EPA v. Savoia

Case summary

This case addresses alleged violations of the Clean Air Act (CAA) by a group of Dallas-based companies: Savoia, Inc., BMX Imports, L.P., and BMX Trading, L.L.C, and their owner, Terry Zimmer. The companies import (or formerly imported) highway motorcycles and recreational vehicles from several foreign manufacturers (including vehicles sold under the brand names of Peace, Lifan, Buyang, Bashan, Huansong, Wangli, JCL, and Xinyang). Defendants would then sell the imported vehicles throughout the United States from their website and from their retail location in Dallas, Texas. The violations stem from the alleged illegal import of over 24,167 highway motorcycles and recreational vehicles into the United States without proper documentation. The EPA discovered Defendants’ violations through inspections at ports of entry and through a comprehensive information request. The EPA maintains a relationship with the United States Department of Homeland Security’s Bureau of Customs and Border Protection (CBP) whereby CBP inspects vehicles and engines for compliance with the Clean Air Act and its regulations. In this case, inspectors at the port of Long Beach inspected at least nine entries between July 2008 and March 2009 for which one of the Defendants was the importer of record. Next, the EPA issued Defendants a Request for Information, pursuant to section 208 of the Clean Air Act, 42 U.S.C. § 7542. Lastly, in February 2011, EPA representatives inspected vehicles at Defendants’ retail location in Dallas. This investigation established evidence that that Defendants imported and sold approximately 24,167 recreational vehicles and highway motorcycles in violation of the Clean Air Act and its implementing regulations. First, over 11,000 of the Subject Vehicles were not covered by an EPA-issued certificate of conformity. Second, over 23,000 were improperly warranted. Lastly, over 500 had noncompliant emission control information labels. Under the consent decree, defendants must either cease, or follow a compliance plan for, all activity regulated under the mobile source provisions of the Clean Air Act for 5 years. This compliance plan calls for quality assurance steps at various stages of purchasing, importing, and selling vehicles. These steps include vehicle inspections and emission testing. Defendants must also export or destroy 115 noncompliant recreational vehicles currently in their inventory. These vehicles have catalytic converters or carburetors that do not conform to the application for the COC that is meant to cover these vehicles. These components directly determine the rates of emissions of regulated pollutants, so this nonconformance is material, and these vehicles are not suitable for sale in the United States. The defendants must also pay a $120,000 civil penalty. This penalty is based on the United States’ determination of Defendants’ ability to pay. A much higher penalty is justified by the scale and egregiousness of the alleged violations. Recreational vehicles and highway motorcycles emit oxides of nitrogen, carbon monoxide, and hydrocarbons. Emissions of these pollutants are regulated under the Clean Air Act to prevent childhood asthma, respiratory illness, premature death, and other human health risks. Here, the alleged violations include, for example, claims that vehicles were equipped with less effective catalytic converters than are required, and catalytic converters exist for the purpose of reducing emissions of regulated pollutants. Also, the United States alleges that over 8,000 vehicles were sold into United States commerce without any of the mandatory demonstrations and certifications that the vehicles meet Clean Air Act standards. For additional information, see EPA's Savoia settlement webpage at http://www2.epa.gov/enforcement/savoia-inc-bmx-imports-lp-bmx-trading-llc-and-terry-zimmer-clean-air-act-settlement

Defendants (1)

• Savoia, Inc. (SB)Named in complaintNamed in settlement

Facilities (1)

• BEST PRICE ATVS

  13401 DENTON DR, DALLAS, TX, 75234

  Registry ID: 110037252175

Statutes cited

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

Enforcement conclusions (1)

• Savoiaentered 2014-03-05

  Primary law: CAA

  Federal penalty: $120,000

Timeline (7 milestones)

• 2011-03-11Referred To Dept Of Justice
• 2011-03-17Enforcement Action Data Entered
• 2012-07-13Complaint Filed With Court
• 2014-01-06Final Order Lodged
• 2014-03-05Final Order Entered
• 2023-03-08Enforcement Action Closed
• 2023-03-08Concluded