Two Firms Enter Clean-Air Agreement With U.S.

By BRENT KENDALL
WASHINGTON—The U.S. subsidiaries of two French companies agreed to spend up to $282 million to install new pollution-control technologies at 28 plants, in the first major Clean Air Act settlements for the cement and glass industries.
Under the Clean Air Act's "New Source Review" program, companies are required to install the best available pollution-control technology when building new plants or modifying existing ones. To date, the program has been focused primarily on power plants and oil refineries, but regulators under the Obama administration have signaled that they plan to take a more-aggressive approach toward other industries as well.
U.S. regulators alleged that cement giant Lafarge SA and glass manufacturer Compagnie de Saint Gobain SA modified certain facilities without first obtaining pre-construction permits and installing proper pollution controls.
Under the settlements, which were announced by the U.S. Justice Department and the Environmental Protection Agency, subsidiaries of Lafarge agreed to pay up to $170 million to install new pollution controls at 13 U.S. plants. They will also pay $5 million in civil penalties without admitting liability.
An Indiana-based unit of Saint-Gobain will spend up to $112 million on new pollution controls at 15 U.S. plants and will pay a $2.25 million civil penalty without admitting liability.
Sylvain Garnaud, president of Lafarge North America Inc.'s cement division, said the company "remains firm in its belief that it has operated its plants in an environmentally responsible manner and in compliance with the requirements of the Clean Air Act."
He said the settlement demonstrated "that we want our plants to continue to minimize emissions to the atmosphere as much as possible."
A Saint-Gobain spokesman didn't immediately respond to requests for comment.
U.S. Assistant Attorney General Ignacia S. Moreno on Thursday pledged aggressive enforcement of the act and suggested that cases against other companies might be coming. She told reporters in a teleconference that the government was prepared to litigate cases aggressively but hoped to reach more settlements.
"We want companies in other industries to make the same choices as the decision makers of Lafarge and Saint-Gobain," she said.
U.S. officials said the settlements would result in an annual reduction of 41,000 tons of pollutants that cause respiratory problems and a variety of environmental harms.
Write to Brent Kendall at brent.kendall@dowjones.com