Caterpillar To Recall 590,000 Engines, Pay $2.5M in EPA Penalties

Photo by Tudor Van Hampton for ENR Between 2002 and 2006, Caterpillar allegedly shipped 590,000 non-compliant diesel engines that were missing emission controls. It has agreed to pay $2.55 million and recall the engines, according to a federal consent order. Related Links: Caterpillar Recall Touches Dozens of Heavy Equipment Brands

Caterpillar Inc. is recalling hundreds of thousands of engines and will pay $2.55 million in civil penalties under a Clean Air Act federal consent decree made public today.

The settlement, released on July 28, says that the Peoria, Ill.-based manufacturer shipped 590,000 on- and off-road engines between 2002 and 2006 that were not equipped with emissions controls needed to meet U.S. Environmental Protection Agency tailpipe standards.

Cat allegedly did not ship the engines to original-equipment manufacturers with proper exhaust emission controls, such as catalytic converters and diesel particulate filters. As a result, the engines emitted excess nitrogen oxides and particulate matter.

"Today's settlement will protect public health and create a level playing field for companies that meet their environment obligations," says Cynthia Giles, assistant administrator of EPA's Office of Enforcement and Compliance Assurance.

Caterpillar responded that it has fully cooperated with the Dept. of Justice and EPA in the matter.

"Caterpillar denies any wrongdoing, but does agree that the decree represents a good faith effort between the parties to resolve their differences and avoid potentially lengthy litigation," says Cat in a statement. "Caterpillar is committed to following the terms of the decree."

Under the terms of the settlement, Cat will pay the federal government $2.04 million and California $510,000 in penalties. The public has 30 days to comment on the ruling.

Some of the engines have already been fixed, Cat adds.

"The recalls involved in this settlement were executed some years ago," a Cat spokesperson told ENR today via e-mail. "Several of them have already been completed. The recalls that will be reopened to meet the requirements of the agreement will be opened through our normal service letter communication process."

The settlement may smudge Caterpillar's public image as it continues to promote its environmental stewardship. The company recently won an EPA award for building a fuel-efficient, hybrid bulldozer, and its new CEO, Doug Oberhelman, is an outspoken environmentalist.

Former PCL President Dies

A former vice president of J.A. Jones Construction Co. and president and CEO of Rogers Construction Co., Bennett became PCL Construction building unit president in 1991. Four years later, he became president of PCL Civil Constructors Inc. Bennett was a board member of PCL Construction Group Inc. from 1996 until his retirement in 1999.

"Jim Bennett championed our U.S. expansion into civil work, and the transportation Infrastructure and water Infrastructure groups are now large and important components of our business," says Peter Beaupré, president and COO of PCL Construction. "Under Jim's leadership, we built many landmarks, such as the Denver International Airport terminal." The company is the sixth largest on ENR's list of the Top 400 Contractors, with nearly $5 billion in 2010 revenue.

Virginia Grebbien has Been Promoted to President of Parsons Water & Infrastructure Inc.

The Sheet Metal Workers International Association has announced that Joseph Nigro will become president of the Washington, D.C.-based union, which has 150,000 members in construction and shipbuilding work, it says. Nigro's elevation from secretary-treasurer follows the July 1 retirement of Michael Sullivan, who had led the union for 12 years.

Forrester Construction Co., Rockville, Md., has named Michael A. Bednarczyk as senior vice president of project management operations. Bednarczyk joins the contractor from Clark Construction, Bethesda, Md., where he was senior vice president. Forrester ranks at No. 152 on ENR's list of the Top 400 Contractors.

 

FUMOSA  

John Fumosa has joined Providence, R.I.-based contractor Gilbane Building Co. as vice president and New Jersey district manager. He was vice president and general manager in New York, New Jersey and Philadelphia for Turner Construction.

Sean Stewart has been named executive director of the Nevada Contractors Association, Las Vegas. His appointment follows the April 15 death of Jack Schaefer, who was 64 and had cancer. Stewart had been executive vice president and general counsel of the Southwest region for Aggregate Industries Management Inc., a Rockville, Md., materials firm.

Donnelly Mechanical Corp., New York City, has promoted Toni Tallerico to vice president of construction sales from director of estimating. Tallerico has been with the specialty contractor for 12 years.

 

Bednarczyk  

Gareth Lifton has been named global leader for asset management of engineer-architect CH2M Hill Cos., Denver. Based in Calgary, Alberta, he had been senior principal management consultant in the company's utility management solutions practice.

Cindi Spangler has joined the Finishing Contractors Association as its Midwest vice president and safety specialist. Based in St. Louis, she was previously safety director for T.J. Wies Contracting. FCA is an association of union contractors headquartered in Bethesda, Md.

Lori Luchak has been named president of the American Composites Manufacturers Association. Luchak, who succeeds Monty Felix, is president of Miles Fiberglass & Composites, Portland, Ore., and a board member of the Arlington, Va.-based group's 850 manufacturers.

Aon Risk Solutions, an Aon Corp. unit, has named

David Langman as senior vice president in its Atlanta-based construction services group. He had been managing director and construction practice leader at Marsh and principal and chairman of Johnson & Higgins' construction group.

Nuke Waste Panel Says New Sites Needed

Related Links: Read the commission's draft report

In a harsh critique of the nation’s current policy, or lack of policy, regarding spent nuclear fuel and other nuclear waste, a presidentially appointed panel said new storage options for nuclear fuel-- in addition to the site under Nevada's Yucca Mountain--must be investigated, and that a new federal agency to deal with nuclear waste should be created.

The commission also urged use of interim storage sites while a long-term repository or repositories are developed.

"Put simply, this nation’s failure to come to grips with the nuclear waste issue has already proved damaging and costly and it will be more damaging and more costly the longer it continues," said the Blue Ribbon Commission on America’s Nuclear Future in a draft report released on July 29.

The commission was appointed by President Obama after he announced that Yucca Mountain would not be pursued as a nuclear storage site. But the 15-member commission recognized that the issue of Yucca Mountain as a repository has still not been resolved, and it did not dismiss the Nevada site as an option.

"We simply note that regardless what happens with Yucca Mountain, the U.S. inventory of spent nuclear fuel will soon exceed the amount that can be legally emplaced at this site until a second repository is in operation. So under current law, the United States will need to find a new disposal site even if Yucca Mountain goes forward," according to the report.

Republicans in Congress said that the report would not have even been necessary if the Obama administration had not halted work on Yucca Mountain.

"The Blue Ribbon Commission has offered various proposals to fix a problem we don't have," said Rep. Jim Sensenbrenner (R-Wis.), vice chairman of the House Space, Science and Technology Committee. "The draft report states that the 'American nuclear waste management program is at an impasse.' We would not have this impasse but for the President's politically-motivated decision to close Yucca Mountain."

House Republicans have been investigating whether the decision on Yucca Mountain was appropriate under Nuclear Regulatory Commission procedures.

The administration did not comment on the substance of the Blue Ribbon commission report. But Damien LaVera, the Dept. of Energy's acting press secretary, said, "Secretary Chu appreciates the hard work done by the members of the Blue Ribbon Commission, and thanks them for a very thoughtful report. The interim report issued today is a strong step toward finding a workable solution to the challenges of the back end of the fuel cycle."

The panel recommends placing the responsibility for nuclear waste in the hands of a new agency outside of DOE, which currently handles the program.

The commission also determined that a deep geologic waste site is a necessity for nuclear waste disposal. It says, "The conclusion that disposal is needed and that deep geologic disposal is the scientifically preferred approach has been reached by every expert panel that has looked at the issue and by every other country that is pursuing a nuclear waste management program. "

It adds, "Moreover, all spent fuel reprocessing or recycle options either already available or under active development at this time still generate waste streams that require a permanent disposal solution. We believe permanent disposal will very likely also be needed to safely manage at least some portion of the commercial spent fuel inventory."

The panel also says interim storage sites are necessary to hold spent nuclear fuel from facilities that have been shut down.

The commission's co-chairs are former long-time House member from Indiana Lee Hamilton and Brent Scowcroft, assistant for national security affairs to former presidents Gerald Ford and George H.W. Bush. the panel will take public comment on its report through Oct. 31.

Lavendon issues new shares as revenues fall

Lavendon, the parent company of Nationwide and EPL Skylift, is looking to raise more than ВЈ80m by issuing new shares as it sees an 11% slide in revenues over the first 10 months of the year compared with the same period in 2008.
 
Like-for-like revenue in the UK fell by 22% in the first ten months or 28% after making adjustments for the acquisition of The Platform Company (completed in April 2008) while the formation of EPL Skylift has removed around ВЈ1.5m of annual costs. Chief executive Kevin Appleton said there were no imminent plans for further radical changes and capital expenditure for the year will be around ВЈ5m more than disposals.

Spain recorded the biggest drop in revenue (41% or 33% in sterling terms) while in Germany the fall was 13% and France and Belgium were down by 19%. Lavendon’s Middle East operation recorded a 20% rise in turnover, which equates to a sterling increase of 45%. 

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The company also announced it is to raise £53.9 million (before expenses) by an Open Offer of 77 million New Ordinary Shares at 70p and another £26.9m through a Firm Placing of 38.5 million shares. The 70p price tag represents a 45% discount on Lavendon’s 128p closing price on 18 November and once the New Share are admitted for trading on 14 December, the expected share price will be 88p.

The money raised will be used to reduce the company’s net debt which currently stands at £267m. Group finance director Alan Merrell expects the share offer and the ongoing debt reduction from its current trading will see net debt stand at £180m by the end of the year.

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Three chase £100m office job

The contest for a ВЈ100m office deal in Brighton has narrowed to three challengers.

Sources say that Sir Robert McAlpine, Laing O'Rourke and Miller Construction are now left in the hunt for the American Express project.

The news means the end of the road for a fourth challenger - Skanska.

It is understood that the client is in talks with the three remaining firms and that a decision is expected within the next few weeks.

The office complex, to be known as Amex House, will be constructed on the car park site of the present Amercian Express building in Mighell Street.

Some demolition work is also involved in the job.

The project centres on a nine-storey call centre and a four-storey data centre.

Work on site is expected to kick off early in 2010.

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Four contest £55m Leeds arena deal

Four rivals are tussling for a high-profile scheme in Leeds, worth at least ВЈ55m.

The prize is the construction of a new indoor arena and working up bids for the project are Laing O'Rourke, Sir Robert McAlpine and BAM Construction.

The identity of the fourth bidder is uncertain at present, but insiders are putting their money on Balfour Beatty to complete the line-up.

Leeds City Council is due to choose its preferred bidder next month, with work on site likely to kick off in November 2010.

The project is expected to be completed in 2012.

The scheme will be let under the two-stage tender design and build route.

The council plans to select a reserve bidder for the second stage of the contest, which will run fron January to September 2010.

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The five-storey Brunswick Building, formerly owned by Leeds Metropolitan University, is being pulled down to make way for the arena, which will be built on the 2.06 ha site at Clay Pit Lane in Leeds city centre

The new arena will have a total of 12,500 fixed seats and be capable of holding a wide range of events.

Retail outlets and executive boxes will also feature in the scheme, which will span 16,000m2.

The hope is that the new arena will attract around a million visitors a year and will contribute around ВЈ28,000 per annum to the local economy.

The council's own design team will work up the scheme to RIBA Stage D and then the appointed contractor's design team will take over the responsibility from that point onwards.

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