Navistar, EPA Settle Lawsuit Over Exhaust Rules

By Bob Tita, Of DOW JONES NEWSWIRES CHICAGO -(Dow Jones)- Truck maker Navistar International Corp. (NAV) said Tuesday the U.S. Environmental Protection Agency will review its usage guidelines for a popular technology to lower nitrogen oxide in diesel engine exhaust as part of a settlement agreement to a lawsuit filed by Navistar. Navistar said the agency "will provide a thorough review of EPA's policies" beginning in 2011 to determine whether the trucks equipped with Selective Catalytic Reduction, or SCR, can circumvent the EPA's stricter emissions standards for nitrogen oxide. The agency promised to "ensure, among other things, that SCR-equipped heavy- duty diesel engines are designed to properly control emissions as required under applicable regulations," the agency said in the agreement. Navistar, of Warrenville, Ill., is the only truck maker in North America that is not treating nitrogen oxide with SCR, which filters diesel exhaust through a urea solution. Navistar, which opted for a process that recirculates cooled exhaust through its engines, argued that the EPA's rules allowed SCR-equipped trucks to operate without a functioning SCR system. "We are pleased with this agreement," said Jack Allen, president of Navistar's North American Truck Group, in a written statement. "We believe that with full and open public participation, EPA will develop a new approach that will result in equal enforcement of the 2010 nitrogen oxide requirements for all engine makers." Navistar's stock recently fell 79 cents, or 1.6%, to $48.90. -By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected] Read more: http://www.nasdaq.com/aspx/stock-ma...t-over-new-diesel-exhaust-rules#ixzz0n4Jkm5SE