No ATV's

One California-based consultant just got busted for double-dipping on four-wheelers. Chi Zheng, whose Los Angeles-based companies MotorScience Inc. and MotorScience Enterprise Inc. specialized as a consultant for all-terrain vehicle imports from China, had his companies fined $3.6 million for violating emissions requirements, according to the US Department of Justice, US Environmental Protection Agency and the California Air Resources Board (CARB). The companies were hit with a $3.55 million fine and a $60,000 civil penalty to be paid within six months and must follow a strict compliance plan for the next 15 years.

The violation of the Clean Air Act (CAA) stemmed from the companies' role in importing almost 25,000 ATVs from China without getting them properly tested for emissions compliance. In some cases, the companies arranged for emissions testing on a small number of vehicles, then reused those results to get "certificates of conformity" for other vehicles, hence the double-dipping. In many cases the untested vehicles exceeded federal limits for hydrocarbon and nitrogen oxide emissions.

The concept of trying to get China ATV imports to skate by clean-air laws is nothing new, nor are government fines related to the practice. Last year, California-based Yuan Cheng International Group Inc. (YCIG) and its successor NST Inc. agreed to pay $50,000 in fines as part of an EPA and DOJ settlement related to alleged CAA violations from the importation of more than 17,000 non-certified vehicles. More notably, Pep Boys got slapped with a $5 million fine in 2010 after more than 240,000 China-made items, including generators, lawnmowers and ATVs that the company imported were also found to violate US clean-air regulations. Read the EPA's press release on the Zheng case below and read more about it here.
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Two California Firms and Owner Agree to Settle Clean Air Act Violations Stemming from Illegal Import of Vehicles

WASHINGTON – Two Los Angeles-based consulting firms, MotorScience Inc., and MotorScience Enterprise Inc., (MotorScience) and their owner, Chi Zheng, have agreed to settle alleged Clean Air Act (CAA) violations stemming from the illegal import of 24,478 all-terrain, recreational vehicles into the U.S. from China without testing to ensure emissions would meet applicable limits on harmful air pollution, announced the Department of Justice, the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (ARB).

MotorScience and Zheng have agreed to have a stipulated judgment entered against them for a $3.55 million civil penalty and to pay an additional $60,000 civil penalty within six months. The United States will receive 80 percent of collected penalties, and California will receive the remaining 20 percent.

"This illegal importation of over 20,000 vehicles evaded federal emission standards, jeopardizing human health," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. "Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and oxides of nitrogen which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog."

"Vehicles and engines that are manufactured overseas and sold in the U.S. must meet the same Clean Air standards as domestically-made products," said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "We will continue to vigorously enforce these laws to ensure that American consumers get environmentally sound products that do not pollute the atmosphere and violators do not gain an unfair economic advantage by skirting the law."

"The integrity of new vehicle standards are the foundation for achieving our air quality goals in California," said ARB Enforcement Chief James Ryden. "When a manufacturer circumvents these requirements, they not only cheat their customers and competitors, but they also shortchange every citizen of our state who relies upon our shared actions to clean the air."

Today's settlement also requires that for the next 15 years, before either MotorScience or Zheng may engage in any further work involving non-road vehicles and engines, they must follow a rigorous compliance plan to ensure that any emissions testing and certification applications submitted to EPA or the ARB accurately represent those vehicles and engines. Non-road vehicles and engines include recreational vehicles, generators, lawn and garden equipment, and other non-road internal combustion engines.

EPA's investigation showed that MotorScience obtained EPA certificates of conformity for numerous vehicles without conducting required emissions testing. As alleged in separate complaints filed in federal district court by the United States and the state of California in September 2011, MotorScience arranged for emissions testing of a limited number of vehicles, and then reused those results to obtain certificates of conformity for numerous other, dissimilar vehicles. For at least three of those vehicles, EPA confirmed that their emissions exceeded the federal limits for hydrocarbons and nitrogen oxides.

MotorScience and its president, Zheng, provide consulting services for vehicle manufacturers and other clients interested in obtaining certificates of conformity from EPA to allow import of their vehicles into the U.S. In 2010, EPA voided 12 certificates held by four of the defendants' clients, who were U.S.-based importers for Chinese recreational vehicle manufacturers. The complaints filed by the U.S. and California alleged that defendants caused four of their clients to illegally import vehicles under federal certificates and California executive orders that were voided. The complaints further alleged that defendants caused their clients to fail to create and maintain required records on emissions testing.

The CAA prohibits any vehicle or engine from being imported into or sold in the United States unless it is covered by a valid, EPA-issued certificate of conformity demonstrating that the vehicle or engine meets applicable federal emission standards. The CAA also prohibits any actions that cause the importation of uncertified vehicles or that cause recordkeeping violations. Similarly, the California Health and Safety Code prohibits any vehicle or engine from being distributed or sold in California, unless such vehicle or engine is covered by a valid, ARB-issued executive order demonstrating that the vehicle or engine meets applicable California emission standards.

The certificate of conformity is the primary way EPA ensures that vehicles and engines meet emission standards. This enforcement action is part of an ongoing effort by EPA to ensure that all imported vehicles and engines comply with the CAA's requirements.

More information on the settlement: http://www2.epa.gov/enforcement/motorscience-and-chi-zheng-clean-air-act-settlement

More information on EPA's Clean Air Act mobile source enforcement programs: http://www.epa.gov/enforcement/air/index.html#mobile