Between 2002 and 2008, PowerTrain imported 79,830 nonroad engines or pieces of equipment into the US that were not covered by a Clean Air Act-required certificate of conformity. The engines and equipment were sold to businesses and individuals through Wood Sales Company Inc. and Tool Mart, Inc. The engines and equipment were not covered by certificates of conformity because they were different models, had different power ratings, or were made by a different manufacturer than the listed on the certificate. The engines also lacked two-year emissions-related warranties, as required by law.

Under the settlement, PowerTrain will implement a plan to ensure that the engines and equipment they import in the future comply with Clean Air Act requirements. They will also offset the excess emissions of hydrocarbons, nitrogen oxides, and carbon monoxide resulting from the sale of the illegal engines and equipment. As one of the offset projects, PowerTrain will spend an estimated $600,000 to provide subsidizes for consumers to replace old wood-burning appliances with efficient, EPA-certified wood stoves.

EPA estimates that the PowerTrain engines that were sold to the public caused excess emissions of hydrocarbons and nitrogen oxides, which contribute to the formation of ground-level ozone (smog). Ground level ozone can trigger a variety of health problems, including chest pain, coughing, throat irritation and congestion. It can also worsen bronchitis, emphysema and asthma.

The proposed consent decree lodged with the United States District Court for the District of Columbia, will be subject to a 30-day public comment period.