EPA v. MotorScience

Case summary

This case addresses alleged violations of the Clean Air Act (CAA) by two Los Angeles-based consulting firms, MotorScience Inc., and MotorScience Enterprise Inc., (MotorScience) and their owner, Chi Zheng. The violations stem 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. MotorScience provides consulting services which enable its clients to import and sell vehicles and engines in the United States. A person may not sell or import vehicles and engines into the Unites States unless that vehicle is covered by an EPA-issued certificate of conformity (COC). Rather than handling the application process itself, an importer or manufacturer may hire a company like MotorScience to test its vehicles and prepare its application for submittal to EPA’s Office of Transportation and Air Quality (OTAQ). When OTAQ approves an application, MotorScience’s client becomes the COC-holder. MotorScience has submitted hundreds of COC applications on behalf of numerous companies, most of which are based in the People’s Republic of China. It was one of the leading firms of its kind when the recreational vehicle COC requirement came into effect in 2006. Millions of vehicles have been imported into the United States under COCs obtained from applications prepared by MotorScience. The EPA began investigating MotorScience and Mr. Zheng in 2008. The investigation revealed that MotorScience used the emission test results from one vehicle for countless dissimilar others by misrepresenting the vehicle’s type, manufacturer, and components. By improperly using test results in this manner, MotorScience avoided actually testing the emissions of the vehicles for which it sought COCs, undermining the fundamental purpose of the EPA’s vehicle certification program. MotorScience also neglected to keep vital records that are central to adequate administration and enforcement of the program. In 2010, OTAQ voided 12 COCs based in part on the false information submitted by MotorScience and Chi Zheng, acting for its clients. Voiding a COC renders all vehicles purportedly covered by that COC to be uncertified, and therefore illegal for sale in the United States. In September 2011, the United States initiated the enforcement case in the United States District Court for the Central District of California that is resolved by this settlement. The United States alleged that MotorScience and Mr. Zheng caused its clients to import uncertified vehicles and to fail in their recordkeeping obligations under the Clean Air Act. must either entirely cease, or follow a compliance plan for, all activity concerning nonroad vehicles and nonroad engines regulated under Title II of the Clean Air Act for 15 years. This compliance plan is detailed in the consent decree. Defendants must also notify the United States and California of any other business activity under the mobile source provisions of the Clean Air Act. The United States alleges that Defendants’ violations arise from their failure to actually test the emissions of the vehicles at issue in this case. As such, the United States lacks emission data and the emission consequences of the alleged violations are not clear. However, limited testing of affected vehicles showed significant exceedances of applicable emission standards for hydrocarbons and oxides of nitrogen. MotorScience and Mr. Zheng have agreed to pay a $60,000 civil penalty within 6 months, and to have a stipulated judgment entered against them for an additional $3.55 million civil penalty. The United States will receive eighty percent of collected penalties, and California will receive the remaining 20 percent. For additional information, see EPA's Motorscience settlement webpage at http://www2.epa.gov/enforcement/motorscience-and-chi-zheng-clean-air-act-settlement

Defendants (1)

• MotorScience Enterprise IncNamed in complaintNamed in settlement

Facilities (1)

• MOTORSCIENCE ENTERPRISE INC

  719 NOGALES ST, CITY OF INDUSTRY, CA, 91748

  Registry ID: 110037246254

Statutes cited

• CAA 213 — Non-road Engines & Vehicles

Enforcement conclusions (1)

• MotorScienceentered 2014-01-10

  Primary law: CAA

  Federal penalty: $2,888,000 · State/local: $722,000

Timeline (6 milestones)

• 2010-12-20Referred To Dept Of Justice
• 2011-03-07Enforcement Action Data Entered
• 2011-09-28Complaint Filed With Court
• 2013-05-01Supplemental Referral-Other
• 2013-08-29Final Order Lodged
• 2014-01-10Final Order Entered