The proposed Consent Decree (CD) for the Genesee and Wyoming Inc. (GWI) case addresses alleged violations of 40 C.F.R. Parts 92 and 1033 (?Control of Emissions from Locomotives?) by GWI at its short-line railroads across the United States. The proposed CD requires GWI to upgrade 11 locomotives to meet current EPA emission standards and permanently destroy 88 locomotives that do not meet current EPA emission standards. It is estimated that the injunctive relief in this settlement will result in approximately 469 tons per year reduction in NOx emissions and 14 tons per year reduction in particulate emissions. A more detailed discussion of environmental benefits is included in the Environmental Benefits Section below. In addition to the compliance costs, the proposed CD also requires GWI to pay a civil penalty of $ 1,350,000. As discussed later in this memorandum, the size of this penalty reflects the fact that many of the violations are outside the statute of limitations.
It is our understanding that the GWI CD will represent the first CAA judicial railroad settlement and hence has additional precedence and significance.