WASHINGTON — The U.S. Environmental Protection Agency said yesterday that it will allow Navistar to pay penalties on their non-compliant engines, allowing the company to continue selling engines that do not meet nitrogen oxide emissions.

The rule sets a maximum penalty of nearly $3,800 per engine, nearly doubling the previous fines of $1,919 Navistar had been paying for each engine.

Navistar's competitors voiced their disagreement when the EPA made its first decision on the matter last May. Typically, a formal notice is required when these decisions are made, but the EPA granted the penalties while skipping the regulatory process.

Navistar's competitors sued the regulators, claiming that Navistar was receiving preferential treatment, and lead to the final rule.

The rule does not apply any  penalties for truck manufacturers, dealers, purchasers or operators who use the engines, EPA noted.

EPA said yesterday that it expects the penalties to be used for a relatively small number of engines. It also said that the rule does not apply any penalties for truck manufacturers, dealers, purchasers or operators who use the engines.

Troy Clarke, Navistar president and COO, said in a statement they were pleased that the EPA issued the Final Rule. "We can now provide our dealers and customers with clarity and certainty as we transition to our clean engine technology and look forward to utilizing the Final Rule as needed."

He added that the final rule will have no impact on vehicles previously certified by the EPA under the first rule.