SACRAMENTO– Komatsu Zenoah Co. (KZ) and Patmont Motor Werks(PMW), Inc. paid California Environmental Protection Agency's Air Resources Board (ARB) a penalty of $100,000 for selling two-stroke off-road engines in California which do not comply to the state's Tier II air quality standards.

"Because these are small motors and on machines that are a lot of fun to ride they aren't often thought of as a problem," said ARB's Executive Officer Michael Kenny. "But it is important to recognize that just one of these engines emits as many hydrocarbons as fifty 2000 model year cars."

Between January 2000 and September 2001 PMW sold in California motorized scooters and other non-preempted equipment with two stroke engines that do not conform to ARB's Tier II Standards. The Tier II Regulations for Small Off-Road Engines is mandatory for all units built after January 1, 2000. KZ and PMW were jointly named in this case because regulations stipulate that original manufacturers and subsequent distributors must both ensure that engines intended for sale in California meet all required emissions standards.

Under the terms of the agreement KZ and PMW will pay an additional $2,675 within 60 days of the final settlement. The companies agreed to try to recover as many of the non-compliant scooters as possible. For each scooter sold and recovered the $2,675 will be reduced by $25.00. This credit will only be applied to those scooters recovered before the additional payment date. Also, KZ and PMW have withdrawn their objection to the U.S. EPA approval that allows California to set more stringent rules for this engine category. The Clean Air Act allows California to set more stringent regulations because this state for various reasons has a greater pollution problem.

The $100,000 from this settlement has been placed in California's Air Pollution Control Fund (APCF), which is used to mitigate various sources of pollution throughout the state. The state uses this fund to educate the public and provide programs to minimize the output of smog forming emissions from various sources. Through incentive and buyback programs the APCF reduces the numbers of pollution sources.