the state of Delaware.
EPA alleged that DDC introduced into commerce 7,786 heavy duty diesel engines in model year 2010 that did not have valid EPA-issued certificates of conformity as required by Section 203(a)(1) of the Clean Air Act, 42 U.S.C. ? 7522(a)(1) and that failed to meet 2010 emissions standards.
The Clean Air Act (CAA) requires manufacturers to obtain a certificate of conformity demonstrating compliance with emission standards before introducing an engine into commerce. Certificates of conformity cover only those engines produced within a single model year. A model year for an engine family of engines ends either when the last such engine is produced, or on December 31 of the calendar year for which the model year is named, whichever date is sooner.
Detroit Diesel commenced construction of the heavy duty diesel engines during model year 2009 but did not complete construction of the engines until calendar year 2010. Because Detroit Diesel completed all manufacturing and assembling processes for the engines in 2010, the engines required a certificate