This case concerns allegations that Bandit Industries, Inc., committed 2,552 violations of the Clean Air Act ( CAA ) due to Bandit's failure to comply with the CAA's Transition Program for Equipment Manufacturers (TPEM). Bandit, a manufacturer of self-powered, industrial-strength wood and waste processing equipment, such as whole tree wood chippers is based in Remus, Michigan.
Bandit allegedly sold certain non-road compression-ignition, diesel-fueled engines and equipment that were neither covered by the certificates of conformity required under Section 203(a)(1) of the CAA, nor exempt from that certification requirement because Bandit's engines and equipment failed to meet the TPEM regulations. Additionally, at the outset of its participation in TPEM, Bandit allegedly stockpiled prior model year engines in exceedance of normal inventory. The CAA prohibits stockpiling engines that meet older emission standards before a new emission standard takes effect.
To meet current diesel-fuel Tier 4 emission standards, equipment manufacturers generally modify their equipment designs to accommodate engines with additional and improved emissions control devices. In the TPEM program, EPA adopted transition provisions for equipment manufacturers to provide flexibility for equipment manufacturers to selectively delay compliance with current emissions standards for up to seven years. Bandit allegedly did not transition to the current emissions standards in time and sold equipment with