This case addresses violations of the Clean Air Act (CAA) by American Science and Engineering (ASE), a Massachusetts corporation which manufactures and sells specially equipped vehicles that can detect explosives, chemicals, and other potential security risks and contraband. ASE, in a to EPA letter dated October 16, 2009 disclosed under EPA's Final Policy Statement entitled Incentives for Self-policing: Discovery,Disclosure, Correction, and Prevention of Violations (Audit Policy) that it imported into the United States 54 uncertified light-duty vehicles. The CAA requires, among other things, that light-duty vehicles be covered by an EPA issued Certificate of Conformity (see 40 C.F.R. Part 85 and 86).
EPA issued the Audit Policy to encourage regulated entities to conduct voluntary compliance evaluations and to disclose and promptly correct violations. Where the disclosing party establishes that it satisfies all of the conditions set forth in the Audit Policy, EPA will not seek gravity-based civil penalties. EPA concluded that ASE in its self-disclosure did not meet all of the conditions set forth in the Audit Policy and did not qualify for a penalty reduction pursuant to the policy.
As part of the settlement with EPA, ASE has agreed to pay a $74,000 civil penalty.