EPA v. TADANO AMERICAS CORPORATION (Houston, TX)

Case summary

On August 31, 2023, EPA, Region 3 entered into the Southern District of Texas a Complaint and Consent Decree (?CD?) with Tadano Ltd., Tadano Faun GmbH, Tadano Mantis Corporation, and Tadano America Corporation (collectively, ?Tadano Group?) simultaneously alleging and resolving violations of the Clean Air Act (?CAA?) for its sale, importation, and introductions or delivery of nonroad vehicles and engines into United States commerce that were not certified as compliant to applicable air emission standards and did not qualify as exempt under the Transition Program for Equipment Manufacturers (?TPEM?) program (40 C.F.R. ? 1039.625 and 1039.626). Due to Tadano Group?s exceedance of the TPEM exemption-allocation limit in the higher engine power category and its failure to comply with TPEM-related bonding and report requirements, Tadano Group violated the certification and reporting provisions of Sections 203(a)(1) and (a)(2) of the CAA, 42 U.S.C. ?? 7522(a)(1) and (a)(2). On April 9, 2019, EPA referred the Tadano Group case to the Department of Justice (?DOJ?). EPA and DOJ sent Tadano Group an information request letter (?Section 208 Letter?) on August 11, 2020 and found that the Tadano Group exceeded its TPEM allowance by 210 engines in the higher power category, 80 additional engines lacked bonds disqualifying them from the TPEM, 59 engines were uncertified to current Tier 4 air emission standards, and 164 cranes lacked proper fuel inlet labels. Furthermore, Tadano Group failed to file EPA 3520-21 Declaration Forms upon entry of 151 TPEM exempt cranes and inaccurately documented/reported its TPEM allowances on four annual (2013-2016) TPEM reports. Tadano Group has negotiated with EPA and DOJ and willing enters in this CD. The CD requires Tadano Group to pay a civil penalty of $40,000,0000 in addition to injunctive relief provisions to mitigate excess emissions related to the certification violations. The proposed mitigation project (noted in Appendix A of the CD) is to retire and replace an in-service 1975 tugboat in operation at the Port of Arthur, TX, which would reduce approximately 22.3 tons of particulate matter and 2,075.5 tons of nitrogen oxides over 20 years. Tadano Group intends to contribute $3,200,000 towards this project. The Port of Arthur is an area of potential EJ concern and is located near one of Tadano Group?s subsidiaries (Tadano America Corporation in Houston, TX). This enforcement action supports EPA?s core program through the CAA?s goal of protecting and enhancing air quality.

Defendants (4)

• TADANO AMERICA CORPORATIONNamed in complaintNamed in settlement
• TADANO LIMITEDNamed in complaintNamed in settlement
• TADANO FAUN GMBHNamed in complaintNamed in settlement
• TADANO MANTIS CORPORATIONNamed in complaintNamed in settlement

Facilities (1)

• TADANO AMERICAS CORPORATION

  4242 W GREENS RD, HOUSTON, TX, 77066

  Registry ID: 110070106053

Statutes cited

• CAA 213 — Non-road Engines & Vehicles
• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines

Enforcement conclusions (1)

• TADANO AMERICAS CORPORATION (Houston, TX)entered 2023-10-13

  Primary law: CAA

  Federal penalty: $40,000,000

Timeline (6 milestones)

• 2019-04-09Referred To Dept Of Justice
• 2019-05-16Enforcement Action Data Entered
• 2023-08-31Final Order Lodged
• 2023-08-31Complaint Filed With Court
• 2023-10-13Final Order Entered
• 2025-07-29Enforcement Action Closed