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

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