Court Vacates Rule That Helped Navistar

June 13, 2012

Navistar will not be permitted to pay fines allowing it to sell diesel truck engines that fail to meet emissions standards, a federal appeals court said.

The Environmental Protection Agency in January made an interim final rule (IFR) that let diesel engine manufacturers pay the penalties in exchange for the right to sell non-compliant engines.

"The EPA took this action without providing formal notice or an opportunity for comment, invoking the 'good cause' exception provided in the Administrative Procedure Act," the U.S. Court of Appeals for the District of Columbia Circuit said in the ruling reported in Reuters. "Because we find that none of the statutory criteria for good cause are satisfied, we vacate the IFR."

Source: Reuters