EPA v. Hyundai (HHI & HCEA)

Case summary

This settlement resolves allegations that Hyundai Construction Equipment Americas Inc.(HCEA) and Hyundai Heavy Industries Co. Ltd (HHI) (collectively known as �Hyundai�) sold heavy construction vehicles with diesel engines that were not certified to applicable emission standards. The types of vehicles in violation included excavators, loaders, and fork lifts. EPA alleges that from 2012 to 2015, Hyundai illegally pre-purchased, or �stockpiled,� engines meeting older emissions standards before the standards changed, and then, after the new engine standards took effect, Hyundai imported, sold, offered for sale, and/or introduced into commerce nonroad vehicles containing the older non-compliant engines in violation of the Clean Air Act. Additionally, Hyundai also imported, marketed and sold nonroad vehicles using diesel engines meeting older emission standards under the Transition Program for Equipment Manufacturers (TPEM) program regulations in quantities that exceeded their exemption allowance limit under the program. Hyundai allegedly introduced into United States commerce at least 2,269 illegal diesel nonroad vehicles. Hyundai�s illegal nonroad diesel vehicles were not certified as meeting applicable pollutant emission standards, including for nitrogen oxides (NOx) and particulate matter (PM). NOx is a reactive gas that contributes to the formation of PM and ozone. PM is a form of air pollution composed of microscopic solids and liquids suspended in air. Ozone is a highly reactive gas that is formed in the atmosphere, in part, from emissions of NOx. Exposure to ozone and PM is linked to a number of health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to ozone or PM exposure. Under the settlement, Hyundai will pay a penalty of $47 million. For more information see Hyundai Construction Vehicles settlement page at https://www.epa.gov/enforcement/hyundai-construction-vehicles-clean-air-act-settlement-information-sheet.

Defendants (2)

• Hyundai Construction Equipment Americas, Inc.Named in complaintNamed in settlement
• Hyundai Heavy Industries, Co., Ltd.Named in complaintNamed in settlement

Facilities (1)

• HYUNDAI CONSTRUCTION EQUIPMENT AMERICAS

  6100 ATLANTIC BOULEVARD, NORCROSS, GA, 30071

  Registry ID: 110054085556

Statutes cited

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

Enforcement conclusions (1)

• Hyundai (HHI & HCEA)entered 2019-10-17

  Primary law: CAA

  Federal penalty: $47,000,000

Timeline (6 milestones)

• 2017-08-25Referred To Dept Of Justice
• 2017-09-29Enforcement Action Data Entered
• 2019-03-15Complaint Filed With Court
• 2019-09-19Final Order Lodged
• 2019-10-17Final Order Entered
• 2019-11-12Enforcement Action Closed