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MTU America Inc. Clean Air Act Settlement

(Washington, DC - March 24, 2015) MTU America Inc. (MTU), a subsidiary of Rolls-Royce Power Systems AG, will implement an auditing program to ensure proper emissions testing and compliance with federal emission standards for its heavy-duty diesel non-road engines as part of a settlement to resolve alleged Clean Air Act violations, the U.S. Environmental Protection Agency (EPA) and the Department of Justice and announced today.

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Overview of Company

MTU America Inc. (MTU), formerly known as Tognum America, Inc., and prior to that MTU Detroit Diesel, Inc., is a manufacturer of nonroad, off-highway engines for the North American market for locomotive, marine, construction, and defense applications. MTU is based in Novi, Michigan and is a wholly-owned subsidiary of Rolls Royce Power Systems AG.

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Overview of Case/Violations

The settlement resolves an enforcement action by EPA and the U.S. Department of Justice against MTU for Clean Air Act (CAA) violations involving MTU’s failure to comply with certain testing, certification and reporting requirements during the certification durability testing of MTU’s Series 4000 engines and the sale of 895 engines not covered by a valid EPA certificate of conformity as required by the CAA.

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The consent decree requires MTU to undergo an external audit of its engine certification activities once a year for a period of three years to monitor and evaluate MTU’s compliance with the Act’s engine testing and certification requirements.  These audits will be conducted by an EPA-approved third-party auditor.

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Pollutant Impacts

The third-party audit required by the consent decree will reduce the likelihood of errors that could result in engines not meeting the applicable standards and the potential for associated emissions increases. Because the consent decree requires implementation of certain institutional and systemic practices that increase the likelihood of compliance with the engine certificate and testing regulations, these benefits are likely to accrue for many years after termination of the consent decree.

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Health and Environmental Benefits

EPA was not able to determine that there was any actual or potential health or environmental harm associated with MTU’s testing violations, though engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground-level ozone or smog.

These violations do, however, undermine the integrity of the mobile source regulations. Proper testing, recordkeeping, reporting, and certification of engines provide the foundation of EPA’s engine compliance program. MTU’s demonstrated non-compliance with administrative and analytical requirements undermines the foundation of the vehicle and engine certification process. This enforcement action is part of an ongoing effort by EPA to protect the public from harmful pollution by ensuring that all vehicles and engines meet federal emission limits.

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Civil Penalty

MTU will pay a $1,200,000 civil penalty.

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Comment Period

The proposed settlement, lodged in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period and final court approval. Information on submitting comment is available at the Department of Justice website.

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For more information, contact:

Christopher Thompson
Air Enforcement Division
U.S. Environmental Protection Agency
1595 Wynkoop Street (8MSU)
Denver, CO 80202-1129
(303) 312-7156

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