This case addresses violations of the Clean Air Act (CAA) by Krone NA, Inc., (Krone), located in Memphis, Tennessee. Krone imported 60 nonroad engines that that were neither certified nor properly exempted from certification, in violation of Section 203 ofthe Clean Air Act (42 U.S.C. § 7522(aXI) and 40 C.F.R. §1068.101 (a)(1). However, Krone demonstrated that the improperly labeled engines would have qualified for the FLEX exemption (40 C.F.R. §89.102), had the engines not been improperly labeled. Respondent also imported 17 uncertified 311kW nonroad compression-ignition engines in violation of Section 203 of the Clean Air Act (42 U.S.C. §7522(a(l)) and 40 C.F.R. §l068.10l(a)(l).
Before settling with EPA, Krone exported 23 of the engines. As a result of the enforcement action, Krone agreed to relabel 16 engines which it still had in inventory and to commence a service campaign to re-label the remaining improperly labeled engines with a label meeting the requirements of 40 C.F.R. §89.102(i)(9). Krone also paid a $28,000 civil penalty to the United States Treasury.