“The information submitted by NCD indicates that between January 1, 2020, and October 16, 2023, NCD sold, offered to sell, and/or caused the sale of approximately 2,497 defeat devices which included tunes, tuners, exhaust kits, and EGR block plates.”

💡 NCD LLC’s own sales records documented nearly four years of systematic Clean Air Act violations.

“In enacting the CAA, Congress found, in part, that the increasing use of motor vehicles . . . has resulted in mounting dangers to the public health and welfare.”

💡 Congress created the Clean Air Act specifically to address health dangers that NCD LLC’s products increased.

“EPA finds that NCD manufactured, sold, offered to sell, and/or caused the sale of parts or components, intended for use with, or as part of, a motor vehicle or motor vehicle engine, where a principal effect of the part or component was to bypass, defeat or render inoperative elements of design that control emissions, such as the EGR, DPF, SCR, catalyst, OBD systems and/or other elements of design on motor vehicles and motor vehicle engines, and NCD knew or should have known that such part or component was being offered for sale or installed for such use or put to such use.”

💡 EPA found NCD LLC had knowledge its products would be used to violate federal environmental law.

“NOx contributes to the formation of smog and acid rain, and can exacerbate respiratory diseases like asthma. Particulate matter is linked to a range of serious health problems, including heart and lung diseases, and even premature death.”

💡 The defeat devices NCD LLC sold directly increased pollution that causes serious diseases and death.

“The CAA does not exempt off-road use only or competition only motor vehicles or motor vehicle engines. The definitions for motor vehicle at CAA § 216(2); 42 U.S.C. § 7550(2) and 40 C.F.R. § 85.1703 make no exemption for motor vehicles or motor vehicle engines used for competition.”

💡 Companies cannot evade Clean Air Act requirements by claiming products are for off-road or racing use.

“EPA conducted an analysis of Respondent’s financial information and determined Respondent has a limited ability to pay. Consequently, in accordance with applicable law, EPA determined that the Assessed Penalty is an appropriate amount to settle this action.”

💡 The penalty was substantially reduced based on NCD LLC’s claimed inability to pay the full amount.

“For the purposes of this proceeding, as required by 40 C.F.R. § 22.18(b)(2), Respondent: admits to the jurisdictional allegations in this CAFO; admits to the stipulated facts stated above and neither admits nor denies the alleged violations of law stated above.”

💡 The settlement allows NCD LLC to resolve enforcement without admitting it violated environmental law.

“Vehicle and engine emissions standards reflect the greatest degree of emission reduction achievable through the application of [available] technology.”

💡 Defeat devices eliminate the most advanced pollution controls that modern technology has developed.

“Injection timing has a very significant impact on NOx emission rates, with advanced timing settings being associated with higher NOx.”

💡 Tuners that alter fuel injection timing dramatically increase nitrogen oxide pollution.

“Any violation of this CAFO may result in a civil judicial action for an injunction or civil penalties of up to $5,761 per part or component, as provided in Section 205(a) of the CAA, 42 U.S.C. § 7524(a), and 40 C.F.R. § 19.4.”

💡 EPA had authority to seek over $14 million in penalties but settled for $60,000.

“Within 30 calendar days from the date of Respondent’s signatures on this CAFO, Respondent shall notify, in writing, all customers who purchased any of the devices, equipment, and services described in Paragraphs 29 and 37 of Respondent’s settlement with EPA.”

💡 NCD LLC must tell customers about the settlement but faces no requirement to remove devices from their vehicles.

“The provisions of this CAFO shall apply to and be binding upon Respondent and its officers, directors, employees, successors, and assigns (including but not limited to Tyler Brancifort, owner of NCD, LLC/North Coast Diesel Performance).”

💡 Owner Tyler Brancifort is personally bound to ensure the company complies with settlement terms.

“For purposes of the identification requirement in Section 162(f)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. § 162(f)(2)(A)(ii), and 26 C.F.R. § 162-21(b)(2), performance of the conditions of this paragraph is restitution, remediation, or required to come into compliance with the law.”

💡 The settlement characterizes compliance actions as restitution, potentially affecting tax treatment.

“Penalties, interest, and other charges paid pursuant to this Agreement shall not be deductible for purposes of federal taxes.”

💡 NCD LLC cannot write off the $60,000 penalty as a business expense on federal tax returns.

“The EPA reserves the right to revoke this CAFO and settlement penalty if and to the extent that the EPA finds, after signing this CAFO, that any information provided by Respondent and Tyler Brancifort (owner of NCD, LLC and North Coast Diesel Performance) was materially false or inaccurate at the time such information was provided to the EPA.”

💡 EPA can void the settlement if it discovers NCD LLC or its owner provided false information.