The Cost Of Non-Compliance

Posted on February 28, 2011

The U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department announced today that three Mississippi companies will pay a civil penalty of $2 million to resolve claims that the company imported and sold nearly 80,000 nonroad engines and equipment from China that did not meet standards under the Clean Air Act.

PowerTrain Inc., Wood Sales Inc. and Tool Mart Inc., collectively known as PowerTrain Inc., imported 79,830 nonroad engines or pieces of equipment into the U.S. between 2002 and 2008 that were not covered by a Clean Air Act-required certificate of conformity. The engines and equipment were sold to businesses and individuals through Wood Sales Co. and Tool Mart. They were not covered by certificates of conformity because they were different models, had different power ratings or were made by a different manufacturer than the listed on the certificate, EPA said. The engines also lacked the two-year emissions-related warranties required by law.

Under the settlement, PowerTrain will implement a plan to ensure that the engines and equipment it imports in the future comply with clean air requirements. It will also offset the excess emissions resulting from the sale of the illegal engines and equipment. As one of the offset projects, PowerTrain will spend an estimated $600,000 to provide subsidizes for consumers to replace old wood-burning appliances with efficient, EPA-certified wood stoves.

The settlement is the latest in a series of cases brought as part of EPA’s effort to ensure that vehicles and engines imported into the U.S. comply with Clean Air Act standards. EPA and the Justice Department announced settlements with Pep Boys – Manny, Moe and Jack and Baja Inc., in 2010 and with the McCulloch Corp., Jenn Feng Industrial Co. Ltd., MTD Southwest Inc. and MTD Products Inc. in 2008.

The proposed settlement decree lodged with the U.S. District Court for the District of Columbia, will be subject to a 30-day public comment period. More information on the settlement is available on the EPA website.