DC Circ. Tosses EPA Rule Letting Navistar Sell Subpar Engines

Law360, New York (June 12, 2012, 7:26 PM EDT) -- The D.C. Circuit on Tuesday vacated a U.S. Environmental Protection Agency rule that had allowed Navistar International Corp. to pay penalties instead of selling heavy-duty diesel engines that complied with federal regulations, handing a win to Navistar's competitors.

The appeals court found that the EPA's “good cause” exception, which it invoked to allow Navistar to pay nonconformance penalties in order to sell engines that did not meet the EPA's mandated pollution standards, did not satisfy any of the Administrative Procedure Act's statutory criteria for bypassing formal...
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