The EPA appears to be expanding its interpretation of the prohibition against selling defeat devices to include the sale of a vehicle received in trade or purchased at the auction with defeat devices already installed. This represents an expansion of the prohibition over that applied in prior caselaw and EPA’s prior applicable written guidance. We’ve become aware of expanded enforcement activities in Montana as the EPA has recently visited Montana dealerships looking for deleted vehicles in inventory and initiating investigations into the extent of the dealer’s trade practices. While the buying and selling of deleted vehicles is not prohibited by the CCA on its face as noted above, the legal basis and incentive for the present EPA activity appears to be the expanded interpretation of the prohibition of selling defeat devices noted above and a recent Utah case in Federal Court, Utah Physicians for a Healthy Environment v. Diesel Power Gear, LLC 21 F. 4th 1229 (December 2021). There, a nonprofit organization of healthcare professionals and citizens sued several businesses and individuals involved in modifying diesel trucks in Federal Court, alleging they tampered with or removed emission-control devices, installed “defeat devices,” and bought and sold vehicles with defeat devices installed. The organization sought declaratory and injunctive relief, as well as civil penalties. After a bench trial, the District Court found in favor of the nonprofit, holding the defendants liable for hundreds of violations and imposing over $760,000 in civil penalties, along with injunctive relief. The 10th Circuit Court of Appeals (based in Denver, where the EPA has its regional offices, including jurisdiction in Montana) upheld most of the District Court decision, holding: • The Clean Air Act (CAA) prohibits any person from selling or offering to sell vehicles with parts (“defeat devices”) that bypass or render inoperative emission-control systems, if the seller knows or should know the part is being offered or installed for such use. • Liability attaches regardless of whether the sale is “as-is” or if the defeat device was installed by a previous owner; the statute does not provide an exception for “as-is” sales. • Sellers must have actual or constructive knowledge of the defeat device to be liable, but ignorance is only a defense if the seller genuinely did not know and could not reasonably have known about the device. Related CAA enforcement actions in the Northwest by the EPA include criminal prosecution of manufacturers and installers of delete devices, including that of Sturgis mechanic Troy Lake for tampering with emissions systems. The events of his case are chronicled in an Aug. 2, 2025, online article from Cowboy State Daily. On Oct. 18, 2018, the federal government executed a search warrant on the Elite Diesel shop, which was then based in Windsor, Colorado. To the Lakes, it was a raid. “It looked like a military operation,” Holly recalled. Black SUVs converged on the block; agents emerged “in tactical gear” and rifled through the business, the equipment, the personnel files, she said. Ultimately, Troy was sentenced to 12 months and one day in federal prison by a judge who was previously a lawyer for diesel manufacturer Cummins. HOT OFF THE PRESS In mid-November, President Trump issued a full pardon to Lake, who spent seven months in federal prison before being moved to home confinement earlier in 2025. The pardon comes on the heels of Wyoming lawmakers arguing that Lake had been unfairly targeted. U.S. Sen. Cynthia Lummis, R-Wyo., publicly criticized the prosecution and personally petitioned Trump for a pardon. In a statement, Lummis said Lake’s case was an example of federal overreach, calling the Biden administration’s handling of environmental enforcement “weaponized.” Lummis also introduced a bill that seeks to undo emissions systems requirements on motor vehicles, free diesel “delete” mechanics from jail and expunge their civil liability judgments. If it becomes law, the “Diesel Truck Liberation Act” would signify a victory for diesel truck drivers and other diesel fleet holders — such as fire trucks, ambulances and school buses — who have removed or tampered with the mandatory emissions systems on those vehicles. The U.S. EPA’s recent shift into prosecuting delete mechanics has changed the course of at least two Wyoming mechanics’ lives and businesses. Lummis said in a statement Tuesday that Lake’s case inspired her bill. A similar filing against Levi Krech was dismissed on Nov. 26, 2025, by Wyoming U.S. Attorney Darin Smith against Gillette-raised mechanic Levi Krech. In April 2022, federal agents in bulletproof vests raided Krech’s shop, sparking small-town rumors that he’d been running drugs or that a murder had happened in the shop, he said. The rare dismissal, and a Trump pardon for Troy Lake, may signal a less aggressive approach toward the practice. Deleting emissions devices is still illegal, and many prosecutors treat it as a crime. But Lake’s pardon and Krech’s dismissal also could signal a shift from the White House and other governmental spheres. U.S. Attorney General Pam Bondi on Feb. 5 issued a notice to all U.S. Department of Justice employees, warning against pursuing criminal charges where not “appropriate.” The EPA in July announced a plan to relax rules regarding tailpipe emissions. And the U.S. House Committee on Oversight and Government Reform discussed the exact issue in September, contemplating whether the federal government should criminalize diesel delete “tunes” or take a lighter touch (Cowboy State Daily, Nov. 26, 2025). Only time will tell. IF THE EPA COMES CALLING In the meantime, if the EPA comes calling on your dealership and you happen to have (or have recently had) a deleted diesel on the lot and the EPA calls 11 MONTANA AUTO DEALER
RkJQdWJsaXNoZXIy MTg3NDExNQ==