U.S, ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. ADMINISTRATIVE SETTLEM} AGREEMI ) In the Matter of: > ) ‘Truper, Corp. ) SEB AED #7078 d/b/a Tytan International ) ) Respondent ) ‘This Administrative Settlement Agreement is mide and entered into by and between the United States Environmental Protection Agency (EPA), Truper, Corp., d/b/a Tytan international (Respondent) regarding compliance by Respondent wil. the requirements of section 203 and 213 of te Clean Air Act (Act), #2 U.S.C, §§ 7522 and 7547, and the regulations promulgated thereunder at 40 CFR, Part 89. Purpose 1.‘ The purpose of this Administrative Settlement 4 greement (Agrecment) is to resolve any and all claims by EPA under the Act and Part 86 arising out of the importation of eight tractors containing the nonroad engines described in Atachment 1 (Subject Tractors}, ‘hile ensuring that prior Violations are identified and resolved and that future violations ate avoided. Definitions 2. Forthe purposes of this Agreement. the followir g deGnitions ap ply A. Certified engine: A “cestitied engine” is a nonroad engine that was built after the applicable effective dates of the Part 89 segulalions and that is covered by a Certificate of Conformity. pl’B. Dates of the Applicable Regulations: Th ter “dates of the applicable regulations” means the date after which the cestification requirement applies to an engine, as defined in Table 2 of 40 CFR, § 89.112, C. Uncertified engine: An “uncertified engie™ is a nontoad engine built afler the applicable effective date of the regulations but which is not covered by a Certificate of Conformity. 1. This matter: As used in this Agreement, “this matier” means the Respondent's importation of the Subject Engines ident fied in Attachment [and any civil liability that may apply to violations of the Clean Air Act and implementing regulations governing importation of nor soad engines identified in Attachments { and ll EB Certificate of Conformity: A *Centiti to of Conformity” means the document issued by EPA to a manufacturer under 40 C.E.R. § 89.105 after EPA bas, determined that the manufactorer’s appli:ation is complete and that the engine family meets the requirements of 40 C.P.R, Parts 89 and the Clean Air Act. Issuance of the Certificate of Conformity permits production oF engines built in accordance with the manufacturer's appl cation provided that the production is, within the period during whieb the Ceriitivate of Conformity is valid, Subject tractors:"The term “Subject Trae ors” means the tractors whose sia numbers are fisted in Attachinent 4 Regulatory Authority: 3. Sections 203(a) and 213(d) of the Clean Air Aet, 42 U, Statutory $8 7542la) and 7547(€), prohibit the safe, offering for sale, introduction, or delivery for introduction into commerce, or the importation of any nontoad ve ricle or engine after the applicable effective date of the regulations unless such vehicle or engine is certified.4 40 CER. $ 89.1003(a)1)¢H) prohibits any perscn from importing into the United States ‘any new nonroad engine manufactured after the applicable effective date of the regulations, unless such engine is a certified eng ne 5. 40. C.P.R, § 89,1003(0)4) requires monroad vehicle and equipment manufacturers to wse certified engines in vehicles and equipment man afactured after the effective date, 6 40 CF.R, § 89.2 defines a nonroad vehicle or eq sipment manufacturer as any person engaged in the manufacturing or assembling of rew noproad vehicles of equipment, or importing such vehicles or equipment for resate, or a person acting for, and under the control of such person. 7 40 CER, § 89.110 requires the original engine r anufacturer 10 affix, at the time of manufacture of a cortified engine, a permanent ad legible label which identifies the nonroad engine and provides the information specified in that section, inetuding a statement that the engine is a certified engine. Te fabet most be legible and readily visible to the average person after the engine is bistalled in the equipment. 8. 40. CBR, § 89.102 sets forth a program to provide transitional flexibility for nonroad equipment manufacturers, the Transition Provisions for uipment Manufacturers (YPEM). The TPEM provides a limited opportunity for the manufaciure or importation ‘of equipment containing certain engines that otherwise do not comply with the emission standards of 40 C.F.R, Part 89. Limitations of the TI °M include, but are not limited to, use of engines that are produced after the Dates cf the Applicable Regulations for the engines contained in the equipinent being manufictured or imported, a limit of 200 engines per year per power category, and use of only one engine manufacturer per power category for the duration of the program, Background 9. On December 2, 2004, Respondent imparted the Subject Tiactors pee10. u 12, iB On December 14, 2004, U $. Customs and Border Proizction (Customs) deta Subject Tractors at the port of Portland, Oregon Respondent is the importer of the Subject Tractors. The Subject Tractors contain nonroad compress on ignition engines manufactured in Model Year 2004 which is after the Dates of the Applicable Regulations. Asa consequence, cestified engines were sequised to >¢ used in the Subject Tractors, ‘The Subject Tractors do not contain certified enysines, and do not have affixed the certification label required by 40 CAR. § 89.119, For the duration of the TPEM, Respondent imperted thirteen tractors in the power category greater than or equal to 8 kW and less t nan 19 KW with engines made by « manufacturer ether than Changchai, as shown in Attachment Hl. Respondent failed to comply with 40 CER, § 89.102(4)(2)(iii) and is liable for thirteen violations of Sections, 203(a) and 213(d) of the Clean Air Act, 42 U.S.C. §§ 7522 and 7547, and 40 CFR. § 89.1003(a)(2), For the duration of the TPEM, Respondent imported clevea tractors in the power category eater thao or equal to 19 kW and less than 377.W with engines made by a manufacturer other than Feidong, as shown in Attachment II. Respondent filed to comply with 40 CBR. § 89.102(c)(2)Git) and is liable tor elever violations of Sections 203(a) and 213(d) of the Clean Air Act, 42 U.S.C. §§ 7522 and 7547, and 40. CAR, § 89,1003€8)(2), in addition (0 the violations listed in Paragraph 14. ‘erms of Agreement 16. Within 30 days of the date of this Agreement, Respondent shall provide EPA with a plan reasonably calculated to insure that all nonroad engines imported by Respondent into the United States after the date of this Agreement shill be imported in a manner that compties with the requirements of the Act and 40 C.P.R, Parts 89 and 90, je7 19. Respondent shall decrease its 2005 TPEM allowance for equipment containing uncertified nonroad diesel engines rated equi! tc or above & KW and less than 19 kW, under 40 CPR. § 89,102(4)(2) by thirteen Respondent shail decrease its 2005 TPEM allowance for equipment containing uncertified nonroad diesel engines rated equal to or above 19 KW and less than 37 kW, under 40 CER. § 89.1242} by eleven. Respondent shall submit reports showing comphance with the TPEM requirements under 40. CER, § 89.102(d). Such reports shalt contaia, for each pieve of equipment imported by Respondent under the TPEM, the name of the engine and chassis manufacturer, engine and chassis serial numbers, engine and chassis dite of manufacture, engine power rating, engine power category under 46 C.F.R. § 89.112, and the date of importation Notwithstanding 40 CER, §89.102)(1), two such reports, covering Responden’s importation for the previous calendar year, shall 3e submittes on or before February 28, 2006, and February 28, 2007, All submissions shall be sent to EPA at the following address: Pavid Alexander U.S. EPA, OECA/AED (maileode 22424) 3200 Pennsylvania Ave NW (Rim. 111A) Washington, DC 20460-0001 facsimile: (202) 564-0069 Respondent shall pay to the United States $2,500 within 30 calendar days of the date of this Agreement. Late payment of the eivil penalt is subject to interest and fees as specified in 31 U.S.C. § 3717. Respondent agrees to pay the amount by certified check or cashier's check payable 10 the "United States of America,” and to mail the payment to U.S, Environmental Protection Agency Washington Accounting Operations P.O, Box 36027M Pittsburgh, Pennsylvania 15251 ATTN: AED/MSEB # 7078 fe!24. Simuliancously, a photocopy of the check shall be mailed to EPA at the adress specified in Paragraph 22 or faxed to (202) 564-0069 to the attention of David Alexander. Such check shall be identified with the case number aad Respondent's name. Respondent agrees that it will not import any nontoad vehicle or piece of equipment manufactured on or after the applicable model yzars set forth in 40 C.E.R. § 89.112 unless the nonroad vehicle or equipment is powered by’ @ certified nonroad engine, or contains a nontoad engine that was manufactured after the Daves of the Applicable Regulations and is otherwise imported in compliance with 40 C.F.R. § 89.102(d). Provisions The effective date of this Agreement is the date -hat EPA executes the Agreement and provides a copy of the executed Agreement to the Respondent Respondent hercby represents that the individual or individuals executing this Agreement on behalf of Respondent are authorized to do so on behalf of Respondent and that such execution is intended and is sufficient to bind Respondent, its agents, assigns, or suecessors Notwithstanding any other provision of this agreement, upon Respondent's failure to perform, or default of or failure to comply with any terms of this Agreement, EPA may sefer this matter to the United States Department of Justive co recover civil penalties pursuant to Section 205 of the Aet, 42 U.S.C. § "524, and pursue any other remedies avaitable to it. Respondent specifically agrecs that in the event of such defanlt or failure 20 comply, EPA may procect! in an action based am the origginal claim of violation of the ‘Act and Part 89, Respondent expressly waives i's right to assert that such action is barred by any eppticable statute of limitation, see 28 U.3.C. § 2462, The Péfeet of Settlement described in Paragraph 29 of this Agreement is conditioned upon the uutbfuitness, accuracy and completeness of Respondent's disclosures and representations to EPA under this Agreement, including but not fimnited to represemlations yw’‘egarding importations contained in Attachment U, and the prompt and compete remediation of any violations in accordance with this agreement. Stipulated Penalties: 20 28, For failure to comply with the terms of this Agreement on a timely basis Respondent shal) pay stipulated penalties to the United States as follows: A. For failure to timely pay the penalty, or provide proof of such payment, purstiant to Paragraph 21, $400 per day. B, For failure to submit to EPA, in writing, a plan to prevent future violations, and reduce importations pursuant to flexibility provisions pursuant to Paragraphs 16 through 18, $400 per day. C. For failure to submit reports, inciuding failure to submit timely reports, of importations under 40 C.F.R. § 89.102 in aceordance with Paragraph 19, $300 per day. 1D. For importing a piece of nonroad equipment containing an uncertified engine that does not qualify for the TPEM, $10,000 per violation, ANI stipulated penalties under Paragraph 27 of this Agreement shall begin to accrue on the day after performance is due, and shall continue to accrue until the day compliance is achieved. Nothing herein shall prevent the simultaneous accrua! of separate stipulated penalties for separate violations of this Agteement. All stipulated penalties shall be paid in accordance with Paragraph 2] and shalt be paid within five days of written demand by: EPA. Stipulated penalties shall not be construed as prohibiting, altering, or in any way limiting the ability of EPA from seeking any other remedy or sanction avaitable by virme of Respondents violation of this Agreement or of the statutes or regulations upon which the Agreement is based. pr’Effect of Agreement 29. Upon completion ofthe terms of this Agreement, the alleged violations described in this Agreement shal) be considered resolved. ‘The following agrce to the terms of this Agreement: Fruper, Comp. alba Tytan international Yel dood sls Mark Leonard, President DateAdministrative Settlement Agreement, United States Enviromental Protection Agency: In the Matter of Truper, Conp. us Environmental Protection Agency Air Enforcement Division Office of Enforcement and Compliance AssuranceAdministrative Semlement Agreement, United States Enviromental Protection Agency’ inv the Matter of Truper, Corp. Attachment 1 SUBJECT TRACTORS HELD BY CUSTOMS | Tractor Serial mie (7 Sua" 36 [¥40000864A [| CHANGCHAT | N390T (s00a-37 | Yoasr0636a_[ CHANGCHAI | N300T Sous 38 [ va0o100s0a_[ CHANGCHAL sun4- 39 | Ya0o10643_ | CHANGCHAT ‘S004 40 | CA0S0076TA | CHANGCRAL YES [NO 3004-41 | C40601172_| CHANGCHAI | N390T | 184[ YES [NO oa 42 | o4F0404603 | CHANGCHAL [ N390T | 18.4] YES [NO [_So0a- 43 | 040404595 | CHANGCHAI [ N390T [ 184] VES__[NO “10.“engine __ Serialt Engine] Model _ Engine Brand _ Feiaoogs Feidong. | Feitong i a95T2 49512 Mfg. Date |KW Rating | Engine |” Power” 4 6 [Gaa {3a faisnan Taishan 2004 | Taishan | 5 serials “Tractor > Assembly Date! 2ous.a 2004.4 fT 2004.4 Date] Shipped 2004 2004.4 | moro] se aod) aa Faishan ¥402139262 Faishan FYangdongl Yangdong] Y¥40214206z Taisha i ~ 2004.3, ‘Yangdong| 15 | ___ 830% Taishan (a0r10 [2004.3 »|Yangdong| YD2-485 | y40400721z “Taishan 1 1 2004.4 ‘Yangdong| YD2-485 | y404007262 | 200: Taishan | i TYangdong) ¥D2-485 | y40315565z | 2008.3. | 25.7} Taishan 25,7] Taishan Taishan, 49s | ya04007302 jaoaOOT 232 Yangdong| ya03¢ yangdong | ‘angdong| 35. Changchail_N3S0T | c4O4b2a¢7a Weifang | IChangehai 0404024358 “Weifang | | : as |Changchal ni iChangchail c40702338a Weifang | | Weifang mngch: sngchai A096 ‘Changchail hangehal_NSGOT” | 40 : (Ghangenall” N300T” [oaaadzdaso 1200487 18.4 9 | 14 | Weitang | | Weitang 4 _| Weifang 20nd 4” 2004-4 Wierang f 254 254 | at500970} [4isa027 1 | 41500279 Enso0o72 | ‘4500280 | 44600973 | ~ fae 3 2004.8 2004 8 2004.8 [20048 20048 | 2004 8{SF Engine” [ “Engine” | “eaigine 7 Engiva ”” Power”) “factor | fractor | “Tracter””|” Tracter Date 1) Brand | Model} Seriaié | Mfg Date KWRating! Mig. Model | Serigi _ Assemniy Date Shipped ‘w\Changchay, N30 [cdoao2427a za04.a | 184 | Weifang | 284 [arso0bes! 20046 | 20088 404024300 | 2008 18.4 | Weilang | 254 | 4100064 | 20045 045 | cd0402428a / 008.4 1” tea" | Weitang | 25a J arso0de0 | 20045004 5 | 1s serena Ng9OT_| caog0zadda | 2006.4 | “18.4 |'Weilane | 264 | atS00087, | [ssiChangenaal [is}Changchar|_ “ai00274 15 Changchail 41500281 IChangchat Weifang | 41600282 « |Changchaa Ne 41500070 “s|Changchal Weifang Tatso0069 ' sa|Changchall —18.4__| Weifang | 7 eee ‘s|Changchail a f 21500436, sal Changchail Wesfang 4150043 ‘a|Changchail ca48056 Weitang “41800438 200411 [salChangehail | casoseaza | 20048 184 | Weifang | “48500439 2004.11 sngchail | easoseiza_| 20048 | 1s4 | Weifang 50080 | [2008.75 ‘|Changohai| 248056080 jaa__|Weifang ‘as004at [2008.15 |Changchal 248056 15a ats00442 fangchail N3G0T_| ca60s60sa | arsooaa3_ s[Changchail 567 ‘T50074 wiChangehal 088 af Yanadong T0076 | 10381 | 2] Yangdore| 21008039) [21608038Engine i rp Engine Power | Tractor Tractor) Date | Mig. by : Tractor Mfg._ SHANDONG TRACTOR WORKS/Taishan Address ___.. JIANGSU YANG DON : Address Provinge JIANGSU JIANG YAN City, Province ‘China [ie|Engine Factory __ CHANG CHAI . [ee enaine Mfg, Ng90T Siaddrows '—~ANGSU CHANG GHAI [ar/ciy, Proving JAN el