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 ------- 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 __ 2 ------- 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 ------- 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. ' Recycled/Recyclable. Printed with Soy/Canola Ink on paperthat contains at least 30% recycled fiber ------- |