GWRSI to Pay Over $40M to Settle Locomotives CAA Breaches


   
   OAKHURST, N.J. (DTN) -- The U.S. Environmental Protection Agency and the 
Department of Justice today announced a settlement with Genesee & Wyoming 
Railroad Services Inc. and numerous affiliated companies for violation of Clean 
Air Act locomotive regulations.

   The complaint, also filed today, alleges that GWRSI's diesel-fuel 
locomotives with rebuilt engines failed to meet applicable EPA emission 
standards, and that GWRSI did not perform required emissions-related 
maintenance or keep records of maintenance performed. GWRSI estimates that it 
will spend approximately $42 million to comply with consent decree requirements 
which will reduce nitrogen oxides from its locomotives by approximately 469 
tons per year and particulate matter emissions by 14 tons per year.

   Due to cost and other considerations, locomotives and their engines are 
typically rebuilt or remanufactured multiple times during their operational 
lives. EPA regulations require that rebuilt locomotive engines use the latest 
technology for that model year locomotive to reduce emissions.

   The consent decree requires GWRSI to comply with this requirement for 
rebuilt engines and take steps to ensure that it does not purchase or sell 
locomotives that have been rebuilt without conforming to applicable emissions 
standards. It also requires that GWRSI timely perform critical 
emissions-related maintenance. To mitigate excess pollutants associated with 
the alleged violations, the settlement requires GWRSI to remove from service 
and permanently destroy 88 older locomotives that are required to meet any EPA 
emission standards. GWRSI has further agreed that it will replace any 
locomotives it has scrapped only with locomotives subject to and meeting EPA 
emission standards. The consent decree requires GWRSI to pay a $1.35 million 
civil penalty.

   Logged in the U.S. District Court for the District of Delaware, the consent 
decree is subject to a 30-day public comment period and final court approval.




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