3) Kit cars do need to meet the emissions laws based on the date of
manufacture of the engine in most states. Rarely enforced. Interesting
note- if you are not an OEM or aftermarket supplier, the US EPA does not
actually have authority, the state does. So kits, personal modifications,
whatever, are between you and your state.
I don't feel sorry for these guys at all. They cheated, got caught, and
now have to pay the price. I can tell you, what they will pay is a drop in
the bucket to what us and GM have paid. Clean air is a priority in this
country, thankfully.
The kit car laws, even if they aren't enforced, are BS that makes our
air (marginally) dirtier. If clean air were really a priority in
this country, rednecks wouldn't be encouraged to use pushrod V8's
with single carburetors and no emissions controls rather than modern
pushrod V8's with EFI, etc. The same is true for the Alfa community.
If you're building a TZ replica, you might be tempted by the power
and low emissions of a Motronic TwinSpark, but if that means being
held to 1989 USA emissions standards that the Euro-spec TwinSpark
didn't meet, and having to fit a catalyst into your custom exhaust
system, you're going to go with a (relatively) filthy Spica 2.0L from
1972.