[Federal Register Volume 59, Number 189 (Friday, September 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22132]


[[Page Unknown]]

[Federal Register: September 30, 1994]


_______________________________________________________________________

Part II





Environmental Protection Agency





_______________________________________________________________________



40 CFR Parts 9, 86, and 88




Emission Standards for Clean-Fuel Vehicles and Engines, Requirements 
for Clean-Fuel Vehicle Conversions, and California Pilot Test Program; 
Final Rule
ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 9, 86 and 88

[AMS-FRL-5002-7]

 
Emission Standards for Clean-Fuel Vehicles and Engines, 
Requirements for Clean-Fuel Vehicle Conversions, and California Pilot 
Test Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The 1990 Clean Air Act Amendments require the establishment of 
two clean-fuel vehicle programs: a Clean Fuel Fleet Program and a 
California Pilot Test Program. Under the Clean Fuel Fleet Program, a 
percentage of new vehicles acquired by certain fleet owners located in 
covered areas will be required to meet clean-fuel fleet vehicle 
emission standards. Fleet owners can comply with this requirement by 
purchasing new clean-fuel fleet vehicles, by converting conventional 
vehicles to clean-fuel fleet vehicles, or by acquiring ``credits'' 
pursuant to a credits program. Affected states are required to revise 
their State Implementation Plans to implement the fleet program, 
including provisions to implement a credit program and exempt clean-
fuel fleet vehicles from certain transportation control measures. 
Regulations have already been promulgated for the credit program and 
transportation control measures exemptions. Also, definitions of terms 
used with the Clean Fuel Fleet program have recently been finalized. 
The other Clean Air Act clean-fuel vehicle program is the California 
Pilot Test program. This program requires manufacturers to sell light-
duty clean-fuel vehicles in the state of California. EPA has 
established a credit program for the California Pilot Test Program in a 
separate rulemaking.
    This action promulgates the statutory requirements that have not 
been implemented to date. These include the emission standards for 
light-duty and heavy-duty clean-fuel vehicles, regulations for the 
conversion of conventional vehicles to clean-fuel fleet vehicles, 
manufacturer California clean-fuel vehicles sales requirements under 
the California Pilot Test Program, and a state opt-in program for the 
California Pilot Test Program. The part of the conversion provisions 
addressing the sales volume limit beyond which special small-volume 
manufacturer provisions will not apply, will not become effective 
sooner than 60 days after publication and then only if no adverse 
comment is received within 30 days of publication. If adverse comment 
is received within 30 days of publication, EPA will withdraw this part 
of the rule pending a full notice and comment process on this topic.

DATES: This regulation is effective October 31, 1994, except that 40 
CFR 88.306-94(b)(3) will become effective on November 29, 1994, unless 
notice is received on or before October 31, 1994, that adverse or 
critical comments will be submitted. EPA will publish a timely document 
in the Federal Register if the effective date is delayed for this 
reason. The effective date may also be delayed if the information 
collection requirements contained in this section have not been 
approved by the Office of Management and Budget. In that case, EPA will 
publish a timely document in the Federal Register delaying the 
effective date. The incorporation by reference of certain publications 
listed in the regulations is approved by the Director of the Federal 
Register as of October 31, 1994, except as specified elsewhere in this 
DATES section. Sections 40 CFR 88.104-94 (b) and (d), 88.201-94 through 
88.206-94, and 88.306-94(b) (1), (2), and (4) are not effective until 
the Office of Management and Budget approves the information collection 
requirements contained in them. EPA will publish a document in the 
Federal Register once the information collection requirements are 
approved.

ADDRESSES: Comments on 40 CFR 88.306-94(b)(3) may be submitted to 
Docket No. A-92-30 at the following address. Materials relevant to this 
proposal have been placed in Docket Nos. A-92-30 (Clean Fuel Fleet 
Program) and A-92-69 (California Pilot Test Program) by EPA. The docket 
is located at: Air and Radiation Docket and Information Center, Room M-
1500, Waterside Mall, U.S. Environmental Protection Agency, 401 M 
Street SW., Washington, DC 20460. These dockets may be inspected 
between 8:30 a.m. and noon, and between 1:30 and 3:30 p.m. on weekdays. 
EPA may charge a reasonable fee for copying docket materials. In 
addition, copies of the Summary and Analysis of Comments document, 
which develops certain issues relevant to this final rulemaking, may be 
obtained by request from the contact person below. This document 
contains the Agency's response to the public comments received in 
regard to the two Notices of Proposed Rulemaking (NPRM).
    Electronic copies of the preamble, regulations, Regulatory Impact 
Analysis, Regulatory Support Document for heavy-duty clean-fuel 
vehicles, and the Summary and Analysis of Comments for this rulemaking 
are available on the Office of Air Quality Planning and Standards 
(OAQPS) Technology Transfer Network Bulletin Board System (TTNBBS). 
Instructions for accessing TTNBBS and downloading the above rulemaking 
files are described under SUPPLEMENTARY INFORMATION in section I.A.

FOR FURTHER INFORMATION CONTACT: Mr. Bryan Manning, U.S. EPA (SRPB-12), 
Regulatory Development and Support Division, 2565 Plymouth Rd, Ann 
Arbor, MI 48105. Telephone (313) 741-7832.

SUPPLEMENTARY INFORMATION:

I. Introduction

A. Accessing Electronic Copies of Rulemaking Documents through the 
Technology Transfer Network Bulletin Board System (TTNBBS)

    TTNBBS can be accessed using a dial-in telephone line (919-541-
5742) and a 1200, 2400, 9600, or 14,400 bps modem. The parity of the 
modem should be set to N or none, the data bits to 8, and the stop bits 
to 1. When first signing on to the bulletin board, the user will be 
required to answer some basic informational questions to register into 
the system. After registering, proceed through the following options 
from a series of menus:

OMS;
Rulemaking and Reporting;
Alternative Fuels/Fleets;
Clean Fuel Fleets or California Pilot Program.

    A list of ``.ZIP'' files will be displayed, all of which relate to 
the Clean Fuel Fleet or California Pilot Program rulemakings. The above 
five documents for the Emission Standards for Clean-Fuel Vehicles and 
Engines, Requirements for Clean-Fuel Vehicle Conversions, and 
California Pilot Test Program rulemaking will be listed in the form of 
``.ZIP'' files and are identified by the following titles:

``CFF-PRE.ZIP'' (Preamble)
``CFF-REG.ZIP'' (Regulations)
``CFF-COM.ZIP'' (Summary and Analysis of Comments)
``CFF-RIA.ZIP'' (Regulatory Impact Analysis)
``CFF-RSD.ZIP'' (Regulatory Support Document for heavy-duty CFVs)

    To download these files, type the instructions below and transfer 
according to the appropriate software on your computer: ownload, 
rotocol, xamine, ew, ist, elp or  to exit: D 
filename.ZIP
    The user needs to choose a file transfer protocol appropriate for 
the user's computer from the options listed on the terminal. The user's 
computer is then ready to receive the file by invoking the user's 
resident file transfer software. Programs and instructions for de-
archiving compressed files can be found under ystems Utilities from 
the top menu, under rchivers/de-archivers.
    TTNBBS is available 24 hours a day, 7 days a week except Monday 
morning from 8-12 EST, when the system is down for maintenance and 
backup. For help in accessing the system, call the systems operator at 
919-541-5384 in Research Triangle Park, North Carolina, during normal 
business hours EST.

B. Background

    The Clean Air Act (CAA) Amendments of 1990 (Public Law 101-549) 
added part C to Title II of the CAA entitled, ``Clean Fuel Vehicles''. 
Under part C, states are to establish clean fuel fleet programs 
(collectively called the Clean Fuel Fleet (or CFF) program) in certain 
nonattainment areas and EPA is to establish a clean-fuel vehicle (CFV) 
pilot program in the State of California (the California Pilot Test 
program or Pilot program).
    The purpose of the Clean Fuel Fleet Program is to introduce light- 
and heavy-duty CFVs in specified ``covered areas'' with air quality 
problems. CAA section 246(a)(2) defines a ``covered area'' for purposes 
of the fleet program as an area having a 1980 population of 250,000 or 
more that is also (1) a serious, severe, or extreme ozone nonattainment 
area (based on 1987-1989 data), or (2) a carbon monoxide (CO) 
nonattainment area with a CO design value at or above 16.0 parts per 
million (based on 1988-1989 data). Currently, there are 22 such areas 
in 19 states (Table 1).

  Table 1.--States and Areas Affected by the Clean-Fuel Fleet Program   
------------------------------------------------------------------------
                   Affected area                          State(s)      
------------------------------------------------------------------------
1. Atlanta........................................  Georgia.            
2. Baltimore......................................  Maryland.           
3. Baton Rouge....................................  Louisiana.          
4. Beaumont-Port Arthur...........................  Texas.              
5. Boston-Lawrence-Worcester (Eastern               Massachusetts, New  
 Massachusetts).                                     Hampshire.         
6. Chicago-Gary-Lake County.......................  Illinois, Indiana.  
7. Denver-Boulder.................................  Colorado.           
8. El Paso........................................  Texas.              
9. Greater Connecticut............................  Connecticut.        
10. Houston-Galveston-Brazoria....................  Texas.              
11. Los Angeles-South Coast Air Basin.............  California.         
12. Milwaukee-Racine..............................  Wisconsin.          
13. New York-Northern New Jersey-Long Island......  Connecticut, New    
                                                     Jersey, New York.  
14. Philadelphia-Wilmington-Trenton...............  Delaware, Maryland, 
                                                     New Jersey,        
                                                     Pennsylvania.      
15. Providence (All Rhode Island).................  Rhode Island.       
16. Sacramento Metro..............................  California.         
17. San Diego.....................................  California.         
18. San Joaquin Valley............................  California.         
19. Southeast Desert Modified AQMA................  California.         
20. Springfield (Western Massachusetts)...........  Massachusetts.      
21. Ventura County................................  California.         
22. Washington (District of Columbia).............  Maryland, Virginia, 
                                                     District of        
                                                     Columbia.          
------------------------------------------------------------------------

    These states are required to revise their State Implementation 
Plans (SIPs) to ensure that ``covered fleet'' owners will include, 
through purchase or lease, a minimum percentage of CFVs among the new 
vehicles they purchase for their fleets. (A ``covered fleet'' is 
defined in CAA section 241 as a fleet of ten or more motor vehicles 
which are owned or operated, leased, or otherwise controlled by a 
single person.) Both private business and government (federal, state, 
and local) fleets are subject to the statute. However, certain fleets 
and vehicles are exempt from the regulations, including fleets with 
vehicles that cannot be fueled at a central location, vehicles that are 
normally garaged at a personal residence, or vehicles that belong to 
vehicle classes without applicable CFV standards. (See the Definitions 
Rule: 58 FR 64679, December 9, 1993). In their SIP revisions, states 
must include provisions to require that CFVs used in the clean fuel 
fleet program operate on fuels on which they comply with the CFV 
standards.
    Covered fleet operaters can also meet the requirements by 
converting conventional vehicles to CFVs, or by obtaining credits. CAA 
section 246(a)(3) requires that all states containing all or part of an 
ozone and/or CO nonattainment area described above that is reclassified 
in the future as a serious, severe, or extreme ozone nonattainment 
area, or has a CO design value at or above 16.0 parts per million, must 
prepare revised SIPs implementing the CFF program within one year of 
reclassification.
    Three vehicle classes are included in the CFF program: light-duty 
vehicles (LDVs) and light-duty trucks (LDTs) up to 8,500 lbs GVWR,\1\ 
and heavy-duty vehicles (HDVs) between 8,500 lbs and 26,000 lbs 
GVWR.\2\ To qualify as a CFV, a vehicle must meet one of three sets of 
increasingly stringent standards. These are referred to as low-emission 
vehicle (LEV) standards, ultra low-emission vehicle (ULEV) standards, 
and zero-emission vehicle (ZEV) standards.
---------------------------------------------------------------------------

    \1\Gross Vehicle Weight Rating.
    \2\HDVs over 26,000 lbs GVWR are not included in the mandatory 
program.
---------------------------------------------------------------------------

    CAA section 242(a) requires EPA to promulgate CFV emission 
standards for purposes of compliance with the CFF program and the Pilot 
program (LEV standards). In addition, section 246(f)(4) requires EPA to 
promulgate emission standards for purposes of the CFF program credit 
program (ULEV and ZEV standards). Under section 249(d)(3), the CFF 
credit program standards will also apply to the Pilot credit program. 
Therefore, vehicles that meet ULEV or ZEV standards are eligible for 
vehicle purchase credits under the CFF program and for manufacturers' 
credits under the Pilot program.
    The CAA Amendments of 1990 require EPA to promulgate a Pilot 
program for the sale of CFVs in the State of California. Whereas the 
CFF program will be run by individual states, the Pilot program is a 
federal program that will be administered in California. Manufacturers 
with motor vehicle sales in California are required to sell a minimum 
number of light-duty CFVs (CFVs up to 8,500 lbs. GVWR) in California on 
an annual basis. Manufacturers may meet their share of required sales 
by selling the required number of CFVs or by using earned credits or 
credits they have acquired from other manufacturers. (EPA established 
the credits program in a previous rulemaking (57 FR 60038; December 17, 
1992)). To earn credits, a manufacturer may sell more CFVs than 
required or sell CFVs which meet stricter exhaust emission standards. 
Except for heavy LDTs, for model years 1996 through 2001, the 
compliance standards for the Pilot program are known as the TLEV 
standards and credits are available for LEV, ULEV and ZEV purchases. 
Beginning in 2001, the compliance vehicle shifts to the LEV standards, 
and credits are only available for ULEV and ZEV purchases. This 
provision commences in the 1998 model year for heavy LDTs.
    The CAA also directs EPA to establish a voluntary opt in program 
for states that want to adopt the Pilot program. States which contain 
all or part of any ozone nonattainment areas classified under subpart D 
of Title II as serious, severe, or extreme are eligible to participate. 
To do so, states are to revise their state implementation plans (SIPs) 
to include incentives for the sale and use of CFVs as well as the 
production and distribution of clean alternative fuels. States may not 
establish CFV sales or production mandates, however.
    The remainder of today's action covers light- and heavy-duty CFV 
exhaust emission standards, requirements for vehicle conversions to 
CFVs, and the Pilot program, as well as regulatory impacts of the CFF 
and Pilot programs. In addition, EPA has included several technical 
amendments and clarifications related to the Definitions rule (58 FR 
64679) and the rulemaking for the CFF credits program and 
transportation control measure exemptions (58 FR 11888; March 1, 1993).

II. Description of Action

A. Clean-Fuel Vehicle Emission Standards

    CAA section 242 requires EPA to promulgate regulations setting 
emission standards and other requirements for CFVs. For LDVs and LDTs, 
EPA is required to adopt the standards set forth in sections 242 and 
243 unless it finds that the standards of the California Air Resources 
Board LEV program are, in the aggregate, at least as protective of 
public health and welfare as the federal standards that would apply to 
CFVs. EPA cannot make such a finding at this time so today's 
regulations adopt the standards set forth in the CAA.
1. Light-Duty Vehicle and Light-Duty Truck Clean-Fuel Vehicle Standards
    a. Requirements of the CAA. Clean Air Act section 241(7) defines a 
CFV as a vehicle that meets the emission standards applicable under 
part C of Title II of the CAA. As discussed later in this preamble, 
CFVs will satisfy the requirements of both the Pilot program and the 
CFF program. The CFV emission standards for LDVs and LDTs are set forth 
in sections 242 and 243. (Standards for heavy-duty CFVs under section 
245 of the Act are discussed in II.A.2 below.) Any LDV, LDT, or HDV 
that can operate on only one fuel and that meets these standards will 
be classified as a CFV regardless of the fuel that is used to meet the 
CFV standards. However, a CFV in the CFF program must operate on clean 
alternative fuels, as defined in section 241(2) of the Act, when 
operating in the covered area.
    Subsections 243(a) through (d) specify LDV and LDT exhaust emission 
standards (50K and 100K miles)\3\ for the following pollutants: non-
methane organic gas (NMOG), carbon monoxide (CO), oxides of nitrogen 
(NOX), diesel particulate matter (PM) (only for the 100,000 mile 
point), and formaldehyde (HCHO). These standards are prescribed in two 
phases for LDVs and light LDTs (up to 5,750 pounds loaded vehicle 
weight (LVW) and 6,000 pounds GVWR). Phase I applies only to the Pilot 
program and takes effect with the 1996 model year (MY), the first year 
of required sales under the Pilot program. These statutory Phase I 
standards are numerically identical to those which define the 
California Transitional Low Emission Vehicle (TLEV).\4\ The Phase I 
standards apply to the Pilot program in MYs 1996 through 2001. Phase II 
standards are identical to those which define the California Low 
Emission Vehicle (LEV).\5\ The Phase II standards apply to the CFF 
program in MY 1998 and to the Pilot program beginning in MY 2001. Only 
one set of exhaust emission standards applies to heavy LDTs (above 
6,000 lbs. GVWR). These standards take effect in MY 1998 and apply to 
both the CFF and the Pilot program. Table 2 contains the TLEV and LEV 
standards for LDV and LDT CFVs.
---------------------------------------------------------------------------

    \3\The intermediate useful life for LDV and LDTs is 50,000 (50K) 
miles. The full useful life for such vehicles is 100,000 (100K) 
miles.
    \4\The California TLEV standards are effective in model years 
1994 through 1996.
    \5\The California LEV standards are effective in model years 
1997 through 2003.
---------------------------------------------------------------------------

    CAA part C section 241 specifies that definitions contained in part 
A, section 216, shall apply to the CFV programs. The heavy LDT 
subcategories (i.e., above 6,000 lbs. GVWR) shown in Table 2 are based 
on test weight. CAA section 216(8) defines ``test weight'', or ``TW'', 
as the sum of the curb weight and the GVWR divided by two:

TW = (Curb weight + GVWR)/2 = ALVW

This definition was established in 40 CFR 86.129-94 by the federal Tier 
1 rulemaking (56 FR 25724; June 5, 1991) and is referred to as 
``adjusted loaded vehicle weight'', or ``ALVW''. The Agency chose to 
use ALVW, as opposed to TW, to minimize confusion with the term 
``equivalent test weight'', which is used interchangeably with ``test 
weight'' throughout current EPA motor vehicle regulations and test 
procedures. Therefore, ``test weight'' defined in CAA section 216(8) is 
referred to as ALVW in this Final Rule, which is consistent with its 
definition established in the Tier 1 regulations.

    Table 2.-- Phase I and II LDV and LDT Clean Fuel Vehicle Emission   
                               Standards                                
------------------------------------------------------------------------
                                       Pollutant (grams/mile)           
Standards (Effective Dates) --------------------------------------------
                              NMOG      CO       NOX     HCHO     PM\1\ 
------------------------------------------------------------------------
All LDVs; LDTs 3750 lbs LVW; 6000 lbs GVWR:                                                      
                                                                        
                            Phase I (1996 MY):                          
                                                                        
    50,000 miles...........    0.125      3.4      0.4    0.015      ...
    100,000 miles..........    0.156      4.2      0.6    0.018     0.08
                                                                        
         Phase II (1998 MY for CFFP; 2001 MY for Pilot program):        
                                                                        
    50,000 miles...........    0.075      3.4      0.2    0.015      ...
    100,000 miles..........    0.090      4.2      0.3    0.018     0.08
LDTs >3750 and K5750 lbs LVW; 6000 lbs GVWR:                                                      
                                                                        
                            Phase I (1996 MY):                          
                                                                        
    50,000 miles...........    0.160      4.4      0.7    0.018      ...
    100,000 miles..........    0.200      5.5      0.9    0.023     0.08
                                                                        
         Phase II (1998 MY for CFFP; 2001 MY for Pilot program):        
                                                                        
    50,000 miles...........    0.100      4.4      0.4    0.018      ...
    100,000 miles..........    0.130      5.5      0.5    0.023     0.08
                                                                        
LDTs >6000 lbs GVWR (1998                                               
 MY):                                                                   
  3750 lbs ALVW:                                             
    50,000 miles...........    0.125      3.4   \2\0.4    0.015      ...
    120,000 miles..........    0.180      5.0      0.6    0.022     0.08
  3750< LDTs 65750 lbs ALVW:                                                   
    50,000 miles...........    0.160      4.4   \2\0.7    0.018      ...
    120,000 miles..........    0.230      6.4      1.0    0.027     0.10
  5750< LDTs 8500 lbs ALVW:\3\                                                 
    50,000 miles...........    0.195      5.0   \2\1.1    0.022      ...
    120,000 miles..........    0.280      7.3      1.5    0.032    0.12 
------------------------------------------------------------------------
\1\Applicable to diesel-fueled vehicles only.                           
\2\Standards not applicable to diesel-fueled vehicles.                  
\3\Option of certifying HDEs in vehicles up to 10,000 lbs GVWR using the
  LDT standards.                                                        

    CAA section 242(c) lists the useful life and in-use testing 
limitations for purposes of determining in-use compliance with the 
standards in section 243. The useful life for CFVs is the same as 
adopted in EPA's regulations for 1994 and later model year LDVs and 
LDTs, commonly called Tier 1 standards (56 FR 25724, June 5, 1991). For 
LDVs and LDTs, the standards in section 243 are established at the 
intermediate useful life of five years or 50,000 miles (5/50,000), 
whichever occurs first, and a full useful life of 10 years or 100,000 
miles (10/100,000), whichever occurs first (see Table 2). With respect 
to in-use testing, however, section 242(c) provides that such testing 
for these vehicle classes would not be done beyond seven years or 
75,000 miles, whichever occurs first. The analogous intermediate and 
full useful life levels for heavy LDTs are 5/50,000 and 11/120,000, 
respectively (see Table 2). Similarly, section 242(c) provides that the 
in-use testing for these vehicles would not be done beyond seven years 
or 90,000 miles, whichever occurs first.
    While the standards described above apply to single fuel CFVs, 
subsection 243(d) also establishes different CFV NMOG standards for 
dual and flexible fuel LDVs and LDTs.\6\ These vehicles are to be 
certified to two sets of NMOG standards (Table 3). One set contains the 
same NMOG levels that apply to single fuel CFVs; dual and flexible fuel 
vehicles must meet this standard when operating on the clean 
alternative fuel on which they are certified (section 243(d)(2)). The 
second set of NMOG standards applies to flexible and dual fuel vehicles 
when operated on conventional fuel for which they are certified 
(section 243(d)(3)).\7\ This second set of standards is, in effect, 
equivalent to the next less stringent set of standards for the 
applicable vehicle category and model year. For example, the Phase I 
NMOG standard for flexible or dual fuel CFVs using conventional fuel is 
equivalent to the Tier I non-methane hydrocarbon (NMHC) emissions 
standard.\8\ The Phase II NMOG standard for flexible or dual fuel CFVs 
using conventional fuel is equivalent to the Phase I standard for 
single fuel CFVs. The NMOG standards for flexible and dual fuel 
vehicles are listed in Table 3. Flexible or dual fuel vehicles must 
comply with all other CFV exhaust standards shown in Table 2 and with 
all other applicable requirements of Title II.
---------------------------------------------------------------------------

    \6\Dual fuel vehicle is defined as any motor vehicle or motor 
vehicle engine engineered and designed to be operated on two 
different fuels, but not on a mixture of the fuels. The term ``bi-
fuel'' is often used for this type of design. Flexible fuel vehicle 
is defined as any motor vehicle or motor vehicle engine engineered 
and designed to be operated on any mixture of two or more different 
fuels. The term ``variable-fuel'' is often used for this type of 
design. These definitions are contained in section Sec. 88.102-94 of 
the regulatory text.
    \7\CAA section 241 requires that dual and flexible fuel vehicles 
are to operate on the fuels on which they are certified. As 
discussed in the CFF credit program and TCM exemptions rulemaking 
(58 FR 11888, March 1, 1993), dual and flexible fuel vehicles shall 
operate only on the clean alternative fuel on which they are 
certified to the CFV standards when operating in a covered area, as 
provided in section 246(a)(2).
    \8\NMOG and NMHC emissions are essentially equivalent when the 
fuel combusted is conventional gasoline.

    Table 3.--NMOG Standards for Flexible- and Dual-Fueled Vehicles     
------------------------------------------------------------------------
                                                   Standard\1\ (g/mi)   
               Vehicle subclass                -------------------------
                                                 50,000mi     100,000mi 
------------------------------------------------------------------------
LDVs, LDTs (6000 lbs GVWR):                                  
                                                                        
                   Beginning MY 1996 for Pilot program:                 
                                                                        
    LDTs (0-3,750 lbs. LVW), LDTs.............   0.125/0.25   0.156/0.31
    LDTs (3,751-5,750 lbs. LVW)...............   0.160/0.32   0.200/0.40
                                                                        
          Beginning MY 1998 for CFFP; MY 2001 for Pilot program:        
                                                                        
    LDTs (0-3,750 lbs. LVW), LDVs.............  0.075/0.125  0.090/0.156
    LDTs (3,751-5,750 lbs. LVW)...............  0.100/0.160  0.130/0.200
LDTs (>6,000 lbs GVWR):                                                 
                                                                        
                            Beginning MY 1998:                          
                                                                        
    LDTs (0-3,750 lbs. ALVW)..................   0.125/0.25   0.180/0.36
    LDTs (3,751-5,750 lbs. ALVW)..............   0.160/0.32   0.230/0.46
    LDTs (>5,750 lbs. ALVW)...................   0.195/0.39  0.280/0.56 
------------------------------------------------------------------------
\1\The standards are presented for flexible- and dual-fueled CFVs when  
  operating on clean alternative fuel and conventional fuel in the      
  format ``x/y'' where x represents the NMOG standard when the vehicle  
  is operated on a clean alternative fuel and y represents the NMOG     
  standard when the vehicle is operated on a conventional fuel.         

    CAA section 246(f)(4) directs EPA to establish additional CFV 
standards for ULEVs and ZEVs (discussed earlier). These standards, 
shown in Table 4, should be more stringent than the CFV standards in 
section 243. Vehicles meeting these more stringent standards are 
eligible to earn credits which may be used toward compliance under the 
CFF program or the Pilot program, as specified in sections 246(f) and 
249(d)(3), respectively. The Act requires EPA to set these more 
stringent standards for LDVs and LDTs so that they conform ``as closely 
as possible'' to the ULEV and ZEV standards established by California 
for vehicles in the same class. The California ULEV and ZEV standards 
are described below in section A.1.b. in this preamble.

                        Table 4.--LDV and LDT Clean Fuel Vehicle ULEV Emission Standards                        
----------------------------------------------------------------------------------------------------------------
                                                                         Pollutant (grams/mile)                 
                   Vehicle category                     --------------------------------------------------------
                                                             NMOG        CO      NOX        HCHO        PM\1\   
----------------------------------------------------------------------------------------------------------------
LDVs & LDTs 3750 lbs LVW; 6000                                                            
 lbs GVWR                                                                                                       
    50,000 miles.......................................        0.040      1.7      0.2        0.008         0.08
    100,000 miles......................................        0.055      2.1      0.3         .011         0.04
LDTs >3750 and 5750 lbs LVW; 6000                                                         
 lbs GVWR:                                                                                                      
    50,000 miles.......................................        0.050      2.2      0.4        0.009         0.08
    100,000 miles......................................        0.070      2.8      0.5        0.013         0.04
LDTs >6000 lbs GVWR (1998 MY):                                                                                  
  3750 lbs ALVW:                                                                                     
    50,000 miles.......................................        0.075      1.7      0.2        0.008             
    120,000 miles......................................        0.107      2.5   \2\0.3        0.012         0.04
3750< LDTs 5750 lbs ALVW:                                                                            
    50,000 miles.......................................        0.100      2.2      0.4        0.009             
    120,000 miles......................................        0.143      3.2   \2\0.5        0.013         0.05
5750< LDTs 8500 lbs ALVW:\3\                                                                         
    50,000 miles.......................................        0.117      2.5      0.6        0.011             
    120,000 miles......................................        0.167      3.7   \2\0.8        0.016        0.06 
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Does not apply to diesel vehicles.                                                                           
\3\Option of certifying HDEs in vehicles up to 10,000 lbs GVWR using the LDT standards.                         

    CAA section 242(b) states that CFVs up to 8,500 lbs. GVWR ``shall 
comply with all motor vehicle requirements of this title (i.e., on-
board diagnostics, evaporative emissions, etc.) which are applicable to 
conventional gasoline-fueled vehicles of the same category and model 
year, except as provided in section 244 with respect to administration 
and enforcement, and except to the extent that any such requirement is 
in conflict with the provisions of'' part C. These include, but are not 
limited to, standards for cold temperature CO exhaust emissions (cold 
CO), on-board diagnostics (OBD), evaporative emission controls (evap), 
and onboard refueling vapor recovery (ORVR). Previous requirements such 
as crankcase controls and vehicle labeling also apply.
    CAA section 243(e) directs EPA to apply the standards of the 
California Air Resources Board (CARB) LEV program in lieu of the 
standards otherwise applicable to CFVs under sections 242 and 243 if 
the CARB standards are, in the aggregate, at least as protective of 
public health and welfare as the federal standards that apply to CFVs. 
Section 243(e)(1) addresses the replacement of CAA standards if CARB 
promulgates a single set of standards while section 243(e)(2) addresses 
the replacement if CARB promulgates multiple sets of standards. CARB's 
LEV program contains multiple sets of standards to which vehicles can 
certify (i.e., LEV, ULEV, and ZEV); therefore, section 243(e)(2) is the 
appropriate language for consideration and is provided below:

    Section 243(e)(2): If the State of California promulgates 
regulations establishing and implementing several different sets of 
standards applicable in California pursuant to a waiver approved 
under section 209 to any category of vehicles referred to in 
subsection (a), (b), (c), or (d) of this section and each of such 
sets of California standards is, in the aggregate, at least as 
protective of public health and welfare as the otherwise applicable 
standards set forth in section 242 and subsection (a), (b), (c), or 
(d) of this section, such standards shall be treated as `qualifying 
California standards' for purposes of this paragraph. Where more 
than one set of qualifying standards are established and 
administered by the State of California, the least stringent set of 
qualifying California standards shall apply to the clean-fuel 
vehicles concerned in lieu of the standards otherwise applicable to 
such vehicles under section 242 and this section.

    EPA believes that the required comparison between the federal and 
CARB standards is not limited to the CFV exhaust emission standards of 
sections 242 and 243 but must also include the other Title II standards 
referred to in CAA section 242 (i.e., OBD, evap, etc.) and any 
California counterparts. Thus, EPA is required to compare the standards 
in CAA sections 242(b) and 243 with the CARB standards to determine 
whether the CARB standards should replace the federal standards.
    As is discussed below in Section II.c., EPA cannot at this time 
make the determination that each set of CARB standards is, in the 
aggregate, at least as protective as the federal standards that apply 
to CFVs. Therefore, this final rule promulgates the emission standards 
and requirements for CFVs found in sections 242 and 243 of the CAA. 
EPA's reasoning to support this conclusion is included in Section II.c.
    Finally, CAA section 244 provides requirements regarding the 
administration and enforcement of CFV exhaust emission standards. In 
the event that numerical emission standards for CFVs up to 8,500 lbs. 
GVWR are the same under the federal and California LEV program, EPA is 
to administer and enforce those standards in the same manner and with 
the same flexibility as CARB does under the California LEV program. 
This requires utilizing the same interpretations and policy judgments 
including, but not limited to, requirements regarding certification, 
production-line testing, and in-use compliance. The application of 
California's administration and enforcement practices does not depend 
on whether EPA replaces federal requirements with California 
requirements under section 243(e). If the Administrator determines that 
adopting California's administration and enforcement approaches would 
not meet the criteria for a waiver under section 209, then federal 
administration and enforcement procedures and interpretations would 
apply.
    b. CARB's Low-Emission Vehicle Standards. Pursuant to CAA section 
209, the State of California applied to EPA for a waiver on October 4, 
1991 for its ``Low-Emission Vehicle and Clean Fuels Regulations''. EPA 
granted the waiver on January 7, 1993 (58 FR 4166, January 13, 1993). 
(Although states are generally preempted by CAA section 209 from 
adopting their own motor vehicle standards, California may adopt its 
own standards provided that EPA waivers the preemption provision of 
section 209.)
    California's regulations establish four new levels of vehicle 
emission standards, termed ``vehicle emission categories'', for LDVs, 
LDTs, and medium-duty trucks (MDTs).\9\ These new standards are 
effective with 1994 model year vehicles.\10\ The California emission 
categories are, in order of increasing stringency: TLEV (Transitional 
Low Emission Vehicle); LEV (Low Emission Vehicle); ULEV (Ultra Low 
Emission Vehicle); and ZEV (Zero Emission Vehicle). The TLEV exhaust 
emission standards for NMOG, CO, NOX, PM, and HCHO are identical 
to the federal Phase I CFV standards described above. The LEV exhaust 
emission standards are identical to the federal Phase II CFV standards. 
The California ULEV and ZEV standards are the same as the federal ULEV 
and ZEV categories, established for purposes of the CFF and Pilot 
program credit programs. CARB defines a ZEV as:

    \9\The medium-duty truck class is a vehicle class unique to CARB 
and includes trucks between 6,000 and 14,000 lbs GVWR.
    \10\See CARB's Proposed Regulations for Low-Emission Vehicles 
and Clean Fuels, Staff Report, available in EPA Air Docket A-91-23.
---------------------------------------------------------------------------

    * * * any vehicle which is certified * * * to produce zero 
emissions of any criteria pollutants under any and all possible 
operational modes and conditions. A ZEV may be equipped with a fuel 
fired heater provided that the fuel fired heater cannot be operated 
at ambient temperatures above 40 degrees Fahrenheit and the heater 
is demonstrated to have zero evaporative emissions under any and all 
possible operational modes and conditions.\11\
---------------------------------------------------------------------------

    \11\California Code of Regualtions, Title 13, Definitions 
Section, Paragraph 15.
---------------------------------------------------------------------------

    CARB is allowing the use of intermediate in-use compliance 
standards that are intended to facilitate compliance by vehicle 
manufacturers. These in-use standards are numerically half way between 
the certification standards of the new emission category and the old 
emission category (e.g., half way between TLEV and LEV standards). 
These intermediate standards will be effective through MY 1995 for 
TLEVs and through MY 1998 for LEVs and ULEVs.
    c. Comparison of CAA and CARB Requirements. As discussed above, CAA 
section 243(e) provides that CARB's standards shall replace the federal 
CFV and other motor vehicle standards if the CARB standards are, in the 
aggregate, at least as protective of public health and welfare as the 
CAA standards. While EPA believes that Congress preferred that the 
statutory standards be replaced with the CARB standards, EPA cannot at 
this time make the determination that CARB standards are, in the 
aggregate, at least as protective as the federal standards. Therefore, 
as mentioned earlier, EPA is at this time establishing federal 
standards that will apply to CFVs in the CFF and Pilot program.
    As stated in the proposal, EPA believes that section 243(e)(2) 
requires a separate comparison of federal Phase I and Phase II 
standards to CARB standards. For the least stringent set of federal CFV 
standards (the Phase I standards), the appropriate comparison is to the 
least stringent set of California CFV standards (the TLEV standards). 
Similarly, the appropriate comparison for the federal Phase II 
standards is with the California LEV standards.
    The Phase I standards will apply to the Pilot program in the 1996 
MY. The phase II standards will apply to the CFF program in the 1998 
MY, and to the Pilot program in the 2001 MY. Therefore, the federal 
Phase I standards will not apply to any federal CFV program after MY 
2001. For this reason, EPA considers the California LEV standards to be 
the least stringent set of qualifying California standards after MY 
2001, and currently intends to apply the California LEV standard to the 
CFF and Pilot programs at that time if replacement of the federal Phase 
II standards is warranted under section 243(e)(2). EPA requested 
comment in the proposal on this interpretation of the CAA and no 
adverse comments were received.
    EPA must also compare CARB standards to the following federal 
requirements that apply to CFVs to assess whether ``each of such sets 
of California standards is, in the aggregate, at least as protective'' 
as the federal standards: cold CO emissions, evaporative emissions, 
onboard refueling vapor recovery, on-board diagnostics, total 
hydrocarbons, and non-methane hydrocarbon standards. These standards 
are compared individually below.
    i. Cold CO emissions. The currently waived California program does 
not have a cold CO standard which corresponds to the federal cold CO 
standard. It is not yet possible for EPA to consider CARB's cold CO 
standards in its comparison of the respective mobile source programs 
since California has not yet requested nor received a waiver.
    In vehicles using liquid fuel, the difficult process of vaporizing 
cold liquid fuel for combustion contributes significantly to cold start 
emissions. Gasoline vehicles are most susceptible to this phenomenon in 
cold conditions. On July 17, 1992, EPA promulgated a cold CO standard 
(57 FR 31888, 40 CFR 86.201) in order to control CO emissions from 
gasoline-powered vehicles when operating in cold temperatures.\12\ 
These regulations became effective for MY 1994. Although these 
regulations cover only gasoline-fueled vehicles, CAA section 242(b) 
extends the regulations to all CFVs regardless of fuel type by 
requiring that CFVs meet all federal requirements of Title II of the 
CAA that apply to gasoline vehicles of the same category and model 
year.
---------------------------------------------------------------------------

    \12\CAA Section 202(j) contains provisions for cold CO 
requirements.
---------------------------------------------------------------------------

    On January 14, 1993, CARB approved a cold CO standard which became 
effective in September 1993. CARB's regulations include gasoline-
fueled, LPG, and alcohol-fueled vehicles, but do not cover other fuels. 
EPA is not able at this time to consider the CARB cold CO regulations 
because CARB has not requested nor received a waiver of federal 
preemption for its cold CO requirements.
    ii. Evaporative emissions. The currently waived CARB evaporative 
emission standards and test procedures are not comparable to the 
recently promulgated federal evaporative emission standards and test 
procedures. Current federal regulations for evaporative emissions 
testing are effective through MY 1995, after which new federal 
regulations will be phased in. California has two sets of new 
evaporative emissions regulations: one set will be implemented only for 
10 percent of California's MY 1995 vehicles and the second set, which 
CARB is in the process of finalizing at this time, will be phased in 
beginning in MY 1996. Indications are that CARB will seek a waiver for 
their 1996 evaporative emission regulations once they are finalized. 
EPA cannot yet consider CARB's revised evaporative emission regulations 
applicable to the 1995 and later model years because CARB has not yet 
received a waiver for them.
    iii. Refueling emissions. Based on the currently waived California 
program, EPA cannot at this time conclude that CARB's refueling 
emission control regulations are as stringent as the federal onboard 
refueling vapor recovery (ORVR) standards. The currently waived 
California Program does not have a mobile source component which 
addresses refueling emissions. Federal Title II standards for ORVR will 
be required on certain vehicles beginning in MY 1998 (59 FR 16262; 
April 6, 1994).\13\ CARB, which currently requires the use of Stage II 
vapor recovery equipment at most service stations in California, has 
held two workshops to discuss the proper application of refueling 
control (November 2, 1993 and March 15, 1994). CARB considered three 
options: adopting the federal ORVR regulations,; adopting a California-
specific ORVR rule, test, or standard; or maintaining that California's 
current motor vehicle control program is, in the aggregate, at least as 
protective as the federal program notwithstanding the lack of ORVR 
controls. In a recent CARB mailout (94-27) dated May 27, 1994, ARB 
staff announced their proposal to allow the certification of ORVR-
equipped vehicles for sale in California. However, the ARB staff did 
not address the equipped vehicles for sale in California. However, the 
ARB staff did not address the specific issue of whether ARB will 
require ORVR controls for certification. California's final 
determination regarding ORVR control must ultimately be approved by the 
Air Resources Board.
---------------------------------------------------------------------------

    \13\The phase-in schedule requires that ORVR standards apply to 
40 percent of each manufacturer's LDV sales volume in MY 1998, 80 
percent in 1999, and 100 percent in MY 2000. The same phase-in 
schedule applies to LDTs up to 8,500 lbs. GVWR but will not begin 
until MY 2001 for LDTs up to 6,000 lbs. GVWR and in MY 2004 for LDTs 
between 6,001 and 8,500 lbs. GVWR. The requirements do not apply to 
vehicles above 8,500 lbs. GVWR.
---------------------------------------------------------------------------

    EPA is likely to consider California's lack of an ORVR aspect of 
its program in the next section 209 waiver proceeding for CARB 
regulations applicable to model years 1998 and later. EPA will likely 
decide in that context whether California's motor vehicle program 
absent ORVR is at least as protective of California as the federal 
program.
    iv. Volatile organic compound emissions. EPA and California use 
different approaches to regulate emissions of volatile organic 
compounds (VOCs) from vehicles. Therefore, EPA believes it is useful to 
compare California VOC emission standards to the analogous federal 
standards on a fuel-by-fuel basis, as presented below. For gasoline- 
and diesel-fueled vehicles, EPA concludes that the CARB VOC emission 
standards are individually at least as stringent as the federal 
standards. However, EPA cannot make this comparison for gaseous and 
alcohol fuels at this time because CARB has not yet finalized RAFs 
(reactivity adjustment factors) for these fuels.
    v. Fuel-by-fuel comparison. As stated above, EPA and CARB use 
different approaches to establish VOC emission standards. 
Traditionally, federal organic emissions controls have been based on 
total hydrocarbon (THC) emissions where mass of THC emissions is 
measured by a flame ionization detector (FID), implicitly assuming that 
all hydrocarbon emissions behave similarly with respect to ozone 
reactivity and FID response. This approach is not used for methanol-
fueled vehicles because emissions from these vehicles consist primarily 
of methanol and formaldehyde, and a FID will only detect about 70 to 80 
percent of the methanol and very little of the formaldehyde. For 
methanol-fueled vehicles, the methanol and formaldehyde emissions are 
sampled separately and measured chromatographically while other 
emissions are measured by a FID. The oxygen mass is factored out of the 
methanol and formaldehyde emissions resulting in ``equivalent 
hydrocarbon emissions'', which are then summed with the other FID-
measured hydrocarbons to yield organic material (or total) hydrocarbon 
equivalent (OMHCE or THCE) mass. A third approach involves separately 
measuring methane and subtracting it from the THC to result in a non-
methane hydrocarbon (NMHC) mass. For methanol-fueled vehicles, NMHC is 
equivalent to OMNMHCE (organic material non-methane hydrocarbon 
equivalent) or NMHCE (non-methane hydrocarbon equivalent).
    The CAA has established THC and NMHC exhaust emission standards for 
conventional light-duty gasoline and diesel vehicles (0.41 g/mile for 
THC and 0.25 g/mile for NMHC). EPA has also established OMHCE and 
OMNMHCE standards for methanol-fueled vehicles (0.41 and 0.25 g/mile, 
respectively), an NMHC standard for CNG-fueled vehicles (0.25 g/mile), 
and THC and NMHC standards for LPG-fueled vehicles identical to the 
gasoline THC and NMHC standards.\14\
---------------------------------------------------------------------------

    \14\EPA Gaseous Fuels Rule: ``Standards for Emissions from 
Natural Gas-Fueled, and Liquified Petroleum Gas-Fueled Motor 
Vehicles and Motor Vehicle Engines and Certification Procedures for 
Aftermarket Conversion Hardware.'' (Published in the Federal 
Register on September 21, 1994).
---------------------------------------------------------------------------

    CARB measures VOC emissions as non-methane organic gases (NMOG). 
Under this approach, the mass of each organic compound except methane 
is measured and adjusted according to its ozone-forming reactivity 
relative to gasoline emissions. The sum of these adjusted masses is the 
amount of NMOG emitted from the vehicle. An alternative CARB NMOG 
method involves measuring the total mass of organic emissions and 
multiplying this mass by a single RAF for the particular fuel used. A 
RAF is equivalent to the ratio of the ozone-forming potential of 
emissions from a given fuel and the ozone-forming potential of 
conventional gasoline emissions. CARB determines a RAF for each fuel. 
Therefore, the relative stringency of the CARB and EPA standards for 
organic emissions should be compared for each fuel individually.

Gasoline and Diesel Fuel

    For gasoline- and diesel-fueled vehicles, NMHC and NMOG standards 
are equivalent since CARB has established a RAF of 1.0 for these fuels. 
In addition, since the methane fraction of the THC emissions from these 
vehicles is very low,\15\ and since CARB's TLEV and LEV NMOG standards 
(.125 and .075 g/mile, respectively) are well below the federal THC 
standard (0.41 g/mile), vehicles designed to meet the CARB NMOG 
standard will not exceed the federal THC standard. Thus, for gasoline- 
and diesel-fueled vehicles, the CARB NMOG standards are at least as 
stringent as the federal THC and NMHC standards.
---------------------------------------------------------------------------

    \15\U.S. Environmental Protection Agency, Office of Mobile 
Sources, ``Specifications for S.A.I. Runs,'' Memorandum from Chris 
Lindhjem, Penny Carey, and Joe Somers to the Record, April 24, 1992.
---------------------------------------------------------------------------

CNG Fuel

    The equivalency of CARB's NMOG standard with the federal NMHC 
standards cannot be strictly determined at this point for natural gas 
vehicles since CARB has not finalized a RAF for natural gas. 
Indications are that CARB may enact a CNG RAF between 0.5 and 0.6. If 
CARB adopts a RAF of 0.5 or more, then EPA expects that the CARB TLEV 
NMOG standard of 0.125 grams/mile (representing the least stringent set 
of CARB standards) will be at least as stringent as the 0.25 grams/mile 
federal NMHC standard. A RAF of 0.3 or more would make the CARB LEV 
NMOG standard of 0.075 grams/mile equivalent to the federal NMHC 
standard.
    CNG vehicles being certified as CFVs for use in the CFF and Pilot 
program will not be subject to the federal THC standard, therefore, a 
comparison of the relative stringency between the federal THC and the 
CARB NMOG standard is not appropriate. In the Pilot program NPRM (58 FR 
34727, June 29, 1993), EPA requested comment on the appropriateness of 
applying a THC standard to natural gas CFVs even though a THC standard 
is not applied to other natural gas vehicles. EPA believes that 
requiring CNG vehicles to meet the federal THC standard would exclude 
CNG vehicles from participating in the CFF and Pilot programs. CNG 
vehicles do produce high methane emissions; however, these emissions 
have a very low ozone reactivity and are therefore not a significant 
contributor to ozone formation, which is a primary objective of both 
programs.\16\ In addition, CNG vehicles typically produce lower NMHC 
emissions than gasoline-fueled vehicles. Therefore, although a THC 
standard would strictly limit the amount of methane emissions a CNG 
vehicle could emit, this result would be contrary to the ozone-
reduction goals of the programs when methane reactivity and lower NMHC 
emissions of CNG vehicles relative to gasoline-fueled vehicles are 
considered. A further consideration in deciding whether to apply a THC 
standard to CNG CFVs was the Agency's desire to maintain consistency 
with its Gaseous Fuels rule whenever possible; that rule also does not 
apply THC standards to CNG vehicles. Commenters were not supportive of 
CNG vehicles, including CFVs, being subject to a THC standard.
---------------------------------------------------------------------------

    \16\See CAA sections 246, 247, and 248.
---------------------------------------------------------------------------

LPG Fuel

    CARB has not finalized a RAF for LPG fuel. Therefore, EPA cannot at 
this time strictly compare the CARB NMOG standard to the federal NMHC 
standard for LPG vehicles. However, as with CNG, if CARB adopts a RAF 
of at least 0.5, EPA expects that the CARB TLEV and LEV NMOG standard 
will be individually at least as stringent as the federal NMHC 
standard.

Alcohol Fuels

    CARB has finalized a RAF of 0.41 for M85 vehicles and EPA's 
analysis indicates that the CARB NMOG standard is individually as 
protective as the federal NMHC equivalent standard for M85 fuel. 
However, CARB has not established a RAF for E85 and M100 fuel. EPA thus 
cannot determine at this time whether the CARB NMOG standards are 
individually as protective of public health and welfare as the federal 
NMHC equivalent standards for all alcohol-fueled vehicles.
    Regarding THC, methane emissions from alcohol-fueled vehicles, as 
with gasoline- and diesel-fueled vehicles, are generally low enough 
that vehicles meeting the CARB NMOG standards would also comply with 
the federal THC standards. Therefore, EPA concludes that the CARB NMOG 
standards are individually at least as stringent as the federal THC 
standard.
    vi. Onboard diagnostics. The currently waived California onboard 
diagnostic I (OBD I) regulation is not comparable to the recently 
promulgated federal OBD regulation ( 58 FR 9468, February 19, 1993). 
The recently promulgated federal OBD regulation is comparable to the 
recently revised California OBD II regulation. In fact, EPA has decided 
that vehicles demonstrating compliance with CARB onboard diagnostic 
(OBD) regulations will be deemed to satisfy federal OBD requirements 
through the 1998 model year. However, EPA cannot properly consider 
California's OBD II regulations under section 243(e) of the CAA because 
California has not yet received a waiver of federal preemption for 
them. Thus, in subsequent model years after 1998, vehicle OBD systems 
must comply with the federal OBD requirements.
    vii. Summary. While the basic CFV exhaust standards are identical 
to CARB standards, EPA is not able to find that each set of currently 
waived CARB standards are as protective as the federal standards. By 
comparison to the federal program established for CFVs today pursuant 
to section 242 and 243, the California program lacks comparable 
components for at least the federal cold CO standards, recently 
promulgated evaporative emission standards and on-board diagnostics, as 
well as mobile source control for vehicle refueling vapor recovery. 
Since EPA cannot at this time make the required determination under 
section 243(e)(2), EPA is promulgating federal standards and 
requirements in this final rule that will apply to CFVs. The CAA 
exhaust standards will apply to clean fuel vehicles, and will be 
administered and enforced according to CARB practices under CAA section 
244, which is discussed later under ``Administration and Enforcement''.
    Pursuant to section 242(b), federal requirements for cold CO, 
evaporative emissions, refueling emissions, OBD (onboard diagnostics), 
NMHC, and, with certain exceptions, THC will also apply to CFVs. As 
proposed, EPA is waiving testing requirements for the cold CO standards 
for gaseous-fueled, diesel-fueled and electric CFVs when manufacturers 
demonstrate compliance with the cold CO standard through engineering 
analysis or test data.\17\ EPA does not expect problematic cold 
temperature CO emissions from gaseous-fueled CFVs since they do not 
generally use fuel enrichment strategies to aid with cold starts. 
Because of efficient combustion in diesel-fueled vehicles and the 
minimal emissions inherent with electric vehicles, EPA does not expect 
problematic cold CO emissions from these vehicles either. Also as 
discussed above, EPA will not require CNG vehicles to meet the THC 
standard due to the conflict with provisions of part C of the Act and 
other factors.
---------------------------------------------------------------------------

    \17\This provision is similar to the requirements for Otto-cycle 
vehicles which must show compliance with a PM standard in the Tier 1 
rulemaking (56 FR 25730).
---------------------------------------------------------------------------

    In the NPRM, EPA had anticipated that the regulatory processes 
underway would allow EPA to conclude at the time of this final rule 
that each set of California standards is, in the aggregate, at least as 
protective of public health and welfare as the otherwise applicable 
standards set forth in section 242 and 243. The Agency still believes 
that such a conclusion may be possible in the future. EPA will continue 
to monitor developments on these issues and, if changing circumstances 
warrant, EPA intends to revisit this rule and propose replacing the 
federal CFV standards with CARB standards under section 243(e)(2). In 
such a situation, the Agency will supplement the record and provide an 
opportunity for comment as appropriate.
    d. Credit Generating Standards. As mentioned previously, the CAA 
requires EPA to establish standards for Ultra-Low Emission Vehicles 
(ULEVs) and Zero Emission Vehicles (ZEVs) which are more stringent than 
the standards that otherwise apply to CFVs. Section 246(f)(4) of the 
CAA states that, ``[t]he standards established by the Administrator 
under this paragraph for vehicles under 8,500 lbs. GVWR or greater 
shall conform as closely as possible to standards which are established 
by the State of California for ULEV and ZEV vehicles in the same 
class''. As proposed, EPA is promulgating the ULEV and ZEV standards 
established by CARB in the California LEV program as the federal ULEV 
and ZEV standards. Section 249(d)(3) specifies that these and other 
requirements established for purposes of the credit program for the 
Clean Fuel Fleet program shall also apply for purposes of issuing 
credits in the Pilot Program.
    A ZEV (e.g., an electric vehicle) is defined as a vehicle that 
complies with the applicable ZEV standards (40 CFR 88.101). Like CARB, 
EPA will determine compliance with the ZEV standard through engineering 
analysis rather than by testing. As per section 244 of the CAA, the 
federal ZEV standards will be administered and enforced in accordance 
with applicable CARB procedures for LDVs and LDTs.
    Consistent with the CARB, EPA is establishing ZEV standards which 
require zero emissions of the following pollutants: NMOG, NOx, CO, 
particulates, and HCHO. (Emissions from non-fuel sources, like tires, 
seats, paint, etc., will likely exist as they do for conventional 
vehicles and other CFVs.) Compliance with this requirement may be 
assessed through engineering analysis. This analysis will include a 
description and analysis of all primary or auxiliary equipment and 
engines which concludes that no emissions of the stated pollutants is 
possible. The engineering analysis will determine that the vehicle fuel 
system(s) does not contain either carbon or nitrogen compounds 
(including air) which, when burned, form the above regulated exhaust 
emissions. Such criteria will also assure that evaporative emissions 
will not occur. Emission testing will not be necessary. When 
applicable, compliance testing on ZEVs may be performed according to 
the testing requirements of CFR Part 86 and 88 (Federal Test Procedure) 
at EPA's discretion. As with other CFVs, ZEVs will be subject to the 
standards of part 88 which will be administered per CARB's procedures 
for LDVs and LDTs and which are incorporated by reference.
    Like CARB, EPA will consider a vehicle with an auxiliary heater to 
be a ZEV if the heater will not operate at ambient temperatures above 
40 degrees Fahrenheit and the heater's power and/or fuel source does 
not have any evaporative emissions in use. Commenters responding to 
this issue supported this definition, on which EPA requrested comment 
in the NPRM. This auxiliary heater will not be subject to the cold CO 
standard (contained in 40 CFR Part 86.201-94) because the cold CO 
regulations do not require the testing of heaters. In addition, CARB 
has provided a specific exemption for ZEVs from the CARB cold CO 
requirements (whether or not the vehicle is equipped with an auxiliary 
heater); thus EPA's action on this issue is consistent with CARB's 
approach. EPA may reconsider subjecting ZEV auxiliary heaters to the 
federal cold CO requirement through regulation if circumstances warrant 
in the future. Any vehicle with additional power system(s) or auxiliary 
engine(s) that might produce regulated pollutants (e.g., a hybrid 
vehicle or electric vehicle with an auxiliary power source to run other 
vehicle systems) will be subject to the standards of 40 CFR Part 88 
(administered per CARB procedures, which are incorporated by reference) 
or future applicable regulations and might not qualify as a ZEV. One 
respondent requested that EPA establish ZEV exhaust emission standards 
above zero such that hybrid electric vehicles may qualify as ZEVs. EPA 
has not promulgated a test procedure for such vehicles and therefore 
standards have not been established.
    e. Administration and Enforcement Per California Practice. As 
proposed in the NPRM, EPA will administer and enforce the numerical CFV 
exhaust emission standards in the same manner as does the state of 
California. Section 244 of the Act directs EPA to administer and 
enforce the numerical CFV emission standards in the same manner as CARB 
does for vehicles less than 8,500 lbs. GVWR. Specifically, section 244 
states that when the applicable CAA and CARB numerical standards are 
the same,

    Such standards shall be administered and enforced by the 
Administrator (1) in the same manner and with the same flexibility 
as the State of California administers and enforces corresponding 
standards * * *; and (2) subject to the same requirements, and 
utilizing the same interpretations and policy judgments, as are 
applicable in the case of such CARB standards, including, but not 
limited to, requirements regarding certification, production-line 
testing, and in-use compliance.

    The application of California administration and enforcement 
procedures does not depend on whether EPA has replaced federal CFV 
standards with California standards under section 243(e). Section 
246(f)(4) provides that the credit generating standards are to be 
administered and enforced in the same manner as the other CFV 
standards. Therefore, EPA will administer and enforce the ULEV and ZEV 
standards in the same manner as does CARB.
    Section 244 states that EPA shall use California administration and 
enforcement procedures unless EPA determines that doing so will not 
meet the criteria for a waiver of preemption under section 209. EPA 
believes that the application of current California procedures would 
meet the criteria for a section 209 waiver. However, in a letter dated 
February 17, 1994, CARB requested that EPA waive preemption under 
section 209 for certain proposed amendments to California certification 
test procedures. EPA is currently analyzing this waiver request to 
determine whether these test procedure amendments meet the criteria for 
a waiver under section 209. For example, EPA must determine if the 
California enforcement procedures, as amended, are consistent with 
section 202(a) of the Act.
    Until it has completed its analysis of the waiver request, EPA 
cannot present a determination that the amended California regulation, 
and thus California administration and enforcement, do not meet the 
criteria for a waiver under section 209. Given that section 244 directs 
EPA to adopt California's procedures unless it makes such a 
determination, EPA believes that it is required to adopt today 
California's administration and enforcement procedures. EPA believes 
this adoption is in accordance with the plain language of section 244. 
If EPA later determines that the California enforcement procedures do 
not meet the section 209 waiver criteria, it will propose to amend its 
regulation regarding enforcement of CFVs according to California 
procedures.
    California procedures currently require certification testing of 
gasoline vehicles either on California reformulated gasoline or on the 
current federal gasoline test fuel called ``indolene.'' EPA believes 
that adopting this requirement as a part of adopting California 
administration and enforcement procedures will allow manufacturers to 
certify vehicles both for California as well as the other 49 states. In 
most cases, EPA believes that vehicle designs likely to be certified on 
California reformulated gasoline to the CFV standards will be capable 
of being certified to those standards on indolene as well with no 
technological changes.
    It is possible that some manufacturers may wish to certify vehicles 
on a gasoline formulation different from either California reformulated 
gasoline or indolene. For example, a manufacturer may wish to certify 
and market a CFV engine family for use by fleet operators only in areas 
where federal reformulated gasoline requirements apply, but where 
California reformulated gasoline is unavailable or expensive. A CFV 
engine family certified only on California reformulated gasoline would 
not be an attractive option to fleet operators in areas covered by 
federal reformulated gasoline requirements because the vehicles in that 
family will not have been demonstrated to comply with the CFV standards 
on federal reformulated gasoline. If certifying that family to the CFV 
standards on indolene would require additional emission control 
development effort over the California-fuel version, but certifying on 
a federal reformulated fuel would not, the manufacturer might prefer to 
certify on a fuel representative of federal reformulated gasoline. 
Thus, such a manufacturer might choose to market a line of CFVs which 
could use the local fuel (reformulated gasoline) instead of only 
marketing California-fuel versions. In this kind of situation, then, 
allowing manufacturers the option of certifying to the CFV standards on 
other gasoline formulations might provide fleets covered by the CFF 
program with an additional vehicle choice, one which may help them 
comply in a cost-effective manner with the requirement that they 
operate their CFVs in covered areas only on fuels on which the vehicles 
comply with the CFV standards.
    While the California procedures adopted here do not appear to 
permit certification on gasoline different from California reformulated 
gasoline or indolene, EPA is considering whether it has the authority 
to propose and promulgate a provision which would permit manufacturers 
to request certification on a different gasoline formulation. 
Particularly if interest is shown in such a provision on the part of 
fleets, vehicle manufacturers, fuel producers, states, or other 
interested parties, EPA may issue a proposed rule to permit 
certification on any gasoline formulation.
    With respect to the NMOG standard, CAA sections 241(3) and 241(4) 
provide definitions for NMOG and base gasoline to be used in 
determining reactivity adjustments for alternative fuels. Section 
241(4) further provides that EPA is to modify these definitions and the 
method used for determining reactivity adjustment factors to conform to 
the definitions and method used by CARB, provided CARB's definitions 
are, in the aggregate, at least as protective of public health and 
welfare as the CAA definitions. CARB's definition of NMOG, contained in 
the ``definitions'' section of its LEV program regulations, is 
identical to the CAA definition. The CAA section 241(4) specifications 
for ``base gasoline'' for the most part fall within the specification 
ranges for CARB's ``baseline'', i.e., ``conventional'', gasoline used 
by CARB in establishing the RAF for methanol-fueled vehicles.\18\ Thus, 
EPA concludes that CARB's regulatory definition of ``conventional 
gasoline'' is at least as protective as the CAA definition of base 
gasoline for determining RAFs.
---------------------------------------------------------------------------

    \18\California Exhaust Emission Standards and Test Procedures 
for 1988 and Subsequent Model Passenger Cars, Light-Duty Trucks, and 
Medium-duty Vehicles, Appendix VIII.
---------------------------------------------------------------------------

    To ensure that the administration and enforcement of the CFV 
exhaust emission standards is undertaken in conformance with section 
244, EPA incorporates by reference CARB's test procedures and other 
regulatory provisions regarding administration and enforcement. (The 
California Regulatory Requirements Applicable to the Clean Fuel Fleet 
and California Pilot Programs, April 1, 1994, have been incorporated by 
reference in 40 CFR 88.104-94(k)(2).) Any vehicle certified by CARB in 
California to the same CFV exhaust emission standards promulgated today 
will be considered to satisfy the requirements for certification to the 
federal CFV exhaust standards although the vehicle must meet all other 
Title II requirements as well as qualify as a CFV. For federal 
standards which are not currently identical to CARB requirements (e.g., 
cold CO emissions, evaporative emissions, THC, NMHC), the existing 
federal administration and enforcement provisions, including the 
applicable test procedures, will apply.
    Provisions established in the Motor Vehicle and Engine Compliance 
Program Fees rule (57 FR 30044, July 7, 1992) give EPA the authority to 
recover all reasonable costs associated with enforcement and compliance 
activities performed by EPA. CFVs certified for use in the Pilot 
program may be subject to California-only fees if a manufacturer only 
intends to sell the CFV in California. However, other CFVs certified 
under the same process may be subject to fees applicable for a federal 
certificate. This would be the case if such CFVs were sold outside of 
California (e.g., CFVs used in the CFF program outside California).
    As EPA proposed in the NPRM, vehicles certified as CFVs are to be 
labeled according to CARB's revised motor vehicle emission control 
label specifications.\19\ These revised labeling requirements include 
labeling vehicles to designate that they meet LEV, ULEV or ZEV 
standards.
---------------------------------------------------------------------------

    \19\Contained in California's proposed LEV program, California 
Code of Regulations, Title 13, section 1965.
---------------------------------------------------------------------------

2. Heavy-Duty Clean-Fuel Vehicle Standards
    Today's rule requires that engines intended for use in clean-fuel 
vehicles greater than 8,500 and up to 26,000 pounds GVWR meet a 
combined non-methane hydrocarbon (NMHC) plus NOX emissions 
standard of 3.8 grams per brake horsepower hour (g/Bhp-hr). This new 
standard applies to all light and medium heavy-duty engines which are 
to be certified for inclusion in the Clean Fuel Fleet program, 
independent of fuel type. (Also, this standard applies to heavy heavy-
duty engines participating in the Clean Fuel Fleet program for the 
purpose of generating credits.) Thus, it applies to vehicles operating 
on gasoline, diesel, alcohols, gaseous fuels, electricity, and other 
fuels.
    Section 246(f)(4) of the CAA requires that credit-generating 
standards be promulgated for heavy-duty clean-fuel vehicles, including 
standards for heavy-duty ULEVs and ZEVs. The CAA requires these 
standards to be ``comparable'', which EPA interprets to mean comparable 
to the credit-generating standards established for light-duty vehicles.
    a. The Heavy-Duty Clean Fuel Vehicle Low-Emission Vehicle 
NMHC+NOX Standard. Section 245 of the CAA sets forth the statutory 
framework governing establishment of the heavy-duty clean-fuel vehicle 
standards. Section 245(a) sets a combined NMHC+NOX standard of 
3.15 g/Bhp-hr for engines intended for use in heavy-duty clean-fuel 
vehicles, reflecting a 50 percent reduction from the current combined 
HC and NOX standards for heavy-duty diesel engines (HDDE). Section 
245(b) permits EPA to set a less stringent standard or standards if EPA 
determines that the statutory level of 3.15 g/Bhp-hr is infeasible for 
clean diesel-fueled engines. Under this provision, EPA must make a 
determination as to the feasibility of this standard for clean diesel-
fueled engine technology, taking into account ``durability, costs, lead 
time, safety, and other relevant factors.'' If the Administrator 
determines that the standard is not feasible for clean diesel-fueled 
engines, EPA may set a less stringent standard so long as it is at 
least a 30 percent reduction from the combined NMHC plus NOX 
standards for model year 1994 heavy-duty engines. A 30 percent 
reduction would be equivalent to a NMHC plus NOX standard of 4.41 
g/Bhp-hr.
    EPA determines today that a combined NMHC+NOX emission 
standard of 3.15 g/Bhp-hr is infeasible for clean diesel-fueled 
engines, for the reasons discussed below. Under Section 245(b)(1), EPA 
has the authority to establish a less stringent standard. The only 
statutory criteria for setting the less stringent standard is the 
requirement that the standard require at least a 30 percent reduction 
from the combined NMHC+NOX standards for the 1994 model year 
heavy-duty engines. Because the same standard that will apply to 
diesel-fueled vehicles will also apply to vehicles run on other fuels 
(including gasoline), EPA has looked at feasibility for both diesel- 
and nondiesel-fueled vehicles. Based on these considerations, EPA has 
decided to set the standard at 3.8 g/Bhp-hr.
    (i) Establishing the NMHC+NOX Standard. In determining whether 
the 3.15 g/Bhp-hr NMHC+NOX standard is feasible for clean diesel-
fueled heavy-duty engines, EPA believes that the CAA does not require a 
determination that the standard is feasible for every diesel engine 
family, but rather that it is feasible for at least enough diesel 
engine families such that fleet operators have enough choice to meet 
their requirements under the Clean Fuel Fleet Program. The clean-fuel 
vehicle standard is not a mandatory national standard for all heavy-
duty vehicles manufactured, but instead applies to vehicles that fleet 
owners in certain areas must buy as a certain percentage of their 
vehicle purchases beginning in model year 1998.
    In the NPRM, EPA proposed a level of 3.5 g/Bhp-hr NMHC+NOX 
based on concerns about technology, cost, leadtime, and durability for 
diesel engines as prescribed in section 245 (b) of the CAA. Based on 
the comments submitted to EPA and further analysis by the Agency, EPA 
believes that achieving HDDE emission levels below about 3.5 g/Bhp-hr 
NMHC+NOX would be technically difficult and costly to 
manufacturers and would not be achievable for an adequate number of 
light and medium heavy-duty diesel engine families by 1998. In their 
comments, engine manufacturers argued that the 3.15 g/Bhp-hr level, as 
well as the proposed 3.5 g/Bhp-hr level, would not be technologically 
and economically feasible for diesel-fueled engines. The Natural Gas 
Vehicle Coalition (NGVC) argued that the 3.15 g/Bhp-hr level would be 
feasible for diesel-fueled engines, based largely on a final report by 
Acurex under contract with CARB, entitled ``Technical Feasibility 
Reducing NOX and Particulate Emissions from Heavy-Duty 
Engines.''\20\ As the analysis summarized below demonstrates, EPA 
agrees in part with each set of comments, but reaches a conclusion 
different from both.
---------------------------------------------------------------------------

    \20\Acurex Environmental Project Under Contract with California 
Air Resources Board, Final Report, ``Technical Feasibility of 
Reducing NOX and Particulate Emissions From Heavy-Duty 
Engines,'' Acurex Environmental Project 8450, Contract No. A132-085, 
April 30, 1993 (found in the docket for this rulemaking).
---------------------------------------------------------------------------

    As a part of its assessment of the potential HDDE emission control 
technology, EPA studied the Acurex report in depth. Like the Regulatory 
Support Document associated with this rule,\21\ this report concludes 
that to achieve a NOX-emission level of 2.5 g/Bhp-hr by 2000 
(NOX levels needed to meet a 3.15 g/Bhp-hr NMHC+NOX 
standard),\22\ diesel-fueled engines would need to be equipped with 
advanced catalytic trap or EGR (exhaust gas recirculation) 
technologies. In addition, the 2.5 g/Bhp-hr level would also require 
the use of a combination of some or all of the following emission 
control approaches for diesel-fueled engines: very high pressure fuel 
injection, variable geometry turbocharging, air-to-air aftercooling, 
optimized combustion, electronic unit injections with minimized sac 
volumes, optimized fuel injection nozzles, rate shaping, exhaust gas 
recirculation and sophisticated electronic control of all engine 
systems. Most of the devices described in the Acurex report are in 
relatively early stages of development and would require extensive 
changes in heavy-duty diesel-powered engines compared to today's 
designs. Acurex projects that achieving this level would be possible, 
but it would result in a 5 percent fuel economy penalty and a doubling 
of the engine price of a 1994 diesel-fueled engine. Based on reasons 
discussed throughout this section, EPA is very doubtful that this 
standard could be met in a cost-effective manner in time for the 
production of an adequate number of 1998 model year engine families. 
However, Acurex has projected that a 3.0 g/Bhp-hr NOX-emission 
level (approximately equivalent to a 3.5 g/Bhp-hr NMHC+NOX level) 
is achievable for diesel-fueled engines by 1999 with the addition of 
EGR and oxidation catalyst technology without major new costs or fuel 
economy penalties.
---------------------------------------------------------------------------

    \21\U.S. Environmental Protection Agency, Office of Mobile 
Sources, ``Regulatory Support Document: Emissions Standards for 
Heavy-Duty Fleets,'' June 1994 (found in the docket for this 
rulemaking).
    \22\Current certification data indicate that generally all 
diesel engine families have HC certification levels less than 0.5 g/
Bhp-hr, so most reductions would have to be achieved in NOX 
emissions. Thus, achieving a 3.15 g/Bhp-hr NMHC+NOX standard 
would essentially require NOX-certification levels on the order 
of 2.5 to 2.7 g/Bhp-hr.
---------------------------------------------------------------------------

    Also, the NGVC argued that no technological breakthroughs are 
required to meet the 3.15 standard since each one of these technologies 
is already in use in one or more commercial diesel engine families to 
meet the 1994 and 1998 standards. They also state that all that would 
be required to meet the 3.15 standard would be the addition of EGR and 
possibly a particulate trap. Although it is true that some versions of 
the necessary technologies are in use today, EPA believes, as stated 
above, that the additional development effort needed to reach very low 
emission levels would be very costly and would likely limit or 
eliminate the availability of heavy-duty diesel engines for the 
program.
    Furthermore, a review of the 1993 HDE federal certification results 
clarifies the magnitude of the developmental task for manufacturers to 
achieve extremely low- emission levels, especially for diesels. The 
data, which represents engines tested on federal certification fuel, 
indicates that no current gasoline or diesel HDE family meets or is 
close to the 3.15 g/Bhp-hr standard on federal certification fuel (for 
diesel and gasoline engines NMHC and HC are roughly equivalent). Of the 
9 gasoline HDE families certified in 1993, three are within one g/Bhp-
hr of the standard (see Figure 1). Based on the aftertreatment control 
technology used by and available for gasoline engines, EPA believes 
that 3.15 g/Bhp-hr level would be within reach for a number of these 
families. For diesel engines, however, the 1993 heavy-duty engine 
federal certification results presented in Figure 1 indicate that 
achieving the 3.15 g/Bhp-hr standard on federal diesel fuel would be 
extremely problematic for the majority of engine families by 1998. 
However, five of the 37 diesel engine families certified in 1993 are 
within one g/Bhp-hr of the 3.5 g/Bhp-hr NMHC+NOX level (equivalent 
to NOX-certification level of 3.0 g/Bhp-hr), indicating that a 
standard in this range would more likely be achieved by a variety of 
diesel engines on federal certification fuel than would the 3.15 level. 
Only one of 37 diesel engine families certified in 1993 is within one 
g/Bhp-hr of the 3.15 level; most have combined HC and NOX 
certification levels of 5.5 g/Bhp-hr or less.

BILLING CODE 6560-50-P

TR30SE94.000


BILLING CODE 6560-50-C
    There are two existing sets of regulations that will drive heavy-
duty engine technology towards low NMHC+NOX levels: the federal 
1998 4.0 g/Bhp-hr NOX standard, and the California Air Resources 
Board (CARB) LEV standard for diesel engines and incomplete medium-duty 
vehicles of 3.5 g/Bhp-hr NMHC+NOX. EPA received many comments in 
Docket A-91-28 stating that the 4.0 g/Bhp-hr NOX standard for all 
1998 and later HDEs, which is one g/Bhp-hr lower than the existing 
standard, is feasible for diesel engines. Development of the technology 
necessary to comply with the 4.0 g/Bhp-hr NOX standard will make 
it more likely that a significant number of light and medium diesel HDE 
families will be able to reach emission levels slightly below 4.0 g/
Bhp-hr NOX on federal diesel fuel in the future, but it is 
unlikely that this federal standard will force the development of 
technologies needed to achieve a 3.15 g/Bhp-hr NMHC+NOX standard 
on such fuel (i.e., NOX levels of 3.0 g/Bhp-hr or less) since 
there is no federal requirement to reach lower levels.
    CARB's 3.5 g/Bhp-hr NMHC+NOx standard is the only other 
impetus driving technology to achieve emission levels significantly 
below the 4.0 g/Bhp-hr NOx standard. Engine manufacturers have 
stated that the CARB 1998 3.5 g/Bhp-hr NMHC+NOx standard for 
incomplete medium-duty vehicles and diesel engines is feasible, and EPA 
agrees with CARB's expectation that manufacturers will market a range 
of LEV diesel HDEs in California which will meet the California 
standard. However, as with the federal 4.0 g/Bhp-hr NOx standard, 
it is unlikely the current California standard will prompt the 
additional technology development needed to reach a 3.15 g/Bhp-hr 
NMHC+NOx level since there is no requirement to reach levels below 
3.5 g/Bhp-hr NMHC+NOx. This is especially true for engines 
intended for vehicles between 14,000 and 26,000 pounds GVWR, which are 
covered by the Clean Fuel Fleet Program but not the current CARB LEV 
program.
    EPA believes it is appropriate to look at the demand that will be 
created for heavy-duty CFVs as a relevant factor when determining 
whether a particular combined NMHC+NOx standard for diesel-fueled 
vehicles is technologically feasible under section 245(b)(1). For the 
reasons discussed above, EPA believes that achieving a level of 3.15 g/
Bhp-hr NMHC+NOx for even a small selection of HDDEs by 1998 will 
be a very difficult task. Manufacturers will need to invest 
significantly in research and accelerated technology development, and 
any engines which reach production would be more costly (in terms of 
both engine price increase and fuel economy penalty, as discussed 
above), especially based on the relatively small demand that will be 
created by the Clean Fuel Fleet Program. In the absence of mandated 
production, EPA believes that a technological effort of this magnitude 
is likely to be undertaken by engine manufacturers only under 
circumstances of a certain, substantial market.
    The CFF program contains no authority for a production mandate. 
Thus, the size and certainty of the market is central to whether diesel 
engines will be developed to meet the requirements of heavy-duty fleets 
covered by the fleet program. However, only a small number of vehicles 
will be needed by fleets for their fleet program purchase requirements. 
For example, during each year of the fleet program EPA estimates that a 
maximum of only about 2 percent (10,000) of total nationwide new heavy-
duty diesel vehicles will be purchased by fleet operators to meet the 
Clean Fuel Fleet Program requirements.\23\ This projected market 
decreases by about 25 percent if California opts out of the Clean Fuel 
Fleet Program; other potential opt outs by additional states may reduce 
the market to under one percent of nationwide heavy-duty diesel engine 
sales (or under about 5000 vehicles). By comparison, based on the 
implementation schedule of CARB's LEV program, the annual market 
(30,000) for vehicles required to meet CARB's LEV standard for diesel 
engines and incomplete medium duty-vehicles of 3.5 g/Bhp-hr 
NMHC+NOx is approximately three to six times as large as the 
potential federal clean diesel-fueled market.\24\ CARB's program 
incorporates a phased-in percentage sales mandate for this larger 
number of vehicles.
---------------------------------------------------------------------------

    \23\U.S. Environmental Protection Agency, Office of Mobile 
Sources, ``Estimated Number of Fleet Vehicles Affected by the Clean 
Fuel Fleet Program,'' Memorandum from Sheri Dunatchik to Docket A-
91-25, June 11, 1991.
    \24\Heavy-duty vehicle population projections for the California 
LEV program are based on the following: (1) light heavy-duty 
production reports submitted to the U.S. Environmental Protection 
Agency for model year 1991 and (2) New Truck Registrations by 
Manufacturer and State data from the ``AAMA Facts and Figures 1993'' 
(page 27) that shows California truck sales to be 10 percent of 
nationwide truck sales.
---------------------------------------------------------------------------

    EPA is concerned that a market of the size represented by the CFF 
program will not be seen as sufficient for engine manufacturers to 
justify the major voluntary technological development efforts necessary 
to reach a 3.15 g/Bhp-hr standard. Even if some manufacturers do launch 
such an effort, the likely higher cost and possible fuel economy 
penalty may make it much more difficult for diesel engine producers to 
compete for sales with gasoline or alternative fueled engine options 
which may be available. Since developing and producing vehicles for the 
fleet program is, by statute, voluntary, the Agency believes that it is 
very possible that, with a very low emission standard, no diesels will 
be produced for the clean fuel fleet program. The Act is clear in its 
intention that EPA may design the fleet program such that clean diesel 
vehicles can participate. EPA thus concludes that a standard of 3.15 g/
Bhp-hr is not feasible for heavy-duty diesel-fueled CFVs taking into 
account costs, lead time, durability, and other relevant factors, and 
should not be promulgated at this time.
    EPA reserves the right to reconsider through rulemaking the 3.15 g/
Bhp-hr NMHC+NOx standard at a later time if diesel NOx 
control technology and the HD clean-fuel engine market develop to a 
point which would make this level feasible for heavy-duty diesel-fueled 
CFVs. Such a reconsideration may be prompted by developments in the 
ongoing CARB HD LEV program now under consideration.
    ii. NMHC+NOx LEV standard. EPA is adopting an approach for the 
heavy-duty clean fuel vehicle engine standard that is very similar to 
the proposed approach. The intent of this approach is to implement a 
challenging standard in a way that harmonizes as completely as possible 
the federal standard with CARB's NMHC+NOx LEV standard for diesel 
engines and incomplete medium-duty vehicles. The Agency believes that 
the effect of this harmonization is to make the overall national market 
for clean HDDs significantly larger than it would be with either 
program alone and will thus assure that clean diesels will in fact be 
produced by 1998 for the clean fuel fleet program.
    To meet these objectives, EPA is promulgating a combined 
NMHC+NOx clean-fuel engine emission standard of 3.8 g/Bhp-hr for 
heavy-duty engines certified on federal diesel certification fuel. 
Manufacturers may also certify heavy-duty engines to a standard of 3.5 
g/Bhp-hr on California diesel certification fuel, which for a given 
engine is approximately equal in stringency to the 3.8 g/Bhp-hr 
standard using federal diesel certification fuel, as described below. 
The level of stringency represented by these standards should be 
achievable for at least several diesel engines with fairly 
straightforward technological improvements and without a serious fuel 
economy penalty. EPA intends for this approach to assure that the same 
engines that are developed and produced for the California LEV program 
will also be acceptable to fulfill the requirements of the Clean Fuel 
Fleet Program. These vehicles and engines would, as specified by 
section 242(b) of the Act, also be required to meet all other 
applicable emission standards and requirements of 40 CFR Part 86 (such 
as standards for CO, particulates, smoke and evaporative emissions, as 
applicable).
    As discussed in the NPRM, EPA recognizes that differences between 
California and federal certification and in-use diesel fuels may cause 
a difference in emission rates. CARB limits the aromatics content of 
the test fuel to a maximum of ten percent, while federal test fuel may 
contain as much as 35 percent aromatics. There is evidence to suggest 
that the use of federal test fuel can result in higher NMHC+NOX 
emissions than the use of CARB fuel in the same engine. Apparently, 
this occurs because the higher aromatic content of the fuel reduces its 
cetane rating and thus combustion is slightly less enhanced. Data 
reported in the NPRM for a 1991 prototype DDC Series 60 heavy heavy-
duty engine showed this difference to be in the range of 0.3 g/Bhp-hr 
offset.\25\
---------------------------------------------------------------------------

    \25\``Effects of Fuel Aromatics, Cetane Number, and Cetane 
Improver on Emissions from a 1991 Prototype Heavy-Duty Diesel 
Engine,'' T. Ullman, R. Mason, and D. Montalvo, Southwest Research 
Institute, SAE Paper 902171., U.S. Environmental Protection Agency, 
Office of Mobile Sources, ``Effect of Test Fuel Differences on 
NMHC+NOX Emissions,'' Memorandum from Michael Samulski to the 
docket of this rulemaking, February 23, 1993.
---------------------------------------------------------------------------

    In addition to the analysis of the 1991 prototype heavy-duty diesel 
engine referenced in the NPRM, EPA has used a similar analysis to 
examine diesel fuel effects based on data presented in a study 
performed on a 1993 prototype Navistar Diesel DTA 466 medium heavy-duty 
engine.\26\ As had been done in the earlier analysis, EPA compared 
federal and California diesel fuels on the basis of aromatic percent 
and cetane number. EPA used the specified aromatic levels of 10 percent 
for California test fuel and 35 percent for federal test fuel and 
natural cetane numbers of 50 and 46 for typical California and federal 
certification fuels, respectively.\27\ An API gravity number typical of 
both test fuels of 36 degrees was used. The following regression 
equations were developed in the study conducted on the 1993 engine for 
total hydrocarbon (THC) and NOX:
---------------------------------------------------------------------------

    \26\Diesel Fuel Property Effects on Exhaust Emissions from a 
Heavy Duty Diesel Engine that Meets the 1994 Emissions Requirements, 
``C. McCarthy, Amoco Oil Co., W. Slodowske, E. Sienicke, and R. 
Jass, Navistar International Transportation Corp., SAE Paper 922267.
    \27\The cetane numbers used in the EPA analysis on the 1993 
heavy-duty engine were based on the following: (1) ``Development of 
the First CARB certified California Alternative Diesel Fuel'', M. 
Nikanjam, SAE Paper 930728, (2) Section 2282, Title 13, California 
Code of Regulations procedure for certifying diesel fuel 
formulations resulting in equivalent emissions reductions and (3) 
Cummins Engine Company and Caterpiller diesel fuel formulations for 
federal diesel fuel. These cetane numbers are natural cetane numbers 
(without cetane improver).

THC [g/Bhp-hr] = 0.819 - 0.01942 * (Natural Cetane) + 0.01159 * 
(API)
NOX [g/Bhp-hr] = 6.593 + 0.01183 * (SFC Aromatics %) - 0.02497 
* (Natural Cetane) - 0.02365 (API)

    Substituting the values selected above for percent aromatics and 
cetane numbers into these equations, the Agency calculated a THC + 
NOX offset of about 9.7 percent. Applying this percent offset to 
the 3.5 g/Bhp-hr standard for CARB diesel fuel, the Agency analysis 
calculated that the offset would be about 0.34 g/Bhp-hr THC + NOX. 
(This analysis assumed that the offset would apply equally whether THC 
or NMHC was being considered; the Agency has no data to indicate that 
the small methane emissions component in diesel emissions would affect 
the relative behavior of the engine on the two fuels).
    Thus, the Agency concludes that diesel engines certified to a 3.5 
g/Bhp-hr level on California diesel fuel would for typical engines, 
result in emissions of approximately 3.8 g/Bhp-hr for the same engines 
operated on federal diesel fuel, confirming the estimate made in the 
NPRM. In their comments engine manufacturers quoted the same data that 
EPA has used for the 1991 and 1993 prototype diesel engines, but used 
different assumptions for the cetane number for in-use diesel fuel. 
Also, the industry analysis did not adjust the offset proportionally to 
account for the much lower emissions of CFVs as compared to the current 
engine which generated the test data. In their comments, they concluded 
that the offset between federal certification fuel and California 
certification fuel may be more in the range of 0.55-0.66 g/Bhp-hr. EPA 
has examined the assumptions used in the industry analysis and 
concluded that the EPA analysis is a more appropriate approach for 
determining the expected emissions offset. While this conclusion is 
based on data from a single engine, the 1993 engine is of the 
appropriate size (medium heavy-duty) from which to draw a conclusion 
for this program and the study was done on a meaningful array of diesel 
test fuels. It is likely that if similar data were collected on other 
engines, somewhat different values for the CARB/federal fuel offset 
might be observed. Until such a time when additional data becomes 
available, EPA will assume that offsets for other heavy-duty diesel 
engines would range on either side of the 0.34 g/bhp-hr level EPA has 
developed for the 1993 engine. Thus, the Agency believes that its 
analysis reasonably accounts for potential fuel variability and that 
the 0.34 g/Bhp-hr value represents a reasonable estimate for the 
average emissions offset between federal certification fuel and 
California certification fuel. If a reduction catalyst is used as a 
means to reduce NOX levels, concerns over fuel variability 
diminish significantly. The CARB/federal fuel offset would tend to be 
less because the reduction catalyst would reduce emissions 
proportionally for both fuels. While the use of reduction catalysts may 
not be universal, EPA expects that some light/medium heavy-duty engine 
families will use reduction catalyst technology to meet the NOX 
target level. Additional data and analysis supporting the above 
conclusion of the offset between federal and California diesel fuel can 
be found in the Summary and Analysis of Comments document for this 
rulemaking.
    Based on its analysis of the emissions offset above, EPA has set 
the emission standard for HDD CFVs certified on federal diesel fuel at 
3.8 g/Bhp-hr NMHC + NOX. This standard is consistent with EPA's 
intent that the heavy-duty clean-fuel vehicle standards be of as close 
to equivalent stringency as possible to the CARB LEV standard for 
similar vehicles to assure the production of an adequate number of 
diesel engine models for the clean fuel fleet program. Further, because 
the Agency is reasonably confident that in-use emissions of a engine 
certified at 3.5 g/Bhp-hr on California fuel will emit in the range of 
3.8 g/Bhp-hr on federal fuel, EPA will grant a federal certificate of 
conformity to a manufacturer which demonstrates compliance with the 3.5 
g/Bhp-hr standard on California certification fuel. While it is 
possible that individual engines certified on California fuel may 
experience a slightly different offset when operated on federal diesel 
fuel (e.g., when a cetane number is much different between the fuels), 
EPA believes that this will be the exception and that in-use 
performance on federal diesel fuel will average about 3.8 g/Bhp-hr. The 
use of federal fuel in engines certified on California fuel is 
consistent in this case with the fuel use provisions of sections 246(b) 
and 241(2), since EPA has concluded that such engines indeed comply 
with the clean fuel vehicle requirements on federal diesel fuel.
    As another way of harmonizing the CARB LEV program and the CFF 
program to ensure a sufficient number of HDDEs will be available by 
1998 for the fleet program, EPA will only test engine families which 
were certified to CFV standards on California diesel fuel on diesel 
fuel meeting California specifications during any Selective Enforcement 
Audit (SEA) testing or in-use recall enforcement testing. The Agency 
believes that if manufacturers of HD CFVs certified on California fuel 
perceive that their engines may be subject to later EPA testing on 
federal diesel fuel, then they may desire to perform additional testing 
of these engines on federal certification diesel fuel for the purpose 
of assuring themselves of in-use compliance on federal diesel fuel. 
This approach to SEA and in-use recall testing should assure 
manufacturers that they will not need to perform any additional testing 
at certification beyond that required for California certification. 
Fuel meeting California diesel test fuel specifications is an 
acceptable test fuel under the FTP because it meets the federal fuel 
specifications. This policy of the Agency using fuel meeting California 
diesel test fuel specifications for SEA and recall testing applies only 
to CFVs. If the Agency becomes aware of changed circumstances which 
indicate that this policy is inappropriate, the Agency reserves the 
right to discontinue this policy.
    For gasoline-fueled HD CFVs, EPA is aware of no evidence to suggest 
any significant difference in emissions between such vehicles operating 
on federal and California certification gasolines; thus the technical 
basis for separate standards which exists for diesels does not apply 
for gasoline engines. Commenters did not respond to the issue of the 
appropriateness of a single standard for all HDEs. However, EPA 
believes that in general, a single standard for all fuels provides 
equity among manufacturers of different types of engines for this 
program. Also, section 245 of the Act seems to indicate that Congress 
intended for there to be a single heavy-duty CFV standard. Therefore, 
as for diesel engines, EPA today also promulgates a standard of 3.8 g/
Bhp-hr for gasoline clean-fuel vehicle engines certified on federal 
gasoline test fuel. As with diesel engines, gasoline engines 
demonstrating compliance with the California 3.5 g/Bhp-hr standard on 
California gasoline certification fuel will be eligible for a federal 
certificate.
    Given the arguments above, as well as the fact that manufacturers 
have more than three years before the purchase requirements for clean-
fuel fleet vehicles begin, EPA believes that several heavy-duty diesel 
engine families will achieve a standard of 3.8 g/Bhp-hr NMHC + NOX 
on federal certification fuel or 3.5 g/Bhp-hr NMHC + NOX on 
California certification fuel by the 1998 model year. Also, EPA 
believes that most gasoline-fueled HDE families can meet a standard of 
either 3.8 g/Bhp-hr on federal certification fuel or 3.5 g/Bhp-hr on 
California fuel by the 1998 model year. These clean fuel vehicle 
standards will apply to HDEs used in clean-fuel fleet vehicles of 8,501 
to 26,000 lbs. GVWR to meet the purchase requirements of the fleet 
program.
    b. Heavy-Duty ULEV and ZEV Standards. As previously discussed, 
section 246(f)(4) of the CAA requires EPA to promulgate emission 
standards for ULEVs and ZEVs, for the purpose of determining fleet 
program credits. The provision states that the standards:

* * * shall be more stringent than those otherwise applicable to 
clean-fuel vehicles under this part* * * . The standards* * *for 
[light-duty] vehicles* * *shall conform as closely as possible to 
standards which are established by the State of California for ULEV 
and ZEV vehicles in the same class. For vehicles of 8,500 lbs. GVWR 
or more, the Administrator shall promulgate comparable standards for 
purposes of this subsection.

    EPA interprets this comparability criteria to mean that ULEV and 
ZEV standards for heavy-duty engines should require approximately the 
same percentage of emission reduction compared to heavy-duty CFV LEV 
standards as light-duty CFV ULEV and ZEV standards require compared to 
light-duty CFV LEV standards. Under this provision, EPA must determine 
the appropriate level for the heavy-duty ULEV and ZEV standards. EPA 
proposed this interpretation and did not receive any comments objecting 
to it.
    EPA also believes it is appropriate to take California's ULEV and 
ZEV standards into consideration and attempt to harmonize the federal 
and California standards where possible. As mentioned above in the 
section pertaining to the feasibility of the HD CFV LEV standard, EPA 
believes such harmonization is valuable because it helps create a 
single larger market for heavy-duty ULEVs and ZEVs rather than two 
smaller markets. A single larger market makes it more economical for 
manufacturers to produce heavy-duty ULEVS and ZEVs, which makes it more 
likely that manufacturers will choose to produce vehicles that can 
participate in the federal program. (The federal program does not have 
a sales mandate for manufacturers, so their participation is voluntary 
and controlled, in part, by market demand for their products.)
    EPA also believes it has authority to consider harmonization of 
federal heavy-duty ULEV and ZEV standards and California incomplete 
medium-duty vehicle and diesel engine ULEV and ZEV standards in setting 
the federal standards.\28\ As explained above, EPA interprets 
``comparable standards'' to mean that heavy-duty CFV ULEV and ZEV 
standards must be comparable to light-duty CFV ULEV and ZEV standards. 
Since the Act requires EPA to establish federal light-duty ULEV and ZEV 
standards that conform as closely as possible to California's light-
duty ULEV and ZEV standards, harmonization of the federal heavy-duty 
ULEV and ZEV standards and California incomplete medium-duty vehicle 
and diesel engine ULEV and ZEV standards could be part of the 
comparability determination. In addition, the direction of section 
246(h) to set ``comparable standards'' gives EPA some discretion in 
establishing standards. EPA believes it is appropriate to consider 
California's standards in exercising this discretion. EPA believes 
that, since the federal HD ULEV and ZEV standards are voluntary credit-
generating standards, their intended purpose is primarily to provide 
compliance flexibility for manufacturers and fleet operators. The 
Agency's goal then, in selecting these standards, is to provide the 
maximum flexibility allowable under section P246(f)(4) of the Act, 
while ensuring that there will be no negative impacts on the 
environment.
---------------------------------------------------------------------------

    \28\Beginning with the 1995 model year, CARB's medium-duty 
vehicles include vehicles with a GVWR of 14,000 pounds or less.
---------------------------------------------------------------------------

    i. Ultra low-emission vehicle standards. EPA is adopting standards 
for heavy-duty ULEVs NMHC+NOX, CO, particulate, and formaldehyde 
emissions as specified below in Table 5. These standards are the same 
as those that were proposed, except the formaldehyde standard, which is 
lower than originally proposed. In the opening statement at the public 
hearing for the proposal and in a memorandum that was placed in the 
docket and distributed at the public hearing,\29\ EPA informed the 
public that the proposed standard for formaldehyde was a typographical 
error and requested comment on the change of the heavy-duty ULEV 
standard to the level specified in Table 5. EPA did not receive any 
comments objecting to this level for the formaldehyde ULEV standard. 
The final heavy-duty ULEV standards require reductions in emissions 
that are comparable to the respective emission reductions required of 
light-duty ULEVs, and are consistent with the respective requirements 
of the California LEV program.
---------------------------------------------------------------------------

    \29\U.S. Environmental Protection Agency, Office of Mobile 
Sources, ``Request for Comment on Revised Formaldehyde Standard for 
Heavy-Duty ULEVs for the Clean Fuel Fleet NPRM,'' July 12, 1993, 
Memorandum from Bryan J. Manning through Tad Wysor to docket A-92-30 
(Document Number III-A-03).
---------------------------------------------------------------------------

    As proposed, EPA is setting a combined NMHC + NOX HD CFV ULEV 
standard that is approximately a 30 percent reduction from the HD CFV 
LEV standard. The comparable light-duty CFV ULEV standards require 
reductions from light-duty CFV LEV standards of 38 to 50 percent of 
NMOG emissions and 45 to 50 percent for NOX emissions. Even though 
EPA has separate NMOG and NOX standards for light-duty CFV ULEVs, 
the Agency does not believe it is required to establish such separate 
standards for heavy-duty CFV ULEVs. Rather, EPA believes it is 
appropriate to have a combined NMHC + NOX heavy-duty CFV ULEV 
standard because heavy-duty CFV LEV standards have a combined NMHC + 
NOX standard rather than separate NMOG and NOX standards (as 
do light-duty CFV LEVs and ULEVs). Furthermore, a combined NMHC + 
NOX standard is consistent with the California incomplete medium-
duty vehicle and diesel engine ULEV standard. EPA proposed this 
interpretation and did not receive any comments objecting to a combined 
NMHC + NOX standard for HDEs.
    EPA also is setting specific emission standards for CO and 
particulates that require a reduction in emissions from the heavy-duty 
CFV LEV standards of 50 to 54 percent and 50 percent, respectively, as 
proposed. (For both CO and particulates, heavy-duty CFV LEVs must meet 
the same standards as do conventional heavy-duty vehicles. Thus, for 
these standards, the reductions in emissions for heavy-duty CFV ULEV 
standards are the same whether they are compared to conventional or CFV 
LEV heavy-duty standards.) The comparable light-duty CFV ULEV standards 
require reductions in CO and particulate emissions of 50 percent each 
from light-duty CFV LEV standards. These federal heavy-duty ULEV 
standards are identical to California's incomplete medium-duty vehicle 
and diesel engine ULEV standards.
    Finally, EPA is also setting a specific heavy-duty ULEV standard 
for formaldehyde. The comparable light-duty CFV ULEV standard requires 
a reduction in emissions ranging from 39 to 52 percent from light-duty 
CFV LEV standards. Though formaldehyde is not regulated for heavy-duty 
CFV LEVs, formaldehyde is regulated in the light-duty CFV ULEV 
standards. EPA believes that heavy-duty vehicles that emit formaldehyde 
are likely to participate in the CFV ULEV program. Because emissions of 
formaldehyde are of significant concern to EPA and to Congress, as 
evidenced by the inclusion of formaldehyde standards for light-duty CFV 
LEVs and the inclusion of formaldehyde as a hazardous air pollutant, 
EPA believes it is appropriate to include standards for formaldehyde 
emissions in the heavy-duty CFV ULEV program. EPA has the authority to 
regulate formaldehyde emissions not only under section 246(f)(4), but 
also under CAA sections 202(a) and 301(a). Also, the CARB LEV program 
includes a formaldehyde ULEV standard for diesel engines and incomplete 
medium-duty vehicles. Therefore, it is consistent with the CARB LEV 
program to set a formaldehyde standard for federal HD ULEVs. The 
standard promulgated today is identical to CARB's incomplete medium-
duty vehicle and diesel engine ULEV formaldehyde standard.

                 Table 5.--Emission Standards for Model Year 1998 and Later Heavy-Duty Vehicles                 
----------------------------------------------------------------------------------------------------------------
                                                           NMHC +              Particulate                      
          Vehicle type              THC (g/    NOX (g/    NOX (g/   CO (g/Bhp-  1 (g/Bhp-   OMHCE (g/   HCHO (g/
                                    Bhp-hr)    Bhp-hr)    Bhp-hr)      hr)         hr)       Bhp-hr)    Bhp-hr) 
----------------------------------------------------------------------------------------------------------------
Conventional Gasoline <= 14,000                                                                                 
 GVWR............................        1.1        4.0  .........       14.4  ...........        1.1  .........
Conventional Gasoline >= 14,000                                                                                 
 GVWR............................        1.9        4.0  .........       37.1  ...........        1.9  .........
Conventional Diesel..............        1.3        4.0  .........       15.5        0.10         1.3  .........
LEV Certified on Federal Fuel....        (2)        (2)        3.8        (2)         (2)         (2)  .........
LEV Certified on California Fuel.        (2)        (2)        3.5        (2)         (2)         (2)  .........
ULEV.............................        (2)        (2)        2.5        7.2        0.05         (2)      0.025
ILEV.............................        (2)        (2)        2.5       14.4        0.10         (2)      0.050
----------------------------------------------------------------------------------------------------------------
(\1\) Standards for particulate matter (PM) apply only to diesel-fueled vehicles.                               
(\2\) HD CFVs must meet conventional vehicle standards for THC, NOX, CO, PM, and OMHCE.                         

    Based on the Acurex report, Regulatory Support Document, and 
comments received from the Natural Gas Vehicle Coalition, EPA believes 
that alternative fuel vehicle technology will be available to meet 
these standards by 1998, and that gasoline and diesel engines may also 
be able to achieve these ULEV levels by that time or shortly 
thereafter. In any event, covered fleet operators are never required to 
purchase ULEVs to meet the requirements of the fleet program.
    ii. Zero-emission vehicle standards. Zero-emission vehicles (e.g. 
electric vehicles) are vehicles which have no emissions of the 
pollutants of concern. Therefore, as proposed, EPA today establishes 
heavy-duty ZEV standards of zero for NMHC + NOX, CO, particulates, 
and formaldehyde. (Emissions from non-fuel sources (e.g. tires, seats, 
paint, etc.) will likely exist as they do for conventional vehicles and 
other CFVs.) These final heavy-duty ZEV standards each require a 100 
percent reduction in emissions from the heavy-duty LEV standards, which 
for each pollutant is comparable to the respective emission reductions 
required of light-duty CFV ZEVs. Furthermore, these federal ZEV 
standards are identical to California's incomplete medium-duty vehicle 
and diesel engine ZEV standards.
    Compliance with the ZEV standards may be assessed through 
engineering analysis, which shall include a description and analysis of 
all primary or auxiliary equipment and engines which concludes that no 
emissions of the stated pollutants is possible. The engineering 
analysis must determine that the vehicle fuel system(s) does not 
contain either carbon or nitrogen compounds (including air) which, when 
burned, form the above regulated exhaust emissions. Such criteria will 
also assure that evaporative emissions will not occur. Given these 
criteria there is no need to perform emission testing because the above 
pollutants cannot be emitted from the vehicle. However, compliance for 
ZEVs may be assessed through testing by performing the tests required 
by Parts 86 and 88 (Federal Test Procedure) when applicable.
    Any vehicle with additional power system(s) or auxiliary engine(s) 
that might produce regulated pollutants (e.g. hybrid vehicle or an 
electric vehicle with an auxiliary power source to run other vehicle 
systems) will be subject to the testing requirements of Part 86 or Part 
88 or future applicable regulations and might not qualify as a ZEV. A 
ZEV with a heater will be considered a ZEV as long as the heater will 
not operate at an ambient temperature above 40 deg.F and the heater's 
power/fuel source does not have evaporative emissions in use.
    c. Other Issues--i. Flexible- and Dual-Fuel HDEs. EPA is not 
promulgating a set of emission standards for flexible- and dual-fuel 
heavy-duty vehicles. (Flexible- and dual-fuel vehicles are also 
commonly referred to as variable- and bi-fuel vehicles, respectively.) 
Section 243(d) of the Act prescribes emission standards for flexible- 
and dual-fueled light-duty vehicle and light-duty trucks. EPA is 
establishing these standards today (see II.A.1.a). The directive of 
section 243(g) that ``nothing in this section shall apply to heavy-duty 
engines'' makes it clear that section 243(d) does not require EPA to 
establish flexible- and dual-fueled standards for heavy-duty engines.
    Even if EPA has authority to promulgate such standards (a question 
which we do not answer here), EPA does not think it is appropriate to 
exercise that authority at this time. As Natural Gas Vehicle Coalition 
suggested in their comments, it is possible that similar standards 
could be implemented for HDEs in the same manner as prescribed in the 
statute for light-duty vehicles and light-duty trucks. However, as 
described in the proposal, separate NMHC standards are not necessary 
for flexible- or dual-fuel HDEs since similar behavior of NMHC (or the 
equivalent (NMHCE)) would be expected for all fuel types. In addition, 
as discussed above, heavy-duty vehicles operated on conventional 
gasoline and diesel fuel will be able to comply with the CFV standards 
by 1998, and thus, there is not a compelling technical reason to have 
slightly higher standards for the vehicle when it is operated on clean 
alternative fuel. For all these reasons, EPA is not adopting separate 
standards for flexible- or dual-fuel HDEs.
    Section 241(2) defines clean alternative fuel for flexible- or 
dual-fuel vehicles and engines as the fuel(s) on which such vehicles 
are certified to the CFV standards. EPA concludes from this statutory 
language that engines certified on California gasoline or diesel fuel 
only will need to operate exclusively on that fuel in covered 
nonattainment areas. (For single-fuel vehicles and engines, section 
241(2) requires operation in covered areas on the fuel(s) on which they 
``comply'' with the CFV standards. As discussed above, EPA has 
determined that single-fuel HDEs certified on California gasoline or 
diesel fuel comply with the HD CFV standard on federal fuels.)
    ii. Optional LDT Certification. For a number of years, 
manufacturers have had the option of certifying their HDEs used in 
vehicles between 8501 and 10,000 lbs. GVWR using the LDT emission 
standards and provisions. This provision is found in 40 CFR 86.085-
1(b). EPA finds no reason why the treatment of CFVs should be different 
than conventional vehicles in this regard, and thus for consistency EPA 
will also make this option available for clean-fuel HDEs.
    iii. Heavy-duty test procedures. While this action establishes NMHC 
+ NOx standards for heavy-duty vehicles and engines, EPA regulations 
historically have not included test procedures for the measurement of 
methane separate from other hydrocarbons, and thus the calculation of 
NMHC emissions would not have been possible. Prior to today's 
regulations the heavy-duty test procedures only measured the total 
amount of hydrocarbons (including methane), but did not separately 
measure the amount of any individual hydrocarbons such as methane. 
Therefore, EPA is promulgating additional test procedures for the 
separate measurement of methane and calculation methods for NMHC 
emissions, as discussed below. Test procedures for measurement of total 
hydrocarbon (THC) emissions will be unchanged, and EPA will continue 
the current practice of using a flame ionization detector (FID) for THC 
measurement.
    The test procedures call for the separate measurement of methane 
using gas chromatography\30\ as specified in the Society of Automotive 
Engineers (SAE) Recommended Practice J1151. This is consistent with 
both the previously established EPA procedure for light-duty vehicles 
and light-duty trucks (40 CFR 86.111-94 and 40 CFR 86.140-94), and the 
California procedure for methane measurement. This approach does not 
permit continuous methane measurement of exhaust samples and will 
require that a bag sample be collected for all classes of vehicles and 
engines. (The SAE Recommended Practice J1151 is incorporated by 
reference in sections 86.111-94(b)(3)(vii) and 86.1311-94(b)(2)(iii) of 
the regulatory text and is available in EPA Air Docket A-92-30.)
---------------------------------------------------------------------------

    \30\Gas Chromatography--A separation technique in which a sample 
of the gaseous state is carried by a flowing gas (carrier gas) 
through a tube (column) containing stationary material. The 
stationary material performs the separation by means of its 
differential affinity for the components of the sample.
---------------------------------------------------------------------------

    Under the approach for measuring NMHC, THC will first be measured 
using the FID. Then, methane will be measured using gas chromatography. 
This methane measurement will then be multiplied by a ``FID response 
factor.'' This response factor is necessary because the FID responds 
differently to methane than it does to other hydrocarbons. In order to 
find what portion of the FID's THC reading is attributable to methane, 
the tester must know the relationship between the FID response to other 
hydrocarbons and to methane. Such a ``FID response factor'' is 
calculated by noting the response of the FID, calibrated for typical 
HCs, to a known quantity of methane. For example, if a sample known to 
be 10.0 grams of methane gives a FID reading of 11.0 grams, then the 
FID response factor is 11.0/10.0 or 1.10. The mass of NMHC is then the 
difference between the THC (as measured by the FID) and the methane (as 
measured by gas chromatography), multiplied by the FID response factor.
    For natural gas vehicles (NGVs), the Natural Gas Vehicle Coalition 
and the American Gas Association suggested that the EPA adopt the CARB 
method of direct measurement of NMHC by gas chromatography. This issue 
was also raised in response to the Gaseous Fuels Rule NPRM (proposed in 
November, 1992), and EPA has addressed all concerns related to the 
measurement of NMHC emissions for NGVs in the subsequent Gaseous Fuels 
FRM. The NMHC measurement method promulgated in this section is the 
same as the method established in the Gaseous Fuels FRM. If the NMHC 
measurement procedure for NGVs is revisited and changed in the future, 
then any revised method will apply to clean-fuel vehicle testing as 
well.
    In order to provide manufacturers with additional flexibility, EPA 
proposes to make the measurement of methane (and subsequent 
calculations) optional. Manufacturers would be allowed to measure and 
report THC emissions for compliance with the NMHC standards. Since THC 
emissions are the sum of the methane and NMHC emissions, they will be 
higher than the NMHC emissions alone; thus, if the THC emissions are 
lower than the standard, the NMHC will also be below the standard. 
While this option in effect increases the stringency of the standard, 
some manufacturers may find that the savings associated with using a 
simpler test procedure justify certifying under this option. This is 
especially true for diesels, where the methane fraction of THC 
emissions is small.
    iv. Averaging, trading, and banking. The Agency has previously 
established an extensive credit exchange program for NOX and PM 
emissions from heavy-duty engines\31\. Under this program, a 
manufacturer can take emissions credits for producing vehicles that are 
below the applicable standards, and then use those credits either on 
its own engines within the same averaging set or to sell to other 
manufacturers for use in families in the same averaging set which do 
not meet the applicable standards (trading). These emission credits can 
be used in the year generated or retained for later use (banking). 
Fleet average emissions are unchanged by this program.
---------------------------------------------------------------------------

    \31\``Certification Programs for Banking and Trading of Oxides 
of Nitrogen and Particulate Emission Credits for Heavy-Duty 
Engines;'' Final Rule, 55 FR 30584, July 26, 1990.
---------------------------------------------------------------------------

    It would be inappropriate for a manufacturer to receive 
certification emission credits for vehicles certified under part 88 
(i.e., CFV LEVs, ULEVs and ZEVs) for participation in the fleet 
program. The CFV standards are mandatory for covered fleet vehicle 
purchases; to also allow manufacturer credits for certification of the 
same vehicles would result in less emission reduction than is 
contemplated in the Act. Thus, CFVs certified under part 88 for use in 
the fleet program for either compliance or credit purposes shall be 
excluded from the manufacturers' credit exchange program. By contrast, 
single-fuel engines that are certified under part 86 may not 
participate in the fleet program even if their emissions meet CFV 
standards. Therefore, such engines may generate manufacturer 
certification credits. However, dual- and flexible-fuel vehicles 
certified under part 86 may only be able to generate certification 
emission credits based on the least stringent standard to which the 
vehicle is certified since the manufacturer has no control of the fuel 
used by the vehicle owner.
    In order to allow a distinction between engines which are eligible 
for the fleet program and those that are not, EPA requires 
manufacturers to have different engine lables. Those engines labeled 
under Part 88 must include on the label an indication that this engine 
is intended to be part of a clean-fuel vehicle program, and as such, 
they will be excluded from the manufacturers' credit exchange programs. 
Those engines labeled under Part 86 only will not include any 
indication on the label that the engine meets any of the emissions 
requirements of Part 88, and as such, they will be excluded from all 
clean-fuel vehicle programs and may be included in a manufacturers' 
credit exchange programs. EPA will allow manufacturers to divide a 
clean-fueled engine family into two engine families, one labeled under 
Part 88 (the Part which regulates clean-fuel fleet vehicles) and one 
labeled under Part 86 (the Part which regulates conventional vehicles) 
only. The Agency believes that this approach will prevent ``double 
counting'' of emissions benefits, but will still provide the 
manufacturers flexibility in determining the most cost effective means 
of complying with the requirements of Part 86.
    Furthermore, EPA has decided not to pursue the proposed Credit 
Exchange Programs for Manufacturers of Heavy-Duty Clean-Fuel Fleet 
Vehicles. The programs appeared to be administratively burdensome with 
minimal economic and emission benefit, and there was no support 
expressed in the comments for these programs.
    v. Labeling. Section 86.095-35 of Part 86 requires that all heavy-
duty vehicles and engines certified by EPA have a permanently affixed 
label indicating that this vehicle or engine meets all of the 
applicable requirements of Part 86. All heavy-duty LEVs, ULEVs, and 
ZEVs will be required to meet additional labeling requirements so the 
purchaser (e.g. fleet operator) knows the vehicle is a CFV and ``double 
counting'' of emissions benefits by the purchasers or manufacturers of 
CFVs is prevented as discussed above in the Averaging, Banking, and 
Trading section. Those clean-fuel vehicles and engines that are 
regulated under both Part 86 and Part 88 (e.g., gasoline-fueled 
vehicles, methanol-fueled vehicles) shall meet the standard labeling 
requirements of Part 86 with the addition of a statement that this 
vehicle or engine meets the applicable heavy-duty LEV, ULEV, or ZEV 
standards. However, certain clean-fuel vehicles (for instance electric 
vehicles) are regulated under Part 88 but have not yet been regulated 
under Part 86. For these clean-fuel vehicles not yet regulated under 
Part 86, the manufacturer shall affix a permanent label that indicates 
that the vehicle or engine meets the requirements of Part 88 for heavy-
duty LEVs, ULEVs, or ZEVs, as applicable, but does not necessarily meet 
the requirements of Part 86. The reason for this requirement is to 
inform the consumer that the vehicle may be used by a fleet operator 
towards meeting the purchase requirements of the Clean Fuel Fleet 
program, but the vehicle is not eligible to be used in the averaging, 
trading, and banking program in Part 86.

B. Conversions to Clean-Fuel Vehicles

    CAA section 247 states that fleet owners may meet clean-fuel fleet 
vehicle purchase requirements through the conversion of existing or new 
gasoline- or diesel-powered vehicles to clean-fuel vehicles. A 
converted CFV will thus be considered a new vehicle for the purposes of 
the Clean Fuel Fleet program, and so it will be eligible to meet CFF 
purchase requirements and to earn credits and TCM exemptions. For this 
purpose, a clean-fuel fleet vehicle (or engine) is one which meets the 
applicable CFV emission standards and other requirements as prescribed 
in CAA sections 242 through 245.
1. EPA's General Regulatory Approach for Conversions of Vehicles
    EPA today codifies the exemption from tampering liability for 
conversion of gasoline or diesel-fueled vehicles to clean fuel vehicles 
if the converted vehicles comply with the applicable clean fuel vehicle 
standards and the conversions are performed in compliance with EPA's 
conversion regulations being promulgated today. Section 247(e) states 
that such conversions shall not be considered as violations of the 
tampering prohibition in Section 203(a)(3).
    Since conversions involve changes to vehicles/engines that have 
previously been certified as meeting applicable emission standards, 
conversions are typically subject to the tampering prohibitions of CAA 
section 203(a)(3), which prohibit tampering with emission control 
devices. The initial guidelines established by EPA regarding the 
enforcement of tampering prohibitions are contained in the two 
documents entitled ``Mobile Source Enforcement Memorandum No. 1A'', 
dated June 25, 1974, and ``Fact Sheet: Conversion of Vehicles and 
Engines to Operate on Natural Gas or Propane'', dated November 1, 1991. 
In the 1990 amendments to the CAA, section 203 was amended to limit the 
scope of the tampering provisions of section 203(a)(3). As amended, an 
exemption to the tampering provisions of section 203(a)(3) is provided 
where a conventional vehicle is converted ``* * * for use of a clean 
alternative fuel and if such vehicle continues to comply with section 
202 standards when operating on the alternative fuel * * * and if in 
the case of a clean alternative fuel vehicle (as defined by the 
Administrator), the device or element is replaced upon completion of 
the conversion procedure and such action results in proper functioning 
of the device or element when the motor vehicle operates on a 
conventional fuel.''
    In addition to the general exemption for clean fuel conversion from 
the tampering prohibitions, section 247(d) creates a special exemption 
for conversions performed pursuant to EPA's regulations issued under 
section 247. Thus, if a conversion is performed in compliance with the 
regulations issued today, the conversion will not violate the tampering 
prohibition of section 203(a)(3). For any conversions that are not 
performed in compliance with today's regulations (e.g., installation of 
a not-certified conversion configuration), liability for tampering will 
be determined based on section 203(a).
    Issues related to the conversion of vehicles to alternative fuel 
use are addressed in the NPRM and FRM on gaseous-fueled emission 
standards, (FRM: published in the Federal Register on September 21, 
1994), hereafter referred to as the Gaseous Fuels Rule. The conversion 
provisions in the Gaseous Fuels Rule apply to all conversions 
regardless of fuel type and hence form the basis for the certification 
procedures established in today's rule for vehicles converted to CFVs 
except where superseded by the requirements of today's rule. The 
Gaseous Fuels Rule provides that a vehicle conversion will not be 
considered tampering if the vehicle has been converted to a 
configuration which has been certified by EPA as meeting applicable 
emission standards. For vehicles converted to use fuels for which no 
standards exist, the provisions of Memorandum 1A apply, and EPA will 
not consider a modification to a certified emission control 
configuration to be tampering if the emissions from the vehicle are not 
increased as a result of the modification. Consistent with the Gaseous 
Fuels Rule, today's rule provides that in order to be considered clean 
fuel vehicles, conversion configurations of vehicles/engines must 
include all of the hardware necessary to allow a vehicle to operate on 
a fuel other than the fuel for which the vehicle or engine was 
originally manufactured.
2. Requirements for Clean Fuel Fleet Vehicle Conversions
    Section 247(b) of the CAA directs EPA to promulgate regulations 
governing conversions of conventional vehicles to CFVs that ``* * * 
will ensure that a converted vehicle will comply with the standards 
applicable under this part to clean-fuel vehicles.'' While the 
conversion provisions in the Gaseous Fuels Rule will require that 
emissions from converted vehicles meet the applicable emission 
standards whenever manufacturers certify conversion configurations, 
those provisions are not intended to fulfill all of the requirements of 
section 247 of the CAA. Therefore, in addition to the general 
guidelines for converted vehicles discussed in the section above and in 
the Gaseous Fuels rule, today's rule establishes that certification 
must be obtained from EPA before a converted vehicle can be sold to the 
public as a clean fuel fleet vehicle. The following sections describe 
the regulations which are promulgated by today's rule to satisfy the 
requirement of section 243(b).
    a. Responsible parties: certification, warranty and liability 
provisions for CFV vehicles. EPA in today's rule holds that the 
certifier of the conversion configuration is liable as a manufacturer 
for purposes of sections 206 and 207 and related enforcement 
provisions. Imposing such liability on the certifier is an outgrowth 
and systhesis of the two options presented in the proposal. Following 
is a discussion of the significant advantages and disadvantages 
inherent in each of the proposed options, a response to pertinent pubic 
comments, and the final approach being promulgated today.
    Section 247(c) states that ``any person who converts conventional 
vehicles to clean-fuel vehicles * * * shall be considered a 
manufacturer for purposes of sections 206 and 207 and related 
enforcement provisions.'' To implement this requirement EPA considered 
two options in the NPRM regarding the definition of the ``person who 
converts.''
    Under the first proposed option, the person(s) who installs a 
conversion configuration on a vehicle in order to convert the vehicle 
into a CFV would be liable as a manufacturer under section 247(c). 
Thus, a person installing a conversion kit would be required to obtain 
a federal certificate of conformity for that conversion configuration. 
Under the second proposed option, both the conversion kit manufacturer 
and the installer of the kit would be liable as manufacturers under 
247(c). In the second option, the kit manufacturer and the installer 
would both have responsibilities in demonstrating that a vehicle 
converted to a CFV complies with the CFV standards and with EPA's 
regulations promulgated under section 247(b).
    A significant advantage inherent in the first option is that 
liability is easily assigned and enforcement is less complicated if a 
single entity is held accountable for warranting each vehicle's 
emissions performance and is subject to production line testing 
requirements. The existence of such a sole liable party may also make 
it easier for purchasers of converted vehicles to seek redress for 
emissions performance failures under warranty provisions.
    However, EPA believes that the installer may not be the appropriate 
party on which to focus all liability. Commenters indicated that the 
kit manufacturer is in the best position to perform the required 
certification testing. In addition, EPA believes that the first 
proposed option would result in a larger number of certifiers, and 
multiple certificates for the same conversion configuration. This would 
complicate enforcement and warranty actions by increasing the number or 
parties against whom such actions would need to be taken.
    Commenters also noted the need for strong warranty and recall 
provisions in order to increase public confidence in the performance of 
converted vehicles. EPA believes that the existence of a large number 
of certifier-installers, many of whom may be relatively small 
businesses with limited financial resources\32\ will adversely affect 
the confidence of purchasers of converted vehicles in their ability to 
pursue warranty claims.
---------------------------------------------------------------------------

    \32\U.S. Environmental Protection Agency, Office of Mobile 
Sources, ``A Preliminary Assessment of the Gaseous Fuels Aftermarket 
Conversions Industry, EPA Contract 68-C1-0059, September 28, 1992.
---------------------------------------------------------------------------

    The second option offers the advantage of allowing EPA to hold kit 
manufacturers legally responsible for some or all of the certification, 
production line testing, in-use testing, warranty, and recall 
requirements. EPA believes it will be more practical to focus 
enforcement efforts on kit manufacturers than on installers, given the 
large number of installers in relation to the number of kit 
manufacturers. This option would also allow EPA to distribute the 
responsibility for certification, and warranty and recall between a kit 
manufacturer and installers in a manner consistent with their abilities 
and level of involvement in the conversion process. Public comment was 
generally in support of adopting this option and favored holding 
conversion kit manufacturers responsible for in-use emission 
performance of kit hardware except where performance failures result 
from poor installation.
    A significant disadvantage in this approach is that, though EPA 
could bring an action against either the kit manufacturer or the 
installer for any violation of the Act, as both would be jointly and 
severally liable, factual disputes between the parties regarding the 
actual cause of the emission failure could become a complicating factor 
during an enforcement action. This could lead to lengthy proceedings 
between the involved parties which in turn may delay resolution of 
emission problems and/or the compensation to vehicle owners for in-use 
performance problems covered under vehicle warranty.
    The definition of the ``person who converts'' for the purposes of 
section 247(c) that will be promulgated by today's rule is as follows. 
Any entity (kit manufacturer, installer, or other) may apply for a 
certification for a conversion configuration and receive a federal 
certificate of conformity. This certifier will be considered the 
``person who converts'' under section 247(c) and will assume all 
responsibility as the manufacturer under sections 206 and 207. If the 
conversion is performed by an entity other than the certifier, the 
certifier must provide the installer with instructions for proper 
installation, and the installer must follow these instructions. While 
the certifier is responsible as the manufacturer, if the installer 
installs improper equipment or performs a faulty installation, EPA may 
hold the installer responsible as well under the tampering provisions 
of the Act.
    Under this approach a single party, the certifier, will be 
responsible for warranting the vehicle's emissions performance, and 
liability can easily be assigned for enforcement and warranty purposes 
as under the first option considered in the NPRM. In addition, this 
approach avoids the disadvantages inherent in the first option by 
providing industry with the flexibility to determine which business 
entity is in the best position to provide EPA with the data necessary 
for certification and to assume responsibilities as the manufacturer. 
Based on public comment EPA anticipates that in most cases the kit 
manufacturer will be the certifying party. Since the certifier will 
assume liability for in-use vehicle performance failures that result 
from faulty installations, EPA expects that the certifier will develop 
oversight programs to insure that installations are performed properly 
and will enter into indemnification agreements with installers. Kit 
manufacturers would be wholly within their rights to require such 
indemnification agreements before allowing installers to install their 
kit.
    Thus, the result of holding the certifier solely responsible is 
consistent with the intent of the second option and with public comment 
in that it provides that the responsibility for certification, and 
warranty and recall will be distributed equitably among all those 
responsible for the completion of the final vehicle. Given that under 
the second option, kit manufacturers would have been liable for any 
violation (although EPA would have attempted to enforce against the 
party it believed was responsible), this approach does not 
substantially increase manufacturers' liability. In addition, 
enforcement actions by EPA will be simplified and the resolution of 
warranty claims by vehicle owners will be expedited. EPA believes that 
this approach best satisfies the need expressed in public comment to 
provide strict standards of liability in order to instill consumer 
confidence in the emissions performance of converted vehicles. The 
Natural Gas Vehicle Coalition and the American Gas Association 
encouraged EPA to establish CFV conversion requirements that are 
consistent with requirements for all other conversions. Holding the 
converter solely responsible is also consistent with the approach taken 
in the Gaseous Fuels Final Rule.
    As proposed, the original equipment manufacturer (OEM) will remain 
responsible for the equipment that was on the vehicle before it was 
converted unless the conversion caused the failure of the OEM equipment 
to function in its role in meeting emission standards. EPA believes 
that this is necessary because the proper performance of the conversion 
configuration relies on the OEM's underlying emissions control systems. 
Also, EPA interprets section 247(c) of the CAA to direct that the 
certifier of a CFV conversion will not be required to warrant any 
vehicle for parts or operation existing in the vehicle prior to 
conversion and not affected by the conversion.
    Public comment was mixed on the issue of OEM liability, with some 
commenters agreeing with EPA's proposed approach and others stating 
that the OEM should not be held responsible for post-conversion 
failures of OEM equipment due to concerns over the potential impact 
that converted parts may have on the performance or durability of the 
original parts. EPA recognizes this concern, and will evaluate in-use 
enforcement actions that involve an OEM versus converter liability 
decision on a case by case basis. One indicator that might be used by 
EPA to determine that the OEM was liable for an emission failure of a 
converted vehicle will be an emission-related recall action against 
unconverted OEM vehicles of the same model.
    The CAA does not specify how the useful life period of converted 
vehicles should be measured for the purposes of in-use liability. EPA 
requested comment on this issue, and all of the public comment received 
suggested that the liability of the converter should not extend beyond 
the original useful life of the vehicle. Given that the emissions 
performance of the conversion configuration depends on the underlying 
emissions control systems of the OEM, EPA agrees with this approach. 
Thus, the regulations promulgated by today's rule provide that the 
liability of both the OEM and converter for in-use emission performance 
will extend to the end of the original vehicle/engine's useful life.
    This definition of useful life creates the potential concern that 
fleet operations will satisfy Clean Fuel Fleet Program (CFFP) purchase 
requirements through the conversion of vehicles that have little 
mileage remaining in their useful life. If this occurs to a significant 
degree, CFFP purchase requirements could be met without achieving the 
emissions reductions anticipated from the CFFP. However, EPA does not 
expect fleet operators to satisfy their CFFP purchase requirements in 
this way because of the financial disincentives involved with 
converting such high mileage vehicles and maintaining them beyond their 
useful life solely for the purpose of meeting CFFP purchase 
requirements.
    b. Certification requirements. Dedicated, dual, or flexible fuel 
conversions of light-duty vehicles, light-duty trucks, and heavy-duty 
vehicles/engines may qualify as CFVs. CFV conversions must meet the CFV 
emission standards (LEV, ULEV, or ZEV) prescribed in 40 CFR Part 88 (as 
described in the previous section on light-duty and heavy-duty 
standards) and must also meet the applicable emission standards and 
provisions of Part 86 which apply to all vehicles to the extent they 
are not superseded by the requirements of Part 88. In addition, the 
conversion must comply with the requirements of the regulations being 
promulgated today to qualify as a CFV.
    A separate certification is required for each conversion 
configuration to be used with a given model year vehicle/engine for 
each certifier desiring to perform such a conversion. The conversion 
configuration certification will also be eligible for carryover to 
future model years only if the OEM vehicle/engine is also certified 
under carryover provisions and no changes occurred in the conversion 
configuration. A dual-fuel or flexible fuel conversion must be 
certified according to the general requirements for dual-fuel/flexible 
fuel vehicles discussed in section A.1.a above.
    It should be noted that a certificate issued for a given model year 
expires on December 31st of that calendar year, after which time a 
conversion under that certificate may no longer be performed. A 
conversion for a given model year may be introduced for sale prior to 
January 1st of that year, but in no case may a conversion be introduced 
prior to January 1st of the preceding year.
    i. Small-volume manufacturers certification program--volume limits. 
Consistent with the Gaseous Fuels Rule, today's rule establishes that a 
conversion configuration may be certified according to the Small-Volume 
Manufacturers Certification Program (55 FR 7178, February 28, 1990) and 
that certifiers of conversion configurations will be treated the same 
as small volume manufacturers for this purpose. In the Gaseous Fuels 
NPRM and in the proposal for this rule, EPA proposed that all 
certifiers of conversion configurations be permitted to use the Small-
Volume Manufacturers Certification Program, regardless of the annual 
volume of conversions. Public comment on the gaseous fuels NPRM\33\ was 
received that suggested that the production volume limits that 
currently define a small volume vehicle manufacturer under 40 CFR 
86.092-14 should also apply to parties seeking to certify a conversion 
configuration. The Agency agrees with this comment and believes that 
given the anticipated increase in demand for conversions in response to 
a variety of federal and state programs, it is reasonable to believe 
that existing or future manufacturers may produce more than 10,000 
converted vehicles annually at some point in the future. (No current 
company produces this number of conversions). EPA does not believe it 
would be equitable for certifiers with sales or production of more than 
10,000 converted vehicles to take advantage of the Small Volume 
Manufacturer's Certification Program when that program is not available 
to manufacturers of more than 10,000 new vehicles. EPA believes it 
would be inappropriate to provide relief designed for small volume 
manufacturers to entities that sell or produce more than 10,000 
converted vehicles annually.
---------------------------------------------------------------------------

    \33\Materials relevant to the Gaseous Fuels NPRM have been 
placed in the public docket, No. A-92-14.
---------------------------------------------------------------------------

    Thus, consistent with the approach taken in the Gaseous Fuels Rule, 
EPA believes that the volume limits that currently apply to 
manufacturers seeking to certify under the provisions for small volume 
manufacturers should also apply to parties seeking to certify under the 
CFF program. Small-volume aftermarket conversion certifiers will also 
have the option of using the EPA full certification program prescribed 
in 40 CFR 86.094-23. Aftermarket conversion certifiers with annual 
sales or production volume of more than 10,000 converted vehicles 
should be required to use the EPA full certification program.
    While the sales volume limit in the Small-Volume Manufacturers 
Certification Program applies to sales for a particular model year, 
conversion companies may certify conversion configurations based on 
engine families from older model years. To accommodate this, the 10,000 
vehicle limit will apply to the aggregate total of all vehicles 
converted within a calendar year by a given aftermarket conversion 
certifier at all of its installation facilities without regard to the 
model year of the original vehicles upon which the configurations are 
based. All vehicle conversions within a calendar year will be 
considered when determining whether the 10,000 vehicle limit is 
exceeded including those converted under the CFF program, the Gaseous 
Fuels Rule, and Memorandum 1A. Apart from this difference, all 
provisions related to the sales volume limit under the Small-Volume 
Manufacturers Certification Program would apply (40 CFR Part 86, as 
promulgated by 55 FR 7178, February 28, 1990).
    In this rulemaking, EPA did not propose to set a sales or 
production volume limit for manufacturers wishing to certify according 
to the Small Volume Manufacturers Certification Program (the ``volume 
limit''), nor did EPA receive any comments in this rulemaking 
suggesting that such a volume limit should be used. In this 
circumstance, EPA believes it should not finalize a volume limit 
without first providing the public an opportunity to comment on such a 
limit. Therefore, the portion of today's rule that limits the use of 
the Small-Volume Manufacturers Certification program to those 
certifiers with an annual sales or production volume of 10,000 or fewer 
converted vehicles, shall be effective on November 29, 1994, unless the 
information collection requirements contained in this section have not 
been approved by the Office of Management and Budget (OMB). In that 
case, EPA will publish a timely document in the Federal Register 
delaying the effective date. If, on or before October 31, 1994. EPA 
does not receive notification that someone wishes to file an adverse or 
negative comment on the volume limit portion of the rule, then the 
volume limit portion of the rule will become final and effective 
without further EPA action. On the other hand, if, on or before October 
31, 1994, EPA receives notification that someone wishes to file adverse 
or negative comment on the volume limit portion of the rule, EPA will 
withdraw the volume limit portion of the rule. EPA will then repropose 
the volume limit and go through full notice-and-comment procedures 
before adopting the volume limit. If EPA were to withdraw this portion 
of the rule, all certifiers would be able to certify according to the 
Small-Volume Manufacturers Certification Program until and unless EPA 
issued a final rule that established a different requirement.
    ii. Small-volume manufacturers certification program--durability 
testing. Under the Small-Volume Manufacturer's Certification Program, a 
certifier will be required to demonstrate durability unless the 
certifier is specifically authorized to use another certifier's 
durability data and deterioration factors. If deterioration factors are 
not available, certifiers will be required to use assigned 
deterioration factors from the Small-Volume Manufacturer's 
Certification Program. Current regulations require that assigned 
deterioration factors be determined based on the seventieth percentile 
of industry-wide gasoline-fueled vehicle deterioration factors. Since 
the emission deterioration characteristics of vehicles operating on 
other fuels may be different, EPA may in the future consider through 
rulemaking the use of deterioration factors based on data from vehicles 
using different fuels when developing deterioration factors for such 
vehicles.
    The Small-Volume Manufacturers Program requires manufacturers to 
provide full low mileage emission data which show compliance with new 
vehicle emission standards, but requires complete durability testing 
only for vehicles with unproven technology. Certification through use 
of the small-volume certification program reduces the burden of 
durability testing for small volume manufacturers while providing 
reasonable assurance of emission compliance. Public comment was 
received that to further reduce the burden on small volume 
manufacturers, EPA should accept as proven technology under the Small-
Volume Manufacturers Program any aftermarket conversion technology that 
has been durability tested and certified under CARB's bench testing 
rules\34\ or has been durability tested using on-road mileage 
accumulation.
---------------------------------------------------------------------------

    \34\Sections 2030 and 2031 of Title 13, California Code of 
Regulations.
---------------------------------------------------------------------------

    As specified in 40 CFR 86.092-2, EPA will accept bench or road test 
data that has been demonstrated to be equal or more severe than 
certification mileage accumulation requirements to satisfy the 
requirements for proven technology under the Small-Volume Manufacturers 
Program. Thus, durability test data collected to satisfy CARB's bench 
testing rules or by on-road mileage accumulation could be submitted to 
EPA for review under the Small-Volume Manufacturers Program. EPA 
reserves the right to evaluate the adequacy of such data, and 
acceptance by CARB will not constitute automatic acceptance by EPA. It 
should be noted that EPA requires in-use data to demonstrate that bench 
and on-road durability testing is equal or more severe than 
certification mileage accumulation requirements. For example, actual 
temperature trace data collected during vehicle operation must be used 
to demonstrate that the temperature experienced during bench aging 
testing is at least as severe.
    It should also be noted that EPA will only permit the use of 
provisions in the Small-Volume Certification Program to demonstrate the 
durability of technology that is currently used in automotive 
applications. For technology that has not previously been used in 
automotive applications in certified vehicles the full mileage 
accumulation durability requirements will be required.
    iii. Other provisions. EPA is also establishing other requirements 
with which certifiers must comply. For vehicles converted under today's 
regulations, the certifier must list each installer which produces CFV 
conversions on the certification application for that CFV conversion. A 
revised list must be submitted as new installers are authorized to 
produce the conversion configuration. Because the certifier will be 
treated as the manufacturer for purposes of sections 206 and 207 and 
related enforcement provisions, EPA anticipates that certifiers will 
enter into legally binding agreements with installers to ensure that 
installers are exercising due care in performing the installation and 
meeting other obligations under today's regulations.
    In cases where installations of conversion configurations are 
performed by parties other than the certifier, EPA envisions that the 
certifier will enter into legally binding agreements with said 
installers. To facilitate EPA enforcement actions each installer must 
be listed on the certificate filed with EPA at the time of 
certification for each conversion configuration, and the certifier must 
submit a revised list to EPA when new installers are added. The 
certifier is responsible for compliance with any applicable production 
line testing requirements (e.g., Selective Enforcement Auditing in 
federal certification) regarding the availability of vehicles and 
emissions testing facilities at the certifier's facilities and at those 
of the certifier's installers.
    Identification of a converted CFV as a LEV, ULEV, or ZEV will be 
based on the information provided to EPA at the time of the 
certification of the conversion configuration. To aid in their 
identification, a converted CFV must be labeled as such on the engine 
labels. Consistent with other EPA certification programs, records are 
required to be maintained of the tests performed to support the 
certification application, and these records must be made available to 
EPA enforcement personnel upon request. Certifiers must maintain 
records of each vehicle converted including the make of the vehicle, 
vehicle identification number, serial number of the conversion kit, 
date and location of the conversion, and the results of the post-
installation emission test discussed in the following section.
    c. Conversion installation quality test. i. Background. The CFV 
emission standards are considerably more stringent than conventional 
standards, and converted vehicles certified as CFV's will be eligible 
to earn marketable purchase and emission credits and to receive TCM 
exemptions as CFVs in the Clean Fuel Fleet program (LEVs, ULEVs, ZEVs 
or ILEVs). In the NPRM EPA requested comment on whether additional 
requirements are necessary to ensure compliance with the CFV standards 
given that the conversion industry historically has consisted of a 
large number of relatively small businesses that have not previously 
faced specific emissions performance requirements. Specifically, EPA 
requested comment on whether it would be useful to require a post-
installation test for converted vehicles to assess the quality of the 
conversion installation from an emissions perspective. Such a test is 
required by the California Air Resources Board in its regulation of 
alternative fuel retrofit systems.\35\
---------------------------------------------------------------------------

    \35\Title 13, California Code of Regulations, Sections 2030 and 
2031.
---------------------------------------------------------------------------

    Of those commenting on this subject, all expressed concern 
regarding reports of poor emissions performance of some converted 
vehicles presently in use and stated that EPA should promulgate strict 
standards to instill consumer confidence in the emissions performance 
of CFVs. There was support for the EPA concept of a post-installation 
test requirement to help identify poor installations or defective 
conversion kit hardware that would otherwise result in high emissions.
    ii. Summary of today's action. EPA believes that the certification 
program and warranty and liability provisions promulgated by today's 
notice address many of the concerns noted in the public comments and 
will provide a fair degree of confidence that the in-use emissions 
performance of CFVs will remain within the applicable standards. EPA 
believes that these provisions, coupled with production line and in-use 
testing programs, will adequately ensure that installations by larger 
conversion manufacturers that produce or sell more than 10,000 
converted vehicles per year will be performed properly and that the 
emissions performance of these vehicles will meet expectations. 
However, EPA believes that it is uncertain whether smaller conversion 
manufacturers will have the resources and experience to institute the 
necessary quality control measures. Therefore, to provide greater 
assurance that conversion hardware is installed properly, EPA will 
require that each vehicle converted by a manufacturer that sells or 
produces less than 10,000 converted vehicles per year undergo a post-
installation test to assess the quality of the installation from an 
emissions perspective before it may be sold as a CFV or is eligible for 
special benefits available under the CFF program.\36\ For vehicles that 
fail the post-installation test, the certifier will be required to take 
such remedial actions as are necessary to ensure compliance, and to 
retest each vehicle before it is sold as a CFV.
---------------------------------------------------------------------------

    \36\These special benefits include potential eligiblity for a 
purchase credit in the fleet program and exemptions from some 
transportation control measures (TCMs). Converted vehicles could 
also potentially qualify as Inherently Low-Emissions Vehicles 
(ILEVs) under the program promulgated in March 1, 1993 (58 FR 
11888), and receive expanded TCM exemptions. Finally, converted 
vehicles could generate mass emission credits for trading under 
state programs developed as part of the Federal Economic Incentives 
Program under the Clean Air Act (58 FR 11110, February 23, 1993).
---------------------------------------------------------------------------

    Another point that supports the need for a post-installation test 
for small-volume conversion manufacturers is the anticipated difficulty 
in conducting production line emissions testing at small manufacturers' 
facilities. In such cases, small production volumes will make the 
necessary statistical sampling difficult to achieve, and such 
manufacturers will not generally have on-site test equipment capable of 
running FTP testing. Due to these difficulties, EPA will not be able to 
rely on production line testing of small manufacturers to the same 
degree as it will for larger volume manufacturers. Requiring post-
installation testing of small-volume manufacturers helps to compensate 
for this limitation.
    EPA proposed to allow manufacturers that convert fewer than 300 
vehicles per year special exemptions from the post-installation test 
requirements when access to inspection and maintenance test facilities 
is not available in the area where the production facility for 
converted vehicles is located.\37\ EPA believes that it is unlikely 
that manufacturers will be located in areas without access to such 
facilities. However, inspection and maintenance testing is not 
available for heavy duty vehicles in all areas, and the alternate two-
speed idle post-installation test may represent a significant burden 
for small manufacturers. Therefore, in cases where inspection and 
maintenance testing is not available, manufacturers which sell or 
produce fewer than 300 vehicles in a calendar year may request an 
exemption from EPA from the post-installation test requirement. 
Included in the request for exemption must be the estimated number of 
vehicles and engines that the manufacturer will convert in the calendar 
year, a description of any emissions related quality control procedures 
used, and sufficient information to demonstrate that the post-
installation testing requirement represents a severe financial 
hardship. Within 120 days of receipt of the application for exemption, 
the Administrator will notify the applicant either that an exemption 
has been granted, or that sufficient cause for an exemption has not 
been demonstrated and that all of the manufacturer's vehicles are 
subject to the post-installation testing requirement.
---------------------------------------------------------------------------

    \37\The sugeested guidelines for the post installation test were 
placed in Section II-A of the public docket.
---------------------------------------------------------------------------

    If granted, an exemption from the post installation testing 
requirement would apply only to the manufacturer's vehicles which have 
the conversion installations performed outside of a nonattainment area 
with an inspection and maintenance testing program that has a test for 
CO emissions. A small manufacturer that is exempted from the post-
installation test requirement could sell untested converted vehicles 
otherwise certified as CFVs. These vehicles could be used by covered 
fleet owners in compliance with CFFV purchase requirements, would be 
eligible for temporal TCM exemptions, would be eligible to participate 
in the CFF purchase credit program, and could qualify as ILEVs.
    EPA considered allowing the post-installation test to be 
alternately conducted by the purchaser to provide additional 
flexibility for those manufacturers who may not have access to 
inspection and maintenance test facilities. Upon further evaluation of 
this option, EPA believes that it is unworkable given that it would 
create a situation where the requirements for producing a certified 
vehicle would not be complete until after the manufacturer transferred 
the title of the converted vehicle to the ultimate purchaser. To be 
eligible as a CFV, each vehicle emission control information label\38\ 
must state that it is a clean fuel vehicle (indicating that a post-
installation test was performed as required). The transfer of the 
vehicle title before all of the criteria for certification of the 
converted vehicles are met would raise doubts as to the validity of 
such a label given that a vehicle purchaser could fail to perform the 
required test.
---------------------------------------------------------------------------

    \38\See 40 CFR 86.085-35 regarding additional labeling 
requirements.
---------------------------------------------------------------------------

    Public comment largely supported the use of a CO emissions test 
such as that discussed in the NPRM for the post-installation emission 
evaluation. Commenters agreed that the approach proposed by EPA would 
be useful in uncovering gross installation errors and would provide an 
additional level of assurance that CFV emission standards will be met 
in-use. EPA believes that the simple requirements of such a CO 
emissions test will fulfill the goal of uncovering gross installation 
errors without imposing a significant burden on small-volume 
manufacturers.\39\ It should be noted that this test is intended as a 
screening mechanism only and may not be as discriminating of emissions 
levels as tests performed for inspection and maintenance purposes or a 
full Federal Test Procedure.
---------------------------------------------------------------------------

    \39\ibid.
---------------------------------------------------------------------------

    Two options will be available to satisfy the post-installation test 
requirement. Under both options, a separate test would be required for 
dual-fuel vehicles for each fuel on which the converted vehicle is 
capable of operating. Under the first option, a CO emissions test could 
be performed using the same equipment, procedure, and pass/fail 
criteria as that used under the inspection and maintenance testing 
program in the area where the testing is conducted. This test could be 
performed at an official inspection and maintenance facility, by the 
manufacturer, or by the manufacturer's contractor. If pass/fail 
criteria specific to the converted vehicle's operation on alternative 
fuel are not available the pass/fail criteria applicable to the 
vehicle's operation on gasoline prior to conversion will be used. In 
cases where inspection and maintenance testing procedures are not 
available the second post-installation testing option described below 
must be used. The second post-installation testing option may also be 
used in areas where inspection and maintenance facilities are available 
at the manufacturer's discretion.
    In the NPRM EPA discussed adopting a single-speed idle test per 40 
CFR 85.2212 as an alternative to the inspection and maintenance testing 
facilities procedure described above. Since the publication of the 
NPRM, EPA has further evaluated the capabilities and limitations of 
potential post-installation test procedures and has determined that 
measuring CO emissions on an existing two-speed idle test\40\ would 
provide greater assurance of properly identifying gross installation 
errors while limiting the potential of false failures as compared to a 
single-step idle test. EPA believes that the minor change from a 
single-speed to a two-speed idle test will not add significantly to the 
cost and difficulty of post-installation testing.\41\ The California 
Air Resources Board's regulation of alternative fuel retrofit systems 
also requires that a two-speed idle test be performed as part of a 
post-installation vehicle evaluation.\42\ For these reasons, EPA is 
adopting the two-speed idle test of CO emissions as the required post-
installation test when an inspection and maintenance test procedure is 
not available.
---------------------------------------------------------------------------

    \40\The two-speed idle test (40 CFR 85.2215, ``EPA 91'') is 
described in the Short Test Emission Regulations Final Rule, 58 FR 
58405-58407.
    \41\The two-speed idle test requires a tachometer and a special 
multiple emission measurement computer software algorithm that are 
not required for the single-speed idle test. However, many emissions 
testing facilities will already have access to such equipment and 
EPA believes the cost to those who may need to acquire the 
additional equipment to be less than $300.
    \42\Title 13, California Code of Regulations, Sections 2030 and 
2031.
---------------------------------------------------------------------------

    A two-speed idle test is required to be performed on the 
certification vehicle during certification testing to establish 
reference values (at idle and 2500 rpm) against which post-installation 
test results may be compared. EPA considered requiring that each 
vehicle's post-installation test CO emissions measurement be below the 
reference value established at the time of certification plus 20 
percent of the reference value. The comment received from the public on 
the post-installation test pass/fail criteria indicated that the CO 
emissions of some CFVs may be so low as to make the use of a cut point 
at this level impractical given the measurement accuracy of the test. 
One commenter suggested an alternative cut point of the CO 
certification reference value plus 0.4 percent CO by volume.
    This cutpoint is very similar to the 0.5 percent CO standard 
promulgated for the certification short test (CST) two-speed idle 
procedure for gasoline-fueled vehicles (58 FR 58382-58440, November 1, 
1993). The choice of the CST standard was based on a review of data 
collected from inspection and maintenance facilities that employ a two-
speed idle test which indicate that production line gasoline powered 
vehicles from non-pattern failure engine families could easily meet a 
0.5 percent CO standard.\43\ Since the CO emissions of CFVs can be 
expected to be no greater than, and in many cases are expected to be 
less than, those from vehicles meeting Tier 1 and Tier 2 standards, EPA 
believes that properly manufactured CFVs can also easily meet a 0.5 
percent CO standard and will therefore not have difficulty in meeting a 
standard of 0.4 percent plus the certification reference value (the sum 
of which will likely total more than 0.5 percent in most instances). 
Based on the above discussion, EPA agrees that a cut point of the CO 
certification reference value plus 0.4 percent CO by volume provides 
reasonable assurance that gross installation errors will be discovered 
while sufficiently limiting the probability of false test failures, and 
therefore will adopt this pass/fail criteria for the two-speed idle 
post-installation test.
---------------------------------------------------------------------------

    \43\Sierra Research Inc., ``Analytical Support for Selection of 
Certification Short Test Standards'', Report No. SR93-03-0, EPA Air 
Docket #A-91-21, item IV-A-01, March 4, 1993.
---------------------------------------------------------------------------

C. The California Pilot Test Program

    The Pilot program will be federally administered in the State of 
California and will require vehicle manufacturers to sell a minimum 
number of clean-fuel LDVs and LDTs in California starting in MY 1996. 
Unlike the CFF program, the Pilot program's requirements do not include 
HDVs. The CAA gives EPA several responsibilities with regard to the 
Pilot program. EPA has already implemented a credit program for vehicle 
manufacturers (57 FR 60038, December 17, 1992; 40 CFR 88.304-94) and 
today's action covers vehicle sales requirements and state opt-in 
provisions. The light-duty vehicle and truck CFV emission standards 
applicable to vehicles under both the Pilot and CFF program are 
discussed above under section A.1.a.
1. Sales Requirements
    a. CAA Requirements. Section 249(c) of the CAA requires EPA to 
promulgate regulations requiring that ``[c]lean fuel vehicles shall be 
produced, sold, and distributed (in accordance with normal business 
practices and applicable franchise agreements) to ultimate purchasers 
in California (including owners of covered fleets . . .) in numbers 
that meet or exceed'' 150,000 in MYs 1996 through 1998 and 300,000 in 
MYs 1999 and later. However, the CAA does not direct EPA on how to 
distribute these sales requirements among vehicle manufacturers. 
Section 249(d) allows EPA to make available credits for use in the 
``fulfillment of [a] manufacturer's share of the requirements'' of the 
Pilot program. As mentioned earlier, EPA has established a credit 
program that allows manufacturers to use credits to meet the sales 
requirements of the Pilot program.
    b. CARB requirements. CARB's Low Emission Vehicle (LEV) Program 
will require the sale of vehicles meeting more stringent exhaust 
emission levels by establishment of (1) a decreasing fleet average NMOG 
emission requirement (for manufacturers of vehicles up to 6,000 lbs 
GVWR) and (2) through direct sales percentage requirements (for 
manufacturers of vehicles from 6,000 to 14,000 lbs GVWR). (Note: The 
Pilot program and the California LEV program will overlap only for 
those vehicles up to 8,500 lbs GVWR, as the Pilot program does not 
cover vehicles beyond this GVWR.)
    The CARB program will require each manufacturer of vehicles up to 
6,000 lbs GVWR to sell LEVs in each of two LVW subclasses 
(3750 and 3750-5750 lbs LVW) . Each manufacturer will need 
to sell a sufficient number of LEVs such that the manufacturer's 
California fleet average NMOG exhaust emission value is less than or 
equal to a fleet average NMOG exhaust emission requirement for the 
corresponding model year, vehicle type, and LVW subclass. In addition 
to meeting the fleet average NMOG requirement, each manufacturer must 
also sell a required minimum percentage of ZEVs starting in the 1998 
MY. Also beginning with MY 1998, CARB requires that manufacturers of 
medium-duty vehicles (i.e., trucks from 6,001 to 14,000 lbs GVWR) 
certify enough such vehicles to CARB's emission standards such that the 
manufacturer's fleet consists of a minimum percentage of ULEVs.
    The projected sales of vehicles in California resulting from the 
CARB LEV program are likely to far exceed the sales of CFVs under the 
Pilot program. Based on the projected sales of only LDVs and LDTs under 
3,750 LVW in 1996 and 1999, sales under the CARB LEV program are 
expected to reach about 200 and 400 percent of the Pilot program CFV 
sales requirements, respectively. Unless and until EPA adopts 
California standards for CFVs, CARB LEVs which do not meet federal CFV 
requirements could not be counted in the Pilot program (although 
vehicles meeting CFV requirements will likely meet the exhaust emission 
requirements of the CARB LEV program).
    c. California Pilot Program sales requirements--i. ``Sales'' 
definition. CAA Section 249(c)(1) requires that ``[c]lean fuel vehicles 
be produced, sold, and distributed to ultimate purchasers in 
California''. EPA is today establishing this requirement as applying at 
the first point of sale from the manufacturer to the dealer or ultimate 
owner. Until such time as EPA formally changes its interpretation of 
section 249(c), manufacturers covered by the Pilot program may not use 
sales of converted vehicles to meet the sales requirements of the Pilot 
program. Similarly, manufacturers of conversions are not subject to the 
sales requirements. As was stated in the NPRM for this rule, nothing in 
section 249(c)(1) requires that conversions be part of the CFV sales 
requirements. Furthermore, section 247 sets forth requirements 
applicable to conversions and states that conversions to CFVs that meet 
those requirements may be used to satisfy the purchase requirements of 
the federal CFF program; however, there is no mention of the Pilot 
program.
    In light of the evolving regulatory framework affecting 
conversions, culminating with today's provisions for CFV conversions, 
EPA is reconsidering whether it is appropriate for manufacturers of CFV 
conversions to participate in the Pilot program. This reconsideration 
is largely due to the fact that manufacturers of CFV conversions under 
today's rule will be treated like vehicle manufacturers for purposes of 
compliance with EPA emission regulations. EPA may propose by regulation 
in the future to include manufacturers of conversions in the Pilot 
program. EPA will solicit public comment on this issue at that time.
    ii. Manufacturer sales distribution. Although CAA section 249 
clearly indicates that vehicle manufacturers are responsible for 
meeting sales requirements, it does not cover how the sales 
requirements are to be allocated among manufacturers. Sales under the 
California LEV Program are likely to far exceed the sales requirements 
set forth in the Pilot program and, since the vehicles for the two 
programs will be identical or at least very similar, the Pilot program 
requirements will likely be easily satisfied. As a result, any method 
for allocating sales requirements among manufacturers will have little 
impact.
    Two options for determining a manufacturer's individual sales 
allocation were presented in the NPRM. In both options, an equation was 
used to calculate a manufacturer's share of required CFV sales based on 
the share of that manufacturer's vehicle sales in the State of 
California during the previous model year. Under Option 1, EPA would be 
responsible for calculating the individual sales responsibilities; in 
the second option, manufacturers would perform the computation. The 
primary concern of those commenters who responded was that only 
California vehicle sales be considered since the Pilot program was to 
be implemented in California. The proposed regulations were written 
based on the second option and it is this option that is finalized 
today.
    A manufacturer's share of the total CFV sales requirement in any 
given year (150,000 CFVs annually for 1996-1997; 300,000 CFVs annually 
thereafter) will be based on the ratio of the manufacturer's sales to 
all sales in California according to the following equation:

RMS = (MS/TS)  x  TCPPS

where:

RMS = a manufacturer's required sales in a given model year.
MS = a manufacturer's total LDV and light LDT sales in California two 
model years earlier than year in question (for MY 1996 and 1997 RMS 
calculations).
    = a manufacturer's total LDV and light LDT sales in California two 
model years earlier than year in question (for MY 1998 and later RMS 
calculations).
TS = total LDV and light LDT sales in California of all manufacturers 
two model years earlier than the year in question (for MY 1996 and 1997 
RMS calculations). Sales of manufacturers which meet the criteria of 
(d) of this paragraph will not be included.
    = total LDV and light LDT sales in California of all manufacturers 
two model years earlier than the year in question (for MY 1998 and 
later RMS calculations). Sales of manufacturers which meet the criteria 
of (d) of this paragraph will not be included.
TCPPS = Pilot program CFV sales requirement for the year in question 
(either 150,000 or 300,000).

Each manufacturer will use this equation to determine its individual 
CFV sales requirement. The two factors, MS and TS, will be based on 
vehicle sales two MYs from the year in question (e.g, for MY 1996, a 
manufacturer will use sales data from MY 1994). In the NPRM, EPA 
requested comment as to whether a manufacturer's share of required CFV 
sales should be calculated based on sales in the previous model year or 
sales two model years prior. Commenters did not address this issue. EPA 
believes that using MY sales data that is two years prior, as opposed 
to only one year, is not likely to reflect the most recent market 
changes and will also allow new manufacturers a two year delay before 
they are factored into the equation; however, it will provide 
manufacturers with sufficient time for planning their CFV production 
and will also require less administration and oversight on the part of 
both EPA and manufacturers. EPA believes that the CFV sales 
distribution that will result among manufacturers will be fair and 
equitable in light of these advantages. Therefore, EPA is finalizing 
the requirement that California sales figures from two model years 
earlier be used by manufacturers to calculate required CFV sales 
shares.
    Since heavy LDT standards under the Pilot program are not effective 
until MY 1998, a manufacturer's share of required sales for MYs 1996 
and 1997 will be based on LDV and light LDT sales only. All LDV and LDT 
sales will be used once the CFV standards for heavy LDTs are in effect 
beginning with MY 1998.
    iii. Exemptions for small volume manufacturers. EPA proposed that, 
for the Pilot program, small volume manufacturers of clean-fuel LDVs 
and LDTs would not have to fulfill a calculated share of the required 
CFV sales requirements until the 2001 MY. EPA is finalizing this 
requirement today. However, in 2001 and subsequent model years, no 
further distinction will be made between small volume manufacturers and 
larger manufacturers for purposes of the Pilot program.
    As defined in the CARB LEV program, a small volume manufacturer has 
average annual vehicle sales less than or equal to 3,000 vehicles based 
on the consecutive three-year period 1989-1991. If a small volume 
manufacturer exceeds this average level, they are then subject to the 
LEV program fleet average NMOG requirements applicable to larger 
manufacturers beginning four model years after the last of the 
consecutive three model years. Larger manufacturers with average sales 
that fall below the 3,000 unit threshold over any consecutive three-
year period qualify as small volume manufacturers beginning with the 
following model year.
    Due to the many parallels between the Pilot program and the CARB 
LEV program, EPA continues to believe it is logical that the ``small 
volume manufacturer'' definition under the Pilot program should be as 
similar as possible to the definition under the CARB LEV program. 
Several commenters also supported consistency between the two programs. 
Therefore, for purposes of the Pilot program, EPA is defining ``small 
volume manufacturer'' as one whose average annual LDV and LDT sales in 
California are less than or equal to 3,000 units during a consecutive 
three-year period beginning no earlier than 1993. (This accommodates 
new manufacturers who may have less than three consecutive years of 
sales but which do not exceed the 3,000 threshold.) And, like CARB, EPA 
is also granting leadtime to small volume manufacturers who exceed the 
average annual level. A manufacturer who qualifies as a small volume 
manufacturer for the first year of the Pilot program (i.e., in model 
year 1996) will not have to fulfill a CFV sales requirement until model 
year 2001. As proposed in the NPRM and finalized here today, beginning 
with model year 2001, all manufacturers, regardless of average annual 
sales, will have to calculate and fulfill their CFV sales share based 
on the formula above. This five-year delay is intended to encourage the 
viability of small volume manufacturers whose limited capital and 
resources do not allow them to comply as easily. It is also intended to 
provide consistency with the CARB LEV program and minimize 
adminstrative burden.
    iv. Sales reporting and enforcement of requirements. In order for 
EPA to administer and enforce the sales requirements of the Pilot 
Program, manufacturers will have to report their California vehicles 
sales to EPA. Currently, there is a requirement for manufacturers to 
submit sales data to EPA in Code of Federal Regulations (CFR), 40 CFR 
86.085-37); however, the reporting requirements do not distinguish 
between California vehicle sales and sales throughout the U.S. Such a 
distinction is necessary for purposes of the Pilot Program. Therefore, 
EPA will require that manufacturers, in addition to complying with the 
requirements of 40 CFR 86.085-37, report the number of vehicles sold 
only in California.
    If a manufacturer fails to meet its required sales volume, EPA 
believes that it has the authority to penalize the manufacturer to the 
full extent allowed for such an infraction under CAA section 205(a). In 
accordance with this section, a $25,000 penalty will be levied on a 
manufacturer in the event of a failure to meet the prescribed sales 
requirements for certified Pilot Program vehicles.
2. State Opt-In Program
    CAA section 249(f) requires that EPA promulgate regulations which 
will (1) allow states other than California to encourage the sale of 
CFVs in their state which are sold in California under the Pilot 
program and (2) allow such states to use incentives to promote the sale 
and use of CFVs and clean alternative fuels. States opting into the 
program may voluntarily decide to implement a clean fuel vehicle 
incentive program as described in this Final Rule.
    Any state that contains all or part of any ozone nonattainment area 
that is classified under subpart D of Title I as serious, severe, or 
extreme can choose to submit a revision of their applicable state 
implementation plan (SIP) under part D of Title I and section 110. A 
state's SIP shall include incentives for the sale and use of CFVs and 
for the production and distribution of clean alternative fuels such as 
those that are required to be produced, sold, and distributed in the 
State of California. These SIP provisions shall come into effect at 
least one year after the state has notified vehicle manufacturers and 
fuel suppliers of the plan provisions.
    As mentioned above, section 249(f) directs EPA to establish the 
voluntary opt-in program under which states may use incentives to 
promote the sale and use of CFVs and clean alternative fuels. Examples 
of incentives listed in section 249(f) include higher registration fees 
for non-CFVs, financial incentives, exemptions from high occupancy 
vehicle or trip reduction requirements, and parking preferences. 
Today's rule establishes these incentives for use by states under a 
section 249(f) opt-in provision. States may develop additional 
incentives, as well, subject to EPA approval via the SIP approval 
process.
    Section 249(f) prohibits a state opting into the program from 
including sales or production mandates for CFVs or clean alternative 
fuels in its SIP revision opting into the Pilot program. In addition, 
the SIP revision must provide that vehicle manufacturers and fuel 
suppliers will not be penalized or subject to sanctions for failing to 
produce or sell CFVs or clean alternative fuels.

D. Technical Amendments to CFF Definitions and Other Clarifications

1. Explanatory Language in the Preamble of the Final Rulemaking for 
Clean Fuel Fleet Definitions and General Provisions Is Clarified in 
Four Areas, as Described Below
    a. The role of fleet payment methods in establishing whether fleet 
vehicles are centrally fueled. In the description of ``contract 
fueling'' as it pertains to the definition of ``centrally fueled'' 
(section III(3)(a) of the Definitions final rule preamble, 58 FR 64679, 
December 9, 1993), EPA indicated that the nature of the method of 
payment used by a fleet operator for fuel purchases might be useful for 
determining whether the fueling arrangement constituted ``central 
fueling.'' In its description, EPA stated that ``retail credit cards'' 
would not represent central fueling arrangements while ``commercial 
fleet credit cards'' would represent such arrangements.
    Since the time of the final rule, parties representing fleet 
leasing companies and independent fuel marketers informed the Agency 
that the emerging business in broad national fleet fueling cards 
requires further clarification of this issue. These parties have 
indicated that the use of such cards, which generally include a wide 
network of fuel providers nationwide and an administrative system for 
monitoring fuel purchases, do not necessarily indicate that fueling is 
occurring at a central facility or set of facilities. Similarly, the 
use of retail credit cards does not prove that fueling is not occurring 
in a centralized way. EPA believes there is value in these 
observations, and the Agency will no longer recommend that states look 
to the payment method as a key indicator of the presence or absence of 
central fueling. Instead, EPA recommends that states look at the actual 
refueling patterns used by fleet operators. When an individual fleet's 
fueling is limited to a single location or a prescribed and identified 
set of locations within the operational range of the vehicles, EPA 
believes this situation represents central fueling, regardless of the 
method of payment for the fuel. As the implementation of state fleet 
programs evolves, EPA may consider further clarification of this issue, 
by rule or by guidance.
    b. Clarification of the determination of whether a fleet is 
``capable of being centrally fueled''. In the preamble of the 
Definitions final rulemaking, EPA described a preferred technique for 
determining fleets capability of being centrally fueled, based on the 
number of miles from trips that could be centrally fueled. Because of 
an editorial oversight, portions of section III(4)(a)(i) and (4)(c) of 
the Definitions final rule preamble may be misleading (58 FR 64679, 
December 9, 1993). EPA wishes to clarify that the number of miles from 
trips that could be centrally fueled should be tabulated only from 
those trips that do not require the fleet vehicle to travel outside of 
its operational range (i.e., the distance a vehicle is able to travel 
on a round trip with a single refueling). This clarification makes the 
method of calculation consistent with the stated intent of the overall 
determination procedure.
    c. Correction to reference in the definition of ``owned or 
operated, leased, or otherwise controlled by such person''. The 
definition of ``owned or operated, leased, or otherwise controlled by 
such person'' in Sec. 88.302-94 of the Definitions final rule 
regulations may be misleading (58 FR 64679, December 9, 1993). 
Paragraph (2) within this definition refers to the definition of 
``control'' as being in paragraph (c) of Sec. 88.302-94; however, the 
definition of ``control'' is not designated as paragraph (c). Thus, EPA 
wishes to clarify that in the definition of ``owned or operated, 
leased, or otherwise controlled by such person'' it intended to refer 
to the definition of ``control'' in Sec. 88.302-94.
    d. Correction to the instructions for the promulgation of 
Sec. 88.308-94 of the regulations, entitled ``Programmatic requirements 
for clean-fuel fleet vehicles''. Because of an editorial error, the 
definition of ``multi-state nonattainment areas'' (Sec. 88.308-94) in 
the Definitions final rule regulation (58 FR 64679, December 9, 1993) 
was described as an amendment to a previously promulgated section 
instead of a new definition to be promulgated in a new section of part 
88. Thus, EPA wishes to clarify that it intended to add a new 
Sec. 88.308-94 to 40 CFR part 88.
2. Harmonization of ILEV Exhaust Standards and Test Procedures With the 
CFV Provisions
    In EPA's final rule on ``Clean Fuel Fleet Credit Programs, 
Transportation Control Measure Exemptions, and Related Provisions'' (58 
FR 11888, March 1, 1993), Inherently Low-Emission Vehicle (ILEV) 
emission standards and test procedures were established. The exhaust 
emission standards were published in tables C93-6, C93-6.1, and C93-
6.2.
    With the finalizing of exhaust emission standards and test 
procedures in today's rule, the earlier treatment of ILEV standards and 
test procedures for exhaust emissions are now obsolete. Technical 
revisions of the ILEV regulations are included in today's rule. These 
changes have the effect of focusing ILEV exhaust requirements on those 
of other CFVs, while the special ILEV evaporative emissions standard 
and test procedure remains unchanged.

E. Display of OMB Control Numbers

    EPA is also amending the table of currently approved information 
collection request (ICR) control numbers issued by OMB for various 
regulations. This amendment updates the table to accurately display 
those information requirements contained in this final rule which have 
already been approved. This display of the OMB control number and the 
subsequent codification in the Code of Federal Regulations satisfies 
the requirements of the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.) and OMB's implementing regulations at 5 CFR 1320.
    The ICR was previously subject to public notice and comment prior 
to OMB approval. As a result, EPA finds that there is ``good cause'' 
under section 553(b)(B) of the Administrative Procedure Act (5 U.S.C. 
553(b)(B)) to amend this table without prior notice and comment. Due to 
the technical nature of the table, further notice and comment would be 
necessary. For the same reasons, EPA finds that there is good cause 
under 5 U.S.C. 553(d)(3).

F. Regulatory Impacts

    The economic and environmental impacts of this rulemaking are only 
from the provisions pertaining to the Clean Fuel Fleet Program since 
the impacts of the California Pilot Program will most likely be 
superseded by the projected effect of the CARB LEV program and other 
federal requirements and should not create additional economic or 
environmental impact. EPA has prepared a Regulatory Impact Analysis 
(RIA) that evaluates the program costs, potential program benefits, and 
cost effectiveness of the Clean Fuel Fleet Program. As described in the 
proposal, included here is a summary of the results of those analyses. 
The program costs and potential benefits related to light-duty vehicles 
and trucks are evaluated separately from those of heavy-duty vehicles 
(above 8,500 lbs GVWR) because the CFV standards and the technology 
used to meet them are very different for the light-duty and heavy-duty 
classes.
1. Program Costs
    a. Light-duty vehicles and light-duty trucks. As described in the 
proposal, to estimate the potential costs of clean-fuel LDVs and LDTs, 
EPA has developed two scenarios representing different assumptions 
about the future use of nonconventional fuels. Scenario I assumes no 
major changes from conditions that exist today. Scenario II assumes the 
emergence of some driving force that would encourage or require OEMs to 
offer more non-petroleum fuel/vehicle combinations.
    Using the above scenarios, the incremental acquisition and 
operating costs, coupled with estimates of the number of CFVs 
operating, can be used to estimate an overall cost of the fleet program 
for LDVs and LDTs. The incremental acquisition cost is the amount a 
fleet owner must pay for a CFV above the cost of a comparable 
conventional vehicle, and different incremental costs are associated 
with each vehicle/fuel type. As in the proposal, EPA estimates an 
incremental acquisition cost of $170 for vehicles fueled with 
reformulated gasoline, $300 for alcohol-fueled vehicles, $2,000 for 
gaseous-fueled vehicles, and $3,300 for electric vehicles.
    Another fleet program cost is incurred in the operation of clean-
fuel vehicles. Estimated operating costs, for all of the vehicle/fuel 
combinations, are based solely on fuel costs, since no additional 
maintenance is expected for CFVs above their conventional counterparts. 
As in the proposal, compared to conventional gasoline equivalent cost 
of $1.31 in the year 2000, the projected gasoline equivalents for the 
same year are as follows: $1.36 for reformulated gasoline, $1.12 for 
alcohol fuels, $1.09 for CNG, $0.62 for LPG, and $1.12 for electricity. 
Thus, all fuels except for reformulated gasoline represent a cost 
savings when compared to the estimated price of conventional gasoline 
in the year 2000.
    The incremental costs for new CFV acquisitions and their operation 
were summed for each future year between 1998 and 2010 to yield an 
estimated total annual cost of the fleet program for LDVs and LDTs. The 
present value costs under Scenario I for the years 1998 through 2010 is 
almost $709 million in 1998 dollars. Under Scenario II, the present 
value of the potential costs in years 1998 through 2010 is estimated at 
$673 million in 1998 dollars. (In contrast to the proposal, the 
discount rate used in this analysis is 7 percent instead of 10 percent 
as recommended by EPA's Office of Policy, Planning, and 
Evaluation.)\44\ Projected annual costs for each of the years from 1998 
to 2010 are presented in the RIA. This analysis does not take into 
account infrastructure costs. EPA has examined the sensitivity of the 
projected incremental acquisition and operating costs results in the 
RIA to other reasonable estimates of future acquisition and operating 
costs and concluded that the impact on the cost effectiveness is not 
major.
---------------------------------------------------------------------------

    \44\EPA Office of Policy, Planning and Evaluation, ``OMB 
Presentation and Discussion on OMB Circular A-94 Regarding Discount 
Rates and Benefit-Cost Analysis,'' Memorandum from Brett Snyder to 
Addressees, March 23, 1993.
---------------------------------------------------------------------------

    b. Heavy-duty vhicles. As described in the draft RIA for the 
proposal, incremental acquisition costs were estimated for conventional 
gasoline and diesel HDVs expected to be capable of meeting CFV 
standards through the use of technological changes rather than the use 
of clean fuels themselves. However, possible manufacturing process 
changes or slightly higher component costs may be incurred when 
adapting these technologies to HDEs. The analysis projects that these 
changes could increase the variable production cost of heavy-duty 
gasoline engines by $50.00 and heavy-duty diesel engines by about 
$100.00. Factoring in a 29 percent overhead and profit mark-up would 
bring the estimated increase in manufacturing costs to $65 and $129 per 
engine for gasoline and diesel engines respectively. In addition to 
this increased manufacturing/component cost per engine, consumers will 
also have to pay for the amortized cost of research and development and 
engine certification, as well as retail price mark-up. Manufacturers 
are expected to recover the development costs over the first five years 
of engine sales. Thus, using a more conservative range of projected 
costs than in the proposal, the total incremental acquisition cost is 
estimated at $246 more per gasoline engine and $477 more per diesel 
engine for the first five years of the program as compared with engines 
used in conventional heavy-duty vehicles. During the remaining years of 
the program, the total incremental acquisition cost is estimated at 
$178 more per gasoline engine and $338 more per diesel engine.
    Gasoline- and diesel-fuel HDVs meeting CFV standards are not 
expected to have added fuel or maintenance costs compared to 
conventional HDVs. However, EPA expects that approximately 10 percent 
of all fleet HDVs will need to be operated on reformulated gasoline in 
an area where reformulated gasoline is not routinely supplied. Thus, as 
in the proposal, an incremental fuel cost of five cents per gallon is 
applied to approximately 10 percent of all fleet HDVs.
    The incremental costs for new CFV acquisitions and operations were 
summed for each year from 1998 to 2010 to yield an estimated total 
annual cost of the fleet program for HDVs. As described in the 
proposal, three scenarios were developed based on differing assumptions 
about vehicle mix and about costs of alternative-fuel vehicles compared 
to conventional HDVs. The first scenario, Scenario A, assumes 
conventional-fuel vehicles will be purchased for the fleet program, 
while the second, Scenario B, assumes 20 percent of CFVs will be 
nonconventional-fuel vehicles. The third scenario, Scenario C, assumes 
30 percent of CFVs are nonconventional-fuel vehicles. Thus, for the 
first twelve years of the program 1998 present value cost is estimated 
to be $67 million for Scenario A, $99 million for Scenario B, and $30 
million for Scenario C (using a discount rate of 7 percent).\45\
---------------------------------------------------------------------------

    \45\As in proposal, Scenario C assumes that purchases of 
nonconventional-fuel vehicles are driven by a hypothetical combined 
acquisition and operating cost that is below the cost of 
conventional HDVs.
---------------------------------------------------------------------------

2. Program Benefits
    As with the draft RIA for the proposal, the final RIA presents an 
analysis of the expected emission benefits of the Clean Fuel Fleet 
Program. These benefits were estimated by comparing the total emissions 
from covered fleet vehicles to the emissions which the same number of 
conventional vehicles would produce in the absence of a fleet program. 
As in the economic analysis, the emission benefits of LDVs and LDTs 
were studied separately from HDVs, and the results of both are 
summarized below. The same scenarios used in the economic analysis 
(i.e., assuming different degrees of participation by non-petroleum 
fueled vehicles) were used in the benefits analysis. Along with vapor 
emission reductions, reductions in NMOG, NOX, and CO combustion 
emissions from LDVs and LDTs, and reductions in NMHC, NOX, and CO 
combustion emissions from HDVs, are discussed below.
    a. Light-duty vehicles and light-duty trucks. To estimate the 
environmental benefits of the fleet program, emission inventories were 
generated for two cases. In the base case, the number of covered fleet 
LDVs and LDTs estimated to be operating in each year were all assumed 
to be conventional vehicles. The base case emission inventories were 
calculated by computing lifetime emission factors for conventional 
(Tier 1) vehicles using the MOBILE5a emission factor model (instead of 
the specialized analysis using vehicle standards developed for the 
proposal). Similarly, emission inventories for the covered fleet 
vehicles were calculated using lifetime emission factors for LEVs from 
MOBILE5a. The difference between the two inventories yields the 
emission benifit of the program in terms of NMOG and NOX 
reductions. The final analyis results in 1998 present value benefits of 
the light-duty NMOG and NOX reductions realized for the years 1998 
through 2010 (using a discount rate of 7 percent) are approximately 
11,720 tons and 12,119 tons, respectively.
    As in the proposal, since LEVs will not generally achieve CO 
emission reductions, potential CO inventories were determined using the 
number of light-duty ULEVs and ZEVs. The 1998 present value benefit of 
the annual CO reductions is projected to range between 93,694 tons and 
120,885 tons.
    In addition to combustion emission benefits, the fleet program will 
also realize benefits from vapor emission reductions resulting from use 
of CNG, LPG, and electric vehicles. Some of these benefits will be 
achieved by inherently low-emission vehicles (ILEVS); however, a 
calculation of the amount of vapor reduction attributable to ILEVs was 
not attempted because the purchase of these vehicles is voluntary and 
their numbers are very uncertain.
    As in the proposal, vapor emission benefits of the fleet program 
were determined by multiplying the number of in-use CFVs projected to 
be operating on CNG, LPG, and electricity, by the average annual 
vehicle miles traveled for each class, and by the projected vapor 
emission reduction (grams/mile/vehicle) expected for each vehicle 
class. These vapor emission reductions were based on MOBILE5a 
evaporative emission factors in today's rule instead of MOBILE5.0 
evaporative emission factors as were used in the proposal. Even though 
the new analysis results in lower annual emission reductions, the vapor 
emission benefits reported in today's rule are higher level than those 
in the proposal due to the use of the 7 percent discount rate. The 1998 
present value benefits of the light-duty vapor emission reduction 
realized from the 1998 through 2000 are approximately 4,654 tons under 
Scenario I and 6,982 tons under Scenario II.
    Thus, summing the benefits, the 1998 present value benefits of NMOG 
and CO emission reduction achieved by the light-duty portion of the 
fleet program for the years 1998 through 2010 are projected to range 
from 16,400 to 18,700 tons and 93,700 to 121,000 tons respectively. The 
NOX emission reduction is estimated to be approximately 12,100 
tons.
    b. Heavy-duty vehicles. As in the proposal and similar to the 
analysis conducted for light-duty fleet vehicles, the emission benefits 
of heavy-duty clean-fuel fleet vehicles have been estimated by 
comparing total emissions from a base case to the emissions from a 
scenario using clean-fuel fleet vehicles. (Unlike LDVs and LDTs, EPA 
has not incorporated clean-fuel HDVs into MOBILE5a, and thus, HDVs were 
modelled in the same way as in the proposal.) The clean-fuel fleet 
vehicle scenario assumes that all covered fleet HDVs operate at the LEV 
emission level, and is used to generate emission inventories of NMHC 
and NOX. CO benefits expected to be realized at the ULEV level are 
also summarized below (heavy-duty ZEVs are not likely to be a viable 
option to fleet owners at the time the fleet program begins and thus no 
CO benefits are expected from vehicles other than heavy-duty ULEVs).
    Annual emission inventories of NMHC and NOX were generated by 
multiplying the number of in-use heavy-duty vehicles by the number of 
vehicle miles traveled and multiplying the result by the appropriate 
difference in emission factors. The 1998 present value benefits of the 
heavy-duty NMHC and NOX emission reduction realized from the 1998 
through 2010 are approximately 4,100 tons and 16,400 tons, 
respectively. The emission benefits are lower than the benefits 
reported in the proposal because the combined NMHC+NOX standard 
was changed from the proposed 3.5 g/Bhp-hr to 3.8 g/Bhp-hr in today's 
final rule (See section (II)(A)(2) above).
    In determining CO benefits, there is no reduction in the CO 
emission standard for heavy-duty vehicles meeting the minimum clean-
fuel fleet vehicle (LEV) requirements, but gasoline ULEVs will achieve 
a benefit. Those vehicles operating at the ULEV level, will include a 
50 percent reduction in CO emissions from their conventional or LEV 
counterparts. Diesel heavy-duty vehicles are not expected to generate 
incremental CO benefits since they currently emit below the heavy-duty 
ULEV standard for CO. The present value of the CO emission benefits are 
projected to range from 15,500 to 27,000 tons/year. Using a discount 
rate of 7 percent in today's rule instead of the proposed 10 percent 
rate, results in higher CO emission benefits than were projected in the 
proposal.
    Vapor emission benefits were projected for the replacement of 
gasoline-fueled HDVs by gaseous-fueled HDVs. For the years 1998 through 
2010 the program yields 1998 present value vapor emission benefits of 
2,700 to 4,500 tons. As with LDVs and LDTs, these vapor emission 
reductions were based on MOBILE5a evaporative emission factors in 
today's rule instead of MOBILE5.0 evaporative emission factors as were 
used in the proposal, and thus, the vapor emission reductions used in 
today's rule for HDVs are at a higher level than those emission 
reductions used in the proposal. (Also, using a discount rate of 7 
percent instead of the proposed 10 percent rate contrubuted to the 
higher levels of vapor emission reductions.)
    Thus, summing the benefits together, the 1998 present values of 
NMHC and CO emission reduction achieved by the heavy-duty portion of 
the fleet program for the years 1998 through 2010 are projected to 
range from 4,100 to 8,600 tons and to 15,500 to 27,000 tons 
respectively. The NOX emission reduction is estimated to be 
approximately 16,400 tons.
3. Cost Effectiveness
    As described in the proposal, for both light-duty and heavy-duty 
portions of the fleet program, the overall cost effectiveness was 
determined by dividing the total 1998 present value costs of the first 
12 years of the program by the associated discounted 12-year benefits. 
The overall cost effectiveness for LDVs is estimated to range between 
$4,400 and $5,800 per ton of all pollutants. The analysis suggests that 
the fleet program will provide a greater reduction in emissions per 
dollar spent if more light-duty vehicles operate on alternative fuels. 
The overall estimated heavy-duty cost effectiveness ranges from $580 
per ton to $3,300 per ton.
4. Additional Program Impacts
    The increased use of clean alternative fuels due to the fleet 
program may well result in the displacement of some of the use of 
conventional fuels. As in the proposal, EPA projects for the first 
twelve years of the Clean Fuel Fleet Program 3.2 to 6.4 billion gallons 
of petroleum-based fuel could be conserved. In addition to the 
conservation of petroleum resources, the fleet program may provide a 
number of non-quantifiable impacts, as well. The program will 
potentially furnish incentives for the development of clean-fuel 
vehicle technology, stimulate the vehicle conversion industry, support 
the wider distribution of alternative fuels and related infrastructure, 
and encourage the public to purchase and use clean-fuel vehicles.

III. Public Participation

    As in past rulemaking actions, EPA strongly encouraged full public 
participation in arriving at final decisions. On July 15, 1993 a public 
hearing was held for any person to present testimony in response to the 
proposal, and written comments on this proposal were accepted for a 
period of sixty days after the hearing (September 15, 1993). EPA has 
fully considered all of the comments and has modified the proposal to 
reflect many of the suggestions received. EPA's complete assessment of 
the comments received can be found in the summary and analysis of 
comments document for this rulemaking, which has been placed in Docket 
No. A-92-30 and A-92-69.

IV. Statutory Authority

    The statutory authority for this proposal is provided by sections 
241, 242, 243, 244, 245, 246, 247(a), 247(b), 249, and 301(a) of the 
CAA.

V. Administrative Designation and Regulatory Analysis

    Under Executive Order 12866 [58 Federal Register 51,735 (October 4, 
1993)], the Agency must determine whether this regulatory action is 
``significant'' and therefore subject to OMB review and the 
requirements of the Executive Order. The order defines ``significant 
regulatory action'' as one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    This rulemaking, covering emission standards for clean-fuel 
vehicles and engines, CFV conversion requirements, and the California 
Pilot Program, is considered an ``economically significant regulatory 
action'' under this definition, since the Clean Fuel Fleet Program and 
California Pilot Program together will cost more than $100 million 
annually in at least some years of its implementation. In addition, 
this rule is significant in that it represents the first motor vehicle 
emission control program which focus exclusively on fleets, raising a 
range of unprecedented issues. Finally, the rule is significant in that 
it parallels in many ways the alternative fuel fleet program required 
in the Energy Policy Act, which the Department of Energy is 
implementing; the areas of overlap between the two programs add to the 
significance of the rule. For these reasons, an RIA has been prepared, 
and is available in the docket for this rulemaking.
    This final rulemaking was submitted to the Office of Management and 
Budget (OMB) for review as required by Executive Order 12866. Any 
written comments from OMB and any EPA response to OMB comments are in 
the public docket for this rulemaking.

VI. Compliance With Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980 requires federal 
agencies to examine the effects of federal regulations and to identify 
significant adverse impacts on a substantial number of small entities. 
Because the RFA does not provide concrete definitions of ``small 
entity'', ``significant impact'', or ``substantial number'', EPA has 
established guidelines setting the standards to be used in evaluating 
impacts on small businesses.\46\ Section 604 of the Regulatory 
Flexibility Act requires EPA to prepare a Regulatory Flexibility 
Analysis when the Agency determines that there is a significant adverse 
impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \46\U.S. Environmental Protection Agency Memorandum to Assistant 
Administrators, ``Compliance With the Regulatory Flexibility Act'', 
EPA Office of Policy, Planning, and Evaluation, 1984. In addition, 
U.S. Environmental Protection Agency, Memorandum to Assistant 
Administrators, ``Agency's Revised Guidelines for Implementing the 
Regulatory Flexibility Act'', EPA Office of Policy, Planning, and 
Evaluation, 1992.
---------------------------------------------------------------------------

    Concerns regarding the potential impact of this regulation on small 
businesses are related to vehicle conversions. There could be a 
significant impact on small converters if they were distant from 
inspection and maintenance testing facilities. Difficulty in using such 
test facilities to comply with the post-installation emission test 
requirement could represent a significant economic burden to small 
manufacturers if they were compelled to rely solely on the alternative 
two-step idle post-installation test. (See section II.B.2.c. for a 
discussion of the post-installation testing requirements). However, EPA 
has no information to indicate that converters which may face such a 
situation currently exist or will exist in the future. Generally, EPA 
expects that such a situation would not occur or would occur very 
infrequently since there are significant economic and logistical 
advantages associated with locating a vehicle conversion facility 
within or close to an urban area. In any event, the rule provides for 
converters of 300 or fewer vehicles per year to request an exemption 
from the post-installation test if a severe economic hardship can be 
demonstrated.
    EPA has evaluated the effects of this regulation and the 
Administrator of EPA certifies that there will not be an adverse impact 
on a substantial number of small entities. Therefore, a Regulatory 
Flexibility Analysis was not conducted.

VII. Paperwork Reduction Act

    The information collection requirements in this rule pertaining to 
the California Pilot Program and the post-installation test for 
converted vehicles have been submitted to OMB for approval under the 
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. An Information Request 
document has been prepared by EPA (ICR No. 1694) and a copy may be 
obtained from Sandy Farmer, Information Policy Branch, EPA/OPPE/ORME, 
401 M Street SW, Washington, DC 20460 (Mail Code 2136) or by calling 
(202) 260-2740. These requirements are not effective until OMB approves 
them and a technical amendment to that effect is published in the 
Federal Register.
    This collection of information has an estimated reporting burden 
averaging 1.4 hours per response and an estimated annual recordkeeping 
burden averaging 67 hours per respondent. However, the hours spent 
annually on information collection activities by a given manufacturer 
depends upon manufacturer-specific variables, such as the number of 
engine families, production changes, emissions defects, and so on. This 
estimate includes time for reviewing instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information.
    Send comments regarding the burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden to Chief, Information Policy Branch; EPA/OPPE/ORME; 401 M Street 
SW, (Mail Code 2136); Washington, DC 20460; and to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503, marked ``Attention: EPA Desk Officer''.
    All other information collection requirements in this rule have 
been approved by the Office of Management and Budget under the 
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and have been assigned 
control number 2060-0104.

VIII. Consultation With DOE and DOT

    As per section 250(d) of the Clean Air Act, this rulemaking has 
coordinated with the Department of Energy and the Department of 
Transportation. Also, pursuant to section 247(e) of the Act that states 
``* * * The Secretary of Transportation shall, if necessary, promulgate 
rules under applicable motor vehicle laws regarding the safety of 
vehicles converted from existing and new vehicles to clean-fuel 
vehicles,'' this rulemaking has been coordinated with the Department of 
Transportation regarding the safety of vehicles converted to CFVs. 
Interagency review documents are contained in section II-F and IV-H of 
this rulemaking's docket.

IX. Judicial Review

    Under section 307(b)(1) of the Clean Air Act, EPA hereby finds that 
these regulations are of national applicability. Accordingly, judicial 
review of this action is available only by filing a petition for review 
of the United States Court of Appeals for the District Of Columbia 
Circuit within 60 days of publication. Under section 307(b)(2) of the 
Act, the requirements which are the subject of today's notice may not 
be challenged later in the judicial proceedings brought by EPA to 
enforce these requirements.

List of Subjects

40 CFR Part 9

    Environmental protection, Reporting and recordkeeping requirements.

40 CFR Part 86

    Environmental protection, Administrative practice and procedure, 
Confidential business information, Incorporation by reference, 
Labeling, Motor vehicle pollution, Reporting and recordkeeping 
requirements.

40 CFR Part 88

    Environmental protection, Incorporation by reference, Motor vehicle 
pollution, Reporting and Recordkeeping requirements.

    Dated: June 14, 1994.
Carol M. Browner,
Administrator.

    For reasons set forth in the preamble, parts 9, 86 and 88 of title 
40 of the Code of Federal Regulations are amended as follows:

PART 9--[AMENDED]

    1. The authority citation for part 9 continues to read as follows:

    Authority: 7 U.S.C. 135 et. seq., 136-136y; 15 U.S.C. 2001, 
2003, 2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 348; 31 U.S.C. 
9701; 33 U.S.C. 1251 et. seq., 1311, 1313d, 1314, 1321, 1326, 1330, 
1334, 1345(d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR, 1971-
1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g, 300g-
1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2, 300j-3, 
300j-4, 300j-9, 1857 et. seq., 6901-6992k, 7401-7671q, 7542, 9601-
9657, 11023, 11048.

    2. Section 9.1 is amended in the table by adding in numerical order 
new entries under the center heading ``Control of Air Pollution from 
New and In-Use Motor Vehicles and New and In-Use Motor Vehicle Engines: 
Certification and Test Procedures'' and by adding a new center heading, 
``Clean-Fuel Vehicles'', and new entries under it to read as follows:


Sec. 9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

                                                                        
  40 CFR citations                      OMB control No.                 
                                                                        
                                                                        
                                  *****                                 
                                                                        
 Control of Air Pollution from New and In-Use Motor Vehicles and New and
     In-Use Motor Vehicle Engines: Certification and Test Procedures    
                                                                        
                                                                        
                                  *****                                 
Sec. 86.111-94        2060-0104                                         
                                                                        
                                  *****                                 
Sec. 86.1311-94       2060-0104                                         
                                                                        
                                  *****                                 
                           Clean-Fuel Vehicles                          
                                                                        
Sec. 88.104-94 (a),   2060-0104                                         
 (c), (e), (f), (g),                                                    
 (h), (i), (j), (k)                                                     
Sec. 88.105-94        2060-0104                                         
Sec. 88.305-94        2060-0104                                         
Sec. 88.306-94(a),    2060-0104                                         
 (b) introductory                                                       
 text                                                                   
                                  *****                                 
                                                                        

PART 86--CONTROL OF AIR POLLUTION FROM NEW AND IN-USE MOTOR 
VEHICLES AND NEW AND IN-USE MOTOR VEHICLE ENGINES: CERTIFICATION 
AND TEST PROCEDURES

    3. The authority citation for part 86 continues to read as follows:

    Authority: Secs. 202, 203, 205, 206, 207, 208, 215, 216, 217, 
and 301(a), Clean Air Act as amended (42 U.S.C. 7521, 7522, 7524, 
7525, 7541, 7542, 7549, 7550, 7552, and 7601(a)).

    3a. Section 86.1 is amended by adding a new entry to the end of the 
table in paragraph (b)(2) to read as follows:


Sec. 86.1  Reference materials.

* * * * *
    (b) * * *
    (2) * * *

------------------------------------------------------------------------
                                                      40 CFR part 86    
             Document No. and name                      reference       
------------------------------------------------------------------------
                                                                        
                                  *****                                 
SAE Recommended Practice J1151, December 1991,   86.111-94; 86.1311-94. 
 Methane Measurement Using Gas Chromatography,                          
 1994 SAE Handbook--SAE International                                   
 Cooperative Engineering Program, Volume 1:                             
 Materials, Fuels, Emissions, and Noise;                                
 Section 13 and page 170 (13.170).                                      
------------------------------------------------------------------------

    4. Section 86.085-37 of subpart A is amended by revising paragraph 
(b)(1) introductory text to read as follows:


Sec. 86.085-37  Production vehicles and engines.

* * * * *
    (b)(1) Any manufacturer of light-duty vehicles or light-duty trucks 
obtaining certification under this part shall notify the Administrator, 
on a yearly basis, of the number of vehicles domestically produced for 
sale in the United States and the number of vehicles produced and 
imported for sale in the United States during the preceding year. Such 
information shall also include the number of vehicles produced for sale 
pursuant to 40 CFR 88.204-94(b). A manufacturer may elect to provide 
this information every 60 days instead of yearly by combining it with 
the notification required under Sec. 86.079-36. The notification must 
be submitted 30 days after the close of the reporting period. The 
vehicle production information required shall be submitted as follows:
* * * * *
    5. Section 86.094-15 of subpart A is amended by revising paragraph 
(a)(1) to read as follows:


Sec. 86.094-15  NOX and particulate averaging, trading, and 
banking for heavy-duty engines.

    (a)(1) Heavy-duty engines eligible for NOX and particulate 
averaging, trading and banking programs are described in the applicable 
emission standards sections in this subpart. All heavy-duty engine 
families which include any engines labeled for use in clean-fuel 
vehicles as specified in 40 CFR part 88 are not eligible for these 
programs. Participation in these programs is voluntary.
* * * * *
    6. Section 86.094-24 of subpart A is amended by adding a new 
paragraph (a)(3)(iii) and revising paragraph (a)(4) introductory text 
to read as follows:


Sec. 86.094-24  Test vehicles and engines.

    (a) * * *

    (3) * * *

    (iii) Engines identical in all of the respects listed in paragraphs 
(a)(2) and (a)(3)(i) of this section may be further divided into 
different engine families if some of the engines are expected to be 
sold as clean-fuel vehicles under 40 CFR Part 88, and if the 
manufacturer chooses to certify the engines to both the clean-fuel 
vehicle standards of 40 CFR part 88 and the general standards of this 
part 86. One engine family shall include engines that are intended for 
general use. For this engine family, only the provisions of this part 
86 shall apply. The second engine family shall include all engines that 
are intended to be used in clean-fuel vehicles. For this engine family, 
the provisions of both this part 86 and 40 CFR Part 88 shall apply. The 
manufacturer may submit one set of data to certify both engine 
families.

    (4) Where engines are of a type which cannot be divided into engine 
families based upon the criteria listed in paragraphs (a)(2) and (a)(3) 
of this section, the Administrator will establish families for those 
engines based upon those features most related to their emission 
characteristics. Engines that are eligible to be included in the same 
engine family based on the criteria in paragraphs (a)(2) and (a)(3)(i) 
of this section may be further divided into different engine families 
if the manufacturer determines that they may be expected to have 
different emission characteristics, or if the manufacturer chooses to 
certify the engines to both the clean-fuel vehicle standards of 40 CFR 
Part 88 and the general standards of this part 86 as described in 
paragraph (a)(3)(iii) of this section. The determination of the 
emission characteristics will be based upon a consideration of the 
following features of each engine:

* * * * *
    7. Section 86.111-94 of subpart B is amended by adding a new 
paragraph (b)(3)(vii) to read as follows:


Sec. 86.111-94  Exhaust gas analytical system.

* * * * *

    (b) * * *

    (3) * * *

    (vii) Using a methane analyzer consisting of a gas chromatograph 
combined with a FID, the measurement of methane shall be done in 
accordance with the Society of Automotive Engineers, Inc. (SAE) 
Recommended Practice J1151, ``Methane Measurement Using Gas 
Chromatography,'' December 1991, 1994 SAE Handbook--SAE International 
Cooperative Engineering Program, Volume 1: Materials, Fuels, Emissions, 
and Noise; Section 13 and page 170 (13.170), which is incorporated by 
reference.

    (A) This incorporation by reference was approved by the Director of 
the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 
51.

    (B) Copies may be inspected at U.S. EPA, OAR, 401 M Street, SW., 
Washington, DC 20460, or at the Office of the Federal Register, 800 
North Capitol Street, NW., suite 700, Washington, DC. Copies of this 
material may be obtained from Society of Automotive Engineers 
International, 400 Commonwealth Drive, Warrendale, PA 15096-001.

* * * * *

    8. Section 86.1311-94 of subpart N is amended by adding a new 
paragraph (b)(2)(iii) preceding figure N94-1 to read as follows:


Sec. 86.1311-94  Exhaust gas analytical system; CVS bag sample.

* * * * *

    (b) * * *

    (2) * * *

    (iii) Using a methane analyzer consisting of a gas chromatograph 
combined with a FID, the measurement of methane shall be done in 
accordance with SAE Recommended Practice J1151, ``Methane Measurement 
Using Gas Chromatography''. (Incorporated by reference pursuant to 
Sec. 86.1(b)(2)).
* * * * *

PART 88--CLEAN-FUEL VEHICLES

    9. The authority citation for part 88 continues to read as follows:

    Authority: 42 U.S.C. 7410, 7418, 7581, 7582, 7583, 7584, 7586, 
7588, 7589, and 7601(a).

    10. Sections 88.101-94 and 88.102-94 in subpart A are redesignated 
as Secs. 88.102-94 and 88.103-94, respectively, and a new Sec. 88.101-
94 is added to read as follows:


Sec. 88.101-94  General applicability.

    The clean-fuel vehicle standards and provisions of this subpart are 
applicable to vehicles used in subpart B of this part (the Clean Fuel 
Fleet Program) and subpart C of this part (the California Pilot Test 
Program).
    1. Newly designated Sec. 88.102-94 of subpart A is amended by 
revising the the introductory text and adding the following definitions 
in alphabetical order to read as follows:


Sec. 88.102-94  Definitions.

    Any terms defined in 40 CFR part 86 and not defined in this part 
shall have the meaning given them in 40 CFR part 86, subpart A.
    Adjusted Loaded Vehicle Weight is defined as the numerical average 
of the vehicle curb weight and the GVWR.
    Dual Fuel Vehicle (or Engine) means any motor vehicle (or motor 
vehicle engine) engineered and designed to be operated on two different 
fuels, but not on a mixture of the fuels.
    Flexible Fuel Vehicle (or Engine) means any motor vehicle (or motor 
vehicle engine) engineered and designed to be operated on any mixture 
of two or more different fuels.
* * * * *
    Non-methane Hydrocarbon Equivalent means the sum of the carbon mass 
emissions of non-oxygenated non-methane hydrocarbons plus the carbon 
mass emissions of alcohols, aldehydes, or other organic compounds which 
are separately measured in accordance with the applicable test 
procedures of 40 CFR part 86, expressed as gasoline-fueled vehicle non-
methane hydrocarbons. In the case of exhaust emissions, the hydrogen-
to-carbon ratio of the equivalent hydrocarbon is 1.85:1. In the case of 
diurnal and hot soak emissions, the hydrogen-to-carbon ratios of the 
equivalent hydrocarbons are 2.33:1 and 2.2:1 respectively.
* * * * *
    12. Newly designated Sec. 88.103-94 of subpart A is amended by 
adding the following abbreviations in alphabetical order to read as 
follows:


Sec. 88.103-94  Abbreviations.

* * * * *
ALVW--Adjusted Loaded Vehicle Weight .
* * * * *
HC--Hydrocarbon.
* * * * *
HDV--Heavy-Duty Vehicle.
LDT--Light-Duty Truck.
LDV--Light-Duty Vehicle.
NMHC--Non-Methane Hydrocarbon.
NMHCE--Non-Methane Hydrocarbon Equivalent.
* * * * *
    13. A new Sec. 88.104-94 is added to subpart A to read as follows:


Sec. 88.104-94  Clean-fuel vehicle tailpipe emission standards for 
light-duty vehicles and light-duty trucks.

    (a) A light-duty vehicle or light-duty truck will be considered as 
a TLEV, LEV, ULEV, or ZEV if it meets the applicable requirements of 
this section.
    (b) Light-duty vehicles certified to the exhaust emission standards 
for TLEVs, LEVs, and ULEVs in Tables A104-1 and A104-2 shall be 
considered as meeting the requirements of this section for that 
particular vehicle emission category for model years 1994-2000 for the 
California Pilot Program.
    (c) Light-duty vehicles certified to the exhaust emission standards 
for LEVs and ULEVs in Tables A104-1 and A104-2 shall be considered as 
meeting the requirements of this section for that particular vehicle 
emission category for model years 2001 and later for the California 
Pilot Program, and for model years 1998 and later for the Clean Fuel 
Fleet Program.
    (d) Light light-duty trucks certified to the exhaust emission 
standards for a specific weight category for TLEVs, LEVs, and ULEVs in 
Tables A104-3 and A104-4 shall be considered as meeting the 
requirements of this section for that particular vehicle emission 
category. For model years 1994-2000 for the California Pilot Program.
    (e) Light Light-duty trucks certified to the exhaust emission 
standards for a specific weight category for LEVs and ULEVs in Tables 
A104-3 and A104-4 shall be considered as meeting the requirements of 
this section for that particular vehicle emission category. For model 
years 2001 and later for the California Pilot Program, and for model 
years 1998 and later for the Clean Fuel Fleet Program.
    (f) Heavy light-duty trucks certified to the exhaust emission 
standards for a specific weight category of LEVs and ULEVs in Tables 
A104-5 and A104-6 for model years 1998 and later shall be considered as 
meeting the requirements of this section for that particular vehicle 
emission category.
    (g) A light-duty vehicle or light-duty truck shall be certified as 
a ZEV if it is determined by engineering analysis that the vehicle 
satisfies the following conditions:
    (1) The vehicle fuel system(s) must not contain either carbon or 
nitrogen compounds (including air) which, when burned, form any of the 
pollutants listed in Table A104-1 as exhaust emissions.
    (2) All primary and auxiliary equipment and engines must have no 
emissions of any of the pollutants listed in Table A104-1.
    (3) The vehicle fuel system(s) and any auxiliary engine(s) must 
have no evaporative emissions in use.
    (4) Any auxiliary heater must not operate at ambient temperatures 
above 40 degrees Fahrenheit.
    (h) NMOG standards for flexible- and dual-fueled vehicles when 
operating on clean alternative fuel--(1) Light-duty vehicles, and light 
light-duty trucks. Flexible- and dual-fueled LDVs and light LDTs of 
1996 model year and later shall meet all standards in Table A104-7 for 
vehicles of the applicable model year, loaded vehicle weight, and 
vehicle emission category.
    (2) Light-duty trucks above 6,000 lbs GVWR. Flexible- and dual-
fueled LDTs above 6,000 lbs. GVWR of 1998 model year and later shall 
meet all standards in Table A104-8 for vehicles of the applicable test 
weight and vehicle emission category.
    (i) NMOG standards for flexible- and dual-fueled vehicles when 
operating on conventional fuel--(1) Light-duty vehicles, and light 
light-duty trucks. Flexible- and dual-fueled LDVs and light LDTs of 
1996 model year and later shall meet all standards in Table A104-9 for 
vehicles of the applicable model year, loaded vehicle weight, and 
vehicle emission category.
    (2) Light-duty trucks above 6,000 lbs GVWR. Flexible- and dual-
fueled LDTs of 1998 model year and later shall meet all standards in 
Table A104-10 for vehicles of the applicable test weight and vehicle 
emission category.
    (j) Other standards for flexible- and dual-fueled vehicles. When 
operating on clean alternative fuel, flexible- and dual- fueled light-
duty vehicles and light light-duty trucks must also meet the 
appropriate standards for carbon monoxide, oxides of nitrogen, 
formaldehyde, and particulate matter as designated in paragraphs (a) 
through (f) of this section as well as all other applicable standards 
and requirements. When operating on conventional fuel, flexible- and 
dual-fueled vehicles must also meet all other applicable standards and 
requirements in 40 CFR part 86.
    (k) Motor vehicles subject to standards and requirements of this 
section shall also comply with all applicable standards and 
requirements of 40 CFR part 86, except that any exhaust emission 
standards in 40 CFR part 86 pertaining to pollutants for which 
standards are established in this section shall not apply. For 
converted vehicles, the applicable standards and requirements of 40 CFR 
part 86 and this part 88 shall apply based on the model year in which 
the conversion is performed, regardless of the model year in which the 
base vehicle was originally manufactured prior to conversion.
    (1) Gaseous-fueled, diesel-fueled, and electric clean-fuel vehicles 
are waived from cold CO test requirements of subpart C of this part if 
compliance is demonstrated by engineering analysis or test data.
    (2) The standards in this section shall be administered and 
enforced in accordance with the California Regulatory Requirements 
Applicable to the Clean Fuel Fleet and California Pilot Programs, April 
1, 1994, which are incorporated by reference.
    (i) This incorporation by reference was approved by the Director of 
the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 
51.
    (ii) Copies may be inspected at U.S. EPA, OAR, 401 M Street, 
Southwest, Washington, DC 20460, or at the Office of the Federal 
Register, 800 North Capitol Street, NW., suite 700, Washington, DC. 
Copies of these materials may be obtained from Barclay's Law 
Publishers, 400 Oyster Point Boulevard, P.O. Box 3066, South San 
Francisco, CA 94080, phone (415) 244-6611.
    (l) The standards set forth in this section other than those for 
NMOG emissions refer to the exhaust emitted while the vehicle is being 
tested in accordance with the applicable test procedures set forth in 
40 CFR part 86, subpart N. NMOG emissions are to be measured in 
accordance with the California Regulatory Requirements Applicable to 
the Clean Fuel Fleet and California Pilot Program, April 1, 1994, 
incorporated by reference pursuant to paragraph (k)(2) of this section.

Table A104-1.--Intermediate Useful Life Standards (g/mi) for Light-Duty Vehicles for HCs, CO, NOX, HCHO, and PM 
----------------------------------------------------------------------------------------------------------------
                  Vehicle emission category         NMOG          CO           NOX         HCHO          PM1    
----------------------------------------------------------------------------------------------------------------
             TLEV..............................        0.125          3.4          0.4        0.015  ...........
             LEV...............................      \2\.075       \2\3.4           .2      \2\.015  ...........
             ULEV..............................         .040          1.7        \2\.2         .008  ...........
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Applies to ILEVs.                                                                                            


    Table A104-2.--Full Useful Life Standards (g/mi) for Light-Duty Vehicles for HCs, CO, NOX, HCHO, and PM     
----------------------------------------------------------------------------------------------------------------
                  Vehicle emission category         NMOG          CO           NOX         HCHO          PM1    
----------------------------------------------------------------------------------------------------------------
             TLEV..............................        0.156          4.2          0.6        0.018         0.08
             LEV...............................     \2\0.090       \2\4.2           .3      \2\.018       \2\.08
             ULEV..............................         .055          2.1        \2\.3         .011          .04
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Applies to ILEVs.                                                                                            


Table A104-3.--Intermediate Useful Life Standards (g/mi) for Light Light-Duty Trucks for HCs, CO, NOX, HCHO, and
                                                       PM                                                       
----------------------------------------------------------------------------------------------------------------
   LVW (lbs)        Vehicle emission category       NMOG          CO           NOX         HCHO          PM1    
----------------------------------------------------------------------------------------------------------------
0-3750.........  TLEV..........................         .125          3.4           .4         .015  ...........
                 LEV...........................      \2\.075       \2\3.4           .2      \2\.015  ...........
                 ULEV..........................         .040          1.7        \2\.2         .008  ...........
3751-5750......  TLEV..........................        0.160          4.4           .7         .018  ...........
                 LEV...........................      \2\.100       \2\4.4           .4      \2\.018  ...........
                 ULEV..........................         .050          2.2        \2\.4         .009  ...........
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Applies to ILEVs.                                                                                            


  Table A104-4.--Full Useful Life Standards (g/mi) for Light Light-Duty Trucks for HCs, CO, NOX, HCHO, and PM   
----------------------------------------------------------------------------------------------------------------
   LVW (lbs)       Vehicle emission category        NMOG          CO           NOX         HCHO         PM\1\   
----------------------------------------------------------------------------------------------------------------
0-3750.........  TLEV..........................        0.156          4.2          0.6        0.018         0.08
                 LEV...........................     \2\0.090       \2\4.2          0.3      \2\.018       \2\.08
                 ULEV..........................         .055          2.1        \2\.3         .011          .04
3751-5750......  TLEV..........................         .200          5.5           .9         .023          .08
                 LEV...........................      \2\.130       \2\5.5           .5      \2\.023       \2\.08
                 ULEV..........................         .070          2.8        \2\.5         .013          .04
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Applies to ILEVs.                                                                                            


Table A104-5.--Intermediate Useful Life Standards (g/mi) for Heavy Light-Duty Trucks for HCs, CO, NOX, HCHO, and
                                                       PM                                                       
----------------------------------------------------------------------------------------------------------------
  ALVW (lbs)       Vehicle emission category        NMOG          CO         NOX\2\        HCHO         PM\1\   
----------------------------------------------------------------------------------------------------------------
0-3750.........  LEV...........................     \3\0.125       \3\3.4          0.4     \3\0.015             
                 ULEV..........................         .075          1.7        \3\.2         .008             
3751-5750......  LEV...........................      \3\.160       \3\4.4           .7      \3\.018             
                 ULEV..........................         .100          2.2        \3\.4         .009             
5751-..........  LEV...........................      \3\.195       \3\5.0          1.1      \3\.022             
                 ULEV..........................         .117          2.5        \3\.6         .011             
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Does not apply to diesel vehicles.                                                                           
\3\Applies to ILEVs.                                                                                            


   Table A104-6.--Full Useful Life Standards (g/mi) for Heavy Light-Duty Trucks for HCs, CO, NOX, HCHO, and PM  
----------------------------------------------------------------------------------------------------------------
  ALVW (lbs)       Vehicle emission category        NMOG          CO           NOX         HCHO         PM\1\   
----------------------------------------------------------------------------------------------------------------
0-3750.........  LEV...........................     \2\0.180       \2\5.0          0.6     \2\0.022      \2\0.08
                 ULEV..........................         .107          2.5        \2\.3         .012          .04
3751-5750......  LEV...........................      \2\.230       \2\6.4          1.0      \2\.027       \2\.10
                 ULEV..........................         .143          3.2        \2\.5         .013          .05
5751-..........  LEV...........................      \2\.280       \2\7.3          1.5      \2\.032       \2\.12
                 ULEV..........................         .167          3.7        \2\.8         .016          .06
----------------------------------------------------------------------------------------------------------------
\1\Applies to diesel vehicles only.                                                                             
\2\Applies to ILEVs.                                                                                            


   Table A104-7.--NMOG Standards (g/mi) for Flexible- and Dual-Fueled   
 Vehicles When Operating on Clean Alternative Fuel for Light Light-Duty 
                     Trucks and Light-Duty Vehicles                     
------------------------------------------------------------------------
                                                50,000 mile    100,000  
                 Vehicle type                       NMOG      mile NMOG 
                                                 standard      standard 
------------------------------------------------------------------------
MY 1996 and later:                                                      
    LDTs (0-3,750 lbs. LVW) and LDVs..........        0.125        0.156
    LDTs (3,751-5,750 lbs. LVW)...............         .160         .200
Beginning MY 2001:                                                      
    LDTs (0-3,750 lbs. LVW) and LDVs..........         .075         .090
    LDTs (3,751-5,750 lbs. LVW)...............         .100         .130
------------------------------------------------------------------------


   Table A104-8.--NMOG Standards (g/mi) for Flexible- and Dual-Fueled   
 Vehicles When Operating on Clean Alternative Fuel for Heavy Light-Duty 
                                 Trucks                                 
------------------------------------------------------------------------
                                                50,000 mile    120,000  
                 Vehicle type                       NMOG      mile NMOG 
                                                 standard      standard 
------------------------------------------------------------------------
Beginning MY 1998:                                                      
    LDTs (0-3,750 lbs. ALVW)..................        0.125        0.180
    LDTs (3,751-5,750 lbs. ALVW)..............         .160         .230
    LDTs (5,751-8,500 lbs. ALVW)..............         .195        .280 
------------------------------------------------------------------------

      

   Table A104-9.--NMOG Standards (g/mi) for Flexible- and Dual-Fueled   
Vehicles When Operating on Conventional Fuel for Light Light-Duty Trucks
                        and Light-Duty Vehicles                         
------------------------------------------------------------------------
                                                50,000 mile    100,000  
                 Vehicle type                       NMOG      mile NMOG 
                                                  standard    standard  
------------------------------------------------------------------------
Beginning MY 1996:                                                      
    LDTs (0-3,750 lbs. LVW) and LDVs..........         0.25         0.31
    LDTs (3,751-5,750 lbs. LVW)...............          .32          .40
Beginning MY 2001:                                                      
    LDTs (0-3,750 lbs. LVW) and LDVs..........         .125         .156
    LDTs (3,751-5,750 lbs. LVW)...............         .160        .200 
------------------------------------------------------------------------


   Table A104-10.--NMOG Standards (g/mi) for Flexible- and Dual-Fueled  
Vehicles When Operating on Conventional Fuel for Light Light-Duty Trucks
                                                                        
------------------------------------------------------------------------
                                                50,000 mile    120,000  
                 Vehicle type                       NMOG      mile NMOG 
                                                  standard    standard  
------------------------------------------------------------------------
Beginning MY 1998:                                                      
    LDTs (0-3,750 lbs. ALVW)..................         0.25         0.36
    LDTs (3,751-5,750 lbs. ALVW)..............          .32          .46
    LDTs (5,751-8,500 lbs. ALVW)..............          .39         .56 
------------------------------------------------------------------------

    4. A new Sec. 88.105-94 is added to subpart A to read as follows:


Sec. 88.105-94  Clean-fuel fleet emission standards for heavy-duty 
engines.

    (a) Exhaust emissions from engines used in heavy-duty low emission 
vehicles shall meet one of the following standards:
    (1) Combined emissions of oxides of nitrogen and nonmethane 
hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 
3.8 grams per brake horsepower-hour.
    (2) Combined emissions of oxides of nitrogen and nonmethane 
hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 
3.5 grams per brake horsepower-hour when tested (certified) on fuel 
meeting the specifications of California certification fuel.
    (b) Exhaust emissions from engines used in heavy-duty low emission 
vehicles shall meet conventional vehicle standards set forth in Part 86 
for total hydrocarbon, carbon monoxide, particulate, and organic 
material hydrocarbon equivalent.
    (c) Exhaust emissions from engines used in ultra-low emission 
heavy-duty vehicles shall meet each of the following standards:
    (1) The combined emissions of oxides of nitrogen and nonmethane 
hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 
2.5 grams per brake horsepower-hour.
    (2) Carbon monoxide emissions shall not exceed 7.2 grams per brake 
horsepower-hour.
    (3) Particulate emissions shall not exceed 0.05 grams per brake 
horsepower-hour.
    (4) Formaldehyde emissions shall not exceed 0.025 grams per brake 
horsepower-hour.
    (d) Exhaust emissions from engines used in inherently-low emission 
heavy-duty vehicles shall meet each of the following standards:
    (1) The combined emissions of oxides of nitrogen and nonmethane 
hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 
2.5 grams per brake horsepower-hour.
    (2) Carbon monoxide emissions shall not exceed 14.4 grams per brake 
horsepower-hour.
    (3) Particulate emissions shall not exceed 0.10 grams per brake 
horsepower-hour.
    (4) Formaldehyde emissions shall not exceed 0.05 grams per brake 
horsepower-hour.
    (e) The standards set forth in paragraphs (a), (b), (c), and (d) of 
this section refer to the exhaust emitted while the vehicle is being 
tested in accordance with the applicable test procedures set forth in 
40 CFR part 86, subpart N.
    (f)(1) A heavy-duty zero-emission vehicle (ZEV) has a standard of 
zero emissions for nonmethane hydrocarbons, oxides of nitrogen, carbon 
monoxide, formaldehyde, and particulates.
    (2) A heavy-duty vehicle shall be certified as a ZEV if it is 
determined by engineering analysis that the vehicle satisfies the 
following conditions:
    (i) The vehicle fuel system(s) must not contain either carbon or 
nitrogen compounds (including air) which, when burned, form nonmethane 
hydrocarbons, oxides of nitrogen, carbon monoxide, formaldehyde, or 
particulates as exhaust emissions.
    (ii) All primary and auxiliary equipment and engines must have no 
emissions of nonmethane hydrocarbons, oxides of nitrogen, carbon 
monoxide, formaldehyde, and particulates.
    (iii) The vehicle fuel system(s) and any auxiliary engine(s) must 
have no evaporative emissions.
    (iv) Any auxiliary heater must not operate at ambient temperatures 
above 40 degrees Fahrenheit.
    (g) All heavy-duty engines used in low emission, ultra-low 
emission, or zero emission vehicles shall also comply with all 
applicable standards and requirements of 40 CFR part 86, except that 
any exhaust emission standards in 40 CFR part 86 pertaining to 
pollutants for which standards are established in this section shall 
not apply.
    15. Section 88.201-94 of subpart B is amended by revising paragraph 
(a) to read as follows:


Sec. 88.201-94  Scope.

* * * * *
    (a) State Implementation Plan revisions for the State of California 
and other states pursuant to compliance with section 249 of the Clean 
Air Act, as amended in 1990.
* * * * *
    16. A new Sec. 88.204-94 is added to subpart B to read as follows:


Sec. 88.204-94  Sales requirements for the California Pilot Test 
Program.

    (a) The total annual required minimum sales volume of new clean 
fuel vehicles in California for this program shall correspond to Table 
B204.
    (b) (1) When manufacturers of vehicles subject to the regulations 
of this section file a report pursuant to 40 CFR 86.085-37(b), such 
report shall include the following information: the number of light-
duty vehicles and light-duty trucks sold only in California, and the 
number of clean-fuel vehicles sold for the Pilot program beginning with 
model year 1996.
    (2) For model years 1996 and 1997, manufacturers may exclude heavy 
light-duty trucks from the reporting required by this section.
    (c) (1) Except as provided in paragraph (d) of this section, each 
vehicle manufacturer must sell clean-fuel vehicles in California in an 
amount equal to the required annual sales volume calculated in 
paragraph (c)(2) of this section.
    (2) The required annual clean fuel vehicle sales volume for a given 
manufacturer is expressed in the following equation rounded to the 
nearest whole number.

TR30SE94.001

Where:

RMS=a manufacturer's required sales in a given model year.
MS=a manufacturer's total LDV and light LDT sales in California two 
model years earlier than year in question (for MY 1996 and 1997 RMS 
calculations).
    =a manufacturer's total LDV and LDT sales in California two model 
years earlier than year in question (for MY 1998 and later RMS 
calculations).
TS=total LDV and light LDT sales in California of all manufacturers two 
model years earlier than the year in question (for MY 1996 and 1997 RMS 
calculations). Sales of manufacturers which meet the criteria of (d) of 
this paragraph will not be included.
    =total LDV and LDT sales in California of all manufacturers two 
model years earlier than the year in question (for MY 1998 and later 
RMS calculations). Sales of manufacturers which meet the criteria of 
(d) of this paragraph will not be included.
TCPPS=Pilot program annual CFV sales requirement (either 150,000 or 
300,000) for the model year in question.

    (i) A manufacturer's share of required annual sales for model years 
1996 and 1997 will be based on LDV and light LDT sales only. Once the 
heavy LDT standards are effective beginning with model year 1998, a 
manufacturer's required sales share will be based on all LDV and LDT 
sales.
    (ii) A manufacturer certifying for the first time in California 
shall calculate annual required sales share based on projected 
California sales for the model year in question. In the second year, 
the manufacturer shall use actual sales from the previous year. In the 
third year and subsequent years, the manufacturer will use sales from 
two model years prior to the year in question.
    (d) (1) Small volume manufacturer is defined in the Pilot program 
as one whose average annual LDV and LDT sales in California are less 
than or equal to 3,000 units during a consecutive three-year period 
beginning no earlier than model year 1993.
    (i) A manufacturer with less than three consecutive years of sales 
in California shall use a single year of sales or, if available, the 
average of two years of sales in California to determine whether they 
fall at or below the threshold of 3,000 units.
    (ii) A manufacturer certifying for the first time in California 
shall be considered a small volume manufacturer if their projected 
California sales level is at or below 3,000 units for a given year. 
Once the manufacturer has actual sales data for one year, this actual 
sales data shall be used to determine whether the manufacturer 
qualifies as a small volume manufacturer.
    (iii) A manufacturer which does not qualify as a small volume 
manufacturer in model year 1996 but whose average annual LDV and LDT 
sales fall to or below the 3,000 unit threshold between 1996 and 2001 
shall be treated as a small volume manufacturer and shall be subject to 
requirements for small volume manufacturers as specified in paragraph 
(d)(2) of this section beginning with the next model year.
    (2) A manufacturer which qualifies as a small volume manufacturer 
prior to model year 2001 is not required to comply with the sales 
requirements of this section until model year 2001. 

           Table B204.--Pilot Program Vehicle Sales Schedule            
------------------------------------------------------------------------
                                                                Required
          Model years                   Vehicle types            annual 
                                                                 sales  
------------------------------------------------------------------------
1996 and 1997.................  LDTs (< 6000 GVWR and 5750 LVW); and LDVs.                
1998..........................  All Applicable Vehicle Types.    150,000
1999+.........................  All Applicable Vehicle Types.   300,000 
------------------------------------------------------------------------

    17. A new Sec. 88.206-94 is added to subpart B to read as follows.


Sec. 88.206-94  State Opt-in for the California Pilot Test Program.

    (a) A state may opt into the Pilot program if it contains all or 
part of an ozone nonattainment area classified as serious, severe, or 
extreme under subpart D of Title I.
    (b) A state may opt into the program by submitting SIP revisions 
that meet the requirements of this section.
    (c) For a state that chooses to opt in, SIP provisions can not take 
effect until one year after the state has provided notice to of such 
provisions to motor vehicle manufacturers and fuel suppliers.
    (d) A state that chooses to opt into the program can not require a 
sales or production mandate for CFVs or clean alternative fuels. States 
may not subject fuel or vehicle suppliers to penalties or sanctions for 
failing to produce or sell CFVs or clean alternative fuels.
    (e) (1) A state's SIP may include incentives for the sale or use in 
such state of CFVs required in California by the Clean Fuel Fleet 
Program, and the use of clean alternative fuels required to be made 
available in California by the California Pilot Program.
    (2) Incentives may include:
    (i) A registration fee on non-CFVs of at least 1 percent of the 
total cost of the vehicle. These fees shall be used to:
    (A) Provide financial incentives to purchasers of CFVs and vehicle 
dealers who sell high volumes or high percentages of CFVs.
    (B) Defray administrative costs of the incentive program.
    (ii) Exemptions for CFVs from high occupancy vehicle or trip 
reduction requirements.
    (iii) Preferences for CFVs in the use of existing parking places.
    18. The tables to subpart B of part 88 are revised to read as 
follows:

Tables to Subpart B of Part 88

     Table B-1.--Credit Table for Phase I Vehicle Equivalents for Light-Duty Vehicles and Light-Duty Trucks     
                 Table B-1.1.--Credit Generation: Selling More Clean-Fuel Vehicles Than Required                
                                  [Phase I: Effective Through 2000 Model-Year]                                  
----------------------------------------------------------------------------------------------------------------
                                                    LDT 6000 gvwr    LDT >6000 gvwr   LDT >6000 gvwr   LDT >6000 
 Vehicle emission category   eq>6000 gvwr3750 lvw 3750  >3750 alvw 5750
                                 eq>3750 lvw      thn-eq>5750 lvw       alvw          thn-eq>5750       alvw    
                                                                                          alvw                  
----------------------------------------------------------------------------------------------------------------
TLEV.......................             1.00               1.28            (\1\)            (\1\)          (\1\)
LEV........................             1.40               1.76             1.00             1.28           1.56
ULEV.......................             1.68               2.16             1.40             1.76           2.18
ZEV........................             2.00               2.56             2.00             2.56          3.12 
----------------------------------------------------------------------------------------------------------------


                  Table B-1.2.--Credit Generation: Selling More Stringent Clean Fuel Vehicles                   
----------------------------------------------------------------------------------------------------------------
                              LDV & LDT 6000      eq>6000 gvwr    LDT >6000 gvwr   LDT >6000 gvwr    LDT 3750 lvw 3750  >3750 alvw 6000 gvwr 
                               eq>3750 lvw    thn-eq>5750 lvw       alvw          thn-eq>5750      >5750 alvw   
                                                                                      alvw                      
----------------------------------------------------------------------------------------------------------------
TLEV.......................           0.00             0.00            (\1\)            (\1\)            (\1\)  
LEV........................            .40              .48             0.00             0.00             0.00  
ULEV.......................            .68              .88              .40              .48              .62  
ZEV........................           1.00             1.28             1.00             1.28            1.56   
----------------------------------------------------------------------------------------------------------------


                       Table B-1.3.--Credit Needed in Lieu of Selling Clean-Fuel Vehicle                        
----------------------------------------------------------------------------------------------------------------
                               LDV & LDT 6000    eq>6000 gvwr >3750   LDT >6000 gvwr   LDT >6000 gvwr   LDT >6000 
  Vehicle emission category    gvwr 5750  3750  >3750 alvw 5750
                                eq>3750 lvw            lvw              alvw          thn-eq>5750       alvw    
                                                                                          alvw                  
----------------------------------------------------------------------------------------------------------------
TLEV........................           1.00               1.28             (\1\)            (\1\)          (\1\)
LEV.........................  ...............  ..................           1.00             1.28          1.56 
----------------------------------------------------------------------------------------------------------------
\1\ There is no TLEV category for this vehicle class.                                                           


    Table B-2.--Credit Table for Phase II: Vehicle Equivalents for Light-Duty Vehicles and Light-Duty Trucks    
                 Table B-2.1.--Credit Generation: Selling More Clean-Fuel Vehicles Than Required                
                             [Phase II: effective 2001 and subsequent model-years]                              
----------------------------------------------------------------------------------------------------------------
                                  LDV & LDT 6000      eq>6000 gvwr    LDT >6000 gvwr   LDT >6000 gvwr   LDT >6000 
   Vehicle emission category      gvwr 3750 lvw 3750  >3750 alvw 5750
                                   eq>3750 lvw    thn-eq>5750 lvw       alvw          thn-eq>5750       alvw    
                                                                                          alvw                  
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.26             0.71             0.91           1.11
ULEV...........................           1.20             1.54             1.00             1.26           1.56
ZEV............................           1.43             1.83             1.43             1.83          2.23 
----------------------------------------------------------------------------------------------------------------


                  Table B-2.2.--Credit Generation: Selling More Stringent Clean-Fuel Vehicles                   
----------------------------------------------------------------------------------------------------------------
                                  LDV & LDT 6000      eq>6000 gvwr    LDT >6000 gvwr   LDT >6000 gvwr   LDT >6000 
   Vehicle emission category      gvwr 3750 lvw 3750  >3750 alvw 5750
                                   eq>3750 lvw    thn-eq>5750 lvw       alvw          thn-eq>5750       alvw    
                                                                                          alvw                  
----------------------------------------------------------------------------------------------------------------
LEV............................           0.00             0.00             0.00             0.00           0.00
ULEV...........................            .20              .28              .29              .34            .45
ZEV............................            .43              .57              .71              .91          1.11 
----------------------------------------------------------------------------------------------------------------


                       Table B-2.3.--Credit Needed in Lieu of Selling Clean-Fuel Vehicles                       
----------------------------------------------------------------------------------------------------------------
                                  LDV & LDT 6000      eq>6000 gvwr    LDT >6000 gvwr   LDT >6000 gvwr   LDT >6000 
    Vehicle emissioncategory      gvwr 3750 lvw 3750  >3750 alvw 5750
                                   eq>3750 lvw    thn-eq>5750 lvw       alvw          thn-eq>5750       alvw    
                                                                                          alvw                  
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.26             0.71             0.91          1.11 
----------------------------------------------------------------------------------------------------------------

    19. Section 88.302-94 of subpart C is amended by adding two new 
definitions in alphabetical order and revising a third definition to 
read as follows:


Sec. 88.302-94  Definitions.

* * * * *
    Clean-fuel vehicle aftermarket conversion certifier means the 
business or entity that obtains a certificate of conformity with the 
clean-fuel vehicle standards and requirements for a vehicle/engine 
conversion configuration pursuant to the requirements of 40 CFR part 86 
and this part 88.
* * * * *
    Conversion configuration means any combination of vehicle/engine 
conversion hardware and a base vehicle of a specific engine family.
* * * * *
    Owned or operated, leased or otherwise controlled by such person 
means either of the following:
    (1) Such person holds the beneficial title to such vehicle; or
    (2) Such person uses the vehicle for transportation purposes 
pursuant to a contract or similar arrangement, the term of such 
contract or similar arrangement is for a period of 120 days or more, 
and such person has control over the vehicle pursuant to the definition 
of control of this section.
* * * * *
    20. A new Sec. 88.305-94 is added to subpart C to read as follows:


Sec. 88.305-94  Clean-fuel fleet vehicle labeling requirements for 
heavy-duty vehicles.

    (a) All clean-fuel heavy-duty engines and vehicles used as LEVs, 
ULEVs, and ZEVs that are also regulated under 40 CFR part 86 shall 
comply with the labeling requirements of 40 CFR 86.095-35 (or later 
applicable sections), and shall also include an unconditional statement 
on the label indicating that the engine or vehicle is a LEV, ULEV, or 
ZEV, and meets all of the applicable requirements of this part 88.
    (b) All heavy-duty clean-fuel fleet vehicles not regulated under 40 
CFR part 86 shall have a permanent legible label affixed to the engine 
or vehicle in a readily visible location, which contains the following 
information:
    (1) The label heading: vehicle emissions classification information 
(e.g., ``This is a Low Emission Vehicle'');
    (2) Full corporate name and trademark of the manufacturer;
    (3) A statement that this engine or vehicle meets all applicable 
requirements of the U.S. Environmental Protection Agency clean-fuel 
fleet vehicle program, as described in this part 88, but not 
necessarily those requirements found in 40 CFR part 86.
    21. A new Sec. 88.306-94 is added to subpart C to read as follows:


Sec. 88.306-94  Requirements for a converted vehicle to qualify as a 
clean-fuel fleet vehicle.

    (a) For purposes of meeting the requirements of section 246 of the 
Clean Air Act or the SIP revisions, conversions of engines or vehicles 
which satisfy the requirements of this section shall be treated as a 
purchase of a clean-fuel vehicle under subpart C of this part.
    (b) The engine or vehicle must be converted using a conversion 
configuration which has been certified according to the provisions of 
40 CFR part 86 using applicable emission standards and other provisions 
from part 88 for clean-fuel engines and vehicles. The following 
requirements will also apply:
    (1) If the installation of the certified conversion configuration 
is performed by an entity other than aftermarket conversion certifier, 
the aftermarket conversion certifier shall submit a list of such 
installers to the Administrator. Additional installers must be added to 
this list and the revised list submitted to the Administrator within 5 
working days from the time they are authorized to perform conversion 
installations by the clean-fuel vehicle aftermarket conversion 
certifier.
    (2) If the installation of the certified conversion configuration 
is performed by an entity other than the certificate holder, the 
certificate holder shall provide instructions for installation of the 
aftermarket conversion system to installers listed on the certificate, 
and ensure that the systems are properly installed.
    (3) For the purpose of determining whether certification under the 
Small-Volume Manufacturers Certification Program pursuant to the 
requirements of 40 CFR 86.094-14 is permitted, the 10,000 sales volume 
limit in 40 CFR 86.094-14(b)(1) shall apply to the aggregate total of 
all vehicles sold by a given clean-fuel vehicle aftermarket conversion 
certifier at all of its installation facilities without regard to the 
model year of the original vehicles upon which the conversion 
configurations are based. All vehicle sales will be included in 
calculating the clean-fuel vehicle aftermarket conversion certifier's 
aggregate total, including vehicle conversions performed under the 
requirements of this part 88, and all other vehicle conversions. 
Vehicle conversions not covered by this part 88 will be counted if they 
occur within the model year for which certification is sought.
    (4) Clean-fuel vehicle aftermarket conversion certifiers that are 
subject to the post-installation emissions testing requirements in 
paragraph (c) of this section and who will satisfy these requirements 
by using the two speed idle test procedure detailed in paragraph 
(c)(2)(ii) of this section must conduct the following testing at the 
time of certification in order to generate the required certification 
CO emissions reference values. The certification CO emissions reference 
values generated must be submitted to the Administrator at the time of 
application for certification.
    (i) For dual and flexible fuel vehicles, certification reference 
values must be generated for each certification test fuel required for 
exhaust emissions testing pursuant to 40 CFR 86.113 or 40 CFR 86.1313.
    (ii) For light-duty vehicles and light-duty trucks the test fuels 
used during the emissions testing required by paragraph (b)(3) of this 
section must comply with the fuel specifications for exhaust emissions 
testing found in 40 CFR 86.113. For heavy-duty engines the test fuels 
used during the emissions testing required by paragraph (b)(3) of this 
section must comply with the fuel specifications for exhaust emissions 
testing found in 40 CFR 86.1313.
    (iii) Single, consecutive idle mode and high-speed mode segments of 
the two speed idle test must be conducted pursuant to the requirements 
of 40 CFR 85.2215 and as modified by the provisions of paragraph 
(c)(4)(ii)(D) of this section and this paragraph to determine the 
required certification CO emission reference values.
    (A) The certification CO emission reference value for the idle mode 
of the test will be the simple average of all emissions measurements 
taken during an idle mode of 90 seconds duration pursuant to the 
requirements in 40 CFR 85.2215(a).
    (B) The certification CO emission reference value for the high-
speed mode of the test will be the simple average of all emissions 
measurements taken during a high-speed mode of 180 seconds duration 
pursuant to the requirements in 40 CFR 85.2215(a).
    (c) Except as provided in paragraph (c)(1) of this section, each 
converted vehicle manufactured by a clean-fuel vehicle aftermarket 
conversion certifier with aggregate sales of less than 10,000 converted 
vehicles within a given calendar year must satisfy the post-
installation emissions testing requirements of paragraph (c)(2) of this 
section. If a vehicle fails to satisfy the emissions testing 
requirements such vehicle may not be considered a clean- fuel vehicle 
until such noncompliance is rectified and compliance is demonstrated.
    (1) A clean-fuel vehicle aftermarket conversion certifier with 
estimated sales of 300 or fewer engines and vehicles in a calendar year 
and which sells or converts vehicles outside of a non-attainment area 
(as classified under subpart D of Title I) which has an inspection and 
maintenance program that includes a test of carbon monoxide emissions 
may submit a request to the Administrator for an exemption from the 
post-installation emission test requirements of paragraph (c) of this 
section. If granted, such an exemption would apply to converted 
vehicles that have the conversion installation performed outside of a 
nonattainment area which has an inspection and maintenance program that 
includes a test of carbon monoxide emissions.
    (i) The request for exemption submitted to the Administrator must 
include the following:
    (A) The estimated number of engines and vehicles that will be 
converted in the calendar year.
    (B) Sufficient information to demonstrate that complying with the 
post-installation emission test requirement represents a severe 
financial hardship.
    (C) A description of any emission related quality control 
procedures used.
    (ii) Within 120 days of receipt of the application for exemption, 
the Administrator will notify the applicant either that an exemption is 
granted or that sufficient cause for an exemption has not been 
demonstrated and that all of the clean-fuel vehicle aftermarket 
conversion certifier's vehicles are subject to the post-installation 
test requirement of paragraph (c)(2) of this section.
    (iii) If the clean-fuel vehicle aftermarket conversion certifier 
granted an exemption originally estimates that 300 or fewer conversions 
would be performed in the calendar year, and then later revises the 
estimate to more than 300 for the year, the certifier shall inform the 
Administrator of such revision. A post-installation emissions test for 
each conversion performed after the estimate is revised is required 
pursuant to the requirements of paragraph (c)(2) of this section. The 
estimated number of conversions from such a clean-fuel vehicle 
aftermarket conversion certifier must be greater than 300 in the 
following calendar year.
    (2) A clean-fuel vehicle aftermarket conversion certifier with 
aggregate sales less than 10,000 converted vehicles within a given 
calendar year shall conduct post-installation emissions testing using 
either of the following test methods:
    (i) The carbon monoxide (CO) emissions of the converted vehicle 
must be determined in the manner in which CO emissions are determined 
according to the inspection and maintenance requirements applicable in 
the area in which the vehicle is converted or is expected to be 
operated.
    (A) For dual-fuel vehicles, a separate test is required for each 
fuel on which the vehicle is capable of operating. For flexible fuel 
vehicles, a single test is required on a fuel that falls within the 
range of fuel mixtures for which the vehicle was designed. The test 
fuel(s) used must be commercially available.
    (B) A converted vehicle shall be considered to meet the 
requirements of this paragraph if the vehicle's measured exhaust CO 
concentration(s) is lower than the cutpoint(s) used to determine CO 
pass/fail under the inspection and maintenance program in the area in 
which the conversion is expected to be operated.
    (1) If CO pass/fail criteria are not available for a vehicle fuel 
type then pass/fail criteria specific to gasoline use are to be used 
for vehicles of that fuel type.
    (2) [Reserved].
    (ii) The carbon monoxide (CO) emissions of the converted vehicle 
must be determined in the manner specified in the two speed idle test-
EPA 91 found in 40 CFR 85.2215. All provisions in the two speed idle 
test must be observed except as detailed in paragraph (c)(2)(ii)(D) of 
this section.
    (A) For dual and flexible fuel vehicles, a separate test is 
required for each certification test fuel required for exhaust 
emissions testing pursuant to 40 CFR 86.113 or 40 CFR 86.1313.
    (B) For light-duty vehicles and light-duty trucks the test fuels 
used during the emissions testing required by paragraph (c)(4) of this 
section must comply with the fuel specifications for exhaust emissions 
testing found in 40 CFR 86.113. For heavy-duty engines the test fuels 
used during the emissions testing required by paragraph (c)(2) of this 
section must comply with the fuel specifications for exhaust emissions 
testing found in 40 CFR 86.1313.
    (C) A converted vehicle shall be considered to meet the 
requirements of this paragraph if the following criteria are satisfied:
    (1) The vehicle's measured idle mode exhaust CO concentration(s) 
must be lower than the sum of 0.4 percent CO plus the idle mode 
certification CO emissions reference value as determined according to 
the requirements of paragraph (b)(3) of this section.
    (2) The vehicle's measured high-speed mode exhaust CO 
concentration(s) must be lower than the sum of 0.4 percent CO plus the 
high-speed certification CO emissions reference value as determined 
according to the requirements of paragraph (b)(3) of this section.
    (D) For the purposes of the post-installation emissions testing 
required by paragraph (c) of this section, the following adjustments to 
the two speed idle test-EPA 91 in 40 CFR 85.2215 are necessary.
    (1) Testing of hydrocarbon emissions and equipment associated 
solely with hydrocarbon emissions testing is not required.
    (2) The CO emissions pass/fail criteria in 40 CFR 85.2215(a)(2), 
(c)(1)(ii)(A), (c)(2)(ii)(A)(1), (c)(2)(iii)(A)(1), and (d)(3)(i) are 
to be replaced with the pass/fail criteria detailed in paragraph 
(c)(2)(ii)(C) of this section. All HC pass/fail criteria in 40 CFR 
85.2215 do not apply.
    (3) The void test criteria in 40 CFR 85.2215(a)(3) and (b)(2)(iv) 
associated with maintaining the measured concentration of CO plus 
CO2 above six percent does not apply. However, the Administrator 
may reconsider requiring that the void test criteria in 40 CFR 
85.2215(a)(3) and (b)(2)(iv) be applied, and may issue an advisory 
memorandum to this effect in the future.
    (4) The ambient temperature levels encountered by the vehicle 
during testing must comply with the specifications in 40 CFR 86.130 or 
40 CFR 86.1330.
    (d) The clean-fuel vehicle aftermarket conversion certifier shall 
be considered a manufacturer for purposes of Clean Air Act sections 206 
and 207 and related enforcement provisions, and must accept liability 
for in-use performance of all the vehicles produced under the 
certificate of conformity as outlined in 40 CFR part 85.
    (1) The useful life period for the purposes of determining the in-
use liability of the clean-fuel vehicle aftermarket conversion 
certifier shall be the original useful life of the vehicle prior to 
conversion.
    (2) [Reserved].
    (e) Tampering. (1) The conversion from an engine or vehicle capable 
of operating on gasoline or diesel fuel only to a clean-fuel engine or 
vehicle shall not be considered a violation of the tampering provisions 
of Clean Air Act section 203(a)(3), if such conversion is done pursuant 
to a conversion configuration certificate by the aftermarket conversion 
certifier or by an installer listed on the certificate.
    (2) In order to comply with the provisions of this subpart, an 
aftermarket conversion installer must:
    (i) Install a certified aftermarket conversion system for which the 
installer is listed by the certifier; and
    (ii) Perform such installation according to instructions provided 
by the aftermarket conversion certifier.
    (f) Data collection. The clean-fuel vehicle aftermarket conversion 
certifier is responsible for maintaining records of each engine and 
vehicle converted for use in the Clean Fuel Fleets program for a period 
of 5 years. The records are to include the engine or vehicle make, 
engine or vehicle model, engine or vehicle model year, and engine or 
vehicle identification number of converted engines and vehicles; the 
certification number of the conversion configuration; the brand names 
and part numbers of the parts included in the conversion configuration; 
the date of the conversion and the facility at which the conversion was 
performed; and the results of post-installation emissions testing if 
required pursuant to paragraph (c) of this section.
    22. A new Sec. 88.308-94 is added to subpart C to read as follows:


Sec. 88.308-94  Programmatic requirements for clean-fuel fleet 
vehicles.

    Multi-State nonattainment areas. The states comprising a multi-
State nonattainment area shall, to the greatest extent possible, 
promulgate consistent clean-fuel fleet vehicle programs.
    23. Section 88.311-93 of subpart C is amended by revising 
paragraphs (c) and (d) to read as follows:


Sec. 88.311-93  Emissions standards for Inherently Low-Emission 
Vehicles.

* * * * *
    (c) Light-duty vehicles and light-duty trucks. ILEVs in LDV and LDT 
classes shall have exhaust emissions which do not exceed the LEV 
exhaust emission standards for NMOG, CO, HCHO, and PM and the ULEV 
exhaust emission standards for NOX listed in Tables A104-1 through 
A104-6 for light-duty CFVs. Exhaust emissions shall be measured in 
accordance with the test procedures specified in Sec. 88.104(l). An 
ILEV must be able to operate on only one fuel, or must be certified as 
an ILEV on all fuels it can operate on. These vehicles shall also 
comply with all requirements of 40 CFR part 86 which are applicable to 
conventional gasoline-fueled, methanol-fueled, diesel-fueled, natural 
gas-fueled or liquified petroleum gas-fueled LDVs/LDTs of the same 
vehicle class and model year.
    (d) Heavy-duty vehicles. ILEVs in the HDV class shall have exhaust 
emissions with combined non-methane hydrocarbon and oxides of nitrogen 
exhaust emissions which do not exceed the exhaust emission standards in 
grams per brake horsepower-hour listed in Sec. 88.105. Exhaust 
emissions shall be measured in accordance with the test procedures 
specified in Sec. 88.105(d). An ILEV must be able to operate on only 
one fuel, or must be certified as an ILEV on all fuels it can operate 
on. These vehicles shall also comply with all requirements of 40 CFR 
part 86 which are applicable in the case of conventional gasoline-
fueled, methanol-fueled, diesel-fueled, natural gas-fueled or liquified 
petroleum gas-fueled HDVs, of the same weight class and model year.
* * * * *
     24. The tables to subpart C of part 88 are amended by removing 
tables C93-6, C93-6.1, and C93-6.2, and by revising tables C94-1, C94-
1.1, C94-1.2, C94-1.3, C94-2, C94-2.1, C94-2.2, C94-2.3, C94-3, C94-
3.1, C94-3.2, and C94-3.3 to read as follows:

Tables to Subpart C of Part 88 

  Table C94-1.--Fleet Credit Table Based on Reduction in NMOG. Vehicle Equivalents for Light-Duty Vehicles and  
                                                Light-Duty Trucks                                               
      Table C94-1.1.--Credit Generation: Purchasing More Clean-Fuel Vehicles Than Required by the Mandate       
----------------------------------------------------------------------------------------------------------------
                               LDV, LDT 6000    LDT6000  LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
            NMOG               GVWR, 3750 LVW   3750  >3750 ALVW 3750 LVW      5750        ALVW          thn-eq>5750    >K5750 ALVW
                                                      LVW                                ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV.........................           1.00               1.26              0.71             0.91           1.11
ULEV........................           1.20               1.54              1.00             1.29           1.47
ZEV.........................           1.43               1.83              1.43             1.83           2.23
----------------------------------------------------------------------------------------------------------------


                Table C94-1.2.--Credit Generation: Purchasing a ULEV or ZEV To Meet the Mandate                 
----------------------------------------------------------------------------------------------------------------
                                 LDV, LDT 6000      eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
             NMOG                GVWR, 3750 LVW 3750  >3750 ALVW, 5750
                                  eq>3750 LVW    thn-eq>5750 LVW        ALVW          thn-eq>5750        ALVW   
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV...........................           0.00              0.00             0.00             0.00           0.00
ULEV..........................           0.20              0.29             0.29             0.34           0.45
ZEV...........................           0.43              0.57             0.71             0.91           1.11
----------------------------------------------------------------------------------------------------------------


                 Table C94-1.3.--Credit Needed in Lieu of Purchasing a LEV To Meet the Mandate                  
----------------------------------------------------------------------------------------------------------------
                              LDV, LDT 6000     eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,  LDT >6000 GVWR,
           NMOG               GVWR, 3750 LVW 3750  >3750 ALVW 5750
                               eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750          ALVW     
                                                                                     ALVW                       
----------------------------------------------------------------------------------------------------------------
LEV........................           1.00             1.26             0.71             0.91             1.11  
----------------------------------------------------------------------------------------------------------------


Table C94-2.--Fleet Credit Table Based on Reduction in NMOG+NOx. Vehicle Equivalents for Light-Duty Vehicles and
                                                Light-Duty Trucks                                               
      Table C94-2.1.--Credit Generation: Purchasing More Clean-Fuel Vehicles Than Required by the Mandate       
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
            NMOG+NOX              GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750        ALVW   
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.39             0.33             0.43           0.52
ULEV...........................           1.09             1.52             1.00             1.39           2.06
ZEV............................           1.73             2.72             1.73             2.72           3.97
----------------------------------------------------------------------------------------------------------------


                Table C94-2.2.--Credit Generation: Purchasing a ULEV or ZEV To Meet the Mandate                 
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
           NMOG+NOX               GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750        ALVW   
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           0.00             0.00             0.00             0.00           0.00
ULEV...........................           0.09             0.13             0.67             0.96           1.54
ZEV............................           0.73             1.34             1.40             2.29           3.45
----------------------------------------------------------------------------------------------------------------


                 Table C94-2.3.--Credit Needed in Lieu of Purchasing a LEV To Meet the Mandate                  
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,    eq>6000 GVWR,   LDT >6000 GVWR,   LDT >6000 
            NMOG+NOX              GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750       ALVW    
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.39             0.33             0.43           0.52
----------------------------------------------------------------------------------------------------------------


   Table C94-3.--Fleet Credit Table Based on Reduction in Carbon Monoxide. Vehicle Equivalents for Light-Duty   
                                         Vehicles and Light-Duty Trucks                                         
      Table C94-3.1.--Credit Generation: Purchasing More Clean-Fuel Vehicles Than Required by the Mandate       
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,    eq>6000 GVWR,   LDT >6000 GVWR,   LDT >6000 
              CO                  GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750       ALVW    
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.00             1.00             1.00           1.00
ULEV...........................           2.00             2.29             2.00             2.29           2.47
ZEV............................           3.00             3.59             3.00             3.59          3.94 
----------------------------------------------------------------------------------------------------------------


                Table C94-3.2.--Credit Generation: Purchasing a ULEV or ZEV To Meet the Mandate                 
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
              CO                  GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750       ALVW    
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           0.00             0.00             0.00             0.00           0.00
ULEV...........................           1.00             1.00             1.00             1.00           1.00
ZEV............................           2.00             2.29             2.00             2.29          2.47 
----------------------------------------------------------------------------------------------------------------


                 Table C94-3.3.--Credit Needed in Lieu of Purchasing a LEV To Meet The Mandate                  
----------------------------------------------------------------------------------------------------------------
                                  LDV, LDT 6000     eq>6000 GVWR,   LDT >6000 GVWR,  LDT >6000 GVWR,   LDT >6000 
              CO                  GVWR, 3750 LVW 3750  >3750 ALVW 5750
                                   eq>3750 LVW    thn-eq>5750 LVW       ALVW          thn-eq>5750       ALVW    
                                                                                         ALVW                   
----------------------------------------------------------------------------------------------------------------
LEV............................           1.00             1.00             1.00             1.00          1.00 
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 94-22132 Filed 9-29-94; 8:45 am]
BILLING CODE 6560-50-P