MGP Ingredients of Illinois Inc. agreed to the terms to settle a Clean Air Act complaint by the U.S. Department of Justice, the U.S. Environmental Protection Agency and the Illinois Environmental Protection Agency.

The plaintiffs alleged the company skirted air pollution rules at its Pekin, Ill., ethanol production plant by failing to get the proper permit before making a major modification at the plant. The company also failed to install pollution controls that the permit would have required.

As part of the consent decree, MGP Ingredients will install the pollution control equipment, which will reduce volatile organic compound emissions by 95 percent and carbon monoxide by 90 percent. The equipment installation will cost the company between $1 million and $2 million.