Komatsu Zenoah Settlement
Komatsu Zenoah Settles for $40,000 for Audit Test Violations
Komatsu Zenoah (KZ) failed to report to the ARB that one of their small off-road engine families exceeded the family emission level (FEL) during the quality audit testing for the second and third quarter of 2003. The test procedures require that the engine manufacturer report to the ARB, within 10 days, if a family exceeds an applicable emission limit. Instead, it was the Off-Road Certification/Audit section that discovered the reported average of the audit tests exceeded the FEL and it was they who notified KZ. Subsequently, KZ raised the FEL for the affected family to be the same as the standard. In addition, KZ paid back the emission credits earned by this family during the two quarters. The Health and Safety Code section 43212 provides for a civil penalty of $50 for each unit found to be in violation of emission standards and test procedures. KZ and ARB agreed to settle the alleged violations for $40,000. This is a precedent setting case in which we held firm in our settlement that the manufacturer selected FEL is the emission standard.