Crane Company Manitowoc to Pay $42.6M for Clean Air Act Violations for Sale of Noncompliant Diesel Engines in Heavy Duty Cranes

The Justice Department and the Environmental Protection Agency (EPA) announced a settlement agreement today with Manitowoc Company Inc. and two of its subsidiaries, Grove U.S. L.L.C., and Manitowoc Crane Group Germany GMBH (collectively, Manitowoc), for violations of the Clean Air Act’s mobile source emission standards regulations.

The settlement agreement requires Manitowoc to pay a civil penalty of $42.6 million and resolves allegations that the company imported and sold heavy nonroad cranes with diesel engines that were not certified to meet applicable Clean Air Act emission standards, and violated related Clean Air Act regulatory requirements which resulted in the release of excess carcinogenic diesel exhaust containing nitrogen oxides (NOx) and particulate matter.

“Manitowoc’s sale and importation of cranes with uncertified engines violated Clean Air Act requirements designed to protect public health from harmful diesel emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “This settlement highlights our commitment to holding violators of the Clean Air Act accountable and will result in a tangible reduction in emissions in the Sparrows Point and Port of Baltimore area.”

“For years, Manitowoc imported and sold diesel engines that do not meet Clean Air Act emission standards, even after EPA made clear that such brazen conduct would not be tolerated,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Diesel exhaust is one of the dirtiest forms of air pollution and is linked to serious health conditions, including asthma and respiratory illness. This settlement requires Manitowoc to complete a project near the Port of Baltimore to improve air quality and once again makes clear that EPA will hold companies accountable when they sell illegal diesel engines.”

As part of the agreement, Manitowoc will undertake a project to mitigate harm from the alleged unlawful emissions by retrofitting a short-line locomotive currently in service in the Sparrows Point, Maryland, area. This area is near the Port of Baltimore where Manitowoc had imported cranes with the illegal engines. The pathway of the 70 miles of track includes areas with underserved and overburdened communities. Reducing NOx and particulate matter emissions around the track will improve surrounding air quality.

Retrofitting of the locomotive includes removing, destroying and replacing the locomotive’s old engine, which was manufactured before locomotive emission standards were in place, with a new engine equipped with present-day emission controls.

The complaint alleges that, between 2014 and 2018, Manitowoc imported or introduced into U.S. commerce and sold nonroad cranes with at least 1,032 diesel engines that were not covered by EPA-issued certificates of conformity. Many of the engines also did not qualify for a limited exemption. Manitowoc also failed to comply with Clean Air Act labeling, bonding and reporting requirements. 

More information is available on the Manitowoc Clean Air Act Settlement Summary web page.

The proposed consent decree, lodged in the U.S. District Court for the Eastern District of Wisconsin, is subject to a 30-day public comment period and final court approval. Information on submitting comments and to access the settlement agreement is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

EPA investigated the case.

Attorneys with ENRD’s Environmental Enforcement Section are handling the case.