Philadelphia automotive retailer Pep Boys - Manny

Philadelphia automotive retailer Pep Boys - Manny, Moe & Jack has agreed to pay a $5 million civil penalty and take steps to settle claims that it violated the federal Clean Air Act in importing and selling foreign-made vehicles and engines.

The auto-parts and service chain with $1.9 billion in annual sales and more than 580 stores imported and sold motorcycles, recreational vehicles, and Chinese-manufactured generators that did not comply with U.S. environmental requirements, the Environmental Protection Agency and Justice Department said Monday.

Pep Boys said in a statement that it had relied on "vendors to ensure that their products were compliant."

The vast majority of the allegations "relate to deficiencies in paperwork," said Pep Boys general counsel Brian Zuckerman, but "we do acknowledge the possibility that some of the merchandise we sold may have generated excess emissions."

Pep Boys said it would implement a lawn mower exchange program designed to reduce emissions in communities where its stores are located. The company will make available discounts on new push and electric mowers in exchange for customers' gas-powered mowers. Details of the lawn mower exchange and extended warranty programs will be on Pep Boy's website soon.

Baja Inc., of Phoenix, which supplied the noncompliant vehicles to Pep Boys, will pay a $25,000 penalty.

The complaint, filed in federal court in Washington, alleged that Pep Boys and Baja imported and sold at least 241,000 illegal vehicles and engines from 2004 through 2009.

Pep Boys has agreed to export or destroy more than 1,300 noncompliant vehicles and engines, and "mitigate" 620 tons of excess hydrocarbon and nitrogen oxide emissions, and more than 6,520 tons of excess carbon monoxide emissions, the government said.

The complaint alleged that at least 45 vehicle and generator models made by 35 Chinese manufacturers were not certified to meet U.S. emission standards. Pep Boys failed to provide consumers with the full required emission-system warranty, and proper emission control information labels, the government said.

EPA and U.S. Customs & Border Protection discovered the violations in inspections at Pep Boy stores, at U.S. ports, and in a review of importation documents provided by the company to the EPA.

Pep Boys and Baja will offer a free extended emissions warranty on certain vehicle and engine models, reimburse consumers for emission-related repairs, and implement "rigorous" corporate compliance plans, the government said.