Facts

The U.S. Environmental Protection Agency (EPA) and Dept. of Justice charged two Los Angeles-based consulting firms, MotorScience Inc. and MotorScience Enterprises Inc., with Clean Air Act violations. MotorScience was an engine certification consultant that assisted overseas companies in getting EPA certifications.

The State of California also intervened in the action, alleging further violations of California laws by defendants.

PLAINTIFF'S CONTENTIONS:
The EPA alleged that MotorScience was a consultant who assisted importers and manufacturers of vehicles to import and sell vehicles and engines in the U.S. The EPA contended that MotorScience assisted them by preparing and submitting to the U.S. EPA applications for certificates of conformity (COC), which are necessary to import. The EPA also contended that MotorScience has submitted hundreds of COC applications on behalf of numerous companies, most of which are based in China.
The EPA claimed 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. The emissions tests would ensure that the vehicles met applicable limits on harmful air pollution.

As a result, MotorScience caused its clients to violate EPA regulations by failing to properly test emission data vehicles, failing to provide the clients with copies of Certificates of Conformity applications, failing to create and maintain records on how durability mileage was accumulated in the vehicles in question, and failing to maintain records on all maintenance performed on the vehicles.

Result

The parties settled for $3.55 million. MotorScience also agreed to pay an additional $60,000 in civil penalties within six months. The settlement agreement also included strict monitoring and reporting requirements for MotorScience if it intended to do any work involving off-road vehicles for the next 15 years.