Brief

On January 16, 2025, the Environmental Protection Agency issued an update regarding Fayat Group to Pay $11M For Violations of the Clean Air Act for Sale of Nonroad Equipment Containing Noncompliant Diesel Engines. The complaint alleges that between 2014 and 2018, Fayat and its subsidiaries imported and sold hundreds of pavers, rollers, and other nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements.

Fayat Group to Pay $11M For Violations of the Clean Air Act for Sale of Nonroad Equipment Containing Noncompliant Diesel Engines

January 16, 2025

Contact Information

EPA Press Office
(press@epa.gov)

WASHINGTON – Today, Jan. 16, the Environmental Protection Agency (EPA) and Department of Justice announced a settlement agreement with Fayat S.A.S, and nine of its subsidiaries — BOMAG GmbH, Bomag Americas Inc., BOMAG (China) Construction Machinery Co. Ltd., MARINI S.p.A., RAVO B.V., Charlatte of America Inc., PTC S.A.S., Secmair S.A.S. and MATHIEU S.A. — for alleged violations of the Clean Air Act’s mobile source emission standards regulations for alleged violations of the Clean Air Act’s mobile source emission standards regulations.

The complaint alleges that, between 2014 and 2018, Fayat and its subsidiaries illegally imported and sold hundreds of pavers, rollers and other nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements. The complaint also alleges that Fayat failed to comply with Clean Air Act labeling and reporting requirements. The agreement requires Fayat to pay a civil penalty of $11 million and requires the company to complete a project to reduce the harm caused by excess nitrogen oxides and particulate matter emissions.

“Fayat’s import of nonroad vehicles with outdated diesel engines violates the Clean Air Act standards for emissions from mobile sources and threatened exposure to harmful diesel air emissions,” said Acting Assistant Administrator Cecil Rodrigues for EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will hold accountable companies that put outdated equipment into commerce that pollutes the air and risks exposing communities to toxic air pollutants.”

“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,” said Assistant Attorney General Todd Kim of the Justice Department’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.”

In addition to paying a civil penalty, Fayat will, as part of the agreement, undertake a project to reduce the harm from the emissions. The company will retrofit a tugboat currently in service in Mobile, AL. Retrofitting the tugboat includes removing and destroying two engines and auxiliary generators and replacing them with two new engines and two new generators that meet current emission controls.

The proposed consent decree, lodged in the U.S. District Court for the District of Columbia, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available on the Justice Department’s Proposed Consent Decree webpage.

More information regarding this settlement is available from the Fayat Clean Air Act Violations Settlement Summary.

Highlights content goes here...

Purpose

The Fayat Group, a French company, has agreed to pay a civil penalty of $11 million as part of a settlement with the Environmental Protection Agency (EPA) and the Department of Justice for alleged violations of the Clean Air Act’s mobile source emission standards regulations. The settlement follows a complaint alleging that between 2014 and 2018, Fayat and its subsidiaries imported and sold hundreds of nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements.

The agreement requires Fayat to pay the $11 million penalty and complete a project to reduce harm caused by excess nitrogen oxides and particulate matter emissions. The settlement also includes a provision for Fayat to retrofit a tugboat currently in service in Mobile, Alabama, with new engines and generators that meet current emission controls.

Effects on Industry

The settlement has significant implications for the nonroad equipment industry, as it highlights the importance of complying with Clean Air Act regulations. Companies operating in this sector must ensure that their products meet emission standards to avoid penalties and reputational damage. The settlement also demonstrates the EPA’s commitment to enforcing environmental regulations and protecting public health.

The $11 million penalty is a substantial fine, demonstrating the serious consequences of noncompliance. Additionally, the requirement for Fayat to retrofit the tugboat with new engines and generators that meet current emission controls sets a precedent for companies to take proactive steps to reduce emissions in their operations.

Relevant Stakeholders

This settlement affects various stakeholders, including:

  • Environmental Protection Agency (EPA): The EPA is responsible for enforcing environmental regulations, including the Clean Air Act. The agency’s actions demonstrate its commitment to protecting public health and the environment.
  • Fayat Group: As the primary defendant in this case, Fayat must pay the $11 million penalty and complete the project to retrofit the tugboat with new engines and generators that meet current emission controls.
  • Nonroad equipment industry: Companies operating in this sector must ensure their products comply with Clean Air Act regulations to avoid penalties and reputational damage.
  • Consumers: The settlement ultimately benefits consumers by ensuring that nonroad equipment sold in the United States meets emission standards, reducing exposure to harmful air pollutants.

Next Steps

To comply with or respond to this update, relevant stakeholders must take the following actions:

  • Companies operating in the nonroad equipment industry: Ensure their products meet Clean Air Act regulations to avoid penalties and reputational damage.
  • Fayat Group: Pay the $11 million penalty and complete the project to retrofit the tugboat with new engines and generators that meet current emission controls.
  • Public comment period: The proposed consent decree is subject to a public comment period, during which individuals can submit comments on the settlement. Information on submitting comments is available on the Justice Department’s Proposed Consent Decree webpage.

Any Other Relevant Information

Additional details about this settlement include:

  • Historical context: This settlement follows a complaint filed in 2024 alleging that Fayat and its subsidiaries imported and sold hundreds of nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements.
  • Related future actions: The EPA and Department of Justice may pursue additional enforcement actions against companies operating in the nonroad equipment industry if they fail to comply with Clean Air Act regulations.
  • Historical context: This settlement follows a complaint filed in 2024 alleging that Fayat and its subsidiaries imported and sold hundreds of nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements.

Environmental Protection Agency

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