UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA
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1 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0 MARK A. GALLAGHER (D Bar No. 000) U.S. Department of Justice Environment and Natural Resources Division Environmental Enforcement Section Washington, D Tel: (0) -0 Fax: (0) - mark.gallagher@usdoj.gov EILEEN M. DEKER United States Attorney DOROTHY A. SHOUTEN Assistant United States Attorney hief, ivil Division MONIA L. MILLER (A Bar No. ) Assistant United States Attorney Room, Federal Building 00 North Los Angeles Street Los Angeles, alifornia 00 Tel: () -0 Fax: () - monica.miller@usdoj.gov Attorneys for Plaintiff United States of America UNITED STATES DISTRIT OURT ENTRAL DISTRIT OF ALIFORNIA x UNITED STATES OF AMERIA, v. Plaintiff, GOLDENVALE, IN., Defendant x ivil No. OMPLAINT
2 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. The United States of America, by the authority of the Attorney General of the United States and at the request of the Administrator of the United States Environmental Protection Agency, ( EPA ), files this complaint and alleges as follows: NATURE OF ATION. This is a civil action brought pursuant to Sections 0(a), 0, and (d) of the lean Air Act ( AA ), U.S.. (a),, and (d), and the regulations promulgated thereunder, for the assessment of civil penalties and award of injunctive relief against Goldenvale, Inc. ( Goldenvale ) for violations of the AA. JURISDITION AND VENUE. This ourt has jurisdiction over the subject matter of, and the parties to, this action pursuant to AA Section 0(b), U.S.. (b).. Venue is proper in this jurisdiction pursuant to AA Section 0(b), U.S.. (b), because the Defendant has its principal place of business here. DEFENDANT. Defendant Goldenvale is incorporated under the laws of the State of alifornia and does business in the State of alifornia.
3 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. Goldenvale is a person within the meaning of AA Section 0(e). U.S.. 0(e).. Goldenvale was, at all times relevant to this omplaint, an importer into the United States of highway motorcycles, all-terrain vehicles ( ATVs ), and off-highway motorcycles. STATUTORY AND REGULATORY BAKGROUND. This action arises under Title II of the AA, U.S.. et seq., and the regulations promulgated thereunder, which are aimed at reducing emissions from mobile sources of air pollution, including, inter alia, highway motorcycles and recreational vehicles, including ATVs and off-highway motorcycles. A. ertification Requirements. Section 0(a)() of the AA, U.S.. (a)(), prohibits manufacturers of new motor vehicles from selling in the United States any new motor vehicle or new motor vehicle engine unless the vehicle or engine is covered by a certificate of conformity ( O ) issued by EPA under regulations prescribed by the AA governing engine and vehicle emission standards. 0. Section 0(a)() of the AA, U.S.. (a)(), also prohibits any person from importing into the United States any new motor vehicle or new
4 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0 motor vehicle engine after the effective date of regulations applicable to such vehicles or engines, unless the vehicle or engine is covered by a O.. Section (d) of the AA, U.S.. (d), together with the recreational vehicle regulations at 0.F.R. Parts 0 and 0, extend the prohibition set forth in Section 0(a)() to the sale or importation of any recreational vehicles, such as the ATVs and off-highway motorcycles at issue here, unless such engine or vehicle is covered by a O. See 0.F.R. 0.0(a)() and (b)() (recreational vehicles).. The requirement for a O became applicable to all three types of vehicles at issue in this matter as follows: new highway motorcycles with engines larger than 0 cubic centimeters ( cc ), beginning with the model year (0.F.R..0-); new highway motorcycles regardless of engine size, beginning with 00 model year (0.F.R..0-00); and new recreational vehicles (including ATVs and off-highway motorcycles), beginning with the 00 model year (0.F.R. 0.0 and 0.0).. To obtain a O, the manufacturer, including an importer, must submit an application to EPA for each vehicle family and for each model year for which it seeks certification. 0.F.R..-0 (highway motorcycles) and 0.0 (recreational vehicles).
5 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. The O application must include, among other things, an identification of the engine family, a description of the vehicles, a description of their engine and their emission control system, and test results from a prototype emissions data vehicle. 0.F.R..-0 (highway motorcycles) and 0.0 (recreational vehicles).. The O application for each engine or vehicle must include a description of all available adjustable parameters or other adjustments that may affect emissions. 0.F.R..-0(a)()(ii); 0.0(q); 0.(c)-(d).. Once issued, a O covers only those engines and vehicles: (i) produced in the stated model year, 0.F.R..-(a)()(ii) (highway motorcycles), 0.0(a) (recreational vehicles); (ii) imported after the effective date of the O, 0.F.R. 0.0(a) (recreational vehicles); (iii) which conform to the specifications described in the O and associated O application, 0.F.R. 0.0(a) and (c) (recreational vehicles). B. Enforcement Provisions. AA Sections 0, 0(a) (b) and (d), U.S.., (a) (b), and (d), and 0.F.R. 0., authorize EPA to commence a civil action to assess and recover civil penalties and seek injunctive relief against any person that violates AA Section 0(a), U.S.. (a), and 0.F.R. 0.0.
6 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. Under AA Section 0(a), U.S.. (a), each vehicle or engine imported, offered for sale, distributed in commerce, or sold in violation of AA Section 0(a), U.S.. (a), constitutes a separate violation of the AA and is subject to a civil penalty not to exceed $,000 per violation. See also 0.F.R. 0.0(a)() (prohibited acts and penalties as to recreational vehicles).. Pursuant to the Federal ivil Penalties Inflation Adjustment Act of 0, U.S.., as amended by the Debt ollection Improvement Act of, U.S.. 0, and EPA s latest ivil Monetary Penalty Inflation Adjustment Rule (finalized on January, 00), the maximum civil penalty is, for violations of AA Section 0(a) occurring between March, 00 and January, 00, $,00 per day, per violation, and for violations occurring on or after January, 00, $,00 per day, per violation. See Fed. Reg. - (Feb., 00); Fed. Reg. (Jan., 00); 0.F.R... GENERAL ALLEGATIONS 0. The approximately, recreational vehicles and highway motorcycles described in the Appendix ( Subject Vehicles ) were imported into the United States from March 00 through January 00.. Each O issued by EPA purportedly covering the Subject Vehicles was issued with the condition that the O covered only those vehicles and
7 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0 engines that conformed in all material respects to the design specifications that applied to those vehicles described in the applicable O application.. Defendant was identified on applicable customs forms as the importer of record for all of the Subject Vehicles.. Defendant is, with respect to the Subject Vehicles, a manufacturer as defined in AA Section (), U.S.. 0(). 0.F.R. 0.0 and As set forth in the Appendix, for at least of the Subject Vehicles, the tenth digit of the vehicle identification number (VIN), which digit corresponds to the model year in which the vehicle was built, does not match the model year specified in the O and the O application purportedly covering such vehicles, and indicates that the vehicle was not built during the model year specified in such O or such O application.. As set forth in the Appendix, for at least, of the Subject Vehicles, the actual vehicle manufacturer, as listed on invoices submitted with the applicable importation documents, does not match the manufacturer identified in the O application purportedly covering such vehicles. Subject to a reasonable opportunity for further investigation or discovery, these vehicles have design specifications that are different from the design specifications of the vehicles described in the applicable O applications.
8 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. As set forth in the Appendix, for at least, of the Subject Vehicles, the actual engine displacement, as listed on the applicable importation documents, does not match the engine displacement described in the O application purportedly covering such vehicles.. As set forth in the Appendix, for at least of the Subject Vehicles, the vehicles engines were built with an adjustable parameter or other adjustment that affects emissions, specifically a fully adjustable air/fuel mixture screw on the carburetor or a replaceable main jet in the carburetor, that was not described in the O application covering such vehicles.. Subject to a reasonable opportunity for further investigation or discovery, each of the differences described in paragraphs through is a material difference in that it may affect emissions. LAIM FOR RELIEF IMPORTING UNERTIFIED VEHILES. The United States realleges paragraphs through as if fully set forth herein. 0. Each Subject Vehicle described in paragraphs through does not conform in all material respects to the O and O application purportedly covering such vehicle, or otherwise is not covered by the O purportedly covering such vehicle and, therefore, is uncertified.
9 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0. Each uncertified Subject Vehicle that Defendant imported is a separate violation of AA Section 0(a)(), U.S.. (a)(), and/or 0.F.R Unless Defendant is enjoined by the ourt, it will or may continue to cause further violations of the type alleged herein.. Pursuant to AA Sections 0(a), 0, and 0(a), U.S.. (a) and (a), Defendant is liable for injunctive relief and civil penalties of up to $,00 for each uncertified vehicle that Defendant imported between March 00 and January, 00, and for civil penalties of up to $,00 per uncertified vehicle imported on or after January, 00. PRAYER FOR RELIEF WHEREFORE Plaintiff, the United States, respectfully prays that this ourt:. Grant a permanent injunction restraining any further violations and directing Defendant to take steps necessary to come into permanent and consistent compliance with applicable regulations, including, without limitation, a recall as well as measures to mitigate any excess emissions that may have resulted from the violations.. Grant a judgment assessing civil penalties against Defendant and in favor of the United States, not to exceed: (a) $,00 for each violation from
10 ase :-cv-00-dtb Document Filed 0// Page 0 of Page ID #:0 0 0 March, 00 through January, 00; or (b) $,00 for each violation after January, 00. and. Award of the United States costs and disbursements in this action;. Granting such other relief as this ourt deems appropriate. JOHN. RUDEN Assistant Attorney General U.S. Department of Justice Environment and Natural Resources Division s/ Mark Gallagher MARK A. GALLAGHER Senior Attorney U.S. Department of Justice Environment and Natural Resources Division Environmental Enforcement Section P.O. Box Washington, D EILEEN M. DEKER United States Attorney DOROTHY A. SHOUTEN Assistant United States Attorney hief, ivil Division MONIA L. MILLER Assistant United States Attorney Room, Federal Building 00 North Los Angeles Street Los Angeles, alifornia 00 0
11 ase :-cv-00-dtb Document Filed 0// Page of Page ID #: 0 0 Of ounsel: MEETU KAUL Attorney-Advisor Air Enforcement Division (A) U.S. Environmental Protection Agency 00 Pennsylvania Avenue, NW Washington, D.. 00
12 Line Engine Family Type Model Name ase :-cv-00-dtb Document Filed 0// Page of Page ID #: U.S. v. GOLDENVALE, IN., APPENDIX TO OMPLAINT Viola- # of Vetion type hicles ATV RTS-0, RTX- 0, RTB-0, RTB-0, ATV RTB-0, RTB- 0 GLDX0.0NFG ATV RTS-0 0 ATV RTX-0, ZSX- 0 ATV KTX-0, KTX- 0 0 ATV KTX-0, KSX- 0 O Effective Date Importation Date(s) //00 to //00 O Model Year Year Built (per VIN) Displace ment (O) Actual Displace ment (invoice) Manufacturer per O Application Actual Manufacturer (per invoice) Qunsheng Group o., Ltd. //00 Yongkang Wangli Hardware Manufacturing o., Ltd. //00 to //00 //00 to //00 //00 to //00 Zhejiang haozhong Industrial o., Ltd Zhejiang Kangdi Vehicles o., Ltd Zhejiang Taizhou Wangye Power o., Ltd //00 Zhejiang Yongkang Top Imp. & Exp. o., Ltd ATV RTJ-0 0 //00 Zhejiang haozhong Industrial o., Ltd ATV RTJ-0, RTM- //00 to 0, KTR-0,,0 //00 KTX-0 Zhejiang Kangdi Vehicles o., Ltd Zhejiang Shengqi Motion Apparatus o., Ltd. Or Unique Industrial & GLDX0.NFG //00 to Trading o., Ltd. ATV KTR-0 Zhejiang Taizhou Wangye Power o., Ltd //00 0 ATV KTR-0, KTX- //00 to 0, RTM-0 //00 Zhejiang Yongkang Top Imp. & Exp. o., Ltd GLDX0.0NFG ATV RTU-0 //00 to //00 Unique Industrial & Trading o., Ltd. hongqing Astronautic Bashan Motorcycle Manufacturing o Ltd ATV //00 to //00 Shanghai Textile Raw Materials orporation //00/ to ATV Zhejiang Kangdi Vehicles o., Ltd //00 Zhejiang Shengqi Motion Apparatus o., Ltd. Or Unique Industrial & GLDX0.NFG RTX-0 //00 to Trading o., Ltd. ATV Zhejiang Yongkang Top Imp. & Exp. o., Ltd //00 ATV //00 to //00 High Hope Int'l Group Jiangsu Foodstuffs Imp & Exp orp., Ltd. JNHX.00 ATV JS0ATV- //00 to 0//00 Jianshe Industries o., Ltd. Or Jianshe USA, Inc. hongqing North Jianshe Imp. & Exp. Trade o., Ltd. KNGX.AM ATV KG- //00 Zhejiang Health Ascend Industry o., Ltd. hongqing Astronautic Bashan Motorcycle Manufacturing o., Ltd MSX.00ATV ATV KAMIKAZE0 //00 Zhejiang Yongkang Luyuan Industrial and Trading o., Ltd. Zhejiang Shenmao Appliance o., Ltd. GLDX.00UAL ATV GV00UTV-0 //00 Shanghai Shenke Motorcycle o., Ltd. Zhejiang Xinyang Industry o., Ltd 0 ATV KSX-0 I //00 // Zhejiang Taizhou Wangye Power o., Ltd KSX-0, RTB- ATV 0, RTK-0, //00 to 0 RTS-0, RTU- //00 Qunsheng Group o., Ltd. 0, RTX-0 GLDX0.0NFG ATV KTX-0, KSX- //00 to 0 //00 Unique Industrial and Trading o., Ltd. Zhejiang Taizhou Wangye Power o., Ltd. ATV KSX-0 0 //00 Zhejiang Kakapo Vehicles o., Ltd. ATV RTB-0 0 //00 Zhejiang Shenmao Appliance o., Ltd ATV RTX-0 //00 to //00 NA ATV RTJ-0 I //00 // Taizhou Jonway Economic Trade o., Ltd ATV RTJ-0 //00 Zhejiang haozhong Industrial o., Ltd GLDX0.NFG //00 to Unique Industrial and Trading o., Ltd. ATV KTX-0 //00 Zhejiang Taizhou Wangye Power o., Ltd. ATV RTM-0 //00 Taizhou Jonway Economic Trade o., Ltd. 0 GLDX0.0NFG ATV RTU-0, RTX- 0, RTK-0 //00 to //00 Zhejiang Shengqi Motion Apparatus o., Ltd. Or Unique Industrial & Trading o., Ltd. Unique Industrial and Trading o., Ltd. hongqing Astronautic Bashan Motorcycle Manufacturing o., Ltd.
13 Line Engine Family Type Model Name ase :-cv-00-dtb Document Filed 0// Page of Page ID #: U.S. v. GOLDENVALE, IN., APPENDIX TO OMPLAINT Viola- # of Vetion type hicles O Effective Date Importation Date(s) O Model Year Year Built (per VIN) Displace ment (O) Actual Displace ment (invoice) Manufacturer per O Application Actual Manufacturer (per invoice) ATV RTQ-0 I //00 // Jinan Flybo Motor o., Ltd GLDX0.NFG ATV RTX-0 //00 to //00 Unique Industrial and Trading o., Ltd. Zhejiang Shengqi Motion Apparatus o., Ltd. ATV RTX-0 //00 High Hope Int'l Group Jiangsu Foodstuffs IMP&EXP orp., Ltd. GLD.00VA HM BOA-0 0 //00 Jiangsu DHLB Vehicle Manufacture o., Ltd GLD.00VA HM SIILY-0, //00 to BAHAMA-0, //00 MAUI-0 D Zhejiang Jiajue Motorcycle Manufacturing o., Ltd. GLD.00VA HM BOA-0, MAUI- 0, BAHAMA-0 //00 to //00 Zhejiang Taizhou Wangye Power o., Ltd GLD.00VA HM BOA-0 0 //00 Jiangsu DHLB Vehicle Manufacture o., Ltd 0//00 to GLD.00VA HM MAUI-0 0 BenZhou Vehicle Industry o., Ltd //00 GLD.0VA HM ATALINA-0, JAMAIA-0 //00 to //00 Zhejiang Jiajue Motorcycle Manufacturing o Ltd Trading o., Ltd. 0 GLD.0VA HM BALI-0 //00 Taizhou Jonway Economic Trade o., Ltd GLD.0VA HM ARUBA-0 //00 BenZhou Vehicle Industry o., Ltd HM D // GLD0.NFG YPRUS-0 //00 to Unique Industrial and Trading o., Ltd. Benzhou Vehicle Industry o., Ltd. HM 0 //00 ZTW.0SAA HM WY0T-, WY0T- //00 Zhejiang Taizhou Wangye Power o., Ltd. Benzhou Vehicle Industry o., Ltd. OHM RDX-00E 0//00 hongqing Kinlon Science & Technology Group Imp & Exp o., Ltd. Shanghai Goka Sports Motor o., Ltd. Or Unique Industrial & Trading GLDX.0VA RDB-00, RDB- o., Ltd. OHM 0//00 hongqing Guangyu Motorcycle Manufacture o., Ltd 00E, RDZ-00 GLDX0.NFG OHM RDS- //00 Unique Industrial & Trading o., Ltd. hongqing Shineray Motorcycle Manufacturing o. Ltd GLDX.0VA OHM RDB-00E D 0 // Unique Industrial and Trading o., Ltd. hongqing Guangyu Motorcycle Manufacture o., Ltd GLDX0.NFG OHM RDB-0 //00 Unique Industrial and Trading o., Ltd. Zhejiang Shenmao Appliance o., Ltd 0 GLDX0.NFG OHM RBD-0 //00 Unique Industrial and Trading o., Ltd. Zhejiang Shenmao Appliance o., Ltd GLDX0.0NFG ATV ATV-0J- 0/RTB-0 0//00 Unique Industrial and Trading o., Ltd. Zhejiang Kacpo Vehicles o. GLDX0.0NFG ATV ATV-0S/RTK- 0 P //00 Unique Industrial and Trading o., Ltd. Zhejiang Shenmao Appliance o., Ltd. GLDX0.0NFG ATV ATV-0S/RTK- 0 P //00 Unique Industrial and Trading o., Ltd. Zhejiang Shenmao Appliance o., Ltd. Uncertified Vehicles:, Key means manufacturer of imported engine or vehicle does not match manufacturer name identified in applicable O application. D means displacement of imported engine (as evidenced by applicable customs form) does not match displacement listed in applicable O application. I means vehicle was produced in a model year that was not covered by the applicable O, as evidenced by the th digit of the VIN. P means the vehicle or engine was produced with adjustable parameters or other adjustments that were not described in the O application. "ATV" means all-terrain vehicle "OHM" means off highway motorcycle "HM" means highway motorcycle Unique Industrial & Trading o., Ltd. Zhejiang Taizhou Wangye Power o., Ltd or Unique Industrial &
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