United States
Environmental Protection
Agency
Office of Enforcement
and Compliance
Assurance (2248A)
EPA 300-N-00-003
&EPA Enforcement Alert
Volume 3, Number 2
Office of Regulatory Enforcement
February 2000
EPA Steps Up Enforcement of Diesel,
Gasoline Nonroad Engine Imports
Like Automobiles, the Law Requires Engines to Meet Federal Emission Standards
The Clean Air Act requires that
nonroad engines imported into
the United States display labels certi-
About
Enforcement Alert
"Enforcement Alert" \;
published periodically by the
Office of Regulatory
Enforcement to inform and
educate the public and
regulated community of
important environmental
enforcement issues, recent
trends and significant
enforcement actions.
This information should help
the regulated community
anticipate and prevent
violations of federal
environmental law that could
otherwise lead to enforcement
action. Reproduction and wide
dissemination of this newsletter
is encouraged.
See Page 4 for useful
compliance assistance
resources.
Eric V. Schaeffer
Director, Office of
Regulatory Enforcement
Editor: Virginia Bueno
(202) 564-8684
bueno.virginia@epamail.epa.gov
(Please email all address and
name changes or subscription
requests for this newsletter.)
fying that they meet federal emission
standards.
U.S. Environmental Protection
Agency (EPA) investigations at several
U.S. ports, conducted in cooperation
with the U.S. Customs Service, sug-
gest that a number of imported engines
fail to meet these labeling requirements,
and a subset may not meet emission
standards. These "gray market" engines
undermine our nation's air
quality goals and put law-
abiding equipment dealers
at a competitive disadvan-
tage. Accordingly, the
Agency is working with
the U.S. Customs Service
to increase inspections at
all ports, and to take en-
forcement action against
violators.
engines must be covered by an EPA-
issued Certificate of Conformity. A la-
bel confirming the engine meets nonroad
emission standards must be affixed to
the engine and be readily visible (see
sample label, Page 2).
Emissions from nonroad diesel en-
gines contribute approximately 10 per-
cent of total nationwide emissions of
nitrogen oxides (NO ). NO reacts with
Federal Nonroad Ermine
Reauirements:
Since Jan. 1, 1996,
EPA has been regulating
certain nonroad diesel and
gasoline engines in accor-
dance with the Clean Air
Act and the regulations at 40 C.F.R.
Parts 89, 90 and 91.
"Nonroad" is a term that covers a
diverse collection of engines and equip-
ment. Also referred to as "off-road" or
"off-highway," the nonroad category in-
cludes lawn and garden equipment, out-
door power equipment, recreational
equipment, farm equipment, construc-
tion equipment, marine engines and lo-
comotives.
Like automobiles, regulated nonroad
Regulated engines must be covered by
a Certificate of Conformity certifying the
engine to be in compliance with federal
emission standards.
• EPA emission label must be affixed to
engine and be readily visible.
• If imported, EPA Declaration Form 3520-
21 must be properly completed.
— 40 C.F.R. Parts 89,90 and 91, and 19 C.F.R Part
12.74
hydrocarbons in the atmosphere to form
urban ozone, or smog. EPA believes this
percentage is even higher in many U.S.
cities with air quality problems. By 2010,
under the nonroad program, N0x emis-
sions will be reduced by up to one mil-
lion tons per year. This is equivalent to
removing more than 35 million motor
vehicles from the road. Nonroad en-
gines also emit diesel particulate matter
(PM). More than 80 percent of diesel
Continued on page 2
ion is found on the Internet at http://www.epa.gov/oeca/ore/enfalert
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Enforcement Alert
Continued from page 1
PM will come from nonroad engines
by 2010 nationwide. N0x, ozone and
PM have all been linked to a range of
serious respiratory health problems and
a variety of adverse environmental ef-
fects.
In the past few years, EPA has seen
a dramatic increase in the importation
of nonconforming nonroad construc-
tion and agricultural equipment from
overseas. Accordingly, the Agency has
taken many steps to inform industry of
these relatively new regulations and to
respond to the many industry requests
for increased enforcement against ille-
gal imports.
In addition to enforcement, EPA
activities have included frequent out-
reach to importers and manufacturers
of nonroad diesel and gasoline engines
to help ensure compliance. Of note, the
Associated Equipment Distributors,
EPA, and the U.S. Customs Service
hosted a workshop on Nov. 18, 1998,
that was attended by more than 100 im-
porters and manufacturers. More out-
reach is proposed for this year.
Nonroad Engines Subject
to the Law
Diesel nonroad engines subject
to EPA certification and labeling require-
ments include those built after certain
Sample Engine Manufacturers Emission Label
IMPORTANT ENGINE INFORMATION
THIS ENGINE CONFORMST01996 MODEL YEAR U.S.EPA REGULATIONS ANDTHE CALIFORNIA REGULATIONS
FOR LARGE NONROAD COMPRESSION IGNITION ENGINES. THIS ENGINE IS CERTIFIED TO OPERATE ON DIESEL
FUEL.
WARNING
INJURYMAY RESULT AND WARRANTY ISVOIDED IF FUEL RATE, RPMOR ALTITUDES EXCEED PUBLISHED
MAMMUMVALUESFORTHISMODELAND APPLICATION
ENGINE MODEL
ENGIN E FAMILY
EXH AU ST EMISSION
CONTROL SYSTEM
ADV. LOAD OUTPUT
VALVE LASH COLD
(MM)
IDLE SPEED
INITIAL INJECTION
TIMIN G
SAA6DI70E-2
WKLXL23.2FD1
EM.DI
478 KW (641 HP)
1600 RPM
IN. 0.40 EX. 1.00
730 + 25 rpm
16 D EG.BTDC
SERIAL NO.
DISPLACEM ENT
FIRING ORDER
FUEL RATE AT ADV.
FAM ILY EMISSION
LIMIT
DATE OF
MAN U FACTU RE
23.15 LITERS
1-5-3-6-2-4
368
3MM /STROKE
COMPANY XYZ
dates (see Table 1 below).
Also subject to the law are:
Gasoline nonroad engines less
than or equal to 25 horsepower built
after Sept. 1, 1997;
Marine gasoline engines such as
outboard motors and personal water
craft (jet skis and jet boats) built after
Jan.l, 1998 and Jan.l, 1999, respec-
tively;
Locomotive engines built after Jan.
1, 2000 ; and
Marine diesel engines more than
50 horsepower and nonroad gasoline
Table 1
DIESEL NONROAD ENGINES
REGULATED IF BUILT AFTER!
J
J
J
J
J
an
an
an
an
an
u
u
u
u
u
ary
ary
ary
ary
ary
1,
1,
1,
1,
1,
1
1
1
1
996
997
998
999
2000
EN
GIN
E HORSEPOWER RANGE
175 to 750
horsepower
100 to <175 horsepower
50
25
Un
mo
to
to
<100
<50 h
der 25 h
re th an
horsepower
orsepower
orsepower an
750 horsepow
d
er
February 2000
engines more than 25 horsepower will
become regulated after Jan. 1, 2004.
Importers Must Complete
EPA Declaration Form
Importers must complete and re-
tain a EPA Declaration Form 3520-21
for five years and present it to a gov-
ernment official upon demand. Work
delegated to a Customs' broker does
not shield the importer of record from
liability for failure to complete and main-
tain this form. For copies of EPA Dec-
laration Form 3520-21, call (202) 564-
9660.
When a Violation is
Detected
First Time Violators: When Cus-
toms detects a violation (i.e., an impor-
tation of an uncertified engine or an en-
gine that was intended by the manu-
facturer to be certified and the label is
either missing, illegible, or not readily
visible)—and if it is the importer's first
violation and there are no aggravating
Continued on page 3
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Enforcement Alert
Continued from page 2
circumstances—the engine is detained
and EPA attempts to achieve a settle-
ment within 30 days. Penalties are re-
duced from the Clean Air Act's maxi-
mum penalty of $27,500 per engine for
first-time violators, provided the im-
porter discloses and remedies all prior
violations of the regulations.
All uncertified engines must be ex-
ported but label violations may be cor-
rected once EPA determines that the en-
gine is certified. When uncertified en-
gines are imported in equipment, the im-
porter may, in some very limited cases,
replace the affected engine (which must
be exported) with a certified engine as
part of an overall settlement agreement.
Violations identified by the regulated
party and disclosed to EPA may qualify
for a reduced penalty under EPA's Au-
dit Policy. The Audit Policy allows EPA
to seek a reduced gravity-based pen-
alty if the violator promptly discloses
and corrects violations. For more in-
formation on the policy, visit the Audit
Policy Information website at http://
www.epa.gov/oeca/ore/apolguid.html.
Second-time and Repeat Viola-
tors: Second-time violators face seizure
of their engines by Customs and the
imposition of higher penalties.
Separating Fact from
Fiction About Nonroad
Engine Requirements
The following is provided to cor-
rect some misconceptions and answer
questions that importers may have re-
garding nonroad engine importation re-
quirements.
Fiction: An uncertified engine hav-
ing similar or even identical emission
characteristics as a certified engine
should be able to be imported.
Fact: Manufacturers may produce
Don't Let This Happen to You...
A first-time violator imported a combination of certified but label-deficient
engines, and uncertified engines. For these violations, the importer paid $500
per label-deficient engine and $1,000 per uncertified engine. In addition,
under a settlement agreement with EPA, all uncertified engines were required
to be exported to a country other than Canada or Mexico.
A second-time violator recently paid a $2,500 fine for each of his label-
deficient engines and $10,000 per uncertified engines. Also, under a settle-
ment agreement with EPA, he was required to export the uncertified engines
out of North America.
engines that are identical to U.S. certi-
fied versions but the engines are not
intended for the U.S. market. These
engines are not certified and may not
be imported unless they are produced
under an EPA-issued certificate, are
properly labeled, have the required EPA
emissions warranty, and are subject to
EPA audits during manufacturing and
potential recall for defects.
Fiction: An uncertified engine may
be imported for export without docu-
menting that the engine is merely
making an intermediate stop and
without posting of a bond.
Fact: Uncertified engines that are
destined for a foreign country must
meet the requirements of 40 C.F.R. Part
89.909 and be so labeled on the engine
and the container. In addition, an EPA
Declaration Form 3520-21 must be
completed and all Customs' bonding re-
quirements met.
Fiction: A missing EPA label on a
nonroad diesel or gasoline engine
doesn 't matter.
Fact: If an engine is not properly
labeled, the engine is presumed to be
uncertified. Therefore, the owner may
assume liabilities in importing the en-
gine and experience difficulty in obtain-
ing warranty coverage.
Fiction: EPA and Customs have
February 2000
different rules and enforcement ap-
proaches to nonroad regulations.
Fact: EPA and Customs have simi-
lar rules and coordinate very closely on
their procedures, policies and enforce-
ment actions for violations.
Fiction: Engine manufacturers
will not cooperate with independent
importers and will not provide infor-
mation on whether an engine is certi-
fied directly to an individual unless
that individual is connected with the
federal government.
Fact: Engine manufacturers and
their trade association have committed
to EPA to provide such information as
quickly as possible to anyone upon re-
quest.
EPA's Next Steps
As of Feb. 1, 2000, EPA has initi-
ated more than 125 enforcement ac-
tions resulting from the importation of
uncertified or improperly labeled en-
gines. At the same time, Customs has
seized or detained more than 2,000 en-
gines. EPA also has increased inspec-
tions nationwide at dealerships that im-
port and/or sell nonroad engines. Finally,
Continued on page 4
__ 3
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United States
Environmental Protection Agency
Office of Regulatory Enforcement
(2248A)
Washington, D.C. 20460
Official Business
Penalty for Private Use $300
Enforcement Alert newsletter
Useful Conrmliance
Assistance Resources
Air Enforcement Division:
http://www.epa.gov/oeca/ore/aed
Audit Policy Update:
http://www.epa.gov/oeca/ore/
apolguid.html
Office of Transportation and Air
Quality (formerly Office of Mobile
Sources):
http://www.epa.gov/oms/
EPA's Nonroad Engine Emissions
Control Programs
http://www.epa.gov/oms/regs/nonroad/
f99001.htm
Nonroad Compression-Ignition
Engine Emissions:
http://www.epa.gov/orcdizux/equip-
hd.htm
Nonroad Spark-Ignition Engine
Emissions:
http://www.epa.gov/oms/equip-ld.htm
EPA Compliance Assistance
Centers:
http://www.epa.gov/oeca/mfcac.html
EPA's Small Business Gateway:
http://www.epa.gov/smallbusiness
Continued from page 3
the Agency is strongly committed to
enforcing the regulations and providing
compliance assistance to the regulated
community so that the public and envi-
ronment can be protected from the
harmful health effects of ozone and par-
ticulate matter.
For more information, contact
David J. Gottfried, Office of Regu-
latory Enforcement, Air Enforce-
ment Division, (202) 564-1019, Email:
gottfried. david@epamail. epa.gov.; or
Mark Siegler, Office of Regulatory
Enforcement, Air Enforcement Di-
vision, (202) 564-8673; Email:
siegler. mark@epamail. epa. gov.
EPA's Audit Policy and
Small Business Policy
EPA has adopted two policies de-
signed to encourage greater compliance
with environmental laws and regulations.
These policies, "Incentives for Self-Po-
licing, Discovery, Disclosure, Correc-
tion and Prevention of Violations" (Au-
dit Policy), and "Policy on Compliance
Incentives for Small Businesses" (Small
Business Policy), provide incentives to
conduct environmental audits by sub-
stantially reducing or eliminating pen-
alties for entities that voluntarily dis-
cover, disclose, and expeditiously cor-
rect violations of environmental law.
For more information, see http://
www.epa.gov/oeca/auditpol.html and
http://www.epa.gov/oeca/smbusi.html,
respectively.
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