[Federal Register Volume 66, Number 194 (Friday, October 5, 2001)]
[Proposed Rules]
[Pages 51098-51272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23591]



[[Page 51097]]

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Part II





Environmental Protection Agency





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40 CFR Part 89, 90, 91, etc.



Control of Emissions From Nonroad Large Spark Ignition Engines and 
Recreational Engines (Marine and Land-Based); Proposed Rule

Federal Register / Vol. 66, No. 194 / Friday, October 5, 2001 / 
Proposed Rules

[[Page 51098]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 89, 90, 91, 94, 1048, 1051, 1065, and 1068

[AMS-FRL-7058-8]
RIN 2060-AI11


Control of Emissions From Nonroad Large Spark Ignition Engines 
and Recreational Engines (Marine and Land-Based)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this action, we are proposing emission standards for 
several groups of nonroad engines that cause or contribute to air 
pollution but that have yet to be regulated by EPA. These engines 
include large spark-ignition engines such as those used in forklifts 
and airport tugs; recreational vehicles using spark-ignition engines 
such as off-highway motorcycles, all-terrain vehicles, and snowmobiles; 
and recreational marine diesel engines. Nationwide, engines and 
vehicles in these various categories contribute to ozone, CO, and PM 
nonattainment. These pollutants cause a range of adverse health 
effects, especially in terms of respiratory impairment and related 
illnesses. The proposed standards will help states achieve air quality 
standards. In addition, the proposed standards will help reduce acute 
exposure to CO, air toxics, and PM for operators and other people close 
to the emission source. They will also help address other environmental 
problems, such as visibility impairment in our national parks.
    We expect that manufacturers will be able to maintain or even 
improve the performance of their products when producing engines and 
equipment meeting the proposed standards. In fact, many engines will 
substantially reduce their fuel consumption, partially or completely 
offsetting any costs associated with the emission standards. Overall, 
we estimate the gasoline-equivalent fuel savings associated with the 
anticipated changes in technology resulting from this rule would be 
about 730 million gallons per year once the program is fully phased in. 
The proposal also has several provisions to address the unique 
limitations of small-volume manufacturers.

DATES: Comments: Send written comments on this proposed rule by 
December 19, 2001. See Section X.B for more information about written 
comments.
    Hearings: We will hold a public hearing in the Washington, DC area 
on October 24. We will hold a second public hearing on October 30 in 
Denver, CO. See Section X.B for more information about public hearings.

ADDRESSES: Comments: You may send written comments in paper form or by 
e-mail. We must receive them by the date indicated under DATES above. 
Send paper copies of written comments (in duplicate if possible) to the 
contact person listed below. You may also submit comments via e-mail to 
``[email protected].'' In your correspondence, refer to Docket A-2000-01. 
See Section X.B for more information on comment procedures.
    Docket: EPA's Air Docket makes materials related to this rulemaking 
available for review in Public Docket No. A-2000-01 at the following 
address: U.S. Environmental Protection Agency (EPA), Air Docket (6102), 
Room M-1500 (on the ground floor in Waterside Mall), 401 M Street, SW., 
Washington, DC 20460 between 8 a.m. to 5:30 p.m., Monday through 
Friday, except on government holidays. You can reach the Air Docket by 
telephone at (202) 260-7548, and by facsimile (202) 260-4400. We may 
charge a reasonable fee for copying docket materials, as provided in 40 
CFR part 2.
    Hearings: We will hold a public hearing on October 24, 2001 at 
Washington Dulles Airport Marriott, Dulles, VA 20166 (703-471-9500). We 
will hold a second public hearing October 30, 2001 at Doubletree Hotel, 
3203 Quebec Street, Denver, CO 80207 (303-321-3333). If you want to 
testify at a hearing, notify the contact person listed below at least 
ten days before the date of the hearing. See Section X.B for more 
information on the public-hearing procedures.

FOR FURTHER INFORMATION CONTACT: Margaret Borushko, U.S. EPA, National 
Vehicle and Fuels Emission Laboratory, 2000 Traverwood, Ann Arbor, MI 
48105; Telephone (734) 214-4334; Fax: (734) 214-4816; E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Regulated Entities

    This proposed action would affect companies that manufacture or 
introduce into commerce any of the engines or vehicles that would be 
subject to the proposed standards. These include: spark-ignition 
industrial engines such as those used in forklifts and airport tugs; 
recreational vehicles such as off-highway motorcycles, all-terrain 
vehicles, and snowmobiles; and recreational marine diesel engines. This 
proposed action would also affect companies buying engines for 
installation in nonroad equipment. There are also proposed requirements 
that apply to those who rebuild any of the affected nonroad engines. 
Regulated categories and entities include:

------------------------------------------------------------------------
                            NAICS                Examples of potentially
        Category           codes a    SIC codes     regulated entities
------------------------------------------b-----------------------------
Industry...............      333618        3519  Manufacturers of new
                                                  nonroad SI engines,
                                                  new marine engines.
      Do...............      333111        3523  Manufacturers of farm
                                                  equipment.
      Do...............      333112        3531  Manufacturers of
                                                  construction
                                                  equipment,
                                                  recreational marine
                                                  vessels.
      Do...............      333924        3537  Manufacturers of
                                                  industrial trucks.
      Do...............      811310        7699  Engine repair and
                                                  maintenance.
      Do...............      336991  ..........  Motorcycles and
                                                  motorcycle parts
                                                  manufacturers.
      Do...............      336999  ..........  Snowmobiles and all-
                                                  terrain vehicle
                                                  manufacturers.
      Do...............      421110  ..........  Independent Commercial
                                                  Importers of Vehicles
                                                  and Parts.
------------------------------------------------------------------------
a North American Industry Classification System (NAICS).
b Standard Industrial Classification (SIC) system code.

    This list is not intended to be exhaustive, but rather provides a 
guide regarding entities likely to be regulated by this action. To 
determine whether particular activities may be regulated by this 
action, you should carefully examine the proposed regulations. You may 
direct questions regarding the applicability of this action to the 
person listed in FOR FURTHER INFORMATION CONTACT.

[[Page 51099]]

Obtaining Electronic Copies of the Regulatory Documents

    The preamble, regulatory language, Draft Regulatory Support 
Document, and other rule documents are also available electronically 
from the EPA Internet Web site. This service is free of charge, except 
for any cost incurred for internet connectivity. The electronic version 
of this proposed rule is made available on the day of publication on 
the primary web site listed below. The EPA Office of Transportation and 
Air Quality also publishes Federal Register notices and related 
documents on the secondary web site listed below.

1. http://www.epa.gov/docs/fedrgstr/EPA-AIR/ (either select desired 
date or use Search feature)
2. http://www.epa.gov/otaq/ (look in What's New or under the specific 
rulemaking topic)

    Please note that due to differences between the software used to 
develop the documents and the software into which the document may be 
downloaded, format changes may occur.

Table of Contents

I. Introduction
    A. Overview
    B. How Is This Document Organized?
    C. What Categories of Vehicles and Engines Are Covered in This 
Proposal?
    D. What Requirements Are We Proposing?
    E. Why Is EPA Taking This Action?
    F. Putting This Proposal Into Perspective
II. Public Health and Welfare Effects of Emissions From Covered 
Engines
    A. Background
    B. What Are the Public Health and Welfare Effects Associated 
With Emissions From Nonroad Engines Subject to the Proposed 
Standards?
    C. What Is the Inventory Contribution From the Nonroad Engines 
and Vehicles That Would Be Subject to This Proposal?
    D. Regional and Local-Scale Public Health and Welfare Effects
III. Nonroad: General Concepts
    A. Scope of Application
    B. Emission Standards and Testing
    C. Demonstrating Compliance
    D. Other Concepts
IV. Large SI Engines
    A. Overview
    B. Large SI Engines Covered by This Proposal
    C. Proposed Standards
    D. Proposed Testing Requirements and Supplemental Emission 
Standards
    E. Special Compliance Provisions
    F. Technological Feasibility of the Standards
V. Recreational Marine Diesel Engines
    A. Overview
    B. Engines Covered by This Proposal
    C. Proposed Standards for Marine Diesel Engines
    D. Proposed Testing Requirements
    E. Special Compliance Provisions
    F. Technical Amendments
    G. Technological Feasibility
VI. Recreational Vehicles and Engines
    A. Overview
    B. Engines Covered by this Proposal
    C . Proposed Standards
    D. Proposed Testing Requirements
    E. Special Compliance Provisions
    F. Technological Feasibility of the Standards
VII. General Nonroad Compliance Provisions
    A. Miscellaneous Provisions (Part 1068, Subpart A)
    B. Prohibited Acts and Related Requirements (Part 1068, Subpart 
B)
    C. Exemptions (Part 1068, Subpart C)
    D. Imports (Part 1068, Subpart D)
    E. Selective Enforcement Audit (Part 1068, Subpart E)
    F. Defect Reporting and Recall (Part 1068, Subpart F)
    G. Public Hearings (Part 1068, Subpart G)
VIII. General Test Procedures
    A. General Provisions
    B. Laboratory Testing Equipment
    C. Laboratory Testing Procedures
IX. Projected Impacts
    A. Environmental Impact
    B. Economic Impact
    C. Cost per Ton of Emissions Reduced
    D. Additional Benefits
X. Public Participation
    A. How Do I Submit Comments?
    B. Will There Be a Public Hearing?
XI. Administrative Requirements
    A. Administrative Designation and Regulatory Analysis (Executive 
Order 12866)
    B. Regulatory Flexibility Act
    C. Paperwork Reduction Act
    D. Intergovernmental Relations
    E. National Technology Transfer and Advancement Act
    F. Protection of Children (Executive Order 13045)
    G. Federalism (Executive Order 13132)
    H. Energy Effects (Executive Order 13211)
    I. Plain Language

I. Introduction

A. Overview

    Air pollution is a serious threat to the health and well-being of 
millions of Americans and imposes a large burden on the U.S. economy. 
Ground-level ozone, carbon monoxide, and particulate matter are linked 
to potentially serious respiratory health problems, especially 
respiratory effects and environmental degradation, including visibility 
impairment in our precious national parks. Over the past quarter 
century, state and federal representatives have established emission-
control programs that significantly reduce emissions from individual 
sources. Many of these sources now pollute at only a small fraction of 
their precontrol rates. This proposal further addresses these air-
pollution concerns by proposing national emission standards for several 
types of nonroad engines and vehicles that are currently unregulated. 
These include industrial spark-ignition engines such as those used in 
forklifts and airport tugs; recreational vehicles such as off-highway 
motorcycles, all-terrain vehicles, and snowmobiles; and recreational 
marine diesel engines.\1\ The proposed standards are a continuation of 
the process of establishing standards for nonroad engines and vehicles, 
as required by Clean Air Act section 213(a)(3). All the nonroad engines 
subject to this proposal are still unregulated emission sources.
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    \1\ Diesel-cycle engines, referred to simply as ``diesel 
engines'' in this document, may also be referred to as compression-
ignition (or CI) engines. These engines typically operate on diesel 
fuel, but other fuels may also be used. Otto-cycle engines (referred 
to here as spark-ignition or SI engines) typically operate on 
gasoline, liquefied petroleum gas, or natural gas.
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    Nationwide, these engines are a significant source of mobile-source 
air pollution. They currently account for about 13 percent of mobile-
source hydrocarbon (HC) emissions, 6 percent of mobile-source carbon 
monoxide (CO) emissions, 3 percent of mobile-source oxides of nitrogen 
( NOX) emissions, and 1 percent of mobile-source particulate 
matter (PM) emissions.\2\ The proposed standards will reduce exposure 
to these emissions and help avoid a range of adverse health effects 
associated with ambient ozone, CO, and PM levels, especially in terms 
of respiratory impairment and related illnesses. In addition, the 
proposed standards will help reduce acute exposure to CO, air toxics, 
and PM for persons who operate or who work with or are otherwise active 
in close proximity to these engines. They will also help address other 
environmental problems associated with these engines, such as 
visibility impairment in our national parks and other wilderness areas 
where recreational vehicles and marine engines are often used.
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    \2\ While we characterize emissions of hydrocarbons, this can be 
used as a surrogate for volatile organic compounds (VOC), which is a 
broader group of compounds.
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    This proposal follows a final finding published on December 7, 2000 
(65 FR 76790). Under this finding, EPA found that industrial spark-
ignition (SI) engines rated above 19 kilowatts (kW), as well as all 
land-based recreational nonroad spark-ignition engines, cause or 
contribute to air quality nonattainment in more than one ozone or 
carbon monoxide (CO) nonattainment area. We also found that particulate 
matter (PM) emissions from these engines cause or contribute to air 
pollution that may reasonably be anticipated to endanger public health 
or welfare.
    This proposal also follows EPA's Advance Notice of Proposed

[[Page 51100]]

Rulemaking (ANRPM) published on December 7, 2000 (65 FR 76797). In that 
Advance Notice, we provided an initial overview of possible regulatory 
strategies for the nonroad vehicles and engines and invited early input 
to the process of developing standards. We received comments on the 
Advance Notice from a wide variety of stakeholders, including the 
engine industry, the equipment industry, various governmental bodies, 
environmental groups, and the general public. The Advance Notice, the 
related comments, and other new information provide the framework for 
this proposal.

B. How Is This Document Organized?

    This proposal covers engines and vehicles that vary in design and 
use, and many readers may be interested in only one or two of the 
applications. For the purpose of this proposal, we have chosen to group 
engines by common application (e.g., recreational land-based engines, 
marine engines, large spark-ignition engines used in commercial 
applications). We have attempted to organize the document in a way that 
allows each reader to focus on the applications of particular interest. 
The Air Quality discussion in Section II is general in nature, however, 
and applies to all the categories covered by this proposal.
    The next four sections contain our proposal for the nonroad engines 
that are the subject of this action. Sections III contains some general 
concepts that are relevant to all of the nonroad engines covered by 
this proposal. Section IV through VI present information specific to 
each of the nonroad applications covered by the proposal, including 
standards, effective dates, testing information, and other specific 
requirements.
    Sections VII and VIII describe a wide range of compliance and 
testing provisions that apply generally to engines and vehicles from 
all the nonroad engine and vehicle categories included in this 
proposal. Several of these provisions apply not only to manufacturers, 
but also to equipment manufacturers installing certified engines, 
remanufacturing facilities, operators, and others. Therefore, all 
affected parties should read the information contained in this section.
    Section IX summarizes the projected impacts and a discussion of the 
benefits of this proposal. Finally, Sections X and XI contain 
information about public participation, how we satisfied our 
administrative requirements, and the statutory provisions and legal 
authority for this proposal.
    The remainder of this Section I summarizes important background 
information about this proposal, including the engines covered, the 
proposed standards, and why we are proposing them.

C. What Categories of Vehicles and Engines Are Covered in This 
Proposal?

    This proposal presents regulatory strategies for new nonroad 
vehicles and engines that have yet to be regulated under EPA's nonroad 
engine programs. This proposal covers the following engines:
     Land-based spark-ignition recreational engines, including 
those used in snowmobiles, off-highway motorcycles, and all-terrain 
vehicles. For the purpose of this proposal, we are calling this group 
of engines ``recreational vehicles,'' even though all-terrain vehicles 
can be used for commercial purposes.
     Land-based spark-ignition engines rated over 19 kW, 
including engines used in forklifts, generators, airport tugs, and 
various farm, construction, and industrial equipment. This category 
also includes auxiliary marine engines, but does not include engines 
used in recreational vehicles. For the purpose of this proposal, we are 
calling this group of engines ``Large SI engines.''
     Recreational marine diesel engines.
    This proposal covers new engines that are used in the United 
States, whether they are made domestically or imported.\3\ A more 
detailed discussion of the meaning of the terms ``new,'' ``imported,'' 
as well as other terms that help define the scope of application of 
this proposal, is contained in Section III of this preamble.
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    \3\ For this proposal, we consider the United States to include 
the States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, Guam, 
American Samoa, the U.S. Virgin Islands, and the Trust Territory of 
the Pacific Islands.
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    We intended to include in this proposal emission standards for two 
additional vehicle categories: new exhaust emission standards for 
highway motorcycles and new evaporative emission standards for marine 
vessels powered by spark-ignition engines. Proposals for these two 
categories are not included in the September 14 deadline mandated by 
the courts, as is the case for the remaining contents that appear in 
today's proposed rule. We are committed to issue proposals regarding 
these categories within the next two to three months. Interested 
parties will have an opportunity to comment on issues associated with 
the proposed standards for these two categories during the public 
review period that will begin after a subsequent proposal or proposals 
are issued.

D. What Requirements Are We Proposing?

    The fundamental requirement for engines under Clean Air Act section 
213 is to meet EPA's emission standards. The Act requires that 
standards achieve the greatest degree of emission reduction achievable 
through the application of technology that will be available, giving 
appropriate consideration to cost, noise, energy, and safety factors. 
Other requirements such as applying for certification, labeling 
engines, and meeting warranty requirements define a process for 
implementing the proposed program in an effective way.
    With regard to Large SI engines, we are proposing a two-phase 
program. The first phase of the standards, to go into effect in 2004, 
are the same as those recently adopted by the California Air Resources 
Board. These standards will reduce combined HC and NOX 
emissions by nearly 75 percent, based on a steady-state test. In 2007, 
we propose to supplement these standards by setting limits that would 
require optimizing the same technologies but would be based on a 
transient test cycle. New requirements for evaporative emissions and 
engine diagnostics would also start in 2007.
    For recreational vehicles, we are proposing emission standards for 
snowmobiles separately from off-highway motorcycles and all-terrain 
vehicles. For snowmobiles, we are proposing a first phase of standards 
for HC and CO emissions based on the use of clean carburetion or 2-
stroke electronic fuel injection (EFI) technology, and a second phase 
of emission standards for snowmobiles that would involve significant 
use of direct fuel injection 2-stroke technology, as well as possible 
limited conversion to 4-stroke engines. For off highway motorcycles and 
all-terrain vehicles, we are proposing standards that would result in a 
50-percent reduction and is based mainly on moving these engines from 
2-stroke to 4-stroke technology. In addition, we are proposing a second 
phase of standards for all-terrain vehicles that would require some 
catalyst use.
    We are also proposing voluntary Blue Sky Series emission standards 
for recreational marine diesel engines and industrial spark-ignition 
engines. Blue Sky Series emission standards are intended to encourage 
the introduction and more widespread use of low-emission technologies. 
Manufacturers could be motivated to exceed emission

[[Page 51101]]

requirements either to gain early experience with certain technologies 
or as a response to market demand or local government programs. For 
recreational vehicles, we are proposing separate voluntary standards 
based more on providing consumers with an option of buying low-emission 
models.

E. Why Is EPA Taking This Action?

    There are important public health and welfare reasons supporting 
the standards proposed in this document. As described in Section II.B, 
these engines contribute to air pollution which causes public health 
and welfare problems. Emissions from these engines contribute to ground 
level ozone and ambient CO and PM levels. Exposure to ground level 
ozone, CO, and PM can cause serious respiratory problems. These 
emissions also contribute to other serious environmental problems, 
including visibility impairment.
    We believe existing technology that can be applied to these engines 
would reduce emissions of these harmful pollutants. Manufacturers can 
reduce 2-stroke engine emissions by improving fuel management and 
calibration. In addition, many of the existing 2-stroke engines in 
these categories can be converted to 4-stroke technology. Finally, 
there are modifications that can be made to 4-stroke engines, often 
short of requiring catalysts, that can reduce emissions even further.

F. Putting This Proposal Into Perspective

    This proposal should be considered in the broader context of EPA's 
nonroad emission-control programs; state-level programs, particularly 
in California; and international efforts. Each of these are described 
in more detail below.
1. EPA's Nonroad Emission-Control Programs
    a. EPA's nonroad process. Clean Air Act section 213(a)(1) directs 
us to study emissions from nonroad engines and vehicles to determine, 
among other things, whether these emissions ``cause, or significantly 
contribute to, air pollution that may reasonably be anticipated to 
endanger public health or welfare.'' Section 213(a)(2) further required 
us to determine whether emissions of CO, VOC, and NOX from 
all nonroad engines significantly contribute to ozone or CO emissions 
in more than one nonattainment area. If we determine that emissions 
from all nonroad engines were significant contributors, section 
213(a)(3) then requires us to establish emission standards for classes 
or categories of new nonroad engines and vehicles that in our judgment 
cause or contribute to such pollution. We may also set emission 
standards under section 213(a)(4) regulating any other emissions from 
nonroad engines that we find contribute significantly to air pollution.
    We completed the Nonroad Engine and Vehicle Emission Study, 
required by Clean Air Act section 213(a)(1), in November 1991.\4\ On 
June 17, 1994, we made an affirmative determination under section 
213(a)(2) that nonroad emissions are significant contributors to ozone 
or CO in more than one nonattainment area. We also determined that 
these engines make a significant contribution to PM and smoke emissions 
that may reasonably be anticipated to endanger public health or 
welfare. In the same document, we set a first phase of emission 
standards (now referred to as Tier 1 standards) for land-based nonroad 
diesel engines rated at or above 37 kW. We recently added a more 
stringent set of Tier 2 and Tier 3 emission levels for new land-based 
nonroad diesel engines at or above 37 kW and adopted Tier 1 standards 
for land-based nonroad diesel engines less than 37 kW. Our other 
emission-control programs for nonroad engines are listed in Table I.F-
1. This proposal takes another step toward the comprehensive nonroad 
engine emission-control strategy envisioned in the Act by proposing an 
emission-control program for the remaining unregulated nonroad engines.
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    \4\ This study is available in docket A-92-28.

                              Table I.F-1.--EPA's Nonroad Emission-Control Programs
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           Engine category                    Final rulemaking                           Date
----------------------------------------------------------------------------------------------------------------
Land-based diesel engines   56 FR 31306                    June 17, 1994.
 37 kW--Tier 1.
Spark-ignition engines  19  60 FR 34581                    July 3, 1995.
 kW--Phase 1.
Spark-ignition marine................  61 FR 52088                    October 4, 1996.
Locomotives..........................  63 FR 18978                    April 16, 1998.
Land-based diesel engines--Tier 1 and  63 FR 56968                    October 23, 1998.
 Tier 2 for engines  37 kW.
      --Tier 2 and Tier 3 for engines
  37 kW
Commercial marine diesel.............  64 FR 73300                    December 29, 1999.
Spark-ignition engines  19  64 FR 15208                    March 30, 1999.
 kW (Non-handheld)--Phase 2.
Spark-ignition engines  19  65 FR 24268                    April 25, 2000.
 kW (Handheld)--Phase 2.
----------------------------------------------------------------------------------------------------------------

    b. National standards for marine engines. In the October 1996 final 
rule for spark-ignition marine engines, we set standards only for 
outboard and personal watercraft engines. We decided not to finalize 
emission standards for sterndrive or inboard marine engines at that 
time. Uncontrolled emission levels from sterndrive and inboard marine 
engines were already significantly lower than the outboard and personal 
watercraft engines. We did, however, leave open the possibility of 
revisiting the need for emission standards for sterndrive and inboard 
engines in the future.
    In December 1999, we published emission standards for commercial 
marine diesel engines. To allow more time to evaluate the potential 
impact of the proposed emission limits on the recreational vessel 
industry, we did not include recreational propulsion marine diesel 
engines in that rulemaking.
    c. National standards for land-based spark-ignition engines. The 
standards we have set to date for land-based, spark-ignition nonroad 
engines apply to engines typically used in lawn and garden 
applications. In adopting these emission standards, we decided not to 
include engines rated over 19 kW or any engines used in recreational 
vehicles. The proposed emission-control program in this document 
addresses these remaining unregulated engines.
2. State Initiatives
    Under Clean Air Act section 209, California has the authority to 
regulate emissions from new motor vehicles and new motor vehicle 
engines. California may also regulate emissions from nonroad engines, 
with the exception of

[[Page 51102]]

new engines used in locomotives and new engines used in farm and 
construction equipment rated under 130 kW.\5\ So far, the California 
Air Resources Board (California ARB) has adopted requirements for four 
groups of nonroad engines: (1) Diesel- and Otto-cycle small off-road 
engines rated under 19 kW; (2) new land-based nonroad diesel engines 
rated over 130 kW; (3) land-based nonroad recreational engines, 
including all-terrain vehicles, snowmobiles, off-highway motorcycles, 
go-carts, and other similar vehicles; and (4) new nonroad SI engines 
rated over 19 kW. They have approved a voluntary registration and 
control program for existing portable equipment.
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    \5\ The Clean Air Act limits the role states may play in 
regulating emissions from new motor vehicles and nonroad engines. 
California is permitted to establish emission standards for new 
motor vehicles and most nonroad engines; other states may adopt 
California's programs (sections 209 and 177 of the Act).
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    Other states may adopt emission standards set by California ARB, 
but are otherwise preempted from setting emission standards for new 
engines or vehicles. In contrast, there is generally no federal 
preemption of state initiatives related to the way individuals use 
individual engines or vehicles.
    a. Industrial SI engines. California ARB in 1998 adopted 
requirements that apply to new nonroad engines rated over 25 hp 
produced for California starting in 2001. These standards phase in over 
three years, during which manufacturers show only that engines meet the 
standards before they start in service. Beginning in 2004, the 
standards apply to 100 percent of engines sold in California, including 
a requirement to show that an engine meets emission standards 
throughout its useful life. As described above, these standards do not 
apply to engines under 130 kW used in farm or construction equipment. 
Texas has adopted the California ARB emission standards statewide 
starting in 2004.
    b. Off-highway motorcycles and all-terrain vehicles. California 
established standards for off-highway motorcycles and all-terrain 
vehicles which took effect in January 1997 (1999 for vehicles with 
engines of 90 cc or less). The standards are 1.2 g/km HC and 15.0 g/km 
CO and are based on the highway motorcycle chassis test procedures. 
Manufacturers may certify all-terrain vehicles to optional standards, 
which are based on the utility engine test procedure.\6\ These 
standards are 12 g/hp-hr HC+NOX and 300 g/hp-hr CO, for all-
terrain vehicles with engine displacements less than 225 cubic 
centimeters (cc) and 10 g/hp-hr NC+NOX and 300 g/hp-hr CO, 
for all-terrain vehicles with engine displacement greater than 225 cc. 
The utility engine test procedure is the procedure over which Small SI 
engines are tested. The stringency level of the standards was based on 
the emissions performance of 4-stroke engines and advanced 2-stroke 
engines equipped with a catalytic converter. California anticipated 
that the standards would be met initially through the use of high 
performance 4-stroke engines.
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    \6\ Notice to Off-Highway Recreational Vehicle Manufacturers and 
All Other Interested Parties Regarding Alternate Emission Standards 
for All-Terrain Vehicles, Mail Out #95-16, April 28, 1995, 
California ARB (Docket A-2000-01, document II-D-06).
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    California revisited the program in the 1997 time frame because a 
lack of certified product from manufacturers was reportedly creating 
economic hardship for dealerships. The number of certified off-highway 
motorcycle models was particularly inadequate.\7\ In 1998, California 
revised the program, allowing the use of uncertified products in off-
highway vehicle recreation areas with regional/seasonal use 
restrictions. Currently, noncomplying vehicles can be legally sold in 
California and used in attainment areas year-round and in nonattainment 
areas during months when exceedances of the state ozone standard are 
not expected. For enforcement purposes, certified and uncertified 
products are identified respectively with green and red stickers. Only 
about one-third of off-highway motorcycles sold in California are 
certified.
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    \7\ Initial Statement of Reasons, Public Hearing to Consider 
Amendments to the California Regulations for New 1997 and Later Off-
highway Recreational Vehicles and Engines, California ARB, October 
23, 1998 (Docket A-2000-01, II-D-08).
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3. Actions in Other Countries
    a. European action--Recreational Marine Engines. The European 
Commission has proposed emission standards for recreational marine 
engines, including both diesel and gasoline engines. These requirements 
would apply to all new engines sold in member countries. The numerical 
emission standards for recreational diesel marine engines, shown in 
Table I.F-2, consist of the Annex VI NOX standard for small 
marine diesel engines, the rough equivalent of Nonroad Diesel Tier 1 
emission standards for HC and CO. Emission testing is to be conducted 
using the ISO D2 duty cycle for constant-speed engines and the ISO E5 
duty cycle for all other engines. Table I.F-2 also presents average 
baseline emissions based on data that we have collected. These data are 
presented in Chapter 4 of the Draft Regulatory Support Document. We 
have received comment that we should apply these standards in the U.S., 
but the proposed European emission standards for recreational marine 
diesel engines may not result in a decrease in emissions, and may even 
allow an increase in emissions from engines operated in the U.S.

   Table I.F-2.--Proposed European Emission Standards for Recreational
                          Marine Diesel Engines
------------------------------------------------------------------------
                                                     Emission   Baseline
                                                     standard  emissions
                     Pollutant                       (g/k W-    (g/k W-
                                                       hr)        hr)
------------------------------------------------------------------------
NOX...............................................        9.8        8.9
PM................................................        1.4        0.2
HC................................................    \a\ 1.5        0.3
CO................................................        5.0       1.3
------------------------------------------------------------------------
\a\ Increases slightly with increasing engine power rating.

    b. International Maritime Organization--CI Marine Engines. In 
response to growing international concern about air pollution and in 
recognition of the highly international nature of maritime 
transportation, the International Maritime Organization developed a 
program to reduce NOX and SOx emissions from marine vessels. 
No restrictions on PM, HC, or CO emissions were considered. The 
NOX provisions, contained in Regulation 13 of Annex VI to 
the International Convention on the Prevention of Pollution from Ships 
(MARPOL 73/78), specify that each diesel engine with a power output of 
more than 130 kW installed on a ship constructed on or after January 1, 
2000, or that undergoes a major conversion on or after January 1, 2000, 
must meet the NOX emission standards in Table I.F-3.\8\ The 
Annex does not distinguish between marine diesel engines installed on 
recreational or commercial vessels; all marine diesel engines above 130 
kW would be subject to the standards regardless of their use.
---------------------------------------------------------------------------

    \8\ Additional information about the MARPOL Annex VI 
NOX standards can be found in the documents for our 
commercial marine diesel standards, which can be found on our 
website (http://www.epa.gov/otaq/marine.htm). That website also 
contains facts sheets and other information about the Annex.

               Table I.F-3.--MARPOL Annex VI NOX Standards
------------------------------------------------------------------------
                                                             NOX  (g/kW-
           Engine speed  (n = engine speed, rpm)                 hr)
------------------------------------------------------------------------
n 130 rpm..................................................         17.0
130 rpmn2000 rpm................................   45*n(-0.2)

[[Page 51103]]

 
n  2000.........................................          9.8
------------------------------------------------------------------------

    After several years of negotiation, the Member States of the 
International Maritime Organization adopted a final version of Annex VI 
on September 26, 1997. As stipulated in Article 6 of the Agreement, the 
Annex will go into force when fifteen States, the combined merchant 
fleets of which constitute not less than 50 percent of the gross 
tonnage of the world's merchant shipping, have ratified it. As of 
today, three countries have ratified the Annex (Norway, Sweden, 
Singapore), representing about 7 percent of the world fleet.
    Pending entry into force, ship owners and vessel manufacturers are 
expected to install compliant engines on relevant ships beginning with 
the date specified in Regulation 13, January 1, 2000. In addition, ship 
owners are expected to bring existing engines into compliance if the 
engines undergo a major conversion on or after that date.\9\ As defined 
in Regulation 13 of Annex VI, a major conversion is defined to include 
those situations when the engine is replaced by a new engine, it is 
substantially modified, or its maximum continuous rating is increased 
by more than 10 percent. To facilitate this process, and to allow 
engine manufacturers to certify their engines before the Annex goes 
into force, we set up a process for manufacturers to obtain a Statement 
of Voluntary Compliance.\10\ This document will be exchangeable for an 
Engine International Air Pollution Prevention (EIAPP) certificate once 
the Annex goes into effect for the United States.
---------------------------------------------------------------------------

    \9\ As defined in Regulation 13 of Annex VI, a major conversion 
means the engine is replaced by a new engine, it is substantially 
modified, or its maximum continuous rating is increased by more than 
10 percent.
    \10\ For more information about our voluntary certification 
program, see ``guidance for Certifying to MARPOL Annex VI,'' VPCD-
99-02. This letter is available on our website: http://www.epa.gov/otaq/regs/nonroad/marine/ci/imolettr.pdf.
---------------------------------------------------------------------------

II. Public Health and Welfare Effects of Emissions From Covered 
Engines

A. Background

    This proposal contains regulatory strategies for three sets of new 
nonroad vehicles and engines that cause or contribute to air pollution 
but that have not been regulated under EPA's nonroad engine programs. 
The three sets of nonroad vehicles and engines are:
     Large Industrial Spark Ignition Engines. These are spark-
ignition nonroad engines rated over 19 kW used in commercial 
applications. These include engines used in forklifts, electric 
generators, airport tugs, and a variety of other construction, farm, 
and industrial equipment. Many of these engines, such as those used in 
farm and construction equipment, are operated outdoors, predominantly 
during warmer weather and often in or near heavily-populated urban 
areas where they contribute to ozone formation and ambient CO and PM 
levels. These engines are also often operated in factories, warehouses, 
and large retail outlets throughout the year, where they contribute to 
high exposure levels to personnel who work with or near this equipment 
as well as to ozone formation and ambient CO and PM levels. For the 
purpose of this proposal, we are calling these ``Large SI engines.''
     Nonroad Spark-Ignition Recreational Engines. These are 
spark-ignition nonroad engines used primarily in recreational 
applications. These include off-highway motorcycles, all-terrain-
vehicles and snowmobiles. Some of these engines, particularly those 
used on all-terrain vehicles, are increasingly used for commercial 
purposes within urban areas, especially for mowing lawns and hauling 
loads. These vehicles are typically used in suburban and rural areas, 
where they contribute to ozone formation and ambient CO, and PM levels. 
All these vehicles, and snowmobiles in particular, contribute to 
visibility impairment problems in our national and state parks. For the 
purpose of this proposal, we are calling this group of engines 
``recreational vehicles.''
     Marine Engines. These are marine diesel engines that are 
used on recreational vessels such as yachts, cruisers, and other types 
of pleasure craft. Recreational marine engines are primarily used in 
warm weather and therefore contribute to ozone formation and PM levels, 
especially in marinas, which are often located in nonattainment areas.
    Nationwide, these engines and vehicles are a significant source of 
mobile-source air pollution. As described in Section II.C, below, they 
currently account for about 13 percent of national mobile-source HC 
emissions, 6 percent of mobile-source CO emissions, 3 percent of 
mobile-source NOX emissions, and 1 percent of mobile-source 
PM emissions. Recreational vehicles by themselves account for nearly 10 
percent of national mobile-source HC emissions and about 3 percent of 
national mobile-source CO emissions. Within national parks, snowmobiles 
are significant contributors to ambient concentrations of fine 
particulate matter, a leading component of visibility impairment. By 
reducing these emissions, the proposed standards would provide 
assistance to states facing ozone and CO air quality problems, which 
can cause a range of adverse health effects, especially in terms of 
respiratory impairment and related illnesses. States are required to 
develop plans to address visibility impairment in national parks, and 
the reductions proposed in this rule would assist states in those 
efforts.
    In addition, the proposed standards would help reduce acute 
exposure to CO and air toxics for forklift operators, snowmobile users, 
national and state park attendants, and other people who may be at 
particular risk because they operate or work or are otherwise active 
for long periods of time in close proximity to this equipment. 
Emissions from these vehicles and equipment can be very high on a per 
engine basis. In addition, the equipment (e.g., forklifts) is often 
used in enclosed areas. Similarly, exposure can be intensified for 
snowmobile riders who follow a group of other rides along a trail, 
since those riders are exposed to the emissions of all the other 
snowmobiles riding ahead. As summarized below and explained in greater 
detail in the Draft Regulatory Support Document for this proposal, CO 
emissions have been directly associated with cardisvascular and other 
health problems, and many types of hydrocarbons are also air toxics.
    The standards proposed in this document would require the use of 
cleaner emission-control technologies. For Large SI engines, we are 
proposing a two-phase program that will take fuel effects into account. 
The first phase consists of one set of standards that would apply to 
all engines regardless of fuel (i.e., gasoline, LPG, CNG). These 
standards are identical to those recently adopted by California Air 
Resources Board (CARB) and are based on a steady-state test. The second 
phase of standards is more stringent than the California standards. The 
numerical limits differ depending on fuel type and would require 
optimizing the same emission-control technologies used in Phase 1 but 
would be based on a transient duty test cycle. These standards would 
also include new requirements for evaporative emissions and engine 
diagnostics.
    For marine engines, we are proposing to set new standards that 
would require recreational diesel marine engines to adopt the emission-
control technology

[[Page 51104]]

that will be in use on commercial diesel marine engines.
    For nonroad recreational vehicles, we are proposing standards that 
would require snowmobiles to use cleaner 2-stroke technologies (e.g., 
clean carburetion, electronic fuel injection). For off-highway 
motorcycles and all-terrain vehicles, we are proposing standards that 
would effectively require manufacturers to use more 4-stroke technology 
for most engines. A second phase of proposed standards for all-terrain 
vehicles is based on catalyst technology.
    When the proposed emission standards are fully implemented in 2020, 
we expect a 79 percent reduction in HC emissions, 75 percent reduction 
in NOX emissions, and 56 percent reduction in CO emissions 
from these engines, equipment, and vehicles (see Section IX below for 
more details). These emission reductions will reduce ambient 
concentrations of ozone, CO, and PM fine, which is a health concern and 
contributes to visibility impairment. The standards will also reduce 
personal exposure for people who operate or who work with or are 
otherwise in close proximity to these engines and vehicles.
    For the nonroad engines covered by this proposal, the Agency has 
already established in several previous actions that they cause or 
contribute to ozone or carbon monoxide pollution in more than one 
nonattainment area. In three actions in 1996, 1999, and 2000, we made 
separate determinations that each category of nonroad engines covered 
by this proposal specifically contributes to ozone and CO 
nonattainment, and to adverse health effects associated with ambient 
concentrations of PM. These actions are summarized in Table II.A-1. In 
addition, pursuant to Section 213(a)(4) of the Act, we are proposing to 
find that nonroad engines, including construction equipment, farm 
tractors, boats, planes, locomotives, marine engines, and recreational 
vehicles (e.g., off-highway motorcycles, all-terrain-vehicles, and 
snowmobiles), significantly contribute to regional haze, and that these 
engines, particularly snowmobiles, are significant emitters of 
pollutants that are known to impair visibility in federal Class I 
areas. The discussion pertaining to this proposed finding is in Section 
II.D.1, below.

                             Table II.A-1.--Summary of Nonroad Air Quality Findings
----------------------------------------------------------------------------------------------------------------
            Source                 Date of finding       Pollutants covered   Emissions determined to contribute
----------------------------------------------------------------------------------------------------------------
CI Marine.....................  December 29, 1999, 64  Ozone, PM............  HC+NOX, PM, CO.
                                 FR 73300.
Large SI......................  December 7, 2000, 65   Ozone, CO, PM........  HC+NOX, CO, PM.
                                 FR 76790.
Recreational Vehicles.........  December 7, 2000, 65   Ozone, CO, PM........  HC+NOX, CO, PM.
                                 FR 76790.
----------------------------------------------------------------------------------------------------------------

B. What Are the Public Health and Welfare Effects Associated With 
Emissions From Nonroad Engines Subject to the Proposed Standards?

    The engines and vehicles that would be subject to the proposed 
standards generate emissions of HC, CO, PM and air toxics that 
contribute to ozone and CO nonattainment as well as adverse health 
effects associated with ambient concentrations of PM and air toxics. 
Elevated emissions from those recreational vehicles that operate in 
national parks (e.g., snowmobiles) contribute to visibility impairment. 
This section summarizes the general health effects of these substances. 
National inventory estimates are set out in Section II.B, and estimates 
of the expected impact of the proposed control programs are described 
in Section IX. Interested readers are encouraged to refer to the Draft 
Regulatory Support Document for this proposal for more in-depth 
discussions.
1. Health and Welfare Effects Associated With Ground Level Ozone and 
Its Precursors
    Volatile organic compounds (VOC) and NOX are precursors 
in the photochemical reaction which forms tropospheric ozone. Ground-
level ozone, the main ingredient in smog, is formed by complex chemical 
reactions of VOCs and NOX in the presence of heat and 
sunlight. Hydrocarbons (HC) are a large subset of VOC, and to reduce 
mobile-source VOC levels we set maximum emissions limits for 
hydrocarbon and particulate matter emissions.
    A large body of evidence shows that ozone can cause harmful 
respiratory effects including chest pain, coughing, and shortness of 
breath, which affect people with compromised respiratory systems most 
severely. When inhaled, ozone can cause acute respiratory problems; 
aggravate asthma; cause significant temporary decreases in lung 
function of 15 to over 20 percent in some healthy adults; cause 
inflammation of lung tissue; produce changes in lung tissue and 
structure; may increase hospital admissions and emergency room visits; 
and impair the body's immune system defenses, making people more 
susceptible to respiratory illnesses. Children and outdoor workers are 
likely to be exposed to elevated ambient levels of ozone during 
exercise and, therefore, are at a greater risk of experiencing adverse 
health effects. Beyond its human health effects, ozone has been shown 
to injure plants, which has the effect of reducing crop yields and 
reducing productivity in forest ecosystems.
    There is strong and convincing evidence that exposure to ozone is 
associated with exacerbation of asthma-related symptoms. Increases in 
ozone concentrations in the air have been associated with increases in 
hospitalization for respiratory causes for individuals with asthma, 
worsening of symptoms, decrements in lung function, and increased 
medication use, and chronic exposure may cause permanent lung damage. 
The risk of suffering these effects is particularly high for children 
and for people with compromised respiratory systems.
    Ground level ozone today remains a pervasive pollution problem in 
the United States. In 1999, 90.8 million people (1990 census) lived in 
31 areas designated nonattainment under the 1-hour ozone NAAQS.\73\ 
This sharp decline from the 101 nonattainment areas originally 
identified under the Clean Air Act Amendments of 1990 demonstrates the 
effectiveness of the last decade's worth of emission-control programs. 
However, elevated ozone concentrations remain a serious public health 
concern throughout the nation.
---------------------------------------------------------------------------

    \73\ National Air Quality and Emissions Trends Report, 1999, 
EPA, 2001, at Table A-19. This document is available at http://www.epa.gov/oar/aqtrnd99/. The data from the Trends report are the 
most recent EPA air quality data that have been quality assured. A 
copy of this table can also be found in Docket No. A-2000-01, 
Document No. II-A-64.
---------------------------------------------------------------------------

    Over the last decade, declines in ozone levels were found mostly in 
urban areas, where emissions are heavily influenced by controls on 
mobile sources and their fuels. Twenty-three metropolitan areas have 
realized a decline in ozone levels since 1989, but at the same time 
ozone levels in 11 metropolitan areas with 7 million

[[Page 51105]]

people have increased.\74\ Regionally, California and the Northeast 
have recorded significant reductions in peak ozone levels, while four 
other regions (the Mid-Atlantic, the Southeast, the Central and Pacific 
Northwest) have seen ozone levels increase.
---------------------------------------------------------------------------

    \74\ National Air Quality and Emissions Trends Report, 1998, 
March, 2000, at 28. This document is available at http://www.epa.gov/oar/aqtrnd98/. Relevant pages of this report can be 
found in Memorandum to Air Docket A-2000-01 from Jean Marie Revelt, 
September 5, 2001, Document No. II-A-63.
---------------------------------------------------------------------------

    The highest ambient concentrations are currently found in suburban 
areas, consistent with downwind transport of emissions from urban 
centers. Concentrations in rural areas have risen to the levels 
previously found only in cities. Particularly relevant to this 
proposal, ozone levels at 17 of our National Parks have increased, and 
in 1998, ozone levels in two parks, Shenandoah National Park and the 
Great Smoky Mountains National Park, were 30 to 40 percent higher than 
the ozone NAAQS over part of the last decade.\75\
---------------------------------------------------------------------------

    \75\ National Air Quality and Emissions Trends Report, 1998, 
March, 2000, at 32. This document is available at http://www.epa.gov/oar/aqtrnd98/. Relevant pages of this report can be 
found in Memorandum to Air Docket A-2000-01 from Jean Marie Revelt, 
September 5, 2001, Document No. II-A-63.
---------------------------------------------------------------------------

    To estimate future ozone levels, we refer to the modeling performed 
in conjunction with the final rule for our most recent heavy-duty 
highway engine and fuel standards.\76\ We performed ozone air quality 
modeling for the entire Eastern U.S. covering metropolitan areas from 
Texas to the Northeast.\77\ This ozone air quality model was based upon 
the same modeling system as was used in the Tier 2 air quality 
analysis, with the addition of updated inventory estimates for 2007 and 
2030. The results of this modeling were examined for those 37 areas in 
the East for which EPA's modeling predicted exceedances in 2007, 2020, 
and/or 2030 and the current 1-hour design values are above the standard 
or within 10 percent of the standard. This photochemical ozone modeling 
for 2020 predicts exceedances of the 1-hour ozone standard in 32 areas 
with a total of 89 million people (1999 census) after accounting for 
light- and heavy-duty on-highway control programs.\78\ We expect the 
NOX and HC control strategies contained in this proposal for 
nonroad engines will further assist state efforts already underway to 
attain and maintain the 1-hour ozone standard.
---------------------------------------------------------------------------

    \76\ Additional information about this modeling can be found in 
our Regulatory Impact Analysis: Heavy-Duty Engine and Vehicle 
Standards and Highway Diesel Fuel Sulfur Control Requirements, 
document EPA420-R-00-026, December 2000. Docket No. 1-2000-01, 
Document No. II-A-13. This document is also available at 
http://www.epa.gov/otaq/diesel.htm#documents.
    \77\ We also performed ozone air quality modeling for the 
western United States but, as described further in the air quality 
technical support document, model predictions were well below 
corresponding ambient concentrations for out heavy-duty engine 
standards and fuel sulfur control rulemaking. Because of poor model 
performance for this region of the country, the results of the 
Western ozone modeling were not relied on for that rule.
    \78\ Regulatory Impact Analysis: Heavy-Duty Engine and Vehicle 
Standards and Highway Diesel Fuel Sulfur Control Requirements, US 
EPA, EPA420-R-00-026, December 2000, at II-14, Table II.A-2. Docket 
No. A-2000-01, Document Number II-A-13. This document is also 
available at http://www.epa.gov/otaq/diesel.htm#documents.
---------------------------------------------------------------------------

    In addition to the health effects described above, there exists a 
large body of scientific literature that shows that harmful effects can 
occur from sustained levels of ozone exposure much lower than 0.125 
ppm.\79\ Studies of prolonged exposures, those lasting about 7 hours, 
show health effects from prolonged and repeated exposures at moderate 
levels of exertion to ozone concentrations as low as 0.08 ppm. The 
health effects at these levels of exposure include transient pulmonary 
function responses, transient respiratory symptoms, effects on exercise 
performance, increased airway responsiveness, increased susceptibility 
to respiratory infection, increased hospital and emergency room visits, 
and transient pulmonary respiratory inflammation.
---------------------------------------------------------------------------

    \79\ Additional information about these studies can be found in 
Chapter 2 of ``Regulatory Impact Analysis: Heavy-Duty Engine and 
Vehicle Standards and Highway Diesel Fuel Sulfur Control 
Requirements,'' December 2000, EPA420-R-00-026. Docket No. A-2000-
01, Document Number II-A-13. This document is also available at 
http://www.epa.gov/otaq/diesel.htm#documents.
---------------------------------------------------------------------------

    Prolonged and repeated ozone concentrations at these levels are 
common in areas throughout the country, and are found both in areas 
that are exceeding, and areas that are not exceeding, the 1-hour ozone 
standard. Areas with these high concentrations are more widespread than 
those in nonattainment for that 1-hour ozone standard. Monitoring data 
indicate that 333 counties in 33 states exceed these levels in 1997-
99.\80\ The Agency's most recent photochemical ozone modeling forecast 
that 111 million people are predicted to live in areas that are at risk 
of exceeding these moderate ozone levels for prolonged periods of time 
in 2020 after accounting for expected inventory reductions due to 
controls on light- and heavy-duty on-highway vehicles.\81\
---------------------------------------------------------------------------

    \80\ A copy of these data can be found in Air Docket A-2000-01, 
Document No. II-A-80.
    \81\ Memorandum to Docket A-99-06 from Eric Ginsburg, EPA, 
``Summary of Model-Adjusted Ambient Concentrations for Certain 
Levels of Ground-Level Ozone over Prolonged Periods,'' November 22, 
2000, at Table C, Control Scenario--2020 Populations in Eastern 
Metropolitan Counties with Predicted Daily 8-Hour Ozone greater than 
or equal to 0.080 ppm. Docket A-2000-01, Document Number II-B-13.
---------------------------------------------------------------------------

2. Health Effects Associated With Carbon Monoxide
    Carbon monoxide (CO) is a colorless, odorless gas produced through 
the incomplete combustion of carbon-based fuels. Carbon monoxide enters 
the bloodstream through the lungs and reduces the delivery of oxygen to 
the body's organs and tissues. The health threat from CO is most 
serious for those who suffer from cardiovascular disease, particularly 
those with angina or peripheral vascular disease. Healthy individuals 
also are affected, but only at higher CO levels. Exposure to elevated 
CO levels is associated with impairment of visual perception, work 
capacity, manual dexterity, learning ability and performance of complex 
tasks.
    High concentrations of CO generally occur in areas with elevated 
mobile-source emissions. Peak concentrations typically occur during the 
colder months of the year when mobile-source CO emissions are greater 
and nighttime inversion conditions are more frequent. This is due to 
the enhanced stability in the atmospheric boundary layer, which 
inhibits vertical mixing of emissions from the surface.
    The current primary NAAQS for CO are 35 parts per million for the 
one-hour average and 9 parts per million for the eight-hour average. 
These values are not to be exceeded more than once per year. Air 
quality carbon monoxide value is estimated using EPA guidance for 
calculating design values. In 1999, 30.5 million people (1990 census) 
lived in 17 areas designated nonattainment under the CO NAAQS.\82\
---------------------------------------------------------------------------

    \82\ National Air Quality and Emissions Trends Report, 1999, 
EPA, 2001, at Table A-19. This document is available at http://www.epa.gov/oar/aqtrnd99/. The data from the Trends report are the 
most recent EPA air quality data that have been quality assured. A 
copy of this table can also be found in Docket No. A-2000-01, 
Document No. II-A-64.
---------------------------------------------------------------------------

    Snowmobiles, which have relatively high per engine CO emissions, 
can be a significant source of ambient CO levels in CO nonattainment 
areas. Several states that contain CO nonattainment areas also have 
large populations of registered snowmobiles. This is shown in Table 
II.B-1. A review of snowmobile trail maps indicates that snowmobiles 
are used in these CO nonattainment

[[Page 51106]]

areas or in adjoining counties.\83\ These include the Mt. Spokane and 
Riverside trails near the Spokane, Washington CO nonattainment area; 
the Larimer trails near the Fort Collins, Colorado CO nonattainment 
area; and the Hyatt Lake, Lake of the Woods, and Cold Springs trails 
near the Klamath Falls and Medford, Oregon CO nonattainment area. There 
are also trails in Missoula County, Montana that demonstrate snowmobile 
use in the Missoula, Montana CO nonattainment area. While Colorado has 
a large snowmobile population, the snowmobile trails are fairly distant 
from the Colorado Springs CO nonattainment areas. EPA requests comment 
on the volume and nature of snowmobile use in these and other CO 
nonattainment areas. Of particular interest is information about the 
number of trails in and around CO nonattainment areas, the magnitude of 
snowmobile use on those trails, and the extent to which snowmobiles are 
used off-trail.\84\
---------------------------------------------------------------------------

    \83\ St. Paul, Minnesota was recently reclassified as being in 
attainment but is still considered a maintenance area. There is also 
a significant population of snowmobiles in Minnesota, with 
snowmobile trails in Washington County.
    \84\ The trail maps consulted for this proposal can be found in 
Docket No. A-2000-01, Document No. II-A-65.

                        Table II.B-1.--Snowmobile Use in Selected CO Nonattainment Areas
----------------------------------------------------------------------------------------------------------------
                                                                                                    1998 State
              City and State                          CO nonattainment classification               snowmobile
                                                                                                  population \a\
----------------------------------------------------------------------------------------------------------------
Fairbanks, AK............................  Serious..............................................          12,997
Spokane, WA..............................  Serious..............................................          32,274
Colorado Springs, CO.....................  Moderate.............................................          28,000
Fort Collins, CO.........................  Moderate.............................................
Klamath Falls, OR........................  Moderate.............................................          13,426
Medford, OR..............................  Moderate.............................................
Missoula, MT.............................  Moderate.............................................         14,361
----------------------------------------------------------------------------------------------------------------
\a\ Source: Letter from International Snowmobile Manufacturers Association to US-EPA, July 8, 1999, Docket A-
  2000-01, Document No. II-G.

    Exceedances of the 8-hour CO standard were recorded in three of 
these seven CO nonattainment areas located in the northern portion of 
the country over the five year period from 1994 to 1999: Fairbanks, AK; 
Medford, OR; and Spokane, WA.\85\ Given the variability in CO ambient 
concentrations due to weather patterns such as inversions, the absence 
of recent exceedances for some of these nonattainment areas should not 
be viewed as eliminating the need for further reductions to 
consistently attain and maintain the standard. A review of CO monitor 
data in Fairbanks from 1986 to 1995 shows that while median 
concentrations have declined steadily, unusual combinations of weather 
and emissions have resulted in elevated ambient CO concentrations well 
above the 8-hour standard of 9 ppm. Specifically, a Fairbanks monitor 
recorded average 8-hour ambient concentrations at 16 ppm in 1988, 
around 9 ppm from 1990 to 1992, and then a steady increase in CO 
ambient concentrations at 12, 14 and 16 ppm during some extreme cases 
in 1993, 1994 and 1995, respectively.\86\
---------------------------------------------------------------------------

    \85\ Technical Memorandum to Docket A-2000-01 from Drew Kodjak, 
Attorney-Advisor, Office of Transportation and Air Quality, ``Air 
Quality Information for Selected CO Nonattainment Areas,'' July 27, 
2001, Docket Number A-2000-01, Document Number II-B-18.
    \86\ Air Quality Criteria for Carbon Monoxide, US EPA, EPA 600/
P-99/001F, June 2000, at 3-38, Figure 3-32 (Federal Bldg, AIRS Site 
020900002). Air Docket A-2000-01, Document Number II-A-29. This 
document is also available at http://www.epa.gov/ncea/coabstract.htm.
---------------------------------------------------------------------------

    Nationally, significant progress has been made over the last decade 
to reduce CO emissions and ambient CO concentrations. Total CO 
emissions from all sources have decreased 16 percent from 1989 to 1998, 
and ambient CO concentrations decreased by 39 percent. During that 
time, while the mobile source CO contribution of the inventory remained 
steady at about 77 percent, the highway portion decreased from 62 
percent of total CO emissions to 56 percent while the nonroad portion 
increased from 17 percent to 22 percent.\87\ Over the next decade, we 
would expect there to be a minor decreasing trend from the highway 
segment due primarily to the more stringent standards for certain 
light-duty trucks (LDT2s).\88\ CO standards for passenger cars and 
other light-duty trucks and heavy-duty vehicles did not change as a 
result of other recent rulemakings). As described in Section II.C, 
below, the engines subject to this rule currently account for about 7 
percent of the mobile source CO inventory; this is expected to increase 
to 10 percent by 2020 without the emission controls proposed in this 
action.
---------------------------------------------------------------------------

    \87\ National Air Quality and Emissions Trends Report, 1998, 
March, 2000; this document is available at http://www.epa.gov/oar/aqtrnd98/. National Air Pollutant Emission Trends, 1900-1998 (EPA-
454/R-00-002), March, 2000. These documents are available at Docket 
No. A-2000-01, Document No. II-A-72. See also Air Quality Criteria 
for Carbon Monoxide, US EPA, EPA 600/P-99/001F, June 2000, at 3-10. 
Air Docket A-2000-01, Document Number II-A-29. This document is also 
available at http://www.epa.gov/ncea/coabstract.htm.
    \88\ LDT2s are light light-duty trucks greater than 3750 lbs. 
loaded vehicle weight, up through 6000 gross vehicle weight rating.
---------------------------------------------------------------------------

    The state of Alaska recently submitted draft CO attainment SIPs to 
the Agency for the Fairbanks CO nonattainment area. Fairbanks is 
located in a mountain valley with a much higher potential for air 
stagnation than cities within the contiguous United States. Nocturnal 
inversions that give rise to elevated CO concentrations can persist 24-
hours a day due to the low solar elevation, particularly in December 
and January. These inversions typically last from 2 to 4 days (Bradley 
et al., 1992), and thus inversions may continue during hours of maximum 
CO emissions from mobile sources. Despite the fact that snowmobiles are 
largely banned in CO nonattainment areas by the state, the state 
estimated that snowmobiles contributed 0.3 tons/day in 1995 to 
Fairbanks' CO nonattainment area or 1.2 percent of a total inventory of 
23.3 tons per day in 2001.\89\ While Fairbanks has made significant 
progress in reducing ambient CO concentrations, existing climate 
conditions make achieving and maintaining attainment challenging. 
Fairbanks failed to attain the CO NAAQS by the applicable deadline of

[[Page 51107]]

December 21, 2000, and EPA approved a one-year extension in May of 
2001.\90\
---------------------------------------------------------------------------

    \89\ Draft Anchorage Carbon Monoxide Emission Inventory and Year 
2000 Attainment Projections, Air Quality Program, May 2001, Docket 
Number A-2000-01, Document II-A-40; Draft Fairbanks 1995-2001 Carbon 
Monoxide Emissions Inventory, June 1, 2001, Docket Number A-2000-01, 
Document II-A-39.
    \90\ 66 FR 28836, May 25, 2001. Clean Air Act Promulgation of 
Attainment Date Extension for the Fairbanks North Star Borough 
Carbon Monoxide Nonattainment Area, AK, Direct Final Rule.
---------------------------------------------------------------------------

    In addition to the health effects that can result from exposure to 
carbon monoxide, this pollutant also can contribute to ground level 
ozone formation.\91\ Recent studies in atmospheric chemistry in urban 
environments suggest CO can react with hydrogen-containing radicals, 
leaving fewer of these to combine with non-methane hydrocarbons and 
thus leading to increased levels of ozone. Few analyses have been 
performed that estimate these effects, but a study of an ozone episode 
in Atlanta, GA in 1988 found that CO accounted for about 17.5 percent 
of the ozone formed (compared to 82.5 percent for volatile organic 
compounds). While different cities may have different results, the 
effects of CO emissions on ground level ozone are not insignificant. 
The engines that are the subject of the proposed standards are 
contributors to these effects in urban areas, particularly because 
their per engine emissions are so high. For example, CO emissions from 
an off-highway motorcycle are high relative to a passenger car, (32 g/
mi compared to 4.2 g/mi). The CO controls contained in this proposal 
will further assist state efforts already underway to attain and 
maintain the CO NAAQS.
---------------------------------------------------------------------------

    \91\ U.S. EPA, Air Quality Criteria for Carbon Monoxide, EPA 
600/P-99.001F, June 2000, Section 3.2.3. Air Docket A-2000-01, 
Document Number II-A-29. This document is also available at http://www.epa.gov/ncea/coabstract.htm.
---------------------------------------------------------------------------

3. Health and Welfare Effects Associated With Particulate Matter
    Nonroad engines and vehicles that would be subject to the proposed 
standards contribute to ambient particulate matter (PM) levels in two 
ways. First, they contribute through direct emissions of particulate 
matter. Second, they contribute to indirect formation of PM through 
their emissions of organic carbon, especially HC. Organic carbon 
accounts for between 27 and 36 percent of fine particle mass depending 
on the area of the country.
    Particulate matter represents a broad class of chemically and 
physically diverse substances. It can be principally characterized as 
discrete particles that exist in the condensed (liquid or solid) phase 
spanning several orders of magnitude in size. All particles equal to 
and less than 10 microns are called PM10. Fine particles can 
be generally defined as those particles with an aerodynamic diameter of 
2.5 microns or less (also known as PM2.5), and coarse 
fraction particles are those particles with an aerodynamic diameter 
greater than 2.5 microns, but equal to or less than a nominal 10 
microns.
    Particulate matter, like ozone, has been linked to a range of 
serious respiratory health problems. Scientific studies suggest a 
likely causal role of ambient particulate matter (which is attributable 
to several sources including mobile sources) in contributing to a 
series of health effects.\92\ The key health effects categories 
associated with ambient particulate matter include premature mortality, 
aggravation of respiratory and cardiovascular disease (as indicated by 
increased hospital admissions and emergency room visits, school 
absences, work loss days, and restricted activity days), aggravated 
asthma, acute respiratory symptoms, including aggravated coughing and 
difficult or painful breathing, chronic bronchitis, and decreased lung 
function that can be experienced as shortness of breath. Observable 
human noncancer health effects associated with exposure to diesel PM 
include some of the same health effects reported for ambient PM such as 
respiratory symptoms (cough, labored breathing, chest tightness, 
wheezing), and chronic respiratory disease (cough, phlegm, chronic 
bronchitis and suggestive evidence for decreases in pulmonary 
function). Symptoms of immunological effects such as wheezing and 
increased allergenicity are also seen. Exposure to fine particles is 
closely associated with such health effects as premature mortality or 
hospital admissions for cardiopulmonary disease.
---------------------------------------------------------------------------

    \92\ EPA (1996) Review of the National Ambient Air Quality 
Standards for Particulate Matter: Policy Assessment of Scientific 
and Technical Information OAQPS Staff Paper. EPA-452/R-96-013. 
Docket Number A-99-06, Documents Nos. II-A-18, 19, 20, and 23. The 
particulate matter air quality criteria documents are also available 
at http://www.epa.gov/ncea/partmatt.htm.
---------------------------------------------------------------------------

    PM also causes adverse impacts to the environment. Fine PM is the 
major cause of reduced visibility in parts of the United States, 
including many of our national parks. Other environmental impacts occur 
when particles deposit onto soils, plants, water or materials. For 
example, particles containing nitrogen and sulphur that deposit on to 
land or water bodies may change the nutrient balance and acidity of 
those environments. Finally, PM causes soiling and erosion damage to 
materials, including culturally important objects such as carved 
monuments and statues. It promotes and accelerates the corrosion of 
metals, degrades paints, and deteriorates building materials such as 
concrete and limestone.
    The NAAQS for PM10 were established in 1987. According 
to these standards, the short term (24-hour) standard of 150 
g/m3 is not to be exceeded more than once per year 
on average over three years. The long-term standard specifies an 
expected annual arithmetic mean not to exceed 50 g/
m3 over three years. The most recent PM10 
monitoring data indicate that 14 designated PM10 
nonattainment areas with a projected population of 23 million violated 
the PM10 NAAQS in the period 1997-99. In addition, there are 
25 unclassifiable areas that have recently recorded ambient 
concentrations of PM10 above the PM10 NAAQS.\93\
---------------------------------------------------------------------------

    \93\ EPA adopted a policy in 1996 that allows areas with 
PM10 exceedances that are attributable to natural events 
to retain their designation as unclassifiable if the State is taking 
all reasonable measures to safeguard public health regardless of the 
sources of PM10 emissions.
---------------------------------------------------------------------------

    Current 1999 PM2.5 monitored values, which cover about a 
third of the nation's counties, indicate that at least 40 million 
people live in areas where long-term ambient fine particulate matter 
levels are at or above 16 g/m3 (37 percent of the 
population in the areas with monitors).\94\ This 16 g/
m3 threshold is the low end of the range of long term 
average PM2.5 concentrations in cities where statistically 
significant associations were found with serious health effects, 
including premature mortality.\95\ To estimate the number of people who 
live in areas where long-term ambient fine particulate matter levels 
are at or above 16 g/m3 but for which there are no 
monitors, we can use modeling. According to our national modeled 
predictions, there were a total of 76 million people (1996 population) 
living in areas with modeled annual average PM2.5 
concentrations at or above 16 g/m3 (29 percent of 
the population).\96\
---------------------------------------------------------------------------

    \94\ Memorandum to Docket A-99-06 from Eric O. Ginsburg, Senior 
Program Advisor, ``Summary of 1999 Ambient Concentrations of Fine 
Particulate Matter,'' November 15, 2000. Air Docket A-2000-01, 
Document No. II-B-12.
    \95\ EPA (1996) Review of the National Ambient Air Quality 
Standards for Particulate Matter: Policy Assessment of Scientific 
and Technical Information OAQPS Staff Paper. EPA-452/R-96-013. 
Docket Number A-99-06, Documents Nos. II-A-18, 19, 20, and 23. The 
particulate matter air quality criteria documents are also available 
at http://www.epa.gov/ncea/partmatt.htm.
    \96\ Memorandum to Docket A-99-06 from Eric O. Ginsburg, Senior 
Program Advisor, ``Summary of Absolute Modeled and Model-Adjusted 
Estimates of Fine Particulate Matter for Selected Years,'' December 
6, 2000. Air Docket A-2000-01, Document No. II-B-14.
---------------------------------------------------------------------------

    To estimate future PM2.5 levels, we refer to the 
modeling performed in

[[Page 51108]]

conjunction with the final rule for our most recent heavy-duty highway 
engine and fuel standards, using EPA's Regulatory Model System for 
Aerosols and Deposition (REMSAD).\97\ The most appropriate method of 
making these projections relies on the model to predict changes between 
current and future states. Thus, we have estimated future conditions 
only for the areas with current PM2.5 monitored data (which 
cover about a third of the nation's counties). For these counties, 
REMSAD predicts the current level of 37 percent of the population 
living in areas where fine PM levels are at or above 16 g/
m3 to increase to 49 percent in 2030.\98\
---------------------------------------------------------------------------

    \97\ Additional information about the Regulatory Model System 
for Aerosols and Deposition (REMSAD) and our modeling protocols can 
be found in our Regulatory Impact Analysis: Heavy-Duty Engine and 
Vehicle Standards and Highway Diesel Fuel Sulfur Control 
Requirements, document EPA420-R-00-026, December 2000. Docket No. A-
2000-01, Document No. A-II-13. This document is also available at 
http://www.epa.gov/otaq/disel.htm#documents.
    \98\ Technical Memorandum, EPA Air Docket A-99-06, Eric O. 
Ginsburg, Senior Program Advisor, Emissions Monitoring and Analysis 
Division, OAQPS, Summary of Absolute Modeled and Model-Adjusted 
Estimates of Fine Particulate Matter for Selected Years, December 6, 
2000, Table P-2. Docket Number 2000-01, Document Number II-B-14.
---------------------------------------------------------------------------

    Emissions of HCs from snowmobiles contribute to secondary formation 
of fine particulate matter which can cause a variety of adverse health 
and welfare effects, including visibility impairment discussed in 
Section II.D.1(b) below. For 20 counties across nine states, snowmobile 
trails are found within or near counties that registered ambient PM 2.5 
concentrations at or above 15 g/m3, the level of 
the revised national ambient air quality standard for fine 
particles.\99\ Fine particles may remain suspended for days or weeks 
and travel hundreds to thousands of kilometers, and thus fine particles 
emitted or created in one county may contribute to ambient 
concentrations in a neighboring county.\100\ These counties are listed 
in Table II.B-2. To obtain the information about snowmobile trails 
contained in Table II.B-2, we consulted snowmobile trail maps that were 
supplied by various states.\101\
---------------------------------------------------------------------------

    \99\ Memo to file from Terence Fitz-Simons, OAQPS, Scott 
Mathias, OAQPS, Mike Rizzo, Region 5, ``Analyses of 1999 PM Data for 
the PM NAAQS Review,'' November 17, 2000, with attachment B, 1999 
PM2.5 Annual Mean and 98th Percentile 24-Hour Average 
Concentrations. Docket No. A-2000-01, Document No. II-B-17.
    \100\ Review of the National Ambient Air Quality Standards for 
Particulate Matter: Policy Assessment for Scientific and Technical 
Information, OAQPS Staff Paper, EPA-452/R-96-013, July, 1996, at IV-
7.
    \101\ The trail maps consulted for this proposal can be found in 
Docket No. A-2000-01, Document No. II-A-65.

         Table II.B-2.--Counties With Annual PM2.5 Levels Above 16 g/m\3\ and Snowmobile Trails
----------------------------------------------------------------------------------------------------------------
   State and PM2.5 exceedance county    County with snowmobile trails     Proximity to PM2.5 exceedance county
----------------------------------------------------------------------------------------------------------------
Ohio:
  Mahoning............................  Mahoning.....................
  Trumbull............................  Trumbull.....................
  Summit..............................  Summit.......................
  Montgomery..........................  Montgomery...................
  Portage.............................  Portage......................
  Franklin............................  Delaware.....................  Borders North.
  Marshall/Ohio (WV)..................  Belmont......................  Borders West.
Montana...............................  Lincoln......................  Lincoln
California:
  Tulane..............................  Tulane.......................
  Butte...............................  Butte........................
  Fresno..............................  Fresno.......................
  Kern................................  Kern.........................
Minnesota:
  Washington..........................  Washington...................
  Wright..............................  Wright.......................
Wisconsin:
  Waukesha............................  Waukesha.....................
  Milwaukee...........................  Milwaukee....................
Oregon:
  Jackson.............................  Douglas......................  Borders NNE.
  Klamath.............................  Douglas......................  Borders North.
Pennsylvania: Washington..............  Layette......................  Borders East.
                                        Somerset.....................
Illinois: Rock Island.................  Rock Island
                                        Henry........................  Borders East.
Iowa: Rock Island (IL)................  Dubuque......................  Borders West.
----------------------------------------------------------------------------------------------------------------

    We expect the PM control strategies contained in this proposal 
would further assist state efforts already underway to attain and 
maintain the PM NAAQS.
4. Health Effects Associated With Air Toxics
    In addition to the human health and welfare impacts described 
above, emissions from the engines covered by this proposal also contain 
several other substances that are known or suspected human or animal 
carcinogens, or have serious noncancer health effects. These include 
benzene, 1,3-butadiene, formaldehyde, acetaldehyde, and acrolein. The 
health effects of these air toxics are described in more detail in 
Chapter 1 of the Draft Regulatory Support Document for this rule. 
Additional information can also be found in the Technical Support

[[Page 51109]]

Document for our final Mobile Source Air Toxics rule.102
---------------------------------------------------------------------------

    \102\ See our Mobile Source Air Toxics final rulemaking, 66 FR 
17230, March 29, 2001, and the Technical Support Document for that 
rulemaking. Docket No. A-2000-01, Documents Nos. II-A-42 and II-A-
30.
---------------------------------------------------------------------------

    The hydrocarbon controls contained in this proposal are expected to 
reduce exposure to air toxics and therefore may help reduce the impact 
of these engines on cancer and noncancer health effects.

C. What Is the Inventory Contribution From the Nonroad Engines and 
Vehicles That Would Be Subject to This Proposal?

    The contribution of emissions from the nonroad engines and vehicles 
that would be subject to the proposed standards to the national 
inventories of pollutants that are associated with the health and 
public welfare effects described in Section II.B are considerable. To 
estimate nonroad engine and vehicle emission contributions, we used the 
latest version of our NONROAD emissions model. This model computes 
nationwide, state, and county emission levels for a wide variety of 
nonroad engines, and uses information on emission rates, operating 
data, and population to determine annual emission levels of various 
pollutants. A more detailed description of the model and our estimation 
methodology can be found in the Chapter 6 of the Draft Regulatory 
Support Document.
    Baseline emission inventory estimates for the year 2000 for the 
categories of engines and vehicles covered by this proposal are 
summarized in Table II.C-1. This table shows the relative contributions 
of the different mobile-source categories to the overall national 
mobile-source inventory. Of the total emissions from mobile sources, 
the categories of engines and vehicles covered by this proposal 
contribute about 13 percent, 3 percent, 6 percent, and 1 percent of HC, 
NOX, CO, and PM emissions, respectively, in the year 2000. 
The results for industrial SI engines indicate they contribute 
approximately 3 percent to HC, NOX, and CO emissions from 
mobile sources. The results for land-based recreational engines reflect 
the impact of the significantly different emissions characteristics of 
two-stroke engines. These engines are estimated to contribute 10 
percent of HC emissions and 3 percent of CO from mobile sources. 
Recreational CI marine contribute less than 1 percent to NOX 
mobile source inventories. When only nonroad emissions are considered, 
the engines and vehicles that would be subject to the proposed 
standards would account for a larger share.
    Our draft emission projections for 2020 for the nonroad engines and 
vehicles subject to this proposal show that emissions from these 
categories are expected to increase over time if left uncontrolled. The 
projections for 2020 are summarized in Table II.C-2 and indicate that 
the categories of engines and vehicles covered by this proposal are 
expected to contribute 33 percent, 9 percent, 9 percent, and 2 percent 
of HC, NOX, CO, and PM emissions in the year 2020. 
Population growth and the effects of other regulatory control programs 
are factored into these projections. The relative importance of 
uncontrolled nonroad engines is higher than the projections for 2000 
because there are already emission control programs in place for the 
other categories of mobile sources which are expected to reduce their 
emission levels. The effectiveness of all control programs is offset by 
the anticipated growth in engine populations.

                                   Table II.C-1.--Modeled Annual Emission Levels for Mobile-Source Categories in 2000
                                                                  [Thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NOX                   HC                    CO                    PM
                                                                 ---------------------------------------------------------------------------------------
                            Category                                          Percent               Percent               Percent               Percent
                                                                     Tons    of mobile     Tons    of mobile     Tons    of mobile     Tons    of mobile
                                                                               source                source                source                source
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total for engines subject to proposed standards.................        343        2.6        985       12.9      4,870        6.3        8.3        1.2
                                                                 =======================================================================================
Highway Motorcycles.............................................          8        0.1         84        1.1        329        0.4        0.4        0.1
Nonroad Industrial SI > 19 kW...................................        306        2.3        247        3.2      2,294        3.0        1.6        0.2
Recreational SI.................................................         13        0.1        737        9.7      2,572        3.3        5.7        0.8
Recreation Marine CI............................................         24        0.2          1        0.0          4        0.0          1        0.1
Marine SI Evap..................................................          0        0.0         89        1.2          0        0.0          0        0.0
Marine SI Exhaust...............................................         32        0.2        708        9.3      2,144        2.8         38        5.4
Nonroad SI  19 kW...............................................        106        0.8      1,460       19.1     18,359       23.6         50        7.2
Nonroad CI......................................................      2,625       19.5        316        4.1      1,217        1.6        253       36.2
Commercial Marine CI............................................        977        7.3         30        0.4        129        0.2         41        5.9
Locomotive......................................................      1,192        8.9         47        0.6        119        0.2         30        4.3
                                                                 ---------------------------------------------------------------------------------------
Total Nonroad...................................................      5,275         39      3,635         48     26,838         35        420         60
Total Highway...................................................      7,981         59      3,811         50     49,811         64        240         34
Aircraft........................................................        178          1        183          2      1,017          1         39          6
                                                                 ---------------------------------------------------------------------------------------
Total Mobile Sources............................................     13,434        100      7,629        100     77,666        100        699        100
                                                                 =======================================================================================
Total Man-Made Sources..........................................     24,538  .........     18,575  .........     99,745  .........      3,095  .........
                                                                 =======================================================================================
Mobile Source percent of Total Man-Made Sources.................         55  .........         41  .........         78  .........         23  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 51110]]


                                   Table II.C-2.--Modeled Annual Emission Levels for Mobile-Source Categories in 2020
                                                                  [Thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NOX                   HC                    CO                    PM
                                                                 ---------------------------------------------------------------------------------------
                            Category                                          Percent               Percent               Percent               Percent
                                                                     Tons    of mobile     Tons    of mobile     Tons    of mobile     Tons    of mobile
                                                                               source                source                source                source
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total for engines subject to proposed standards.................        552        8.9      2,055       33.4      8,404        9.4       11.4        1.8
                                                                 =======================================================================================
Highway Motorcyles..............................................         14        0.2        144        2.3        569        0.6        0.8        0.1
Nonroad Industrial SI > 19 kW...................................        486        7.8        348        5.7      2,991        3.3        2.4        0.4
Recreational SI.................................................         27        0.4      1,706       27.7      5,407        3.3        7.5        1.2
Recreation Marine CI............................................         39        0.6          1        0.0          6        0.0        1.5        0.2
Marine SI Evap..................................................          0        0.0        102        1.4          0        0.0          0        0.0
Marine SI Exhaust...............................................         58        0.9        284        4.6      1,985        2.2         28        4.4
Nonroad SI  19 kW...............................................        106        1.7        986       16.0     27,352       30.5         77       12.2
Nonroad CI......................................................      1,791       28.8        142        2.3      1,462        1.6        261       41.3
Commercial Marine CI............................................        819       13.2         35        0.6        160        0.2         46        7.3
Locomotive......................................................        611        9.8         35        0.6        119        0.1         21        3.3
                                                                 ---------------------------------------------------------------------------------------
Total Nonroad...................................................      3,937         63      3,639         59     39,482         44        444         70
Total Highway...................................................      2,050         33      2,278         37     48,903         54        145         23
Aircraft........................................................        232          4        238          4      1,387          2         43          7
                                                                 ---------------------------------------------------------------------------------------
Total Mobile Sources............................................      6,219        100      6,155        100     89,772        100        632        100
                                                                 =======================================================================================
Total Man-Made Sources..........................................     16,195  .........     16,215  .........    113,440  .........      3,016  .........
                                                                 =======================================================================================
Mobile Source percent of Total Man-Made Sources.................         38  .........         38  .........         79  .........         21  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

D. Regional and Local-Scale Public Health and Welfare Effects

    The previous section describes national-scale adverse public health 
effects associated with the nonroad engines and vehicles covered by 
this proposal. This section describes significant adverse health and 
welfare effects arising from the usage patterns of snowmobiles, Large 
SI engines, and gasoline marine engines on the regional and local 
scale. Studies suggest that emissions from these engines can be 
concentrated in specific areas, leading to elevated ambient 
concentrations of particular pollutants and associated elevated 
personal exposures to operators and by-standers. Recreational vehicles, 
and particularly snowmobiles, are typically operating in rural areas 
such as national parks and wilderness areas, and emissions from these 
vehicles contribute to ambient particulate matter which is a leading 
component of visibility impairment.
1. Health and Welfare Effects Related to Snowmobiles
    In this section, we describe more localized human health and 
welfare effects associated with snowmobile emissions: visibility 
impairment and personal exposure to air toxics and CO. We describe the 
contribution of snowmobile HC emissions to secondary formation of fine 
particles, which are the leading component of visibility impairment and 
adverse health effects related to ambient PM2.5 concentrations greater 
than 16 ug/m3. We also discuss personal exposure to CO emissions and 
air toxics. Gaseous air toxics are components of hydrocarbons, and CO 
personal exposure measurements suggest that snowmobile riders and 
bystanders are exposed to unhealthy levels of gaseous air toxics (e.g., 
benzene) and CO.
    a. Nonroad Engines and Regional Haze. The Clean Air Act established 
special goals for improving visibility in many national parks, 
wilderness areas, and international parks. In the 1977 amendments to 
the Clean Air Act, Congress set as a national goal for visibility the 
``prevention of any future, and the remedying of any existing, 
impairment of visibility in mandatory class I Federal areas which 
impairment results from manmade air pollution'' (CAA section 
169A(a)(1)). The Amendments called for EPA to issue regulations 
requiring States to develop implementation plans that assure 
``reasonable progress'' toward meeting the national goal (CAA Section 
169A(a)(4)). EPA issued regulations in 1980 to address visibility 
problems that are ``reasonably attributable'' to a single source or 
small group of sources, but deferred action on regulations related to 
regional haze, a type of visibility impairment that is caused by the 
emission of air pollutants by numerous emission sources located across 
a broad geographic region. At that time, EPA acknowledged that the 
regulations were only the first phase for addressing visibility 
impairment. Regulations dealing with regional haze were deferred until 
improved techniques were developed for monitoring, for air quality 
modeling, and for understanding the specific pollutants contributing to 
regional haze.
    In the 1990 Clean Air Act amendments, Congress provided additional 
emphasis on regional haze issues (see CAA section 169B). In 1999 EPA 
finalized a rule that calls for States to establish goals and emission 
reduction strategies for improving visibility in all 156 mandatory 
Class I national parks and wilderness areas. In that rule, EPA also 
encouraged the States to work together in developing and implementing 
their air quality plans. The regional haze program is designed to 
improve visibility and air quality in our most treasured natural areas. 
At the same time, control strategies designed to improve visibility in 
the national parks and wilderness areas will improve visibility over 
broad geographic areas.
    Regional haze is caused by the emission from numerous sources 
located over a wide geographic area. Such sources include, but are not 
limited to, major and minor stationary sources, mobile sources, and 
area sources. Visibility impairment is caused by pollutants (mostly 
fine particles and precursor gases) directly emitted to the

[[Page 51111]]

atmosphere by several activities (such as electric power generation, 
various industry and manufacturing processes, truck and auto emissions, 
construction activities, etc.). These gases and particles scatter and 
absorb light, removing it from the sight path and creating a hazy 
condition.
    Some fine particles are formed when gases emitted to the air form 
particles as they are carried downwind (examples include sulfates, 
formed from sulfur dioxide, and nitrates, formed from nitrogen oxides). 
These activities generally span broad geographic areas and fine 
particles can be transported great distances, sometimes hundreds or 
thousands of miles. Consequently, visibility impairment is a national 
problem. Without the effects of pollution a natural visual range is 
approximately 140 miles in the West and 90 miles in the East. However, 
fine particles have significantly reduced the range that people can see 
and in the West the current range is 33-90 miles and in the East it is 
only 14 to 24 miles.
    Because of evidence that fine particles are frequently transported 
hundreds of miles, all 50 states, including those that do not have 
Class I areas, will have to participate in planning, analysis and, in 
many cases, emission control programs under the regional haze 
regulations. Even though a given State may not have any Class I areas, 
pollution that occurs in that State may contribute to impairment in 
Class I areas elsewhere. The rule encourages states to work together to 
determine whether or how much emissions from sources in a given state 
affect visibility in a downwind Class I area.
    The regional haze program calls for states to establish goals for 
improving visibility in national parks and wilderness areas to improve 
visibility on the haziest 20 percent of days and to ensure that no 
degradation occurs on the clearest 20 percent of days. The rule 
requires states to develop long-term strategies including enforceable 
measures designed to meet reasonable progress goals. Under the regional 
haze program, States can take credit for improvements in air quality 
achieved as a result of other Clean Air Act programs, including 
national mobile-source programs.
    Nonroad engines (including construction equipment, farm tractors, 
boats, planes, locomotives, recreational vehicles, and marine engines) 
contribute significantly to regional haze. This is because there are 
nonroad engines in all of the states, and their emissions contain 
precursors of fine PM and organic carbon that are transported and 
contribute to the formation of regional haze throughout the country and 
in Class I areas specifically. As illustrated in Table II.D-1, nonroad 
engines are expected to contribute 15 percent of national VOC 
emissions, 23 percent of national NOX emissions, 6 percent 
of national SOx emissions, and 14 percent of national PM10 emissions. 
Snowmobiles alone are estimated to emit 208,926 tons of total 
hydrocarbons (THC), 1,461 tons of NOX, 2,145 tons of SOx, 
and 5,082 tons of PM in 2007.

                                              Table II.D-1.--National Emissions of Various Pollutants--2007
                                                                 [Thousands short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    VOC                     NOX                     SOX                    PM10
                         Source                          -----------------------------------------------------------------------------------------------
                                                             Tons       Percent      Tons       Percent      Tons       Percent      Tons       Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Heavy-Duty Highway......................................         413           3       2,969          14          24           0         115           4
Light-Duty Highway......................................       2,596          18       2,948          14          24           0          82           3
Nonroad.................................................       2,115          15       4,710          23       1,027           6         407          14
Electric General........................................          35           0       4,254          21      10,780          63         328          12
Point...................................................       1,639          11       3,147          15       3,796          22       1,007          36
Area....................................................       7,466          52       2,487          12       1,368           8         874          31
                                                         ------------            ------------            ------------            ------------
      Total.............................................      14,265                  20,516                  17,019                   2,814
--------------------------------------------------------------------------------------------------------------------------------------------------------

    b. Snowmobiles and Visibility Impairment. As noted above, EPA 
issued regulations in 1980 to address Class I area visibility 
impairment that is ``reasonably attributable'' to a single source or 
small group of sources. In 40 CFR Part 51.301 of the visibility 
regulations, visibility impairment is defined as ``any humanly 
perceptible change in visibility (light extinction, visual range, 
contrast, coloration) from that which would have existed under natural 
conditions.'' States are required to develop implementation plans that 
include long-term strategies for improving visibility in each class I 
area. The long-term strategies under the 1980 regulations should 
consist of measures to reduce impacts from local sources and groups of 
sources that contribute to poor air quality days in the class I area. 
Types of impairment covered by these regulations includes layered hazes 
and visible plumes. While these kinds of visibility impairment can be 
caused by the same pollutants and processes as those that cause 
regional haze, they generally are attributed to a smaller number of 
sources located across a smaller area. The Clean Air Act and associated 
regulations call for protection of visibility impairment in class I 
areas from localized impacts as well as broader impacts associated with 
regional haze.
    Visibility and particle monitoring data are available for 8 Class I 
areas where snowmobiles are commonly used. These are: Acadia, Boundary 
Waters, Denali, Mount Rainier, Rocky Mountain, Sequoia and Kings 
Canyon, Voyageurs, and Yellowstone.\103\ Visibility and fine particle 
data for these parks are set out in Table II.D-2. This table shows the 
number of monitored days in the winter that fell within the 20-percent 
haziest days for each of these eight parks. Monitors collect data two 
days a week for a total of about 104 days of monitored values. Thus, 
for a particular site, a maximum of 21 worst possible days of these 104 
days with monitored values constitute the set of 20-percent haziest 
days during a year which are tracked as the primary focus of regulatory 
efforts.\104\ With the exception of Denali in Alaska, we defined the 
snowmobile season as January 1 through March 15 and December 15 through 
December 31 of the same calendar year, consistent with the methodology 
used in the Regional Haze Rule, which is calendar-year based. For 
Denali in

[[Page 51112]]

Alaska, the snowmobile season is October 1 to April 30. The Agency 
would be interested in comments from the public on the start and end 
dates for the typical snowmobile season at each of these national 
parks.
---------------------------------------------------------------------------

    \103\ No data were available at five additional parks where 
snowmobiles are also commonly used: Black Canyon of the Gunnison, 
CO, Grant Teton, WY, Northern Cascades, WA, Theodore Roosevelt, ND, 
and Zion, UT.
    \104\ Letter from Debra C. Miller, Data Analyst, National Park 
Service, to Drew Kodjak, August 22, 2001. Docket No. A-2000-01, 
Document Number. II-B-28.

  Table II.D-2.--Winter Days That Fall Within the 20 Percent Haziest Days at National Parks Used by Snowmobiles
----------------------------------------------------------------------------------------------------------------
                                                                             Number of sampled wintertime days
                                                                              within 20 percent haziest days
             NPS Unit                             State(s)                     (maximum of 21 sampled days)
                                                                         ---------------------------------------
                                                                            1996      1997      1998      1999
----------------------------------------------------------------------------------------------------------------
Acadia NP........................  ME...................................        4         4         2         1
Denali NP and Preserve...........  AK...................................       10        10        12         9
Mount Rainier NP.................  WA...................................        1         3         1         1
Rocky Mountain NP................  CO...................................        2         1         2         1
Sequoia and Kings Canyon NP......  CA...................................        4         9         1         8
Voyageurs NP (1989-1992).........  MN...................................     1989      1990      1991      1992
                                                                                3         4         6         8
--Boundary Waters USFS Wilderness  MN...................................        2         5         1         5
 Area (close to Voyaguers with
 recent data).
Yellowstone NP...................  ID, MT, WY...........................        0         2         0        0
----------------------------------------------------------------------------------------------------------------
Source: Letter from Debra C. Miller, Data Analyst, National Park Service, to Drew Kodjak, August 22, 2001.
  Docket No. A-2000-01, Document Number. II-B-28.

    The information presented in Table II.D-2 shows that visibility 
data support a conclusion that there are at least eight Class I Areas 
(7 in National Parks and one in a Wilderness Area) frequented by 
snowmobiles with one or more wintertime days within the 20-percent 
haziest days of the year. For example, Rocky Mountain National Park in 
Colorado was frequented by about 27,000 snowmobiles during the 1998-
1999 winter. Of the monitored days characterized as within the 20-
percent haziest monitored days, two (2) of those days occurred during 
the wintertime when snowmobile emissions such as hydrocarbons 
contributed to visibility impairment. According to the National Park 
Service, ``[s]ignificant differences in haziness occur at all eight 
sites between the averages of the clearest and haziest days. 
Differences in mean standard visual range on the clearest and haziest 
days fall in the approximate range of 115-170 km.'' \105\
---------------------------------------------------------------------------

    \105\ Letter from Debra C. Miller, Data Analyst, National Park 
Service, to Drew Kodjak, August 22, 2001. Docket No. A-2000-01, 
Document Number. II-B-28.
---------------------------------------------------------------------------

    Ambient concentrations of fine particles are the primary pollutant 
responsible for visibility impairment. Five pollutants are largely 
responsible for the chemical composition of fine particles: sulfates, 
nitrates, organic carbon particles, elemental carbon, and crustal 
material. Hydrocarbon emissions from automobiles, trucks, snowmobiles, 
and other industrial processes are common sources of organic carbon. 
The organic carbon fraction of fine particles ranges from 47 percent in 
Western areas such as Denali National Park, to 28 percent in Rocky 
Mountain National Park, to 13 percent in Acadia National Park.\106\
---------------------------------------------------------------------------

    \106\ Letter from Debra C. Miller, Data Analyst, National Park 
Service, to Drew Kodjak, August 22, 2001. Docket No. A-2000-01, 
Document Number. II-B-28.
---------------------------------------------------------------------------

    The contribution of snowmobiles to elemental carbon and nitrates is 
small. Their contribution to sulfates is a function of fuel sulfur and 
is small and will decrease even more as the sulfur content of their 
fuel decreases due to our recently finalized fuel sulfur requirements. 
In the winter months, however, hydrocarbon emissions from snowmobiles 
can be significant, as indicated in Table II.D-3, and these HC 
emissions can contribute significantly to the organic carbon fraction 
of fine particles which are largely responsible for visibility 
impairment. This is because they are typically powered by two-stroke 
engines that emit large amounts of hydrocarbons. In Yellowstone, a park 
with high snowmobile usage during the winter months, snowmobile 
hydrocarbon emissions can exceed 500 tons per year, as much as several 
large stationary sources. Other parks with less snowmobile traffic are 
less impacted by these hydrocarbon emissions.\107\
---------------------------------------------------------------------------

    \107\ Technical Memorandum, Aaron Worstell, Environmental 
Engineer, National Park Service, Air Resources Division, Denver, 
Colorado, particularly Table 1. Docket No. A-2000-01, Document 
Number II-G-178.
---------------------------------------------------------------------------

    Table II.D-3 shows modeled tons of four pollutants during the 
winter season in five Class I national parks for which we have 
estimates of snowmobile use. The national park areas outside of Denali 
in Alaska are open to snowmobile operation in accordance with special 
regulations (36 CFR Part 7). Denali National Park permits snowmobile 
operation by local rural residents engaged in subsistence uses (36 CFR 
Part 13). Emission calculations are based on an assumed 2 hours of use 
per snowmobile visit at 16 hp with the exception of Yellowstone where 4 
hours of use at 16 hp was assumed. The emission factors used to 
estimate these emissions are identical to those used by the NONROAD 
model. Two-stroke snowmobile emission factors are: 111 g/hp-hr HC, 296 
g/hp-hr CO, 0.86 g/hp-hr NOX, and 2.7 g/hp-hr PM. These 
emission factors are based on several engine tests performed by the 
International Snowmobile Manufacturers Association (ISMA) and the 
Southwest Research Institute (SwRI). These emission factors are still 
under review, and the emissions estimates may change pending the 
outcome of that review.

[[Page 51113]]



                                Table II.D-3.--Winter Season Snowmobile Emissions
                                           [Tons; 1999 Winter Season]
----------------------------------------------------------------------------------------------------------------
                            NPS unit                                  HC          CO          NOX         PM
----------------------------------------------------------------------------------------------------------------
Denali NP & Preserve............................................        >9.8       >26.1       >0.08       >0.24
Grand Teton NP..................................................        13.7        36.6         0.1         0.3
Rocky Mountain NP...............................................       106.7       284.7         0.8         2.6
Voyageurs NP....................................................       138.5       369.4         1.1         3.4
Yellowstone NP..................................................       492.0     1,311.9         3.8       12.0
----------------------------------------------------------------------------------------------------------------
Source: Letter from Aaron J. Worstell, Environmental Engineer, National Park Service, Air Resources Division, to
  Drew Kodjak, August 21, 2001, particularly Table 1. Docket No. A-2000-01, Document No. II-G-178.

    Inventory analysis performed by the National Park Service for 
Yellowstone National Park suggests that snowmobile emissions can be a 
significant source of total annual mobile source emissions for the park 
year round. Table II.D-4 shows that in the 1998 winter season 
snowmobiles contributed 64 percent, 39 percent, and 30 percent of HC, 
CO, and PM emissions.\108\ It should be noted that the snowmobile 
emission factors used to estimate these contributions are currently 
under review, and the snowmobile emissions may be revised down. 
However, when the emission factors used by EPA in its NONROAD model are 
used, the contribution of snowmobiles to total emissions in Yellowstone 
remains significant: 59 percent, 33 percent, and 45 percent of HC, CO 
and PM emissions. The University of Denver used remote-sensing 
equipment to estimate snowmobile HC emissions at Yellowstone during the 
winter of 1998-1999, and estimated that snowmobiles contribute 77% of 
annual hydrocarbon emissions at the park.\109\ The portion of 
wintertime emissions attributable to snowmobiles is even higher, since 
all snowmobile emissions occur during the winter months.
---------------------------------------------------------------------------

    \108\ National Park Service, February 2000. Air Quality Concerns 
Related to Snowmobile Usage in National Parks. Air Docket A-2000-01, 
Document No. II-A-44.
    \109\ G. Bishop, et al., Snowmobile Contributions to Mobile 
Source Emissions in Yellowstone National Park, Environmental Science 
and Technology, Vol. 35, No. 14, at 2873. Docket No. A-2000-01, 
Document No. II-A-47.

                                        Table II.D-4.--1998 Annual HC Emissions (tpy), Yellowstone National Park
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    HC
                                                                    CO
                                                                    NOX
                                                                    PM
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source:
  Coaches...............................................        2.69          0%       24.29          1%        0.42          0%        0.01          0%
  Autos.................................................      307.17         33%    2,242.12         54%      285.51         88%       12.20         60%
  RVs...................................................       15.37          2%      269.61          6%       24.33          7%        0.90          4%
  Snowmobiles...........................................      596.22         64%    1,636.44         39%        1.79          1%        6.07         30%
  Buses.................................................        4.96          1%       18.00          0%       13.03          4%        1.07          5%
                                                         ------------            ------------            ------------            ------------
        Total...........................................       926.4                4,190.46                  325.08                   20.25
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: National Park Service, February 2000. Air Quality Concerns Related to Snowmobile Usage in National Parks. Air Docket A-2000-01, Document No. II-
  A-44.

    The information presented in this discussion indicates that 
snowmobiles are significant emitters of pollutants that are known to 
contribute to visibility impairment in some Class I areas. Annual and 
particularly wintertime hydrocarbon emissions from snowmobiles are high 
in the five parks considered in Table II.D-4, with two parks having HC 
emissions nearly as high as Yellowstone (Rocky Mountain and Voyageurs). 
The proportion of snowmobile emissions to emissions from other sources 
affecting air quality in these parks is likely to be similar to that in 
Yellowstone.
    c. Snowmobiles and personal exposure to air toxics and CO. 
Snowmobile users can be exposed to high air toxic and CO emissions, 
both because they sit very close to the vehicle's exhaust port and 
because it is common for them to ride their vehicles on groomed trails 
where they travel fairly close behind other snowmobiles. Because of 
these riding patterns, snowmobilers breathe exhaust emissions from 
their own vehicle, the vehicle directly in front, as well as those 
farther up the trail. This can lead to relatively high personal 
exposure levels of harmful pollutants. A study of snowmobile rider CO 
exposure conducted at Grand Teton National Park showed that a 
snowmobiler riding at distances of 25 to 125 feet behind another 
snowmobiler and traveling at speeds from 10 to 40 mph can be exposed to 
average CO levels ranging from 0.5 to 23 ppm, depending on speed and 
distance. The highest CO level measured in this study was 45 ppm, as 
compared to the current 1-hour NAAQS for CO of 35 ppm.\110\ While 
exposure levels can be less if a snowmobile drives 15 feet off the 
centerline of the lead snowmobile, the exposure levels are still of 
concern. This study led to the development of an empirical model for 
predicting CO exposures from riding behind snowmobiles.
---------------------------------------------------------------------------

    \110\ Snook and Davis, 1997, ``An Investigation of Driver 
Exposure to Carbon Monoxide While Traveling Behind Another 
Snowmobile.'' Docket No. A-2000-01, Document Number II-A-35.
---------------------------------------------------------------------------

    Hydrocarbon speciation for snowmobile emissions was performed for 
the State of Montana in a 1997 report.\111\ Using the empirical model 
for CO from the Grand Teton exposure study with benzene emission rates 
from the State of Montana's emission study, benzene exposures for 
riders driving behind a single snowmobile were predicted to range from 
1.2E+02 to 1.4E+03 g/m3. Using the same model to predict 
exposures when riding at the end of a line of six snowmobiles spaced 25 
feet apart yielded exposure predictions of 3.5E+03, 1.9E+03,

[[Page 51114]]

1.3E+03, and 1.2E+03 g/m3 benzene. at 10, 20, 30, and 40 mph, 
respectively.
---------------------------------------------------------------------------

    \111\ Emissions from Snowmobile Engines Using Bio-based Fuels 
and Lubricants, Southwest Research Institute, August, 1997, at 22. 
Docket No. A-2000-01, Document Number II-A-50.
---------------------------------------------------------------------------

    The cancer risk posed to those exposed to benzene emissions from 
snowmobiles must be viewed within the broader context of expected 
lifetime benzene exposure. Observed monitoring data and predicted 
modeled values demonstrate that a significant cancer risk already 
exists from ambient concentrations of benzene for a large portion of 
the US population. The Agency's 1996 National-Scale Air Toxics 
Assessment of personal exposure to ambient concentrations of air toxic 
compounds emitted by outside sources (e.g. cars and trucks, power 
plants) found that benzene was among the five air toxics that appear to 
pose the greatest risk to people nationwide. This national assessment 
found that for approximately 50% of the US population in 1996, the 
inhalation cancer risks associated with benzene exceeded 10 in one 
million. Modeled predictions for ambient benzene from this assessment 
correlated well with observed monitored concentrations of benzene 
ambient concentrations.
    Specifically, the draft National-Scale Assessment predicted 
nationwide annual average benzene exposures from outdoor sources to be 
1.4 g/m3.\112\ In comparison, snowmobile riders and those 
directly exposed to snowmobile exhaust emissions had predicted benzene 
levels two to three orders of magnitude greater than the 1996 national 
average benzene concentrations.\113\ These elevated levels are also 
known as air toxic ``hot spots,'' which are of particular concern to 
the Agency. Thus, total annual average exposures to typical ambient 
benzene concentrations combined with elevated short-term exposures to 
benzene from snowmobiles may pose a significant risk of adverse public 
health effects to snowmobile riders and those exposed on a frequent 
basis to exhaust benzene emissions from snowmobiles. We request comment 
on this issue.
---------------------------------------------------------------------------

    \112\ National-Scale Air Toxics Assessment for 1996, EPA-453/R-
01-003, Draft, January 2001.
    \113\ Technical Memorandum, Chad Bailey, Predicted benzene 
exposures and ambient concentrations on and near snowmobile trails, 
August 17, 2001. Air Docket A-2000-01, Document No. II-B-27.
---------------------------------------------------------------------------

    Since snowmobile riders often travel in large groups, the riders 
towards the back of the group are exposed to the accumulated exhaust of 
those riding ahead. These exposure levels can continue for hours at a 
time. An additional consideration is that the risk to health from CO 
exposure increases with altitude, especially for unacclimated 
individuals. Therefore, a park visitor who lives at sea level and then 
rides his or her snowmobile on trails at high-altitude is more 
susceptible to the effects of CO than local residents.
    In addition to snowmobilers themselves, people who are active in 
proximity to the areas where snowmobilers congregate may also be 
exposed to high CO levels. An OSHA industrial hygiene survey reported a 
peak CO exposure of 268 ppm for a Yellowstone employee working at an 
entrance kiosk where snowmobiles enter the park. This level is greater 
than the NIOSH peak recommended exposure limit of 200 ppm. OSHA's 
survey also measured employees' exposures to several air toxics. 
Benzene exposures in Yellowstone employees ranged from 67-600 
g/m3, with the same individual experiencing highest CO and 
benzene exposures. The highest benzene exposure concentrations exceeded 
the NIOSH Recommended Exposure Limit of 0.1 ppm for 8-hour 
exposures.\114\
---------------------------------------------------------------------------

    \114\ U.S. Department of Labor, OSHA, Billings Area Office, 
``Industrial Hygiene Survey of Park Employee Exposures During Winter 
Use at Yellowstone National Park,'' February 19 through February 24, 
2000. Docket No. A-2000-01, Document Number II-A-37; see also 
Industrial Hygiene Consultation Report prepared for Yellowstone 
National Park by Tim Radtke, CIH, Industrial Hygienist, June 1997. 
Docket A-2000-01, Document No. A-II-41.
---------------------------------------------------------------------------

    d. Summary. For all of the reasons described in this section, we 
continue to believe it is appropriate to set emission standards for 
snowmobiles. At the national level, these engines contribute to CO 
levels in several nonattainment areas. Snowmobiles contribute 
significantly to hydrocarbon emissions that are known to contribute to 
visibility impairment in Class I areas. In addition, snowmobilers 
riding in a trail formation, as well as park attendants and other 
bystanders can experience very high levels of CO and benzene for 
relatively long periods of time. The proposed standards will help 
reduce these emissions and help alleviate these concerns.
2. Recreational Marine
    As with snowmobiles, the usage patterns of recreational marine 
engine can lead to high personal exposure levels, particularly for CO 
emissions. The U.S. Coast Guard reported cases of CO poisoning caused 
by recreational boat usage.\115\ These Coast Guard investigations into 
recreational boating accident reports between 1989 to1998 show that 57 
accidents were reported, totaling 87 injuries and 32 fatalities, that 
involved CO poisoning. An article in the Journal of the American 
Medical Association also discusses CO poisoning among recreational boat 
users.\116\ This study reports 21 incidences of CO poisoning from 
sterndrive and inboard engines; two-thirds of these incidences occurred 
when the boat was cruising.
---------------------------------------------------------------------------

    \115\ Summarized in an e-mail from Phil Cappel of the U.S. Coast 
Guard to Mike Samulski of the U.S. Environmental Protection Agency, 
October 19, 2000. Docket A-2000-01, Document No. II-A-46.
    \116\ Silvers, S., Hampton, N., ``Carbon Monoxide Poisoning 
Among Recreational Boaters,'' JAM, November 22/29, 1995, Vol 274, 
No. 20. Docket A-2000-01, Document No. 11-A-45.
---------------------------------------------------------------------------

    The CO exposure to boaters comes from three general sources. First, 
CO may enter the engine compartment and cabin spaces from leaks in the 
exhaust system. Second, boaters may be exposed to CO if they are near 
the engine when it is idling such as swimming behind the boat. Third, 
CO may be drawn into the boat when it is cruising due to a back draft 
of air into the boat known as the ``station wagon effect.'' \117\
---------------------------------------------------------------------------

    \117\ United States Coast Guard, ``Boating Safety Circular 64,'' 
December 1986. Docket A-2000-01, Document No. II-A-43.
---------------------------------------------------------------------------

3. Large SI Engines
    Exhaust emissions from applications with significant indoor use can 
expose individual operators or bystanders to dangerous levels of 
pollution. Forklifts, ice-surfacing machines, sweepers, and carpet 
cleaning equipment are examples of large industrial spark-ignition 
engines that often operate indoors or in other confined spaces. 
Forklifts alone account for over half of the engines in this category. 
Indoor use may include extensive operation in a temperature-controlled 
environment where ventilation is kept to a minimum (for example, for 
storing, processing, and shipping produce).
    The principal concern for human exposure relates to CO emissions. 
One study showed several forklifts operating on liquefied petroleum gas 
(LPG) with measured CO emissions ranging from 10,000 to 90,000 ppm (1 
to 9 percent).\118\ The threshold limit value for a time-weighted 
average 8-hour workplace exposure set by the American Conference of 
Governmental Industrial Hygienists is 25 ppm. The recommended limit 
adopted by the National Institute for Occupational Safety and Health is 
35 ppm for 8-hour exposure and maximum instantaneous exposure of 200 
ppm. While these lower numbers refer to ambient concentrations, the 
very high documented exhaust concentrations

[[Page 51115]]

would quickly exceed the ambient levels in any operation in enclosed 
areas without extraordinary ventilation.
---------------------------------------------------------------------------

    \118\ ``Warehouse Workers' Headache, Carbon Monoxide Poisoning 
from Propane-Fueled Forklifts,'' Thomas A. Fawcett, et al, Journal 
of Occupational Medicine, January 1992, p.12. Docket A-2000-01, 
Document No. II-A-36.
---------------------------------------------------------------------------

    Large SI engines operating on any fuel can have very high CO 
emission levels. While our emission modeling estimates a significantly 
lower emission rate for engines fueled by LPG relative to gasoline, the 
study described above shows clearly that individual engines that should 
have low CO emissions can, through maladjustment or normal degradation, 
reach dangerous emission levels.
    Additional exposure concerns occur at ice rinks. Numerous papers 
have identified ice-surfacing machines with spark-ignition engines as 
the source of dangerous levels of CO and NO2, both for 
skaters and for spectators.\119\ This is especially problematic for 
skaters, who breathe air in the area where pollutant concentration is 
highest, with higher respiration rates resulting from their high level 
of physical activity. This problem has received significant attention 
from the medical community.
---------------------------------------------------------------------------

    \119\ ``Summary of Medical Papers Related to Exhaust Emission 
Exposure at Ice Rinks,'' EPA Memorandum from Alan Stout to Docket A-
2000-01. Docket A-2000-01, Document No. II-A-38.
---------------------------------------------------------------------------

    In addition to CO emissions, HC emissions from all Large SI engines 
can lead to increased exposure to harmful pollutants, particularly air 
toxic emissions. Since many gasoline or dual-fuel engines are in 
forklifts that operate indoors, reducing evaporative emissions could 
have additional health benefits to operators and other personnel. Fuel 
vapors can also cause odor problems.

III. Nonroad: General Concepts

    This section describes general concepts concerning the proposed 
emission standards and the ways in which a manufacturer would show 
compliance with these standards. Clean Air Act Section 213 requires us 
to set standards that achieve the greatest degree of emission reduction 
achievable through the application of technology that will be 
available, giving appropriate consideration to cost, noise, energy, and 
safety factors. In addition to emission standards, this document 
describes a variety of proposed requirements such as applying for 
certification, labeling engines, and meeting warranty requirements to 
define a process for implementing the proposed emission-control program 
in an effective way.
    The discussions in this section are general and are meant to cover 
all the nonroad engines and vehicles that would be subject to the 
proposed standards. Refer to the discussions of specific engine 
programs, contained in Sections IV through VI, for more information 
about specific requirements for different categories of nonroad engines 
and vehicles. We request comment on all aspects of these general 
program provisions.
    This section describes general nonroad provisions related to 
certification prior to sale or introduction into commerce. Section VII 
describes several proposed compliance provisions that apply generally 
to nonroad engines, and Section VIII similarly describes general 
testing provisions.

A. Scope of Application

    As noted in Section I.C.1, this proposal covers recreational marine 
diesel engines, nonroad industrial SI engines rated over 19 kW, and 
recreational vehicles introduced into commerce in the United States. 
The following sections describe generally when emission standards apply 
to these products. Refer to the specific program discussion below for 
more information about the scope of application and timing of the 
proposed standards.
1. Do the Standards Apply to All Engines and Vehicles or Only to New 
Engines and Vehicles?
    The scope of this proposal is broadly set by Clean Air Act section 
213(a)(3), which instructs us to set emission standards for new nonroad 
engines and new nonroad vehicles. Generally speaking, the proposed rule 
is intended to cover all new engines and vehicles in the categories 
listed above (including any associated equipment or vessels).\120\ Once 
the emission standards apply to a group of engines or vehicles, 
manufacturers must get a certificate of conformity from us before 
selling them in the United States.\121\ This includes importation and 
any other means of introducing engines and vehicles into commerce. We 
also require equipment manufacturers that install engines from other 
companies to install only certified engines once emission standards 
apply. The certificate of conformity (and corresponding engine label) 
provide assurance that manufacturers have met their obligation to make 
engines that meet emission standards over the useful life we specify in 
the regulations.
---------------------------------------------------------------------------

    \120\ For some categories, we are proposing vehicle-based or 
vessel-based standards. In these cases, the term ``engine'' in this 
document applies equally to the vehicles or vessels.
    \121\ The term ``manufacturer'' includes any individual or 
company introducing engines into commerce in the United States.
---------------------------------------------------------------------------

2. How Do I Know if My Engine or Equipment Is New?
    We are proposing to define ``new'' consistent with previous 
rulemakings. Under the proposed definition, a nonroad engine (or 
nonroad equipment) is considered new until its title has been 
transferred to the ultimate purchaser or the engine has been placed 
into service. This proposed definition would apply to both engines and 
equipment, so the nonroad equipment using these engines, including all-
terrain vehicles, snowmobiles, off-highway motorcycles, and other land-
based nonroad equipment would be considered new until their title has 
been transferred to an ultimate buyer. In Section III.B.1 we describe 
how to determine the model year of individual engines and vehicles.
    To further clarify the proposed definition of new nonroad engine, 
we are proposing to specify that a nonroad engine, vehicle, or 
equipment is placed into service when it is used for its intended 
purpose. We are therefore proposing that an engine subject to the 
proposed standards is used for its functional purpose when it is 
installed on an all-terrain vehicle, snowmobile, off-highway 
motorcycle, marine vessel, or other piece of nonroad equipment. We need 
to make this clarification because some engines are made by modifying a 
highway or land-based nonroad engine that has already been installed on 
a vehicle or other piece of equipment. For example, someone can install 
an engine in a recreational marine vessel after it has been used for 
its functional purpose as a land-based highway or nonroad engine. We 
believe this is a reasonable approach because the practice of adapting 
used highway or land-based nonroad engines may become more common if 
these engines are not subject to the standards in this proposal.
    In summary, an engine would be subject to the proposed standards if 
it is:

 Freshly manufactured, whether domestic or imported; this may 
include engines produced from engine block cores
 Installed for the first time in nonroad equipment after having 
powered a car or a category of nonroad equipment subject to different 
emission standards
 Installed in new nonroad equipment, regardless of the age of 
the engine
 Imported (new or used)
3. When Do Imported Engines Need To Meet Emission Standards?
    The proposed emission standards would apply to all new engines that 
are used in the United States. According to

[[Page 51116]]

Clean Air Act section 216, ``new'' includes engines that are imported 
by any person, whether freshly manufactured or used. Thus, the proposed 
program would include engines that are imported for use in the United 
States, whether they are imported as loose engines or if they are 
already installed on a marine vessel, recreational vehicle, or other 
piece of nonroad equipment, built elsewhere. All imported engines would 
need an EPA-issued certificate of conformity to clear customs, with 
limited exemptions (as described below).
    If an engine or marine vessel, recreational vehicle, or other piece 
of nonroad equipment that was built after emission standards take 
effect is imported without a currently valid certificate of conformity, 
we would still consider it to be a new engine, vehicle, or vessel. This 
means it would need to comply with the applicable emission standards. 
Thus, for example, a marine vessel manufactured in a foreign country in 
2007, then imported into the United States in 2010, would be considered 
``new.'' The engines on that piece of equipment would have to comply 
with the requirements for the 2007 model year, assuming no other 
exemptions apply. This provision is important to prevent manufacturers 
from avoiding emission standards by building vessels abroad, 
transferring their title, and then importing them as used vessels.
    With regard to recreational vehicles, the United States Customs 
Service currently allows foreign nationals traveling with their 
personal automobiles, trailers, aircraft, motorcycles, or boats to 
import such vehicles without having to pay a tariff, so long as they 
are used in the United States only for the transportation of such 
person.\122\ We propose to use this approach in our regulation of 
emissions from recreational vehicles (snowmobiles, off-highway 
motorcycles, and all-terrain vehicles). We propose to allow 
noncompliant recreational vehicles that are the personal property of 
foreign nationals to be imported into the United States as long as the 
foreign national bringing them into the country intends to use them 
only for his or her recreational purposes and they are not left here 
when the person leaves the country (they are either taken back or 
destroyed). In other words, such recreational vehicles would not be 
considered ``new'' for the purpose of determining whether they must 
comply with the proposed emission limits. We propose that a time limit 
of one year on this exemption so that recreational vehicles imported 
for more than that period of time would be considered imported, and 
therefore ``new'' and subject to the proposed emission limits. We are 
also proposing that this time period cannot be extended. This time 
limit is designed to prevent a person from using the exemption to 
effectively circumvent the standards.
---------------------------------------------------------------------------

    \122\ Harmonized Tariff Schedule of the United States (2001) 
(Rev. 1), subheading 9804.00.35. A copy of this document is included 
in Air Docket A-2000-01, at Document No. II-A-82.
---------------------------------------------------------------------------

    This exemption generally would not apply to any commercial engines 
that would be subject to emission standards. To import noncomplying 
engines for commercial applications, the importer would have to meet 
the requirements for a different exemption, as described in Section 
VII.
4. Do the Standards Apply to Exported Engines or Vehicles?
    Engines or vehicles intended for export would generally not be 
subject to the requirements of the proposed emission-control program. 
However, engines that are exported and subsequently re-imported into 
the United States would need to be certified. For example, this would 
be the case when a foreign company purchases engines manufactured in 
the United States for installation on a marine vessel, recreational 
vehicle, or other nonroad equipment for export back to the United 
States. Those engines would be subject to the emission standards that 
apply on the date the engine was originally manufactured. If the engine 
is later modified and certified (or recertified), the engine is subject 
to emission standards that apply on the date of the modification. So, 
for example, foreign boat builders buying U.S.-made engines without 
recertifying the engines will need to make sure they purchase complying 
engines for the products they sell in the U.S.
5. Are There Any New Engines or Vehicles That Would Not Be Covered?
    We are proposing to extend our basic nonroad exemptions to the 
engines and vehicles covered by this proposal. These include the 
testing exemption, the manufacturer-owned exemption, the display 
exemption, and the national security exemption. These exemptions are 
described in more detail in Section VII.C.
    In addition, the Clean Air Act does not consider stationary engines 
or engines used solely for competition to be nonroad engines, so the 
proposed emission standards do not apply to them. Refer to the program 
discussions below for a discussion of how these exclusions apply for 
different categories of engines.

B. Emission Standards and Testing

1. How Does EPA Determine the Emission Standards?
    Our general goal in designing the proposed standards is to develop 
a program that will achieve significant emission reductions. We are 
guided by Clean Air Act section 213(a)(3), which instructs us to 
``achieve the greatest degree of emission reduction achievable through 
the application of technology the Administrator determines will be 
available for the engines or vehicles to which such standards apply, 
giving appropriate consideration to the cost of applying such 
technology within the period of time available to manufacturers and to 
noise, energy, and safety factors associated with the application of 
such technology.'' The Act also instructs us to first consider 
standards equivalent in stringency to standards for comparable motor 
vehicles or engines (if any) regulated under section 202, taking into 
consideration technological feasibility, costs, and other factors.
    Engines subject to the proposed exhaust emission standards would 
have to meet the standards based on measured emissions of specified 
pollutants such as NOX, HC, or CO, though not all engines 
will have standards for each pollutant. Diesel engines generally must 
also meet a PM emission standard. In addition, there may be 
requirements for crankcase or evaporative emissions, as described 
below.
    The proposed emission standards would be effective on a model-year 
basis. We are proposing to define model year much like we do for 
passenger cars. It would generally mean either the calendar year or 
some other annual production period based on the manufacturer's 
production practices. For example, manufacturers could start selling 
2006 model year engines as early as January 2, 2005, as long as the 
production period extends until at least January 1, 2006. All of a 
manufacturer's engines from a given model year would have to meet 
emission standards for that model year. For example, manufacturers 
producing new engines in the 2006 model year would need to comply with 
the 2006 standards. Refer to the individual program discussions below 
or the regulations for additional information about model year periods, 
including how to define what model year means in less common scenarios, 
such as installing used engines in new equipment.

[[Page 51117]]

2. What Standards Would Apply to Crankcase and Evaporative Emissions?
    Due to blow-by of combustion gases and the reciprocating action of 
the piston, exhaust emissions can accumulate in the crankcase of four-
stroke engines. Uncontrolled engine designs route these vapors directly 
to the atmosphere, where they contribute to ambient levels of these 
pollutants. We have long required that automotive engines prevent 
emissions from their crankcases. Manufacturers generally do this by 
routing crankcase vapors through a valve into the engine's air intake 
system. We are proposing to require that engines prevent crankcase 
emissions. We request comment on this proposed requirement for 
individual types of engines, as described in those sections below.
    For industrial spark-ignition engines, we are proposing standards 
to limit evaporative emissions. Evaporative emissions result from 
heating gasoline (or other volatile fuels) in a tank that is vented to 
the atmosphere. See Section IV for additional information.
3. What Duty Cycles Is EPA Proposing for Emission Testing?
    Testing an engine for exhaust emissions typically consists of 
exercising it over a prescribed duty cycle of speeds and loads, 
typically using an engine or chassis dynamometer. The duty cycle used 
to measure emissions for certification, which simulates operation in 
the field, is critical in evaluating the likely emissions performance 
of engines designed to emission standards.
    Steady-state testing consists of engine operation for an extended 
period at several speed-load combinations. Associated with these test 
points are weighting factors that allow calculation of a single 
weighted-average steady-state emission level in g/kW. Transient testing 
involves a continuous trace of specified engine or vehicle operation; 
emissions are collected over the whole testing period for a single mass 
measurement.
    See Section VIII.C for a discussion of how we define maximum test 
speed and intermediate speed for engine testing. Refer to the program 
discussions below for more information about the type of duty cycle 
required for testing the various engines and vehicles.
4. How Do Adjustable Engine Parameters Affect Emission Testing?
    Many engines are designed with components that can be adjusted for 
optimum performance under changing conditions, such as varying fuel 
quality, high altitude, or engine wear. Examples of adjustable 
parameters include spark timing, idle speed setting, and fuel injection 
timing. While we recognize the need for this practice, we are also 
concerned that engines maintain a consistent level of emission control 
for the whole range of adjustability. We are therefore proposing to 
require manufacturers to show that their engines meet emission 
standards over the full adjustment range.
    Manufacturers would also have to provide a physical stop to prevent 
adjustment outside the established range. Operators would then be 
prohibited by the anti-tampering provisions from adjusting engines 
outside this range. Refer to the proposed regulatory text for more 
information about adjustable engine parameters. See especially the 
proposed sections 40 CFR 1048.115 for industrial SI engines and 40 CFR 
1051.115 for recreational vehicles.
5. What Are Voluntary Low-Emission Engines and Blue Sky Standards?
    Several state and environmental groups and manufacturers of 
emission controls have supported our efforts to develop incentive 
programs to encourage the use of engine technologies that go beyond 
federal emission standards. Some companies have already significantly 
developed these technologies. In the final rule for land-based nonroad 
diesel engines, we included a program of voluntary standards for low-
emitting engines, referring to these as ``Blue Sky Series'' engines (63 
FR 56967, October 23, 1998). We included similar programs in several of 
our other nonroad rules, including commercial marine diesel. The 
general purposes of such programs are to provide incentives to 
manfuacturers to produce clean products as well as create market 
choices and opportunities for environmental information for consumers 
regarding such products. The voluntary aspects of these programs, which 
in part provides an incentive for manufacturers willing to certify 
their products to more stringent standards than necessary, is an 
important part of the overall application of ``Blue Sky Series'' 
programs.
    We are proposing voluntary Blue Sky Series standards for many of 
the engines subject to this proposal. Creating a program of voluntary 
standards for low-emitting engines, including testing and durability 
provisions to help ensure adequate in-use performance, will be a step 
forward in advancing emission-control technologies. While these are 
voluntary standards, they become binding once a manufacturer chooses to 
participate. EPA certification will therefore provide protection 
against false claims of environmentally beneficial products. For the 
program to be most effective, however, incentives should be in place to 
motivate the production and sale of these engines. We solicit ideas 
that could encourage the creation of these incentive programs by users 
and state and local governments. We also request comment on additional 
measures we could take to encourage development and introduction of 
these engines. Finally, we request comment on the Blue Sky Series 
approach in general as it would apply to the engines covered by this 
proposed rule.

C. Demonstrating Compliance

    We are proposing a compliance program to accompany emission 
standards. This consists first of a process for certifying engine 
models. In addition to certification testing, we are proposing several 
provisions to ensure that emission-control systems continue to function 
over long-term operation in the field. Most of these certification and 
durability provisions are consistent with previous rulemakings for 
other nonroad engines. Refer to the discussion of the specific programs 
below for additional information about these requirements for each 
engine category.
1. How Would I Certify My Engines?
    We are proposing a certification process similar to that already 
adopted for other engines. Manufacturers generally test representative 
prototype engines and submit the emission data along with other 
information to EPA in an application for a Certificate of Conformity. 
If we approve the application, then the manufacturer's Certificate of 
Conformity allows the manufacturer to produce and sell the engines 
described in the application in the U.S.
    We are proposing that manufacturers certify their engine models by 
grouping them into engine families. Under this approach, engines 
expected to have similar emission characteristics would be classified 
in the same engine family. The engine family definition is fundamental 
to the certification process and to a large degree determines the 
amount of testing required for certification. The proposed regulations 
include specific engine characteristics for grouping engine families 
for each category of engines. To address a manufacturer's unique 
product mix, we may approve using broader or narrower engine families.

[[Page 51118]]

    Engine manufacturers are generally responsible to build engines 
that meet the emission standards over each engine's useful life. The 
useful life we adopt by regulation is intended to reflect the period 
during which engines are designed to properly function without being 
remanufactured. Useful life values, which are expressed in terms of 
years or amount of operation (in hours or kilometers), vary by engine 
category, as described in the following sections. Consistent with other 
recent EPA programs, we would generally consider this useful life value 
in amount of operation to be a minimum value and would require 
manufacturers to comply for a longer period in those cases where they 
design their engines to operate longer than the minimum useful life. As 
proposed, manufacturers would be required to estimate the rate of 
deterioration for each engine family over its useful life. 
Manufacturers would show that each engine family meets the emission 
standards after incorporating the estimated deterioration in emission 
control.
    The emission-data engine is the engine from an engine family that 
will be used for certification testing. To ensure that all engines in 
the family meet the standards, we are proposing that manufacturers 
select the engine most likely to exceed emission standards in a family 
for certification testing. In selecting this ``worst-case'' engine, the 
manufacturer uses good engineering judgment. Manufacturers would 
consider, for example, all engine configurations and power ratings 
within the engine family and the range of installed options allowed). 
Requiring the worst-case engine to be tested ensures that all engines 
within the engine family are complying with emission standards.
    We are proposing to require manufacturers to include in their 
application for certification the results of all emission tests from 
their emission-data engines, including any diagnostic-type measurements 
(such as ppm testing) and invalidated tests. This complete set of test 
data ensures that the valid tests that form the basis of the 
manufacturer's application are a robust indicator of emission-control 
performance, rather than a spurious or incidental test result. We 
request comment on these data-reporting requirements.
    Clean Air Act section 206(h) specifies that test procedures for 
certifying engines (including the test fuel) should adequately 
represent in-use operation. We are proposing test fuel specifications 
intended to represent in-use fuels. Engines would have to meet the 
standards on fuels with properties anywhere in the range of proposed 
test fuel specifications. The test fuel is generally to be used for all 
testing associated with the regulations proposed in this document, 
including certification, production-line testing, and in-use testing. 
Refer to the program discussions below for a discussion of the test 
fuel proposed for different categories of engines.
    We are proposing to require engine manufacturers to give engine 
buyers instructions for properly maintaining their engines. We are 
including limitations on the frequency of scheduled maintenance that a 
manufacturer may specify for emission-related components to help ensure 
that emission-control systems don't depend on an unreasonable 
expectation of maintenance in the field. These maintenance limits would 
also apply during any service accumulation that a manufacturer may do 
to establish deterioration factors. This approach is common to all our 
engine programs. It is important to note, however, that these 
provisions would not limit the maintenance an operator could perform. 
It would merely limit the maintenance that operators would be expected 
to perform on a regularly scheduled basis. Refer to the discussion of 
the specific programs below for additional information about the 
allowable maintenance intervals for each category of engines.
    Once an engine family is certified, we would require every engine a 
manufacturer produces from the engine family to have an engine label 
with basic identifying information. We request comment on the proposed 
requirements for the design and content of engine labels, which are 
detailed in Sec. 1048.135 and Sec. 1051.135 of the proposed regulation 
text.
2. What Warranty Requirements Apply to Certified Engines?
    Consistent with our current emission-control programs, we are 
proposing that manufacturers provide a design and defect warranty 
covering emission-related components. As required by the Clean Air Act, 
the proposed regulations would require that the warranty period must be 
longer than the minimum period we specify if the manufacturer offers a 
longer mechanical warranty for the engine or any of its components; 
this includes extended warranties that are available for an extra 
price. See the proposed regulation language for a description of which 
components are emission-related.
    If an operator makes a valid warranty claim for an emission-related 
component during the warranty period, the engine manufacturer is 
generally obligated to replace the component at no charge to the 
operator. The engine manufacturer may deny warranty claims if the 
operator failed to do prescribed maintenance that contributed to the 
warranty claim.
    We are also proposing a defect reporting requirement that applies 
separate from the emission-related warranty (see Section VII.F). In 
general, defect reporting applies when a manufacturer discovers a 
pattern of component failures, whether that information comes from 
warranty claims, voluntary investigation of product quality, or other 
sources.
3. Can I Meet Standards With Emission Credits?
    Many of our emission-control programs have a voluntary emission-
credit program to facilitate implementation of emission controls. An 
emission-credit program is an important factor we take into 
consideration in setting emission standards that are appropriate under 
Clean Air Act section 213. An emission-credit program can reduce the 
cost and improve the technological feasibility of achieving standards, 
helping to ensure the attainment of the standards earlier than would 
otherwise be possible. Manufacturers gain flexibility in product 
planning and the opportunity for a more cost-effective introduction of 
product lines meeting a new standard. Emission-credit programs also 
create an incentive for the early introduction of new technology, which 
allows certain engine families to act as trailblazers for new 
technology. This can help provide valuable information to manufacturers 
on the technology before they apply the technology throughout their 
product line. This early introduction of clean technology improves the 
feasibility of achieving the standards and can provide valuable 
information for use in other regulatory programs that may benefit from 
similar technologies.
    Emission-credit programs may involve averaging, banking, or 
trading. Averaging would allow a manufacturer to certify one or more 
engine families at emission levels above the applicable emission 
standards, as long as the increased emissions are offset by one or more 
engine families certified below the applicable standards. The over-
complying engines generate credits that are used by the under-complying 
engines. Compliance is determined on a total mass emissions basis to 
account for differences in production volume, power and useful life 
among engine families. The average of all emissions

[[Page 51119]]

for a particular manufacturer's production must be at or below that 
level of the applicable emission standards. This calculation generally 
factors in sales-weighted average power, production volume, useful 
life, and load factor. Banking and trading would allow a manufacturer 
to generate emission credits and bank them for future use in its own 
averaging program in later years or sell them to another company.
    In general, a manufacturer choosing to participate in an emission-
credit program would certify each participating engine family to a 
Family Emission Limit. In its certification application, a manufacturer 
would determine a separate Family Emission Limit for each pollutant 
included in the emission-credit program. The Family Emission Limit 
selected by the manufacturer becomes the emission standard for that 
engine family. Emission credits are based on the difference between the 
emission standard that applies and the Family Emission Limit. We would 
expect the manufacturer to meet the Family Emission Limit for all 
emission testing. At the end of the model year, manufacturers would 
generally need to show that the net effect of all their engine families 
participating in the emission-credit program is a zero balance or a net 
positive balance of credits. A manufacturer could generally choose to 
include only a single pollutant from an engine family in the emission-
credit program or, alternatively, to establish a Family Emission Limit 
for each of the regulated pollutants.
    An alternative approach to requiring manufacturers to choose Family 
Emission Limits would be for us to create a discrete number of emission 
levels or ``bins'' above and below the proposed standard that 
manufacturers could certify to. These bin levels would then replace the 
Family Emission Levels in the credit calculations. We request comment 
on whether we should consider this approach for the engines covered by 
this proposal. The advantage of bins are that they can be defined by 
step changes in technology, which gives more assurance of emission 
reduction than Family Emission Limits which can change slightly with 
only marginal changes to the engine.
    Refer to the program discussions below for more information about 
emission-credit provisions for individual engine categories. We request 
comment on all aspects of the emission-credit programs discussed in 
this proposal. In particular, we request comment on the structure of 
the proposed emission-credit programs and how the various provisions 
may affect manufacturers' ability to utilize averaging, banking, or 
trading to achieve the desired emission-reductions in the most 
efficient and economical way.
4. What Are the Proposed Production-Line Testing Requirements?
    We are proposing production-line testing for recreational marine 
diesel engines, recreational vehicles, and Large SI engines. According 
to these requirements, manufacturers would routinely test production-
line engines to help ensure that newly assembled engines control 
emissions at least as well as the emission-data engines tested for 
certification. Production-line testing serves as a quality-control 
step, providing information to allow early detection of any problems 
with the design or assembly of freshly manufactured engines. This is 
different than selective enforcement auditing, in which we would give a 
test order for more rigorous testing for production-line engines in a 
particular engine family (see Section VII.E). Production-line testing 
requirements are already common to several categories of engines as 
part of their emission-control program.
    A manufacturer's liability under the production-line testing 
program is limited to the test engine and any future production. If an 
engine fails to meet an emission standard, the manufacturer must modify 
it to bring that specific engine into compliance. If too many engines 
exceed emission standards, the engine family is determined to be in 
noncompliance and the manufacturer will need to correct the problem for 
future production. This correction may involve changes to assembly 
procedures or engine design, but the manufacturer must, in any case, do 
sufficient testing to show that the engine family complies with 
emission standards.
    The proposed production-line testing programs would depend on the 
Cumulative Sum (CumSum) statistical process for determining the number 
of engines a manufacturer needs to test (see the proposed regulations 
for the specific calculation methodology). Each manufacturer selects 
engines randomly at the beginning of a new sampling period. If engines 
must be tested at a facility where final assembly is not yet completed, 
manufacturers must randomly select engine components and assemble the 
test engine according to their established assembly instructions. A 
sampling period may be a quarter or a calendar year, depending 
generally on the size of the engine family. The Cumulative Sum program 
uses the emission results to calculate the number of tests required for 
the remainder of the sampling period to reach a pass or fail 
determination. If tested engines have relatively high emissions, the 
statistical sampling method calls for an increased number of tests to 
show that the engine family meets emission standards. The remaining 
number of tests is recalculated after the manufacturer tests each 
engine. Engines selected should cover the broadest range of production 
configurations possible. Tests should also be distributed evenly 
throughout the sampling period to the extent possible.
    Under the Cumulative Sum approach, individual engines can exceed 
the emission standards without bringing the whole engine family into 
noncompliance. Note, however, that we propose to require manufacturers 
to adjust or repair every failing engine and retest it to show that it 
meets the emission standards. Note also that all production-line 
emission measurements must be included in the periodic reports to us. 
This includes any type of screening or surveillance tests (including 
ppm measurements), all data points for evaluating whether an engine 
controls emissions ``off-cycle,'' and any engine tests that exceed the 
minimum required level of testing.
    We are proposing to further reduce the testing requirements for 
engine families that consistently meet emission standards. For engine 
families with no production-line tests exceeding emission standards for 
two consecutive years, the manufacturer may request a reduced testing 
rate. The minimum testing rate is one test per engine family for one 
year. Our approval for a reduced testing rate would apply only for a 
single model year.
    As we have concluded in other engine programs, some manufacturers 
may have unique circumstances that call for different methods to show 
that production engines comply with emission standards. We therefore 
propose to allow a manufacturer to suggest an alternate plan for 
testing production-line engines, as long as the alternate program is as 
effective at ensuring that the engines will comply. A manufacturer's 
petition to use an alternate plan should address the need for the 
alternative and should justify any changes from the regular testing 
program. The petition must also describe in detail the equivalent 
thresholds and failure rates for the alternate plan. If we approved the 
plan, we would use these criteria to determine when an engine family 
would become noncompliant. It is important to note that this allowance 
is intended only as a flexibility, and is not intended

[[Page 51120]]

to affect the stringency of the standards or the production-line 
testing program.
    Refer to the specific program discussions below for additional 
information about production-line testing for different types of 
engines.

D. Other Concepts

1. What Are the Proposed Emission-Related Installation Instructions?
    For manufacturers selling loose engines to equipment manufacturers, 
we are proposing to require the engine manufacturer to develop a set of 
emission-related installation instructions. This would include anything 
that the installer would need to know to ensure that the engine 
operates within its certified design configuration. For example, the 
installation instructions could specify a total capacity needed from 
the engine cooling system, placement of catalysts after final assembly, 
or specification of parts needed to control evaporative emissions. We 
would approve the installation instructions as part of the 
certification process. If equipment manufacturers fail to follow the 
established emission-related installation instructions, we would 
consider this tampering, which could subject them to significant civil 
penalties. Refer to the program discussions below for more information 
about specific provisions related to installation instructions.
2. What Is Consumer-Choice Labeling?
    California ARB has recently proposed consumer/environmental label 
requirements for outboard and personal-watercraft engines. Under this 
concept, manufacturers would label their engines or vehicles based on 
their certified emission level. California has proposed three different 
labels to differentiate varying degrees of emission control--one for 
meeting the EPA 2006 standard, one for being 20 percent lower, and one 
for being 65 percent below. More detail on this concept is provided in 
the docket.\123\
---------------------------------------------------------------------------

    \123\ ``Public Hearing to Consider Amendments to the Spark-
Ignition Marine Engine Regulations,'' Mail Out #MSC 99-15, June 22, 
1999 (Docket A-2000-01, Document II-A-27).
---------------------------------------------------------------------------

    We are considering a similar approach to labeling the engines 
subject to this proposal. This would apply especially to consumer 
products. Consumer-choice labeling would give people the opportunity to 
consider varying emission levels as a factor in choosing specific 
models. This may also give the manufacturer an incentive to produce 
more of their cleaner engine models. A difficulty in designing a 
labeling program is in creating a scheme that communicates information 
clearly and simply to consumers. Given the very different emission 
levels expected from the various engines, it would be difficult to 
create a consistent set of labels for different engines. Also, we are 
concerned that other organizations could use the labeling provisions to 
mandate certain levels of emission control, rather than relying on 
consumer choice as a market-based incentive. We request comment on this 
approach for recreational marine engines and vessels and for 
recreational vehicles.
    An alternative to the promotional-type label adopted by California 
ARB would be an approach that simply identifies an engine's certified 
emission levels on the emission-control label. This ``informational 
label'' could be used with or without defining voluntary emission 
standards. This would not provide a standardized way for manufacturers 
to promote their cleanest products, but it would give interested 
consumers the ability to make informed choices based on a vehicle's 
certified emission levels. We are proposing this approach of requiring 
an engine's certified emission levels to be on the emission-control 
label for engines and vehicles certified to voluntary low emission or 
Blue Sky standards. We request comment on this approach and whether we 
should extend this requirement to all vehicles and engines, not just 
those complying with voluntary low emission standards. Also, we request 
comment on the relative advantages of the different approaches to 
consumer-choice labeling just discussed.
3. Are There Special Provisions for Small Manufacturers of These 
Engines and Vehicles?
    The Regulatory Flexibility Act, 5 U.S.C. 601-612, was amended by 
the Small Business Regulatory Enforcement Act of 1996 (SBREFA), Public 
Law 104-121, to ensure that concerns regarding small entities are 
adequately considered during the development of new regulations that 
affect them. The scope of this proposal includes many engine and 
vehicle manufacturers that have not been subject to our regulations or 
certification process. Many of these manufacturers are small businesses 
for which a typical regulatory program may be very burdensome. The 
sections describing the proposed emission-control program include 
discussion of proposed special compliance provisions designed to 
address this for the different engine categories. Section XI.B gives an 
overview of the inter-agency process in which we developed these small-
volume provisions.

IV. Large SI Engines

A. Overview

    This section applies to most nonroad spark-ignition engines rated 
over 19 kW (``Large SI engines''). The companies producing Large SI 
engines are typically subsidiaries of automotive companies. In most 
cases, these companies modify car and truck engines for industrial 
applications. However, the Large SI industry has historically taken a 
much less centralized approach to designing and producing engines. 
Engine manufacturers often sell dressed engine blocks without manifolds 
or fuel systems. Fuel system suppliers have played a big role in 
designing and calibrating nonroad engines, sometimes participating 
directly in engine assembly. Several equipment manufacturers, mostly 
forklift producers, also play the role of an engine manufacturer by 
calibrating engine models and completing engine assembly.
    The proposed emission standards would achieve emission reductions 
of about 90 percent for CO, 85 percent for NOX, and 70 
percent for HC. Since the emission standards are based on engine 
testing with broadly representative duty cycles, these estimated 
reductions apply to all types of equipment using these engines. 
Reducing Large SI engine emissions will be especially valuable to 
individuals operating these engines in enclosed areas.
    The cost of applying the anticipated emission-control technology to 
these engines is offset by much greater cost savings from reduced fuel 
consumption over the engines' operating lifetime. The large estimated 
fuel and maintenance savings relative to the estimated incremental cost 
of producing low-emitting engines raise the question of why normal 
market forces have failed to induce manufacturers to design and sell 
engines with emission-control technologies on the basis of the expected 
performance improvements. As described in Chapter 5 of the Draft 
Regulatory Support Document, we believe this is largely accounted for 
by the difficulty of equipment purchasers to justify increased capital 
spending on industrial machines, even with the potential for net 
savings over the lifetime of the equipment. This in turn prevents 
manufacturers from developing or implementing technologies in light of 
the uncertain demand. We request comment on the market dynamics that 
would prevent the development of and demand for cost-saving 
technologies.
    This section describes the proposed requirements that would apply 
to engine manufacturers. See Section III for

[[Page 51121]]

a description of our general approach to regulating nonroad engines and 
how manufacturers show that they meet emission standards. See Section 
VII for additional proposed requirements for engine manufacturers, 
equipment manufacturers, and others.

B. Large SI Engines Covered by This Proposal

    Large SI engines covered in this section power nonroad equipment 
such as forklifts, sweepers, pumps, and generators. This would include 
marine auxiliary engines, but does not include marine propulsion 
engines or engines used in recreational vehicles (snowmobiles, off-
highway motorcycles, and all-terrain vehicles). These other nonroad 
applications are addressed elsewhere in this document.
    Even though some aircraft use engines similar to the Large SI 
engines described in this proposal, we are not proposing emission 
standards for aircraft. Aircraft are covered under a separate part of 
the Clean Air Act. EPA's current aircraft regulations define aircraft 
as needing airworthiness certification from the Federal Aviation 
Administration. However, neither ultra-light airplanes nor blimps are 
governed by emission standards under our aircraft regulations. Ultra-
light airplanes are exempt from the airworthiness-certification 
requirements in 14 CFR part 91. In contrast, blimps are subject to 
airworthiness certification, but EPA's emission standards for aircraft 
do not apply to them. Blimps are very likely to be able to use 
conventional land-based engines for propulsion and navigation. Our 
proposed definition of aircraft in these regulations would exclude all 
aircraft from emission standards, including aircraft that do not 
receive an airworthiness certificate from FAA. We may address this 
issue in a separate Federal Register notice.
    This proposal applies only to spark-ignition engines. Our most 
recent rulemaking for nonroad diesel engines finalized a definition of 
``compression-ignition'' that was intended to address the status of 
alternative-fuel engines (63 FR 56968, October 23, 1998). We are 
proposing to adopt updated definitions consistent with those already 
established in previous rulemakings to clarify that all reciprocating 
internal combustion engines are either spark-ignition or compression-
ignition. We request comment on whether we should revise the 
definitions that differentiate between these types of engines.
    Several types of engines are excluded or exempted from the proposed 
requirements. The following sections describe the types of special 
provisions that apply uniquely to nonrecreational spark-ignition 
engines rated over 19 kW. Section VII.C covers several additional 
exemptions that apply generally across programs.
1. Stationary Engine Exclusion
    Consistent with the Clean Air Act, we do not treat stationary 
engines as nonroad engines, so the proposed emission standards would 
not apply to engines used in stationary applications. In general, an 
engine is considered stationary if it will be either installed in a 
fixed position or if it will be a portable (or transportable) engine 
operating in a single location for at least one year. We are proposing 
a requirement that these stationary engines have an engine label 
identifying their excluded status. This would be especially valuable 
for importing excluded engines without complication from U.S. Customs 
officials. It would also help us ensure that such engines are 
legitimately excluded from the emission standards proposed in this 
document.
2. Exclusion for Engines Used Solely for Competition
    The Clean Air Act also does not consider engines used solely for 
competition to be nonroad engines. We would normally include this 
exclusion directly in the regulations. For Large SI engines, however, 
it seems unlikely that there would be any need for an explicit 
treatment of competition engines in the regulations. Any applications 
involving competition with spark-ignition engines would likely fall 
under the proposed program for recreational vehicles, which has an 
extensive treatment of competition engines. We request comment on the 
need for more detailed consideration of Large SI engines that may be 
used solely for competition.
3. Motor Vehicle Engine Exemption
    In some cases an engine manufacturer may want to modify a certified 
automotive engine for nonroad use to sell the engine without 
recertifying it as a Large SI engine. We propose to allow for this, as 
long as the manufacturer makes no changes to the engine that could 
affect its exhaust or evaporative emissions. We propose to require 
annual reporting for companies that use this exemption, including a 
list of engine models from each company. Manufacturers must generally 
meet all the requirements from 40 CFR part 86 that would apply if the 
engine were used in a motor vehicle. Section 1048.605 of the proposed 
regulations describes the qualifying criteria and responsibilities in 
greater detail.
    In addition, a vehicle manufacturer may want to produce vehicles 
certified to highway emission standards for nonroad use. We propose to 
allow this, as long as there is no change in the vehicle's exhaust or 
evaporative emission-control systems.
4. Lawn and Garden Engine Exemption
    Most Large SI engines have a total displacement greater than one 
liter. The design and application of the few Large SI engines currently 
being produced with displacement less than one liter are very similar 
to those of engines rated below 19 kW, which are typically used for 
lawn and garden applications. As described in the most recent 
rulemaking for these smaller engines, we propose that manufacturers may 
certify engines between 19 and 30 kW with total displacement of one 
liter or less to the requirements we have already adopted in 40 CFR 
part 90 for engines below 19 kW (see 65 FR 24268, April 25, 2000). 
These engines would then be exempt from the requirements proposed in 
this document. This approach would allow manufacturers of small air-
cooled engines to certify their engines rated between 19 and 30 kW with 
the program adopted for the comparable engines with slightly lower 
power ratings. This would also be consistent with the provisions 
adopted by California ARB.
    We are proposing the 30-kW cap to address our concern that treating 
all engines under one liter as Small SI engines may be inadequate. For 
example, lawn and garden engines generally don't use turbochargers or 
other technologies to achieve very high power levels. However, it may 
be possible for someone to design an engine under one liter with 
unusually high power, which would more appropriately be grouped with 
other Large SI engines with similar power capability rather than with 
Small SI engines. Motorcycles, for example, may produce 120 kW from a 
750 cc (0.75 liter) engine. The 30-kW maximum power rating to qualify 
for treatment as Small SI engines represents a reasonable maximum power 
output that is possible from SI engines under one liter with 
technologies typical of lawn and garden engines. We request comment on 
the suggested power threshold and on any other approaches to addressing 
the issue of which standards should apply to engines in this 
intermediate size and power range.
    We are proposing a temporary expansion of the lawn and garden 
exemption for small-volume manufacturers, as described in Section IV.E.

[[Page 51122]]

    Technological, economic and environmental issues associated with 
the few engine models with rated power over 19 kW, but with 
displacement at or below 1 liter were previously analyzed in the 
rulemaking for Small Nonroad SI engines. This proposal therefore does 
not specifically address the provisions applying to them or repeat the 
estimated impacts of adopting emission standards.
    Conversely, we are aware that some engines rated below 19 kW may be 
part of a larger family of engine models that includes engines rated 
above 19 kW. This may include, for example, three- and four-cylinder 
engine models that are otherwise identical. To avoid the need to 
separate these engines into separate engine families (certified under 
completely different control programs), we propose to allow any engine 
rated under 19 kW to certify to the more stringent Large SI emission 
standards. Such an engine would then be exempt from the requirements of 
40 CFR part 90. Since manufacturers exercising this option would be 
voluntarily meeting a more stringent emission standard, this does not 
affect our earlier conclusions about the appropriate standards for 
engines rated under 19 kW.
    We may also consider applying the Large SI emission standards to 
these smaller engines on a mandatory basis when engines above and below 
19 kW share fundamental design features. We request comment on the need 
for, and appropriateness of, such an approach.
5. Special Provisions for Non-Integrated Engine Manufacturers
    We are aware that several Large SI engine manufacturers rely on 
other companies to supply engine blocks or partially assembled engines 
that are then modified for the final application. A similar situation 
occurs for some marine diesel engine manufacturers. To address this for 
the marine engines, we defined these companies as post-manufacture 
marinizers and created a variety of provisions to address their 
particular concerns (64 FR 73300; December 29, 1999).
    The most important concern for these companies is the possibility 
that the company supplying the base engines may discontinue production 
with minimal notice. Once emission standards are in place, this would 
leave the manufacturer with a need to quickly design and certify a 
different engine to meet emission standards. One company has reported 
that two or three months are required to apply closed-loop catalyst 
systems to a new engine. With some additional time to complete the 
certification, a manufacturer in this situation would face a possible 
shutdown in engine assembly until the new engine is ready for 
production. For marine engines, we allow post-manufacture marinizers in 
this situation to request permission to produce uncertified engines for 
up to one year. The post-manufacture marinizer must show that it is not 
at fault and that it would face serious economic hardship without the 
exemption. We request comment on the need for such a provision for 
Large SI engines and on how to limit such a provision to companies that 
rely on partially assembled engines from unrelated companies. If we 
adopt provisions to address this concern, they would likely be similar 
to those adopted for marine diesel engines (see 40 CFR 94.209(b)). We 
also request comment on the potential for the proposed hardship 
provisions to address this concern (see Section VII.C and the proposed 
regulatory language in 40 CFR part 1068, subpart C).

C. Proposed Standards

    In October 1998, California ARB adopted emission standards for 
Large SI engines. We are proposing to extend requirements for these 
engines to the rest of the U.S. in the near term. We are also proposing 
to revise the emission standards and add various provisions in the long 
term, as described below. The near-term and the long-term emission 
standards are based on the use of three-way catalytic converters with 
electronic fueling systems to control emissions, and would differ 
primarily in terms of how well the controls are optimized. In addition 
to the anticipated emission reductions, we project that these 
technologies would provide large savings to operators as a result of 
reduced fuel consumption and other performance improvements.
    An important element of the proposed control program is the 
attempted harmonization with the requirements adopted by California 
ARB. We are aware that inconsistent or conflicting requirements could 
lead to additional costs. Cooperation between agencies has allowed a 
great degree of harmonization, as reflected in this proposed rule. In 
addition to the common structure of the programs, the specific 
provisions that make up the certification requirements and compliance 
programs are consistent with very few exceptions. In most of the cases 
where individual provisions differ, the EPA language is more general 
than that adopted by California, rather than being incompatible. The 
following sections describe the proposed requirements in greater 
detail.
1. What Are the Proposed Standards and Compliance Dates?
    We propose to adopt standards starting in the 2004 model year 
consistent with those adopted by California ARB. These standards, which 
apply to testing only with the applicable steady-state duty cycles, are 
4 g/kW-hr (3 g/hp-hr) for HC+NOX emissions and 50 g/kW-hr 
(37 g/hp-hr) for CO emissions. See Section IV.D for further discussion 
of the steady-state duty cycles. We expect manufacturers to meet these 
standards using three-way catalytic converters and electronically 
controlled fuel systems. These systems would be similar to those used 
for many years in highway applications, but not necessarily with the 
same degree of sophistication.
    Proposing emission standards for these engines starting in 2004 
allows less than the usual lead time for meeting EPA requirements. We 
believe, however, that manufacturers will be able to achieve this by 
expanding their production of the same engines they will be selling in 
California at that time. We have designed our 2004 standards to require 
no additional development, design, or testing beyond what California 
ARB already requires. We request comment on manufacturers' ability to 
produce EPA-compliant engines nationwide in 2004. Any comments should 
address whether there are issues related to production capacity as 
opposed to additional design or testing needs. As proposed, the 
emission standards would allow us to set near-term requirements to 
introduce the low-emission technologies for substantial emission 
reductions with minimal lead time. We request comment on adopting these 
standards for 2004 model year engines.
    Testing has shown that additional time to optimize designs to 
better control emissions will allow manufacturers to meet significantly 
more stringent emission standards that are based on more robust 
measurement procedures. Starting with the 2007 model year, we propose 
to apply emission standards of 3.4 g/kW-hr (2.5 g/hp-hr) for 
HC+NOX emissions and 3.4 g/kW-hr (2.5 g/hp-hr) for CO 
emissions. These standards would apply to emission measurements during 
duty-cycle testing under both steady-state and transient 
operation.\124\ As described in Chapter 4 of the Draft Regulatory 
Support Document, we believe manufacturers can achieve these proposed 
emission standards by optimizing currently available three-

[[Page 51123]]

way catalysts and electronically controlled fuel systems. As described 
in Section IV.D.5, we propose to apply field-testing standards of 4.7 
g/kW-hr (3.5 g/hp-hr) for HC+NOX emissions and 5.0 g/kW-hr 
(3.8 g/hp-hr) for CO emissions for 2007 and later model year engines.
---------------------------------------------------------------------------

    \124\ See Section IV.D for a discussion of duty cycles.
---------------------------------------------------------------------------

    The proposed 2007 standards described above reflect the importance 
of adopting standards that protect human health when regulating engines 
that often operate in enclosed areas, but also include numerous 
applications that operate predominantly outdoors. Emission-control 
technologies for Large SI engines generally pose a tradeoff between 
controlling NOX and CO emissions. Chapter 4 of the 
Regulatory Support Document presents multiple scenarios of emission 
standards with a comparison of calculated ambient NO, NO2, 
and CO levels. We request comment on a combination of emission 
standards that would shift to increase or decrease the emphasis on 
controlling CO emissions. To increase the relative control of CO 
emissions, we would consider emission standards of 4.0 g/kW-hr (3.0 g/
hp-hr) HC+NOX and 2.5 g/kW-hr (1.9 g/hp-hr). To focus more 
on reducing HC+NOX emissions, we would consider emission 
standards of 2.6 g/kW-hr (2.0 g/hp-hr) HC+NOX and 4.4 g/kW-
hr (3.3 g/hp-hr) CO. We have narrowed this range of alternative 
standards to a relatively narrow range to account for the concern for 
individuals who may be exposed to exhaust emissions in enclosed spaces 
or other areas with limited airflow. We request comment on the 
appropriate emission standards for Large SI engines and our analysis of 
CO vs. HC+NOX tradeoffs found in the RIA. We also request 
comment on the potential for manufacturers to take further steps to 
adopt automotive-type technologies that would reduce emissions beyond 
than the levels proposed in this document, either starting in 2007 or 
in a subsequent phase of standards.
    Gasoline-fueled engines, which must generally operate with rich 
air-fuel ratios at heavy loads to avoid premature engine wear from 
overheating components, are further constrained in their ability to 
simultaneously control CO and HC+NOX emissions. Furthermore, 
these engines are more likely to be used outdoors, where there is less 
concern for elevated exposure levels. We are therefore proposing to 
adopt alternate 2007 standards of 1.3 g/kW-hr (1.0 g/hp-hr) for 
HC+NOX emissions and 27 g/kW-hr (20 g/hp-hr) for CO 
emissions. These alternate standards are based on preliminary emission 
measurements with optimized gasoline-fueled engines showing the 
tradeoff of increasing CO emissions at very low NC+NOX 
levels. We are not proposing any restriction on manufacturers' use of 
the alternate standards (for example, for specific fuels or 
applications). Rather, we expect the marketplace to ensure that low-CO 
engines are selected for applications involving significant operation 
in enclosed or partially enclosed areas. We believe this approach will 
maximize HC+NO emission reductions from engines where that is the most 
important emission contribution.
    Except for these alternate standards, the proposed emission 
standards would apply uniformly to all Large SI engines. As described 
in the Draft Regulatory Support Document, based on our current 
information, we do not believe variations among engines significantly 
affect their potential to reduce emissions or their cost of meeting 
emission standards. We request comment on whether it is appropriate to 
differentiate between subclasses of engines to more closely tailor 
emission standards to the capabilities of individual engines or based 
on other relevant criteria, including cost. Also, Large SI engines 
power a wide range of equipment. We request comment on the ability of 
Large SI engines in various applications to incorporate emission-
control technologies and maintain control of emissions over the full 
useful life. We currently have no information indicating that 
application-specific emission standards are appropriate for this class 
of engines, but we request comment on whether there are relevant 
distinctions with respect to different applications. We further request 
comment on whether application-specific standards may be relevant for 
Large SI engines and, if so, what those standards should be. Commenters 
should suggest an appropriate way of addressing any such distinctions 
in the regulations. Finally, we have developed this proposal based on 
the view that it is appropriate to set standards without regard to fuel 
type to prevent incentives for manufacturers to design engines to be 
fueled by fuels subject to less stringent standards. We have proposed 
standards based on this approach, but request comment on whether there 
are advantages to setting separate emission standards for engines 
powered by different fuels, and in particular, on the appropriate 
levels for such standards. A further discussion of the feasibility, 
estimated cost, and emission reductions are in the Draft Regulatory 
Support Document.
    We believe that three years between phases of emission standards 
allows manufacturers enough lead time to meet the more stringent 
emission standards. The projected emission-control technologies for the 
proposed 2004 emission standards should be capable of meeting the 
proposed 2007 emission levels with additional optimization and testing. 
In fact, manufacturers may be able to apply their optimization efforts 
before 2004, leaving only the additional testing demonstration for 
complying with the proposed 2007 standards. The biggest part of the 
optimization effort may be related to gaining assurance that engines 
will meet field-testing emission standards described in Section IV.D.5, 
since engines will not be following a prescribed duty cycle. EPA 
requests comment on the timing of the second phase of emission 
standards. Commenters should address the need to design and certify 
engines, distinguishing between time needed for developing new 
technology, recalibration of existing technology, development of test 
facilities, and the time needed to conduct testing. We also request 
comment on the air quality implications of adjusting the date of the 
long-term standards.
    For gasoline and LPG engines, we are proposing the emission 
standard based on total hydrocarbon measurements, while California ARB 
standards are based on nonmethane hydrocarbons. We believe that 
switching to measurement based on total hydrocarbons should simplify 
testing, especially for field testing of in-use engines with portable 
devices (See Section IV.D.5). To maintain consistency with California 
ARB standards in the near term, we propose to allow manufacturers to 
base their certification through 2006 on either nonmethane or total 
hydrocarbons (see 40 CFR 1048.145 of the proposed regulations). Methane 
emissions from controlled engines operating on gasoline or LPG are 
about 0.1 g/kW&-hr. We request comment on this approach.
    Most of the emission data on which we base the proposed emission 
standards were generated from engines using liquefied petroleum gas 
(LPG). Operation of natural gas engines is very similar to that of LPG 
engines, with one noteworthy exception. Since natural gas consists 
primarily of methane, these engines have a much higher level of methane 
in the exhaust. Methane generally does not contribute to ozone 
formation, so it is often excluded from emission measurements. We 
therefore propose to use nonmethane hydrocarbon emissions for 
comparison with the standard for natural gas engines. While the 
proposed emission standards based on measuring emissions

[[Page 51124]]

in the field depend on total hydrocarbons, this is inconsistent with 
the nonmethane hydrocarbon measurements for certifying natural gas 
engines. We therefore propose to set a NOX-only field-
testing standard for natural gas engines instead of a NOX+HC 
standard. Since control of NOX emissions poses a 
significantly greater challenge for natural gas engines, certification 
testing should provide adequate assurance that these engines have 
sufficiently low nonmethane hydrocarbon emissions. We request comment 
on this proposed arrangement of emission standards and testing 
requirements to account for methane.
2. Could I Average, Bank, or Trade Emission Credits?
    As described in Section III, we often give manufacturers the option 
of showing they meet emission standards using an emission-credit 
program that allows them to introduce a mix of technologies with 
average emission levels below the standards. The emission standards for 
Large SI engines proposed above are based on full compliance by all 
engine families without averaging, banking and trading at 
certification. (Note the separate discussion of averaging, banking, and 
trading that applies to testing in-use engines in Section IV.D.4.) In 
determining whether we should adopt an averaging, banking, and trading 
program in connection with promulgating a standard, we need to consider 
whether the adoption of such a program would affect the determination 
of what emission standards would ``achieve the greatest degree of 
emission reduction achievable through [available technology] . . . 
giving appropriate consideration to the cost of applying such 
technology within the period of time available to manufacturers and to 
noise, energy, and safety factors associated with the application of 
such technology''. The standards we are proposing for Large SI engines 
reflect our assessment of these statutory factors in the absence of an 
ABT program for these engines. If, after notice and comment, we decide 
that an ABT program is appropriate, we will need to reassess the 
appropriate level of these standards considering the statutory factors. 
The emission data described in the Draft Regulatory Support Document 
show that while all engines in this category are likely to be able to 
meet the proposed standard, some engines in this category are likely to 
be capable of operating at a level below the level of the proposed 
emission standards. Incorporating an emission-credit program without 
adjusting the emission standards would allow manufacturers to produce 
some engines that have emissions that are higher than the levels we 
believe are capable of being met by all engines in the category. Given 
the emission data supporting the proposed emission standards, we 
believe that we would therefore need to set more stringent emission 
standards with averaging, banking, and trading provisions to achieve 
the ``greatest degree of emission reduction'' from these engines.
    We request comment on including provisions to average, bank, and 
trade emission credits. We believe the appropriate standards with an 
emission-credit program would be 2.7 g/kW-hr (2.0 g/hp-hr) for 
HC+NOX emissions and 2.7 g/kW-hr (2.0 g/hp-hr) for CO 
emissions. See the Draft Regulatory Support Document for further 
discussion of this issue. Making the comparable adjustments to the 
field-testing measurements described in Section IV.D.5 leads to field-
testing standards under an emission-credit program of 3.8 g/kW-hr (2.8 
g/hp-hr) for HC+NOX emissions and 4.0 g/kW-hr (3.0 g/hp-hr) 
for CO emissions.
    In addition, considering the frequent use of Large SI engines in 
enclosed areas, we may need to cap Family Emission Levels sufficiently 
to address concerns for exposure to elevated concentrations of CO, NO, 
and NO2 emissions. The Draft Regulatory Support Document shows that 
emission levels of 3.4 g/kW-hr for HC+ NOX and for CO appear 
to be appropriate limits related to a scenario of exposure in enclosed 
or other limited-air flow areas. We also believe that there is no type 
of engine or application in the Large SI field that cannot accommodate 
the basic technologies associated with these emission levels, so this 
emission level would serve as an appropriate cap on Family Emission 
Levels in an emission-credit program for both HC+NOX and CO 
emissions. We request comment on these issues.
    For additional, general provisions of an emission-credit program, 
see the proposed regulation language in part 1051, subpart H for 
recreational vehicles. We request comment on all aspects of averaging, 
banking, and trading for Large SI engines. Commenters should address 
appropriate emission levels for the potential mix of technologies under 
consideration. This should include a discussion of any technology or 
market constraints (or incentives) that would lead manufacturers to 
differentiate their engines with varying degrees of emission control. 
In addition, we request comment on the possibility that small-volume 
manufacturers with a limited product offering will be disadvantaged by 
an emission-credit program that may give larger companies a competitive 
advantage in selected markets.
    As an alternative to a program of calculating emission credits for 
averaging, banking, and trading, we are proposing a simpler approach to 
help manufacturers transition to the proposed 2007 emission standards 
(see 40 CFR 1048.145 of the proposed regulations). Under this ``family 
banking'' concept, we would allow manufacturers to certify an engine 
family early. For each year of certifying an engine family early, the 
manufacturer would be able to delay certification of a smaller engine 
family by one year. This would be based on the actual sales of the 
early family and the projected sales volumes of the late family; this 
would require no calculation or accounting of emission credits. The 
manufacturer would verify that actual sales are consistent with 
projected sales at the end of the model year.
3. Is EPA Proposing Blue Sky Standards for These Engines?
    We are proposing a staggered Blue Sky approach aligned with the 
introduction of new emission standards. In the 2003 model year, 
manufacturers could certify their engines to the requirements that 
apply starting in 2004 to qualify for the Blue Sky designation. Since 
manufacturers are producing engines with emission-control technologies 
starting in 2001, these engines would be available to customers outside 
of California desiring emission reductions or fuel-economy 
improvements. We request comment on whether we should make this 
available to 2002 model year engines. Similarly, for 2003 through 2006 
model years, manufacturers could certify their engines to the 
requirements that start to apply in 2007. Finally, we propose to set a 
target of 1.3 g/kW-hr (1.0 g/hp-hr) HC+NOX and 3.4 g/kW-hr 
(2.5 g/hp-hr) CO as a qualifying level for Blue Sky Series engines for 
all model years. The corresponding field-testing standards for Blue Sky 
Series engines would be 1.8 g/kW-hr (1.4 g/hp-hr) HC+NOX and 
5.0 g/kW-hr (3.8 g/hp-hr) CO. We request comment on the level of the 
voluntary standards starting in 2007. We also request comment on the 
advantages of additional labeling provisions that would advertise or 
promote these low-emission products.
4. What Durability Provisions Apply?
    a. Useful life. We propose to set a minimum useful life period of 
seven

[[Page 51125]]

years or until the engine accumulates at least 5,000 operating hours, 
whichever occurs first. This figure, which California ARB also adopted, 
represents an operating period that is common for Large SI engines 
before they undergo rebuild. This also reflects a comparable degree of 
operation relative to the useful life values of 100,000 to 150,000 
miles that apply to automotive engines (assuming an average driving 
speed of 20 to 30 miles per hour).
    Some engines are designed for operation in severe-duty applications 
with a shorter expected lifetime. Concrete saws in particular undergo 
accelerated wear as a result of operating in an environment with high 
concentrations of highly abrasive, airborne concrete dust particles. In 
a previous rulemaking, we adopted a provision for a manufacturer to ask 
us to approve a useful life shorter than the minimum period that would 
otherwise apply. This shortened useful life would be based on 
information from manufacturers showing how long their engines typically 
operated. Extending that provision to Large SI engines would depend on 
a manufacturer including only engines from severe-duty applications in 
a given engine family. The likely practical benefits of segregating 
severe-duty engines would be to shorten the period for establishing 
deterioration factors and to avoid in-use testing on engines that are 
no longer meeting emission standards. We request comment on the 
appropriate approach to useful life values for severe-duty and other 
Large SI engines. We also request comment on any other limitations on 
manufacturers' ability to meet the proposed requirements that may be 
particular to severe-duty engines.
    b. Warranty. We are proposing that manufacturers provide an 
emission-related warranty for at least the first half of an engine's 
useful life (in operating hours) or 3 years, whichever comes first. 
These periods must be longer if the manufacturer offers a longer 
mechanical warranty for the engine or any of its components; this 
includes extended warranties that are available for an extra price. In 
addition, we are proposing the warranty provisions adopted by 
California ARB for high-cost parts. For emission-related components 
whose replacement cost is more than about $400, we are proposing a 
minimum warranty period of at least 70 percent of the engine's useful 
life (in operating hours) or 5 years, whichever comes first. See 
Sec. 1048.120 for a description of which components are emission-
related. We request comment on these proposed warranty provisions.
    c. Maintenance instructions. We are proposing to apply minimum 
maintenance intervals much like those established by California ARB for 
Large SI engines. The minimum intervals define how much maintenance a 
manufacturer may specify to ensure that engines are properly maintained 
for staying within emission standards. We propose to allow 
manufacturers to schedule maintenance on the following components after 
4,500 hours of use: catalysts, fuel injectors, electronic controls and 
sensors, and turbochargers.
    There are two areas of maintenance for which we are especially 
concerned. The first is related to the durability of oxygen sensors. We 
recognize that if an oxygen sensor degrades or fails, emissions can 
increase significantly. It is important to create a strong incentive to 
use the most durable oxygen sensors available. That is why we are 
proposing to apply the 4,500-hour minimum interval to scheduled 
maintenance of oxygen sensors. We are also proposing diagnostic 
requirement to ensure that prematurely failing oxygen sensors are 
detected and replaced on an as-needed basis. If operators would fail to 
replace oxygen sensors after a fault signal, we would not consider that 
engine to be properly maintained. This would invalidate the emission-
related warranty and make the engine ineligible for manufacturer in-use 
testing. We request comment on this approach.
    Our second area of concern is related to the potential need to 
clean LPG fuel mixers. We are aware that for some existing designs, 
fuel mixers can become fouled to the point that they are unable to 
achieve proper control of air-fuel ratios. When this occurs, it can 
usually be remedied by simply removing the mixer and cleaning it. 
Chapter 4 of the Draft Regulatory Support Document describes this in 
further detail, including emission test data showing that fuel systems 
can be quite tolerant of deposits from fuel impurities. We request 
comment on (1) additional test data showing an effect of mixer fouling 
on emissions, (2) whether we should add mixer cleaning as a possible 
scheduled-maintenance item, and (3) how manufacturers could ensure that 
operators of in-use engines would do this cleaning.
    d. Deterioration factors. We are proposing an approach that gives 
manufacturers wide discretion to establish deterioration factors for 
Large SI engines. The general expectation is that manufacturers will 
rely on emission measurements from engines have operated for an 
extended period, either in field service or in the laboratory. The 
manufacturer should do testing as needed to be confident that their 
engines will meet emission standards under the in-use testing program. 
We expect to review deterioration factors to ensure that the projected 
deterioration is consistent with any engine testing under in-use 
testing program. In the first two or three years of certification, we 
would rely on manufacturers' technical judgment (instead of results 
from in-use testing) to appropriately estimate deterioration factors to 
protect themselves from the risk of noncompliance.
    e. In-use fuel quality. Gasoline used in industrial applications is 
generally the same as that used for automotive applications. 
Improvements that have been made to highway-grade gasoline therefore 
carry over directly to nonroad markets. This helps manufacturers be 
sure that fuel quality will not degrade an engine's emission-control 
performance after several years of sustained operation.
    In contrast, there are no enforceable industry or government 
standards for fuel quality for LPG. As a result, LPG composition can 
vary widely. Limited testing data show that this varying fuel quality 
has a relatively small direct effect on emissions from a closed-loop 
engine with a catalyst. The greater concern is that fuel impurities and 
heavy-end hydrocarbons may cause an accumulation of deposits that can 
prevent an emission-control system from functioning properly. While an 
engine's feedback controls can compensate for some restriction in air- 
and fuel-flow, deposits may eventually prevent the engine from 
accurately controlling air-fuel ratios at stoichiometry. In any case, a 
routine cleaning step should remove deposits and restore the engine to 
proper functioning. We are aware of no systematic study of the effect 
of these deposits on in-use emissions, either from highway or from 
nonroad engines.
    We request comment on the following things with respect to the 
quality of in-use LPG:

--The degree to which fuel quality affects emission durability, with 
supporting data.
--The ability of the proposed diagnostic requirements to alert the 
operator to the need for maintenance when the engine is no longer able 
to control air-fuel ratios at stoichiometry.
--The need for manufacturers to specify cleaning of fuel systems as 
part of critical emission-related maintenance, as described above.
--The possibility of applying engine technology to prevent fuel-related 
deposits.

[[Page 51126]]

--The potential to develop an industry-wide specification for in-use 
LPG motor fuels.
--The costs and benefits of fuel additives designed to prevent fuel-
related deposits and how we could ensure that in-use fuels consistently 
include any appropriate additives.
5. Are There Other Requirements for Large SI Engines?
    a. Crankcase emissions. Due to blowby of combustion gases and the 
reciprocating action of the piston, exhaust emissions can accumulate in 
the crankcase. Uncontrolled engine designs route these vapors directly 
to the atmosphere. We have long required that automotive engines 
prevent emissions from the engine's crankcase. Manufacturers generally 
do this by routing crankcase vapors through a valve into the engine's 
air intake system. We propose to require manufacturers to prevent 
crankcase emissions from Large SI engines. Since automotive engine 
blocks are already tooled for closed crankcases, the cost of adding a 
valve for positive-crankcase ventilation is very small. See the Draft 
Regulatory Support Document for further discussion of the costs and 
emission reductions associated with crankcase emissions.
    b. Diagnosing malfunctions. We propose to require that Large SI 
engines diagnose malfunctioning emission-control systems starting with 
the 2007 model year (see Sec. 1048.110). Three-way catalyst systems 
with closed-loop fueling control work well only when the air-fuel 
ratios are controlled to stay within a narrow range around 
stoichiometry.\125\ Worn or broken components or drifting calibrations 
over time can prevent an engine from operating within the specified 
range. This increases emissions and can significantly increase fuel 
consumption and engine wear. The operator may or may not notice the 
change in the way the engine operates.
---------------------------------------------------------------------------

    \125\ Stoichimetry is the proportion of a mixture of air and 
fuel such that the fuel is fully oxidized with no remaining oxygen. 
For example, stoichiometric combustion in gasoline engines typically 
occurs at an air-fuel mass ratio of about 14.7.
---------------------------------------------------------------------------

    The proposed diagnostic requirement focuses solely on maintaining 
stoichiometric control of air-fuel ratios. This kind of design would 
detect problems such as broken oxygen sensors, leaking exhaust pipes, 
fuel deposits, and other things that would require maintenance to keep 
the engine at the proper air-fuel ratio.
    Some companies are already producing engines with diagnostic 
systems that check for consistent air-fuel ratios. Their initiative 
supports the idea that diagnostic monitoring provides a mechanism to 
help keep engines tuned to operate properly, with benefits for both 
controlling emissions and maintaining optimal performance. There are 
currently no inspection and maintenance programs for nonroad engines, 
so the most important variable in making the emission control and 
diagnostic systems effective is in getting operators to repair the 
engine when the diagnostic light comes on. This calls for a relatively 
simple design to avoid false failures as much as possible. The proposed 
diagnostic requirements therefore focus on detecting inappropriate air-
fuel ratios, which is the most likely failure mode for three-way 
catalyst systems. We propose to specify that the malfunction-indicator 
light should go on when an engine operates for a full minute without 
reaching a stoichiometric air-fuel ratio. If this specified time is too 
long, we could be allowing extended open-loop operation with increased 
emission levels. We request comment on whether this approach is 
appropriate and whether this one-minute period should be longer or 
shorter to provide timely detection without causing false failures. In 
addition, we request comment on the appropriateness of other 
malfunction indicators, such as a measuring the frequency of crossing 
stoichiometry or monitoring the voltage range of oxygen sensors.
    Some natural gas engines may meet standards with lean-burn designs 
that never approach stoichiometric combustion. While manufacturers may 
design these engines to operate at specific air-fuel ratios, catalyst 
conversion is not as sensitive to air-fuel ratio as with stoichiometric 
designs. We request comment on whether these engines should show a 
malfunction condition when departing from a targeted air-fuel ratio, or 
whether some other parameters would more appropriately detect for any 
possible failure modes.
    For cars and light-duty trucks, our diagnostic system requirements 
call for monitoring of misfire and reduction in catalyst conversion 
efficiency. We are not proposing these additional diagnostic features 
for nonroad Large SI engines. Requiring misfire and catalyst conversion 
monitoring, which are more difficult to detect, would require extensive 
development effort to define appropriate failure thresholds and for 
manufacturers to design systems to avoid false failures and false 
positive detection. In the context of this rulemaking, which proposes 
initial standards for nonroad Large SI engines, we believe it is 
important for manufacturers to design engines for low emissions before 
taking the step of designing a thorough, complex diagnostic system. We 
believe that monitoring air-fuel ratio will achieve the majority of the 
benefit available from diagnostic systems at a reasonable cost. 
Moreover, without a corresponding inspection-and -maintenance program, 
operators are most likely to respond to diagnostic warnings with a 
system that is clear and simple.
    An example illustrates a typical scenario. One forklift operator 
driving an LPG-powered lift truck with three-way catalyst and closed-
loop electronic controls noticed that he was able to run two hours 
shorter than usual on a standard tank of fuel. Since power 
characteristics were not noticeably affected, the operator had done no 
maintenance or investigation to correct the problem. Simply replacing 
the defective oxygen sensor restored the engine to its original level 
of performance (for fuel consumption and emission control). A 
diagnostic light would serve to alert operators that the engine needs 
attention and would provide help in identifying any specific parts 
causing the problem. Since the basic function of a three-way catalyst 
system is generally consistent with power and fuel-economy 
considerations, operators would have good reason to respond to a 
diagnostic light.
    The automotive industry has developed a standardized protocol for 
diagnostic systems, including hardware specifications, and uniform 
trouble codes. Some of these will apply to nonroad engines, but some 
will not. In the proposed regulations we reference standards adopted by 
the International Organization for Standardization (ISO) for automotive 
systems. If these standards do not apply to the simpler diagnostic 
design proposed for Large SI engines, we encourage engine manufacturers 
to cooperate with each other and with other interested companies to 
develop new standards specific to nonroad engines.
    As described in the proposed regulatory text, the malfunction light 
should go on when the system detects a malfunction and must stay on 
until the engine is serviced or until the engine returns to consistent, 
normal operation. Stored diagnostic trouble codes would identify as 
closely as possible the cause of the malfunction, which could then be 
read by any qualified technician.
    We request comment on these proposed diagnostic system 
requirements.

[[Page 51127]]

    c. Evaporative emissions. Evaporative emissions occur when fuel 
evaporates and is vented into the atmosphere. They can occur while an 
engine or vehicle is operating and even while it is not being operated. 
Among the factors that affect evaporative emissions are:
     Fuel metering (fuel injectors or carburetor).
     The degree to which fuel permeates fuel lines and fuel 
tanks.
     Proximity of the fuel tank to the exhaust system or other 
heat sources.
     Whether the fuel system is sealed and the pressure at 
which fuel vapors are ventilated.
    In addition, some gasoline fuel tanks may be exposed to heat from 
the engine compartment and high-temperature surfaces such as the 
exhaust pipe. In extreme cases, fuel can start boiling, producing very 
large amounts of gasoline vapors vented directly to the atmosphere.
    Evaporative emissions from Large SI engines and the associated 
equipment represent a significant part of their overall hydrocarbon 
emissions. The magnitude of evaporative emissions varies widely 
depending on the engine design and application. LPG-fueled equipment 
generally has very low evaporative emissions because of the tightly 
sealed fuel system. At the other extreme, carbureted gasoline-fueled 
equipment can have high rates of evaporation. Southwest Research 
Institute measured emissions from several gasoline-fueled Large SI 
engines and found them to vary from about 12 g/day up to almost 100 g/
day.\126\ This study did not take into account the possibility of 
unusually high fuel temperatures during engine operation, as described 
further below.
---------------------------------------------------------------------------

    \126\ ``Measurement of Evaporative Emissions from Off-Road 
Equipment,'' by James N. Carroll and Jeff J. White, Southwest 
Research Institute (SwRI 08-1076), November 1998, Docket A-2000-01, 
document II-A-10.
---------------------------------------------------------------------------

    We are proposing to require basic measures to reduce evaporative 
emissions from gasoline-fueled Large SI engines. The usual approach to 
regulating emissions from nonroad and other mobile engines is to define 
a measurement procedure and adopt numerical limit values (or standards) 
that together determine a minimum required level of performance. 
Manufacturers are then free to use any kind of technology to meet these 
performance standards.
    Since the Act directs us to first consider regulating nonroad 
engines with standards similar to those that apply to motor vehicles, 
we must consider test-based evaporative emission standards that would 
be comparable to those for automobiles. However, we have practical 
concerns with requiring that approach as the only option for 
manufacturers. These concerns relate primarily to the nonintegrated 
nature of these industries and the wide variety of applications in 
which the engines are used. Some manufacturers could face difficulties 
certifying to specific numerical emission levels because of the large 
variation in fuel system components needed to fit the many varied kinds 
of equipment. While a test-based standard may be feasible, we believe 
we should allow the use of other cost-effective approaches that could 
be more appropriate for this industry.
    We propose to adopt an evaporative emission standard of 0.2 grams 
per gallon of fuel tank capacity for heating a fuel tank from 72 deg. 
to 96 deg. F. We further propose that manufacturers can rely on a 
design-based certification instead of measuring emissions by adopting 
one of the designs described in this paragraph. We have identified four 
technologies that would adequately prevent evaporative emissions to 
show compliance with the proposed evaporative emission standard. First, 
pressurized fuel tanks control evaporative emissions by suppressing 
vapor generation. In its standards for industrial trucks operating in 
certain environments, Underwriters Laboratories requires that trucks 
use self-closing fuel caps with tanks that stay sealed to prevent 
evaporative losses; venting is allowed for positive pressures above psi 
or for vacuum pressures of at least 1.5 psi.\127\ Any Large SI engines 
or vehicles operating with these pressures would satisfy the 
certification requirements. Second, for applications where such high 
fuel tank pressures are undesirable, manufacturers could instead rely 
on an air bladder inside the fuel tank that changes in volume to keep 
the system in equilibrium at atmospheric pressure.\128\ Third, an 
automotive-type system that stores fuel tank vapors for burning in the 
engine would be another alternative technology. Finally, collapsible 
bladder tanks, which change in volume to prevent generation of a vapor 
space or vapor emissions, are also commercially available. Also, 
similar to the Underwriters Laboratories' requirement, we are proposing 
that manufacturers must use self-closing or tethered fuel caps to 
ensure that fuel tanks designed to hold pressure are not inadvertently 
left exposed to the atmosphere. Section 1048.105 of the proposed 
regulations describes these design specifications in greater detail. We 
request comment on these approaches and on whether we should consider 
tank insulation as an alternative or complementary strategy for meeting 
the proposed requirements on a design basis.
---------------------------------------------------------------------------

    \127\ ``Industrial Trucks, Internal Combustion Engine-Powered,'' 
UL558, ninth edition, June 28, 1996, paragraphs 26.1 through 26.4, 
Docket A-2000-01, document II-A-28. See Section XI.E for our 
consideration of incorporating the UL requirements into our 
regulations by reference.
    \128\ ``New Evaporative Control System for Gasoline Tanks,'' EPA 
Memorandum from Charles Moulis to Glenn Passavant, March 1, 2001, 
Docket A-2000-01, document II-B-16.
---------------------------------------------------------------------------

    In addition, we propose to require that engine manufacturers use 
(or specify that equipment manufacturers installing their engines use) 
fuel lines meeting the industry performance standard for permeation-
resistant fuel lines developed for motor vehicles.\129\ While metal 
fuel lines do not have problems with permeation, manufacturers should 
use discretion in selecting materials for grommets and valves 
connecting metal components to avoid high-permeation materials. 
Evaporative emission standards for motor vehicles have led to the 
development of a wide variety of permeation-resistant polymer 
components.
---------------------------------------------------------------------------

    \129\ SAE J2260 ``Nonmetallic Fuel System Tubing with One or 
More Layers,'' November 1996.
---------------------------------------------------------------------------

    Finally, manufacturers can take steps to reduce fuel temperatures 
during operation. The use of fuel injection and the associated 
recirculating fuel lines and in-tank fuel pumps may even increase the 
heat load into the fuel tank, which would tend to increase emission 
rates generally and may increase the occurrence of fuel boiling. The 
Underwriters Laboratories specification for forklifts attempts to 
address this concern through a specified maximum fuel temperature, but 
the current limit does not prevent fuel boiling.\130\ We are proposing 
a standard that prohibits fuel boiling during continuous operation at 
30 deg. C (86 deg. F). Engine manufacturers would have to incorporate 
designs that reduce the heat load to the fuel tank to prevent boiling. 
For companies that sell loose engines, this may involve instructions to 
equipment manufacturers to help ensure, for example, that fuel tank 
surfaces are exposed to ambient air rather than to exhaust pipes or 
direct engine heat. Engine manufacturers may specify a maximum fuel 
temperature for the final installation. Such a temperature limit should 
be well below 53 deg. C (128 deg. F), the

[[Page 51128]]

temperature at which summer-grade gasoline (9 RVP) typically starts 
boiling.
---------------------------------------------------------------------------

    \130\ UL558, paragraph 19.1.1, Docket A-2000-01, document II-A-
28.
---------------------------------------------------------------------------

    An additional source of evaporative emissions is from carburetors. 
Carburetors often have high hot soak emissions (immediately after 
engine shutdown). We expect manufacturers to convert carbureted designs 
to fuel injection as a result of the proposed exhaust emission 
standards. While we are not proposing to mandate this technology, we 
believe the need to reduce exhaust emissions will cause engine 
manufacturers to use fuel injection on all gasoline engines. This 
change alone would eliminate most hot soak emissions. We request 
comment on whether the procedure described in the previous paragraphs 
would require fuel injection. In addition, we request comment on the 
possibility of meeting the 2007 exhaust emission standards with 
carbureted engines.
    Engine manufacturers using design-based certification would need to 
describe in the application for certification the selected design 
measures and specifications to address evaporative losses from 
gasoline-fueled engines. For loose-engine sales, this would include 
emission-related installation instructions that the engine manufacturer 
would give to equipment manufacturers.
    With the ready availability of automotive technology and the 
development effort already in place to meet Underwriters Laboratories' 
requirements, we believe the proposed evaporative-control provisions 
would not pose a major development burden in most cases. We expect 
manufacturers generally to meet the proposed evaporative requirements 
with low-cost, off-the-shelf technologies. Individual engines may need 
somewhat more development effort to ensure compliance, but the hardware 
and testing costs would be minimal. We estimate an average cost of 
about $10 per engine for those engines that would be subject to 
evaporative-emission standards. Once this program is fully phased in, 
we estimate over 7,500 tons of HC reductions annually. See the Draft 
Regulatory Support Document for further information about the estimated 
costs and benefits of evaporative emission controls.
    Reducing evaporative losses would not only provide health and 
safety advantages, but would contribute to overall fuel savings from 
Large SI engines. We request comment on the proposed measures to 
control evaporative emissions, including the potential cost and 
effectiveness of (1) an evaporative emission standard at 0.2 g/gal of 
fuel, (2) the optional design standards, and (3) the proposed fuel-line 
and fuel-temperature requirements. We also request comment on any 
additional or complementary approaches.

D. Proposed Testing Requirements and Supplemental Emission Standards

1. What Duty Cycles Would Be Used To Measure Emissions?
    For 2004 through 2006 model years, we are proposing to use the same 
steady-state duty cycles adopted by California ARB. For most engines 
this involves the testing based on the ISO C2 duty cycle, with a 
separate duty cycle for constant-speed applications based on the ISO D2 
duty cycle. These duty cycles are described further below.
    Starting in 2007, we are proposing an expanded set of duty cycles, 
again with separate treatment for variable-speed and constant-speed 
applications. These duty-cycles are each comprised of three segments: 
(1) A warm-up segment, (2) a transient segment, and (3) a steady-state 
segment. Each of these segments, described briefly in this section, 
include specifications for the speed and load of the engine as a 
function of time. Measured emissions during the transient and steady-
state segments must meet the emission standards that apply. In general, 
the proposed duty-cycles are intended to include representative 
operation from the wide variety of in-use applications. This includes 
highly transient low-speed forklift operation, constant-speed operation 
of portable equipment, and intermediate-speed vehicle operation. 
Chapter 4 of the Draft Regulatory Support Document describes the duty 
cycles in greater detail. We request comment on the proposed duty 
cycles.
    Ambient temperatures in the laboratory must be between 20 deg. and 
30 deg. C (68 and 86 deg. F) during duty-cycle testing. This improves 
the repeatability of emission measurements when the engine runs through 
its prescribed operation. We nevertheless expect manufacturers to 
design for controlling emissions under broader ambient conditions, as 
described in Section IV.D.5.
    The warm-up segment begins with a cold-start. This means that the 
engine should be very near room temperature before the test cycle 
begins. Once the engine is started, it would be operated over the first 
3 minutes of the specified transient duty cycle without emission 
measurement. The engine then idles for 30 seconds before starting the 
prescribed transient cycle. The purpose of the warm-up segment is to 
bring the engine up to normal operating temperature in a standardized 
way. The 3-minute warm-up period allows enough time for engine-out 
emissions to stabilize, for the catalyst to warm up enough to become 
active, and for the engine to start closed-loop operation. This serves 
as a defined and achievable target for the design engineer to limit 
cold-start emissions to a relatively short period.
    The transient segment of the general duty cycle is a composite of 
forklift and welder operation. This duty cycle was developed by 
selecting segments of measured engine operation from two forklifts and 
a welder as they performed their normal functions. This transient 
segment captures the wide variety of operation from a large majority of 
Large SI engines. Emissions measured during this segment are averaged 
over the entire transient segment to give a single value in g/kW.
    Steady-state testing consists of engine operation for an extended 
period at several discrete speed-load combinations. Associated with 
these test points are weighting factors that allow a single weighted-
average steady-state emission level in g/kW. The principal duty cycle 
is based on the ISO C2 cycle, which has five modes at various 
intermediate speed points, plus one mode at rated speed and one idle 
mode. The combined intermediate-speed points at 10, 25, and 50 percent 
account for over 70 percent of the total modal weighting. While any 
steady-state duty cycle is limited in how much it can represent 
operation of engines that undergo transient operation, the distribution 
of the C2 modes and their weighting values aligns significantly with 
expected and measured engine operation from Large SI engines. In 
particular, these engines are generally not designed to operate for 
extended periods at high-load, rated speed conditions. Field 
measurement of engine operation shows, however, that forklifts operate 
extensively at lower speeds than those included in the C2 duty cycle. 
While we believe the test points of the C2 duty cycle are 
representative of engine operation from many applications of Large SI 
engines, supplementing the steady-state testing with a transient duty 
cycle is necessary to adequately include engine operation 
characteristic of what occurs in the field.
    Engines such as generators, welders, compressors, and pumps are 
governed to operate only at a single speed with varying loads. We are 
proposing a combination of transient and steady-state testing that 
applies specifically to constant-speed engines. The transient duty-
cycle segment includes 20 minutes of engine operation based on measured

[[Page 51129]]

welder operation. We expect to propose this same transient duty cycle 
for constant-speed nonroad diesel engines. Manufacturers would also 
test constant-speed Large SI engines with steady-state operation based 
on the ISO D2 duty cycle, which specifies engine operation at rated 
speed with five different load points. This same steady-state duty 
cycle applies to constant-speed, nonroad diesel engines. Emission 
values measured on the D2 duty cycle are treated the same as values 
from the C2 duty cycle; the same numerical standards apply to both 
cycles. Manufacturers selling engines for both constant-speed and 
variable-speed applications would omit the constant-speed transient 
test, since that operation is included in the general transient test.
    We are concerned that engines certified with the C2 duty cycle may 
be installed in constant-speed applications; or, similarly that engines 
certified with the D2 duty cycle may be installed in variable-speed 
applications. Since the C2 cycle includes very little operation at 
rated speed, it is not effective in ensuring control of emissions for 
constant-speed engines. The D2 cycle is even less capable of predicting 
emission performance from variable-speed engines. To address this, we 
are proposing that manufacturers routinely test engines on both the C2 
and D2 duty cycles.\131\ Manufacturers selling only a variable-speed or 
only constant-speed engines in an engine family would be allowed to 
omit testing with the duty cycle that would not apply. With a more 
limited certification, however, we would require the manufacturer to 
add information to the engine label and any emission-related 
installation instructions to clarify that the engine has a limited 
certification. We request comment on this approach to variable- and 
constant-speed engines.
---------------------------------------------------------------------------

    \131\ It would not be necessary to repeat the warm-up and 
transisent segments for additional steady-state duty cycles.
---------------------------------------------------------------------------

    Some diesel-derived engines operating on natural gas with power 
ratings up to 1,500 or 2,000 kW may be covered by the proposed emission 
standards. Engine dynamometers with transient-control capabilities are 
generally limited to testing engines up to 500 or 600 kW. We propose at 
this time to waive emission standards and testing requirements related 
to transient duty cycles for engines above 560 kW. We would likely 
review this provision for Large SI engines once we have reached a 
conclusion on the same issue for nonroad diesel engines. We would 
expect to treat both types of engines the same way. Note that the 
field-testing emission standards still apply to engines that don't 
certify to transient duty-cycle standards.
2. What Fuels Would Be Used During Emission Testing?
    For gasoline-fueled Large SI engines, we are proposing to use the 
same specifications we have adopted for testing gasoline-fueled highway 
vehicles and engines. This includes the revised specification to cap 
sulfur levels at 80 ppm (65 FR 6698, February 10, 2000).
    For LPG and natural gas, we are proposing to use the same 
specifications adopted by California ARB. We understand that in-use 
fuel quality for LPG and natural gas varies significantly in different 
parts of the country and at different times of the year. Not all in-use 
fuels outside California meet California ARB specifications for 
certification fuel, but fuels meeting the California specifications are 
nevertheless widely available. Test data show that LPG fuels with a 
much lower propane content have only slightly higher NOX and 
CO emissions (see Chapter 4 of the Draft Regulatory Support Document 
for additional information). These data support our belief that engines 
certified using the specified fuel will achieve the desired emission 
reduction for a wide range of in-use fuels.
    Unlike California ARB, we propose to apply the fuel specifications 
to testing only for emission measurements, not to service accumulation. 
We propose to allow service accumulation between emission tests with 
certification fuel or any commercially available fuel of the 
appropriate type. We would similarly allow manufacturers to choose 
between certification fuel and any commercial fuel for in-use 
measurements to show compliance with field-testing emission standards.
    We request comment on appropriate fuel specifications for all types 
of engine testing.
3. Are There Proposed Production-Line Testing Provisions for Large SI 
Engines?
    The provisions described in Section III.C.4 apply to Large SI 
engines. These proposed requirements are consistent with those adopted 
by California ARB. One new issue specific to Large SI engines relates 
to the duty cycles for measuring emissions from production-line 
engines.
    For routine production-line testing, we propose to require emission 
measurements only with the steady-state duty cycles used for 
certification. Due to the cost of sampling equipment for transient 
engine operation, we are not proposing to require routine transient 
testing of production-line engines. We believe that steady-state 
emission measurements will give a good indication of manufacturers' 
ability to build engines consistent with the prototypes on which their 
certification data are based. We also propose, however, to reserve the 
right to direct a manufacturer to measure emissions with a transient 
duty cycle if we believe it is appropriate. One indication of the need 
for this transient testing would be if steady-state emission levels 
from production-line engines are significantly higher than the emission 
levels reported in the application for certification for that engine 
family. For manufacturers with the capability of measuring transient 
emission levels at the production line, we would recommend doing 
transient tests to better ensure that in-use tests will not reveal 
problems in controlling emissions during transient operation. 
Manufacturers would not need to make any measurements to show that 
production-line engines can meet field-testing emission standards.
    We request comment on all aspects of the proposed production-line 
testing requirements, including engine sampling rates and options for 
using alternative testing methods.
4. Are There Proposed In-Use Testing Provisions for Large SI Engines?
    While the certification and production-line compliance requirements 
are important to ensure that engines are designed and produced in 
compliance with established emission limits, there is also a need to 
confirm that manufacturers build engines with sufficient durability to 
meet emission limits as they age in service. Consistent with the 
California ARB program, we are proposing to require engine 
manufacturers to conduct emission tests on a small number of field-aged 
engines to show they meet emission standards.
    Under the proposed program, we may generally select up to 25 
percent of a manufacturer's engine families in a given year to be 
subject to in-use testing (see Table IV.D-1). Most companies would need 
to test at most one engine family per year. Manufacturers may conduct 
in-use testing on any number of additional engine families at their 
discretion. We request comment on this maximum rate of testing engines 
under the proposed in-use testing program.

[[Page 51130]]



               Table IV.D-1.--Maximum In-Use Testing Rate
------------------------------------------------------------------------
                                                               Maximum
                                                              number of
                                                               families
        Number of engine families for a manufacturer          subject to
                                                                in-use
                                                               testing
                                                              each year
------------------------------------------------------------------------
1..........................................................            1
2..........................................................            1
3..........................................................            1
4..........................................................            1
5..........................................................            1
6..........................................................            1
7..........................................................            1
8..........................................................            2
9..........................................................            2
10.........................................................            2
11.........................................................            2
12.........................................................            3
------------------------------------------------------------------------

    We are also proposing that manufacturers in unusual circumstances 
have the ability to develop an alternate plan to fulfill any in-use 
testing obligations, consistent with a similar program we have adopted 
for outboard and personal watercraft marine engines. These 
circumstances include total sales for an engine family below 200 per 
year, installation only in applications where testing is not possible 
without irreparable damage to the vehicle or engine, or any other 
unique feature that prevents full emission measurements. We request 
comment on these provisions.
    While this flexibility for alternate measurements would be 
available to small-volume manufacturers, we also request comment on 
applying in-use testing requirements to very small-volume engine 
families in general. While the proposed regulations would allow us to 
select an engine family every year from an engine manufacturer, there 
are several reasons why small volume manufacturers could expect a less 
demanding approach. These manufacturers may have only one or two engine 
families. If a manufacturer shows that an engine family meets emission 
standards in an in-use testing exercise, that could provide adequate 
data to show compliance for that engine family for a number of years, 
provided the manufacturer continues to produce those engines without 
significantly redesigning them in a way that could affect their in-use 
emissions performance and that we do not have other reason to suspect 
noncompliance. Also, where we had comfort that a manufacturer's engines 
were likely in good in-use compliance, we would generally take the 
approach of selecting engine families based on some degree of 
proportionality. To the extent that manufacturers produce a smaller 
than average proportion of engines, they could expect that we would 
select their engine families less frequently, especially if other 
available data pointed toward clear in-use compliance.
    We are also proposing that manufacturers in unusual circumstances 
have the ability to develop an alternate plan to fulfill any in-use 
testing obligations. These include total sales for an engine family 
below 200 per year, installation only in applications where testing is 
not possible without irreparable damage, or any other unique feature 
that prevents full emission measurements. We request comment on these 
provisions. While this flexibility would be available to small-volume 
manufacturers, we also request comment on applying in-use testing 
requirements to these companies in general. While the proposed 
regulations would allow us select an engine family every year from an 
engine manufacturer, there are reasons why these companies could expect 
a less demanding approach. First, to avoid unfair treatment of 
individual manufacturers, we would generally take the approach of 
selecting engine families based on some degree of proportionality. To 
the extent that manufacturers produce a smaller than average proportion 
of engines, they could expect that we would select their engine 
families less frequently. In addition, our experience in implementing a 
comparable testing program for recreational marine engines provides a 
history of how we implement in-use testing requirements.
    Engines can be tested one of two ways. First, manufacturers can 
remove engines from vehicles or equipment and test the engines on a 
laboratory dynamometer using certification procedures. For 2004 through 
2006 model year engines, this would be the same steady-state duty cycle 
used for certification; manufacturers may optionally test engines on 
the dynamometer under transient operating conditions. For 2007 and 
later model year engines, manufacturers must test engines using both 
steady-state and transient duty cycles, as in certification.
    Second, manufacturers may use the proposed equipment and procedures 
for testing engines without removing them from the equipment (referred 
to in this document as field-testing). See Section IV.D.5 for a more 
detailed description of how to measure emissions from engines during 
normal operation in the field. Since engines operating in the field 
cannot be controlled to operate on a specific duty cycle, compliance 
would be demonstrated by comparing the measured emission levels to the 
proposed field-testing emission standards, which would have higher 
numerical value to account for the possible effects of different engine 
operation. Because the engine operation can be so variable, however, 
engines tested to show compliance only with the field-testing emission 
standards would not be eligible to participate in the in-use averaging, 
banking, and trading program (described below).
    We could give directions to include specific types of normal 
operation to confirm that engines are controlling emissions in real 
operation. For example, for testing to show compliance with field-
testing emission standards, we may identify specific types of operation 
on specific days or times to sample emissions, as long as these fall 
within the range of normal operation for the application. Dynamometer 
testing might include operation over a torque-speed trace measured from 
any appropriate equipment. If we don't provide specific direction, 
manufacturers would use their discretion to show that engines comply 
with the field-testing standards, much like for certification (see 
Section IV.D.5).
    Along with the in-use testing program, we are proposing an in-use 
credit program designed to reduce compliance cost without reducing 
environmental benefits. The program would provide manufacturers with 
flexibility in addressing potential in-use noncompliance in a way that 
we agree would avoid the need for a determination of nonconformity 
under Clean Air Act section 207(c), and thereby avoid a recall. 
Participation in this program would be voluntary.
    The flexibility of the proposed in-use credit program is 
appropriate given the particular circumstances of the Large SI engine 
industry. For an engine family failing in-use testing, we believe 
recalling the nonconforming engines may be particularly burdensome and 
impractical for this industry, mainly due to the difficulty of tracking 
the nonconforming engines. Recalling the engines would therefore 
require substantial resources, yet may not be highly effective in 
remedying the excess emissions.
    Clean Air Act section 213 requires engines to comply with emission 
standards throughout their regulatory useful lives, and section 207 
requires a manufacturer to remedy in-use nonconformity when we 
determine that a substantial number of properly maintained and used 
engines fail to conform with the applicable emission standards (42 
U.S.C. 7541). Once we make this determination, recall would be 
necessary to remedy the

[[Page 51131]]

nonconformity. However, under these circumstances, where it is expected 
that recall would be impractical and largely ineffective, it is 
appropriate not to make a determination of substantial nonconformity 
where a manufacturer uses emission credits to offset in-use 
noncompliance. Thus, under the Clean Air Act, we may choose to make no 
section 207(c) determination of substantial nonconformity where an 
engine manufacturer uses emission credits to offset any noncompliance 
with the statute's in-use performance requirements. Though the language 
of section 213(d) is silent on the issue of emission credits, it 
generally allows considerable discretion in determining what 
modifications to the highway regulatory scheme are appropriate for 
nonroad engines.
    In-use credits would be based on in-use testing conducted by the 
manufacturer. For a given engine family, the in-use compliance level 
would be determined by averaging the results from in-use testing 
performed for that engine family. If the in-use compliance level is 
below the applicable standard, the manufacturer would generate in-use 
credits for that engine family. If the in-use compliance level is above 
the standard, the engine family would experience a credit deficit. 
Manufacturers calculate credits based on the measured emission levels 
(when compared with applicable emission standards) and several 
additional variables, such as rated power, useful life, and engine 
family population. To ensure that emission credits show a real degree 
of emission control relative to the emission standard, we are proposing 
that emission credits must be based on transient duty-cycle operation 
on a dynamometer. An exception would apply for averaging emission 
levels from 2004 through 2006 model year engines, where we would allow 
for emission credits based on steady-state emission testing.
    While we are proposing the in-use credit program adopted by 
California ARB, an additional concern relates to the status of emission 
credits over the long term. This would be our first step in setting 
emission standards for this category of engines, which increases the 
uncertainty of setting standards requiring the ``greatest degree of 
emission reduction achievable,'' as called for in the Clean Air Act. If 
manufacturers are able to use the projected technologies to 
consistently achieve emission levels even lower than we require, in-use 
testing over several years can lead to a large pool of in-use emission 
credits. To avoid making the in-use testing program meaningless for 
some engines, especially in the context of a transition to a next tier 
of emission standards , we would not intend to use credits older than 
three model years in deciding whether to take administrative action 
under section 207(c). This should address the concern for accumulating 
credits without taking away EPA and the manufacturers' substantial 
flexibility to use credits to offset marginally noncompliant engines.
    We request comment on all aspects of the proposed in-use testing 
requirements.
5. What About Field-Testing Emission Standards and Test Procedures?
    To enable field-testing of Large SI engines and to address concerns 
for controlling emissions outside of the specific duty cycles proposed 
to measure emissions for certification, we are proposing procedures and 
standards that apply to a wider range of normal engine operation.
    a. What is the field-testing concept? Measuring emissions from 
engines in the field as they undergo normal operation while installed 
in nonroad equipment addresses two broad concerns. First, this provides 
a low-cost method of testing in-use engines. Second, testing has shown 
that emissions can vary dramatically under certain modes of operation. 
Field-testing addresses this by including emission measurements over 
the broad range of normal engine operation. This may include varying 
engine speeds and loads according to real operation and may include a 
reasonable range of ambient conditions, as described below.
    No engine operating in the field can follow a prescribed duty cycle 
for a consistent measure of emission levels. Similarly, no single test 
procedure can cover all real-world applications, operations, or 
conditions. Specifying parameters for testing engines in the field and 
adopting an associated emission standard provides manufacturers with a 
framework for showing that their engines will control emissions under 
the whole range of normal operation in the relevant nonroad equipment.
    To ensure that emissions are controlled from Large SI engines over 
the full range of speed and load combinations seen in the field, we are 
proposing supplemental emission standards that apply more broadly than 
the duty-cycle standard. These standards would apply to all regulated 
pollutants (NOX, HC, and CO) under all normal operation 
(steady-state or transient). We propose to exclude abnormal operation 
(such as very low average power and extended idling time), but not 
restrict operation to any specific combination of speeds and loads. In 
addition, we are proposing that the field-testing standards would apply 
under a broad range of in-use ambient conditions, both to ensure robust 
emission controls and to avoid overly restricting the times available 
for testing. These provisions are described in detail below.
    b. What are the field-testing emission standards? Starting with the 
2007 model year, we propose to apply field-testing emission standards 
of 4.7 g/kW-hr (3.5 g/hp-hr) for HC+NOX emissions and 6.7 g/
kW-hr (5.0 g/hp-hr) for CO emissions. As described above for the duty-
cycle standards, we believe manufacturers will be able to use the 
additional time beyond 2004 to optimize their designs to control 
emissions under the full range of normal in-use operation. As described 
in Chapter 4 of the Draft Regulatory Support Document, we believe 
manufacturers can achieve these proposed emission standards using 
currently available three-way catalysts and electronically controlled 
fuel systems.
    As described above, we are proposing alternate emission standards 
for those engines operating predominantly outdoors. The corresponding 
proposed field-testing standards are 1.8 g/kW-hr (1.3 g/hp-hr) for 
HC+NOX emissions and 41 g/kW-hr (31 g/hp-hr) for CO 
emissions.
    Manufacturers have expressed an interest in using field-testing 
procedures before the 2007 model year to show that they can meet 
emission standards as part of the in-use testing program. While we are 
not proposing specific field-testing standards for 2004 through 2006 
model year engines, we are proposing to allow this as an option. In 
this case, manufacturers would conduct the field testing as described 
here to show that their engines meet the 4 g/kW-hr HC+ NOX 
standard and the 50 g/kW-hr CO standard. This could give manufacturers 
the opportunity to do testing at significantly lower cost compared with 
laboratory testing. Preliminary certification data from California ARB 
show that manufacturers are reaching steady-state emission levels well 
below emission standards, so we would expect any additional variability 
in field-testing measurements not to affect manufacturers' ability to 
meet the same emission standards. We request comment on the need for 
and appropriateness of this provision. We also request comment on 
whether there should be a separate field-testing standard, higher or 
lower than the proposed duty-cycle standards, to provide adequate 
assurance that the

[[Page 51132]]

engines operate with the required level of emission control.
    These proposed field-testing standards are based on emission data 
measured with the same emission-control technology used to establish 
the duty-cycle standards. The higher numerical standard for field 
testing reflects the observed variation in emissions for varying engine 
operation, the projected effects of ambient conditions on the projected 
technology, and the accuracy limitations of in-use testing equipment 
and procedures. Conceptually, we believe that field-testing standards 
should primarily require manufacturers to adjust engine calibrations to 
effectively manage air-fuel ratios under varying conditions. The 
estimated cost of complying with emission standards includes an 
allowance for the time and resources needed for this recalibration 
effort (see Section IX.B. for total estimated costs per engine).
    EPA generally requires manufacturers to show at certification that 
they are capable of meeting requirements that apply for any in-use 
testing. This adds a measure of assurance to both EPA and manufacturers 
that the engine design is sufficient for any in-use engines to pass any 
later testing. For Large SI engines, we are proposing that 
manufacturers show in their application for certification that they 
meet the field-testing standards. Manufacturers would submit a 
statement that their engines will comply with field-testing emission 
standards under all conditions that may reasonably be expected to occur 
in normal vehicle operation and use. The manufacturer would provide a 
detailed description of any testing, engineering analysis, and other 
information that forms the basis for the statement. This would likely 
include a variety of steady-state emission measurements not included in 
the prescribed duty cycle. It may also include a continuous trace 
showing how emissions vary during the transient test or it may include 
emission measurements during other segments of operation manufacturers 
believe is representative of the way their engines normally operate in 
the field.
    Two additional provisions are necessary to allow emission testing 
without removing engines from equipment in the field. We are proposing 
to require manufacturers to design their engines to broadcast 
instantaneous speed and torque values to the onboard computer. We are 
also proposing a requirement to add an emission sampling port 
downstream of the catalyst.
    The equipment and procedures for showing compliance with field-
testing standards also hold promise to reduce the cost of production-
line testing. Companies with production facilities that have a 
dynamometer but no emission measurement capability could use the field-
testing equipment and procedures to get a low-cost, valid emission 
measurement at the production line. Manufacturers may choose to use the 
cost advantage of the simpler measurement to sample a greater number of 
production-line engines. This would provide greater assurance of 
consistent emissions performance, but would also provide valuable 
quality-control data for overall engine performance. See the discussion 
of alternate approaches to production-line testing in Section III.C.4 
for more information.
    c. What limits are placed on field testing? The field-testing 
standards would apply to all normal operation. This could include 
steady-state or transient engine operation. Given a set of field-
testing standards, the goal for the design engineer is to ensure that 
engines are properly calibrated for controlling emissions under any 
reasonably expected mode of engine operation. Engines may not be able 
to meet the emissions limit under all conditions, however, so we are 
proposing several parameters that would narrow the range of engine 
operation that would be subject to the field-testing standards. For 
example, emission sampling for field testing would not include engine 
starting.
    Engines can often operate at extreme engine conditions (summer, 
winter, high altitude, etc.). To narrow the range of conditions for the 
design engineer, we are proposing to limit emission measurements during 
field testing to ambient temperatures from 13 deg. to 35 deg. C 
(55 deg. to 95 deg. F), and to ambient pressures from 600 to 775 
millimeters of mercury (which should cover almost all normal pressures 
from sea level to 7,000 feet above sea level). This allows testing 
under a wider range of conditions in addition to helping ensure that 
engines are able to control emissions under the whole range of 
conditions under which they operate.
    We are proposing some additional limits to define ``normal'' 
operation that could be included in field testing. These restrictions 
are intended to provide manufacturers with some certainty about what 
their design targets are and to ensure that compliance with the 
proposed field-testing standards would be feasible. These restrictions 
would apply to both variable-speed and constant-speed engine 
applications.
    First, measurements with more than 2 minutes of continuous idle 
would be excluded. This means that an emission measurement from a 
forklift while it idled for 5 minutes would not be considered valid. On 
the other hand, an emission measurement from a forklift that idled for 
1 minute (continuous or intermittent) and otherwise operated at 40 
percent power for several minutes would be considered a valid 
measurement. Measurements with in-use equipment in their normal service 
show that idle periods for Large SI engines are short, but relatively 
frequent. We should therefore not automatically exclude an emission 
sample if it includes an idling portion. At the same time, controlling 
emissions during extended idling poses a difficult design challenge, 
especially at low ambient temperatures. Exhaust and catalyst 
temperatures under these conditions can decrease enough that catalyst 
conversion rates decrease significantly. Since extended idling is not 
an appropriate focus of extensive development efforts at this stage, we 
believe the 2-minute threshold for continuous idle appropriately 
balances the need to include measurement during short idling periods 
with the technical challenges of controlling emissions under difficult 
conditions.
    Second, we are proposing that the measured power during the 
sampling period must be above 5 percent of maximum power for an 
emission measurement to be considered valid. Brake-specific emissions 
(g/kW-hr) can be very high at low power because they are calculated by 
dividing the g/hr emission rate by a very small power level (kW). By 
ensuring that brake-specific emissions are not calculated by dividing 
by power levels less than 5 percent of the maximum, we can avoid this 
problem.
    Third, gasoline-fueled engines need to run rich of stoichiometric 
combustion during extended high-load operation to protect against 
engine failure. This increases HC and CO emissions. We are accordingly 
proposing for gasoline-fueled engines that operation at 90 percent or 
more of maximum power must be less than 10 percent of the total 
sampling time. We would expect it to be uncommon for engine 
installations to call for such high power demand due to the shortened 
engine lifetime at very high-load operation. A larger engine could 
generally produce the desired power at a lower relative load, without 
compromising engine lifetime. Alternatively, applications that call for 
full-load operation typically use diesel engines. We propose to allow 
manufacturers to request a different threshold to allow more open-loop 
operation. Before we could approve

[[Page 51133]]

such a request, the engine manufacturer would need to have a plan for 
ensuring that the engines in their final installation would not 
routinely operate at loads above the specified threshold.
    Fourth, as a part of the ``normal operation'' limitation, we are 
considering a limit on the frequency of accelerations. Very frequent 
acceleration events can make it difficult to consistently get enough 
air for combustion. Engine dynamometers also place a practical limit on 
the degree of transient operation that can be simulated in the 
laboratory. It would not be appropriate to exclude normal driving 
patterns, but drawing a line at the upper end of what happens in the 
field may be an appropriate constraint for field testing. This would 
likely take the form of a maximum frequency of acceleration events 
during the emission sampling period. We request comment on defining the 
most severe accelerations that we should include in field-testing as 
normal operation.
    An additional parameter to consider is the minimum sampling time 
for field testing. A longer period allows for greater accuracy, due 
mainly to the smoothing effect of measuring over several transient 
events. On the other hand, an overly long sampling period can mask 
areas of engine operation with poor emission-control characteristics. 
To balance these concerns, we are proposing a minimum sampling period 
of 2 minutes. In other rules for diesel engines, we have allowed 
sampling periods as short as 30 seconds. Spark-ignition engines 
generally don't have turbochargers and they control emissions by 
maintaining air-fuel ratio with closed-loop controls through changing 
engine operation. Spark-ignition engines are therefore much less prone 
to consistent emission spikes from off-cycle or unusual engine 
operation. We believe the 2-minute sampling time requirement will 
ensure sufficient measurement accuracy and will allow for more 
meaningful measurements from engines that may be operated with very 
frequent but brief times at idle. We are not proposing a maximum 
sampling time. We would expect manufacturers testing in-use engines to 
select an approximate sampling time before measuring emissions. When 
selecting an engine family for the in-use testing program, we may add 
further direction related to the emission-sampling effort, such as 
sampling time or specific types of engine operation.
    We request comment on whether these are appropriate constraints on 
sampling emissions using field-testing procedures. In particular, we 
request comment on whether the limitations described are necessary or 
sufficient to target the whole range of normal operation that should be 
subject to emission standards.
    d. How do I test engines in the field? To test engines without 
removing them from equipment, analyzers would be connected to the 
engine's exhaust to detect emission concentrations during normal 
operation. Exhaust volumetric flow rate and continuous power output 
would also be needed to convert the analyzer responses to units of g/
kW-hr for comparing to emission standards. We are proposing to 
calculate these values from measurements of the engine intake flow 
rate, the exhaust air/fuel ratio and the engine speed, and from torque 
information.
    Small analyzers and other equipment are already available that 
could be adapted for measuring emissions from field equipment. A 
portable flame ionization detector could measure total hydrocarbon 
concentrations. Methane measurement currently requires more expensive 
laboratory equipment that is impractical for field measurements. Field-
testing standards would therefore be based on total hydrocarbon 
emissions. A portable analyzer based on zirconia technology measures 
NOX emissions. A nondispersive infrared (NDIR) unit could 
measure CO. Emission samples could best be drawn from the exhaust flow 
directly downstream of the catalyst material to avoid diluting effects 
from the end of the tailpipe. For this reason we request comment on a 
requirement for manufacturers to produce all their engines with this 
kind of sampling port in the exhaust pipe or at the end of the 
catalytic converter. Mass flow rates would also factor into the torque 
calculation; this could either be measured in the intake manifold or 
downstream of the catalyst.
    Calculating brake-specific emissions depends on determining 
instantaneous engine speed and torque levels. We therefore propose to 
require that manufacturers design their engines to continuously monitor 
engine speed and torque. The proposed tolerance for speed measurements, 
which is relatively straightforward is 5 percent. For 
torque, the onboard computer would need to convert measured engine 
parameters into useful units. The manufacturer would probably need to 
monitor a surrogate value such as intake manifold pressure or throttle 
position (or both), then rely on a look-up table programmed into the 
onboard computer to convert these torque indicators into newton-meters. 
Manufacturers may also want to program the look-up tables for torque 
conversion into a remote scan tool. Because of the greater uncertainty 
in these measurements and calculations, we are proposing that 
manufacturers produce their systems to report torque values that are 
within 85 and 105 percent of the true value. This broader range allows 
appropriately for the uncertainty in the measurement, while providing 
an incentive for manufacturers to make the torque reading as accurate 
as possible. Under-reporting torque values would over-predict 
emissions. These tolerances are taken into account in the selection of 
the field-testing standards, as described in Chapter 4 of the Draft 
Regulatory Support Document. We request comment on this approach to 
measuring in-use emissions and on any alternate approaches.
    We request comment on all aspects of field-testing standards and 
procedures.

E. Special Compliance Provisions

    We are proposing a variety of provisions to address the particular 
concerns of small-volume manufacturers of Large SI engines. These 
provisions are generally designed to address the limited capital and 
engineering resources of companies that produce very few engines.
    As described in Section IV.B.4, we are proposing a provision to 
allow manufacturers to certify Large SI engines to emission standards 
for engines below 19 kW if they have displacement below 1 liter and 
rated power between 19 and 30 kW. We are proposing to expand this 
flexibility to include a limited number of engines up to 2.5 liters. 
This provision would be available for manufacturers producing 300 or 
fewer Large SI engines annually nationwide for the 2004 through 2006 
model years. We request comment on this arrangement, especially in 
three areas. First, we request comment on the possible need to adjust 
the 30 kW cap for these engines to ensure that we include the 
appropriate engines. Second, we request comment on the sales threshold 
and whether a greater allowance would be necessary to accommodate the 
sales levels of small-volume manufacturers. Finally, since many of 
these engines may be used in places where individual exposure to CO 
emissions is a concern, we request comment on adopting an intermediate 
CO emission standard for these engines. The CO emission standard for 
engines rated below 19 kW is currently about 600 g/kW-hr. Engines with 
displacement between 1 and 2.5 liters generally have much lower CO 
emissions than small lawn and garden engines. Baseline emission levels 
on

[[Page 51134]]

small automotive-type engines shows that uncontrolled emission levels 
are about 130 g/kW-hr. We request comment on adopting this as a CO 
standard for engines that use the provision described in this 
paragraph.
    Starting in 2007, we propose to discontinue the provisions 
described above for engines between 1 and 2.5 liters. In their place, 
we propose to adopt for three model years the standards that would 
otherwise apply in 2004 (4 g/kW-hr HC+NOX and 50 g/kW-hr CO 
with steady-state duty cycles). Starting in 2010, there would no longer 
be separate emission standards for small-volume manufacturers. Since 
upgrading to the anticipated emission-control technology substantially 
improves performance, we expect that small-volume manufacturers may 
find it advantageous to introduce these technologies ahead of the 
schedule described here.
    We are proposing several additional provisions to reduce the burden 
of complying with emission standards; we propose to apply these 
provisions to all manufacturers. These include (1) reduced production-
line testing rates after consistent testing with good emission results, 
(2) allowance for alternative, low-cost testing methods to test 
production-line engines, (3) a flexible approach to developing 
deterioration factors, which gives the manufacturer broad discretion to 
develop appropriate emission-durability estimates.
    We are also proposing provisions to address hardship circumstances, 
as described in Section VII.C. For Large SI engines, we are proposing a 
longer available extension of the deadline for meeting emission 
standards for small-volume manufacturers. Under this provision, we 
would extend the deadline by three years for companies that qualify for 
special treatment under the hardship provisions. We would, however, not 
extend the deadline for compliance beyond the three-year period. This 
approach considers the fact that, unlike most other engine categories, 
qualifying small businesses are more likely to be manufacturers 
designing their own products. Other types of engines more often involve 
importers, which are limited more by available engine suppliers than 
design or development schedules.

F. Technological Feasibility of the Standards

    Our general goal in designing the proposed standards is to develop 
a program with technologically feasible standards that will achieve 
significant emission reductions. Our standards must comply with Clean 
Air Act section 213(a)(3), as described in Section III.B. The Act also 
instructs us to first consider standards equivalent in stringency to 
standards for comparable motor vehicles or engines (if any) regulated 
under section 202 of the Act, taking into consideration technological 
feasibility, costs, and other factors (the relevant engines regulated 
under section 202 are automotive and highway truck engines). We are 
proposing emission standards that depend on the industrial versions of 
established automotive technologies. The most recent advances in 
automotive technology have made possible even more dramatic emission 
reductions. However, we believe that transferring some of these most 
advanced technologies would not be appropriate for nonroad engines at 
this time, especially considering the much smaller sales volumes for 
amortizing fixed costs and the additional costs associated with the 
first-time regulation of these engines. On the other hand, the proposed 
emission standards for Large SI align well with standards we have 
adopted for the next tier of heavy-duty highway gasoline engines (64 FR 
58472, October 29, 1999). We have also adopted long-term standards for 
these engines that require significant further reductions with more 
sophisticated technologies (66 FR 5002, January 18, 2001).
    To comply with the 2004 model year standards, manufacturers should 
not need to do any development, testing, or certification work that is 
not already necessary to meet California ARB standards in 2004. As 
shown in Chapter 4 of the Draft Regulatory Support Document, 
manufacturers can meet these standards with three-way catalysts and 
closed-loop fuel systems. These technologies have been available for 
industrial engine applications for several years. Moreover, several 
manufacturers have already completed the testing effort to certify with 
California ARB that their engines meet these standards. Complying with 
the proposed standards nationwide in 2004 would therefore require 
manufacturers only to produce greater numbers of the engines complying 
with the California standards.
    Chapter 4 of the Draft Regulatory Support Document further 
describes data and rationale showing why we believe that the proposed 
2007 model year emission standards under the steady-state and transient 
duty-cycles and field-testing procedures are feasible. In summary, SwRI 
testing and other data show that the same catalyst and fuel-system 
technologies needed to meet the 2004 standards can be optimized to meet 
more stringent emission standards. Applying further development allows 
the design engineer to fine-tune control of air-fuel ratios and address 
any high-emission modes of operation to produce engines that 
consistently control emissions to very low levels, even considering the 
wide range of operation experienced by these engines. The proposed 
numerical emission standards are based on measured emission levels from 
engines that have operated for at least 5,000 hours with a functioning 
emission-control system. These engines demonstrate the achievable level 
of control from catalyst-based systems and provide a significant degree 
of basic development that should help manufacturers in optimizing their 
own engines.
    We believe it is appropriate to initiate the second stage of 
standards in 2007, because we believe that applying these emission 
standards earlier would not allow manufacturers enough stability 
between introduction of different phases of emission standards to 
amortize their fixed costs and prepare for complying with the full set 
of requirements proposed in this notice. Three years of stable emission 
standards, plus the remaining lead time before 2004, allows 
manufacturers enough time to go through the development and 
certification effort to comply with the proposed standards. The 
proposed provisions to allow ``family banking'' for early compliance 
should provide an additional tool for companies that choose to spread 
out their design and certification efforts.
    The proposed emission standards would either have no impact or a 
positive impact with respect to noise, energy, and safety, as described 
in Chapter 4 of the Draft Regulatory Support Document. In particular, 
the anticipated fuel savings associated with the expected emission-
control technologies would provide a very big energy benefit related to 
new emission standards. The projected technologies are currently 
available and are consistent with those anticipated for complying with 
the emission standards adopted by California ARB. The lead time for the 
proposed interim and final emission standards allows manufacturers 
enough time to optimize these designs to most effectively reduce 
emissions from the wide range of Large SI equipment applications.

V. Recreational Marine Diesel Engines

    This section describes the new provisions proposed for 40 CFR part 
94, which would apply to engine manufacturers and other certificate 
holders. This section also discusses

[[Page 51135]]

proposed test equipment and procedures for anyone who tests engines to 
show they meet emission standards. We are proposing the same general 
compliance provisions from 40 CFR part 94 for engine manufacturers, 
equipment manufacturers, operators, rebuilders, and others. Similar 
general compliance provisions are described for the other engines 
included in this proposal in Section VII. See Section III for a 
description of our general approach to regulating nonroad engines and 
how manufacturers show that they meet emission standards.

A. Overview

    We are proposing exhaust and crankcase emission standards for 
recreational marine diesel engines with power ratings greater than or 
equal to 37 kW. We are proposing emission standards for hydrocarbons 
(HC), oxides of nitrogen ( NOX), carbon monoxide (CO), and 
particulate matter (PM) beginning in 2006. We believe manufacturers 
will be able to use technology developed for use on land-based nonroad 
and commercial marine diesel engines. To encourage the introduction of 
low-emission technology, we are also proposing voluntary ``Blue Sky'' 
standards which are 40 percent lower than the proposed standards. We 
also recognize that there are many small businesses that manufacture 
recreational marine diesel engines; we are therefore proposing several 
regulatory flexibility options for small businesses that should help 
minimize any unique burdens caused by emission regulation. A history of 
environmental regulation for marine engines is presented in Section I.
    We have determined there are at least 16 companies manufacturing 
marine diesel engines for recreational vessels. Six of the identified 
companies are considered small businesses as defined by the Small 
Business Administration (fewer than 1000 employees). Nearly 75 percent 
of diesel engines sales for recreational vessels in 2000 can be 
attributed to three large companies. Based on sales estimates for 2000, 
the six small businesses represent approximately 4 percent of 
recreational marine diesel engine sales. The remaining companies each 
comprise between two and seven percent of sales for 2000.
    Diesel engines are primarily available in inboard marine 
configurations, but may also be available in sterndrive and outboard 
marine configurations. Inboard diesel engines are the primary choice 
for many larger recreational boats.

B. Engines Covered by This Proposal

    The standards we are proposing in this section apply to 
recreational marine diesel engines. These engines were excluded from 
our final standards for commercial marine diesel engines finalized in 
1999 because we thought their operation in planing mode might impose 
design requirements on recreational boat builders (64 CFR 73300, 
December 29, 1999). Commercial marine vessels tend to be displacement-
hull vessels, designed and built for a unique commercial application 
(e.g., towing, fishing, general cargo). Power ratings for engines used 
on these vessels are analogous to land-based applications, and these 
engines are generally warranted for 2,000 to 5,000 hours of use. 
Recreational vessels, on the other hand, tend to be planing vessels, 
and engines used on these vessels are designed to achieve higher power 
output with less engine weight. This increase in power reduces the 
lifetime of the engine; recreational marine engines are therefore 
warranted for fewer hours of operation than their commercial 
counterparts. In our previous rulemaking, recreational engine industry 
representatives raised concerns about the ability of these engines to 
meet the standards without substantial changes in the size and weight 
of the engine. Such changes could have an impact on vessel builders, 
who might have to redesign vessel hulls to accommodate the new engines. 
Because most recreational vessel hulls are made on fiberglass molds, 
this could be a significant burden for recreational vessel builders.
    Since we finalized the commercial marine diesel engine standards, 
we determined that recreational marine diesel engines can achieve those 
same emission standards without significant impacts on engine size and 
weight. Section V.G of this document and Chapters 3 and 4 of the Draft 
Regulatory Support Document describe the several technological changes 
we anticipate manufacturers will use to comply with the new emission 
standards. None of these technologies has an inherent negative effect 
on the performance or power density of an engine. As with engines in 
land-based applications, we expect that manufacturers will be able to 
use the range of technologies available to maintain or even improve the 
performance capabilities of their engines. We are nevertheless 
proposing to establish a separate program for recreational marine 
diesel engines in this rule. This will allow us to tailor certain 
aspects of the program to these applications, notably the not-to-exceed 
requirements. We seek comment on whether this approach is appropriate 
or if we should remove the distinction and apply identical emission-
control requirements to both commercial and recreational marine diesel 
engines.
    To distinguish between commercial and recreational marine diesel 
engines for the purpose of emission controls, it is necessary to define 
``recreational marine diesel engine.'' According to the definition we 
finalized in our commercial marine diesel engine rule, recreational 
marine engine means a propulsion marine engine that is intended by the 
manufacturer to be installed on a recreational vessel. The engine must 
be labeled to distinguish it from a commercial marine diesel engine. 
The label must read: ``THIS ENGINE IS CATEGORIZED AS A RECREATIONAL 
ENGINE UNDER 40 CFR PART 94. INSTALLATION OF THIS ENGINE IN ANY 
NONRECREATIONAL VESSEL IS A VIOLATION OF FEDERAL LAW SUBJECT TO 
PENALTY.''
    We are also including in the proposed definition that a 
recreational marine engine must be a Category 1 marine engine (have a 
displacement of less than 5 liters per cylinder). One manufacturer 
commented after the ANPRM that only engines less than 2.5 liters per 
cylinder in displacement should be considered recreational. We request 
comment on this size cut-off and we request comment on allowing 
manufacturers flexibility in defining the upper limit of their 
recreational product line provided that it is between 2.5 and 5 liters 
per cylinder.
    For the purpose of the recreational marine diesel engine 
definition, recreational vessel was defined as ``a vessel that is 
intended by the vessel manufacturer to be operated primarily for 
pleasure or leased, rented, or chartered to another for the latter's 
pleasure.'' To put some boundaries on that definition, since certain 
vessels that are used for pleasure may have operating characteristics 
that are more similar to commercial marine vessels (e.g., excursion 
vessels and charter craft), we drew on the Coast Guard's definition of 
a ``small passenger vessel'' (46 U.S.C 2101(35)) to further delineate 
what would be considered to be a recreational vessel. Specifically, the 
term ``operated primarily for pleasure or leased, rented or chartered 
to another for the latter's pleasure'' would not include the following 
vessels: (1) Vessels of less than 100 gross tons that carry more than 6 
passengers; (2) vessels of 100 gross tons or more than carry one or 
more passengers; or (3) vessels used solely for competition. For the 
purposes

[[Page 51136]]

of this definition, a passenger is defined by 46 U.S.C 2101 (21, 21a) 
which generally means an individual who pays to be on the vessel.
    We received several comments in response to the ANPRM on these 
definitions. Engine manufacturers were concerned that the definitions 
may be unworkable for engine manufacturers, since they cannot know 
whether a particular recreational vessel might carry more than six 
passengers at a time. All they can know is whether the engine they 
manufacture is intended by them for installation on a vessel designed 
for pleasure and having the planing, power density and performance 
requirements that go along with that use.
    We responded to similar concerns in the Summary and Analysis of 
Comments for the commercial marine diesel engine rule, explaining that 
a vessel would be considered a recreational vessel if the boat builder 
intends that the customer will operate the boat consistent with the 
recreational-vessel definition.\132\ Relying on the boat builder's 
intent is necessary since manufacturers need to establish a vessel's 
classification before it is sold, whereas the Coast Guard definitions 
apply at the time of use. The definition therefore relies on the intent 
of the boat builder to establish that the vessel will be used 
consistent with the above criteria. If a boat builder manufactures a 
vessel for a customer who intends to use the vessel for recreational 
purposes, we would always consider that a recreational vessel 
regardless of how the owner (or a subsequent owner) actually uses it.
---------------------------------------------------------------------------

    \132\ Summary and Analysis of Comments: Control of Emissions 
from Marine Diesel Engines. EPA420-R-99-028, November 1999, Docket 
A-97-50, document V-C-1.
---------------------------------------------------------------------------

    We are proposing to retain our existing definition of recreational 
marine vessel. We request comment on all aspects of this definition. We 
are also requesting comment on how to verify the validity of the vessel 
manufacturer's original intent. One option, as noted in the Summary and 
Analysis of Comments for the previous rule, would be written assurance 
from the buyer.
    We are also requesting comment on two alternative approaches for 
the definition of recreational marine vessel that were suggested by 
ANPRM commenters. The first recommends that we follow the definition in 
46 U.S.C. 2101(25), which defines a recreational vessel as one ``being 
manufactured or operated primarily for pleasure, or leased, rented, or 
chartered to another for the latter's pleasure.''\133\ The second 
recommends that we define recreational vessel as one (1) which by 
design and construction is intended by the manufacturer to be operated 
primarily for pleasure, or to be leased, rented, or chartered to 
another for the latter's pleasure; and (2) whose major structural 
components are fabricated and assembled in an indoor production-line 
manufacturing plant or similar land-side operation and not in a dry 
dock, graving dock, or marine railway on the navigable waters of the 
United States.\134\ We request comment on whether either of these 
definitions is preferable to the existing definition and, more 
specifically, on whether either of these alternative definitions would 
be sufficient to ensure that recreational marine diesel engines are 
installed on vessels that will be used only for recreational purposes.
---------------------------------------------------------------------------

    \133\ Statement of the Engine Manufacturers Association, Docket 
A-2000-01, Document No. II-D-33.
    \134\ Comments of the National Marine Manufacturers Association, 
Docket A-2000-01, Document II-D-27.
---------------------------------------------------------------------------

C. Proposed Standards for Marine Diesel Engines

    We are proposing technology-forcing emission standards for new 
recreational marine diesel engines with rated power greater than or 
equal to 37 kW. This section describes the proposed standards and 
implementation dates and gives an outline of the technology that can be 
used to achieve these levels. We request comment on these standards and 
dates. In particular, commenters should address whether the dates 
provide sufficient lead time. The technological feasibility discussion 
below (Section V.G) describes our technical rationale in more detail.
1. What Are the Proposed Standards and Compliance Dates?
    To propose emission standards for recreational marine diesel 
engines, we first considered the Tier 2 standards for commercial marine 
diesel engines. Recreational marine diesel engines can use all the 
technologies projected for Tier 2 and many of these engines already use 
this technology. This includes electronic fuel management, 
turbocharging, and separate-circuit aftercooling. In fact, because 
recreational engines have much shorter design lives than commercial 
engines, it is easier to apply raw-water aftercooling to these engines, 
which allows manufacturers to enhance performance while reducing 
NOX emissions.
    Engine manufacturers will generally increase the fueling rate in 
recreational engines, compared to commercial engines, to gain power 
from a given engine size. This helps bring a planing vessel onto the 
water surface and increases the maximum vessel speed without increasing 
the weight of the vessel. This difference in how recreational engines 
are designed and used affects emissions.
    We are proposing to implement the commercial marine engine 
standards for recreational marine diesel engines, allowing two years 
beyond the dates that standards apply for the commercial engines. This 
would provide engine manufacturers with additional lead time in 
adapting technology to their recreational marine diesel engines. The 
proposed standards and implementation dates for recreational marine 
diesel engines are presented in Table V.C-1. The subcategories refer to 
engine displacement in liters per cylinder.

            Table V.C-1.--Proposed Recreational CI Marine Emission Standards and Implementation Dates
----------------------------------------------------------------------------------------------------------------
                                                               HC+NOX  g/                             Implemen-
                         Subcategory                             kW-hr     PM  g/kW-hr  CO  g/kW-hr  tation date
----------------------------------------------------------------------------------------------------------------
power  37 kW.....................................          7.5         0.40          5.0         2007
0.5  disp  0.9
0.9  disp  1.2...................................          7.2         0.30          5.0         2006
1.2  disp  2.5...................................          7.2         0.20          5.0         2006
disp  2.5........................................          7.2         0.20          5.0         2009
----------------------------------------------------------------------------------------------------------------


[[Page 51137]]

2. Will I Be Able To Average, Bank, or Trade Emissions Credits?
    Section III.C.3 gives an overview of the proposed emission-credit 
program, which is consistent with what we adopted for Category 1 
commercial marine diesel engines. We are proposing that the emission-
credit program be limited to HC+NOX and PM emissions.
    Consistent with our land-based nonroad and commercial marine diesel 
engine regulations, we are proposing to disallow simultaneous 
generation of HC+NOX credits and use of PM credits on the 
same engine family, and vice versa. This is necessary because of the 
inherent trade-off between NOX and PM emissions in diesel 
engines. We request comment on whether an engine should be allowed to 
generate credits on one pollutant while using credits on another, and 
whether allowing such an additional flexibility would necessitate a 
reconsideration of the stringency of the proposed emission limits.
    We are proposing the same maximum value of the Family Emission 
Limit (FEL) as for commercial marine diesel engines. For engines with a 
displacement of less than 1.2 liters/cylinder, the maximum values are 
11.5 g/kW-hr HC+NOX and 1.2 g/kW-hr PM; for larger engines, 
the maximum values are 10.5 g/kW-hr HC+NOX and 0.54 g/kW-hr 
PM. These maximum FEL values were based on the comparable land-based 
emission-credit program and will ensure that the emissions from any 
given family certified under this program not be significantly higher 
than the applicable emission standards. We believe these proposed 
maximum values will prevent backsliding of emissions above the baseline 
levels for any given engine model. Also, we are concerned that the 
higher emitting engines could result in emission increases in areas 
such as ports that may have a need for PM or NOX emission 
reductions. Balancing this concern is the fact that recreational marine 
diesel engines constitute a small fraction of PM and HC+NOX 
emissions in nonattainment areas. Thus, if a few engine families have 
higher emissions then our proposed FEL cap, the incremental emissions 
in these areas may not be significant. Also, if we do not promulgate 
FEL caps for this category, manufacturers will need to offset high 
emitting engines with low-emitting engines to meet the average 
standard. We are interested in comments on these issues, on the degree 
to which FEL caps would hinder manufacturer flexibility and impose 
costs, and the environmental impact of FEL caps. We ask commenters to 
address whether we should promulgate FEL caps.
    As an alternative, we are requesting comment on whether we should 
consider using the MARPOL Annex VI NOX standard as the 
appropriate NOX FEL upper limit. Under this approach we 
would continue to use the land-based Tier 1 PM standard as the 
recreational marine diesel engine FEL upper limit. As part of this 
approach we would have to accommodate the fact that the MARPOL Annex VI 
standard is for NOX only and these proposed standards are 
HC+NOX. We further request comment under this approach as to 
how best to deal with this inconsistency.
    We are proposing that emission credits generated under this program 
have no expiration, with no discounting applied. This is consistent 
with the commercial marine credit program and gives manufacturers 
greater flexibility in implementing their engine designs. However, if 
we were to revisit the standards proposed today at a later date, we 
would have to reevaluate this issue in the context of spillover of 
credits in the new program.
    Consistent with the land-based nonroad diesel rule, we are also 
proposing to disallow using credits generated on land-based engines for 
demonstrating compliance with marine diesel engines. In addition, we 
propose that credits may not be exchanged between recreational and 
commercial marine engines. We are concerned that manufacturers 
producing land-based and/or commercial marine engines in addition to 
recreational marine engines could effectively trade out of the 
recreational marine portion of the program, thereby potentially 
obtaining a competitive advantage over small companies selling only 
recreational marine engines. In addition, there are two differences in 
the way that land-based, commercial marine, and recreational marine 
credits are calculated that make the credits somewhat incompatible. The 
first is that the difference in test duty cycles means there is an 
difference in calculated load factors for each of these categories of 
engines. The second is that there are significant differences in the 
useful lives. EPA seeks comment on the need for these restrictions and 
on the degree to which imposing them may create barriers to low-cost 
emission reductions.
    We are proposing to allow early banking of emission credits once 
this rule is finalized. We believe that early banking of emission 
credits will allow for a smoother implementation of the recreational 
marine standards. These credits are generated relative to the proposed 
standards and are undiscounted. We are aware that there are already 
some marine diesel engines that meet the proposed standards, and we are 
concerned about windfall credits from engines that generate early 
credits without any modifications to reduce emissions. We request 
comment on whether or not these engines should be able to generate 
credits.
    We also propose that manufacturers have the option of generating 
credits relative to their pre-control emission levels. If manufacturers 
choose this option they will have to develop engine family-specific 
baseline emission levels. Credits will then be calculated relative to 
the manufacturer-generated baseline emission rates, rather than the 
standards. To generate the baseline emission rates, a manufacturer must 
test three engines from the family for which the baseline is being 
generated. The baseline will be the average emissions of the three 
engines. Under this option, engines must still meet the proposed 
standards to generate credits, but the credits will be calculated 
relative to the generated baseline rather than the standards. However, 
any credits generated between the level of the standards and the 
generated baseline will be discounted 10 percent. This is to account 
for the variability of testing in-use engines to establish the family-
specific baseline levels, which may result from differences in hours of 
use and maintenance practices. We request comment on all aspects of the 
proposed emission-credit program.
    One engine manufacturer commented after the ANPRM that all their 
recreational engine product lines fall into the per-cylinder 
displacement range with the proposed implementation date of 2006. This 
manufacturer expressed concern that it would be burdensome to introduce 
all their product lines at one time and presented the idea of phasing 
in their product lines from 2005 through 2007 instead. An alternative 
to early banking or a revised phase-in would be ``family-banking.'' 
Under the ``family-banking'' concept, we would allow manufacturers to 
certify an engine family early. For each year of certifying an engine 
family early, the manufacturer would be able to delay certification of 
a smaller engine family by one year. This would be based on the actual 
sales of the early family and the projected sales volumes of the late 
family; this would require no calculation or accounting of emission 
credits. We request comment on this approach or any other approach that 
would help manufacturers bring the product lines into compliance to the 
proposed standards without

[[Page 51138]]

compromising emissions reductions (see Sec. 1048.145 of the proposed 
regulations).
3. Is EPA Proposing Voluntary Standards for These Engines?
    a. Blue Sky. Section III.B.5 gives an overview of Blue Sky 
voluntary standards. We are proposing to target about a 45-percent 
reduction beyond the mandatory standards as a qualifying level for Blue 
Sky Series engines to match the voluntary standards already adopted for 
commercial marine diesel engines (see Table V.C-2). While the Blue Sky 
Series emission standards are voluntary, a manufacturer choosing to 
certify an engine under this program must comply with all the 
requirements proposed for this category of engines, including allowable 
maintenance, warranty, useful life, rebuild, and deterioration factor 
provisions. This program would become effective immediately once we 
finalize this rule. We request comment on the Blue Sky Series approach 
as it would apply to recreational marine diesel engines.

  Table V.C.-2.--Blue Sky Voluntary Emission Standards for Recreational
                          Marine Diesel Engines
                                [g/kW-hr]
------------------------------------------------------------------------
                 Rated Brake Power  (kW)                   HC+NOX    PM
------------------------------------------------------------------------
power  37 kW..................................    4.0    0.24
displ.0.9
0.9displ.1.2..................................    4.0    0.18
1.2displ.2.5..................................    4.0    0.12
2.5displ......................................    5.0    0.12
------------------------------------------------------------------------

    b. MARPOL Annex VI. The MARPOL Annex VI standards are discussed 
above in Section I.F.3 for marine diesel engines rated above 130 kW. We 
are not proposing to adopt the MARPOL Annex VI NOX emission 
limits as Clean Air Act standards at this time. However, we encourage 
engine manufacturers to make Annex VI-compliant engines available and 
boat builders to purchase and install them prior to the implementation 
of our proposed standards. If the international standards are ratified 
in the U.S., they would go into effect retroactively to all boats built 
January 1, 2000 or later. One advantage of using MARPOL-compliant 
engines is that if this happens, users will be in compliance with the 
standard without having to make any changes to their engines.
    To encourage boat manufacturers to purchase MARPOL Annex VI-
compliant engines prior to the date the Annex goes into force for the 
United States, we are proposing a voluntary certification program that 
will allow engine manufacturers to obtain a Statement of Voluntary 
Compliance to the MARPOL Annex VI NOX limits. This voluntary 
approach to the MARPOL Annex VI emission limits depends on the 
assumption that manufacturers will produce MARPOL-compliant engines 
before the emission limits go into effect internationally. Engine 
manufacturers can use this voluntary certification program to obtain a 
Statement of Voluntary Compliance to the MARPOL NOX 
limits.\135\
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    \135\ For more information about our voluntary certification 
program, see ``guidance for Certifying to MARPOL Annex VI,'' VPCD-
99-02. This letter is available on our website: http://www.epa.gov/otaq/regs/nonroad/marine/ci/imolettr.pdf.
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    We request comment on whether or not we should apply the MARPOL 
Annex VI standards as a first Tier to this proposed regulation. We also 
request comment on reasons for whether or not the MARPOL Annex VI 
standards should apply to recreational marine at all.
4. What Durability Provisions Apply?
    There are several related provisions that would be needed to ensure 
that emission control would be maintained throughout the life of the 
engine. Section III gives a general overview of durability provisions 
associated with emissions certification. This section discusses these 
proposed provisions specifically for recreational marine diesel 
engines.
    a. How long would my engine have to comply? We propose to require 
that manufacturers produce engines that comply over the full useful 
life of ten years or until the engine accumulates 1,000 operating 
hours, whichever occurs first. We would consider the hours requirement 
to be a minimum value for useful life, and would require manufacturers 
to comply for a longer period in those cases where they design their 
engines to be operated longer than 1,000 hours. In making the 
determination that engines are designed to last longer than the 
proposed hour limit, we would look for evidence that the engines 
continue to reliably deliver the necessary power output without an 
unacceptable increase in fuel consumption.
    b. How would I demonstrate emission durability? We are proposing 
the same durability demonstration requirements for recreational marine 
diesel engines as already exist for commercial marine diesel engines. 
This means that recreational marine engine manufacturers, using good 
engineering judgment, would generally need to test one or more engines 
for emissions before and after accumulating 1,000 operating hours 
(usually performed by continuous engine operation in a laboratory). The 
results of these tests are referred to as ``durability data,'' and are 
used to determine the rates at which emissions are expected to increase 
over the useful life of the engine for each engine family (the rates 
are known as deterioration factors). However, in many cases, 
manufacturers would be allowed to use durability data from a different 
engine family, or for the same engine family in a different model year. 
Because of this allowance to use the same data for multiple engine 
families, we expect durability testing to be very limited.
    We are also proposing the same provisions from the commercial 
marine rulemaking for how durability data are to be collected and how 
deterioration factors are to be generated. These requirements are in 40 
CFR 94.211, 94.218, 94.219, and 94.220. These sections describe when 
durability data from one engine family can be used for another family, 
how to select to the engine configuration that is to be tested, how to 
conduct the service accumulation, and what maintenance can be performed 
on the engine during this service accumulation.
    c. What maintenance would be allowed during service accumulation? 
For engines certified to a 1,000-hour useful life, the only maintenance 
that would be allowed is regularly scheduled maintenance unrelated to 
emissions that is technologically necessary. This could typically 
include changing engine oil, oil filter, fuel filter, and air filter. 
We request comment on the allowable maintenance during service 
accumulation.
    d. Would production-line testing be required? We are proposing to 
apply the production-line testing requirements for commercial marine 
engines to recreational marine diesel engines, with the additional 
provisions described in Section III.C.4. A manufacturer would have to 
test one percent of its total projected annual sales of Category 1 
engines each year to meet production-line testing requirements. We are 
proposing that manufacturers combine recreational and commercial engine 
families in calculating their sample sizes for production-line testing. 
We are not proposing a minimum number of tests, so a manufacturer could 
produce up to 100 marine diesel engines without doing any production-
line testing.
5. Do These Standards Apply to Alternative-Fueled Engines?
    These proposed standards apply to all recreational marine diesel 
engines,

[[Page 51139]]

without regard to the type of fuel used. While we are not aware of any 
alternative-fueled recreational marine engines that are currently being 
sold into the U.S. market, we are proposing alternate forms of the 
hydrocarbon standards to address the potential for natural gas-fueled 
and alcohol-fueled engines. In our regulation of highway vehicles and 
engines, we determined it is not appropriate to apply total hydrocarbon 
standards to engines fueled with natural gas (which is comprised 
primarily of methane), but rather that nonmethane hydrocarbon (NMHC) 
standards should be used (59 FR 48472, September 21, 1994). These 
alternate forms follow the precedent set in previous rulemakings to 
make the standards similar in stringency and environmental impact.
    Similarly, we determined that alcohol-fueled highway engines and 
vehicles should be subject to HC-equivalent (HCE) standards instead of 
HC standards (54 FR 14426, April 11, 1989). HC-equivalent emissions are 
calculated from the oxygenated organic components and non-oxygenated 
organic components of the exhaust, summed together based on the amount 
of organic carbon present in the exhaust. Thus, we are proposing that 
alcohol-fueled recreational marine engines comply with total 
hydrocarbon equivalent (THCE) plus NOX standards instead of 
THC plus NOX standards.
6. Is EPA Controlling Crankcase Emissions?
    We are proposing to require manufacturers to prevent crankcase 
emissions from recreational marine diesel engines, with one exception. 
We are proposing to allow turbocharged recreational marine diesel 
engines to be built with open crankcases, as long as the crankcase 
ventilation system allows measurement of crankcase emissions. For these 
engines with open crankcases, we will require crankcase emissions to be 
either routed into the exhaust stream to be included in the exhaust 
measurement, or to be measured separately and added to the measured 
exhaust mass. These measurement requirements would not add 
significantly to the cost of testing, especially where the crankcase 
vent is simply routed into the exhaust stream prior to the point of 
exhaust sampling. This proposal is consistent with our previous 
regulation of crankcase emissions from such diverse sources as 
commercial marine engines, locomotives, and passenger cars.
7. What Are the Smoke Requirements?
    We are not proposing smoke requirements for recreational marine 
diesel engines. Marine diesel engine manufacturers have stated that 
many of their engines, though currently unregulated, are manufactured 
with smoke limiting controls at the request of customers. Users seek 
low smoke emissions both because they dislike the exhaust residue on 
decks and because they can be subject to penalties in ports with smoke 
emission requirements. In many cases, marine engine exhaust gases are 
mixed with water prior to being released. This practice reduces smoke 
visibility. Moreover, we believe the PM standards proposed here for 
diesel engines will have the effect of limiting smoke emissions as 
well. We request comment on this position and, specifically, on whether 
there is a need at this time for additional control of smoke emissions 
from recreational marine diesel engines, and if so, what the 
appropriate limits should be.
    We also request comment on an appropriate test procedure for 
measuring smoke emissions, in case we choose to pursue smoke limits. 
There is currently no established test procedure for a marine engine to 
measure compliance with a smoke limit. Most propulsion marine engines 
operate over a torque curve governed by the propellor. Consequently, a 
vessel with an engine operating at a given speed will have a narrow 
range of torque levels. Some large propulsion marine engines have 
variable-pitch propellers, in which case the engine operates much like 
constant-speed engines. Note that the International Organization for 
Standardization (ISO) is working on a proposed test procedure for 
marine diesel engines.\136\ As this procedure is finalized by ISO and 
emission data become available, we may review the issue of smoke 
requirements for all marine diesel engines. We request comment on this 
overall approach to smoke emissions from marine diesel engines, as well 
as comment on the draft ISO procedures.
---------------------------------------------------------------------------

    \136\ International Standards Organization, 8178-4, 
``Reciprocating internal combustion engines--Exhaust emission 
measurement--Part 4: Test cycles for different engine 
applications,'' Docket A-2000-01, Document II-A-19.
---------------------------------------------------------------------------

8. What Are the Proposed Not-To-Exceed Standards and Related 
Requirements?
    We are proposing not-to-exceed requirements similar to those 
finalized for commercial marine diesel engines. At the time of 
certification, manufacture would have to submit a statement that its 
engines will comply with these requirements under all conditions that 
may reasonably be expected to occur in normal vessel operation and use. 
The manufacturer would provide a detailed description of all testing, 
engineering analysis, and other information that forms the basis for 
the statement. This certification could be based on testing or on other 
research which could be used to support such a statement that is 
consistent with good engineering judgment. We request comment on 
applying the proposed NTE requirements to recreational marine diesel 
engines and on the application of the requirements to these engines.
    a. Concept. Our goal is to achieve control of emissions over the 
broad range of in-use speed and load combinations that can occur on a 
recreational marine diesel engine so that real-world emission control 
is achieved, rather than just controlling emissions under certain 
laboratory conditions. An important tool for achieving this goal is an 
in-use program with an objective standard and an easily implemented 
test procedure. Prior to this concept, our approach has been to set a 
numerical standard on a specified test procedure and rely on the 
additional prohibition of defeat devices to ensure in-use control over 
a broad range of operation not included in the test procedure.
    We are proposing to apply the defeat device provisions established 
for commercial marine engines to recreational marine diesel engines in 
addition to the NTE requirements (see 40 CFR 94.2). A design in which 
an engine met the standard at the steady-state test points but was 
intentionally designed to approach the NTE limit everywhere else would 
be considered to be defeating the standard. Electronic controls that 
recognize when the engine is being tested for emissions and adjust the 
emissions from the engine would be an example of a defeat device, 
regardless of the emissions performance of the engine.
    No single test procedure can cover all real-world applications, 
operations, or conditions. Yet to ensure that emission standards are 
providing the intended benefits in use, we must have a reasonable 
expectation that emissions under real-world conditions reflect those 
measured on the test procedure. The defeat-device prohibition is 
designed to ensure that emission controls are employed during real-
world operation, not just under laboratory or test-procedure 
conditions. However, the defeat-device prohibition is not a quantified 
standard and does not have an associated test procedure, so it does not 
have the clear objectivity and ready

[[Page 51140]]

enforceability of a numerical standard and test procedure. As a result, 
using a standardized test procedure alone makes it harder to ensure 
that engines will operate with the same level of control in the real 
world as in the test cell.
    Because the ISO E5 duty cycle uses only five modes on an average 
propeller curve to characterize marine engine operation, we are 
concerned that an engine designed to the duty cycle would not 
necessarily perform the same way over the range of speed and load 
combinations seen on a boat. These duty cycles are based on average 
propeller curves, but a propulsion marine engine may never be fitted 
with an ``average propeller.'' For instance, an engine fit to a 
specific boat may operate differently based on how heavily the boat is 
loaded.
    To ensure that emissions are controlled from recreational marine 
engines over the full range of speed and load combinations seen on 
boats, we propose to establish a zone under the engine's power curve 
where the engine may not exceed a specified emission limit. This limit 
would apply to all of the regulated pollutants under steady-state 
operation. In addition, we propose that the whole range of real ambient 
conditions be included in this ``not-to-exceed'' (NTE) zone testing. 
The NTE zone, limit, and ambient conditions are described below.
    We believe there are significant advantages to taking this 
approach. The test procedure is very flexible so it can represent the 
majority of in-use engine operation and ambient conditions. Therefore, 
the NTE approach takes all of the benefits of a numerical standard and 
test procedure and expands it to cover a broad range of conditions. 
Also, laboratory testing makes it harder to perform in-use testing 
because either the engines would have to be removed from the vessel or 
care would have to be taken that laboratory-type conditions can be 
achieved on the vessel. With the NTE approach, in-use testing and 
compliance become much easier since emissions may be sampled during 
normal vessel use. Because this approach is objective, it makes 
enforcement easier and provides more certainty to the industry of what 
is expected in use versus over a fixed laboratory test procedure.
    Even with the NTE requirements, we believe it is still important to 
retain standards based on the steady-state duty cycles. This is the 
standard that we expect the certified marine engines to meet on average 
in use. The NTE testing is more focused on maximum emissions for 
segments of operation and should not require additional technology 
beyond what is used to meet the proposed standards. We believe basing 
the emission standards on a distinct cycle and using the NTE zone to 
ensure in-use control creates a comprehensive program. In addition, the 
steady-state duty cycles give a basis for calculating credits for 
averaging, banking, and trading.
    b. Shape of the NTE zone. Figure V-C-1 illustrates our proposed NTE 
zone for recreational marine diesel engines. We based this zone on the 
range of conditions that these engines could typically see in use. 
Also, we propose to divide the zone into subzones of operation which 
have different limits as described below. Chapter 4 of the Draft 
Regulatory Support Document describes the development of the boundaries 
and conditions associated with the proposed NTE zone. We request 
comment on the proposed NTE zone.
BILLING CODE 6560-50-P
[GRAPHIC] [TIFF OMITTED] TP05OC01.000

BILLING CODE 6560-50-C
    We propose to allow manufacturers to petition to adjust the size 
and shape of the NTE zone for certain engines if they can certify that 
the engine will not see operation outside of the revised NTE zone in 
use. This way, manufacturers could avoid having to test their engines 
under operation that they would never see in use. However, 
manufacturers would still be responsible for all operation of an engine 
on a vessel that

[[Page 51141]]

would reasonably be expected to be seen in use and would be responsible 
for ensuring that their specified operation is indicative of real-world 
operation. In addition, if a manufacturer designs an engine for 
operation at speeds and loads outside of the proposed NTE zone (i.e., 
variable-speed engines used with variable-pitch propellers), the 
manufacturer would be responsible for notifying us so their NTE zone 
can be modified appropriately to include this operation.
    c. Transient operation. We are proposing that only steady-state 
operation be included in the NTE testing. We are basing the test for 
determining certification emissions levels on the ISO E5 steady-state 
duty cycles. The goal of the NTE, for this proposal, is to cover the 
operation away from the five modes on the assumed propeller curve. Our 
understanding is that the majority of marine engine operation is 
steady-state; however, we recognize that recreational marine use would 
likely be more transient than commercial marine use. At this time we do 
not have enough data on marine engine operation to accurately determine 
the amount of transient operation that occurs. We are aware that the 
high-load transient operation seen when a boat comes to plane would not 
be included in the NTE zone as defined, even if we would require 
compliance with NTE standards during transient operation. We are also 
aware that these speed and load points could not be achieved under 
steady-state operation for a properly loaded boat in use.
    Our proposal to exclude transient operation from NTE testing is 
consistent with the commercial marine diesel requirements. Also, the 
proposed standards are technology-forcing and are for a previously 
unregulated industry. We believe excluding transient operation will 
simplify the requirements on this industry while still maintaining 
proportional emission reductions due to the technology-forcing nature 
of this proposal. We intend to study marine operation to understand 
better the effects of transient operation on emissions. If we find that 
excluding transient operation from the compliance requirements results 
in a significant increase in emissions, we will revisit this provision 
in the future. We request comment on the appropriateness of excluding 
transient operation from NTE requirements.
    d. Emission standards. We are proposing emission standards for an 
NTE zone representing a multiplier times the weighted test result used 
for certification. Because an emission level is an average of various 
points over a test procedure, a multiplier of is inconsistent with the 
idea of a Federal Test Procedure standard as an average. This is 
consistent with the concept of a weighted modal emission test, such as 
the steady-state tests included in this proposal.
    Consistent with the requirements for commercial marine engines, we 
propose that recreational marine diesel engines must meet a cap of 1.5 
times the certified level for HC+NOX, PM, and CO for the 
speed and power subzone below 45 percent of rated power and a cap of 
1.2 times the certified levels at or above 45 percent of rated power. 
However, we are proposing an additional subzone, when compared to the 
commercial NTE zone, at speeds greater than 95 percent of rated. We are 
proposing a cap of 1.5 times the certified levels for this subzone. 
This additional subzone addresses the typical recreational design for 
higher rated power. We understand that this power is needed to ensure 
that the engine can bring the boat to plane.
    We are aware that marine diesel engines may not be able to meet the 
emissions limit under all conditions. Specifically, there are times 
when emission control must be compromised for startability or safety. 
We are not proposing that engine starting be included in the NTE 
testing. In addition, manufacturers would have the option of 
petitioning the Administrator to allow emissions to increase under 
engine protection strategies such as when an engine overheats. This is 
also consistent with the requirements for commercial marine engines.
    e. Ambient conditions. Variations in ambient conditions can affect 
emissions. Such conditions include air temperature, humidity, and 
(especially for aftercooled engines) water temperature. We are 
proposing to apply the commercial marine engine ranges for these 
variables. Chapter 4 of the Draft Regulatory Support Document provides 
more detail on how we determined these ranges. Within the ranges, there 
is no calculation to correct measured emissions to standard conditions. 
Outside of the ranges, emissions can be corrected back to the nearest 
end of the range. The proposed ambient variable ranges are 13 to 
35 deg.C (55 to 95 deg.F) for intake air temperature, 7.1 to 10.7 g 
water/kg dry air (50 to 75 grains/pound dry air) for intake air 
humidity, and 5 to 27 deg.C (41 to 80 deg.F) for ambient water 
temperature.

D. Proposed Testing Requirements

    40 CFR part 94 details specifications for test equipment and 
procedures that apply generally to commercial marine engines. We 
propose to base the recreational marine diesel engine test procedures 
on this part. Section VIII gives a general discussion of the proposed 
testing requirements; this section describes procedures that are 
specific to recreational marine such as the duty cycle for operating 
engines for emission measurements. Chapter 4 of the Draft Technical 
Support Document describes these duty cycles in greater detail.
1. Which Duty Cycles Are Used To Measure Emissions?
    For recreational marine diesel engines, we are proposing to use the 
ISO E5 duty cycle. This is a 5-mode steady state cycle, including an 
idle mode and four modes lying on a cubic propeller curve. ISO intends 
for this cycle to be used for all engines in boats less than 24 meters 
in length. We propose to apply it to all recreational marine diesel 
engines to avoid the complexity of tying emission standards to boat 
characteristics. A given engine may be used in boats longer and shorter 
than 24 meters; engine manufacturers generally will not know the size 
of the boat into which an engine will be installed. Also, we expect 
that most recreational boats will be under 24 meters in length. Chapter 
4 of the Draft Regulatory Support Document provides further detail on 
the ISO E5 duty cycle. We request comment on the appropriateness of 
this duty cycle.
2. What Fuels Will Be Used During Emission Testing?
    We are proposing to use the same specifications for recreational 
marine diesel engines as we have used previously for commercial marine 
diesel engines. That means that the recreational engines will use the 
same test fuel that is required for testing Category 1 commercial 
marine diesel engines, which is a standard nonroad test fuel with 
moderate sulfur content. We are not aware of any difference in fuel 
specifications for recreational and commercial marine engines of 
comparable size.
3. How Would In-Use Testing Be Performed?
    We have the authority to perform in-use testing on marine engines 
to ensure compliance in use. This testing may include taking in-use 
marine engines out of the vessel and testing them in a laboratory, as 
well as field testing of in use engines on the boat, in a marine 
environment. We request comments on the proposed in-use testing 
provisions described below.
    We propose to use field-testing data in two ways. First, we would 
use it as a

[[Page 51142]]

screening tool, with follow-up laboratory testing over the ISO E5 duty 
cycle where appropriate. Second, we would use the data directly as a 
basis for compliance determinations provided that field testing 
equipment and procedures are capable of providing reliable information 
from which conclusions can be drawn regarding what emission levels 
would be in laboratory-based measurements.
    For marine engines that expel exhaust gases underwater or mix their 
exhaust with water, we propose to require manufacturers to equip 
engines with an exhaust sample port where a probe can be inserted for 
in-use exhaust emission testing. It is important that the location of 
this port allow a well-mixed and representative sample of the exhaust. 
The purpose of this proposed provision is to simplify in-use testing.
    One of the advantages of the not-to-exceed requirements will be to 
facilitate in-use testing. This will allow us to perform compliance 
testing in the field. As long as the engine is operating under steady-
state conditions in the NTE zone, we will be able to measure emissions 
and compare them to the NTE limits.

E. Special Compliance Provisions

    The provisions discussed here are designed to minimize regulatory 
burdens on manufacturers needing added flexibility to comply with the 
proposed engine standards. These manufacturers include engine dressers, 
small-volume engine marinizers, and small-volume boat builders.
1. What Are the Proposed Burden Reduction Approaches for Engine 
Dressers?
    Many recreational marine diesel engine manufacturers take a new, 
land-based engine and modify it for installation on a marine vessel. 
Some of the companies that modify an engine for installation on a boat 
make no changes that would affect emissions. Instead, the modifications 
may consist of adding mounting hardware and a generator or reduction 
gears for propulsion. It can also involve installing a new marine 
cooling system that meets original manufacturer specifications and 
duplicates the cooling characteristics of the land-based engine, but 
with a different cooling medium (i.e., water). In many ways, these 
manufacturers are similar to nonroad equipment manufacturers that 
purchase certified land-based nonroad engines to make auxiliary 
engines. This simplified approach of producing an engine can more 
accurately be described as dressing an engine for a particular 
application. Because the modified land-based engines are subsequently 
used on a marine vessel, however, these modified engines will be 
considered marine diesel engines, which then fall under these proposed 
requirements.
    To clarify the responsibilities of engine dressers under this rule, 
we propose to exempt them from the requirement to certify engines to 
the proposed emission standards, as long as they meet the following 
seven proposed conditions.
    (1) The engine being dressed (the ``base'' engine) must be a 
highway, land-based nonroad, or locomotive engine, certified pursuant 
to 40 CFR part 86, 89, or 92, respectively, or a marine diesel engine 
certified pursuant to this part.
    (2) The base engine's emissions, for all pollutants, must be at 
least as good as the otherwise applicable recreational marine emission 
limits. In other words, starting in 2005, a dressed nonroad Tier 1 
engine will not qualify for this exemption, because the more stringent 
standards for recreational marine diesel engines go into effect at that 
time.
    (3) The dressing process must not involve any modifications that 
can change engine emissions. We would not consider changes to the fuel 
system to be engine dressing because this equipment is integral to the 
combustion characteristics of an engine.
    (4) All components added to the engine, including cooling systems, 
must comply with the specifications provided by the engine 
manufacturer.
    (5) The original emissions-related label must remain clearly 
visible on the engine.
    (6) The engine dresser must notify purchasers that the marine 
engine is a dressed highway, nonroad, or locomotive engine and is 
exempt from the requirements of 40 CFR part 94.
    (7) The engine dresser must report annually to us the models that 
are exempt pursuant to this provision and such other information as we 
deem necessary to ensure appropriate use of the exemption.
    We propose that any engine dresser not meeting all these conditions 
be considered an engine manufacturer and would accordingly need to 
certify that new engines comply with this rule's provisions.
    Under this proposal, an engine dresser violating the above criteria 
might be liable under anti-tampering provisions for any change made to 
the land-based engine that affects emissions. The dresser might also be 
subject to a compliance action for selling new marine engines that are 
not certified to the required emission standards.
2. What Was the Small Business Advocacy Review Panel?
    As described in Section XI.B, the August 1999 report of the Small 
Business Advocacy Review Panel addresses the concerns of sterndrive and 
inboard engine marinizers, compression-ignition recreational marine 
engine marinizers, and boat builders that use these engines.
    To identify representatives of small businesses for this process, 
we used the definitions provided by the Small Business Administration 
for engine manufacturers and boat builders. We then contacted companies 
manufacturing internal-combustion engines employing fewer than 1,000 
people to be small-entity representatives for the Panel. Companies 
selling or installing such engines in boats and employing fewer than 
500 people were also considered small businesses for the Panel. Based 
on this information, we asked 16 small businesses to serve as small-
entity representatives. These companies represented a cross-section of 
both gasoline and diesel engine marinizers, as well as boat builders.
    With input from small-entity representatives, the Panel drafted a 
report with findings and recommendations on how to reduce the potential 
small-business burden resulting from this proposed rule. The Panel's 
recommended flexibility options are described in the following 
sections.
3. What Are the Proposed Burden Reduction Approaches for Small-Volume 
Engine Marinizers?
    We are proposing several flexibility options for small-volume 
engine marinizers. The purpose of these options is to reduce the burden 
on companies for which fixed costs cannot be distributed over a large 
number of engines. For this reason, we propose to define a small-volume 
engine manufacturer based on annual U.S. sales of engines. This 
production count would include all engines (automotive, other nonroad, 
etc.) and not just recreational marine engines. We propose to consider 
small businesses to be those that produce fewer than 1000 internal 
combustion engines per year. Based on our characterization of the 
industry, there is a natural break in production volumes above 500 
engine sales where the next smallest manufacturers make tens of 
thousands of engines. We chose 1000 engines as a limit because it 
groups together all the marinizers most needing the proposed burden 
reduction approaches, while still allowing for reasonable sales growth.

[[Page 51143]]

    The proposed flexibility options for small-volume marinizers are 
discussed below and would be used at the manufacturers' discretion. We 
request comment on the appropriateness of these flexibility options or 
other options.
    a. Broaden engine families. We propose to allow small-volume 
marinizers to put all of their models into one engine family (or more 
as necessary) for certification purposes. Marinizers would then certify 
using the ``worst-case'' configuration. This approach is consistent 
with the flexibility offered to post-manufacture marinizers under the 
commercial marine regulations. The advantage of this approach is that 
it minimizes certification testing because the marinizer can certify a 
single engine in the first year to represent their whole product line. 
As for large companies, the small-volume manufacturers would then be 
able carry-over data from year to year until engine design changes 
occur that would significantly affect emissions.
    We understand that this flexibility alone may not be able to reduce 
the burden enough for all small-volume manufactures because it would 
still require a certification test. We consider this to be the foremost 
cost concern for some small-volume manufacturers, because the test 
costs are spread over low sales volumes. Also, we recognize that it may 
be difficult to determine the worst-case emitter without additional 
testing.
    b. Minimize compliance requirements. We propose to waive 
production-line and deterioration testing for small-volume marinizers. 
We would assign a deterioration factor for use in calculating end-of-
life emission factors for certification. The advantages of this 
approach would be to minimize compliance testing. Production-line and 
deterioration testing would be more extensive than a single 
certification test.
    There are also some disadvantages of this approach, because there 
would be no testing assurance of engine emissions at the production 
line. This is especially a concern without a manufacturer-run in-use 
testing program. Also, assigned deterioration factors would not be as 
accurate as deterioration factors determined by the manufacturer 
through testing. We request comment on appropriate deterioration 
factors for the technology discussed in this proposal.
    c. Expand engine dresser flexibility. We propose to expand the 
engine dresser definition for small-volume marinizers to include water-
cooled turbochargers where the goal is to match the performance of the 
non water-cooled turbocharger on the original certified configuration. 
We believe this would provide more opportunities for diesel marinizers 
to be excluded from certification testing if they operate as dressers.
    There would be some potential for adverse emissions impacts because 
emissions are sensitive to turbo-matching; however, if the goal of the 
marinizer is to match the performance of the original turbocharger, 
this risk should be small. We recognize that this option would not 
likely benefit all diesel marinizers because changes to fuel management 
for power would not qualify under engine dressing.
    d. Streamlined certification. We are requesting comment on allowing 
small-volume marinizers to certify to a performance standard by showing 
their engines meet design criteria rather than by certification 
testing. The goal would be to reduce the costs of certification 
testing. We are concerned that this approach must be implemented 
carefully to work effectively. This would put us in the undesirable 
position of specifying engine designs for marinizers, which we have 
historically avoided by setting performance standards.
    We are not clear on how to set meaningful design criteria for 
marine diesel engines. We expect that emission reductions in diesel 
engines will be achieved through careful calibration of the engine fuel 
and air management systems using strategies such as timing retard and 
charge-air cooling. It may not be feasible to specify criteria for 
ignition timing, charge-air temperatures, and injection pressures that 
would ensure that every engine can achieve the targeted level of 
emission control. While we do not believe design criteria can be set to 
provide sufficient assurance of emission control from these engines, we 
ask for comment on any possible approaches.
    We propose to allow small-volume marinizers to certify to the 
proposed not-to-exceed (NTE) requirements with a streamlined approach. 
We believe small-volume marinizers could make a satisfactory showing 
that they meet NTE standards with limited test data. Once these 
manufacturers test engines over the proposed five-mode certification 
duty cycle (E5), they could use those or other test points to 
extrapolate the results to the rest of the NTE zone. For example, an 
engineering analysis could consider engine timing and fueling rate to 
determine how much the engine's emissions may change at points not 
included in the E5 cycle. For this streamlined NTE approach, we propose 
that keeping all four test modes of the E5 cycle within the NTE 
standards would be enough for small-volume marinizers to certify 
compliance with NTE requirements, as long as there are no significant 
changes in timing or fueling rate between modes. We request comment on 
this approach.
    e. Delay standards for five years. We propose that small-volume 
marinizers not have to comply with the standards for five years after 
they take effect for larger companies. Under this plan the proposed 
standards would take effect from 2011 to 2014 for small-volume 
marinizers, depending on engine size. We propose that marinizers would 
be able to apply this delay to all or just a portion of their 
production. They could therefore still sell engines that meet the 
standards when possible on some product lines while delaying 
introduction of emission-control technology on other product lines. 
This option provides more time for small marinizers to redesign their 
products, allowing time to learn from the technology development of the 
rest of the industry.
    While we are concerned about the loss of emission control from part 
of the fleet during this time, we recognize the special needs of small-
volume marinizers and believe the added time may be necessary for these 
companies to comply with the proposed emission standards. This 
additional time will allow small-volume marinizers to obtain and 
implement proven, cost-effective emission-control technology. Some 
small-volume marinizers have expressed concern to the Small Business 
Advocacy Panel that large manufacturers could have competitive 
advantage if they market their engines as cleaner than the small-
business engines. Other small-volume manufacturers commented that this 
provision would be useful to them.
    We are also requesting comment on limited exemptions for small-
volume marinizers. Under this sort of flexibility, upon request from a 
small-volume marinizer, we would exempt a small number of engines per 
year for 8 to 10 years. An example of a small-volume exemptions would 
be 50 marine diesel engines per year. We are concerned, however, that 
this approach may not be appropriate given our goal of reducing burden 
on small businesses without significant loss in emission control.
    f. Hardship provisions. We are proposing two hardship provisions 
for small-volume marinizers. Marinizers would be able to apply for this 
relief on an annual basis. First, we propose that small marinizers 
could petition us for additional time to comply with the standards. The 
marinizer would have to make the case that it has taken all

[[Page 51144]]

possible steps to comply but the burden of compliance costs would have 
a major impact on the company's solvency. Also, if a certified base 
engine were available, we propose that the marinizer would have to use 
this engine. We believe this provision would protect small-volume 
marinizers from undue hardship due to certification burden. Also, some 
emission reduction could be gained if a certified base engine becomes 
available.
    Second, we propose that small-volume marinizers could also apply 
for hardship relief if circumstances outside their control caused the 
failure to comply (such as a supply contract broken by parts supplier) 
and if failure to sell the subject engines would have a major impact on 
the company's solvency. We would consider this relief mechanism as a 
option to be used only as a last resort. We believe this provision 
would protect small-volume marinizers from circumstances outside their 
control.
    g. Use of emission credits. We request comment on the 
appropriateness of allowing small-volume manufacturers to purchase 
credits under the streamlined certification approach described above. 
Under this approach, the engine's emission performance for purposes of 
certification is determined on the basis of design features rather than 
emission test results alone. Certification would therefore depend on 
engineering analysis and design criteria. Without a full set of 
emission test data, however, it would not be possible for these 
manufacturers to participate in an emission-credit program.
    We believe the level of credits necessary to offset emissions from 
uncontrolled engines could be established conservatively to maximize 
assurance of compliance. For this reason, the baseline emissions of the 
uncontrolled engine could be based on the worst-case baseline data we 
are aware of, which would currently be 20 g/kW-hr HC+NOX and 
1 g/kW-hr PM. The credits needed would then be calculated using the 
proposed standards and the usage assumptions presented in Chapter 6 of 
the Draft Regulatory Support Document.
    Under this limited emission-credit program, we propose that the 
participating manufacturer would be able to buy credits offered for 
sale by recreational marine diesel engine manufacturers certifying only 
on the basis of emission tests (not using the streamlined certification 
described above). We propose that cross-trading outside of recreational 
marine not be allowed, because it could prevent emission reductions 
from being achieved in areas where boats contribute most significantly 
to local air pollution and it could prevent new technology from being 
applied to recreational marine engines. However, we request comment on 
whether or not small-volume marinizers should be able to use credits 
generated from other sectors such as land-based nonroad engines.
4. What Are the Proposed Burden Reduction Approaches for Small-Volume 
Boat Builders Using Recreational Marine Diesel Engines?
    The SBAR Panel Report recommends that we propose burden reduction 
approaches for small-volume boat builders. This recommendation was 
based on the concern that, although boat builders would not be directly 
regulated under the proposed engine standards, they may need to 
redesign engine compartments on some boats if engine designs were to 
change significantly. Based on comments from industry, we believe these 
flexibility options may be appropriate; however, they may also turn out 
to be unnecessary.
    We are proposing four flexibility options for small-volume vessel 
manufacturers using recreational marine diesel engines. The purpose of 
these options is to reduce the burden on companies for which fixed 
costs cannot be distributed over a large number of vessels. For this 
reason, we propose to define a small-volume boat builder as one that 
produces fewer than 100 boats for sale in the U.S. in one year and 
meets the Small Business Administration definition of a small business 
(fewer than 500 employees). The production count would include all 
engine-powered recreational boats. We propose that these flexibility 
options be used at the manufacturer's discretion. The proposed 
flexibility options for small-volume boat builders are discussed below. 
We request comment on the appropriateness of these or other flexibility 
options.
    a. Percent-of-production delay. This proposed flexibility would 
allow manufacturers, with written request from a small-volume boat 
builder and prior approval from us, to produce a limited number of 
uncertified recreational marine engines. We propose that, over a period 
of five years (2006-2010), small-volume boat builders would be able to 
purchase uncertified engines to sell in boats for an amount equal to 80 
percent of engine sales for one year. For example, if the small boat 
builder sells 100 engines per year, a total of 80 uncertified engines 
may be sold over the five-year period. This should give small boat 
builders flexibility to delay using new engine designs for a portion of 
business.
    We currently believe this flexibility is appropriate, however, it 
is possible that this flexibility could turn out to be unnecessary if 
the standards do not result in significant changes in engine size, 
power-to-weight ratio, or other parameters that would affect boat 
design. Moreover, custom boat builders may not need this flexibility if 
they design each boat from the ground up. We are also concerned that 
this flexibility could reduce the market for the certified engines 
produced by the engine manufacturers and could make it difficult for 
customs inspectors to know which uncertified engines can be imported. 
We therefore propose that engines produced under this flexibility would 
have to be labeled as such.
    b. Small-volume allowance. This proposed flexibility is similar to 
the percent-of-production allowance, but is designed for boat builders 
with very small production volumes. The only difference with the above 
flexibility would be that the 80-percent allowance described above 
could be exceeded as long as sales do not exceed either 10 engines per 
year or 20 engines over five years (2006-2010). This proposed 
flexibility would apply only to engines less than or equal to 2.5 
liters per cylinder.
    c. Existing inventory and replacement engine allowance. We propose 
that small-volume boat builders be allowed to sell their existing 
inventory after the implementation date of the new standards. However, 
no purposeful stockpiling of uncertified engines would be permitted. 
This provision is intended to allow small boat builders flexibility to 
turn over engine designs.
    d. Hardship relief provision. We propose that small boat builders 
could apply for hardship relief if circumstances outside their control 
caused the problem (for example, if a supply contract were broken by 
the engine supplier) and if failure to sell the subject vessels would 
have a major impact on the company's solvency. This relief would allow 
the boat builder to use an uncertified engine and would be considered a 
mechanism of last resort. These hardship provisions are consistent with 
those currently in place for post-manufacture marinizers of commercial 
marine diesel engines.

F. Technical Amendments

    The proposed regulations include a variety of amendments to the 
programs already adopted for marine spark-ignition and diesel engines, 
as described in the following paragraphs.

[[Page 51145]]

1. 40 CFR Part 91
    We have identified three principal amendments to the requirements 
for outboard and personal watercraft engines. First, we are proposing 
to add a definition of United States. This is especially helpful in 
clearing up questions related to U.S. territories in the Carribean Sea 
and the Pacific Ocean. Second, we have found two typographical errors 
in the equations needed for calculating emission levels in 40 CFR 
91.419. Finally, we are proposing to clarify testing rates for the in-
use testing program. The regulations currently specify a maximum rate 
of 25 percent of a manufacturer's engine families. We are proposing to 
clarify that for manufacturers with fewer than four engine families, 
the maximum testing rate should be one family per year in place of the 
percentage calculation. We request comment on these amendments. 
Specifically, we request comment on whether there is a need to delay 
the effectiveness of any of these amendments to allow manufacturers 
time to comply with new requirements.
2. 40 CFR Part 94
    We are proposing several regulatory amendments to the program for 
commercial marine diesel engines. Several of these are straightforward 
edits for correct grammar and cross references.
    We propose to change the definition of United States, as described 
in the previous section.
    We are proposing to add a definition for spark-ignition, consistent 
with the existing definition for compression-ignition. This would allow 
us to define compression-ignition as any engine that is not spark-
ignition. This would help ensure that marine emission standards for the 
different types of engines fit together appropriately. We do not expect 
this change to affect any current engines.
    The discussion of production-line testing in Section III includes a 
proposal to reduce testing rates after two years of consistent good 
performance. We propose to extend this provision to commercial marine 
diesel engines as well.
    The test procedures for Category 2 marine engines give a cross-
reference to 40 CFR part 92, which defines the procedures for testing 
locomotives and locomotive engines. Part 92 specifies a wide range of 
ambient temperatures for testing, to allow for outdoor measurements. We 
expect all testing of Category 2 marine engines to occur indoors and 
are therefore proposing to adopt a range of 13 deg. to 30 deg. C 
(55 deg. to 86 deg. F) for emission testing.
    We request comment on modifying the language prohibiting emission 
controls that increase unregulated pollutants. The existing language 
states:

    An engine with an emission-control system may not emit any 
noxious or toxic substance which would not be emitted in the 
operation of the engine in the absence of such a system, except as 
specifically permitted by regulation.

Amended regulatory language would focus on preventing emissions that 
would endanger public welfare, rather than setting a standard that 
allows no tradeoff between pollutants. We are considering this also in 
emission-control programs for other types of engines, since various 
prospective engine technologies require more careful consideration of 
this issue.

    You may not design your engines with emission-control devices, 
systems, or elements of design that cause or contribute to an 
unreasonable risk to public health, welfare, or safety while 
operating. This applies especially if the engine emits any noxious 
or toxic substance it would otherwise not emit.

    After completing the final rule for commercial marine diesel 
engines, manufacturers expressed a concern about the phase-in schedule 
for engine models under 2.5 liters per cylinder. Some of these engine 
models include ratings above 560 kW (750 hp). When we proposed emission 
standards for these engines, we suggested that the larger engines could 
certify according to an earlier schedule, since the lower-power engines 
from those product lines would need to meet emission standards for 
marine and land-based nonroad engines earlier. We received no comment 
on this position. We request comment on the need to accommodate 
manufacturers' calibration, certification, and production schedules in 
aligning the marine and land-based nonroad diesel engine emission 
standards and on what offsets are appropriate.

G. Technological Feasibility

    We believe the emission-reduction strategies expected for land-
based nonroad diesel engines and commercial marine diesel engines can 
also be applied to recreational marine diesel engines. Marine diesel 
engines are generally derivatives of land-based nonroad and highway 
diesel engines. Marine engine manufacturers and marinizers make 
modifications to the engine to make it ready for use in a vessel. These 
modifications can range from basic engine mounting and cooling changes 
to a restructuring of the power assembly and fuel management system. 
Chapters 3 and 4 of the Draft Regulatory Support Document discuss this 
process in more detail. Also, we have collected emission data 
demonstrating the feasibility of the not-to-exceed requirements. These 
data are presented in Chapter 4 of the Draft Regulatory Support 
Document.
1. Implementation Schedule
    For recreational marine diesel engines, the proposed implementation 
schedule allows an additional two years of delay beyond the commercial 
marine diesel standards. This represents up to a five-year delay in 
standards relative to the implementation dates of the land-based 
nonroad standards. This should reduce the burden of complying with the 
proposed regulatory scheme by allowing time for carryover of technology 
from land-based nonroad and commercial marine diesel engines. In 
addition, the proposed implementation dates represent four or more 
years of lead time beyond the planned date for our final rule.
2. Standard Levels
    Marine diesel engines are typically derived from or use the same 
technology as land-based nonroad and commercial marine diesel engines 
and should therefore be able to effectively use the same emission-
control strategies. In fact, recreational marine engines can make more 
use of the water they operate in as a cooling medium compared with 
commercial marine, because they are able to make use of raw-water 
aftercooling. This can help them reduce charge-air intake temperatures 
more easily than the commercial models and much more easily than land-
based nonroad diesel engines. Cooling the intake charge reduces the 
formation of NOX emissions.
3. Technological Approaches
    We anticipate that manufacturers will meet the proposed standards 
for recreational marine diesel engines primarily with technology that 
will be applied to land-based nonroad and commercial marine diesel 
engines. Much of this technology has already been established in 
highway applications and is being used in limited land-based nonroad 
and marine applications. Our analysis of this technology is described 
in detail in Chapters 3 and 4 of the Draft Regulatory Support Document 
for this proposed rule and is summarized here. We request comment on 
the applicability of the technology discussed below for CI recreational 
marine engines.
    Our cost analysis is based on the technology package which we 
believe

[[Page 51146]]

most manufacturers will apply and is described in Chapter 5 of the 
Draft Regulatory Support Document. Our estimated costs of control are 
an ``average'' based on this technology package. This assumes that 
reductions from the package are all necessary and that the performance 
in the area of emission reductions is linear. While we believe this is 
a reasonable approach for estimating the overall costs of compliance, 
we are also seeking comment on whether there are different technologies 
or different application of the technologies in our package which could 
affect the marginal costs of compliance. That is to say, is there an 
incremental difference in technology which would reduce (or increase) 
costs significantly, and thus significantly affect the costs of control 
for a small given margin of additional emission reduction.
    By proposing standards that don't go into place until 2006, we are 
providing engine manufacturers with substantial lead time for 
developing, testing, and implementing emission-control technologies. 
This lead time and the coordination of standards with those for land-
based nonroad engines allows time for a comprehensive program to 
integrate the most effective emission-control approaches into the 
manufacturers' overall design goals related to durability, reliability, 
and fuel consumption.
    Engine manufacturers have already shown some initiative in 
producing limited numbers of low-NOX marine diesel engines. 
More than 80 of these engines have been placed into service in 
California through demonstration programs. The Draft Regulatory Support 
Document further discusses these engines and their emission results. 
Through the demonstration programs, we were able to gain some insight 
into what technologies can be used to meet the proposed emission 
standards.
    Highway engines have been the leaders in developing new emission-
control technology for diesel engines. Because of the similar engine 
designs in land-based nonroad and marine diesel engines, it is clear 
that much of the technological development that has led to lower-
emitting highway engines can be transferred or adapted for use on land-
based nonroad and marine engines. Much of the improvement in emissions 
from these engines comes from ``internal'' engine changes such as 
variation in fuel-injection variables (injection timing, injection 
pressure, spray pattern, rate shaping), modified piston bowl geometry 
for better air-fuel mixing, and improvements intended to reduce oil 
consumption. Introduction and ongoing improvement of electronic 
controls have played a vital role in facilitating many of these 
improvements.
    Turbocharging is widely used now in marine applications, especially 
in larger engines, because it improves power and efficiency by 
compressing the intake air. Turbocharging may also be used to decrease 
particulate emissions in the exhaust. Today, marine engine 
manufacturers generally have to rematch the turbocharger to the engine 
characteristics of the marine version of a nonroad engine and often 
will add water jacketing around the turbocharger housing to keep 
surface temperatures low. Once the nonroad Tier 2 engines are available 
to the marine industry, matching the turbochargers for the engines will 
be an important step in achieving low emissions.
    Aftercooling is a well established technology for reducing 
NOX by decreasing the temperature of the charge air after it 
has been heated during compression. Decreasing the charge-air 
temperature directly reduces the peak cylinder temperature during 
combustion, which is the primary cause of NOX formation. 
Air-to-water and water-to-water aftercoolers are well established for 
land-based applications. For engines in marine vessels, there are two 
different types of aftercooling: jacket-water and raw-water 
aftercooling. With jacket-water aftercooling, the fluid that extracts 
heat from the aftercooler is itself cooled by ambient water. This 
cooling circuit may either be the same circuit used to cool the engine 
or it may be a separate circuit. By moving to a separate circuit, 
marine engine manufacturers would be able to achieve further reductions 
in the charge-air temperature. This separate circuit could result in 
even lower temperatures by using raw water as the coolant. This means 
that ambient water is pumped directly to the aftercooler. Raw-water 
aftercooling is currently widely used in recreational applications. 
Because of the access that marine engines have to a large ambient water 
cooling medium, we anticipate that marine diesel engine manufacturers 
will largely achieve the reductions in NOX emissions for 
this proposal through the use of aftercooling.
    Electronic controls also offer great potential for improved control 
of engine parameters for better performance and lower emissions. Unit 
pumps or injectors would allow higher-pressure fuel injection with rate 
shaping to carefully time the delivery of the whole volume of injected 
fuel into the cylinder. Marine engine manufacturers should be able to 
take advantage of modifications to the routing of the intake air and 
the shape of the combustion chamber of nonroad engines for improved 
mixing of the fuel-air charge. Separate-circuit aftercooling (both 
jacket-water and raw-water) will likely gain widespread use in 
turbocharged engines to increase performance and lower NOX.
4. Our Conclusions
    The proposed standards for recreational marine diesel engines 
reasonably reflect what manufacturers can achieve through the 
application of available technology. Recreational marine diesel engine 
manufacturers will need to use the available lead time to develop the 
necessary emission-control strategies, including transfer of technology 
from land-based nonroad and commercial marine CI engines. This 
development effort will require not only achieving the targeted 
emission levels, but also ensuring that each engine will meet all 
performance and emission requirements over its useful life. The 
proposed standards clearly represent significant reductions compared 
with baseline emission levels.
    Emission-control technology for diesel engines is in a period of 
rapid development in response to the range of emission standards in 
place (and under consideration) for highway and land-based nonroad 
engines in the years ahead. This development effort will automatically 
transfer to some extent to marine engines, because marine engines are 
often derivatives of highway and land-based nonroad engines. 
Regardless, this development effort would need to expand to meet the 
proposed standards. Because the technology development for highway and 
land-based nonroad engines will largely constitute basic research of 
diesel engine combustion, the results should generally find direct 
application to marine engines.
    Based on information currently available, we believe it is feasible 
for recreational marine diesel engine manufacturers to meet the 
proposed standards using combinations of technological approaches 
discussed above and in Chapters 3 and 4 of the Draft Regulatory Support 
Document. To the extent that the technologies described above may not 
yield the full degree of emission reduction anticipated, manufacturers 
could still rely on a modest degree of fuel-injection timing retard as 
a strategy for complying with the proposed emission standards.
    In addition, we believe the flexibilities incorporated into this 
proposal will permit marinizers and boat builders to respond to engine 
changes in an orderly way. We expect that meeting these requirements 
will

[[Page 51147]]

pose a challenge, but one that is feasible taking into consideration 
the availability and cost of technology, time, noise, energy, and 
safety.

VI. Recreational Vehicles and Engines

A. Overview

    This section applies to recreational vehicles. We are proposing to 
set new emission standards for snowmobiles, off-highway motorcycles, 
and all-terrain vehicles (ATVs). The engines used in these vehicles are 
a subset of nonroad SI engines.\137\ In our program to set standards 
for nonroad SI engines below 19 kW (Small SI), we excluded recreational 
vehicles because they have different design characteristics and usage 
patterns than certain other engines in the Small SI category. For 
example, engines typically found in the Small SI category are used in 
lawn mowers, chainsaws, trimmers, and other lawn and garden 
applications. These engines tend to have low power outputs and operate 
at constant loads and speeds, whereas recreational vehicles can have 
high power outputs with highly variable engine loads and speeds. This 
suggests that these engines should be tested differently than Small SI 
engines. In the same way, we are proposing to treat snowmobiles, off-
highway motorcycles, and ATVs separately from our Large SI engine 
program, which is described in Section IV. For recreational vehicles 
that are not snowmobiles, off-highway motorcycles, or ATVs, we propose 
to apply the standards otherwise applicable to nonroad SI engines (see 
Section VI.B.2).
---------------------------------------------------------------------------

    \137\ Almost all recreational vehicles are equipped with SI 
engines. Any diesel engines used in these applications must meet our 
emission standards for nonroad diesel engines.
---------------------------------------------------------------------------

    We are proposing emission standards for hydrocarbons (HC), and 
carbon monoxide (CO) from all recreational vehicles and NOX 
from off-highway motorcycles and ATVs. Many of these vehicles use two-
stroke engines which emit high levels of HC and CO. We believe that 
vehicle and engine manufacturers will be able to use technology already 
established for other types of engines, such as highway motorcycles, 
small spark-ignition engines, and marine engines, to meet these near-
term standards. To encourage the introduction of low-emission 
technology such as catalytic control and the conversion from two-stroke 
to four-stroke engines, we are also proposing a Voluntary Low Emission 
Standards program. We also recognize that there are many small 
businesses that manufacture recreational vehicles; we are therefore 
proposing several regulatory special compliance provisions to reduce 
the burden of emission regulations on small businesses.
1. What Are Recreational Vehicles and Who Makes Them?
    We are proposing to adopt new emission standards for off-highway 
motorcycles, all-terrain vehicles (ATVs), and snowmobiles. Eight 
manufacturers dominate the sales of these recreational vehicles. Of 
these eight manufacturers, seven of them manufacture a combination of 
two or more of the three main types of recreational vehicles. For 
example, there are four companies that manufacture both off-highway 
motorcycles and ATVs. There are three companies that manufacture ATVs 
and snowmobiles; one company manufactures all three. These eight 
companies represent approximately 95 percent of all domestic sales of 
recreational vehicles.
    a. Off-highway motorcycles. Motorcycles come in a variety of 
configurations and styles. For the most part, however, they are two-
wheeled, self-powered vehicles. Off-highway motorcycles are similar in 
appearance to highway motorcycles, but there are several important 
distinctions between the two types of machines. Off-highway motorcycles 
are not street-legal and are primarily operated on public and private 
lands over trails and open areas. Off-highway motorcycles tend to be 
much smaller, lighter and more maneuverable than their larger highway 
counterparts. They are equipped with relatively small-displacement 
single-cylinder two-or four-stroke engines ranging from 48 to 650 cubic 
centimeters (cc). The exhaust systems for off-highway motorcycles are 
distinctively routed high on the frame to prevent damage from brush, 
rocks, and water. Off-highway motorcycles are designed to be operated 
over varying surfaces, such as dirt, sand, or mud, and are equipped 
with knobby tires to give better traction in off-road conditions. 
Unlike highway motorcycles, off-highway motorcycles have fenders 
mounted far from the wheels and closer to the rider to keep dirt and 
mud from spraying the rider and clogging between the fender and tire. 
Off-highway motorcycles are also equipped with more advanced suspension 
systems than those for highway motorcycles. This allows the operator to 
ride over obstacles and make jumps safely.
    Five companies dominate sales of off-highway motorcycles. They are 
long-established, large corporations that manufacture several different 
products including highway and off-highway motorcycles. These five 
companies account for 90 to 95 percent of all domestic sales of off-
highway motorcycles. There are also several relatively small companies 
that manufacture off-highway motorcycles, many of which specialize in 
racing or competition machines.
    b. All-terrain vehicles. ATVs have been in existence for a long 
time, but have become increasingly popular over the last 25 years. Some 
of the earliest and most popular ATVs were three-wheeled off-highway 
models with large balloon tires. Due to safety concerns, the three-
wheeled ATVs were phased-out in the mid-1980s and replaced by the 
current and more popular four-wheeled vehicle known as ``quad runners'' 
or simply ``quads.'' Quads resemble the earlier three-wheeled ATVs 
except that the single front wheel was replaced with two wheels 
controlled by a steering system. The ATV steering system uses 
motorcycle handlebars, but otherwise looks and operates like an 
automotive design. The operator sits on and rides the quad much like a 
motorcycle. The engines used in quads tend to be very similar to those 
used in off-highway motorcycles--relatively small, single-cylinder two- 
or four-stroke engines. Quads are typically divided into utility and 
sport models. The utility quads are designed for recreational use but 
have the ability to perform many utility functions, such as plowing 
snow, tilling gardens, and mowing lawns. They are typically heavier and 
equipped with relatively large four-stroke engines and automatic 
transmissions with a reverse gear. Sport quads are smaller and designed 
primarily for recreational purposes. They are equipped with two-or 
four-stroke engines and manual transmissions.
    There are two other less common types of ATVs, both of which are 
six-wheeled models. One looks similar to a large golf cart with a bed 
for hauling cargo, much like a pick-up truck. These ATVs are typically 
manufactured by the same companies that make quad runners and use 
similar engines. The other can operate both in water and on land. These 
amphibious ATVs typically have small gasoline-powered engines similar 
to those found in lawn and garden tractors, rather than the motorcycle 
engines used in quads, though some use automotive-based Large SI 
engines.
    Of all of the types of recreational vehicles, ATVs have the largest 
number of major manufacturers. All but one of the companies noted above 
for off-highway motorcycles and snowmobiles are significant ATV 
producers. These seven companies represent over 95

[[Page 51148]]

percent of total domestic ATV sales. The remaining 5 percent of sales 
come from importers, which tend to import less expensive, youth-
oriented ATVs.
    c. Snowmobiles. Snowmobiles, also referred to as ``sleds,'' are 
tracked vehicles designed to operate over snow. Snowmobiles have some 
similarities to off-highway motorcycles and ATVs. A snowmobile rider 
sits on and rides a snowmobile similar to an ATV. Snowmobiles use high-
powered two- and three-cylinder two-stroke engines that look similar to 
off-highway motorcycle engines. Rather than wheels, snowmobiles are 
propelled by a track system similar to what is used on a bulldozer. The 
snowmobile is steered by two skis at the front of the sled. Snowmobiles 
use handlebars similar to off-highway motorcycles and ATVs. The typical 
snowmobile seats two riders comfortably. Over the years, snowmobile 
performance has steadily increased to the point that many snowmobiles 
currently have engines over 100 horsepower and are capable of exceeding 
100 miles per hour. The proposed definition for snowmobiles includes a 
limit of 1.5-meter width to differentiate conventional snowmobiles from 
ice-grooming machines and snow coaches, which use very different 
engines. We request comment on this definition and on any other 
approaches to differentiate these products.
    There are four major snowmobile manufacturers, accounting for more 
than 99 percent of all domestic sales. The remaining sales come from 
very small manufacturers who tend to specialize in expensive, high-
performance designs.
    d. Other recreational vehicles. Currently, our Small SI nonroad 
engine regulations cover all recreational engines that are under 19 kW 
(25 hp) and have either an installed speed governor or a maximum engine 
speed less than 5,000 rpm. Recreational vehicles currently covered by 
the Small SI standards include go-carts, golf carts, and small mini-
bikes. Although some off-highway motorcycles, ATVs and snowmobiles have 
engines with rated horsepower less than 19 kW, they all have maximum 
engine speeds greater than 5,000 rpm. Thus they have not been included 
in the Small SI regulations. The only other types of small recreational 
engines not covered by the Small SI rule are those engines under 19 kW 
that aren't governed and have maximum engine speed of at least 5,000 
rpm. There are relatively few such vehicles with recreational engines 
not covered by the Small SI regulations. The best example of vehicles 
that fit in this category are scooters and skateboards that are powered 
by very small gasoline spark-ignition engines. The engines used on 
these vehicles are typically the same as those used in string trimmers 
or other lawn and garden equipment, which are covered under the Small 
SI regulations. Because these engines are generally already covered by 
the Small SI regulations and are the same as, or very similar to, 
engines as those used in lawn and garden applications, we are proposing 
to revise the Small SI rules to cover these engines under the Small SI 
regulations. To avoid any problems in transitioning to meet emission 
standards, we propose to apply these standards in 2006. We request 
comments on these issues.
2. What Is the Regulatory History for Recreational Vehicles?
    California ARB established standards for off-highway motorcycles 
and ATVs, which took effect in January 1997 (1999 for vehicles with 
engines of 90 cc or less). California has not adopted standards for 
snowmobiles. The standards, shown in Table VI.A-1, are based on the 
highway motorcycle chassis test procedures. Manufacturers may certify 
ATVs to optional standards, also shown in Table VI.A-1, which are based 
on the utility engine test procedure.\138\ This is the test procedure 
over which Small SI engines are tested. The stringency level of the 
standards was based on the emission performance of 4-stroke engines and 
advanced 2-stroke engines with a catalytic converter. California ARB 
anticipated that the standards would be met initially through the use 
of high performance 4-stroke engines.
---------------------------------------------------------------------------

    \138\ Notice of Off-Highway Recreational Vehicle Manufacturers 
and All Other Interested Parties Regarding Alternate Emission 
Standards for All-Terrain Vehicles, Mail Out #95-16, April 28, 1995, 
California ARB (Docket A-2000-01, document II-D-06).

 Table VI.A-1.--California Off-highway Motorcycle and ATV Standards for
                        Model Year 1997 and later
             [1999 and later for engines at or below 90 cc]
------------------------------------------------------------------------
                                                        HC   NOX  CO  PM
------------------------------------------------------------------------
Off-highway motorcycle and ATV standards (g/km).....  \a\ 1  ...  15  ..
                                                         .2


------------------------------------------------------------------------
                                                          HC +
                                                          NOX     CO  PM
------------------------------------------------------------------------
Optional standards for ATV engines below 225 cc (g/bhp-  \a\12.  300  ..
 hr)..................................................        0
Optional standards for ATV engines at or above 225 cc    \a\10.  300  ..
 (g/bhp-hr)...........................................        0
------------------------------------------------------------------------
\a\ Corporate-average standard.

    California revisited the program because a lack of certified 
product from manufacturers was reportedly creating economic hardship 
for dealerships. The number of certified off-highway motorcycle models 
was particularly inadequate.\139\ In 1998, California revised the 
program, allowing the use of uncertified products in off-highway 
vehicle recreation areas with regional/seasonal use restrictions. 
Currently, noncomplying vehicles may be sold in California and used in 
attainment areas year-round and in nonattainment areas during months 
when exceedances of the state ozone standard are not expected. For 
enforcement purposes, certified and uncertified products are identified 
with green and red stickers, respectively. Only about one-third of off-
highway motorcycles selling in California are certified. All certified 
products have 4-stroke engines.
---------------------------------------------------------------------------

    \139\ Initial Statement of Reasons, Public Hearing to Consider 
Amendments to the California Regulations for New 1997 and Later Off-
highway Recreational Vehicles and Engines, California ARB, October 
23, 1998 (Docket A-2000-01, document II-D-08).
---------------------------------------------------------------------------

B. Engines Covered by This Proposal

    We are proposing new emission standards for all new off-highway 
motorcycles, all-terrain vehicles (ATVs), and snowmobiles. We are also 
proposing to apply existing Small SI emission standards to other 
recreational vehicles, as described above. The engines used in these 
vehicles tend to be small, air-or liquid-cooled, reciprocating Otto-
cycle engines that operate on gasoline.\140\ With the exception of what 
we define as ``other recreational vehicles,'' these engines are 
designed to be used in vehicles, where engine performance is 
characterized by highly transient operation, with a wide range of 
engine speed and load capability. Maximum engine speed is typically 
well above 5,000 rpm. Also, with the exception of snowmobiles, the 
vehicles are typically equipped with transmissions rather than torque 
converters to ensure performance under a variety of operating 
conditions.\141\
---------------------------------------------------------------------------

    \140\ Otto cycle is another name for a spark-ignition engine 
which utilizes a piston with homogeneous external or internal air 
and fuel mixture formation and spark ignition.
    \141\ Snowmobiles use continuously variable transmissions, which 
tend to operate like torque converters.

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[[Page 51149]]

1. Two-Stroke vs. Four-Stroke Engines
    The engines used by recreational vehicles can be separated into two 
distinct designs: two-stroke and four-stroke. The distinction between 
two-stroke and four-stroke engines is important for emissions because 
two-stroke engines tend to emit much greater amounts of unburned 
hydrocarbons (HC) and particulate matter (PM) than four-stroke engines 
of similar size and power. Two-stroke engines also have greater fuel 
consumption than four-stroke engines, but they also tend to have higher 
power output per-unit displacement, lighter weight, and better cold-
starting performance. These advantages, combined with a simple design 
and lower manufacturing costs, tend to make two-stroke engines popular 
as a power unit for recreational vehicles. With the exception of a few 
youth models, almost all snowmobiles use two-stroke engines. Currently, 
about 63 percent of all off-highway motorcycles (predominantly in high 
performance, youth, and entry-level bikes) and 20 percent of all ATVs 
sold in the United States use two-stroke engines.
    The basis for the differences in engine performance and exhaust 
emissions between two-stroke and four-stroke engines can be found in 
the fundamental differences in how two-stroke and four-stroke engines 
operate. Four-stroke operation takes place in four distinct steps: 
intake, compression, power, and exhaust. Each step corresponds to one 
up or down stroke of the piston or 180 deg. of crankshaft rotation. The 
first step of the cycle is for an intake valve in the combustion 
chamber to open during the intake stroke, allowing a mixture of air and 
fuel to be drawn into the cylinder while the piston moves down the 
cylinder. The intake valve then closes and the momentum of the 
crankshaft causes the piston to move back up the cylinder, compressing 
the air and fuel mixture. At the very end of the compression stroke, 
the air and fuel mixture is ignited by a spark from a spark plug and 
begins to burn. As the air and fuel mixture burns, increasing 
temperature and pressure cause the piston to move back down the 
cylinder. This is referred to as the ``power'' stroke. At the bottom of 
the power stroke, an exhaust valve opens in the combustion chamber and 
as the piston moves back up the cylinder, the burnt gases are pushed 
out through the exhaust valve to the exhaust manifold, and the cycle is 
complete.
    In a four-stroke engine, combustion and the resulting power stroke 
occur only once every two revolutions of the crankshaft. In a two-
stroke engine, combustion occurs every revolution of the crankshaft. 
Two-stroke engines eliminate the intake and exhaust strokes, leaving 
only compression and power strokes. This is due to the fact that two-
stroke engines do not use intake and exhaust valves. Instead, they have 
intake and exhaust ports in the sides of the cylinder walls. With a 
two-stroke engine, as the piston approaches the bottom of the power 
stroke, it uncovers exhaust ports in the wall of the cylinder. The high 
pressure combustion gases blow into the exhaust manifold. As the piston 
gets closer to the bottom of the power stroke, the intake ports are 
uncovered, and fresh mixture of air and fuel are forced into the 
cylinder while the exhaust ports are still open. Exhaust gas is 
``scavenged'' or forced into the exhaust by the pressure of the 
incoming charge of fresh air and fuel. In the process, however, some 
mixing between the exhaust gas and the fresh charge of air and fuel 
takes place, so that some of the fresh charge is also emitted in the 
exhaust. Losing part of the fuel out of the exhaust during scavenging 
causes very high hydrocarbon emission characteristics of two-stroke 
engines. The other major reason for high HC emissions from two-stroke 
engines is their tendency to misfire under low-load conditions due to 
greater combustion instability.
2. Applicability of Small SI Regulations
    In our regulations for Small SI engines, we established criteria, 
such as rated engine speed at or above 5,000 rpm and the use of a speed 
governor, that excluded engines used in certain types of recreational 
vehicles (see 40 CFR Sec. 90.1(b)(5)). Engines used in some other types 
of recreational vehicles may be covered by the Small SI standards, 
depending on the characteristics of the engines. For example, 
lawnmower-type engines used in go carts would typically be covered by 
the Small SI standards because they don't operate above 5000 rpm. 
Similarly, engines used in golf carts are also included in the Small SI 
program. As discussed above, we are proposing to revise the Small SI 
regulations to include all recreational engines except those in off-
highway motorcycles, ATVs, snowmobiles, and hobby engines. We are 
proposing to remove the 5,000 rpm and speed governor criteria from the 
applicability provisions of the Small SI regulations.
    There may, however, be instances where an ATV, off-road motorcycle, 
or snowmobile manufacturer currently uses a certified small utility 
engine in their vehicle, and could be required to recertify that engine 
to the recreational vehicle standards in the future. Relatively slow-
moving amphibious ATVs would be one example where certified small 
utility engines may be used. We request comment on whether or not we 
should allow off-road motorcycles, ATVs, and snowmobiles to be 
certified to the Small SI standards in cases where a manufacturer has 
chosen to use a certified small utility engine. We also request comment 
on retaining the 5,000-rpm rated speed criteria for determining the 
applicability of the Small SI standards for snowmobiles, ATVs, and off-
road motorcycles. Further, we request comment and information on any 
vehicles that currently have an engine certified to Small SI standards 
which would be required to certify to the recreational vehicle 
standards due to this regulatory change.
3. Hobby Engines
    The Small SI rule categorized SI engines used in model cars, boats, 
and airplanes as recreational engines and exempted them from the Small 
SI program.\142\ We continue to believe that it would be inappropriate 
to include hobby engines in the Small SI program because of significant 
engine design and use differences. At this time, we also believe that 
hobby engines are substantially different than engines used in 
recreational vehicles and, as discussed below, we are not proposing to 
include SI hobby engines in this proposal.
---------------------------------------------------------------------------

    \142\ 65 FR 24929, April 25, 2000.
---------------------------------------------------------------------------

    There are about 8,000 spark-ignition engines sold per year for use 
in scale-model aircraft, cars, and boats.\143\ This is a very small 
subsection of the overall model engine market, most of which are glow-
plug engines that run on a mix of castor oil, methyl alcohol, and nitro 
methane.\144\ A typical SI hobby engine is approximately 25 cc with a 
horsepower rating of about 1-3 hp, though larger engines are available. 
These SI engines are specialty products sold in very low volumes, 
usually not more than a few hundred units per engine line annually. 
Many of the engines are used in model airplanes, but they are also used 
in other types of models such as cars and boats. These engines, 
especially the larger

[[Page 51150]]

displacement models, are frequently used in competitive events by more 
experienced operators. The racing engines sometimes run on methanol 
instead of gasoline. In addition, the engines are usually installed and 
adjusted by the hobbyist who selects an engine that best fits the 
particular model being constructed.
---------------------------------------------------------------------------

    \143\ Comments submitted by Hobbico on behalf of Great Plains 
Model Distributors and Radio Control Hobby Trade Association, 
February 5, 2001, Docket A-2000-01, document II-D-58.
    \144\ Glow plug hobby engines are considered compression 
ignition engines (diesel) because they lack a spark ignition system 
and throttle (see definition of compression ignition, 40 CFR 
Sec. 89.2). The nonroad diesel engine regulations (40 CFR Sec. 89.2) 
do not apply to hobby engines and therefore these engines are 
unregulated.
---------------------------------------------------------------------------

    The average annual hours of operation has been estimated to be 
about 12.2 hours per year.\145\ The usage rate is very low compared to 
other recreational or utility engine applications due to the nature of 
their use. Much of the hobby revolves around building the model and 
preparing the model for operation. The engine and model must be 
adjusted, maintained, and repaired between uses.
---------------------------------------------------------------------------

    \145\ Comments submitted by Hobbico on behalf of Great Plains 
Model Distributors and Radio Control Hobby Trade Association, 
February 5, 2001, Docket A-2000-01, document II-D-58.
---------------------------------------------------------------------------

    SI model engines are highly specialized and differ significantly in 
design compared to engines used in other recreational or utility engine 
applications. While some of the basic components such as pistons may be 
the similar, the materials, airflow, cooling, and fuel delivery systems 
are considerably different.\146\ \147\ Some SI model engines are scale 
replicas of multi-cylinder aircraft or automobile engines and are 
fundamentally different than SI engines used in other applications. 
Model-engine manufacturers often select lighter-weight materials and 
simplified designs to keep engine weight down, often at the expense of 
engine longevity. Hobby engines use special ignition systems designed 
specifically for the application to be lighter than those used in other 
applications. To save weight, hobby engines typically lack pull 
starters that are found on other engines. Hobby engines must be started 
by spinning the propeller. In addition, the models themselves vary 
significantly in their design, introducing packaging issues for engine 
manufacturers.
---------------------------------------------------------------------------

    \146\ E-mail from Carl Maroney of the Academy of Model 
Aeronautics to Christopher Lieske, of EPA, June 4, 2001, Docket A-
2000-01, document II-G-144.
    \147\ Comments submitted by Hobbico on Behalf of Great Plains 
Model Distributors and Radio Control Hobby Trade Association, 
February 5, 2001, Docket A-2000-01, document II-D-58.
---------------------------------------------------------------------------

    We are not proposing to include SI hobby engines in the 
recreational vehicles program at this time. The engines differ 
significantly from the recreational engines included in the proposal in 
their design and use, as noted above. Emission-control strategies 
envisioned for other recreational vehicles may not be well suited for 
hobby engines because of their design, weight constraints, and 
packaging limitations. Approaches such as using a 4-stroke engine, a 
catalyst, or fuel injection all would involve increases in weight, 
which would be particularly problematic for model airplanes. The 
feasibility of these approaches for these engines is questionable. 
Reducing emissions, even if feasible, would likely involve fundamental 
engine redesign and substantial R&D efforts. The costs of achieving 
emission reductions are likely to be much higher per engine than for 
other recreational applications because the R&D costs would be spread 
over very low sales volumes. The cost of fundamentally redesigning the 
engines could double the cost of some engines.
    By contrast, because of their very low sales volumes, annual usage 
rates, and relatively short engine life cycle, SI hobby engine emission 
contributions are extremely small compared to recreational vehicles. 
The emission reductions possible from regulating such engines would be 
minuscule (we estimate that SI hobby engines as a whole account for 
less than 30 tons of HC nationally per year, much less than 0.01% of 
Mobile Source HC emissions).\148\ Thus, the cost per ton associated 
with regulating such engines would be well above any regulations 
previously adopted under the mobile source program (we estimate 
potential cost per ton for HC to over $200,000 per ton compared to less 
than $2,500 per ton for most other mobile source programs).
---------------------------------------------------------------------------

    \148\ For further information on the feasibility, emission 
inventories, and costs, see ``Analysis of Spark Ignition Hobby 
Engines'', Memorandum from Chris Lieske to Docket A-2000-01, 
document II-G-144.
---------------------------------------------------------------------------

    In addition, hobby engines differ significantly in their in-use 
operating characteristics compared to small utility engines and other 
recreational vehicle engines. It is unclear if the test procedures 
developed and used for other types of SI engine applications would be 
sufficiently representative for hobby engines. We are not aware of any 
efforts to develop an emission test cycle or conduct any emission 
testing of these engines. In addition, because installing, optimizing, 
maintaining, and repairing the engines are as much a part of the hobby 
as operating the engine, emission standards could fundamentally alter 
the hobby itself. Engines with emission-control systems would be more 
complex and the operator would need to be careful not to make changes 
that would cause the engine to exceed emission standards.
    For all the above reasons, we do not have adequate information and 
are not able to propose emission standards and test procedures for SI 
hobby engines at this time. We request comment on the above points, 
including feasibility, cost, and benefits associated with potential 
control technologies for these engines. We also request comment on any 
other information or unique characteristics of hobby engines that 
should be taken into consideration.
4. Competition Off-Highway Motorcycles
    Currently, a large portion of off-highway motorcycles are designed 
as competition/racing motorcycles. These models often represent a 
manufacturer's high-performance offerings in the off-highway market. 
Most such motorcycles are of the motocross variety, although some high 
performance enduro models are marketed for competition use.\149\ \150\ 
These high-performance motorcycles are largely powered by 2-stroke 
engines, though some 4-stroke models have been introduced in recent 
years.
---------------------------------------------------------------------------

    \149\ A motocross bike is typically a high performance off-
highway motorcycle that is designed to be operated in motocross 
competition. Motocross competition is defined as a circuit race 
around an off-highway closed-course. The course contains numerous 
jumps, hills, flat sections, and bermed or banked turns. The course 
surface usually consists of dirt, gravel, sand, and mud. Motocross 
bikes are designed to be very light for quick handling and easy 
maneuverability. They also come with large knobby tires for 
traction, high fenders to protect the rider from flying dirt and 
rocks, aggressive suspension systems that allow the bike to absorb 
large amounts of shock, and are powered by high performance engines. 
They are not equipped with lights.
    \150\ An enduro bike is very similar in design and appearance to 
a motocross bike. The primary difference is that enduros are 
equipped with lights and have slightly different engine performance 
that is more geared towards a broader variety of operation than a 
motocross bike. An enduro bike needs to be able to cruise at high 
speeds as well as operate through tight woods or deep mud.
---------------------------------------------------------------------------

    Competition events for motocross motorcycles mostly involve closed-
course or track racing. Other types of off-highway motorcycles are 
usually marketed for trail or open-area use. When used for competition, 
these models are likely to be involved in point-to-point competition 
events over trails or stretches of open land. There are also 
specialized off-highway motorcycles that are designed for competitions 
such as ice racing, drag racing, and observed trials competition. A few 
races involve professional manufacturer-sponsored racing teams. Amateur 
competition events for off-highway motorcycles are also held frequently 
in many areas of the U.S.
    Clean Air Act subsections 216 (10) and (11) exclude engines and 
vehicles ``used solely for competition'' from nonroad engine and 
nonroad vehicle regulations. In our previous nonroad

[[Page 51151]]

engine emission-control programs, we have generally defined the term as 
follows:

    Used solely for competition means exhibiting features that are 
not easily removed and that would render its use other than in 
competition unsafe, impractical, or highly unlikely.

    If retained for the recreational vehicles program, the above 
definition may be useful for identifying certain models that are 
clearly used only for competition. For example, there are motorcycles 
identified as ``observed trials'' motorcycles which are designed 
without a standard seat because the rider does not sit down during 
competition. This feature would make recreational use unlikely:)
    Most motorcycles marketed for competition do not appear to have 
obvious physical characteristics that constrain their use to 
competition. Upon closer inspection, however, there are several 
features and characteristics for many competition motorcycles that 
would make recreational use unlikely. For example, motocross bikes are 
not equipped with lights or a spark arrester, which prohibits them from 
legally operating on public lands (e.g., roads, parks, state land, 
federal land, etc.).\151\ Vehicle performance of modern motocross bikes 
are so advanced (e.g., extremely high power-to-weight ratios and 
advanced suspension systems) that it is highly unlikely that these 
machines would be used for recreational purposes. In addition, 
motocross and other competition off-highway motorcycles typically do 
not come with a warranty, which would further deter the purchase and 
use of competition bikes for recreational operation.\152\ We believe 
these features should be sufficient in distinguishing competition 
motorcycles from recreational motorcycles. We are specifically 
proposing the following features as indicative of motorcycles used 
solely for competition: absence of a headlight or other lights; the 
absence of a spark arrester; suspension travel greater than 10 inches; 
and an engine displacement greater than 50 cc.
---------------------------------------------------------------------------

    \151\ A spark arrester is a device located in the end of the 
tailpipe that catches carbon sparks coming from the engine before 
they get out of the exhaust system. This is important when a bike is 
used off-highway, where hot carbon sparks falling in grassy or 
wooded areas could result in fires.
    \152\ Most manufacturers of motocross racing motorcycles do not 
offer a warranty. Some manufacturers do, however, offer very limited 
(1 to 3 months) warranties under special conditions.
---------------------------------------------------------------------------

    Vehicles not meeting the applicable criteria listed above would be 
excluded only in cases where the manufacturer has clear and convincing 
evidence that the vehicles for which the exemption is being sought will 
be used solely for competition. Examples of this type of evidence could 
be technical rationale explaining the differences between a competition 
and non-competition motorcycle, marketing and/or sales information 
indicating the intent of the motorcycle for competition purposes, or 
survey data from users indicating the competitive nature of the 
motorcycle.
    Although there are several features that distinguish competition 
motorcycles from recreational motorcycles, several parties have 
commented that they believe motorcycles designed for competition use 
may be used for recreational purposes, rather than solely for 
competition. This is of particular concern because competition 
motorcycles represent about 29 percent of total off-highway motorcycle 
sales or approximately 43,000 units per year. However, a study on the 
characterization of off-highway motorcycle usage found that there are 
numerous--and increasingly popular--amateur off-highway motorcycle 
competitions across the country, especially motocross.\153\ The 
estimated number of off-highway motorcycle competitors is as high as 
80,000. Since it is very common for competitive riders to replace their 
machines every one to two years, the sale of 43,000 off-highway 
competition motorcycles appears to be a reasonable number, considering 
the number of competitive participants. We are therefore confident 
that, although we are proposing to exclude a high percentage of off-
highway motorcycles as being competition machines, this definition is 
appropriate because a high percentage of these motorcycles are in fact 
used solely for competition.
---------------------------------------------------------------------------

    \153\ Characterization of Off-Road Motorcycle, ICF Consulting, 
September 2001, A-2000-1 document II-A-81.
---------------------------------------------------------------------------

    We are very interested in receiving input on the proposed 
competition exclusion. We request comment on ways the program can be 
established to exclude motorcycles used solely for competition, 
consistent with the Act, without excluding vehicles that are also used 
for other purposes. We specifically request comment on the identifying 
characteristics of competition vehicles in Sec. 1051.620 of the 
proposed regulations. Ideally, the program can be established in a way 
that provides reasonable certainty at certification. However, 
approaches could include reasonable measures at time of sale or in-use 
that would ensure that the competition exclusion is applied 
appropriately.

C . Proposed Standards

1. What Are the Proposed Standards and Compliance Dates?
    a. Off-highway Motorcycles and ATVs. We are proposing HC plus 
NOX and CO standards for off-highway motorcycles and ATVs. 
We expect the largest benefit to come from reducing HC emissions from 
two-stroke engines. Two-stroke engines have very high HC emission 
levels. Baseline NOX levels are relatively low for engines 
used in these applications and therefore NOX standards serve 
only to cap NOX emissions for these engines. Comparable CO 
reductions can be expected from both 2-stroke and 4-stroke engines, as 
CO levels are similar for the two engine types. We are also proposing 
averaging, banking and trading provisions for off-highway motorcycles 
and ATVs, as discussed below.
    2006 Standards. In the current off-highway motorcycle and ATV 
market, consumers can choose between two-stroke and four-stroke models 
in most sizes and categories. Each engine type offers unique 
performance characteristics. Some manufacturers specialize in two-
stroke or four-stroke models, while others offer a mix of models. The 
HC standard is likely to be a primary determining factor for what 
technology manufacturers choose to employ to meet emission standards 
overall. HC emissions can be reduced substantially by switching from 
two-stroke to four-stroke engines. Four-stroke engines are very common 
in off-highway motorcycle and ATV applications. Eighty percent of all 
ATVs sold are four-stroke. In addition, approximately 55 percent of 
non-competition off-highway motorcycles are four-stroke. Certification 
results from California ARB's emission-control program for off-highway 
motorcycles and ATVs, combined with our own baseline emission testing, 
provides ample data on the emission-control capability of four-stroke 
engines in off-highway motorcycles and ATV applications. Off-highway 
motorcycles certified to California ARB standards for the 2000 model 
year have HC certification levels ranging from 0.4 to 1.0 g/km. These 
motorcycles have engines ranging in size from 48 to 650 cc; none of 
these use catalysts.
    In determining what standards to set for off-highway motorcycles 
and ATVs, we considered several approaches. One approach was to 
establish separate standards for two-stroke and four-stroke engines. 
This would take into

[[Page 51152]]

consideration the fact that it could be expensive and difficult for 
two-stroke engines to meet the same emission levels as four-stroke 
engines. The problem with this approach is that two-stroke engines emit 
up to 25 times more HC emissions than four-stroke engines. Four stroke 
engines are currently being used on most, if not all, of the different 
subclasses of ATVs and off-highway motorcycles that we would be 
regulating, and we believe they can be used on all such subclasses. We 
are concerned that setting lesser standards for two-stroke engines 
could possibly result in the increase of two-stroke engine usage at the 
expense of four-stroke engines, which would result in a greater level 
of emissions and could miss the opportunity for a more appropriate and 
cost-effective standard. As a result, we proposing an approach that 
would require a single set of off-highway motorcycle and ATV standards 
for all engine types, similar to California ARB. We believe that this 
approach is consistent with our statutory requirement to propose 
standards that achieve the greatest emission reduction achievable, 
considering cost, noise, and safety factors.We ask for comment on this 
proposed approach and the rationale underlying this approach.
    In 1994, California ARB adopted emission standards for off-highway 
motorcycles and ATVs. At the time, these standards were stringent 
enough that manufacturers were unable to provide performance-oriented 
off-highway motorcycles and ATVs that met the standards. As a result, 
ARB allowed manufacturers to sell non-compliant off-highway motorcycles 
and ATVs, resulting in approximately a third of the off-highway 
motorcycles and ATVs sold being compliant with the standards. Four-
stroke engine technology has advanced considerably since the ARB 
regulations went into effect. Manufacturers are now capable of offering 
four-stroke engines that provide excellent performance. However, this 
performance can be achieved only as long as manufacturers are allowed 
to operate four-stroke engines with a slightly rich air and fuel 
mixture, which can result in somewhat higher HC and CO emissions. 
However, the HC emissions from four-stroke engines even when they 
operate rich are significantly lower than those from two-stroke 
engines. The market appears to be shifting to four-stroke technology.
    As discussed above in Section # B.1.4, the CAA requires us to 
exempt from emission standards off-highway motorcycles and ATVs used 
for competition. We expect several competition off-highway motorcycle 
models, most equipped with two-stroke engines, to continue to be 
available. We are concerned that setting standards as stringent as 
ARB's would result in a performance penalty for four-strokes which 
could encourage consumers who want performance-oriented off-highway 
motorcycles to purchase competition vehicles in lieu of purchasing 
compliant machines that don't provide the desired performance. That is 
why we are proposing emission standards that are slightly less 
stringent than the California ARB. We believe that our proposed 
emission standards would allow the continued advancement of four-stroke 
technology and are a good compromise between available emission-control 
technology, cost, and vehicle performance.
    We are proposing exhaust emission standards for off-highway 
motorcycles and ATVs to take effect in the 2006 model year. We would 
allow a short phase-in of 50-percent implementation in the 2006 model 
year with full implementation in 2007. These standards apply to testing 
with the highway motorcycle Federal Test Procedure (FTP) test cycle. 
For HC+NOX emissions, the standard is 2.0 g/km (3.2 g/mi). 
For CO emissions, the standard is 25.0 g/km (40.5 g/mi). These emission 
standards would allow us to set near-term requirements to introduce the 
low-emission technologies for substantial emission reductions with 
minimal lead time. We expect manufacturers to meet these standards 
using four-stroke engines with some low-level modifications to fuel-
system calibrations. These systems would be similar to those used for 
many years in highway applications, but not necessarily with the same 
degree of sophistication.
    We considered proposing several alternative sets of standards. The 
first alternative considered was to set the HC+NOX standard 
at a level higher than 2.0 g/km, since this standard could prove to be 
difficult for a two-stroke engine to achieve. However, since two-stroke 
engines emit so much higher levels of HC than four-stroke engines, and 
HC emission-control technology for two-stroke engines is more expensive 
and complicated, we would expect that such a standard would have to be 
considerably higher than 2.0 g/km, perhaps in the range of 10 to12 g/
km. Even a standard this high would still likely require secondary air 
injection and a catalytic converter for most two-stroke engines to 
comply. We believe that the concerns over high catalyst temperatures 
and potential negative impacts on engine performance would most likely 
result in manufacturers choosing to convert two-stroke applications to 
four-stroke, especially since four-stroke engines are already so 
prevalent in off-highway motorcycle and ATV applications. In addition, 
we believe that the cost differential between air injection and a 
catalyst for a two-stroke engine and using a four-stroke engine would 
be minimal. We request comment on such a standard, and on the costs and 
emissions benefits associated with that approach. Commenters should 
include a recommendation for the level of the standard.
    We also considered setting the HC+NOX standard at a 
level lower than 2.0 g/km, since it is possible to use a catalyst on a 
four-stroke engine and achieve lower emission levels. We decided that 
for off-highway motorcycles, the technologies necessary to meet 
emission standards lower than our proposed level of 2.0 g/km for 
HC+NOX could be prohibitive due to several factors such as 
limited catalyst locations that are considered safe to the operator and 
potential negative engine performance impacts (see our discussion on 
proposed 2009 standards for more detail). These issues are not as 
important for ATVs. However, it would be difficult to implement them by 
the 2006 model year since 20 percent of the fleet is still two-stroke 
and manufacturers would need time to convert their fleet to four-
stroke. Therefore, we are not proposing a HC+NOX standard 
lower than 2.0 g/km for off-highway motorcycles and are instead 
proposing a second phase of standards for ATVs in the 2009 model year. 
We are asking for comment on this aspect of the proposal, and on such a 
standard.
    Some youth-oriented off-highway motorcycles and ATVs with small 
engine displacements have engine governors limiting vehicle speeds. In 
the case of ATVs, the Consumer Product Safety Commission (CPSC) limit 
youth ATVs with engine displacements between 50 and 100 cc to a top 
speed of 35 mph. Similarly, ATVs with engine displacements of 50 cc and 
less are limited to a top speed of 15 mph. Many small off-highway 
motorcycles use the same governors. For vehicles with a displacement 
greater than 50 cc, we believe the FTP is an appropriate test cycle 
because of the transient capability of these vehicles. However, for the 
vehicles with engine displacements of 50 cc and less, the governed top 
speed of 15 mph restricts the operation of these vehicles to either 
idle or the governed wide-open throttle setting, similar to a lawn 
mowers. It may not make sense to require these small-displacement 
vehicles to be tested over

[[Page 51153]]

the FTP. Therefore, we propose that off-highway motorcycles and ATVs 
with an engine displacement of 50 cc or less have the option to certify 
to the proposed off-highway motorcycle and ATV standards discussed 
above or to meet the Phase 1 Small SI emission standards for non-
handheld Class I engines. We request comment on this option.
    ATV manufacturers have requested that we allow them the option of 
certifying ATVs to the same optional exhaust emission standards as 
allowed by California ARB. California allows ATVs to be optionally 
tested using the California ARB utility engine test cycle (SAE J1088) 
and procedures. In California, manufacturers may use the J1088 engine 
test cycle to meet the California Small Off-Road Engine emission 
standards. Manufacturers were required to submit some emission data 
from the various modes of the J1088 test cycles to show that emissions 
from these modes were comparable to FTP emissions. California allowed 
this option because the goal of their program was to encourage the use 
of four-stroke engine technology in ATVs. The lawn and garden test 
cycle and standards were considered stringent enough to encourage 
manufacturers to switch from two-stroke engines to four-stroke engines. 
We continue to be concerned that the J1088 test cycle doesn't represent 
actual ATV operation, but for our Phase 1 standards, our goal is to 
encourage manufacturers to switch from two-stroke to four-stroke engine 
technology. Therefore, to facilitate this phase-in we are proposing 
here that manufacturers may optionally certify ATVs using the 
California utility cycle and standards as shown in Table VI.C-1 instead 
of the FTP standards of 2.0 g/km HC+NOX and 25 g/km CO 
discussed above.

       Table VI.C-1.--California Utility Engine Emission Standards
------------------------------------------------------------------------
     Engine displacement            HC+NOX                 CO
------------------------------------------------------------------------
Less than 225 cc.............  12.0 g/hp-hr...  300 g/hp-hr
                               (16.1 g/kW-hr).  (400 g/kW-hr)
Greater than 225 cc..........  10.0 g/hp-hr...  300 g/hp-hr
                               (13.4 g/kW-hr).  (400 g/kW-hr)
------------------------------------------------------------------------

    Some manufacturers have expressed concern about the stringency of 
the proposed standards for some small displacement (e.g., less than 80 
cc) youth off-highway motorcycles and ATVs. They have also stated that 
some of these small vehicles may have a difficult time operating over 
the FTP cycle. Therefore, we request comment on the ability of small 
displacement youth off-highway motorcycles and ATVs to operate over the 
FTP test cycle and meet our proposed emission standards.
    2009 Standards. As stated above, we expect manufacturers to meet 
the proposed 2006 standards by using four-stroke engines with minor 
modifications to fuel calibrations. Several technologies are available 
to further reduce emissions from off-highway motorcycles and ATVs. The 
most likely choices would be the use of electronic fuel injection, 
secondary air injection into the exhaust system, and catalytic 
converters. Although these technologies would be capable of further 
emission reductions, there are potential concerns with applying each of 
these technologies to off-highway motorcycles. The complexity and 
increased cost of electronic fuel injection makes it problematic for 
off-highway motorcycle applications. Off-highway motorcycle 
manufacturers and enthusiasts have expressed concern over possible leg 
burns resulting from catalysts since off-highway motorcycles have 
exhaust systems that run higher up on the frame. They are concerned 
that if a rider were to fall over with the motorcycle on top of them, 
the hot catalyst could burn the rider. Catalysts and secondary air also 
have the potential to adversely affect engine performance. Since 
motorcycle performance is paramount for off-highway motorcycles, any 
technologies that could impact performance or pose a perceived safety 
threat could encourage consumers to purchase high-performance 
competition motorcycles rather than recreational motorcycles. For ATVs, 
however, the design of the vehicle is more receptive to placing a 
catalyst on the exhaust. Since the engine is further inside the vehicle 
with numerous plastic fairings around the engine, the operator's legs 
are far away and shielded from the exhaust pipe. ATV engines also tend 
to have lower power output than off-highway motorcycle engines, making 
the use of secondary air or catalysts more tolerable.
    Since ATV design and use are more conducive to these more advanced 
emission-control technologies than off-highway motorcycles, we believe 
it is appropriate to pursue more advanced emission-control technologies 
for ATVs. We also note that the usage rate and population of ATVs is 
growing substantially compared to off-highway motorcycles. We expect 
that, with additional time to optimize designs to better control 
emissions, manufacturers of ATVs should be able to meet more stringent 
emission standards. Starting with the 2009 model year for ATVs only, we 
propose to apply emission standards of 1.0 g/km (1.6 g/mi) for 
HC+NOX emissions and 25 g/km (40.5 g/mi) for CO emissions. 
As with the Phase 1 standards, we are proposing a two-year phase-in, 
with 50 percent of models complying in 2009 and all models complying in 
2010.
    We are proposing that ATVs would be required to meet a 1.0 g/km 
HC+NOX standard because we believe it can be met by using 
four-stroke engines with secondary air injection. Secondary air 
injection is a common HC emission-control technology used on highway 
motorcycles. It's use is more transparent to the ATV operator than a 
catalyst and is a relatively inexpensive means of achieving significant 
emission reductions. Depending on several variables, some models may 
have a more difficult time meeting the Phase 2 standards without the 
use of a catalyst. Therefore, while we expect ATV manufacturers to meet 
the Phase 2 standards for many of their models using four-stroke 
engines with air injection, they may also choose to use a combination 
of several possible emission-control technologies, including base-
engine modifications, improved fuel-system calibrations, electronic 
fuel injection, and catalytic converters. Off-highway motorcycles would 
continue to meet the 2006 standards described above.
    Several ATV manufacturers have expressed concern over being able to 
meet tighter HC+NOX standards while still meeting the 
proposed CO standards. They have asked us to increase or even eliminate 
the CO standard for Phase 2. Therefore, we request comment on whether 
the CO standard for Phase 2 should be increased from the proposed level 
of 25 g/km.

[[Page 51154]]

    We are proposing to discontinue the provision allowing 
manufacturers of ATVs the option to certify to the California utility 
engine test procedure and emission standards for Phase 2 ATVs. We 
propose to require that manufacturers test all Phase 2 ATVs with the 
highway motorcycle FTP test procedure. Manufacturers have expressed 
concerns over the cost of building emission test cells equipped with 
chassis dynamometers and the representativeness of the FTP relative to 
in-use ATV operation. They argue that the FTP is no more representative 
of ATV operation than the steady-state J1088 engine test cycle. While 
it may be true that the chassis-based FTP test cycle is not fully 
representative of in-use ATV operation, there is currently very limited 
data addressing this. California is in the process of gathering in-use 
operating data for ATVs. Preliminary examination of that data is too 
inconclusive to determine whether the FTP is adequately representative 
of in-use ATV operation. It does indicate that the five steady-state 
modes captured in the J1088 cycle are not adequately representative of 
ATV operation. It has long been known that ATVs experience considerable 
transient operation, similar to automobiles and motorcycles. The 
California data support this view. The chassis-based FTP used for 
certification of motorcycles, while possibly not ideal for ATVs, 
therefore appears to be more representative of ATV operation than the 
J1088 test cycle. With this in mind, we request comment on the 
possibility of developing an alternate test cycle and procedure for 
ATVs that would be more representative of typical ATV operation. An 
alternate test cycle could be chassis-based or engine-based, but would 
need to incorporate transient operation. If an acceptable alternative 
cycle is developed, we would reassess whether our proposed emission 
test procedure for Phase 2 would still be appropriate.
    As with the 2006 proposed emission standards, we request comment on 
the ability of small-displacement ATVs to operate over the FTP test 
cycle and meet our proposed emission standards.
    We request comment on whether a Phase 2 standard for ATVs is 
appropriate, and on the proposed level of the Phase 2 standard. We also 
request comment on technology, cost, and safety issues associated with 
a possible second phase of off-highway motorcycle emission standards.
    b. Snowmobiles. We are proposing CO and HC standards for 
snowmobiles. We are requesting comment on whether we should set 
standards for PM and NOX emissions from snowmobiles, and 
what appropriate levels would be. As previously discussed, snowmobile 
engines are almost exclusively two-stroke. As such, they emit high 
levels of HC and PM. However, we are not proposing PM standards at this 
time for snowmobiles, because limits on HC emissions will serve to 
simultaneously limit PM. We considered adding a regulatory requirement 
for manufacturers to measure and report PM emission rates along with 
their other certification data, but we did not include such a 
requirement in the proposed regulations. We are most concerned about 
the cost to manufacturers if they were required to build PM measurement 
capabilities into all of their test facilities. We request comment on 
the need for PM emission data, and whether it is necessary to put a 
requirement in the regulations.
    We are not proposing NOX standards for snowmobiles 
because they are primarily operated during the winter months when ozone 
is not a concern. However, we are proposing that manufacturers measure 
NOX emission rates and report them in their applications for 
certification. We believe that this would provide necessary 
information, but would not be a significant burden for manufacturers. 
We request comment on this element of the proposal.
    2006 Standards. We are proposing standards for snowmobiles to take 
effect for all models starting in the 2006 model year: 275 g/kW-hr (205 
g/hp-hr) for CO and 100 g/kW-hr (75 g/hp-hr) for HC. As discussed 
below, we are proposing an emission-credit program with these 
standards. Thus, we expect manufacturers to meet these proposed 
standards using a variety of technologies and strategies across their 
product lines. Snowmobiles pose some unique problems for implementing 
emission-control technologies and strategies. Snowmobiles are very 
sensitive to weight, power, and packaging constraints. Current 
snowmobile designs have very high power-to-weight ratios, allowing for 
excellent performance. Manufacturers have stated that if snowmobile 
performance declines, customers will either stop purchasing 
snowmobiles, or will replace original equipment (e.g., emission-control 
technology) with uncertified aftermarket parts. The desire for low 
weight is perceived as a safety issue, since operators may have to drag 
their sleds out of deep snow. Styling, especially very low-profile 
hoods, has also become paramount among snowmobile enthusiasts. All 
these concerns mean that it may be initially more difficult for 
manufacturers to develop a broad range of technologies capable of 
significant emission reductions. Some manufacturers may aggressively 
pursue clean carburetion and associated engine modifications and apply 
those uniformly across their entire product line. Others may choose to 
apply more advanced technologies such as direct or semi-direct 
injection to some of their more expensive, high-performance sleds and 
be less aggressive in pursuing emission reductions from their lower-
priced offerings in order to optimize the fit of different technologies 
(and their associated costs) to the various product offerings. We also 
expect some manufacturers to offer some models featuring four-stroke 
engines.
    We are proposing to require all snowmobiles to meet the proposed 
first phase of emission standards beginning with the 2006 model year. 
We request comment on options to ease the transition to the new 
standards, as described in Section VI.C.2.b.
    Due to the unique performance requirements for snowmobiles, we 
believe our proposed 2006 standards would be challenging for 
manufacturers and would result in cleaner snowmobiles. While some 
advanced technologies such as two-stroke direct injection and four-
stroke engines, would be found in some models, many models would still 
be equipped with two-stroke engines with relatively minor engine 
modifications resulting in minimum emission reductions, while some 
models may not even have any emission controls.
    2010 Standards. We have had many discussions with manufacturers 
about emission control technologies. We have also closely examined the 
certification emission results of outboard boat engines and personal 
watercraft (PWC) equipped with two-stroke direct injection and four-
stroke engines. It is our belief that with sufficient lead time, 
manufacturers can successfully implement these technologies across a 
much broader range of their snowmobile fleet. Manufacturers have 
indicated to us that two-stroke engines equipped with direct fuel 
injection systems could reduce HC emissions by 70 to 75 percent and 
reduce CO emissions by 50 to 60 percent. Certification results for 1999 
and 2000 model year outboard engines and PWC support the manufacturers 
projections. In addition, two snowmobile manufacturers plan to sell a 
four-stroke model next year. These manufacturers indicated that their 
machines are capable of HC reductions in the 70 to 95 percent range, 
with CO reductions of 60 to 80 percent. Therefore, we believe that with

[[Page 51155]]

sufficient time it is feasible for snowmobile manufacturers to achieve 
a greater penetration of advanced emission control technologies 
throughout their fleets and reduce emissions further.
    We are, therefore, proposing a second phase of average standards to 
take effect with the 2010 model year. The proposed 2010 average 
standards are 200 g/kW-hr (149 g/hp-hr) for CO and 75 g/kW-hr (56 g/hp-
hr) for HC. These standards represent a 50% reduction in HC and CO 
emissions from the current average baseline levels. We believe that 
implementation in 2010 would provide sufficient time for advanced 
technologies to be more broadly available. We also believe that 
manufacturers will have had adequate time to make appropriate 
modifications to snowmobile designs (e.g., styling and packaging 
issues) so they can more broadly spread advanced emission-control 
technologies across their product lines. We expect these standards 
would be met through the application of direct injection two-stroke 
technology and, to a much lesser extent, four-stroke technology, to 
cover about half of overall production, with the remaining models 
utilizing clean carburetion and electronic fuel injection, along with 
the associated engine modifications. The actual mix of technologies 
used would be the manufacturers choice, but the data mentioned above 
gives us reason to believe that the basic technology exists to meet the 
standard based on a 50-percent reduction. We believe that the lead time 
provided to meet these standards is sufficient to overcome the 
technical hurdles discussed below in Section VI.F.2.
    We request comment on our second phase of snowmobile standards. In 
particular, we are interested in comments on the level of the 
standards, our technical assessment and potential fleet mix 
projections, any safety, reliability, or performance considerations 
associated with adoption of four-stroke technology. We also request 
comment on the cost of adopting such standards and the effects on sales 
and consumer satisfaction. We are also interested in further 
information addressing the benefits associated with such a standard.
    c. Noise Standards. The Noise Control Act (42 U.S.C. 4901 et seq.) 
authorizes EPA to establish noise emission standards for motorized 
equipment. Under this authority, we established noise emission 
standards for motorcycles and three-wheeled ATVs in 40 CFR Part 205 (45 
FR 86708, December 31, 1980). These regulations include voluntary ``Low 
noise emission product standards'' for motorcycles Sec. CFR 
205.152(c)).
    Prior to proposal, we received public comments requesting that we 
consider setting new noise standards for recreational vehicles. Noise 
from these vehicles in public parks or other public lands can adversely 
impact other activities. However, at this time we do not have funding 
to pursue noise standards for nonroad equipment that does not have an 
existing noise requirement.
2. Are There Opportunities for Averaging, Emission Credits, or Other 
Flexibilities?
    a. Averaging, Banking and Trading. Historically, voluntary 
emission-credit programs have allowed a manufacturer to certify one or 
more engine families at emission levels above the applicable emission 
standards, provided that the increased emissions are offset by one or 
more engine families certified below the applicable standards. With 
averaging alone, the average of all emissions for a particular 
manufacturer's production must be at or below that level of the 
applicable emission standards. We are proposing separate emission-
credit programs for snowmobiles, off-highway motorcycles, and ATVs. We 
are proposing an emissions credit program for the optional Phase 1 ATV 
engine-based standards as well as the chassis-based standards. We 
request comment on whether or not averaging, banking, and trading adds 
value to the engine-based option considering the level of the standards 
being proposed.
    In addition to the averaging program just described, the proposed 
emission-credit program contains banking and trading provisions, which 
allow manufacturers to generate emission credits and bank them for 
future use in their own averaging program or sell them to another 
entity. We are not proposing a credit life limit or credit discounting 
for these credits. Unlimited credit life and no discounting increases 
the incentive to introduce the clean technologies needed to gain 
credits. In order to generate credits, the average emissions level must 
be below the standard, so the credits would be the result of reductions 
in excess of those required by the standards.
    We are seeking comment on whether or not a credit life limit (e.g., 
three years) is needed to ensure that manufacturers do not have the 
opportunity to, in effect, postpone the Phase 2 standards for several 
years for one or more vehicle families. Unlimited credit life has the 
potential to interfere with the timely and orderly phase-in of future 
standards, especially if the manufacturer is able to bank large amounts 
of credits during intervening years. This is a concern here because the 
proposed level of the Phase 1 standards may provide considerable 
opportunity for credit generation for manufacturers that can market a 
significant number of relatively clean models early in the program. For 
example, some 4-stroke ATV models are likely to have emissions levels 
below the Phase 1 standards, allowing for considerable credit 
generation.
    We also request comment on how this issue may differ for credits 
generated under Phase 2, where the affect on the next tier of standard 
is not a complicating issue. We would have the opportunity to consider 
and reassess such a provision if and when we were to propose a third 
phase of standards. In addition, we request comments on an alternative 
approach of not allowing credits generated in Phase 1 to be used in 
Phase 2.
    For off-highway motorcycles and ATVs, we are proposing to allow 
averaging for the HC plus NOX standard. Off-highway 
motorcycle and ATVs would be averaged separately to avoid providing an 
advantage in the market to companies that offer both types of products 
over those that produce only one type. In addition, there are differing 
degrees of stringency in the standards for ATVs and off-road 
motorcycles long-term and we do not want off-road motorcycle credits to 
dilute the effectiveness of the Phase 2 ATV standards. Also, ATVs 
certified to the chassis-based standards and engine-based standards 
would be considered separate averaging groups with no credit exchanges 
between the two. We are not allowing credit exchanges between engine 
and chassis-based testing because there is little, if any, correlation 
between the two test cycles. Without a strong correlation, it is not 
possible to establish an exchange rate between the two programs. We are 
not proposing a CO averaging, banking, and trading program because the 
level of the standard does not appear to add substantial technological 
challenge to the program, especially for Phase 1. The usefulness of CO 
averaging may not warrant the additional complexity of an averaging 
program. We request comment on the need for a CO ABT program for Phase 
2, and on the proposed approach for separate ABT programs.
    For the Phase 2 ATV standards, we are proposing a maximum allowable 
Family Emission Limit (FEL) of 2.0 g/km HC plus NOX (the 
Phase 1 standard). In several other ABT programs, we have

[[Page 51156]]

established a cap at the previous emission standard to ensure a minimum 
level of control long term. We request comment on whether or not an FEL 
limit is appropriate to ensure a minimum level of control for all 
models. Please see the discussion on this issue in the recreational 
marine diesel section of this document for more information. We request 
comment specifically on how this approach could affect product 
offerings and consumer choice. We also request comment on the level of 
the emissions cap and alternative levels.
    For snowmobiles, we are proposing an emission-credit program for 
both CO and HC. We are proposing that maximum allowable Family Emission 
Limits be set at the current average baseline emission levels of 400 g/
kW-hr (300 g/hp-hr) CO and 150 g/kW-hr (110 g/hp-hr) HC. This cap 
ensure a minimum level of control for each snowmobile certified under 
the program. We believe that this is appropriate due to the potential 
for personal exposure to very high levels of emissions as well as the 
potential for high levels of emissions in areas where several 
snowmobiles are operated in a group. We request comment on the level of 
the cap for Phase 1. We also request comment on whether it would be 
appropriate to set more stringent maximum allowable Family Emission 
Limits for 2010 and later model year snowmobiles, for example, at the 
levels of the 2006 standards. We are interested in comment on any 
potential impacts a more stringent cap may have on the variety of 
products available to the consumer. We are proposing that manufacturers 
may not both generate and use credits for the different pollutants 
within a given engine family.
    We request comment on all aspect of the proposed ABT program, 
including on the administrative and liability provisions provided in 
the proposed regulatory text.
    b. Early Credits and Alternative Phase-in Schedule. We are 
interested in but are not specifically proposing opportunities for 
early credits, and other flexibilities, as discussed below. We are 
proposing no phase-in schedule for snowmobiles and a two-year phase-in 
schedule for off-road motorcycles and ATVs. While we believe adequate 
lead-time is provided to meet the proposed standards, we recognize that 
some flexibility in timing could help manufacturers transition their 
full product line to new standards. We are requesting comment on three 
specific approaches to providing additional flexibility to 
manufacturers, described below. We are interested in how these 
provisions could be established in a way that would be environmentally 
neutral and yet also provide manufacturers with flexibility.
    We are not proposing provisions for early generation of credits, 
because we have not been able to resolve our concerns about substantial 
windfall credits (credits generated relatively easily from baseline 
engines). For example, there could be substantial credits available for 
snowmobile manufacturers that have developed four-stroke snowmobile 
models. Also, some baseline ATV and off-highway motorcycles could also 
have relatively low emission levels. However, as discussed below, we 
are seeking comment on approaches for early credits that could address 
concerns regarding windfall credits.
    Under an early emission-credit approach, manufacturers could earn 
credits by reducing emissions earlier than required, then use those 
credits after the program begins. Because there is a wide variation in 
baseline emission levels, we would need to consider taking steps to 
ensure that manufacturers do not generate windfall credits. One way to 
address the concern for windfall credits would be to allow credits only 
for emission reductions below the proposed standards and limit the life 
of those credits to three years. We believe this approach may ensure 
that manufacturers would generate credits only through the use of 
cleaner technologies. It also ensures that the credits would not 
adversely impact the long-term effectiveness of the program. This 
approach would provide incentive for manufacturers to pull ahead 
significantly cleaner technologies. We request comment on early credits 
for CO and HC emissions for snowmobiles and HC+NOX emissions 
for off-road motorcycles and ATVs, and a requirement that the credit-
generating engines also meet the standards for the other regulated 
pollutants.
    Under the second approach, an alternative phase-in schedule, 
manufacturers would be provided with a one-for-one credit in the phase-
in schedule for selling complying recreational vehicles prior to the 
start of the program. Manufacturers who pull ahead a percentage of 
their product line would get a phase-in credit to be used during the 
initial years of the program (i.e., 2008 and earlier). For example, if 
a snowmobile manufacturer phased in 10 percent of their product line 
early in 2005, they could then phase-in 90 percent, rather than 100 
percent, of their product line in 2006. We would expect this to be a 
transitional provision limited to the first few years of the program 
(all vehicles would need to be certified by 2008). We could implement 
the program through a calculation based on the sum of the phase-in 
percentages over a series of model years. For example, for snowmobiles, 
the sum of the phase-in percentages over model years 2004-2008 could be 
required to be equal to or greater than 300% (100% each for 2006, 2007, 
and 2008). For off-road motorcycles and ATVs, the calculation would 
take into account the 50/100 percent phase-in schedule for 2006/2007, 
with a requirement that the sum of the phase-in be equal to or greater 
than 250 percent. For example, an alternative phase-in schedule of 25/
50/75/100 percent in 2005 through 2008 would be acceptable. The 
calculation of the percentage phase-in would be the same as that for 
the standard program.
    An alternative to early banking or a revised phase-in would be 
``family-banking.'' Under the ``family-banking'' concept, we would 
allow manufacturers to certify an engine family early. For each year of 
certifying an engine family early, the manufacturer would be able to 
delay certification of a smaller engine family by one year. This would 
be based on the actual sales of the early family and the projected 
sales volumes of the late family; this would require no calculation or 
accounting of emission credits.
    We request comment on the above approaches or any other approach 
that would help manufacturers bring the product lines into compliance 
to the proposed standards without compromising emissions reductions 
(see Sec. 1048.145 of the proposed regulations). We request comment on 
the merits of the various approaches noted above, and others commenter 
may wish to suggest. We request that commenters provide detailed 
comments on how the approaches should be set up, enhanced, or 
constrained to ensure that they serve their purpose without diminishing 
the overall effectiveness of the standards.
3. Is EPA Proposing Voluntary Low-Emission Standards for These Engines?
    We are proposing a Voluntary Low-Emission Standards program for 
recreational vehicles. The purpose of this program is two-fold; first, 
to encourage new emission-control technology and second, to aid the 
consumer in choosing clean technologies. At the point of purchase, 
manufacturers could add a tag designating qualifying vehicles to inform 
consumers which engines are certified by this program and listing the 
certification levels of the vehicles. In addition, we are suggesting 
that manufacturers provide information about the program in the vehicle

[[Page 51157]]

Owner's Manual. To qualify for this program, engines must meet the 
voluntary standards described below. Manufacturers choosing to sell 
engines with this designation may generate certification emission 
credits from these technologies.
    The general purpose of the Voluntary Low-Emission Standards program 
is to provide incentives to manufacturers to produce clean products and 
thus create market choices for consumers to purchase these 
products.\154\ We believe that EPA designation of clean technologies 
through this voluntary program can provide useful information to 
consumers. We request comment on the merits and design of the program 
and also on additional measures we can take to encourage this program 
and prohibit misuse.
---------------------------------------------------------------------------

    \154\ The snowmobile industry (see docket item II-G-221) and a 
group of public health and environmental organizations (see docket 
item II-G-139) have both expressed their general support for 
labeling programs that can provide information on the environmental 
performance of various products to consumers.
---------------------------------------------------------------------------

    We are proposing Voluntary Low-Emission Standards for off-highway 
motorcycles and ATVs of 0.8 g/km (1.3 g/mi) HC+NOX and 12 g/
km (24.3 g/mi) CO. These emission levels are consistent with the 2008 
standards proposed by California ARB for highway motorcycles. We 
believe that off-highway motorcycles and ATVs could meet these 
voluntary standards by employing some of the same technologies 
manufacturers will use to meet the 2008 California emission standards 
for highway motorcycles. We request comment on the level of the 
standards and the need for lower voluntary standards for Phase 2 of the 
ATV program.
    We are proposing Voluntary Low Emission Standards for snowmobiles 
of 200 g/kW-hr (149 g/hp-hr) for CO and 75 g/kW-hr (56 g/hp-hr) for HC 
through 2009 model year snowmobiles. These are the same levels as our 
proposed phase 2 standards. For the 2010 model year and later, the 
standards are 120 g/kW-hr (89 g/hp-hr) for CO and 45 g/kW-hr (34 g/hp-
hr) for HC for any snowmobiles. We believe these voluntary standards 
could be met with either direct injection two-stroke, or four-stroke 
technology. Snowmobiles included in this program may generate credits 
for use in the proposed emission-credit program. We request comment on 
the level of the voluntary standards being proposed and whether we 
should consider more or less stringent voluntary standards for 
snowmobiles.
4. What Durability Provisions Apply?
    We are proposing several additional provisions to ensure that 
emission controls would be effective throughout the life of the 
vehicle. This section discusses these proposed provisions for 
recreational vehicles. More general certification and compliance 
provision, which would apply across the different vehicle categories in 
this proposal, are discussed in Sections III and VII, respectively.
    a. How long would my engine have to comply? We propose to require 
manufacturers to produce off-highway motorcycle and ATV engines that 
comply over their full useful life, where useful life is the period 
that lasts either 5 years or until the vehicle accumulates 30,000 
kilometers, whichever occurs first. We would consider this 30,000-
kilometer value to be a minimum kilometer value for useful life, and 
would require manufacturers to comply for a longer period in those 
cases where they design their vehicles to be operated longer than 
30,000 kilometers.
    For snowmobiles, we are proposing a minimum useful life of 5 years 
or 300 hours of operation, whichever occurs first. We based these 
values on discussions with manufacturers regarding typical snowmobile 
life, and on emission-modeling data regarding typical snowmobile usage 
rates.\155\
---------------------------------------------------------------------------

    \155\ EPA memorandum, ``Emission Modeling for Recreational 
Vehicles,'' from Linc Wehrly to Docket A-98-01, November 13, 2000.
---------------------------------------------------------------------------

    We request comment on the proposed useful life values. Any comments 
in support of a different useful life should include documentation of 
typical life and operation.
    b. Would I have to warrant my engine's emission controls? We are 
proposing a design/defect warranty period of 3 years, with an hours or 
kilometers limit equal to half the useful life interval proposed above. 
During this time manufacturers would repair or replace free of charge 
emission-related components that fail. Because this warranty 
requirement applies only for emission-related components, manufacturers 
are not responsible for routine maintenance that is currently performed 
for uncontrolled engines (e.g., changing oil filters or carburetors).
    c. How would I demonstrate emission durability during 
certification? For off-highway motorcycles and ATVs, we are proposing 
the same durability demonstration requirements that apply to highway 
motorcycles. This includes a requirement to run the engines long enough 
to test for exhaust emissions at the end of the useful life. This 
allows manufacturers to generate a deterioration factor that helps 
ensure that the engines will continue to control emissions over a 
lifetime of operation.
    d. What maintenance would be allowed during service accumulation? 
For vehicles certified to the proposed useful life, no emission-related 
maintenance would be allowed during service accumulation. The only 
maintenance that would be allowed is regularly scheduled maintenance 
unrelated to emissions that is technologically necessary. This could 
typically include changing engine oil, oil filter, fuel filter, and air 
filter.
5. Do These Standards Apply to Alternative-Fueled Engines?
    These proposed standards apply to all spark-ignited recreational 
vehicles, without regard to the type of fuel used. However, because we 
are not aware of any alternative-fueled recreational vehicles sold into 
the U.S. market, we are not proposing extensive special provisions to 
address them at this time.
6. Is EPA Controlling Crankcase Emissions?
    We are proposing to require that new off-highway motorcycles and 
ATVs be built to prevent crankcase emissions. This means that engines 
would no longer emit crankcase vapors directly to the atmosphere. The 
typical control strategy is to route the crankcase vapors back to the 
engine intake. This proposal is consistent with our previous regulation 
of crankcase emissions from such diverse sources as highway 
motorcycles, outboard and personal watercraft marine engines, 
locomotives, and passenger cars. We have data from California ARB 
showing that a performance-based four-stroke off-highway motorcycle 
experienced considerably higher tailpipe emission results when 
crankcase emissions were routed back into the intake of the engine, 
illustrating the potentially high levels of crankcase emissions that 
exist.\156\ We are also proposing closed crankcases on new snowmobiles. 
This requirement is only relevant for four-stroke snowmobiles, however, 
since two-stroke engines, by virtue of their operation, have closed 
crankcases. Information on the costs and benefits of this action can be 
found in the Draft Regulatory Support Document.
---------------------------------------------------------------------------

    \156\ Memo to Docket from Linc Wehrly, dated September 10, 2001. 
(A-2000-1) document II-B-25.
---------------------------------------------------------------------------

D. Proposed Testing Requirements

1. What Duty Cycles Are Used To Measure Emissions?
    Testing a vehicle or engine for emissions consists of exercising it 
over

[[Page 51158]]

a prescribed duty cycle of speeds and loads, typically using a chassis 
or engine dynamometer. The nature of the duty cycle used for 
determining compliance with emission standards during the certification 
process is critical in evaluating the likely emission performance of 
engines designed to those standards. Duty cycles must be relatively 
comparable to the way equipment is actually used because if they are 
not, then compliance with emission standards would not assure that 
emissions from the equipment are actually being reduced in use as 
intended.
    a. Off-highway Motorcycles and ATVs. For off-highway motorcycles 
and ATVs, we propose that the current highway motorcycle test procedure 
be used for measuring emissions. The highway motorcycle test procedure 
is the same test procedure as used for light-duty vehicles (i.e., 
passenger cars and trucks) and is referred to as the Federal Test 
Procedure (FTP). The FTP for a particular class of engine or equipment 
is actually the aggregate of all of the emission tests that the engine 
or equipment must meet to be certified. However, the term FTP has also 
been used traditionally to refer to the exhaust emission test based on 
the Urban Dynamometer Driving Schedule (UDDS), also referred to as the 
LA4 (Los Angeles Driving Cycle #4). The UDDS is a chassis dynamometer 
driving cycle that consists of numerous ``hills'' which represent a 
driving event. Each hill includes accelerations, steady-state 
operation, and decelerations. There is an idle between each hill. The 
FTP consists of a cold start UDDS, a 10 minute soak, and a hot start. 
The emissions from these three separate events are collected into three 
unique bags. Each bag represents one of the events. Bag 1 represents 
cold transient operation, bag 2 represents cold stabilized operation, 
and bag 3 represents hot transient operation.
    Highway motorcycles are divided into three classes based on engine 
displacement, with Class I (50 to 169 cc) being the smallest and Class 
III (280 cc and over) being the largest. The highway motorcycle 
regulations allow Class I motorcycles to be tested on a less severe 
UDDS cycle than the Class II and III motorcycles. This is accomplished 
by reducing the acceleration and deceleration rates on some of the more 
aggressive ``hills.'' We propose that this same class/cycle distinction 
be allowed for off-highway motorcycles and ATVs. In other words, off-
highway motorcycles and ATVs with an engine displacement between at or 
below 169 cc would be tested over the FTP test cycle for Class I 
highway motorcycles. Off-highway motorcycles and ATVs with engine 
displacements greater than 169 cc would be tested over the FTP test 
cycle for Class II and Class III highway motorcycles. Some 
manufacturers have expressed concern over the ability of some small-
displacement (e.g., less than 80 cc) youth off-highway motorcycles and 
ATVs to operate over the FTP. We request comment on the ability of 
these small-displacement vehicles to operate over the FTP test cycle. 
We also request comment on whether or not it would be appropriate to 
allow all ATVs to be certified using the Class I cycle.
    Some manufacturers have noted that they do not currently have 
chassis-based test facilities capable of testing ATVs. Manufacturers 
have noted that requiring chassis-based testing for ATVs would require 
them to invest in additional testing facilities that can handle ATVs, 
since ATVs do not fit on the same roller(s) as motorcycles used in 
chassis testing. Some manufacturers also have stated that low-pressure 
tires on ATVs would not stand up to the rigors of a chassis dynamometer 
test. California provides manufacturers with the option of certifying 
ATVs using the engine-based, utility engine test procedure (SAE J1088), 
and most manufacturers use this option for certifying their ATVs. 
Manufacturers have facilities to chassis-test motorcycles and therefore 
California does not provide an engine-testing certification option for 
motorcycles.
    We have tested numerous ATVs over the FTP and have found that 
several methods can be used to test ATVs on chassis dynamometers. The 
most practical method for testing an ATV on a motorcycle dynamometer is 
to disconnect one of the drive wheels and test with only one drive 
wheel in contact with the dynamometer. For chassis dynamometers set up 
to test light-duty vehicles, wheel spacers or a wide axle can be 
utilized to make sure the drive wheels fit the width of the 
dynamometer. We have found that the low-pressure tires have withstood 
dynamometer testing without any problems.
    We acknowledge that a chassis dynamometer could be very costly to 
purchase and difficult to put in place in the short run, especially for 
smaller manufacturers. Therefore, we are proposing that for the model 
years 2006 through 2009, ATV manufacturers would be allowed the option 
to certify using the J1088 engine test cycle per the California off-
highway motorcycle and ATV program. After 2009, this option would end 
and the FTP would be the required test cycle. If an alternate transient 
test cycle (engine or chassis) correlates with the FTP or better 
represents in-use ATV operation, we would consider allowing 
manufacturers to use the alternative test cycle in place of the FTP.
    b. Snowmobiles. We are proposing to adopt the snowmobile duty cycle 
developed by Southwest Research Institute (SwRI) in cooperation with 
the International Snowmobile Manufacturers Association (ISMA) for all 
snowmobile emission testing.\157\ The test procedure consists of two 
main parts; the duty cycle that the snowmobile engine would operate 
over during testing and other testing protocols surrounding the 
measurement of emissions (sampling and analytical equipment, 
specification of test fuel, atmospheric conditions for testing, etc.). 
While the duty cycle we are proposing was developed specifically to 
reflect snowmobile operation, many of the testing protocols are well 
established in other EPA emission-control programs and have been simply 
adapted where appropriate for snowmobiles.
---------------------------------------------------------------------------

    \157\ ``Development and Validation of a Snowmobile Engine 
Emission Test Procedure,'' Jeff J. White, Southwest Research 
Institute and Christopher W. Wright, Arctic Cat, Inc., Society of 
Automotive Engineers paper 982017, September, 1998. (A-2000-1) 
document II-D-05.
---------------------------------------------------------------------------

    The snowmobile duty cycle was developed by instrumenting several 
snowmobiles and operating them in the field in a variety of typical 
riding styles, including aggressive (trail), moderate (trail), double 
(trail with operator and one passenger), freestyle (off-trail), and 
lake driving. A statistical analysis of the collected data produced the 
five mode steady-state test cycle is shown in Table VI.D-1.

                              Table VI.D-1.--Proposed Snowmobile Engine Test Cycle
----------------------------------------------------------------------------------------------------------------
                  Mode                        1            2            3            4                5
----------------------------------------------------------------------------------------------------------------
Normalized Speed.......................            1         0.85         0.75         0.65  Idle
Normalized Torque......................            1         0.51         0.33         0.19  0

[[Page 51159]]

 
Relative Weighting (%).................           12           27           25           31  5
----------------------------------------------------------------------------------------------------------------

    We believe this duty cycle is representative of typical snowmobile 
operation and is therefore appropriate for demonstrating compliance 
with the proposed snowmobile emission standards. We request comment on 
this proposed duty cycle, and on any alternatives that we should 
consider.
    The other proposed testing protocols are largely derived from our 
regulations for marine outboard and personal watercraft engines, as 
recommended in the SwRI/ISMA test cycle development work (61 FR 52088, 
October 4, 1996). The testing equipment and procedures from that 
regulation are generally appropriate for snowmobiles. Unlike 
snowmobiles, however, the marine engines tend to operate in fairly warm 
ambient temperatures. Thus, some provision needs to be made in the 
snowmobile test procedure to account for the colder ambient 
temperatures typical of snowmobile operation. Since snowmobile 
carburetors are jetted for specific ambient temperatures and pressures, 
we could take one of two general approaches. The first is to require 
testing at ambient temperatures typical of snowmobile operation, with 
appropriate jetting. A variation of this option is to simply require 
that the engine inlet air temperature be representative of typical 
snowmobile operation, without requiring that the entire test cell be at 
that temperature. The second is to allow testing at higher temperatures 
than typically experienced during snowmobile operation, with jetting 
appropriate to the warmer ambient temperatures.
    We are proposing that snowmobile engine inlet air temperature be 
between -15 deg. C and -5 deg. C (5 deg. F and 23 deg. F), but that the 
ambient temperature in the test cell not be required to be 
refrigerated. We believe this approach strikes an appropriate balance 
between the need to test at conditions that are representative of 
actual use, and the fact that simply cooling the inlet air would be 
significantly less costly than requiring a complete cold test cell.
    We request comment on whether we should allow snowmobile engine 
testing to be done according to the test procedures developed by 
Southwest Research Institute. Under those procedures testing is done at 
warmer ambient temperatures than typical of snowmobile operation. 
Appropriate jetting under this approach is determined by extrapolating 
from the manufacturer's jet chart (if necessary).
    We invite comment on all aspects of the proposed test procedures.
2. What Fuels Will Be Used During Emission Testing?
    We are proposing to use the same fuel specifications for all 
recreational vehicles as we currently use for highway motorcycles and 
light-duty vehicles, which is representative of a summertime blend. We 
believe that off-highway motorcycles and ATVs use the same fuel as 
highway motorcycles. While snowmobiles typically operate during 
wintertime, we believe it is appropriate to use summertime gasoline for 
testing, primarily because it is the fuel that was used for the 
snowmobile emission testing that supported the development of our 
baseline emission estimates. Also, the majority of snowmobile HC 
emissions are a result of scavenging losses (unburned fuel from the 
intake charge exiting the combustion chamber with the exhaust gases). 
The primary difference between summertime and wintertime gasoline 
blends is the volatility, which is not likely to have a significant 
effect on scavenging losses. However, given that snowmobiles typically 
operate during wintertime, we request comment on whether we should 
consider a unique test fuel specifically for snowmobiles, and what 
specifications might be appropriate for such a fuel. Also, if we were 
to consider a unique snowmobile test fuel based on wintertime gasoline 
properties, should the proposed standards be adjusted in any way to 
account for the fact that the baseline emission estimates were 
developed from test data utilizing summertime blends.
3. Are There Production-Line Testing Provisions for These Engines?
    We are proposing that recreational vehicle or engine manufacturers 
perform emission tests on a small percentage of their production as it 
leaves the assembly line to ensure that production vehicles operate at 
certified emission levels. The broad outline of this program is 
discussed in Section III.C.4 above. We are proposing that production-
line testing be performed using the same test procedures as for 
certification testing. We request comment on all aspects of the 
proposed production-line testing requirements, including engine 
sampling rates and options for using alternative testing methods.

E. Special Compliance Provisions

    As described in Section XI.B, the report of the Small Business 
Advocacy Review Panel addresses the concerns of small-volume 
manufacturers of recreational vehicles.

Off-Highway Motorcycles and ATVs

    To identify representatives of small businesses for this process, 
we used the definitions provided by the Small Business Administration 
for motorcycles, ATVs, and snowmobiles (fewer than 500 employees). 
Eleven small businesses agreed to serve as small-entity 
representatives. These companies represented a cross-section of off-
highway motorcycle, ATV, and snowmobile manufacturers, as well as 
importers of off-highway motorcycles and ATVs.
    As discussed above, our proposed emission standards for off-highway 
motorcycles and ATVs will likely necessitate the use of 4-stroke 
engines. Most small-volume off-highway motorcycle and ATV importers--
and to a lesser degree, small-volume manufacturers--currently use 2-
stroke engines. While 4-stroke engines are in widespread use in 
motorcycles and ATVs in general, their adoption by any manufacturer is 
still a significant business challenge. Small manufacturers of these 
engines could face additional challenges in certifying engines to 
emission standards, because the cost of certification would be spread 
over the relatively few engines they produce. These higher per-unit 
costs could place small manufacturers at a competitive disadvantage 
without specific provisions to address this burden.
    We are proposing to apply the flexibilities described below to 
engines produced or imported by small entities with combined off-
highway motorcycle and ATV annual sales of fewer than 5,000 units. The 
SBAR Panel recommended these provisions to address the potentially 
significant adverse effects on small entities of an emission standard 
that will likely result in the use of four-stroke engines. The 5,000-
unit threshold is intended to focus these flexibilities on those 
segments of the market where the need

[[Page 51160]]

is likely to be greatest and to ensure that the flexibilities do not 
result in significant adverse environmental effects during the period 
of additional lead-time recommended below.\158\ We request comment on 
the appropriateness of the 5,000-unit threshold. In addition, we 
propose to limit use of some or all of these flexibilities to entities 
that are in existence or have product sales at the time of proposal to 
avoid creating arbitrary opportunities in the import sector, and to 
guard against the possibility of corporate reorganization, entry into 
the market, or other action for the sole purpose of circumventing 
emission standards. We request comment on any such restrictions.
---------------------------------------------------------------------------

    \158\ For example, importers may have access to large supplies 
of vehicles from major overseas manufacturers and potentially could 
substantially increase their market share by selling less expensive 
noncomplying products.
---------------------------------------------------------------------------

    We also request comment on allowing small entities with sales in 
excess of 5,000 units to certify using the flexible approaches 
described below for several engines equal to their 2000 or 2001 sales 
level. This would assure that all small entities currently in the 
market would be able to take advantage of these approaches. In 
addition, we request comment on when small entities must notify EPA 
that they intend to use the small-entity flexibilities.
    During the Panel's outreach meeting with small entities on issues 
related to recreational ATVs and off-road motorcycles, small entities 
expressed particular concern that a federal emission standard requiring 
manufacturers to switch to four-stroke engines might increase costs to 
the point that many small importers and manufacturers could experience 
significant adverse effects. As noted above, the Panel recommendations 
are designed to reduce the burden on small entities without 
compromising the environmental benefits of the program. However, it is 
possible that even with the broad flexibility under consideration, 
costs to small entities may still be too high. Also, they may not be 
able to recover costs without losing much or all of their business. We 
seek comment on the effect of the proposed standard on small entities, 
including any data or related studies to estimate the extent to which 
sales of their products are likely to be reduced as a result of changes 
in product price resulting from the proposed standards, more 
specifically from the conversion of two-stroke technology to four-
stroke technology. Additionally, we seek comment on any differences in 
costs between small and large manufacturers. We plan to assess 
information received in response to this request to inform the final 
rule decision-making process on whether additional flexibility (beyond 
that proposed below) is warranted.

Snowmobiles

    There are only a few small snowmobile manufacturers and they sell 
only a few hundred engines a year, which represents less than 0.5 
percent of total annual production. Therefore, the per-unit cost of 
regulation could be significantly higher for these small entities 
because they produce very low volumes. Additionally, these companies do 
not have the design and engineering resources to tackle compliance with 
emission standard requirements at the same time as large manufacturers 
and tend to have limited ability to invest the capital necessary to 
conduct emission testing related to research, development, and 
certification. Finally, the requirements of the snowmobile program may 
be infeasible or highly impractical because some small-volume 
manufacturers may have typically produced engines with unique designs 
or calibrations to serve niche markets (such as mountain riding). Our 
proposed snowmobile emission standards could impose significant 
economic hardship on these few manufacturers whose market presence is 
small. We therefore believe significant flexibility is necessary and 
appropriate for this category of small entities, as described below.

Flexibilities

1. Additional Lead Time
    We believe additional lead-time would be a way of reducing the 
burden to meet the proposed standards. This would provide extra time 
for technology to develop and, in the case of importers, extra time to 
resolve supplier issues that may arise. We propose a delay of two years 
beyond the date larger businesses would be required to comply. For ATVs 
and snowmobiles, the two-year delay would also apply to the timing of 
the proposed Phase 2 standards.
    In addition, for small snowmobile manufacturers, we propose that 
the emission standards be phased in over an additional two years at a 
rate of 50 percent, then 100 percent. Phase 1 would be phased in at 50/
50/100 percent in 2008/2009/2010 and Phase 2 would be phased in 50/50/
100 percent in 2012/2013/2014. We seek comment on whether a longer time 
period is appropriate given the costs of compliance for small 
businesses and the relationship between importers and their suppliers.
2. Design-Based Certification
    The process of certification is a business cost and lead time issue 
that may place a disproportionate burden on small entities, 
particularly importers. Certification is a fixed cost of doing 
business, which is potentially more burdensome on a unit-cost basis for 
small entities. It is potentially an even greater challenge, since some 
small entities will either contract emission testing to other parties 
or, in the case of importers, perhaps rely on off-shore manufacturers 
to develop and certify imported engines.
    We propose to permit small-volume manufacturers to use design-based 
certification, which would allow us to issue a certificate to a small 
business for the emission-performance standard based on a demonstration 
that engines or vehicles meet design criteria rather than by emission 
testing. The intent is to demonstrate that an engine using a design 
similar to or superior than that being used by larger manufacturers to 
meet the proposed emission standards would ensure compliance with the 
proposed standards. The demonstration would be based in part on 
emission test data from engines of a similar design. Under a design-
based certification program, a manufacturer would provide evidence in 
the application for certification that an engine or vehicle would meet 
the applicable standards for its useful life based on its design (e.g., 
the use a four-stroke engine, advanced fuel injection, or any other 
particular technology or calibration). The design criteria could 
include specifications for engine type, calibrations (spark timing, 
air/fuel ratio, etc.), and other emission-critical features, including, 
if appropriate, catalysts (size, efficiency, precious metal loading). 
Manufacturers would submit adequate engineering and other information 
about their individual designs showing that they meet emission 
standards for the useful life. We request comment on how these 
provisions should be implemented. We also seek comment on whether we 
should allow large manufacturers to use similar provisions on a limited 
basis.
3. Broaden Engine Families
    We propose an approach that would allow for relaxed criteria for 
what constitutes an engine or vehicle family. It would allow small 
businesses to put all their models into one vehicle or engine family 
(or more) for certification purposes if appropriate. Manufacturers 
would then certify their engines using the ``worst-case'' configuration 
within the family.

[[Page 51161]]

    A small manufacturer might need to conduct certification emission 
testing rather than pursuing design-based certification. Such a 
manufacturer would likely find broadened engine families useful.
4. Production-Line Testing Waiver
    As discussed above, we are proposing to require manufacturers to 
test a small sampling of production engines to ensure that production 
engines meet emission standards. We propose to waive production-line 
testing for small entities and request comment on whether limits for 
this waiver would be appropriate. This would eliminate or substantially 
limit production-line testing requirements for small businesses. It 
could be limited to engine/vehicle families under a given production 
volume or could be applied broadly to small businesses. This is likely 
to be important to small businesses, many of which do not have testing 
facilities on-site and would rely on outside contractors for testing.
5. Use of Assigned Deterioration Factors for Certification
    We propose to provide small entities with the option of using 
assigned deterioration factors. Rather than performing a durability 
demonstration for each family for certification, manufacturers would 
elect to use deterioration factors determined by us to demonstrate 
emission levels at the end of the useful life, thus reducing the 
development and testing burden. This could be a very useful and cost-
beneficial option for a small manufacturer opting to perform 
certification emission testing instead of design-based certification.
6. Using Emission Standards and Certification From Other EPA Programs
    A wide array of engines that have been certified to other EPA 
programs could be used in recreational vehicles. For example, there is 
a large variety of engines certified to EPA lawn and garden standards 
(Small SI). We propose to allow manufacturers of recreational vehicles 
to use engines certified to any other EPA standards for five years. 
Under this approach, engines certified to the Small SI standards could 
be used in recreational vehicles, and such engines would be subject to 
the Small SI standards and related provisions rather than the 
Recreational Vehicle program. The small business using the engine would 
not have to recertify the engine, provided the manufacturer does not 
alter the engine in such a way as to cause it to exceed the emission 
standards it was originally certified as meeting. Also, the 
recreational vehicle application may not be the primary intended 
application for the engine. We request comment on which of the already 
established standards and programs would be a useful certification 
option for small businesses.
    Additionally, a certified snowmobile engine produced by a large 
snowmobile manufacturer could be used by a small snowmobile 
manufacturer, provided the small manufacturer did not alter the engine 
in such a way as to cause it to exceed the snowmobile emission 
standards. This would provide a reasonable degree of emission control 
provided all other elements of the program were met. For example, if 
the only change a manufacturer were to make to the certified engine was 
to replace the stock Y-pipes and exhaust pipes with pipes of similar 
configuration or the stock muffler and air intake box with a muffler 
and air box of similar air flow, the engine could, subject to our 
review, still be eligible for this flexibility option. The manufacturer 
could also change the carburetor to have a leaner air/fuel ratio 
without losing eligibility. We believe that the manufacturer in such 
cases could establish a reasonable basis for knowing that emissions 
performance is not negatively affected be the changes. However, if the 
manufacturer were to change the bore or stroke of the engine, the 
engine would no longer qualify, as emissions could increase. We propose 
to allow the above approach for small snowmobile manufacturers.
7. Averaging, Banking, and Trading
    For the overall program, we are proposing corporate-average 
emission standards with opportunities for banking and trading of 
emission credits. We would expect the averaging provisions to be most 
helpful to manufacturers with broad product lines. Small manufacturers 
and small importers with only a few models might not have as much 
opportunity to take advantage of these flexibilities. However, we 
received comment from one small manufacturer supporting these types of 
provisions as a critical component of the program. We request comment 
on how the provisions could be enhanced for small business to make them 
more useful.
8. Hardship Provisions
    We are proposing provisions to address hardship circumstances, as 
described in Section VII.C.
9. Unique Snowmobile Engines
    Even with the broad flexibilities described above, there may be a 
situation where a small snowmobile manufacturer cannot comply. 
Therefore, we propose an additional provision to allow a small 
snowmobile manufacturer to petition us for relaxed standards for one or 
more engine families. The manufacturer would have to justify that the 
engine has unique design, calibration, or operating characteristics 
that make it atypical and infeasible or highly impractical to meet the 
emission-reduction requirements, considering technology, cost, and 
other factors. At our discretion, we would then set an alternative 
standard at a level between the prescribed standard and the baseline 
level. Such a standard would be intended to apply until the engine 
family is retired, or modified in such a way as to increase emissions. 
These engines would be excluded from the averaging calculation. We seek 
comment on allowing this provision for up to 300 engines per year per 
manufacturer, which would ensure that it is sufficiently available for 
those manufacturers needing it most.
    We seek comment on initial and deadline dates for submitting these 
petitions. While any relief would be enacted for the first year 
standards apply, there may be value to getting feedback early. It would 
seem reasonable that the first date for submittals would be during the 
first year of requirements for large manufacturers. The deadline for 
submittals might be at some time during the last year of the small-
business delay.

F. Technological Feasibility of the Standards

1. Off-Highway Motorcycles and ATVs
    We believe the proposed standards are technologically feasible 
given the availability of emission-control technologies in the context 
of the proposed program, as described below.
    a. What are the baseline technologies and emission levels? As 
discussed earlier, off-highway motorcycles and ATVs are equipped with 
relatively small (48 to 650 cc) high-performance two- or four-stroke 
single cylinder engines that are either air- or liquid-cooled.\159\ 
Since these vehicles are unregulated outside of the state of 
California, the main emphasis of engine design is on performance, 
durability, and cost and thus they generally have no emission controls. 
The fuel systems used on these engines are almost exclusively 
carburetors. Two-stroke engines

[[Page 51162]]

lubricate the piston and crankshaft by mixing oil with the air and fuel 
mixture. This is accomplished by most contemporary 2-stroke engines 
with a pump that sends two-cycle oil from a separate oil reserve to the 
carburetor where it is mixed with the air and fuel mixture. Some less 
expensive two-stroke engines require that the oil be mixed with the 
gasoline in the fuel tank. Four-stroke engines inject oil via a pump 
throughout the engine as the means of lubrication. With the exception 
of those vehicles certified in California, most of these engines are 
unregulated and thus have no emission controls. For performance and 
durability reasons, off-highway motorcycle and ATV engines all tend to 
operate with a ``rich'' air and fuel mixture. That is, they operate 
with excess fuel, which enhances performance and allows engine cooling 
to promote longer engine life. However, rich operation results in high 
levels of HC, CO, and PM emissions. Also, two-stroke engines tend to 
have high scavenging losses, where up to a third of the unburned air 
and fuel mixture goes out of the exhaust resulting in high levels of HC 
emissions.
---------------------------------------------------------------------------

    \159\ The engines are small relative to automotive engines. For 
example, automotive engines typically range from one liter to well 
over five liters in displacement, whereas off-highway motorcycles 
would range from 0.05 liters to 0.65 liters.
---------------------------------------------------------------------------

    b. What technology approaches are available to control emissions? 
Several approaches are available to control emissions from off-highway 
motorcycles and ATVs. The simplest approach would consist of 
modifications to the base engine, fuel system, cooling system, and 
recalibration of the air and fuel mixture. These could, for example, 
consist of changes to valve timing for four-stroke engines, changing 
from air- to liquid-cooling, and the use of advanced carburetion 
techniques or electronic fuel injection in lieu of traditional 
carburetion systems. Other approaches could include the use of 
secondary air injected into the exhaust, an oxidation or three-way 
catalyst, or a combination of secondary air and a catalyst. The engine 
technology that may have the most potential for maximizing emission 
reductions from two-stroke engines is the use of direct fuel injection. 
Direct fuel injection is able to reduce or even eliminate scavenging 
losses by pumping only air through the engine and then injecting fuel 
into the combustion chamber after the intake and exhaust ports have 
closed. The use of oxidation catalysts in conjunction with direct 
injection could potentially reduce emissions even further. Finally, 
conversion of two-stroke engine technology to four-stroke engine 
technology would significantly reduce HC emissions.
    None of these technologies should have any negative noise, safety, 
or energy impacts. Fuel injection can improve the combustion process 
which can result in lower engine noise. The vast majority of four-
stroke engines used in off-highway motorcycles and ATVs are 
considerably quieter than their two-stroke counterparts. Fuel injection 
has no impact on safety and four-stroke engines often have a more 
``forgiving'' power band which means the typical operator may find the 
performance of the machine to be more reasonable and safe. The use of 
fuel injection, the enleanment of the air and fuel mixture and the use 
of four-stroke technology all can result in significant reductions in 
fuel consumption.
    c. What technologies are most likely to be used to meet the 
proposed standards? 2006 Standards. Four-Stroke Engines. We believe 
off-highway motorcycles and ATVs utilizing four-stroke engines will 
need only to make some minor calibration changes and improvements to 
the carburetor to meet our proposed emission standards for the 2006 
model year. The calibration changes will most likely consist of 
reducing the amount of fuel in the air/fuel mixture. This is commonly 
referred to as enleaning the air/fuel ratio. Although four-stroke 
engines produce considerably lower levels of HC than two-stroke 
engines, the four-stroke engines used in off-highway motorcycles and 
ATVs all tend to be calibrated to operate with a rich air/fuel ratio 
for performance and durability benefits. This rich operation results in 
high levels of CO, since CO is formed in the engine when there is a 
lack of oxygen to complete combustion. We believe that many of these 
engines are calibrated to operate richer than needed, because they have 
either never had to consider emissions when optimizing air/fuel ratio 
or those that are certified to the California standards can operate 
richer because the California ATV CO standards are fairly lenient. 
Thus, we do not believe the standards will significantly reduce the 
performance or durability of these engines. Carburetion improvements 
could include increased carburetor tolerances, which would ensure more 
precise flow of fuel and air resulting in better fuel atomization 
(i.e., smaller fuel droplets), better combustion and less emissions.
    Since our proposed emission standards are for HC+NOX, as 
well as for CO, manufacturers will have to use an emission-control 
strategy or technology that doesn't cause NOX emissions to 
increase disproportionately. However, since all of these vehicles 
operate with rich air/fuel ratios, as discussed above, NOX 
levels from these engines are generally low and strategies designed to 
focus on HC reduction should allow manufacturers to meet our proposed 
standards without significantly increasing NOX levels.
    Two-Stroke Engines. Off-highway motorcycles and ATVs using two-
stroke engines will present a greater challenge for compliance with the 
proposed standards. We believe it is possible for a two-stroke engine 
equipped with direct injection and an oxidation catalyst to meet our 
proposed standards. However, there are several issues associated with 
direct injection, such as system durability and the need for high 
electrical system output, that need to be resolved before it can be 
successfully integrated into off-highway motorcycle and ATV 
applications by the 2006 model year. For example, there is concern over 
how durable a direct injection system would be when exposed to harsh 
environmental conditions such as water, mud, rocks and sand, to name a 
few. The typical electrical system on a two-stroke off-highway 
motorcycle and ATV uses a magneto system which produces between 250 and 
300 watts of electrical power. A typical direct injection system needs 
up to 1,000 watts of electrical power, meaning a traditional low-cost 
magneto system would be insufficient and possibly have to be replaced 
with an expensive and cumbersome alternator, similar to what is used on 
automobiles. For these reasons, and because of the potential 
complexities and cost of a direct injection system, we anticipate that 
most manufacturers would chose to convert models using two-stroke 
engines to four-stroke engines. Most manufacturers have experience with 
four-stroke engine technology and currently have several models powered 
by four-stroke engines. This is especially true in the ATV market where 
four-stroke engines account for 80 percent of sales. Because four-
stroke engines have been so prevalent over the last 10 years in the 
off-highway motorcycle and ATV industry, manufacturers have developed a 
high level of confidence in four-stroke technology and its application. 
In addition to converting to four-stroke technology, manufacturers will 
also most likely have to make some minor calibration and carburetion 
improvements to meet the proposed 2006 emission standards.
    2009 Standards. As discussed above, the proposed 2009 standards are 
proposed to apply only to ATVs. To meet these standards, we believe 
manufacturers will need to use four-stroke engines with further 
advancements in carburetor calibrations and improved tolerances or 
possibly

[[Page 51163]]

even switch to electronic fuel injection for some models. There is 
currently one manufacturer who uses electronic fuel injection in their 
off-highway motorcycles and ATVs. The technologies most likely to be 
used to meet these standards are secondary air and/or an oxidation 
catalytic converter.
    Secondary air has been used by passenger cars and highway 
motorcycles for many years as a means to help control HC and CO. The 
hot exhaust gases coming from the combustion chamber contain 
significant levels of unburned HC and CO. If sufficient oxygen is 
present, these gases will continue to react in the exhaust system, 
reducing the amount of pollution emitted into the atmosphere. To assure 
that sufficient oxygen is present in the exhaust, air is injected into 
the exhaust system. For off-highway motorcycles and ATVs, the 
additional air can be injected into the exhaust manifold using a series 
of check valves which use the normal pressure pulsations in the exhaust 
manifold to draw air from outside. We have tested several four-stroke 
ATVs with secondary air injected into the exhaust manifold and found 
that the HC and CO emission levels were at or below our proposed 2009 
standards (further details of our secondary air testing are described 
in the Draft Regulatory Support Document). Thus, we believe secondary 
air injection alone could be a viable technology used by ATV 
manufacturers to meet our proposed 2010 standards.
    We also tested several ATVs with oxidation catalysts. We evaluated 
several different catalyst configurations with varying size, loading, 
cell density, and washcoat. We also examined different catalyst 
locations in the exhaust system. We found that a relatively small 
oxidation catalyst located in the exhaust system produced emission 
levels below our proposed emission standards. Therefore, we also 
believe that the use of an oxidation catalyst could be another viable 
technology available to ATV manufacturers to meet our proposed 2009 
emission standards.
2. Snowmobiles
    a. What are the baseline technologies and emission levels? As 
discussed earlier, snowmobiles are equipped with relatively small high-
performance two-stroke two and three cylinder engines that are either 
air- or liquid-cooled. Since these vehicles are currently unregulated, 
the main emphasis of engine design is on performance, durability, and 
cost and thus they have no emission controls. The fuel system used on 
these engines are almost exclusively carburetors, although some have 
electronic fuel injection. Two-stroke engines lubricate the piston and 
crankshaft by mixing oil with the air and fuel mixture. This is 
accomplished by most contemporary 2-stroke engines with a pump that 
sends two-cycle oil from a separate oil reserve to the carburetor where 
it is mixed with the air and fuel mixture. Some less expensive two-
stroke engines require that the oil be mixed with the gasoline in the 
fuel tank. Snowmobiles currently operate with a ``rich'' air and fuel 
mixture. That is, they operate with excess fuel, which enhances 
performance and allows engine cooling which promotes longer lasting 
engine life. However, rich operation results in high levels of HC, CO, 
and PM emissions. Also, two-stroke engines tend to have high scavenging 
losses, where up to a third of the unburned air and fuel mixture goes 
out of the exhaust resulting in high levels of raw HC. Current average 
snowmobile emission rates are 397 g/kW-hr (296 g/hp-hr) CO and 150 g/
kW-hr (111 g/hp-hr) HC.
    b. What technology approaches are available to control emissions? 
We believe the proposed standards would be technologically feasible. A 
variety of technologies are currently available or in stages of 
development to be available for use on 2-stroke snowmobiles. These 
include improvements to carburetion (improved fuel control and 
atomization, as well as improved production tolerances), enleanment 
strategies for both carbureted and fuel injected engines, and semi-
direct and direct fuel injection. In addition to these 2-stroke 
technologies, converting to 4-stroke engines is feasible for some 
snowmobile types. Each of these is discussed in the following 
paragraphs.
    There are several things that can be done to improve carburetion in 
snowmobile engines. First, strategies to improve fuel atomization would 
promote more complete combustion of the fuel/air mixture. Additionally, 
production tolerances could be improved for more consistent fuel 
metering. Both of these things would allow for more accurate control of 
the air/fuel ratio. In conjunction with these improvements in 
carburetion, the air/fuel ration could be leaned out some. Snowmobile 
engines are currently calibrated with rich air/fuel ratios for 
durability reasons. Leaner calibrations would serve to reduce CO and HC 
emissions. Such calibration changes could reduce snowmobile engine 
durability. However, there are many engine improvements that could be 
made to regain lost durability that occurs with leaner calibration. 
These include changes to the cylinder head, pistons, ports and pipes to 
reduce knock. In addition critical engine components could be made more 
robust to improve durability.
    The same calibration changes to the air/fuel ratio just discussed 
for carbureted engines could also be employed, possibly with more 
accuracy, with the use of fuel injection. At least one major snowmobile 
manufacturer currently employs electronic fuel injection on several of 
its snowmobile models.
    In addition to rich air/fuel ratios, one of the main reasons that 
two-stroke engines have such high HC emission levels is that they 
release a substantial amount of unburned fuel into the atmosphere as a 
result from scavenging losses, as described above. One way to reduce or 
eliminate such losses is to inject the fuel into the cylinder after the 
exhaust port has closed. This can be done by injecting the fuel into 
the cylinder through the transfer port (semi-direct injection) or 
directly into the cylinder (direct injection). Both of these approaches 
are currently being used successfully in two-stroke personal watercraft 
engines. We believe these technologies hold promise for application to 
snowmobiles. Manufacturers must address a variety of technical design 
issues for adapting the technology to snowmobile operation, such as 
operating in colder ambient temperatures and at variable altitude. The 
several years of lead time give manufacturers time to incorporate these 
development efforts into their overall research plan as they apply 
these technologies to snowmobiles.
    In addition to the two-stroke technologies just discussed, the use 
of four-stroke engines in snowmobiles is another feasible approach to 
reduce emissions. Since they do not scavenge the exhaust gases with the 
incoming air/fuel mixture, four-stroke engines have inherently lower HC 
emissions compared to two-strokes. Four-stroke engines have a lower 
power to weight ratio than two-stroke engines and are heavier. Thus, 
they are more appropriately used in snowmobile models where extreme 
power and acceleration are not the primary selling points. Such models 
include touring and sport trail sleds, as opposed to high performance 
sleds such as those used for aggressive trail, cross country, mountain 
and lake riding.
    c. What technologies are most likely to be used to meet the 
proposed standards. 2006 Standards. We expect that, in the context of 
an emission-credit program, manufacturers might choose to take 
different paths to meet the

[[Page 51164]]

proposed 2006 model year emission standards. We expect that many of the 
reductions required will come from aggressive implementation of 
improved carburetion and enleanment strategies. Manufacturers have 
indicated to us that direct injection strategies can result in emission 
reductions of 70 to 75 percent for HC and 60 to 65 percent for CO. 
Certification results from 2000 model year outboard engines and PWC 
support such reductions. At least one manufacturer has indicated that 
direct injection technology will be available for snowmobiles on at 
least some models well in advance of 2006. We believe that as 
manufacturers learn to apply direct injection strategies they may 
choose to implement those technologies on some of their more expensive 
sleds and use less aggressive technologies, such as improved 
carburetion and enleanment on their lower performance models. Finally, 
there are at least two snowmobile manufacturers planning on offering 
four-stroke models in the future, and we expect further interest in 
four-strokes to develop for those snowmobile categories for which four-
strokes are a good fit.
    2010 Standards. We expect that, in the context of an emission 
credit program, manufacturers would choose to apply enleanment 
strategies and the associated engine modification to roughly half of 
their production. The rest of their production would encompass 
primarily direct injection two stroke and to a much lesser extent, four 
stroke technology.

VII. General Nonroad Compliance Provisions

    This section describes a wide range of compliance provisions that 
apply generally to all of the engines and vehicles that would be 
subject to the proposed standards. Several of these provisions apply 
not only to manufacturers, but also to equipment manufacturers 
installing certified engines, remanufacturing facilities, operators, 
and others.
    The proposed regulatory text for the compliance requirements for 
Large SI and recreational vehicles would be contained in a new Part 
1068 of title 40, entitled ``General Compliance Programs for Nonroad 
Engines.'' The compliance provisions for marine engines would be the 
same as those in our existing programs for commercial diesel marine 
engines (40 CFR part 94), which are similar to the provisions proposed 
in 40 CFR part 1068.
    The following discussion of the general nonroad provisions follows 
the proposed regulatory text. For ease of reference, the subpart 
designations are provided. We request comment on all these provisions.

A. Miscellaneous Provisions (Part 1068, Subpart A)

    This regulation contains some general provisions, including general 
applicability and the definitions that apply to Part 1068. Other 
provisions concern good engineering judgment, how we would handle 
confidential information; how the EPA Administrator delegates decision-
making authority; and when we may inspect a manufacturer's facilities, 
engines, or records.
    The process of testing engines and preparing an application for 
certification requires the manufacturer to make a variety of judgments. 
This includes, for example, selecting test engines, operating engines 
between tests, and developing deterioration factors. Section 1068.5 of 
the proposed regulations describes the methodology we propose to use to 
evaluate concerns related to manufacturers' use of good engineering 
judgment in cases where the manufacturer has such discretion. If we 
find a problem in these areas, we would take into account the degree to 
which any error in judgment was deliberate or in bad faith. This 
subpart is consistent with provisions in the final rule for light-duty 
highway vehicles and commercial marine diesel engines.

B. Prohibited Acts and Related Requirements (Part 1068, Subpart B)

    The proposed provisions in this subpart lay out a set of 
prohibitions for engine manufacturers, equipment manufacturers, 
operators, and engine rebuilders to ensure that engines comply with the 
emission standards. These provisions are summarized below, but readers 
are encouraged to review the proposed regulatory text. These provisions 
are intended to help ensure that each new engine sold or otherwise 
entered into commerce in the United States is certified to the relevant 
standards, that it remains in its certified configuration throughout 
its lifetime, and that only certified engines are used in the 
appropriate nonroad equipment.
1. General Prohibitions (Sec. 1068.100)
    This proposed regulation contains several prohibitions consistent 
with the Clean Air Act. No one may sell an engine in the United States 
without a valid certificate of conformity issued by EPA, deny us access 
to relevant records, or keep us from entering a facility to test or 
inspect engines. In addition, no one may remove or disable a device or 
design element that may affect an engine's emission levels, or 
manufacture any device that will make emission controls ineffective, 
which we would consider tampering. We have generally applied the 
existing policies developed for tampering with highway engines and 
vehicles to nonroad engines.\160\ Other prohibitions reinforce 
manufacturers' obligations to meet various certification requirements. 
We also prohibit selling engine parts that prevent emission-control 
systems from working properly. Finally, for engines that are excluded 
for certain applications (i.e., stationary or solely for competition), 
we generally prohibit using these engines in other applications.
---------------------------------------------------------------------------

    \160\ ``Interim Tampering Enforcement Policy,'' EPA memorandum 
from Norman D. Shulter, Office of General Counsel, June 25, 1974 
(Docket A-2000-01; document II-B-20).
---------------------------------------------------------------------------

    These proposed prohibitions are the same as those that apply to 
other engines we have regulated in previous rulemakings. Each 
prohibited act has a corresponding maximum penalty as specified in 
Clean Air Act section 205. As provided for in the Federal Civil 
Penalties Inflation Adjustment Act of 1990, Public Law 10-410, these 
maximum penalties are in 1970 dollars and should be periodically 
adjusted by regulation to account for inflation. The current penalty 
amount for each violation is $27,500.\161\
---------------------------------------------------------------------------

    \161\ EPA acted to adjust the maximum penalty amount in 1996 (61 
FR 69364, December 31, 1996). See also 40 CFR part 19.
---------------------------------------------------------------------------

2. Equipment Manufacturer Provisions (Sec. 1068.105)
    According to this proposed regulation, equipment manufacturers may 
not sell new equipment with uncertified engines once the emission 
standards begin to apply. We would allow a grace period for equipment 
manufacturers to use up their supply of uncertified engines, as long as 
they follow their normal inventory practices for buying engines.
    We propose to require equipment manufacturers to observe the engine 
manufacturers emission-related installation specifications to ensure 
that the engine remains consistent with the application for 
certification. This may include such things as radiator specifications, 
placement of catalytic converters, diagnostic signals and interfaces, 
and steps to minimize evaporative emissions.
    If equipment manufacturers install a certified engine in a way that 
obscures the engine label, we propose to require them to add a 
duplicate label on the equipment. Equipment manufacturers may make 
these labels or get them from the engine manufacturer.

[[Page 51165]]

    If equipment manufacturers don't fulfill the responsibilities we 
describe in this section, we would consider them to be violating one or 
more of the prohibited acts described above.
3. In-Service Engines (Sec. 1068.110)
    The proposed regulations would prevent manufacturers from requiring 
owners to use any certain brand of aftermarket parts and give the 
manufacturer responsibility for engine servicing related to emissions 
warranty, leaving the responsibility for all other maintenance with the 
owner. This proposed regulation would also reserve our right to do 
testing (or require testing) to investigate potential defeat devices, 
as authorized by the Act.
4. Engine Rebuilding (Sec. 1068.120)
    We are proposing to establish rebuild provisions for all the 
nonroad engines subject to the proposed emission standards. This 
approach is similar to what applies to heavy-duty highway engines, 
nonroad diesel engines, and commercial marine diesel engines. This is 
necessary to prevent an engine rebuilder from rebuilding engines in a 
way that disables the engine's emission controls or compromises the 
effectiveness of the emission-control system. For businesses involved 
in commercial engine rebuilding, we are proposing minimal recordkeeping 
requirements so rebuilders can show that they comply with regulations.
    In general, we propose to require that anyone who rebuilds a 
certified engine must restore it to its original (or a lower-emitting) 
configuration. We are proposing to add unique requirements for 
rebuilders to replace some critical emission-control components such as 
fuel injectors and oxygen sensors in all rebuilds for engines that use 
those technologies. We are also proposing that rebuilders replace an 
existing catalyst if there is evidence that the catalyst is not 
functional; for example, if a catalyst has lost its physical integrity 
with loose pieces rattling inside, it would need to be replaced. See 
Sec. 1068.65 for more detailed information.
    The proposed rebuilding provisions define good rebuilding practices 
to help rebuilders avoid violating the prohibition on ``removing or 
disabling'' emission-control systems. We therefore propose to extend 
these provisions to individuals who rebuild their own engines, but 
without any recordkeeping requirements.
    We request comment on applying these proposed requirements for 
engine rebuilding and maintenance to the engines and vehicles subject 
to this rulemaking. In addition, we request comment on the associated 
recordkeeping requirements.

C. Exemptions (Part 1068, Subpart C)

    We are proposing to include several exemptions for certain specific 
situations. Most of these are consistent with previous rulemakings. We 
highlight the new or different proposed provisions in the following 
paragraphs. In general, exempted engines would need to comply with the 
requirements only in the sections related to the exemption. Note that 
additional restrictions could apply to importing exempted engines (see 
Section VII.D). Also, we are also proposing that we may require 
manufacturers (or importers) to add a permanent label describing that 
the engine is exempt from emission standards for a specific purpose. In 
addition to helping us enforce emission standards, this would help 
ensure that imported engines clear Customs without difficulty.
1. Testing
    Anyone would be allowed to request an exemption for engines used 
only for research or other investigative purposes.
2. Manufacturer-Owned Engines
    Engines that are used by engine manufacturers for development or 
marketing purposes could be exempted from regulation if they are 
maintained in the manufacturers' possession and are not used for any 
revenue-generating service.
3. Display Engines
    Engine manufacturers would get an exemption without request if the 
engines are for display only.
4. National Security
    Engine manufacturers could receive an exemption for engines they 
can show are needed by an agency of the federal government responsible 
for national defense. For cases where the engines will not be used on 
combat applications, the manufacturer would have to request the 
exemption with the endorsement of the procuring government agency.
5. Exported Engines
    Engines that will be exported to countries that don't have the same 
emission standards as those that apply in the United States would be 
exempted without need for a request. This exemption would not be 
available if the destination country has the same emission standards as 
those in the United States.
6. Competition Engines
    New engines that are used solely for competition are excluded from 
regulations applicable to nonroad engines. For purposes of our 
certification requirements, a manufacturer would receive an exemption 
if it can show that it produces the engine specifically for use solely 
in competition. In addition, engines that have been modified for use in 
competition would be exempt from the prohibition against tampering 
described above (without need for request). The literal meaning of the 
term ``used solely for competition'' would apply for these 
modifications. We would therefore not allow the engine to be used for 
anything other than competition once it has been modified. This also 
applies to someone who would later buy the engine, so we would require 
the person modifying the engine to remove or deface the original engine 
label and inform a subsequent buyer in writing of the conditions of the 
exemption.
7. Replacement Engines
    An exemption would be available to engine manufacturers without 
request if that is the only way to replace an engine from the field 
that was produced before the current emission standards took effect. If 
less stringent standards applied to the old engine when it was new, the 
replacement engine would also have to meet those standards.
8. Hardship Related to Economic Burden
    There are two types of hardship provisions. The first type of 
hardship program would allow small businesses to petition EPA for 
additional lead time (e.g., up to 3 years) to comply with the 
standards. A small manufacturer would have to make the case that it has 
taken all possible business, technical, and economic steps to comply 
but the burden of compliance costs would have a significant impact on 
the company's solvency. A manufacturer would be required to provide a 
compliance plan detailing when and how it would achieve compliance with 
the standards. Hardship relief could include requirements for interim 
emission reductions and/or purchase and use of emission credits. The 
length of the hardship relief decided during review of the hardship 
application would be up to one year, with the potential to extend the 
relief as needed. The second hardship program would allow companies to 
apply for hardship relief if circumstances outside their control cause 
the failure to comply (i.e., supply contract broken by parts supplier) 
and if the failure to sell the subject engines would have a major 
impact on the company's solvency. See the proposed

[[Page 51166]]

regulatory text in 40 CFR 1068.240 and 1068.241 for additional details.
9. Hardship for Equipment Manufacturers
    Equipment manufacturers in many cases depend on engine 
manufacturers to supply certified engines in time to produce complying 
equipment by the date emission standards begin to apply. This is 
especially true for industrial and marine applications. In other 
programs, we have heard of certified engines being available too late 
for equipment manufacturers to adequately accommodate changing engine 
size or performance characteristics. To address this concern, we are 
proposing to allow equipment manufacturers to request up to one extra 
year before using certified engines if they are not at fault and would 
face serious economic hardship without an extension. See the proposed 
regulatory text in 40 CFR 1068.245 for additional information.

D. Imports (Part 1068, Subpart D)

    In general, the same certification requirements would apply to 
engines and equipment whether they are produced in the U.S. or are 
imported. This proposed regulation also includes some additional 
provisions that would apply if someone wants to import an exempted or 
excluded engine. For example, the importer would need written approval 
from us to import any exempted engine; this is true even if an 
exemption for the same reason doesn't require approval for engines 
produced in the U.S.
    All the proposed exemptions described above for new engines would 
also apply to importation, though some of these apply only on a 
temporary basis. If we approve a temporary exemption, it would be 
available only for a defined period and could require the importer to 
post bond while the engine is in the U.S. There are several additional 
proposed exemptions that would apply only to imported engines.

--Identical configuration: This would be a permanent exemption to allow 
individuals to import engines that were designed and produced to meet 
applicable emission standards. These engines may not have the emission 
label only because they were not intended for sale in the United 
States. This exemption would apply to all the nonroad engines covered 
by this proposal. We did not finalize this exemption for commercial 
marine diesel engines, since we expected no individuals to own or 
import such an engine.
--Personal use: This would be a permanent exemption to allow 
individuals to import engines for their personal use. To prevent abuse 
of this exemption, we would require that importers own the exempted 
engines and we would generally exempt only one of each type of engine 
over an individual's lifetime.
--``Antique'' engines: We would generally treat used engines as new if 
they are imported without a certificate of conformity. However, this 
permanent exemption would allow for importation of uncertified engines 
if they are more than 20 years old in their original configuration.
--Repairs or alterations: This would be a temporary exemption to allow 
companies to repair or modify engines. This exemption would not allow 
for operating the engine, except as needed to do the intended work.
--Diplomatic or military: This would be a temporary exemption to allow 
diplomatic or military personnel to use uncertified engines during 
their term of service in the U.S.

    We request comment on all the proposed exemptions for domestically 
produced and imported engines and vehicles.

E. Selective Enforcement Audit (Part 1068, Subpart E)

    Clean Air Act section 206(b) gives us the discretion in any program 
with vehicle or engine emission standards to do selective enforcement 
auditing of production engines. In selective enforcement auditing, we 
would choose an engine family and give the manufacturer a test order 
detailing a testing program to show that production-line engines meet 
emission standards. The proposed regulation text describes the audit 
procedures in greater detail.
    We intend generally to rely on manufacturers' testing of 
production-line engines to show that they comply with emission 
standards. However, we reserve our right to do selective enforcement 
auditing if we have reason to question the emission testing conducted 
and reported by the manufacturer.

F. Defect Reporting and Recall (Part 1068, Subpart F)

    We are proposing provisions for defect reporting. Specifically, we 
are proposing that manufacturers tell us when they learn of a defect 
occurring 25 times or more for engine families with annual sales up to 
10,000 units. This threshold of defects would increase proportionately 
for larger families. For catalyst-related defects, we propose a 
threshold of approximately half the frequency of noncatalyst problems 
to trigger a defect report. While these thresholds would depend on 
engine family sales, counting defects would not be limited to a single 
engine family. For example, if a manufacturer learns that operators 
reported 25 cases of a short-circuit in the electronic control unit 
from three different low-volume engine models spread over five years, 
that would trigger the need to file a defect report. This information 
could come from warranty claims, customer complaints, product 
performance surveys, or anywhere else. The proposed regulation language 
in Sec. 1068.501 also provides information on the thresholds for 
triggering a further investigation for where a defect report is more 
likely to be necessary. We request comment on the proposed defect 
reporting provisions.
    Under Clean Air Act section 207, if we determine that a substantial 
number of engines within an engine family, although properly used and 
maintained, do not conform to the appropriate emission standards, the 
manufacturer will be required to remedy the problem and conduct a 
recall of the noncomplying engine family. However, we also recognize 
the practical difficulty in implementing an effective recall program 
for nonroad engines. It would likely be difficult to properly identify 
all the affected owners absent a nationwide registration requirement 
similar to that for cars and trucks. The response rate for affected 
owners or operators to an emission-related recall notice is also a 
critical issue to consider. We recognize that in some cases, recalling 
noncomplying nonroad engines may not achieve sufficient environmental 
protection, so our intent is to generally allow manufacturers to 
nominate alternative remedial measures to address most potential 
noncompliance situations. We expect that successful implementation of 
appropriate alternative remediation would obviate the need for us to 
make findings of substantial nonconformity under section 207 of the 
Act. We would consider alternatives nominated by a manufacturer based 
on the following criteria; the alternatives should--
    (1) Represent a new initiative that the manufacturer was not 
otherwise planning to perform at that time, with a clear connection to 
the emission problem demonstrated by the engine family in question;
    (2) Cost more than foregone compliance costs and consider the time 
value of the foregone compliance costs and the foregone environmental 
benefit of the engine family;
    (3) Offset at least 100 percent of the emission exceedance relative 
to that

[[Page 51167]]

required to meet emission standards (or Family Emission Limits); and
    (4) Be possible to implement effectively and expeditiously and to 
complete in a reasonable time.
    These criteria would guide us in evaluating projects to determine 
whether their nature and burden is appropriate to remedy the 
environmental impact of the nonconformity. We request comment on this 
approach to addressing the Clean Air Act provisions related to recall. 
In addition, we request comment on the proposed requirement to keep 
recall-related records until three years after a manufacturer completes 
all responsibilities under a recall order.

G. Public Hearings (Part 1068, Subpart G)

    According to this regulation, manufacturers would have the 
opportunity to challenge our decision to suspend, revoke, or void an 
engine family's certificate. This also applies to our decision to 
reject the manufacturer's use of good engineering judgment (see 
Sec. 1068.005). Part 1068, subpart G, describes the proposed procedures 
for a public hearing to resolve such a dispute.

VIII. General Test Procedures

    The regulatory text in part 1065 is written with the intent to 
apply broadly to EPA engine programs. This proposal, however, applies 
to anyone who tests engines to show that they meet the emission 
standards for Large Industrial SI engines or for recreational vehicles. 
This includes certification testing, as well as all production-line and 
in-use testing. See the program descriptions above for testing 
provisions that are unique to Large SI engines. We may later propose to 
apply the same provisions to other engines, with any appropriate 
additions and changes. Recreational marine diesel engines would use the 
test procedures already adopted in 40 CFR part 94.

A. General Provisions

    As we have done in previous programs, we are proposing specific 
test procedures to define how measurements are to be made, but would 
allow the use of alternate procedures if they are shown to be 
equivalent to our specified procedures. The test procedures proposed in 
part 1065 are derived from our test procedures in 40 CFR Part 86 for 
highway heavy-duty gasoline engines and light-duty vehicles. The 
procedures have been simplified (and to some extent generalized) to 
better fit nonroad engines. We request comment on all aspects of these 
proposed test procedures. We also request comment regarding whether any 
additional parts of the test procedures contained in 40 CFR part 86 
(for highway vehicles and engines), in other parts that apply to 
nonroad engines, or in ISO 8178 should be incorporated into the final 
test procedures.

B. Laboratory Testing Equipment

    The proposed regulations do not specify the type of engine or 
chassis dynamometer that must be used during testing. Rather, they 
include performance criteria that must be met during each test. These 
criteria are intended to ensure that deviations from the specified 
speed and load duty cycle are small. Steady-state testing calls for a 
minimal degree of sophistication in the dynamometer system.
    Measuring emissions during transient operation calls for a greater 
degree of sophistication than steady-state testing. For chassis testing 
of recreational vehicles, we propose to use the specifications adopted 
in 40 CFR part 86 for highway engines. For Large SI engines, we based 
the dynamometer specifications around the capabilities of current 
dynamometers with enhanced control capabilities. Furthermore, we would 
require any EPA confirmatory testing to meet more stringent 
specifications than manufacturers testing their own engines.
    In addition, for transient testing with recreational vehicles and 
any testing with Large SI engines, the proposed regulations specify 
that emissions be measured using a full-dilution constant-volume 
sampler (CVS) like those used to measure emissions from highway 
engines. This means that during a test, an engine's exhaust would be 
routed into a dilution tunnel where it would be mixed with air, and 
then sampled using a bag sampler system. After the test, the 
concentrations of HC, CO, and NOX in the bag would be 
measured using conventional laboratory analyzers.
    For industrial spark-ignition engines and snowmobiles, the proposed 
steady-state test procedures specify measuring emissions with dilute-
sampling equipment. Some manufacturers have expressed a preference to 
continue with their established practice of using raw-sampling 
equipment and procedures. While we believe dilute-sampling is most 
appropriate for these engines, the proposed provisions for alternate 
testing procedures may allow for raw-sampling measurements. As 
specified in paragraph 1065.010(c)(3) of the proposed regulations, we 
would allow manufacturers to use alternate procedures that are shown to 
be equivalent to the proposed procedures. We request comment on this 
approach to emission-measurement procedures. Specifically, we request 
comment on the degree of equivalence that should be shown to gain 
approval of alternate procedures. See the final rule for 2007 heavy-
duty highway engine emission standards for one approach of defining a 
tolerance on equivalence for alternate procedures (66 FR 5002, January, 
18, 2001).

C. Laboratory Testing Procedures

    We are proposing specific procedures for running the test. These 
procedures are outlined briefly here, with a more detailed description 
of the most significant aspects. Before starting the test, it would be 
necessary to operate the engine for some time to improve the stability 
of the emissions, or to make the engine more representative of in-use 
engines. This is called service accumulation, and may take one of two 
forms. In the first method, a new engine is operated for about 50 hours 
as a break-in period. This would be done for most or all emission-data 
engines (for certification). The second method is much longer (up to 
the full useful life), and is done to obtain deterioration factors.
    Once an engine is ready for testing, it is connected to the 
dynamometer with its exhaust flowing into the dilution tunnel. The 
dynamometer is controlled to make the engine follow the specified duty 
cycle. A continuous sample would be collected from the dilution tunnel 
for each test segment or test mode using sample bags. These bags would 
then be analyzed to determine the concentrations of HC, CO, and 
NOX.
1. Test Speeds
    The definition of maximum test speed, where speed is the angular 
velocity of an engine's crankshaft (usually expressed in revolutions 
per minute, or rpm), is an important aspect of the duty cycles for 
testing. Until recently, we relied on engine manufacturers to declare 
reasonable rated speeds for their engines and then used the rated speed 
as the maximum test speed. However, to have a more objective measure of 
an engine's maximum test speed, we have established an objective 
procedure for measuring this engine parameter.\162\
---------------------------------------------------------------------------

    \162\ See the final rule for commercial marine diesel engines 
for a broader discussion of maximum test speed (64 FR 249, December 
29, 1999).
---------------------------------------------------------------------------

    We propose to define the maximum test speed for any engine to be 
the single point on an engine's maximum-power versus speed curve that 
lies farthest away from the zero-power, zero-speed point on a 
normalized maximum-power

[[Page 51168]]

versus speed plot. In other words, consider straight lines drawn 
between the origin (speed = 0, load = 0) and each point on an engine's 
normalized maximum-power versus speed curve. Maximum test speed is 
defined at that point where the length of this line reaches its maximum 
value. For constant-speed engines, maximum test speed is the engine's 
rated speed.
    Intermediate speed for steady-state duty cycles is generally 
defined as the speed at which the engine generates its maximum torque 
value. However, in cases where the maximum torque occurs at a speed 
that is less than 60 percent or greater than 75 percent of the rated 
speed, the intermediate speed is often specified as either 60 or 75 
percent of rated speed, whichever is closer to the speed of maximum 
torque. We propose to use this approach, using the maximum test speed 
described above to calculate these percentage values.
    We request comment on applying this method of determining rated 
speed to ATVs certified to engine-based emission standards, 
recreational marine diesel engines, and Large SI engines.
2. Maintenance
    As described in Section III.C.1, we are proposing limits on the 
amount of scheduled maintenance manufacturers may prescribe for their 
customers to ensure that engines continue to meet emission standards. 
If manufacturers would specify unreasonably frequent maintenance, there 
would be little assurance that in-use engines would continue to operate 
at certified emission levels. We would also apply these minimum 
maintenance intervals to engines the manufacturer operates for service 
accumulation before testing for emissions. For example, manufacturers 
could not install a new catalyst on a Large SI engine after 2,000 hours 
of operation, then select that engine for the in-use testing program. 
Similarly, manufacturers could not replace fuel-system components on a 
recreational vehicle during the course of service accumulation for 
establishing deterioration factors. We would not restrict scheduling of 
routine maintenance item such as changing engine oil and replacing oil, 
fuel, or air filters. We may also allow changing spark plugs, even 
though we are aware that spark plugs can significantly affect 
emissions.

IX. Projected Impacts

    This section summarizes the projected impacts of the proposed 
emission standards. The anticipated environmental benefits are compared 
with the projected cost of the program for an assessment of the cost 
per ton of reducing emissions for this proposal.

A. Environmental Impact

    To estimate nonroad engine and vehicle emission contributions, we 
used the latest version of our NONROAD emissions model. This model 
computes emission levels for a wide variety of nonroad engines, and 
uses information on emission rates, operating data, and population to 
determine annual emission levels of various pollutants. A more detailed 
description of the methodology used for projecting inventories and 
projections for additional years can be found in the Chapter 6 of the 
Draft Regulatory Support Document. We request comment on all aspects of 
the emission inventory analysis, including the usage rates and other 
inputs used in the analysis.
    Tables IX.A-1 and IX.A-2 contain the projected emission inventories 
for the years 2010 and 2020, respectively, from the engines and 
vehicles subject to this proposal under the base case (i.e., without 
the proposed standards taking effect) and assuming the proposed 
standards take effect. The percent reductions based on a comparison of 
estimated emission inventories with and without the proposed emission 
standards are also presented.

                                                   Table IX.A-1.--2010 Projected Emissions Inventories
                                                                  [Thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Exhaust CO                      Exhaust NOX                      Exhaust HC**
                                                      --------------------------------------------------------------------------------------------------
                       Category                                      With                             With                             With
                                                       Base case   proposed   Percent   Base case   proposed   Percent   Base case   proposed   Percent
                                                                  standards  reduction             standards  reduction             standards  reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
Industrial SI >19kW..................................      2,615      1,152         56        397        152         62        293        111         62
Snowmobiles..........................................        567        415         27          1          1          0        213        155         27
ATVs.................................................      3,901      3,380         13         21         21          0      1,098        756         31
Off-highway motorcycles..............................        194        172         11          1          1          0        143        112         22
Recreational Marine diesel*..........................          5          5          0         31         29          7        0.9        1.0         10
                                                      --------------------------------------------------------------------------------------------------
      Total..........................................      7,282      5,124         30        451        204         55      1,748      1,135        35
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We also anticipate a 2 percent reduction in direct PM from a baseline of inventory of 1,184 tons in 2010 to a control inventory of 1,158 tons.
** The Industrial SI >19 kW estimate includes both exhaust and evaporative emissions.


                                                   Table IX.A-2.--2020 Projected Emissions Inventories
                                                                  [Thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Exhaust CO                      Exhaust NOX                      Exhaust HC**
                                                      --------------------------------------------------------------------------------------------------
                       Category                                      With                             With                             With
                                                       Base case   proposed   Percent   Base case   proposed   Percent   Base case   proposed   Percent
                                                                  standards  reduction             standards  reduction             standards  reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
Industrial SI >19kW..................................      2,991        231         92        486         77         84        346         50         86
Snowmobiles..........................................        609        227         63          2          2          0        229         85         63
ATVs.................................................      4,589      3,041         34         25         25          0      1,301        205         84
Off-highway motorcycles..............................        208        154         26          1          1          0        154         77         50
Recreational Marine diesel*..........................          6          6          0         39         32         17        1.3        1.0         25
                                                      --------------------------------------------------------------------------------------------------

[[Page 51169]]

 
      Total..........................................      8,404      3,658         56        552        137         75      2,032        418        79
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We also anticipate a 6 percent reduction in direct PM from a baseline of inventory of 1,470 tons in 2020 to a control inventory of 1,390 tons.
** The Industrial SI >19 kW estimate includes both exhaust and evaporative emissions.

    As described in Section II, we project there would also be 
environmental benefits associated with reduced haze in many sensitive 
areas.
    Finally, anticipated reductions in hydrocarbon emissions correspond 
with reduced emissions of the toxic air emissions referenced in Section 
II.

B. Economic Impact

    In assessing the economic impact of setting emission standards, we 
have made a best estimate of the technologies and their associated 
costs to meet the proposed standards. In making our estimates we have 
relied on our own technology assessment, which includes information 
supplied by individual manufacturers and our own in-house testing. 
Estimated costs include variable costs (for hardware and assembly time) 
and fixed costs (for research and development, retooling, and 
certification). The analysis also considers total operating costs, 
including maintenance and fuel consumption. Cost estimates based on the 
projected technologies represent an expected change in the cost of 
engines as they begin to comply with new emission standards. All costs 
are presented in 2001 dollars. Full details of our cost analysis can be 
found in Chapter 5 of the Draft Regulatory Support Document. We request 
comment on this cost information, and the issues discussed below.
    Cost estimates based on the current projected costs for our 
estimated technology packages represent an expected incremental cost of 
vehicles in the near term. For the longer term, we have identified 
factors that would cause cost impacts to decrease over time. First, we 
project that manufacturers will generally recover their fixed costs 
over a five-year period, so these costs disappear from the analysis 
after the fifth year of production. Second, the analysis incorporates 
the expectation that manufacturers and suppliers will apply ongoing 
research and manufacturing innovation to making emission controls more 
effective and less costly over time. Research in the costs of 
manufacturing has consistently shown that as manufacturers gain 
experience in production and use, they are able to apply innovations to 
simplify machining and assembly operations, use lower cost materials, 
and reduce the number or complexity of component parts.\163\ (see the 
Draft Regulatory Support Document for additional information). The cost 
analysis generally incorporates this learning effect by decreasing 
estimated variable costs by 20 percent starting in the third year of 
production and an additional 20 percent starting in the sixth year of 
production.
---------------------------------------------------------------------------

    \163\ For further information on learning curves, see Chapter 5 
of the Economic Impact, from Regulatory Impact Analysis--Control if 
Air Pollution from New Motor Vehicles: Tier 2 Motor Vehicle 
Emissions Standards and Gasoline Sulfur Control Requirements, 
EPA420-R-99-023, December 1999. A copy of this document is included 
in Air Docket A-2000-01, at Document No. II-A-83. The interested 
reader should also refer to previous final rules for Tier 2 highway 
vehicles (65 FR 6698, February 10, 2000), marine diesel engines (64 
FR 73300, December 29, 1999), nonroad diesel engines (63 FR 56968, 
October 23, 1998), and highway diesel engines (62 FR 54694, October 
21, 1997).
---------------------------------------------------------------------------

    Table IX.B-1 summarizes the projected costs to meet the new 
emission limits (retail-price equivalent). Long-term impacts on engine 
costs are expected to decrease as manufacturers fully amortize their 
fixed costs and learn to optimize their designs and production 
processes to meet the standards more efficiently. The tables also show 
our projections of reduced operating costs for some engines (calculated 
on a net present value basis), which generally results from substantial 
reductions in fuel consumption.
    We estimate that the anticipated increase in the cost of producing 
new Large SI engines for the proposed 2004 standards is estimated to 
range from $550 to $800, depending on fuel type, with a composite 
estimated cost of $600. This cost is attributed to upgrading engines to 
operate with closed-loop fuel systems and three-way catalysts. These 
technologies also improve the overall performance of these engines, 
including improvements to fuel economy that result in reduced operating 
costs that fully offset the additional hardware cost. We further 
estimate additional costs of $45 for the 2007 standards, which 
primarily involves additional development time to optimize engines 
using the same closed-loop systems with three-way catalysts. While 
these costs are a small percentage of the cost of industrial equipment, 
we are aware that this is no small change in this very competitive 
market. Given the compelling advantages of improved performance and 
reduced operating expenses, however, we believe manufacturers will 
generally be able to recover their costs over time.\164\ We request 
comment on whether these estimated costs associated with emission 
controls would affect larger or smaller engines disproportionately to 
the overall cost of producing the engines.
---------------------------------------------------------------------------

    \164\ Chapter 5 of the Draft Regulatory Support Document 
describes why we believe market forces haven't already led 
manufacturers to add fuel-saving technologies to their products.
---------------------------------------------------------------------------

    Projected costs for ATVs and off-highway motorcycles average 
between $50 and $150 per unit. Initial standards are based on the 
emission-control capability of engines four-stroke engines. Those 
models that convert from two-stroke to four-stroke technology will see 
substantial fuel savings in addition to greatly reduced emissions. The 
second phase of standards for ATVs is based on recalibrating four-
stroke engines for lower emissions and adding a two-way catalyst or 
other device to further reduce emissions. With an averaging program 
that allows manufacturers to apply varying degrees of technology to 
different models, we believe they will be able to tailor emission 
controls in a way that reflects the marketing constraints for their 
products. Fuel savings and improved performance offsets the additional 
cost of producing most of these vehicles.
    We expect that the cost of the 2006 snowmobile standards will 
average $55 per snowmobile. These costs are based on manufacturers 
leaning out the air/fuel mixture, improving carburetors for better fuel 
control and less production

[[Page 51170]]

variation, and modifying the engine to withstand higher temperatures 
and potential misfire episodes attributed to enleanment. We expect that 
the 2010 standards will be met through the application of direct 
injection 2-stroke technology on a significant portion of the fleet, as 
well as some conversion to 4-stroke engines. We project that the cost 
of these controls would average $216 per snowmobile, although we 
believe these costs would be offset by fuel savings and improved 
performance.
    Recreational marine diesel engines would be expected to see 
increased costs averaging $443 per engine in the near term. We expect 
manufacturers to meet the proposed standards by improving fuel 
injection systems and making general design changes to the geometries, 
configurations, and calibrations of their engines. These figures are 
somewhat lower than we have projected for the comparable commercial 
marine engines, since the recreational models generally already have 
some of the emission-control technologies needed to meet the proposed 
emission standards.

                  Table IX.B-1.--Estimated Average Cost Impacts of Proposed Emission Standards
----------------------------------------------------------------------------------------------------------------
                                                                                     Increased       Lifetime
                                                                                    production       operating
                           Engine type                               Standard        cost per        costs per
                                                                                      engine*      engine (NPV)
----------------------------------------------------------------------------------------------------------------
Large SI........................................................            2004            $600         -$3,985
Large SI........................................................            2007              45  ..............
Snowmobiles.....................................................            2006              55  ..............
Snowmobiles.....................................................            2010             216            -509
ATVs............................................................            2006              60            -102
ATVs............................................................            2009              52  ..............
Off-highway motorcycles.........................................            2006             151             -98
Marine diesel...................................................            2006             443  ..............
----------------------------------------------------------------------------------------------------------------
* The estimated long-term costs decrease by about 35 percent. Costs presented for second-phase standards for
  Large SI and ATVs are incremental to the first-phase standards.

    The above analysis presents unit cost estimates for each engine 
type. These costs represent the total set of costs the engine 
manufacturers will bear to comply with emission standards. With current 
and projected estimates of engine and equipment sales, we translate 
these costs into projected direct costs to the nation for the new 
emission standards in any year. A summary of the annualized costs to 
manufacturers by equipment type is presented in Table IX.B-2. (The 
annualized costs are determined over the first twenty-years that the 
proposed standards would be effective.) The annual cost savings due to 
reduced operating expenses, start slowly, then increase as greater 
numbers of compliant engines enter the fleet. Table IX.B-2 presents a 
summary of the annualized reduced operating costs as well. Overall, we 
project, based on information currently available to us, that the 
annualized net savings to the economy would be approximately $260 
million per year.

Table IX.B-2.--Estimated Annual Cost to Manufacturers and Annual Savings
     From Reduced Operating Costs of the Proposed Emission Standards
------------------------------------------------------------------------
                                                            Annualized
                                            Annualized     savings from
                                              cost to         reduced
               Engine type                 manufacturers     operating
                                            (millions/         costs
                                               year)        (millions/
                                                               year)
------------------------------------------------------------------------
Large SI................................             $85            $324
Snowmobiles.............................              24              28
ATVs....................................              59              81
Off-highway motorcycles.................              13              10
Marine Diesel...........................               3               0
                                         -------------------------------
      Aggregate.........................             184             443
------------------------------------------------------------------------

C. Cost per Ton of Emissions Reduced

    We calculated the cost per ton of emission reductions for the 
proposed standards. For snowmobiles, this calculation is on the basis 
of CO emissions. For all other engines, we attributed the entire cost 
of the proposed program to the control of ozone precursor emissions (HC 
or NOX or both). A separate calculation could apply to 
reduced CO or PM emissions in some cases. Assigning the full compliance 
costs to a narrow emissions basis leads to cost-per-ton values that 
underestimate of the value of the proposed program.
    Table IX.C-1 presents the near-term discounted cost-per-ton 
estimates for the various engines covered by the proposal. (The 
aggregate cost-per-ton estimates are over the first 20 years of the 
proposed programs.) Reduced operating costs more than offset the 
increased cost of producing the cleaner engines for Phase 1 Large SI, 
Phase 1 ATV, and Phase 2 snowmobile engines. The cost to society and 
the associated cost-per-ton figures for these engines, and the 
aggregate values for all engines covered by this proposal, therefore 
show a net savings resulting from the proposed emission standards. The 
table presents these as $0 per ton, rather than calculating a negative 
value that has no clear meaning.

[[Page 51171]]



                    Table IX.C-1.--Estimated Cost-per-Ton of the Proposed Emission Standards
----------------------------------------------------------------------------------------------------------------
                                                               Discounted cost per ton   Discounted cost per ton
                                                  Discounted          of HC+NOX                   of CO
                                                  reductions ---------------------------------------------------
            Engine type               Standard    per engine    Without                   Without
                                                    (short        fuel      With fuel       fuel      With fuel
                                                   tons) *      savings      savings      savings      savings
----------------------------------------------------------------------------------------------------------------
Large SI (Composite of all fuels).         2004         3.14         $220           $0  ...........  ...........
Large SI (Composite of all fuels).         2007         0.56           80           80  ...........  ...........
Snowmobiles.......................         2006         1.18  ...........  ...........          $50          $50
Snowmobiles.......................         2010         0.32  ...........  ...........          670            0
ATVs..............................         2006         0.88           70            0  ...........  ...........
ATVs..............................         2009         0.09          550          550  ...........  ...........
Off-highway motorcycles...........         2006         0.37          310          110  ...........  ...........
Marine diesel.....................         2006         0.68          580          580  ...........  ...........
Aggregate.........................  ...........  ...........          140            0          100           0
----------------------------------------------------------------------------------------------------------------
* HC+NOX reductions, except snowmobiles which are CO reductions.

D. Additional Benefits

    For most of the engine categories contained in today's proposal, we 
expect there will be a fuel savings as manufacturers redesign their 
engines to comply with the proposed standards. For ATVs and off-highway 
motorcycles, the fuel savings will be realized as manufacturers switch 
from 2-stroke to 4-stroke technologies. For snowmobiles, the fuel 
savings will be realized as manufacturers switch some of their engines 
to more fuel efficient 2-stroke technologies and some of their engines 
to 4-stroke technologies. For Large SI engines, the fuel savings will 
be realized as manufacturers adopt more sophisticated and more 
efficient fuel systems. This is true for all fuels. Overall, we project 
the fuel savings associated with the anticipated changes in technology 
would be about 730 million gallons per year once the program is fully 
phased in. These savings are factored into the calculated costs and 
costs per ton of reduced emissions, as described above.
    The controls in this rule are a cost-effective means of obtaining 
reductions in NOX, NMHC and CO emissions. A related subject 
concerns the value of the health and welfare benefits these reductions 
might produce. While we have not conducted a formal benefit-cost 
analysis for this rule, we believe the benefits of this rule clearly 
will greatly outweigh any cost.
    Ozone causes a range of health problems related to breathing, 
including chest pain, coughing, and shortness of breath. Exposure to PM 
(including secondary PM formed in the atmosphere from NOX 
and NMHC emissions) has been associated in epidemiological studies with 
premature death, increased emergency room visits, and increased 
respiratory symptoms, and exacerbation of existing cardio-pulmonary 
disease. Children, the elderly, and individuals with pre-existing 
respiratory conditions are most at risk regarding both ozone and PM. In 
addition, ozone and PM adversely affect the environment in various 
ways, including crop damage, acid rain, and visibility impairment. A 
discussion of the health and welfare effects from ozone and PM can be 
found in Section II of this preamble. Interested readers should also 
refer to Chapter 1 of the Draft Regulatory Support Document for this 
rule and Chapter 2 of EPA's ``Regulatory Impact Analysis: Heavy-Duty 
Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control 
Requirements.''\165\
---------------------------------------------------------------------------

    \165\ Regulatory Impact Analysis: Heavy-Duty Engine and Vehicle 
Standards and Highway Diesel Fuel Sulfur Control Requirements, 
document EPA420-R-00-026, December 2000. Docket No. 1-2000-01, 
Document No. II-A-13. This document is also available at http://www.epa.gov/otaq/diesel.htm#documents.
---------------------------------------------------------------------------

    In two recent mobile-source control rules, for light-duty vehicles 
(the Tier 2/Gasoline Sulfur rule) and for highway heavy-duty engines 
and diesel fuel, we conducted a full analysis of the expected benefits 
once those rules are fully implemented. These rules, which primarily 
reduced NOX and NMHC emissions, were seen to yield health 
and welfare benefits far exceeding the costs. EPA projected that 
besides reducing premature mortality, these rules will reduce chronic 
bronchitis cases, hospital admissions for respiratory and 
cardiovascular causes, asthma attacks and other respiratory symptoms, 
emergency room visits for asthma attacks, acute bronchitis, work loss 
days, minor restricted activity days, and decreased worker 
productivity.
    The majority of the benefits from those recent rules were due to 
their NOX and NMHC emission reductions. Given the 
similarities in pollutants being controlled, we would expect this rule 
to produce similar benefits per ton of emission reduction. Since the 
cost per ton of emission reduction for this rule is substantially lower 
than that for the two previous rules, we would expect an even more 
favorable benefit-cost ratio. Thus, we believe that the value of the 
health and welfare benefits of this rule would substantially outweigh 
any cost.

X. Public Participation

    We request comment on all aspects of this proposal. This section 
describes how you can participate in this process.

A. How Do I Submit Comments?

    We are opening a formal comment period by publishing this document. 
We will accept comments for the period indicated under DATES above. If 
you have an interest in the program described in this document, we 
encourage you to comment on any aspect of this rulemaking. We request 
comment on various topics throughout this proposal.
    We attempted to incorporate all the comments received in response 
to the Advance Notice of Proposed Rulemaking, though not all comments 
are addressed directly in this document. Anyone who has submitted 
comments on the Advance Notice, or any previous publications related to 
this proposal, and feels that those comments have not been adequately 
addressed is encouraged to resubmit comments as appropriate.
    Your comments will be most useful if you include appropriate and 
detailed supporting rationale, data, and analysis. If you disagree with 
parts of the proposed program, we encourage you to suggest and analyze 
alternate approaches to meeting the air quality goals described in this 
proposal. You should send all comments, except those containing 
proprietary information, to our Air Docket (see Addresses) before the 
end of the comment period.
    If you submit proprietary information for our consideration, you 
should clearly separate it from other comments

[[Page 51172]]

by labeling it ``Confidential Business Information.'' You should also 
send it directly to the contact person listed under FOR FURTHER 
INFORMATION CONTACT instead of the public docket. This will help ensure 
that no one inadvertently places proprietary information in the docket. 
If you want us to use your confidential information as part of the 
basis for the final rule, you should send a nonconfidential version of 
the document summarizing the key data or information. We will disclose 
information covered by a claim of confidentiality only through the 
application of procedures described in 40 CFR part 2. If you don't 
identify information as confidential when we receive it, we may make it 
available to the public without notifying you.

B. Will There Be a Public Hearing?

    We will hold a public hearing in the Washington, DC area on October 
24 and a second public hearing in Denver, CO on October 31. The 
hearings will start at 9:30 am and continue until everyone has had a 
chance to speak.
    If you would like to present testimony at a public hearing, we ask 
that you notify the contact person listed above at least ten days 
before the hearing. You should estimate the time you will need for your 
presentation and identify any needed audio/visual equipment. We suggest 
that you bring copies of your statement or other material for the EPA 
panel and the audience. It would also be helpful if you send us a copy 
of your statement or other materials before the hearing.
    We will make a tentative schedule for the order of testimony based 
on the notifications we receive. This schedule will be available on the 
morning of each hearing. In addition, we will reserve a block of time 
for anyone else in the audience who wants to give testimony.
    We will conduct the hearing informally, and technical rules of 
evidence won't apply. We will arrange for a written transcript of the 
hearing and keep the official record of the hearing open for 30 days to 
allow you to submit supplementary information. You may make 
arrangements for copies of the transcript directly with the court 
reporter.

XI. Administrative Requirements

A. Administrative Designation and Regulatory Analysis (Executive Order 
12866)

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to review by the Office of Management and Budget 
(OMB) and the requirements of this Executive Order. The Executive Order 
defines a ``significant regulatory action'' as any regulatory action 
that is likely to result in a rule that may:
     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;
     Create a serious inconsistency or otherwise interfere with 
an action taken or planned by another agency;
     Materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
     Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    A Draft Regulatory Support Document has been prepared and is 
available in the docket for this rulemaking and at the internet address 
listed under ADDRESSES above. This action was submitted to the Office 
of Management and Budget for review under Executive Order 12866. 
Estimated annual costs of this rulemaking, which proposes standards for 
engines in four distinct categories, are estimated to be $184 million 
per year, thus this proposed rule is considered economically 
significant. Written comments from OMB and responses from EPA to OMB 
comments are in the public docket for this rulemaking.

B. Regulatory Flexibility Act (RFA), As Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

1. Overview
    The RFA generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice and comment 
rulemaking requirements under the Administrative Procedure Act or any 
other statute unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Small entities include small businesses, small organizations, and small 
governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business that meet 
the definition for business based on SBA size standards (see table 
below); (2) a small governmental jurisdiction that is a government of a 
city, county, town, school district or special district with a 
population of less than 50,000; and (3) a small organization that is 
any not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field. The following table provides an 
overview of the primary SBA small business categories potentially 
affected by this regulation.

   Primary SBA Small Business Categories Potentially Affected by This
                           Proposed Regulation
------------------------------------------------------------------------
                                  NAICS a     Defined by SBA as a small
           Industry                codes            business if b
------------------------------------------------------------------------
Motorcycles and motorcycle           336991  500 employees.
 parts manufacturers.
Snowmobile and ATV                   336999  500 employees.
 manufacturers.
Independent Commercial               421110  100 employees.
 Importers of Vehicles and
 parts.
Nonroad SI engines............       333618  1,000 employees.
Internal Combustion Engines...       333618  1,000 employees.
Boat Building and Repairing...       336612  500 employees.
Fuel Tank Manufacturers.......       336211  1,000 employees.
------------------------------------------------------------------------
Notes:
a North American Industry Classification System
b According to SBA's regulations (13 CFR part 121), businesses with no
  more than the listed number of employees or dollars in annual receipts
  are considered ``small entities'' for purposes of a regulatory
  flexibility analysis.


[[Page 51173]]

2. Background
    In accordance with Section 603 of the RFA, EPA prepared an initial 
regulatory flexibility analysis (IRFA) that examines the impact of the 
proposed rule on small entities along with regulatory alternatives that 
could reduce that impact. The IRFA is available for review in the 
docket and is summarized below.
    The process of establishing standards for nonroad engines began in 
1991 with a study to determine whether emissions of carbon monoxide 
(CO), oxides of nitrogen ( NOX), and volatile organic 
compounds (VOCs) from new and existing nonroad engines, equipment, and 
vehicles are significant contributors to ozone and CO concentrations in 
more than one area that has failed to attain the national ambient air 
quality standards for ozone and CO.\166\ In 1994, EPA finalized its 
finding that nonroad engines as a whole ``are significant contributors 
to ozone or carbon monoxide concentrations'' in more than one ozone or 
carbon monoxide nonattainment area.\167\
---------------------------------------------------------------------------

    \166\ ``Nonroad Engine and Vehicle Emission Study--Report and 
Appendices,'' EPA-21A-201, November 1991 (available in Air docket A-
91-24). It is also available through the National Technical 
Information Service, referenced as document PB 92-126960.
    \167\ 59 FR 31306 (July 17, 1994).
---------------------------------------------------------------------------

    Upon this finding, the Clean Air Act (CAA or the Act) requires EPA 
to establish standards for all classes or categories of new nonroad 
engines that cause or contribute to air quality nonattainment in more 
than one ozone or carbon monoxide (CO) nonattainment area. Since the 
finding in 1994, EPA has been engaged in the process of establishing 
programs to control emissions from nonroad engines used in many 
different applications. Nonroad categories already regulated include:
     Land-based compression ignition (CI) engines (e.g., farm 
and construction equipment),
     Small land-based spark-ignition (SI) engines (e.g., lawn 
and garden equipment, string trimmers).
     Marine engines (outboards, personal watercraft, CI 
commercial, CI engines 37kW),
     Locomotive engines.
    On December 7, 2000, EPA issued an Advance Notice of Proposed 
Rulemaking (ANPRM). As discussed in the ANPRM, the proposal under 
development will be a continuation of the process of establishing 
standards for nonroad engines and vehicles, as required by CAA section 
213(a)(3). If, as expected, standards for these engines and vehicles 
are established, essentially all new nonroad engines will be required 
to meet emissions control requirements. The proposal being developed 
covers compression-ignition recreational marine engines. It also covers 
several nonroad spark ignition (SI) engine applications, as follows:
     Land-based recreational engines (for example, engines used 
in snowmobiles, off-highway motorcycles, and all-terrain vehicles 
(ATVs)),
     Marine sterndrive and inboard (SD/I) engines and boats 
powered by SI marine engines,\168\
---------------------------------------------------------------------------

    \168\ As a shorthand notation in this document, we are using 
``recreational marine engines'' to mean recreational marine diesel 
engines and all gasoline SD/I engines, even though some SD/I 
applications could be commercial. We are similarly using 
``recreational boats'' to mean boats powered by recreational marine 
diesel engines as well as all boats powered by gasoline engines, 
even though some gasoline engine-powered boats may be commercial.
---------------------------------------------------------------------------

     Land-based engines rated over 19 kW (Large SI) (for 
example, engines used in forklifts); this category includes auxiliary 
marine engines, which are not used for propulsion.
    EPA found that the nonroad engines described above cause or 
contribute to air quality nonattainment in more than one ozone or 
carbon monoxide (CO) nonattainment area.\169\ CAA section 213 (a)(3) 
requires EPA to establish standards that achieve the greatest degree of 
emissions reductions achievable taking cost and other factors into 
account. EPA plans to propose emissions standards and related programs 
consistent with the requirements of the Act.
---------------------------------------------------------------------------

    \169\ See Final Finding, ``Control of Emissions from New Nonroad 
Spark-Ignition Engines Rated above 19 Kilowatts and New Land-Based 
Recreational Spark-Ignition Engines'' elsewhere in today's Federal 
Register for EPA's finding for Large SI engines and recreational 
vehicles. EPA's findings for marine engines are contained in 61 FR 
52088 (October 4, 1996) for gasoline engines and 64 FR 73299 
(December 29, 1999) for diesel engines.
---------------------------------------------------------------------------

    In addition to proposing standards for the nonroad vehicles and 
engines noted above, EPA also intends to review EPA requirements for 
highway motorcycles. The emissions standards for highway motorcycles 
were established twenty-three years ago. These standards allow 
motorcycles to emit about 100 times as much per mile as new cars and 
light trucks. California recently adopted new emissions standards for 
highway motorcycles, and new standards and testing cycles are being 
considered internationally. There may be opportunities to reduce 
emissions in a cost-effective way.
    The program under consideration will cover engines and vehicles 
that vary in design and use, and many readers may only be interested in 
one or two of the applications. There are various ways EPA could group 
the engines and present information. For purposes of the proposed rule 
EPA has chosen to group engines by common applications (e.g, 
recreational land-based engines, marine engines, large spark ignition 
engines used in commercial applications).
3. Summary of Regulated Small Entities
    The small entities directly regulated by this proposed rule are the 
following:
    a. Recreational Vehicles (ATVs, snowmobiles, and off-highway 
motorcycles). The ATV sector has the broadest assortment of 
manufacturers. There are seven companies representing over 95 percent 
of total domestic ATV sales. The remaining 5 percent come from 
importers who tend to import inexpensive, youth-oriented ATVs from 
China and other Asian nations. We have identified 21 small companies 
that offer off-road motorcycles, ATVs, or both products. Annual unit 
sales for these companies can range from a few hundred to several 
thousand units per year.
    Based on available industry information, four major manufacturers, 
Arctic Cat, Bombardier (also known as Ski-Doo), Polaris, and Yamaha, 
account for over 99 percent of all domestic snowmobile sales. The 
remaining one percent comes from very small manufacturers who tend to 
specialize in unique and high performance designs. We have identified 
three small manufacturers of snowmobiles and one potential small 
manufacturer who hopes to produce snowmobiles within the next year.
    Two of these manufacturers (Crazy Mountain and Fast), plus the 
potential newcomer (Redline) specialize in high performance versions of 
standard recreational snowmobile types (i.e., travel and mountain 
sleds). The other manufacturer (Fast Trax) produces a unique design, 
which is a scooter-like snowmobile designed to be ridden standing up. 
Most of these manufacturers build less than 50 units per year.
    b. Highway Motorcycles. Of the numerous manufacturers supplying the 
U.S. market for highway motorcycles, Honda, Harley Davidson, Yamaha, 
Kawasaki, Suzuki, and BMW are the largest, accounting for 95 percent or 
more of the total U.S. sales. All of these companies except Harley-
Davidson and BMW also manufacture off-road motorcycles and ATVs for the 
U.S. market. Harley-Davidson is the only company manufacturing highway 
motorcycles exclusively in the U.S. for the U.S. market.
    Since highway motorcycles have had to meet emission standards for 
the last

[[Page 51174]]

twenty years, EPA has good information on the number of companies that 
manufacture or market highway motorcycles for the U.S. market in each 
model year. In addition to the big six manufacturers noted above, EPA 
finds as many as several dozen more companies that have operated in the 
U.S. market in the last couple of model years. Most of these are U.S. 
companies that are either manufacturing or importing motorcycles, 
although a few are U.S. affiliates of larger companies in Europe or 
Asia. Some of the U.S. manufacturers employ only a few people and 
produce only a handful of custom motorcycles per year, while others may 
employ several hundred and produce up to several thousand motorcycles 
per year.
    c. Marine Vessels. Marine vessels include the boat, engine, and 
fuel system. The evaporative emission controls discussed above may 
affect the boat builders and/or the fuel tank manufacturers. Exhaust 
emission controls including NTE requirements, as addressed in the 
August 29, 1999 SBAR Panel Report, would affect the engine 
manufacturers and may affect boat builders.
    EPA has less precise information about recreational boat builders 
than is available about engine manufacturers. EPA has utilized several 
sources, including trade associations and Internet sites when 
identifying entities that build and/or sell recreational boats. EPA has 
also worked with an independent contractor to assist in the 
characterization of this segment of the industry. Finally, EPA has 
obtained a list of nearly 1,700 boat builders known to the U.S. Coast 
Guard to produce boats using engines for propulsion. At least 1,200 of 
these companies install engines that use gasoline fueled engines and 
would therefore be subject to the evaporative emission control program 
discussed above. More than 90% of the companies identified so far would 
be considered small businesses as defined by SBA. EPA continues to 
develop a more complete picture of this segment of the industry and 
will provide additional information as it becomes available.
    Based on information supplied by a variety of recreational boat 
builders, fuel tanks for boats using SI marine engines are usually 
purchased from fuel tank manufacturers. However, some boat builders 
construct their own fuel tanks. The boat builder provides the 
specifications to the fuel tank manufacturer who helps match the fuel 
tank for a particular application. It is the boat builder's 
responsibility to install the fuel tank and connections into their 
vessel design. For vessels designed to be used with small outboard 
engines, the boat builder may not install a fuel tank; therefore, the 
end user would use a portable fuel tank with a connection to the 
engine.
    EPA has determined that total sales of tanks for gasoline marine 
applications is approximately 550,000 units per year. The market is 
broken into manufacturers that produce plastic tanks and manufacturers 
that produce aluminum tanks. EPA has determined that there are at least 
seven companies that make plastic fuel tanks with total sales of 
approximately 440,000 units per year. EPA has determined that there at 
least four companies that make aluminum fuel tanks with total sales of 
approximately 110,000 units per year. All but one of these plastic and 
aluminum fuel tank manufacturers is a small business as defined under 
SBA.
    EPA has determined that there are at least 16 companies that 
manufacture CI diesel engines for recreational vessels. Nearly 75 
percent of diesel engines sales for recreational vessels in 2000 can be 
attributed to three large companies. Six of the 16 identified companies 
are considered small businesses as defined by SBA. Based on sales 
estimates for 2000, these six companies represent approximately 4 
percent of recreational marine diesel engine sales. The remaining 
companies each comprise between two and seven percent of sales for 
2000.
    EPA has determined that there are at least 24 companies that 
manufacture SD/I gasoline engines (including airboats and jet boats) 
for recreational vessels. Seventeen of the identified companies are 
considered small businesses as defined by SBA. These 17 companies 
represent approximately 6 percent of recreational gasoline marine 
engines sales for 2000. Approximately 70-80 percent of gasoline SD/I 
engines manufactured in 2000 can be attributed to one company. The next 
largest company is responsible for about 10-20 percent of 2000 sales.
    d. Large Spark Ignition Engines. EPA is aware of one engine 
manufacturer of Large SI engines that qualifies as a small business. 
This company plans to produce engines that meet the standards adopted 
by CARB in 2004, with the possible exception of one engine family. If 
EPA adopts long-term standards, this would require manufacturers to do 
additional calibration and testing work. If EPA adopts new test 
procedures (including transient operation), there may also be a cost 
associated with upgrading test facilities.
4. Potential Reporting, Record Keeping, and Compliance
    For any emission control program, EPA must have assurances that the 
regulated engines will meet the standards. Historically, EPA programs 
have included provisions placing manufacturers responsible for 
providing these assurances. The program that EPA is considering for 
manufacturers subject to this proposal may include testing, reporting, 
and record keeping requirements. Testing requirements for some 
manufacturers may include certification (including deterioration 
testing), and production line testing. Reporting requirements would 
likely include test data and technical data on the engines including 
defect reporting. Manufacturers would likely have to keep records of 
this information.
5. Related Federal Rules
    The Panel is aware of several other current Federal rules that 
relate to the proposed rule under development. During the Panel's 
outreach meeting, SERs specifically pointed to Consumer Product Safety 
Commission (CPSC) regulations covering ATVs, and noted that they may be 
relevant to crafting an appropriate definition for a competition 
exclusion in this category. The Panel recommends that EPA continue to 
consult with the CPSC in developing a proposed and final rule in order 
to better understand the scope of the Commission's regulations as they 
may relate to the competition exclusion.
    Other SERs, representing manufacturers of marine engines, noted 
that the U.S. Coast Guard regulates vessel tanks, most notably tank 
pressure and anti-siphoning requirements for carburetted engines. Tank 
manufacturers would have to take these requirements into account in 
designing evaporative control systems. The Panel recommends that EPA 
continue to work with the Coast Guard to evaluate the safety 
implications of any proposed evaporative emissions standards and to 
avoid interference with Coast Guard safety regulations.
    The Panel is also aware of other Federal rules that relate to the 
categories that EPA would address with the proposed rule, but are not 
likely to affect policy considerations in the rule development process. 
For example, there are now EPA noise standards covering off-road 
motorcycles; however, EPA expects that most emission control devices 
are likely to reduce, rather than increase, noise, and that therefore 
the noise standards are not likely to be important in developing a 
proposed rule.

[[Page 51175]]

    OTAQ is currently developing a proposal that would revise the rule 
assigning fees to be paid by parties required to certify engines in 
return for continuing Government oversight and testing. Among other 
options, EPA could propose to extend the fee structure to several 
classes of non-road engines for which requirements are being 
established for the first time under the Recreation Rule. The Panel 
understands that EPA will carefully examine the potential impacts of 
the Fees Rule on small businesses. The Panel also notes that EPA's 
Office of Air Quality, Planning, and Standards (OAQPS) is preparing a 
Maximum Achievable Control Technology (MACT) standard for Engine 
Testing Facilities, which is a related matter.
6. Significant Panel Findings
    The Panel considered a wide range of options and regulatory 
alternatives for providing small businesses with flexibility in 
complying with the proposed emissions standards and related 
requirements. As part of the process, the Panel requested and received 
comment on several ideas for flexibility that were suggested by SERs 
and Panel members. The major options recommended by the Panel are 
summarized below. The complete set of recommendations can be found in 
Section 9 of the Panel's full Report.
    Many of the flexible approaches recommended by the Panel can be 
applied to several of the equipment categories that would potentially 
be affected by the proposed rule EPA is developing. These approaches 
are identified in Table 1. First Tier Flexibilities: Based on 
consultations with SERs, the Panel believes that the first four 
provisions in Table 1 are likely to provide the greatest flexibility 
for many small entities. These provisions are likely to be most 
valuable because they either provide more time for compliance (e.g., 
additional leadtime and hardship provisions) or allow for certification 
of engines based on particular engine designs or certification to other 
EPA programs. Second Tier Flexibilities: The remaining four approaches 
have the potential to reduce near-term and even long-term costs once a 
small entity has a product it is preparing to certify. These are 
important in that the costs of testing multiple engine families, 
testing a fraction of the production line, and/or developing 
deterioration factors can be significant. Small businesses could also 
meet an emission standard on average or generate credits for producing 
engines which emit at levels below the standard; these credits could 
then be sold to other manufacturers for compliance or banked for use in 
future model years.
    During the consultation process, it became evident that, in a few 
situations, it could be helpful to small entities if unique provisions 
were available. Five such provisions are described below.
    a. Snowmobiles. The Panel recommends EPA seek comment on a 
provision which would allow small snowmobile manufacturers to petition 
EPA for a relaxed standard for one or more engine families, up to 300 
engines per year, until the family is retired or modified, if such a 
standard is justifiable based on the criteria described in the Panel 
report.
    b. ATVs and Off-road Motorcycles. The Panel recommends that the 
hardship provision for ATVs and off-road motorcycles allow hardship 
relief to be reviewed annually for a period that EPA anticipates will 
likely be no more than two years in order for importers to obtain 
complying products.
    c. Large SI. The Panel recommends that small entities be granted 
the flexibility initially to reclassify a small number of their small 
displacement engines into EPA's small spark-ignition engine program (40 
CFR 90). Small entities would be allowed to use those requirements in 
lieu of the requirements EPA intends to propose for large entities.
    d. Marine Vessel Tanks. Most of this sector involves small fuel 
tank manufacturers and small boat builders. The Panel recommends that 
the program be structured with longer lead times and an early credit 
generation program to enable the fuel tank manufacturers to implement 
controls on tanks on a schedule consistent with their normal turnover 
of fuel tank molds.
    e. Highway Motorcycles. The California Air Resources Board (CARB) 
has found that California's Tier 2 standard is potentially infeasible 
for small manufacturers. Therefore, the Panel recommends that EPA delay 
making decisions on the applicability to small businesses of Tier 2 or 
other such revisions to the federal regulations until California's 2006 
review is complete.
7. Summary of SBREFA Process and Panel Outreach
    As required by section 609(b) of the RFA, as amended by SBREFA, EPA 
conducted outreach to small entities and convened a Small Business 
Advocacy Review Panel to obtain advice and recommendations of 
representatives of the small entities that potentially would be subject 
to the rule's requirements.
    On May 3, 2001, EPA's Small Business Advocacy Chairperson convened 
this Panel under Section 609(b) of the Regulatory Flexibility Act (RFA) 
as amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA). In addition to the Chair, the Panel consisted of the 
Director of the Assessment and Standards Division (ASD) within EPA's 
Office of Transportation and Air Quality, the Chief Counsel for 
Advocacy of the Small Business Administration, and the Deputy 
Administrator of the Office of Information and Regulatory Affairs 
within the Office of Management and Budget. As part of the SBAR 
process, the Panel met with small entity representatives (SERs) to 
discuss the potential emission standards and, in addition to the oral 
comments from SERs, the Panel solicited written input. In the months 
preceding the Panel process, EPA conducted outreach with small entities 
from each of the five sectors as described above. On May 18, 2001, the 
Panel distributed an outreach package to the SERs. On May 30 and 31, 
2001, the Panel met with SERs to hear their comments on preliminary 
alternatives for regulatory flexibility and related information. The 
Panel also received written comments from the SERs in response to the 
discussions at this meeting and the outreach materials. The Panel asked 
SERs to evaluate how they would be affected under a variety of 
regulatory approaches, and to provide advice and recommendations 
regarding early ideas for alternatives that would provide flexibility 
to address their compliance burden.
    SERs representing companies in each of the sectors addressed by the 
Panel raised concerns about the potential costs of complying with the 
rules under development. For the most part, their concerns were focused 
on two issues: (1) The difficulty (and added cost) that they would face 
in complying with certification requirements associated with the 
standards EPA is developing, and (2) the cost of meeting the standards 
themselves. SERs observed that these costs would include the 
opportunity cost of deploying resources for research and development, 
expenditures for tooling/retooling, and the added cost of new engine 
designs or other parts that would need to be added to equipment in 
order to meet EPA emission standards. In addition, in each category, 
the SERs noted that small manufacturers (and in the case of one 
category, small importers) have fewer resources and are therefore less 
well equipped to undertake these new activities and expenditures. 
Furthermore, because their product lines tend to be smaller,

[[Page 51176]]

any additional fixed costs must be recovered over a smaller number of 
units. Thus, absent any provisions to address these issues, new 
emission standards are likely to impose much more significant adverse 
effects on small entities than on their larger competitors.
    The Panel discussed each of the issues raised in the outreach 
meetings and in written comments by the SERs. The Panel agreed that EPA 
should consider the issues raised by the SERs and that it would be 
appropriate for EPA to propose and/or request comment on various 
alternative approaches to address these concerns. The Panel's key 
discussions centered around the need for and most appropriate types of 
regulatory compliance alternatives for small businesses. The Panel 
considered a variety of provisions to reduce the burden of complying 
with new emission standards and related requirements. Some of these 
provisions would apply to all companies (e.g., averaging, banking, and 
trading), while others would be targeted at the unique circumstances 
faced by small businesses. A complete discussion of the regulatory 
alternatives recommended by the Panel can be found in the Final Panel 
Report. Copies of the Final Report can be found in the docket for this 
rulemaking or at www.epa.gov/sbrefa. Summaries of the Panel's 
recommended alternatives for each of the sectors subject to this action 
can be found in the respective sections of the preamble.
    As required by section 609(b) of the RFA, as amended by SBREFA, EPA 
also conducted outreach to small entities and convened a Small Business 
Advocacy Review Panel to obtain advice and recommendations of 
representatives of the small entities that potentially would be subject 
to the rule's requirements. EPA's Small Business Advocacy Chairperson 
convened this on May 3, 2001. In addition to the Chair, the Panel 
consisted of the Director of the Assessment and Standards Division 
(ASD) within EPA's Office of Transportation and Air Quality, the Chief 
Counsel for Advocacy of the Small Business Administration, and the 
Deputy Administrator of the Office of Information and Regulatory 
Affairs within the Office of Management and Budget.
    The proposal being developed covers diesel engines used in 
recreational marine applications. It also covers several nonroad spark 
ignition (SI) engine applications, as follows:
     Land-based recreational engines (for example, engines used 
in snowmobiles, off-highway motorcycles, and all-terrain vehicles 
(ATVs)),
     Marine sterndrive and inboard (SD/I) engines and boats 
powered by SI marine engines,
     Land-based engines rated over 19 kW (Large SI) (for 
example, engines used in forklifts); this category includes auxiliary 
marine engines, which are not used for propulsion.
    In addition to the nonroad vehicles and engines noted above, EPA 
also intends to update EPA requirements for highway motorcycles. 
Finally, the proposal being developed included evaporative emission 
control requirements for gasoline fuel tanks and systems used on marine 
vessels.
    The Panel met with Small Entity Representatives (SERs) to discuss 
the potential emissions standards and, in addition to the oral comments 
from SERs, the Panel solicited written input. In the months preceding 
the Panel process, EPA conducted outreach with small entities from each 
of the five sectors as described above. On May 18, 2001, the Panel 
distributed an outreach package to the SERs. On May 30 and 31, 2001, 
the Panel met with SERs to hear their comments on preliminary options 
for regulatory flexibility and related information. The Panel also 
received written comments from the SERs in response to the discussions 
at this meeting and the outreach materials. The Panel asked SERs to 
evaluate how they would be affected under a variety of regulatory 
approaches, and to provide advice and recommendations regarding early 
ideas to provide flexibility. See Section 8 of the Panel Report for a 
complete discussion of SER comments, and Appendices A and B for 
summaries of SER oral comments and SER written comments.
    Consistent with the RFA/SBREFA requirements, the Panel evaluated 
the assembled materials and small-entity comments on issues related to 
the elements of the IRFA. A copy of the Panel report is included in the 
docket for this proposed rule. The following are Panel recommendations 
adopted by the Agency. Please note all Panel recommendations were 
adopted for this proposal.
    a. Related Federal Rules. The Panel recommends that EPA continue to 
consult with the CPSC in developing a proposed and final rule in order 
to better understand the scope of the Commission's regulations as they 
may relate to the competition exclusion. In addition, the Panel 
recommends that EPA continue to work with the Coast Guard to evaluate 
the safety implications of any proposed evaporative emissions standards 
and to avoid interference with Coast Guard safety regulations.
    b. Regulatory Flexibility Alternatives. The Panel recommends that 
EPA consider and seek comments on a wide range of alternatives, 
including the flexibility options described below.
    c. Large SI Engines. The Panel recommends that EPA propose several 
possible provisions to address concern that the new EPA standards could 
potentially place small businesses at a competitive disadvantage to 
larger entities in the industry. These provisions are described below.
    Using Certification and Emissions Standards from Other EPA 
Programs. The Panel made several recommendations for this provision. 
First, the Panel recommends that EPA temporarily expand this 
arrangement to allow small numbers of constant-speed engines up to 2.5 
liters (up to 30 kW) to be certified to the Small SI standards. Second, 
the Panel further recommends that EPA seek comment on the 
appropriateness of limiting the sales level of 300. Third, the Panel 
recommends that EPA request comment on the anticipated cap of 30 kW on 
the special treatment provisions outlined above, or whether a higher 
cap on power rating is appropriate. Finally, the Panel recommends that 
EPA propose to allow small-volume manufacturers producing engines up to 
30 kW to certify to the small SI standards during the first 3 model 
years of the program. Thereafter, the standards and test procedures 
which could apply to other companies at the start of the program would 
apply to small businesses.
    Delay of Proposed Standards. If EPA includes a second phase of 
standards in its proposal, the Panel recommends that EPA propose to 
delay the applicability of these standards to small-volume 
manufacturers for three years beyond the date at which they would 
generally apply to accommodate the possibility that small companies 
need to undertake further design work to adequately optimize their 
designs and to allow them to recover the costs associated with the 
Phase 1 emission standards that EPA is contemplating.
    Production Line Testing. The Panel made several recommendations for 
this provision. First, the Panel recommends that EPA adopt provisions 
that allow more flexibility than is available under the California 
Large SI program or other EPA programs generally to address the concern 
that production-line testing is another area where small-volume 
manufacturers typically face a difficult testing burden. Second, the 
Panel recommends that EPA allow small-volume manufacturers to have a 
reduced testing rate if they have consistently good test results from

[[Page 51177]]

testing production-line engines. Finally, the Panel recommends that EPA 
allow small-volume manufacturers to use alternative low-cost testing 
options to show that production-line engines meet emission standards.
    Deterioration Factors. The Panel recommends that EPA allow small-
volume manufacturers to develop a deterioration factor based on 
available emissions measurements and good engineering judgement.
    Hardship Provision. The Panel recommends that EPA propose two types 
of hardship provisions for Large SI engines. First the Panel recommends 
that EPA allow small businesses to petition EPA for additional lead 
time (e.g., up to 3 years) to comply with the standards. Second, the 
Panel recommends that EPA allow small businesses to apply for hardship 
relief if circumstances outside their control cause the failure to 
comply (i.e., supply contract broken by parts supplier) and if the 
failure to sell the subject engines would have a major impact on the 
company's solvency.
    d. Off-Road Motorcycles and All-Terrain Vehicles (ATVs). The Panel 
made the following recommendations for this subcategory.
    The Panel recommends that EPA propose to apply the flexibilities 
described below to engines produced or imported by small entities with 
combined off-road motorcycle and ATV annual sales of less than 5,000 
units per model year.
    The Panel recommends that EPA request comment on the 
appropriateness of the 5,000 unit per model year threshold.
    The Panel recommends that EPA request comment on allowing small 
entities with sales in excess of 5,000 units to certify using the 
flexible approaches described below for a number of engines equal to 
their 2000 or 2001 sales level.
    The Panel recommends that EPA describe and seek comment on the 
effect of the proposed standard on these entities, including a request 
for any data and/or related studies to estimate the extent to which 
sales of their products are likely to be reduced as a result of changes 
in product price that are attributable to the proposed standards.
    The Panel recommends that, in the final rule, EPA assess any 
information received in response to this request for purposes of 
informing the final rule decision making process on whether additional 
flexibility (beyond that considered in this report) is warranted.
    Additional Lead-time to Meet the Proposed Standards. First, the 
Panel recommends that EPA propose at least a two year delay, but seek 
comment on whether a larger time period is appropriate given the costs 
of compliance for small businesses and the relationship between 
importers and their suppliers. Second, the Panel recommends that EPA 
provide additional time for small volume manufacturers to revise their 
manufacturing process, and would allow importers to change their supply 
chain to acquire complying products. Third, the Panel recommends that 
EPA request comment on the appropriate length for a delay (lead-time).
    Design Certification. First, the Panel recommends that EPA propose 
to permit small entities to use design certification. Second, the Panel 
recommends that EPA work with the Small Entity Representatives and 
other members of the industry to develop appropriate criteria for such 
design based certification.
    Broaden Engine Families. The Panel recommends that EPA request 
comment on engine family flexibility and conducting design-based 
certification emissions testing.
    Production Line Testing Waiver. The Panel recommends that EPA 
propose to provide small manufacturers and small importers a waiver 
from manufacturer production line testing. The Panel also recommends 
that EPA request comment on whether limits or the scope of this waiver 
are appropriate.
    Use of Assigned Deterioration Factors During Certification. The 
Panel recommends that EPA propose to provide small business with the 
option to use assigned deterioration factors.
    Using Certification and Emissions Standards from Other EPA 
Programs. The Panel recommends that EPA propose to provide small 
business with this flexibility through the fifth year of the proposed 
program and request comment on which of the already established 
standards and programs are believed to be a useful certification option 
for the small businesses.
    Averaging, Banking, and Trading. The Panel recommends that EPA 
propose to provide small business with the same averaging, banking, and 
trading program flexibilities proposed for large manufacturers and 
request comment on how the provisions could be enhanced for small 
business to make them more useful.
    Hardship Provisions. The Panel recommends that EPA propose two 
types of hardship program for off-road motorcycles and ATVs: (1) EPA 
should allow small manufacturers and small importers to petition EPA 
for limited additional lead-time to comply with the standards; and (2) 
allow small manufacturers and small importers to apply for hardship 
relief if circumstances outside their control cause the failure to 
comply (i.e. supply contract broken by parts supplier) and if failure 
to sell the subject engines or vehicles would have a major impact on 
the company's solvency.
    The Panel also recommends that EPA propose both aspects of the 
hardship provisions for small off-road motorcycle and ATV manufacturers 
and importers and seek comment on the implementation provisions.
    e. Marine Vessels. Burden Reduction Approaches Designed for Small 
Boat Builders and Fuel Tank Manufacturers.
    Smooth Transition to Proposed Standards. The Panel recommends that 
EPA propose an approach that would implement any evaporative standards 
five years after a regulation for marine engines takes effect. The 
Panel also recommends that EPA seek comment on this five year period 
and on whether there are small entities whose product line is dominated 
by tanks that turn over at a time rate slower time than five years.
    Design-Based Certification. The Panel recommends that EPA propose 
to grant small businesses the option of certifying to the evaporative 
emission performance requirements based on fuel tank design 
characteristics that reduce emissions. The Panel also recommends that 
EPA seek comment on and consider proposing an approach that would allow 
manufacturers to use this averaging approach with designs other than 
those listed in the final rule.
    ABT of Emission Credits with Design-Based Certification. The Panel 
recommends that EPA allow manufacturers using design-based 
certification to generate credits. The Panel also recommends that EPA 
provide adequately detailed design specifications and associated 
emission levels for several technology options that could be used to 
certify.
    Broadly Defined Product Certification Families. The Panel 
recommends that EPA take comment on the need for broadly defined 
emission families and how these families should be defined.
    Hardship Provisions. The Panel recommends that EPA propose two 
types of hardship programs for marine engine manufacturers and fuel 
tank manufacturers: (1) Allow small businesses to petition EPA for 
additional lead time to comply with the standards; and (2) allow small 
businesses to apply for hardship relief if circumstances outside their 
control cause the failure to comply (i.e. supply contract broken by 
parts supplier) and if the failure to sell the subject fuel tanks

[[Page 51178]]

or boats would have a major impact on the company's solvency. The Panel 
also recommends that EPA work with small manufacturers to develop these 
criteria and how they would be used.
    Burden Reduction Approaches Designed for Small Marinizers of Marine 
Engines with Respect to NTE Provisions. The Panel recommends that EPA 
propose to specifically include NTE in this design-based approach, if 
EPA proposes a standard that includes NTE for small marinizers.
    f. Snowmobiles. Delay of Proposed Standards. The Panel recommends 
that EPA propose to delay the standards for small snowmobile 
manufacturers by two years from the date at which other manufacturers 
would be required to comply. The Panel also recommends that EPA propose 
that the emission standards for small snowmobile manufacturers be 
phased in over an additional two year (four years to fully implement 
the standard).
    Design-Based Certification. The Panel recommends that EPA take 
comment on how a design-based certification could be applied to small 
snowmobile manufacturers and that EPA work with the small entities in 
the design and implementation of this concept.
    Broader Engine Families. The Panel recommends that EPA propose a 
provision for small snowmobile manufactures that would use relaxed 
criteria for what constitutes an engine or vehicle family.
    Elimination of Production Line Testing Requirements. The Panel 
recommends that EPA propose that small snowmobile manufacturers not be 
subject to production line testing requirements.
    Use of Assigned DF During Certification. The Panel recommends that 
EPA propose to allow small snowmobile manufacturers to elect to use 
deterioration factors determined by EPA to demonstrate end of useful 
life emission levels, thus reducing development/testing burden rather 
than performing a durability demonstration for each engine family as 
part of the certification testing requirement.
    Using Certification and Emission Standards from Other EPA Programs. 
If the manufacturer were to change the bore or stroke of the engine, it 
is likely that the engine would no longer qualify as emissions could 
increase, allow this option for small snowmobile manufacturers.
    Averaging, Banking and Trading. The Panel recommends that EPA 
propose an averaging, banking and trading program for snowmobiles, and 
seek comment on additional ABT flexibilities it should consider for 
small snowmobile manufacturers.
    Hardship Provisions. The Panel recommends that EPA propose two 
types of hardship programs for small snowmobile manufacturers: (1) 
Allow small snowmobile manufacturers to petition EPA for additional 
lead time to comply with the standards; and (2) allow small snowmobile 
manufacturers to apply for hardship relief if circumstances outside 
their control cause the failure to comply (i.e. supply contract broken 
by parts supplier) and if failure to sell the subject engines or 
vehicles would have a major impact on the company's solvency.
    Unique Snowmobile Engines. The Panel recommends that EPA seek 
comment on an additional provision, which would allow a small 
snowmobile manufacturer to petition EPA for relaxed standards for one 
or more engine families. The Panel also recommends that EPA allow a 
provision for EPA to set an alternative standard at a level between the 
prescribed standard and the baseline level until the engine family is 
retired or modified in such a way as to increase emission and for the 
provision to be extended for up to 300 engines per year per 
manufacturer would assure it is sufficiently available for those 
manufacturers for whom the need is greatest. Finally, the Panel 
recommends that EPA seek comment on initial and deadline dates for the 
submission of such petitions.
    g. Highway Motorcycles. The Panel recommends that EPA include the 
flexibilities described below for small entities with highway 
motorcycle annual sales of less than 3,000 units per model year 
(combined Class I, II, and III motorcycles) and fewer than 500 
employees.
    Delay of Proposed Standards. The Panel recommends that EPA propose 
to delay compliance with the Tier 1 standard of 1.4 g/km 
HC+NOX until the 2008 model year for small volume 
manufacturers. The Panel also recommends that EPA seek comment on 
whether additional time is needed for small businesses to comply with 
the Federal program. The Panel recommends that EPA participate with 
CARB in the 2006 progress review as these provisions are revisited, and 
delay making decisions on the applicability to small businesses of Tier 
2 or other revisions to the federal regulations that are appropriate 
following the review. The Panel also recommends that any potential Tier 
2 requirements for small manufacturer motorcycles consider potential 
test procedure changes arising from the ongoing World Motorcycle Test 
Cycle work described in the Panel Report.
    Broader Engine Families. The Panel recommends that EPA deep the 
current existing regulations for small volume highway motorcycle 
manufacturers.
    Exemption from Production Line Testing. The Panel recommends that 
EPA keep the current provisions for no mandatory production line 
testing requirement for highway motorcycles and allow the EPA to 
request production vehicles from any certifying manufacturer for 
testing.
    Averaging, Banking, and Trading (ABT). The Panel recommends that 
EPA propose an ABT program for highway motorcycles.
    Hardship Provisions. The Panel recommends that EPA propose two 
types of hardship programs for highway motorcycles: (1) Allow small 
businesses to petition EPA for additional lead time to comply with the 
standards; and (2) allow small businesses to apply for hardship relief 
if circumstances outside their control cause the failure to comply 
(i.e. supply contract broken by parts supplier) and if failure to sell 
the subject engines or vehicles would have a major impact on the 
company's solvency. The Panel also recommends that EPA request comment 
on the California requirements, which do not include hardship 
provisions.
    Reduced Certification Data Submittal and Testing Requirements. The 
Panel recommends that EPA keep current EPA regulations allow 
significant flexibility for certification by manufacturers who project 
fewer than 10,000 unit sales of combined Class I, II, and III 
motorcycles.
    We invite comments on all aspects of the proposal and its impacts 
on small entities.

C. Paperwork Reduction Act

    The information collection requirements (ICR) in this proposed rule 
will be submitted for approval to the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. We will 
announce in a separate Federal Register Notice that the ICR has been 
submitted to OMB and will take comments on the proposed ICR at that 
time.
    The Agency may not conduct or sponsor an information collection, 
and a person is not required to respond to a request for information, 
unless the information collection request displays a currently valid 
OMB control number. The OMB control numbers for EPA's regulations are 
listed in 40 CFR Part 9 and 48 CFR Chapter 15.

[[Page 51179]]

D. Intergovernmental Relations

1. Unfunded Mandates Reform Act
    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for federal agencies to assess the 
effects of their regulatory actions on state, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``federal mandates'' that 
may result in expenditures to state, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective, or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective, or least burdensome alternative if the 
Administrator publishes with the final rule an explanation of why that 
alternative was not adopted.
    Before EPA establishes any regulatory requirements that may 
significantly or uniquely affect small governments, including tribal 
governments, it must have developed under section 203 of the UMRA a 
small government agency plan. The plan must provide for notifying 
potentially affected small governments, enabling officials of affected 
small governments to have meaningful and timely input in the 
development of EPA regulatory proposals with significant federal 
intergovernmental mandates, and informing, educating, and advising 
small governments on compliance with the regulatory requirements.
    This rule contains no federal mandates for state, local, or tribal 
governments as defined by the provisions of Title II of the UMRA. The 
rule imposes no enforceable duties on any of these governmental 
entities. Nothing in the rule would significantly or uniquely affect 
small governments.
    EPA has determined that this rule contains federal mandates that 
may result in expenditures of more than $100 million to the private 
sector in any single year. EPA believes that the proposal represents 
the least costly, most cost-effective approach to achieve the air 
quality goals of the rule. The costs and benefits associated with the 
proposal are discussed in Section IX and in the Draft Regulatory 
Support Document, as required by the UMRA.
2. Consultation and Coordination With Indian Tribal Governments 
(Executive Order 13084)
    On January 1, 2001, Executive Order 13084 was superseded by 
Executive Order 13175. However, the proposed rule was developed during 
the period when Executive Order 13084 was still in force, and so tribal 
considerations were addressed under Executive Order 13084. Development 
of the final rule will address tribal considerations under Executive 
Order 13175.
    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the Office of Management and Budget, in a 
separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.''
    This proposal does not significantly or uniquely affect the 
communities of Indian Tribal governments. The proposed emission 
standards and other related requirements for private businesses in this 
proposal would have national applicability, and thus would not uniquely 
affect the communities of Indian Tribal Governments. Further, no 
circumstances specific to such communities exist that would cause an 
impact on these communities beyond those discussed in the other 
sections of this proposal. Thus, EPA's conclusions regarding the 
impacts from the implementation of this proposed rule discussed in the 
other sections are equally applicable to the communities of Indian 
Tribal governments. Accordingly, the requirements of Section 3(b) of 
Executive Order 13084 do not apply to this rule.

E. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, Section 12(d) (15 U.S.C. 
272 note) directs EPA to use voluntary consensus standards in its 
regulatory activities unless doing so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures, and business practices) that are developed or 
adopted by voluntary consensus standards bodies. NTTAA directs EPA to 
provide Congress, through OMB, explanations when the Agency decides not 
to use available and applicable voluntary consensus standards.
    This proposed rule involves technical standards. The following 
paragraphs describe how we specify testing procedures for engines 
subject to this proposal.
    The International Organization for Standardization (ISO) has a 
voluntary consensus standard that can be used to test Large SI engines. 
However, the current version of that standard (ISO 8178) is applicable 
only for steady-state testing, not for transient testing. As described 
in the Draft Regulatory Support Document, transient testing is an 
important part of the proposed emission-control program for these 
engines. We are therefore not proposing to adopt the ISO procedures in 
this rulemaking.
    Underwriters Laboratories (UL) has adopted voluntary consensus 
standards for forklifts that are relevant to the proposed requirements 
for Large SI engines. UL sets a maximum temperature specification for 
gasoline and, for forklifts used in certain applications, defines 
requirements to avoid venting from gasoline fuel tanks. We are 
proposing a different temperature limit, because the maximum 
temperature specified by UL does not prevent fuel boiling. We are 
proposing separate measures to address venting of gasoline vapors, 
because of UL's provisions to allow venting with an orifice up to 1.78 
mm (0.070 inches). We believe forklifts with such a vent would have 
unnecessarily high evaporative emissions. If the UL standard is revised 
to address these technical concerns, the UL standards would appropriate 
to reference in our regulations. An additional concern relates to the 
fact that the UL requirements apply only to forklifts (and not all 
forklifts in the case of the restriction on vapor venting). EPA

[[Page 51180]]

regulations would therefore need to, at a minimum, extend any published 
UL standards to other engines and equipment to which the UL standards 
would otherwise not apply.
    We are proposing to test off-highway motorcycles and all-terrain 
vehicles with the Federal Test Procedure, a chassis-based transient 
test. There is no voluntary consensus standard that would adequately 
address engine or vehicle operation for suitable emission measurement. 
Furthermore, we are interested in pursuing an engine-based test 
procedure for all-terrain vehicles. We would need to develop a new duty 
cycle for this, because there is no acceptable engine duty cycle today 
that would adequately represent the way these engines operate. For 
snowmobiles, we are proposing test procedures based on work that has 
been published, but not yet adopted as a voluntary consensus standard.
    For recreational marine diesel engines, we are proposing the same 
test procedures that we have adopted for commercial marine diesel 
engines (with a new duty cycle appropriate for recreational 
applications). We are again proposing these procedures in place of the 
ISO 8178 standard that would apply to these engines. We believe that 
ISO 8178 relies too heavily on reference testing conditions. Because 
our test procedures need to represent in-use operation typical of 
operation in the field, they must be based on a range of ambient 
conditions. We determined that the ISO procedures are not broadly 
usable in their current form, and therefore should not be adopted by 
reference. We remain hopeful that future ISO test procedures will be 
developed that are usable and accurate for the broad range of testing 
needed, and that such procedures could then be adopted. We expect that 
any such development of revised test procedures will be done in 
accordance with ISO procedures and in a balanced and transparent manner 
that includes the involvement of all interested parties, including 
industry, U.S. EPA, foreign government organizations, state 
governments, and environmental groups. In so doing, we believe that the 
resulting procedures would be ``global'' test procedures that can 
facilitate the free flow of international commerce for these products.

F. Protection of Children (Executive Order 13045)

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that (1) is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, Section 5-501 of the Order directs the Agency to 
evaluate the environmental health or safety effects of the planned rule 
on children, and explain why the planned regulation is preferable to 
other potentially effective and reasonably feasible alternatives 
considered by the Agency.
    This proposed rule is not subject to the Executive Order because it 
does not involve decisions on environmental health or safety risks that 
may disproportionately affect children.
    The effects of ozone and PM on children's health were addressed in 
detail in EPA's rulemaking to establish the NAAQS for these pollutants, 
and EPA is not revisiting those issues here. EPA believes, however, 
that the emission reductions from the strategies proposed in this 
rulemaking will further reduce air toxics and the related adverse 
impacts on children's health.

G. Federalism (Executive Order 13132)

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    Under Section 6 of Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or EPA 
consults with State and local officials early in the process of 
developing the proposed regulation. EPA also may not issue a regulation 
that has federalism implications and that preempts State law, unless 
the Agency consults with State and local officials early in the process 
of developing the proposed regulation.
    Section 4 of the Executive Order contains additional requirements 
for rules that preempt State or local law, even if those rules do not 
have federalism implications (i.e., the rules will not have substantial 
direct effects on the States, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government). Those 
requirements include providing all affected State and local officials 
notice and an opportunity for appropriate participation in the 
development of the regulation. If the preemption is not based on 
express or implied statutory authority, EPA also must consult, to the 
extent practicable, with appropriate State and local officials 
regarding the conflict between State law and Federally protected 
interests within the agency's area of regulatory responsibility.
    This proposed rule does not have federalism implications. It will 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132.
    Although Section 6 of Executive Order 13132 does not apply to this 
rule, EPA did consult with representatives of various State and local 
governments in developing this rule. EPA has also consulted 
representatives from STAPPA/ALAPCO, which represents state and local 
air pollution officials.
    In the spirit of Executive Order 13132, and consistent with EPA 
policy to promote communications between EPA and State and local 
governments, EPA specifically solicits comment on this proposed rule 
from State and local officials.

H. Energy Effects (Executive Order 13211)

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 28355 
(May 22, 2001)) because it is not likely to have a significant adverse 
effect on the supply, distribution or use of energy. The proposed 
standards have for their aim the reduction of emission from certain 
nonroad engines, and have no effect on fuel formulation, distribution, 
or use. Generally, the proposed program leads to reduced fuel usage due 
to the improvements in engine control technologies.

I. Plain Language

    This document follows the guidelines of the June 1, 1998 Executive 
Memorandum on Plain Language in Government Writing. To read the text of

[[Page 51181]]

the regulations, it is also important to understand the organization of 
the Code of Federal Regulations (CFR). The CFR uses the following 
organizational names and conventions.
Title 40--Protection of the Environment
Chapter I--Environmental Protection Agency
    Subchapter C--Air Programs. This contains parts 50 to 99, where the 
Office of Air and Radiation has usually placed emission standards for 
motor vehicle and nonroad engines.
    Subchapter U--Air Programs Supplement. This contains parts 1000 to 
1299, where we intend to place regulations for air programs in future 
rulemakings.
    Part 1048--Control of Emissions from New, Large, Nonrecreational, 
Nonroad Spark-ignition Engines. Most of the provisions in this part 
apply only to engine manufacturers.
    Part 1051--Control of Emissions from Recreational Engines and 
Vehicles.
    Part 1065--General Test Procedures for Engine Testing. Provisions 
of this part apply to anyone who tests engines to show that they meet 
emission standards.
    Part 1068--General Compliance Provisions for Engine Programs. 
Provisions of this part apply to everyone.
    Each part in the CFR has several subparts, sections, and 
paragraphs. The following illustration shows how these fit together.

Part 1048
Subpart A
Section 1048.001
    (a)
    (b)
    (1)
    (2)

    (i)
    (ii)
    (A)
    (B)

    A cross reference to Sec. 1048.001(b) in this illustration would 
refer to the parent paragraph (b) and all its subordinate paragraphs. A 
reference to ``Sec. 1048.001(b) introductory text'' would refer only to 
the single, parent paragraph (b).

List of Subjects

40 CFR Part 89

    Environmental protection, Administrative practice and procedure, 
Confidential business information, Imports, Labeling, Motor vehicle 
pollution, Reporting and recordkeeping requirements, Research, Vessels, 
Warranties.

40 CFR Part 90

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Imports, 
Labeling, Reporting and recordkeeping requirements, Research, 
Warranties.

40 CFR Parts 91 and 1051

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Imports, 
Labeling, Penalties, Reporting and recordkeeping requirements, 
Warranties.

40 CFR Parts 94

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Imports, 
Penalties, Reporting and recordkeeping requirements, Vessels, 
Warranties.

40 CFR Part 1048

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Imports, 
Labeling, Penalties, Reporting and recordkeeping requirements, 
Research, Warranties.

40 CFR Part 1065

    Environmental protection, Administrative practice and procedure, 
Reporting and recordkeeping requirements, Research.

40 CFR Part 1068

    Environmental protection, Administrative practice and procedure, 
Confidential business information, Imports, Motor vehicle pollution, 
Penalties, Reporting and recordkeeping requirements, Warranties.

    Dated: September 14, 2001.
Christine Todd Whitman,
Administrator.
    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is proposed to be amended as set forth 
below.

PART 89--CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD 
COMPRESSION-IGNITION ENGINES

    1. The authority for part 89 continues to read as follows:

    Authority: 42 U.S.C. 7521, 7522, 7523, 7524, 7525, 7541, 7542, 
7543, 7545, 7547, 7549, 7550, and 7601(a).

Subpart A--[Amended]

    2. Section 89.2 is amended by adding definitions for ``Aircraft'' 
and ``Spark-ignition'' in alphabetic order and revising the definition 
of ``Compression-ignition'' to read as follows:


Sec. 89.2  Definitions.

* * * * *
    Aircraft means any vehicle capable of sustained air travel above 
treetop heights.
* * * * *
    Compression-ignition means relating to a type of reciprocating, 
internal-combustion engine that is not a spark-ignition engine.
* * * * *
    Spark-ignition means relating to a type of engine with a spark plug 
(or other sparking device) and with operating characteristics 
significantly similar to the theoretical Otto combustion cycle. Spark-
ignition engines usually use a throttle to regulate intake air flow to 
control power during normal operation.
* * * * *

PART 90--CONTROL OF EMISSIONS FROM NONROAD SPARK-IGNITION ENGINES 
AT OR BELOW 19 KILOWATTS

    3. The heading to part 90 is revised to read as set forth above.
    4. The authority for part 90 continues to read as follows:

    Authority: 42 U.S.C. 7521, 7522, 7523, 7524, 7525, 7541, 7542, 
7543, 7547, 7549, 7550, and 7601(a).

Subpart A--[Amended]

    5. Section 90.1 is revised to read as follows:


Sec. 90.1  Applicability.

    (a) This part applies to new nonroad spark-ignition engines and 
vehicles with gross power output at or below 19 kilowatts (kW) used for 
any purpose, unless we exclude them under paragraph (c) of this 
section.
    (b) This part also applies to engines with a gross power output 
above 19 kW if the manufacturer uses the provisions of 40 CFR 1048.615 
or 1048.145 to exempt them from the requirements of 40 CFR part 1048. 
Compliance with the provisions of this part is a required condition of 
that exemption.
    (c) The following nonroad engines and vehicles are not subject to 
the provisions of this part:
    (1) Engines used in snowmobiles, all-terrain vehicles, or off-
highway motorcycles and regulated in 40 CFR part 1051. This part 
nevertheless applies to engines used in all-terrain vehicles or off-
highway motorcycles if the manufacturer uses the provisions of 40 CFR 
1051.615 to exempt them from the requirements of 40 CFR part 1051. 
Compliance with the provisions of this part is a required condition of 
that exemption.

[[Page 51182]]

    (2) Engines used in highway motorcycles. See 40 CFR part 86, 
subpart E.
    (3) Propulsion marine engines. See 40 CFR parts 91 and 1045. This 
part applies with respect to auxiliary marine engines.
    (4) Engines used in aircraft. See 40 CFR part 87.
    (5) Engines certified to meet the requirements of 40 CFR part 1048.
    (6) Hobby engines.
    (7) Engines that are used exclusively in emergency and rescue 
equipment where no certified engines are available to power the 
equipment safely and practically, but not including generators, 
alternators, compressors or pumps used to provide remote power to a 
rescue tool. The equipment manufacturer bears the responsibility to 
ascertain on an annual basis and maintain documentation available to 
the Administrator that no appropriate certified engine is available 
from any source.
    (d) Engines subject to the provisions of this subpart are also 
subject to the provisions found in subparts B through N of this part, 
except that subparts C, H, M and N of this part apply only to Phase 2 
engines as defined in this subpart.
    (e) Certain text in this part is identified as pertaining to Phase 
1 or Phase 2 engines. Such text pertains only to engines of the 
specified Phase. If no indication of Phase is given, the text pertains 
to all engines, regardless of Phase.
    6. Section 90.2 is amended by adding a new paragraph (c) to read as 
follows:


Sec. 90.2  Effective dates.

* * * * *
    (c) Notwithstanding paragraphs (a) and (b) of this section, engines 
used in recreational vehicles with engine rated speed greater than or 
equal to 5,000 rpm and with no installed speed governor are not subject 
to the provisions of this part through the 2005 model year. Starting 
with the 2006 model year, all the requirements of this part apply to 
engines used in these vehicles if they are not included in the scope of 
40 CFR part 1051.
    7. Section 90.3 is amended by adding definitions for ``Aircraft'', 
``Hobby engines'', ``Marine engine'', ``Marine vessel'', 
``Recreational'', and ``United States'' in alphabetical order, to read 
as follows:


Sec. 90.3  Definitions.

* * * * *
    Aircraft means any vehicle capable of sustained air travel above 
treetop heights.
* * * * *
    Hobby engines means engines used in reduced-scale models of 
vehicles that are not capable of transporting a person (for example, 
model airplanes).
    Marine engine means an engine that someone installs or intends to 
install on a marine vessel.
    Marine vessel means a vehicle that is capable of operation in water 
but is not capable of operation out of water. Amphibious vehicles are 
not marine vessels.
* * * * *
    Recreational means, for purposes of this part, relating to a 
vehicle intended by the vehicle manufacturer to be operated primarily 
for pleasure. Note that snowmobiles, all-terrain vehicles, and off-
highway motorcycles are recreational vehicles that we regulate under 40 
CFR part 1051.
* * * * *
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
* * * * *

Subpart B--[Amended]

    8. Section 90.103 is amended by redesignating paragraph (a)(2)(v) 
as paragraph (a)(2)(vi) and adding a new paragraph (a)(2)(v) to read as 
follows:


Sec. 90.103  Exhaust emission standards.

    (a) * * *
    (2) * * *
    (v) The engine must be used in a recreational application, with a 
combined total vehicle dry weight under 20 kilograms;
* * * * *

PART 91--CONTROL OF EMISSIONS FROM MARINE SPARK-IGNITION ENGINES

    9. The authority for part 91 continues to read as follows:

    Authority: 42 U.S.C. 7521, 7522, 7523, 7524, 7525, 7541, 7542, 
7543, 7547, 7549, 7550, and 7601(a).

Subpart A--[Amended]

    10. Section 91.3 is amended by adding the definition for United 
States in alphabetical order to read as follows:


Sec. 91.3  Definitions.

* * * * *
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
* * * * *

Subpart E--[Amended]

    11. Section 91.419 is amended in paragraph (b) by revising the 
equations for MHCexh and Mexh to read as follows:


Sec. 91.419  Raw emission sampling calculations.

* * * * *
    (b) * * *
    MHCexh=12.01+1.008 x 
* * * * *
[GRAPHIC] [TIFF OMITTED] TP05OC01.001


[[Page 51183]]


* * * * *

Subpart G--[Amended]

    12. Appendix A to Subpart G of part 91 is amended by revising Table 
1 to read as follows:

Appendix A to Subpart G of Part 91--Sampling Plans for Selective 
Enforcement Auditing of Marine Engines

                   Table 1.--Sampling Plan Code Letter
------------------------------------------------------------------------
          Annual engine family sales                  Code letter
------------------------------------------------------------------------
20-50........................................  AA1 1
------------------------------------------------------------------------
20-99........................................  A 1
------------------------------------------------------------------------
100-299......................................  B
------------------------------------------------------------------------
300-499......................................  C
------------------------------------------------------------------------
500 or greater...............................  D
------------------------------------------------------------------------
\1\ A manufacturer may optionally use either the sampling plan for code
  letter ``AA'' or sampling plan for code letter ``A'' for Selective
  Enforcement Audits of engine families with annual sales between 20 and
  50 engines. Additional, the manufacturers may switch between these
  plans during the audit.

* * * * *

Subpart I--[Amended]

    13. Section 91.803 is amended by revising paragraph (a) to read as 
follows:


Sec. 91.803  Manufacturer in-use testing program.

    (a) EPA shall annually identify engine families and those 
configurations within families which the manufacturers must then 
subject to in-use testing. For each model year, EPA may identify the 
following number of engine families for testing, based on the 
manufacturer's total number of engine families to which this subpart is 
applicable produced in that model year:
    (1) For manufactures with three or fewer engine families, EPA may 
identify a single engine family.
    (2) For manufacturers with four or more engine families, EPA may 
identify a number of engine families that is no greater than twenty-
five percent of the manufacturer's total number of engine families.
* * * * *

PART 94--CONTROL OF EMISSIONS FROM MARINE COMPRESSION-IGNITION 
ENGINES

    14. The heading to part 94 is revised to read as set forth above.
    15. The authority citation for part 94 continues to read as 
follows:

    Authority: 42 U.S.C. 7522, 7523, 7524, 7525, 7541, 7542, 7543, 
7545, 7547, 7549, 7550 and 7601(a).

Subpart A--[Amended]

    16. Section 94.1 is revised to read as follows:


Sec. 94.1  Applicability.

    (a) Except as noted in paragraphs (b) and (c) of this section, the 
provisions of this part apply to manufacturers (including post-
manufacture marinizers and dressers), rebuilders, owners and operators 
of:
    (1) Marine engines that are compression-ignition engines 
manufactured (or that otherwise become new) on or after January 1, 
2004;
    (2) Marine vessels manufactured (or that otherwise become new) on 
or after January 1, 2004 and which include a compression-ignition 
marine engine.
    (b) Notwithstanding the provision of paragraph (c) of this section, 
the requirements and prohibitions of this part do not apply to three 
types of marine engines:
    (1) Category 3 marine engines;
    (2) Marine engines with rated power below 37 kW; or
    (3) Marine engines on foreign vessels.
    (c) The provisions of Subpart L of this part apply to everyone with 
respect to the engines identified in paragraph (a) of this section.
    17. Section 94.2 is amended by revising paragraph (b) introductory 
text, removing the definition for ``Commercial marine engine'', 
revising definitions for ``Compression-ignition'', ``Designated 
officer'', ``Passenger'', ``Recreational marine engine'', 
``Recreational vessel'', and ``United States'', and adding new 
definitions for ``Commercial'', ``Small-volume boat builder'', ``Small-
volume manufacturer'', and ``Spark-ignition'' in alphabetical order to 
read as follows:


Sec. 94.2  Definitions.

* * * * *
    (b) As used in this part, all terms not defined in this section 
shall have the meaning given them in the Act:
* * * * *
    Commercial means relating to an engine or vessel that is not a 
recreational marine engine or a recreational vessel.
* * * * *
    Compression-ignition means relating to an engine that is not a 
spark-ignition engine.
* * * * *
    Designated Officer means the Manager, Engine Programs Group (6403-
J), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave., 
Washington, DC 20460.
* * * * *
    Passenger has the meaning given by 46 U.S.C. 2101 (21) and (21a). 
This generally means that a passenger is a person that pays to be on 
the vessel.
* * * * *
    Recreational marine engine means a Category 1 propulsion marine 
engine that is intended by the manufacturer to be installed on a 
recreational vessel, and which is permanently labeled as follows: 
``THIS ENGINE IS CATEGORIZED AS A RECREATIONAL MARINE ENGINE UNDER 40 
CFR PART 94. INSTALLATION OF THIS ENGINE IN ANY NONRECREATIONAL VESSEL 
IS A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.''.
    Recreational vessel has the meaning given in 46 U.S.C 2101 (25), 
but excludes ``passenger vessels'' and ``small passenger vessels'' as 
defined by 46 U.S.C. 2101 (22) and (35) and excludes vessels used 
solely for competition. In general, for this part, ``recreational 
vessel'' means a vessel that is intended by the vessel manufacturer to 
be operated primarily for pleasure or leased, rented or chartered to 
another for the latter's pleasure, excluding the following vessels:
    (1) Vessels of less than 100 gross tons that carry more than 6 
passengers (as defined in this section).
    (2) Vessels of 100 gross tons or more that carry one or more 
passengers (as defined in this section).
    (3) Vessels used solely for competition.
* * * * *
    Small-volume boat builder means a boat manufacturer with fewer than 
500 employees and with annual U.S.-directed production of fewer than 
100 boats. For manufacturers owned by a parent company, these limits 
apply to the combined production and number of employees of the parent 
company and all its subsidiaries.
    Small-volume manufacturer means a manufacturer with annual U.S.-
directed production of fewer than 1,000 internal combustion engines 
(marine and nonmarine). For manufacturers owned by a parent company, 
the limit applies to the production of the parent company and all its 
subsidiaries.
    Spark-ignition means relating to a type of engine with a spark plug 
(or other sparking device) and with operating characteristics 
significantly similar to the theoretical Otto combustion cycle. Spark-
ignition engines usually use a throttle to regulate

[[Page 51184]]

intake air flow to control power during normal operation.
* * * * *
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
* * * * *
    18. Section 94.7 is amended by revising paragraph (e) to read as 
follows:


Sec. 94.7  General standards and requirements.

* * * * *
    (e) Electronically controlled engines subject to the emission 
standards of this part shall broadcast on engine's controller area 
networks engine torque (as percent of maximum at that speed) and engine 
speed.
    19. Section 94.8 is amended by revising paragraphs (a), (e), (f) 
introductory text, and (f)(1) to read as follows:


Sec. 94.8  Exhaust emission standards.

    (a) Exhaust emissions from marine compression-ignition engines 
shall not exceed the applicable exhaust emission standards contained in 
Table A-1 as follows:

                         Table A-1.--Primary Tier 2 Exhaust Emission Standards (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
 Engine size liters/cylinder, rated                              Model     THC+ NOX g/
                power                        Category           year\a\       kW-hr      CO g/kW-hr   PM g/kW-hr
----------------------------------------------------------------------------------------------------------------
disp.  0.9 and power  37   Category 1 Commercial.         2005          7.5          5.0         0.40
 kW.
                                      Category Recreational          2007          7.5          5.0         0.40
                                       1.
                                     ---------------------------------------------------------------------------
0.9  disp.  1.2 all power  Category 1 Commercial.         2004          7.2          5.0         0.30
 levels.
                                      Category 1                     2006          7.2          5.0         0.30
                                       Recreational.
                                     ---------------------------------------------------------------------------
1.2  disp.  2.5 all power  Category 1 Commercial.         2004          7.2          5.0         0.20
 levels.
                                      Category 1                     2006          7.2          5.0         0.20
                                       Recreational.
                                     ---------------------------------------------------------------------------
2.5  disp.  5.0 all power  Category 1 Commercial.         2007          7.2          5.0         0.20
 levels.
                                      Category 1                     2009          7.2          5.0         0.20
                                       Recreational.
                                     ---------------------------------------------------------------------------
5.0  disp.  15.0 all       Category 2............         2007          7.8          5.0         0.27
 power levels.
                                     ---------------------------------------------------------------------------
15.0  disp.  20.0 power    Category 2............         2007          8.7          5.0         0.50
 3300 kW.
                                     ---------------------------------------------------------------------------
15.0  disp.  20.0 power    Category 2............         2007          9.8          5.0         0.50
  3300 kW.
                                     ---------------------------------------------------------------------------
20.0  disp.  25.0 all      Category 2............         2009          9.8          5.0         0.50
 power levels.
                                     ---------------------------------------------------------------------------
25.0  disp.  30.0........  Category 2............         2007         11.0          5.0        0.50
----------------------------------------------------------------------------------------------------------------
a The model years listed indicate the model years for which the specified standards start.

* * * * *
    (e) Exhaust emissions from propulsion engines subject to the 
standards (or FELs) in paragraph (a), (c), or (f) of this section shall 
not exceed:
    (1) Commercial marine engines. (i) 1.20 times the applicable 
standards (or FELs) when tested in accordance with the supplemental 
test procedures specified in Sec. 94.106 at loads greater than or equal 
to 45 percent of the maximum power at rated speed or 1.50 times the 
applicable standards (or FELs) at loads less than 45 percent of the 
maximum power at rated speed.
    (ii) As an option, the manufacturer may choose to comply with 
limits of 1.25 times the applicable standards (or FELs) when tested 
over the whole power range in accordance with the supplemental test 
procedures specified in Sec. 94.106, instead of the limits in paragraph 
(e)(1)(i) of this section.
    (2) Recreational marine engines. (i) 1.20 times the applicable 
standards (or FELs) when tested in accordance with the supplemental 
test procedures specified in Sec. 94.106 at loads greater than or equal 
to 45 percent of the maximum power at rated speed and speeds less than 
95 percent of maximum test speed, or 1.50 times the applicable 
standards (or FELs) at loads less than 45 percent of the maximum power 
at rated speed, or 1.50 times the applicable standards (or FELs) at any 
loads for speeds greater than or equal to 95 percent of the maximum 
test speed.
    (ii) As an option, the manufacturer may choose to comply with 
limits of 1.25 times the applicable standards (or FELs) when tested 
over the whole power range in accordance with the supplemental test 
procedures specified in Sec. 94.106, instead of the limits in paragraph 
(e)(2)(i) of this section.
    (f) The following defines the requirements for low emitting Blue 
Sky Series engines:
    (1) Voluntary standards. Engines may be designated ``Blue Sky 
Series'' engines through the 2010 model year by meeting the voluntary 
standards listed in Table A-2, which apply to all certification and in 
use testing, as follows:

           Table A-2.--Voluntary Emission Standards (g/kW-hr)
------------------------------------------------------------------------
                                                          THC+
                Rated brake power (kW)                    NOX       PM
------------------------------------------------------------------------
Power  37 kW, and displ.0.9................      4.0     0.24
------------------------------------------------------------------------
0.9displ.1.2...............................      4.0     0.18
------------------------------------------------------------------------
1.2displ.2.5...............................      4.0     0.12
------------------------------------------------------------------------
2.5displ.5.................................      5.0     0.12
------------------------------------------------------------------------
5displ.15..................................      5.0     0.16
------------------------------------------------------------------------
15  disp.  20, and power  3300 kW..........      5.2     0.30
------------------------------------------------------------------------
15  disp.  20, and power  3300        5.9     0.30
 kW...................................................
------------------------------------------------------------------------
20  disp.  25..............................      5.9     0.30
------------------------------------------------------------------------
25  disp.  30..............................      6.6     0.30
------------------------------------------------------------------------

* * * * *
    20. Section 94.9 is amended by revising paragraphs (a) introductory 
text and (a)(1) to read as follows:

[[Page 51185]]

Sec. 94.9  Compliance with emission standards.

    (a) The general standards and requirements in Sec. 94.7 and the 
emission standards in Sec. 94.8 apply to each new engine throughout its 
useful life period. The useful life is specified both in years and in 
hours of operation, and ends when either of the values (hours of 
operation or years) is exceeded.
    (1) The minimum useful life is:
    (i) 10 years or 1,000 hours of operation for recreational Category 
1 engines;
    (ii) 10 years or 10,000 hours of operation for commercial Category 
1 engines;
    (iii) 10 years or 20,000 hours of operation for Category 2 engines.
* * * * *
    21. Section 94.12 is amended by revising the introductory text and 
paragraphs (a) and (b)(1) and adding a new paragraph (f) to read as 
follows:


Sec. 94.12  Interim provisions.

    This section contains provisions that apply for a limited number of 
calendar years or model years. These provisions apply instead of the 
other provisions of this part.
    (a) Compliance date of standards. Certain companies may delay 
compliance with emission standards. Companies wishing to take advantage 
of this provision must inform the Designated Officer of their intent to 
do so in writing before the date that compliance with the standards 
would otherwise be mandatory.
    (1) Post-manufacture marinizers may elect to delay the model year 
of the Tier 2 standards for commercial engines as specified in 
Sec. 94.8 by one year for each engine family.
    (2) Small-volume manufacturers may elect to delay the model year of 
the Tier 2 standards for recreational engines as specified in Sec. 94.8 
by five years for each engine family.
    (b) Early banking of emission credits. (1) A manufacturer may 
optionally certify engines manufactured before the date the Tier 2 
standards take effect to earn emission credits under the averaging, 
banking, and trading program. Such optionally certified engines are 
subject to all provisions relating to mandatory certification and 
enforcement described in this part. Manufacturers may begin earning 
credits for recreational engines on [date 30 days after publication of 
the final rule in the Federal Register].
* * * * *
    (f) Flexibility for small-volume boat builders. Notwithstanding the 
other provisions of this part, manufacturers may sell uncertifed 
recreational engines to small-volume boat builders during the first 
five years for which the emission standards in Sec. 94.8 apply, subject 
to the following provisions:
    (1) The U.S.-directed production volume of boats from any small-
volume boat builder using uncertified engines during the total five-
year period may not exceed 80 percent of the manufacturer's average 
annual production for the three years prior to the general 
applicability of the recreational engine standards in Sec. 94.8, except 
as allowed in paragraph (f)(2) of this section.
    (2) Small-volume boat builders may exceed the production limits in 
paragraph (f)(1) of this section, provided it does not exceed 20 boats 
during the five-year period or 10 boats in any single calendar year. 
This does not apply to boats powered by engines with displacement 
greater than 2.5 liters per cylinder.
    (3) Small-volume boat builders must keep records of all the boats 
and engines produced under this paragraph (f), including boat and 
engine model numbers, serial numbers, and dates of manufacture. Records 
must also include information verifying compliance with the limits in 
paragraph (f)(1) or (f)(2) of this section. Keep these records until at 
least two full years after you no longer use the provisions in this 
paragraph (f).

Subpart B--[Amended]

    22. Section 94.104 is amended by redesignating paragraph (c) as 
paragraph (d) and adding a new paragraph (c) to read as follows:


Sec. 94.104  Test procedures for Category 2 marine engines.

* * * * *
    (c) Conduct testing at ambient temperatures from 13 deg. C to 
30 deg. C.
    23. Section 94.105 is amended by revising paragraph (b) text 
preceding Table B-1, revising ``#'' to read ``'' in 
footnotes 1 and 2 in the tables in paragraphs (b), (c)(1), (c)(2), and 
(d)(1), and adding a new paragraph (e) to read as follows:


Sec. 94.105  Duty cycles.

* * * * *
    (b) General cycle. Propulsion engines that are used with (or 
intended to be used with) fixed-pitch propellers, and any other engines 
for which the other duty cycles of this section do not apply, shall be 
tested using the duty cycle described in the following Table B-1:
* * * * *
    (e) Recreational. For the purpose of determining compliance with 
the emission standards of Sec. 94.8, recreational engines shall be 
tested using the duty cycle described in Table B-5, which follows:

                                   Table B-5.--Recreational Marine Duty Cycle
----------------------------------------------------------------------------------------------------------------
                                                                            Percent of    Minimum
                                             Engine speed \1\ (percent of    maximum      time in     Weighting
                 Mode No.                        maximum test speed)        test power      mode       factors
                                                                               \2\       (minutes)
----------------------------------------------------------------------------------------------------------------
1.........................................  100..........................          100          5.0         0.08
----------------------------------------------------------------------------------------------------------------
2.........................................  91...........................           75          5.0         0.13
----------------------------------------------------------------------------------------------------------------
3.........................................  80...........................           50          5.0         0.17
----------------------------------------------------------------------------------------------------------------
4.........................................  63...........................           25          5.0         0.32
----------------------------------------------------------------------------------------------------------------
5.........................................  idle.........................            0          5.0        0.30
----------------------------------------------------------------------------------------------------------------
\1\ Engine speed:  2 percent of point.
\2\ Power: 2 percent of engine maximum value.

    24. Section 94.106 is amended by revising paragraphs (b) 
introductory text, (b)(1) introductory text, (b)(2) introductory text, 
and (b)(3) introductory text and adding a new paragraph (b)(5) to read 
as follows:

[[Page 51186]]

Sec. 94.106  Supplemental test procedures.

* * * * *
    (b) The specified Not to Exceed Zones for marine engines are 
defined as follows. These Not to Exceed Zones apply, unless a modified 
zone is established under paragraph (c) of this section.
    (1) For commercial Category 1 engines certified using the duty 
cycle specified in Sec. 94.105(b), the Not to Exceed zones are defined 
as follows:
* * * * *
    (2) For Category 2 engines certified using the duty cycle specified 
in Sec. 94.105(b), the Not to Exceed zones are defined as follows:
* * * * *
    (3) For engines certified using the duty cycle specified in 
Sec. 94.105(c)(2), the Not to Exceed zones are defined as follows:
* * * * *
    (5) For recreational marine engines certified using the duty cycle 
specified in Sec. 94.105(e), the Not to Exceed zones are defined as 
follows:
    (i) The Not to Exceed zone is the region between the curves power = 
1.15  x  SPD\2\ and power = 0.85  x  SPD\4\, excluding all operation 
below 25% of maximum power at rated speed and excluding all operation 
below 63% of maximum test speed.
    (ii) This zone is divided into three subzones, one below 45% of 
maximum power at maximum test speed; one above 95% of maximum test 
speed; and a third area including all of the remaining area of the NTE 
zone.
    (iii) SPD in paragraph (b)(3)(i) of this section refers to percent 
of maximum test speed.
    (iv) See Figure B-4 for an illustration of this Not to Exceed zone 
as follows:
BILLING CODE 6560-50-P

[[Page 51187]]

[GRAPHIC] [TIFF OMITTED] TP05OC01.002

BILLING CODE 6560-50-C
    25. Section 94.108 is amended in paragraph (a)(1) by revising 
footnote 1 in Table B-5 to read as follows:


Sec. 94.108  Test fuels.

    (a) * * * (1) * * *

              Table B-5.--Federal Test Fuel Specifications
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
 
                  *        *        *        *        *
 
------------------------------------------------------------------------
\1\ All ASTM procedures in this table have been incorporated by
  reference. See Sec.  94.5.

* * * * *

Subpart C--[Amended]

    26. Section 94.203 is amended by revising paragraphs (d)(14) and 
(d)(16) to read as follows:


Sec. 94.203  Application for certification.

* * * * *
    (d) * * *
    (14) A statement that all the engines included in the engine family 
comply with the Not To Exceed standards

[[Page 51188]]

specified in Sec. 94.8(e) when operated under all conditions which may 
reasonably be expected to be encountered in normal operation and use; 
the manufacturer also must provide a detailed description of all 
testing, engineering analyses, and other information which provides the 
basis for this statement.
* * * * *
    (16) A statement indicating duty-cycle and application of the 
engine (e.g., used to propel planing vessels, use to propel vessels 
with variable-pitch propellers, constant-speed auxiliary, recreational, 
etc.).
* * * * *
    27. Section 94.204 is amended by removing ``and'' at the end of 
paragraph (b)(9), adding ``; and'' at the end of paragraph (b)(10), 
adding a new paragraph (b)(11), and revising paragraph (e) to read as 
follows:


Sec. 94.204  Designation of engine families.

* * * * *
    (b) * * *
    (11) Class (commercial or recreational).
* * * * *
    (e) Upon request by the manufacturer, the Administrator may allow 
engines that would be required to be grouped into separate engine 
families based on the criteria in paragraph (b) or (c) of this section 
to be grouped into a single engine family if the manufacturer 
demonstrates that the engines will have similar emission 
characteristics; however, recreational and commercial engines may not 
be grouped in the same engine family. This request must be accompanied 
by emission information supporting the appropriateness of such combined 
engine families.
    28. Section 94.209 is revised to read as follows:


Sec. 94.209  Special provisions for post-manufacture marinizers and 
small-volume manufacturers.

    (a) Broader engine families. Instead of the requirements of 
Sec. 94.204, an engine family may consist of any engines subject to the 
same emission standards. This does not change any of the requirements 
of this part for showing that an engine family meets emission 
standards. To be eligible to use the provisions of this paragraph (a), 
the manufacturer must demonstrate one of the following:
    (1) It is a post-manufacture marinizer and that the base engines 
used for modification have a valid certificate of conformity issued 
under 40 CFR part 89 or 40 CFR part 92 or the heavy-duty engine 
provisions of 40 CFR part 86.
    (2) It is a small-volume manufacturer.
    (b) Hardship relief. Post-manufacture marinizers, small-volume 
manufacturers, and small-volume boat builders may take any of the 
otherwise prohibited actions identified in Sec. 94.1103(a)(1) if 
approved in advance by the Administrator, subject to the following 
requirements:
    (1) Application for relief must be submitted to the Designated 
Officer in writing prior to the earliest date in which the applying 
manufacturer would be in violation of Sec. 94.1103. The manufacturer 
must submit evidence showing that the requirements for approval have 
been met.
    (2) The conditions causing the impending violation must not be 
substantially the fault of the applying manufacturer.
    (3) The conditions causing the impending violation must jeopardize 
the solvency of the applying manufacturer if relief is not granted.
    (4) The applying manufacturer must demonstrate that no other 
allowances under this part will be available to avoid the impending 
violation.
    (5) Any relief may not exceed one year beyond the date relief is 
granted.
    (6) The Administrator may impose other conditions on the granting 
of relief including provisions to recover the lost environmental 
benefit.
    (c) Extension of deadlines. Small-volume manufacturers may use the 
provisions of 40 CFR 1068.241 to ask for an extension of a deadline to 
meet emission standards. We may require that you use available base 
engines that have been certified to emission standards for land-based 
engines until you are able to produce engines certified to the 
requirements of this part.
    29. Section 94.212 is amended by revising paragraph (b)(10) to read 
as follows:


Sec. 94.212  Labeling.

* * * * *
    (b) Engine labels. * * *
    (10) The application for which the engine family is certified. (For 
example: constant-speed auxiliary, variable-speed propulsion engines 
used with fixed-pitch propellers, recreational, etc.)
* * * * *
    30. Section 94.218 is amended by adding a new paragraph (d)(2)(iv) 
to read as follows:


Sec. 94.218  Deterioration factor determination.

* * * * *
    (d) * * *
    (2) * * *
    (iv) Assigned deterioration factors. Small-volume manufacturers may 
use deterioration factors established by EPA.

Subpart D--[Amended]

    31. Section 94.304 is amended by revising paragraph (k) to read as 
follows:


Sec. 94.304  Compliance requirements.

* * * * *
    (k) The following provisions limit credit exchanges between 
different types of engines:
    (1) Credits generated by Category 1 engine families may be used for 
compliance by Category 1 or Category 2 engine families. Credits 
generated from Category 1 engine families for use by Category 2 engine 
families must be discounted by 25 percent.
    (2) Credits generated by Category 2 engine families may be used for 
compliance only by Category 2 engine families.
    (3) Credits may not be exchanged between recreational and 
commercial engines.
* * * * *

Subpart F--[Amended]

    32. Section 94.501 is amended by revising paragraph (a) to read as 
follows:


Sec. 94.501  Applicability.

    (a) The requirements of this subpart are applicable to 
manufacturers of engines subject to the provisions of Subpart A of this 
part, excluding small-volume manufacturers.
* * * * *
    33. Section 94.503 is amended by adding a new paragraph (d) to read 
as follows:


Sec. 94.503  General requirements.

* * * * *
    (d) If you certify an engine family with carryover emission data, 
as described in Sec. 94.206(c), and these equivalent engine families 
consistently meet the emission standards with production-line testing 
over the preceding two-year period, you may ask for a reduced testing 
rate for further production-line testing for that family. The minimum 
testing rate is one engine per engine family. If we reduce your testing 
rate, we may limit our approval to a single model year.

Subpart J--[Amended]

    34. Section 94.907 is amended by revising paragraphs (d) and (g) to 
read as follows:


Sec. 94.907  Engine dressing exemption.

* * * * *
    (d) New marine engines that meet all the following criteria are 
exempt under this section:
    (1) You must produce it by marinizing an engine covered by a valid 
certificate

[[Page 51189]]

of conformity from one of the following programs:
    (i) Heavy-duty highway engines (40 CFR part 86).
    (ii) Land-based nonroad diesel engines (40 CFR part 89).
    (iii) Locomotive engines (40 CFR part 92).
    (2) The engine must have the label required under 40 CFR part 86, 
89, or 92.
    (3) You must not make any changes to the certified engine that 
could reasonably be expected to increase its emissions. For example, if 
you make any of the following changes to one of these engines, you do 
not qualify for the engine dressing exemption:
    (i) Changing any fuel system parameters from the certified 
configuration.
    (ii) Replacing an original turbocharger, except that small-volume 
manufacturers of recreational engines may replace an original 
turbocharger with one that matches the performance of the original 
turbocharger.
    (iii) Modify or design the marine engine cooling or aftercooling 
system so that temperatures or heat rejection rates are outside the 
original engine manufacturer's specified ranges.
    (4) You must make sure that fewer than 50 percent of the engine 
model's total sales, from all companies, are used in marine 
applications.
* * * * *
    (g) If your engines do not meet the criteria listed in paragraphs 
(d)(2) through (d)(4) of this section, they will be subject to the 
standards and prohibitions of this part. Marinization without a valid 
exemption or certificate of conformity would be a violation of 
Sec. 94.1103(a)(1) and/or the tampering prohibitions of the applicable 
land-based regulations (40 CFR part 86, 89, or 92).
* * * * *

Subpart K--[Amended]

    35. Section 94.1103 is amended by revising paragraph (a)(5) to read 
as follows:


Sec. 94.1103  Prohibited acts.

    (a) * * *
    (5) For a manufacturer of marine vessels to distribute in commerce, 
sell, offer for sale, or deliver for introduction into commerce a new 
vessel containing an engine not covered by a certificate of conformity 
applicable for an engine model year the same as or later than the 
calendar year in which the manufacture of the new vessel is initiated. 
(Note: For the purpose of this paragraph (a)(5), the manufacture of a 
vessel is initiated when the keel is laid, or the vessel is at a 
similar stage of construction.) In general, you may use up your normal 
inventory of engines not certified to new emission standards if they 
were built before the date of the new standards. However, we consider 
stockpiling of these engines to be a violation of paragraph 
(a)(1)(i)(A) of this section.
* * * * *
    37. A new subchapter U is added to read as follows:

SUBCHAPTER U--AIR POLLUTION CONTROLS

PART 1048--CONTROL OF EMISSIONS FROM NEW, LARGE NONROAD SPARK-
IGNITION ENGINES

Subpart A--Determining How To Follow This Part
Sec.
1048.1   Does this part apply to me?
1048.5   May I exclude any engines from this part's requirements?
1048.10   What main steps must I take to comply with this part?
1048.15   Do any other regulation parts affect me?
1048.20   What requirements from this part apply to my excluded 
engines?
Subpart B--Emission Standards and Related Requirements
1048.101  What exhaust emission standards must my engines meet?
1048.105  What steps must I take to address evaporative emissions?
1048.110  How must my engines diagnose malfunctions?
1048.115  What other requirements must my engines meet?
1048.120  What warranty requirements apply to me?
1048.125  What maintenance instructions must I give to buyers?
1048.130  What installation instructions must I give to equipment 
manufacturers?
1048.135  How must I label and identify the engines I produce?
1048.140  How do I certify my engines to more stringent, voluntary 
standards?
1048.145  What provisions apply only for a limited time?
Subpart C--Certifying Engine Families
1048.201  What are the general requirements for submitting a 
certification application?
1048.205  How must I prepare my application?
1048.210  May I get preliminary approval before I complete my 
application?
1048.215  What happens after I complete my application?
1048.220  How do I amend the maintenance instructions in my 
application?
1048.225  How do I amend my application to include new or modified 
engines?
1048.230  How do I select engine families?
1048.235  How does testing fit with my application for a certificate 
of conformity?
1048.240  How do I determine if my engine family complies with 
emission standards?
1048.245  What records must I keep and make available to EPA?
1048.250  When may EPA deny, revoke, or void my certificate of 
conformity?
Subpart D--Testing Production-line Engines
1048.301  When must I test my production-line engines?
1048.305  How must I prepare and test my production-line engines?
1048.310  How must I select engines for production-line testing?
1048.315  How do I know when my engine family does not comply?
1048.320  What happens if one of my production-line engines fails to 
meet emission standards?
1048.325  What happens if an engine family does not comply?
1048.330  May I sell engines from an engine family with a suspended 
certificate of conformity?
1048.335  How do I ask EPA to reinstate my suspended certificate?
1048.340  When may EPA revoke my certificate under this subpart and 
how may I sell these engines again?
1048.345  What production-line testing records must I send to EPA?
1048.350  What records must I keep?
Subpart E--Testing In-Use Engines
1048.401  What testing requirements apply to my engines that have 
gone into service?
1048.405  How does this program work?
1048.410  How must I select, prepare, and test my in-use engines?
1048.415  How can I use in-use emission credits?
1048.420  What happens if my in-use engines do not meet 
requirements?
1048.425  What in-use testing information must I report to EPA?
1048.430  What records must I keep?
Subpart F--Test Procedures
1048.501  What procedures must I use to test my engines?
1048.505  What steady-state duty cycles apply for laboratory 
testing?
1048.510  What transient duty cycles apply for laboratory testing?
1048.515  Field-testing procedures.
Subpart G--Compliance Provisions
1048.601  What compliance provisions apply to these engines?
1048.605  What are the provisions for exempting engines from the 
requirements of this part if they are already certified under the 
motor-vehicle program?
1048.610  What are the provisions for producing nonroad equipment 
with engines already certified under the motor-vehicle program?
1048.615  What are the provisions for exempting engines designed for 
lawn and garden applications?

[[Page 51190]]

Subpart H--Definitions and Other Reference Information
1048.701  What definitions apply to this part?
1048.705  What symbols, acronyms, and abbreviations does this part 
use?
1048.710  What materials does this part reference?
1048.715  How should I request EPA to keep my information 
confidential?
1048.720  How do I request a public hearing?

Appendix I to Part 1048--Transient Duty Cycle for Constant-Speed 
Engines

Appendix II to Part 1048--Transient Duty Cycle for Engines That Are Not 
Constant-Speed Engines

    Authority: 42 U.S.C. 7401-7671(q).

Subpart A--Determining How to Follow This Part


Sec. 1048.1  Does this part apply to me?

    (a) This part applies to you if you manufacture or import new, 
spark-ignition, nonroad engines (defined in Sec. 1048.701) with rated 
power above 19 kW, unless we exclude them under Sec. 1048.5.
    (b) If you manufacture or import engines with rated power at or 
below 19 kW that would otherwise be covered by 40 CFR part 90, you may 
choose to meet the requirements of this part instead. In this case, all 
the provisions of this part apply for those engines.
    (c) Note in subpart G of this part that 40 CFR part 1068 applies to 
everyone, including anyone who manufactures, installs, owns, operates, 
or rebuilds any of the engines this part covers or equipment containing 
these engines.
    (d) You need not follow this part for engines you produce before 
the 2004 model year, unless you certify voluntarily. See Sec. 1048.100, 
Sec. 1048.145, and the definition of model year in Sec. 1048.701 for 
more information about the timing of new requirements.
    (e) See Secs. 1048.701 and 1048.705 for definitions and acronyms 
that apply to this part.


Sec. 1048.5  May I exclude any engines from this part's requirements?

    (a) You may exclude the following nonroad engines:
    (1) Engines used in snowmobiles, all-terrain vehicles, or off-
highway motorcycles and regulated in 40 CFR part 1051.
    (2) Propulsion marine engines. See 40 CFR part 91. This part 
applies with respect to auxiliary marine engines.
    (b) You may exclude engines used in aircraft. See 40 CFR part 87.
    (c) You may exclude stationary engines, except that you must meet 
the requirements in Sec. 1048.20. In addition, the prohibitions in 40 
CFR 1068.101 restrict the use of stationary engines for non-stationary 
purposes.
    (d) See subpart G of this part and 40 CFR part 1068, subpart C, for 
exemptions of specific engines.
    (e) Send the Designated Officer a written request if you want us to 
determine whether this part covers or excludes certain engines. 
Excluding engines from this part's requirements does not affect other 
requirements that may apply to them.


Sec. 1048.10  What main steps must I take to comply with this part?

    (a) You must have a certificate of conformity from us for each 
engine family before you do any of the following with a new engine 
covered by this part: Sell, offer for sale, introduce into commerce, 
distribute or deliver for introduction into commerce, or import it into 
the United States. ``New'' engines may include some already placed in 
service (see the definition of ``new nonroad engine'' and ``new nonroad 
equipment'' in Sec. 1048.701). You must get a new certificate of 
conformity for each new model year.
    (b) To get a certificate of conformity and comply with its terms, 
you must do five things:
    (1) Meet the emission standards and other requirements in subpart B 
of this part.
    (2) Apply for certification (see subpart C of this part).
    (3) Do routine emission testing on production engines (see subpart 
D of this part).
    (4) Do emission testing on in-use engines, as we direct (see 
subpart E of this part).
    (5) Follow our instructions throughout this part.
    (c) Subpart F of this part and 40 CFR part 1065 describe the 
procedures you must follow to test your engines.
    (d) Subpart G of this part and 40 CFR part 1068 describe 
requirements and prohibitions that apply to engine manufacturers, 
equipment manufacturers, owners, operators, rebuilders, and all others.


Sec. 1048.15  Do any other regulation parts affect me?

    (a) Part 1065 of this chapter describes procedures and equipment 
specifications for testing engines. Subpart F of this part describes 
how to apply the provisions of part 1065 of this chapter to show you 
meet the emission standards in this part.
    (b) Part 1068 of this chapter describes general provisions, 
including these seven areas:
    (1) Prohibited acts and penalties for engine manufacturers, 
equipment manufacturers, and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exemptions for certain engines.
    (4) Importing engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for public hearings.
    (c) Other parts of this chapter affect you if referenced in this 
part.


Sec. 1048.20  What requirements from this part apply to my excluded 
engines?

    (a) Manufacturers of stationary engines that would otherwise need 
to meet the requirements of this part must add a permanent label or tag 
identifying each engine. This applies equally to importers. To meet 
labeling requirements, you must do the following things:
    (1) Attach the label or tag in one piece so no one can remove it 
without destroying or defacing it.
    (2) Make sure it is durable and readable for the engine's entire 
life.
    (3) Secure it to a part of the engine needed for normal operation 
and not normally requiring replacement.
    (4) Write it in block letters in English.
    (5) Instruct equipment manufacturers that they must place a 
duplicate label as described in Sec. 1068.105 of this chapter if they 
obscure the engine's label.
    (b) Engine labels or tags required under this section must have the 
following information:
    (1) Include the heading ``Emission Control Information.''
    (2) Include your full corporate name and trademark.
    (3) State the engine displacement (in liters) and rated power.
    (4) State: ``THIS ENGINE IS EXCLUDED FROM THE REQUIREMENTS OF 40 
CFR PART 1048 AS A ``STATIONARY ENGINE.'' INSTALLING OR USING THIS 
ENGINE IN ANY OTHER APPLICATION MAY BE A VIOLATION OF FEDERAL LAW 
SUBJECT TO CIVIL PENALTY.''.

Subpart B--Emission Standards and Related Requirements


Sec. 1048.101  What exhaust emission standards must my engines meet?

    (a) The exhaust emission standards in Table 1 of Sec. 1048.101 
apply for steady-state measurement of emissions with the duty-cycle 
test procedures in subpart F of this part:

[[Page 51191]]



 Table 1 of Sec.  1048.101.--Steady-State Duty-Cycle Emission Standards
                                (g/kW-hr)
------------------------------------------------------------------------
                               Emission standards    Alternate emission
                             ----------------------       standards
         Model year                                ---------------------
                                HC+NOX       CO       HC+NOX       CO
------------------------------------------------------------------------
2004-2006...................        4.0       50.0  .........  .........
------------------------------------------------------------------------
2007 and later..............        3.4        3.4        1.3       27.0
------------------------------------------------------------------------

    (b) The exhaust emission standards in Table 2 of Sec. 1048.101 
apply for transient measurement of emissions with the duty-cycle test 
procedures in subpart F of this part:

 Table 2 of Sec.  1048.101.--Transient Duty-Cycle Emission Standards (g/
                                 kW-hr)
------------------------------------------------------------------------
                               Emission standards    Alternate emission
                             ----------------------       standards
         Model year                                ---------------------
                                HC+NOX       CO       HC+NOX       CO
------------------------------------------------------------------------
2007 and later..............        3.4        3.4        1.3       27.0
------------------------------------------------------------------------

    (c) The exhaust emission standards in Table 3 of Sec. 1048.101 
apply for emission measurements with the field-test procedures in 
subpart F of this part:

 Table 3 of Sec.  1048.101.--Field-testing Emission Standards (g/kW-hr)
------------------------------------------------------------------------
                               Emission standards    Alternate emission
                             ----------------------       standards
         Model year                                ---------------------
                                HC+NOX       CO       HC+NOX       CO
------------------------------------------------------------------------
2007 and later..............        4.7        5.0        1.8       41.0
------------------------------------------------------------------------

    (d) You may choose to meet the alternate emission standards instead 
of the regular emission standards, as described in paragraphs (a) 
through (c) of this section.
    (e) The standards apply for the model years listed in the tables in 
this section. You may choose to certify earlier model years.
    (f) Apply the exhaust emission standards in this section for 
engines using all fuels. You must meet the numerical emission standards 
for hydrocarbons in this section based on the following types of 
hydrocarbon emissions for engines powered by the following fuels:
    (1) Gasoline- and LPG-fueled engines: THC emissions.
    (2) Natural gas-fueled engines: NMHC emissions (for testing to show 
that these engines meet the emission standards in paragraph (c) of this 
section, disregard hydrocarbon emissions).
    (3) Alcohol-fueled engines: THCE emissions.
    (g) Certain engines with total displacement at or below 1000 cc may 
comply with the requirements of 40 CFR part 90 instead of complying 
with the emission standards in this section, as described in 
Sec. 1048.615.
    (h) You must show in your certification application that your 
engines meet the exhaust emission standards in paragraphs (a) through 
(c) of this section over their full useful life. The minimum useful 
life is 5,000 hours of operation or seven years, whichever comes first. 
Specify a longer useful life under either of two conditions:
    (1) If you design, advertise, or market your engine to operate 
longer than the minimum useful life (your recommended time until 
rebuild may indicate a longer design life).
    (2) If your basic mechanical warranty is longer than the minimum 
useful life.
    (i) Refer to Sec. 1048.240 to apply deterioration factors.
    (j) Apply this subpart to all testing, including production-line 
and in-use testing, as described in subparts D and E of this part.


Sec. 1048.105  What steps must I take to address evaporative emissions?

    (a) Starting in the 2007 model year, if you produce an engine that 
runs on a volatile liquid fuel (such as gasoline), you must take the 
following steps to address evaporative emissions:
    (1) Specify and incorporate design features to avoid venting fuel 
vapors directly to the atmosphere. Evaporative hydrocarbon emissions 
must be less than 0.2 grams per gallon of fuel tank capacity during a 
nine-hour period of gradually increasing ambient temperatures from 22 
to 36 deg. C with fuel meeting the specifications in 40 CFR 1065.210, 
when measured from an engine with a complete fuel system using the 
equipment and procedures specified in 40 CFR 86.107-96 and 86.133-96. 
You may rely on any of the following designs instead of doing emission 
tests to show that you meet this requirement:
    (i) Use a tethered or self-closing gas cap on a fuel tank that 
stays sealed up to a positive pressure of 24.5 kPa (3.5 psi) or a 
vacuum pressure of 10.5 kPa (1.5 psi).
    (ii) Use a tethered or self-closing gas cap on a fuel tank that 
stays sealed up to a positive or vacuum pressure of 7 kPa (1 psi). Use 
an inflatable, nonpermeable bag that occupies the vapor space inside 
the fuel tank, exchanging air with the ambient as needed to prevent 
pressure buildup in the tank. The volume of the inflatable bag must be 
at least 30 percent of the total tank volume.
    (iii) Use a tethered or self-closing gas cap on a fuel tank that 
stays sealed except for venting to a charcoal canister. The engine must 
be designed to draw hydrocarbons from the canister into the engine's 
combustion chamber as needed to prevent evaporative emissions during 
normal operation.
    (iv) Use a tethered or self-closing gas cap on a collapsible 
bladder tank. A collapsible bladder tank is one that

[[Page 51192]]

changes in volume as needed to accommodate the changing amount of 
liquid fuel, thus eliminating the vapor space.
    (2) For nonmetallic fuel lines, specify and use products that meet 
the Category 1 specifications in SAE J2260 ``Nonmetallic Fuel System 
Tubing with One or More Layers,'' November 1996 (incorporated by 
reference in Sec. 1048.710).
    (3) Liquid fuel in the fuel tank may not reach boiling during 
continuous engine operation in the final installation at an ambient 
temperature of 30 deg. C. Gasoline with a volatility of 9 RVP begins to 
boil at about 53 deg. C. You may satisfy this requirement by specifying 
and incorporating design features to prevent fuel boiling under all 
normal operation.
    (b) If other companies install your engines in their equipment, 
give them any appropriate instructions, as described in Sec. 1048.130.


Sec. 1048.110  How must my engines diagnose malfunctions?

    (a) Equip your engines with a diagnostic system. Starting in the 
2007 model year, make sure your system will detect significant 
malfunctions in its emission-control system using one of the following 
protocols:
    (1) If your emission-control strategy depends on maintaining air-
fuel ratios at stoichiometry, an acceptable diagnostic design would 
identify malfunction whenever the air-fuel ratio does not cross 
stoichiometry for one minute. You may use other diagnostic strategies 
if we approve them in advance.
    (2) If the protocol described in paragraph (a)(1) of this section 
does not apply to your engine, you must use an alternative approach 
that we approve in advance.
    (b) Use a malfunction-indicator light (MIL). Make sure the MIL is 
readily visible to the operator; it may be any color except red. When 
the MIL goes on, it must display ``Check Engine,'' ``Service Engine 
Soon,'' or a similar message that we approve. You may use sound in 
addition to the light signal. The MIL must go on under each of these 
circumstances:
    (1) When a malfunction occurs, as described in paragraph (a) of 
this section.
    (2) When the diagnostic system cannot send signals to meet the 
requirement of paragraph (b)(1) of this section.
    (3) When the engine's ignition is in the ``key-on'' position before 
starting or cranking. The MIL should go out after engine starting if 
the system detects no malfunction.
    (c) Control when the MIL can go out. If the MIL goes on to show a 
malfunction, it must remain on during all later engine operation until 
servicing corrects the malfunction. If the engine is not serviced, but 
the malfunction does not recur for three consecutive engine starts 
during which the malfunctioning system is evaluated and found to be 
working properly, the MIL may stay off during later engine operation.
    (d) Store trouble codes in computer memory. Record and store in 
computer memory any diagnostic trouble codes showing a malfunction that 
should illuminate the MIL. The stored codes must identify the 
malfunctioning system or component as uniquely as possible. Make these 
codes available through the data link connector as described in 
paragraph (g) of this section. You may store codes for conditions that 
do not turn on the MIL. The system must store a separate code to show 
when the diagnostic system is disabled (from malfunction or tampering).
    (e) Make data, access codes, and devices accessible. Make all 
required data accessible to us without any access codes or devices that 
only you can supply. Ensure that anyone servicing your engine can read 
and understand the diagnostic trouble codes stored in the onboard 
computer with generic tools and information.
    (f) Consider exceptions for certain conditions. Your diagnostic 
systems may disregard trouble codes for the first three minutes after 
engine starting. You may ask us to approve diagnostic-system designs 
that disregard trouble codes under other conditions that would produce 
an unreliable reading, damage systems or components, or cause other 
safety risks. This might include operation at altitudes over 8,000 
feet.
    (g) Follow standard references for formats, codes, and connections. 
Follow conventions defined in the following documents (incorporated by 
reference in Sec. 1048.710), or ask us to approve using updated 
versions of these documents:
    (1) ISO 9141-2 February 1994, Road vehicles--Diagnostic systems 
Part 2.
    (2) ISO 14230-4 June 2000, Road vehicles--Diagnostic systems--KWP 
2000 requirements for emission-related systems.


Sec. 1048.115  What other requirements must my engines meet?

    Your engines must meet the following requirements:
    (a) Closed crankcase. Design and produce your engines so they 
release no crankcase emissions into the atmosphere.
    (b) Torque broadcasting. Electronically controlled engines must 
broadcast their speed and output shaft torque (in newton-meters) on 
their controller area networks. Engines may alternatively broadcast a 
surrogate value for torque that can be read with a remote device. This 
information is necessary for testing engines in the field (see 
Sec. 1065.515 of this chapter). This requirement applies beginning in 
the 2007 model year.
    (c) EPA access to broadcast information. If we request it, you must 
provide us any hardware or tools we would need to readily read, 
interpret, and record all information broadcast by an engine's on-board 
computers and electronic control modules. If you broadcast a surrogate 
parameter for torque values, you must provide us what we need to 
convert these into torque units. We will not ask for hardware or tools 
if they are readily available commercially.
    (d) Emission sampling capability. Produce all your engines to allow 
sampling of exhaust emissions in the field. This sampling requires 
either exhaust ports downstream of any aftertreatment devices or the 
ability to extend the exhaust pipe by 20 cm. This is necessary to 
minimize any diluting effect from ambient air at the end of the exhaust 
pipe.
    (e) Adjustable parameters. If your engines have adjustable 
parameters, make sure they meet all the requirements of this part for 
any adjustment in the physically available range.
    (1) We do not consider an operating parameter adjustable if you 
permanently seal it or if ordinary tools cannot readily access it.
    (2) We may require that you set adjustable parameters to any 
specification within the adjustable range during certification testing, 
production-line testing, selective enforcement auditing, or any 
required in-use testing.
    (f) Prohibited controls. You may not design engines with an 
emission-control system that emits any noxious or toxic substance that 
the engine would not emit during operation in the absence of such a 
system, except as specifically permitted by regulation.
    (g) Defeat devices. You may not equip your engines with a defeat 
device. A defeat device is an auxiliary emission-control device or 
other control feature that reduces the effectiveness of emission 
controls under conditions you may reasonably expect the engine to 
encounter during normal operation and use. This does not apply to 
auxiliary

[[Page 51193]]

emission-control devices you identify in your certification application 
if any of the following is true:
    (1) The conditions of concern were substantially included in your 
prescribed duty cycles.
    (2) You show your design is necessary to prevent catastrophic 
engine (or equipment) damage or accidents.
    (3) The reduced effectiveness applies only to starting the engine.


Sec. 1048.120  What warranty requirements apply to me?

    (a) You must warrant to the ultimate buyer that the new engine 
meets two conditions:
    (1) You have designed, built, and equipped it to meet the 
requirements of this part.
    (2) It is free from defects in materials and workmanship that may 
keep it from meeting these requirements.
    (b) Your emission-related warranty must be valid for at least 50 
percent of the engine's useful life in hours of operation or at least 
three years, whichever comes first. In the case of a high-cost 
warranted part, the warranty must be valid for at least 70 percent of 
the engine's useful life in hours of operation or at least five years, 
whichever comes first. You may offer a warranty more generous than we 
require. This warranty may not be shorter than any published or 
negotiated warranty you offer for the engine or any of its components. 
If an engine has no tamper-proof hour meter, we base the warranty 
periods in this paragraph only on the engine's age (in years).
    (c) The emission-related warranty must cover components whose 
failure would increase an engine's emissions, includeing electronic 
controls, fuel injection (for liquid or gaseous fuels), exhaust-gas 
recirculation, aftertreatment, or any other system you develop to 
control emissions. In general, we consider replacing or repairing other 
components to be the owner's responsibility.
    (d) You may exclude from your warranty a component named in 
paragraph (c) of this section, if it meets both of the following 
conditions:
    (1) It was in general use on similar engines before January 1, 
2000.
    (2) Its failure would clearly degrade the engine's performance 
enough that the operator would need to repair or replace it.
    (e) You may limit your emission-related warranty's validity to 
properly maintained engines, as described in Sec. 1068.115 of this 
chapter.
    (f) If you make an aftermarket part, you may--but do not have to--
certify that using the part will still allow engines to meet emission 
standards, as described in Sec. 85.2114 of this chapter.


Sec. 1048.125  What maintenance instructions must I give to buyers?

    Give the ultimate buyer of each new engine written instructions for 
properly maintaining and using the engine, including the emission-
control system. The maintenance instructions also apply to service 
accumulation on your test engines, as described in 40 CFR part 1065, 
subpart E.
    (a) Critical emission-related maintenance. You may schedule 
critical maintenance on particular devices if you meet the following 
conditions:
    (1) You may ask us to approve maintenance on air-injection, fuel-
system, or ignition components, aftertreatment devices, exhaust gas 
recirculation systems, crankcase ventilation valves, or oxygen sensors 
only if it meets two criteria:
    (i) Operators are reasonably likely to do the maintenance you call 
for.
    (ii) Engines need the maintenance to meet emission standards.
    (2) We will accept scheduled maintenance as reasonably likely to 
occur in use if you satisfy any of four conditions:
    (i) You present data showing that, if a lack of maintenance 
increases emissions, it also unacceptably degrades the engine's 
performance.
    (ii) You present survey data showing that 80 percent of engines in 
the field get the maintenance you specify at the recommended intervals.
    (iii) You provide the maintenance free of charge and clearly say so 
in maintenance instructions for the customer.
    (iv) You otherwise show us that the maintenance is reasonably 
likely to be done at the recommended intervals.
    (b) Minimum maintenance intervals. You may not schedule emission-
related maintenance within the minimum useful life period for 
aftertreatment devices, fuel injectors, sensors, electronic control 
units, and turbochargers.
    (c) Noncritical emission-related maintenance. For engine parts not 
listed in paragraph (a) or (b) of this section, you may recommend any 
additional amount of inspection or maintenance. But you must state 
clearly that these steps are not necessary to keep the emission-related 
warranty valid. Also, do not take these inspection or maintenance steps 
during service accumulation on your test engines.
    (d) Source of parts and repairs. Print clearly on the first page of 
your written maintenance instructions that any repair shop or person 
may maintain, replace, or repair emission-control devices and systems. 
Make sure your instructions require no component or service identified 
by brand, trade, or corporate name. Also, do not directly or indirectly 
distinguish between service by companies with which you have a 
commercial relationship and service by independent repair shops or the 
owner. You may disregard the requirements in this paragraph (d) if you 
do one of two things:
    (1) Provide a component or service without charge under the 
purchase agreement.
    (2) Get us to waive this prohibition in the public's interest by 
convincing us the engine will work properly only with the identified 
component or service.


Sec. 1048.130  What installation instructions must I give to equipment 
manufacturers?

    (a) If you sell an engine for someone else to install in a piece of 
nonroad equipment, give the buyer of the engine written instructions 
for installing it consistent with the requirements of this part. Make 
sure these instructions have the following information:
    (1) Include the heading: ``Emission-related installation 
instructions.''
    (2) State: ``Failing to follow these instructions when installing a 
certified engine in a piece of nonroad equipment violates federal law 
(40 CFR 1068.105(b)), subject to fines or other penalties as described 
in the Clean Air Act.''.
    (3) Describe any other instructions needed to install an exhaust 
aftertreatment device consistent with your application for 
certification.
    (4) Describe the steps needed to control evaporative emissions, as 
described in Sec. 1048.105.
    (5) Describe any necessary steps for installing the diagnostic 
system described in Sec. 1048.110.
    (6) Describe any limits on the range of applications needed to 
ensure that the engine operates consistently with your application for 
certification. For example, if your engines are certified only for 
constant-speed operation, tell equipment manufacturers not to install 
the engines in variable-speed applications. Also, if you need to avoid 
sustained high-load operation to meet the field-testing emission 
standards we specify in Sec. 1048.101(c), describe how the equipment 
manufacturer must properly size the engines for a given application.
    (7) Describe any other instructions to make sure the installed 
engine will operate according to design specifications in your 
application for certification.

[[Page 51194]]

    (8) State: ``If you obscure the engine's emission label, you must 
place a duplicate label on your equipment, as described in 40 CFR 
1068.105.''.
    (b) You do not need installation instructions for engines you 
install in your own equipment.


Sec. 1048.135  How must I label and identify the engines I produce?

    (a) Assign each production engine a unique identification number 
and permanently and legibly affix or engrave it on the engine.
    (b) At the time of manufacture, add a permanent label identifying 
each engine. To meet labeling requirements, do four things:
    (1) Attach the label in one piece so it is not removable without 
being destroyed or defaced.
    (2) Design and produce it to be durable and readable for the 
engine's entire life.
    (3) Secure it to a part of the engine needed for normal operation 
and not normally requiring replacement.
    (4) Write it in block letters in English.
    (c) On your engine label, do 13 things:
    (1) Include the heading ``EMISSION CONTROL INFORMATION.''
    (2) Include your full corporate name and trademark.
    (3) State: ``THIS ENGINE IS CERTIFIED TO OPERATE ON [specify 
operating fuel or fuels].''
    (4) Identify the emission-control system; your identifiers must use 
names and abbreviations consistent with SAE J1930, which we incorporate 
by reference (see Sec. 1048.710).
    (5) List all requirements for fuel and lubricants.
    (6) State the date of manufacture [DAY (optional), MONTH, and 
YEAR]; if you stamp this information on the engine and print it in the 
owner's manual, you may omit it from the label.
    (7) State: ``THIS ENGINE MEETS U.S. ENVIRONMENTAL PROTECTION AGENCY 
REGULATIONS FOR [MODEL YEAR] LARGE NONROAD SI ENGINES.''
    (8) Include EPA's standardized designation for the engine family.
    (9) State the engine's displacement (in liters) and rated power.
    (10) State the engine's useful life (see Sec. 1048.101(h)).
    (11) List specifications and adjustments for engine tuneups; show 
the proper position for the transmission during tuneup and state which 
accessories should be operating.
    (12) Describe other information on proper maintenance and use.
    (13) Identify the emission standards to which you have certified 
the engine.
    (d) Some of your engines may need more information on the label.
    (1) If you have an engine family that has been certified only for 
constant-speed engines, add to the engine label ``CONSTANT-SPEED 
ONLY.''
    (2) If you certify an engine to the voluntary standards in 
Sec. 1048.140, add to the engine label ``BLUE SKY SERIES.''
    (3) If you produce an engine we exempt from the requirements of 
this part, see 40 CFR part 1068, subparts C and D, for more label 
information.
    (e) Some engines may not have enough space for a label with all the 
required information. In this case, you may omit the information 
required in paragraphs (c)(3), (c)(4), (c)(5), and (c)(12) of this 
section if you print it in the owner's manual instead.
    (f) If you are unable to meet these labeling requirements, you may 
ask us to modify them consistent with the intent of this section.
    (g) If you obscure the engine label while installing the engine in 
the vehicle, you must place a duplicate label on the vehicle. If 
someone else installs the engine in a vehicle, give them duplicate 
labels if they ask for them (see 40 CFR 1068.105).


Sec. 1048.140  How do I certify my engines to more stringent, voluntary 
standards?

    This section defines voluntary standards that allow you to produce 
engines with a recognized level of superior emission control. We refer 
to these as ``Blue Sky Series'' engines. If you certify engines under 
this section, they must meet one of the following standards:
    (a) For the 2003 model year, an engine family may qualify for 
designation as ``Blue Sky Series'' by meeting all the requirements in 
this part that apply to 2004 model year engines. This includes all 
testing and reporting requirements.
    (b) For the 2003 through 2006 model years, an engine family may 
qualify for designation as ``Blue Sky Series'' by meeting all the 
requirements in this part that apply to 2007 model year engines. This 
includes all testing and reporting requirements.
    (c) Any engine family may qualify for designation as ``Blue Sky 
Series'' by meeting all the requirements in this part, while certifying 
to the following voluntary emission standards:
    (1) 1.3 g/kW-hr HC+NOX and 3.4
g/kW-hr CO using steady-state and transient test procedures, as 
described in subpart F of this part.
    (2) 1.8 g/kW-hr HC+NOX and 4.7
g/kW-hr CO using field-testing procedures, as described in subpart F of 
this part.


Sec. 1048.145  What provisions apply only for a limited time?

    The provisions in this section apply instead of other provisions in 
this part. This section describes when these interim provisions expire.
    (a) Family banking. You may certify an engine family to comply with 
all the 2007 model year requirements before 2007. For each year of 
early compliance for an engine family, you may delay certification by 
one year for a different engine family with smaller projected power-
weighted nationwide sales. For example, if you sell 1,000 engines with 
an average power rating of 50 kW certified a year early, you may delay 
certification for another engine family with an average power rating of 
100 kW of up to 500 engines. You must notify us as soon as you are 
aware of such a discrepancy between projected and actual sales.
    (b) Hydrocarbon standards. For 2004 through 2006 model years, 
manufacturers may use nonmethane hydrocarbon measurements to 
demonstrate compliance with applicable emission standards.
    (c) Transient emission testing. Engines rated over 560 kW are 
exempt from the transient emission standards in Sec. 1048.101(b).
    (d) In-use emission credits with steady-state testing. You may 
generate credits for the in-use averaging program described in 
Sec. 1048.415 using steady-state test procedures for 2004 through 2006 
model years.
    (e) Optional early field testing. For 2004 through 2006 model 
years, manufacturers may optionally use the field-testing procedures in 
subpart F of this part for any in-use testing required under subpart E 
of this part. In this case, the same emission standards apply to both 
steady-state testing and field testing.
    (f) Small-volume provisions. Special provisions apply to you if you 
manufacture fewer than 300 engines per year that are subject to the 
standards of this part.
    (1) For 2004 through 2006 model year engines, the lawn and garden 
exemption described in Sec. 1048.615 applies to your engines with total 
displacement up to 2500 cc with rated power at or below 30 kW. To 
qualify for this exemption, you must meet a CO emission standard of 130 
g/kW-hr using the procedures specified in 40 CFR part 90.
    (2) For 2007 through 2009 model year engines, you may optionally 
comply with the emission standards and other requirements that would 
otherwise apply starting in 2004.
    (3) If you qualify for the hardship provisions in Sec. 1068.241 of 
this chapter,

[[Page 51195]]

we may approve extensions of up to three years total.

Subpart C--Certifying Engine Families


Sec. 1048.201  What are the general requirements for submitting a 
certification application?

    (a) Send us an application for a certificate of conformity for each 
engine family. Each application is valid for only one model year.
    (b) The application must not include false or incomplete statements 
or information (see Sec. 1048.250). We may choose to ask you to send us 
less information than we specify in this subpart, but this would not 
change your recordkeeping requirements.
    (c) Use good engineering judgment for all decisions related to your 
application (see Sec. 1068.5 of this chapter).
    (d) An authorized representative of your company must approve and 
sign the application.


Sec. 1048.205  How must I prepare my application?

    In your application, you must do all the following things:
    (a) Describe the engine family's specifications and other basic 
parameters of the engine's design. List the types of fuel you intend to 
use to certify the engine family (for example, gasoline, liquefied 
petroleum gas, methanol, or natural gas).
    (b) Explain how the emission-control system operates. Describe in 
detail all the system's components, auxiliary emission-control devices, 
and all fuel-system components you will install on any production or 
test engine. Explain why any auxiliary emission-control devices are not 
defeat devices (see Sec. 1048.115(g)). Do not include detailed 
calibrations for components unless we ask for them.
    (c) Explain how the engine diagnostic system works, describing 
especially the engine conditions (with the corresponding diagnostic 
trouble codes) that cause the malfunction-indicator light to go on. 
Propose what you consider to be extreme conditions under which the 
diagnostic system should disregard trouble codes, as described in 
Sec. 1048.110.
    (d) Describe the engines you selected for testing and the reasons 
for selecting them.
    (e) Describe any special or alternate test procedures you used (see 
Sec. 1048.501).
    (f) Identify the duty cycle and the number of engine operating 
hours used to stabilize emission levels. Describe any scheduled 
maintenance you did.
    (g) List the specifications of the test fuel to show that it falls 
within the required ranges we specify in 40 CFR part 1065, subpart C.
    (h) Identify the engine family's useful life.
    (i) Propose maintenance and use instructions for the ultimate buyer 
of each new engine (see Sec. 1048.125).
    (j) Propose emission-related installation instructions if you sell 
engines for someone else to install in a piece of nonroad equipment 
(see Sec. 1048.130).
    (k) Identify each high-cost warranted part and show us how you 
calculated its replacement cost, including the estimated retail cost of 
the part, labor rates, and labor hours to diagnose and replace 
defective parts.
    (l) Propose an emission-control label.
    (m) Present emission data for HC, NOX, and CO on a test 
engine to show your engines meet the duty-cycle emission standards we 
specify in Sec. 1048.101(a) and (b). Show these figures before and 
after applying deterioration factors for each engine. Include test data 
for each type of fuel on which you intend for engines in the engine 
family to operate (for example, gasoline, liquefied petroleum gas, 
methanol, or natural gas).
    (n) Report all test results, including those from invalid tests or 
from any nonstandard tests (such as measurements based on exhaust 
concentrations in parts per million).
    (o) Identify the engine family's deterioration factors and describe 
how you developed them. Present any emission test data you used for 
this.
    (p) Describe all adjustable operating parameters (see 
Sec. 1048.115(d)), including the following:
    (1) The nominal or recommended setting and the associated 
production tolerances.
    (2) The intended physically adjustable range.
    (3) The limits or stops used to establish adjustable ranges.
    (4) Production tolerances of the limits or stops used to establish 
each physically adjustable range.
    (5) Information showing that someone cannot readily modify the 
engines to operate outside the physically adjustable range.
    (q) Describe everything we need to read and interpret all the 
information broadcast by an engine's onboard computers and electronic 
control modules and state that you will give us any hardware or tools 
we would need to do this. You may reference any appropriate publicly 
released standards that define conventions for these messages and 
parameters. Format your information consistent with publicly released 
standards.
    (r) If your engine family includes a volatile liquid fuel, propose 
a set of design parameters and instructions for installing the engine 
to minimize evaporative emissions (see Sec. 1048.115(g)).
    (s) State whether your engine will operate in variable-speed 
applications, constant-speed applications, or both. If your 
certification covers only constant-speed applications, describe how you 
will prevent use of these engines in variable-speed applications.
    (t) State that all the engines in the engine family comply with the 
field-testing emission standards we specify in Sec. 1048.101(c) for all 
normal operation and use (see Sec. 1048.515). Describe in detail any 
testing, engineering analysis, or other information on which you base 
this statement.
    (u) State that you operated your test engines according to the 
specified procedures and test parameters using the fuels described in 
the application to show you meet the requirements of this part.
    (v) State unconditionally that all the engines in the engine family 
comply with the requirements of this part, other referenced parts, and 
the Clean Air Act (42 U.S.C. 7401 et seq.).
    (w) Include estimates of engine production.
    (x) Add other information to help us evaluate your application if 
we ask for it.


Sec. 1048.210  May I get preliminary approval before I complete my 
application?

    If you send us information before you finish the application, we 
will review it and make any appropriate determinations listed in 
Sec. 1048.215(b) within 90 days of your request. If we need to ask you 
for further information, we will extend the 90-day period by the number 
of days we wait for your response.


Sec. 1048.215  What happens after I complete my application?

    (a) If any of the information in your application changes after you 
submit it, amend it as described in Sec. 1048.225.
    (b) We may decide that we cannot approve your application unless 
you revise it.
    (1) If you inappropriately use the provisions of Sec. 1048.230(c) 
or (d) to define a broader or narrower engine family, we will require 
you to redefine your engine family.
    (2) If we determine your selected useful life for the engine family 
is too short, we will require you to lengthen it (see 
Sec. 1048.101(h)).
    (3) If we determine your deterioration factors are not appropriate, 
we will

[[Page 51196]]

require you to revise them (see Sec. 1048.240(c)).
    (4) If your diagnostic system is inadequate for detecting 
significant malfunctions in emission-control systems, we will require 
you to make the system more effective (see Sec. 1048.110(b)).
    (5) If your diagnostic system inappropriately disregards trouble 
codes under certain conditions, we will require you to change the 
system to operate under broader conditions (see Sec. 1048.110(g)).
    (6) If your proposed label is inconsistent with Sec. 1048.135, we 
will require you to change it (and tell you how, if possible).
    (7) If you require or recommend maintenance and use instructions 
inconsistent with Sec. 1048.125, we will require you to change them.
    (8) If we find any other problem with your application, we will 
tell you how to correct it.
    (c) If we determine your application is complete and shows you meet 
all the requirements, we will issue a certificate of conformity for 
your engine family for that model year. If we deny the application, we 
will explain why in writing. You may then ask us to hold a hearing to 
reconsider our decision (see Sec. 1048.720).


Sec. 1048.220  How do I amend the maintenance instructions in my 
application?

    Send the Designated Officer a request to amend your application for 
certification for an engine family if you want to change the 
maintenance instructions in a way that could affect emissions. In your 
request, describe the proposed changes to the maintenance instructions. 
Unless we disapprove it, you may distribute the new maintenance 
instructions to your customers 30 days after we receive your request. 
We may also approve a shorter time or waive this requirement.


Sec. 1048.225  How do I amend my application to include new or modified 
engines?

    (a) You must amend your application for certification before you 
take either of the following actions:
    (1) Add an engine to a certificate of conformity.
    (2) Make a design change for a certified engine family that may 
affect emissions or an emission-related part over the engine's 
lifetime.
    (b) Send the Designated Officer a request to amend the application 
for certification for an engine family. In your request, do all of the 
following:
    (1) Describe the engine model or configuration you are adding or 
changing.
    (2) Include engineering evaluations or reasons why the original 
test engine is or is not still appropriate.
    (3) If the original test engine for the engine family is not 
appropriate to show compliance for the new or modified engine, include 
new test data showing that the new or modified engine meets the 
requirements of this part.
    (c) You may start producing the new or modified engine anytime 
after you send us your request.
    (d) You must give us test data within 30 days if we ask for more 
testing, or stop producing the engine if you cannot do this.
    (e) If we determine that the certificate of conformity would not 
cover your new or modified engine, we will send you a written 
explanation of our decision. In this case, you may no longer produce 
these engines, though you may ask for a hearing for us to reconsider 
our decision (see Sec. 1048.720).


Sec. 1048.230  How do I select engine families?

    (a) Divide your product line into families of engines that you 
expect to have similar emission characteristics. Your engine family is 
limited to a single model year.
    (b) Group engines in the same engine family if they are identical 
in all of the following aspects:
    (1) The combustion cycle.
    (2) The cooling system (water-cooled vs. air-cooled).
    (3) The number and arrangement of cylinders.
    (4) The number, location, volume, and composition of catalytic 
converters.
    (5) Method of air aspiration.
    (6) Bore and stroke.
    (7) Configuration of the combustion chamber.
    (8) Location of intake and exhaust valves or ports.
    (c) In some cases you may subdivide a group of engines that is 
identical under paragraph (b) of this section into different engine 
families. To do so, you must show you expect emission characteristics 
to be different during the useful life or that any of the following 
engine characteristics are different:
    (1) Method of actuating intake and exhaust timing (poppet valve, 
reed valve, rotary valve, etc.).
    (2) Sizes of intake and exhaust valves or ports.
    (3) Type of fuel.
    (4) Configuration of the fuel system.
    (5) Exhaust system.
    (d) If your engines are not identical with respect to the things 
listed in paragraph (b) of this section, but you show that their 
emission characteristics during the useful life will be similar, we may 
approve grouping them in the same engine family.
    (e) If you cannot define engine families by the method in this 
section, we will define them based on features related to emission 
characteristics.


Sec. 1048.235  How does testing fit with my application for a 
certificate of conformity?

    This section describes how to test engines in your effort to apply 
for a certificate of conformity.
    (a) Test your engines using the procedures and equipment specified 
in subpart F of this part.
    (b) Select from each engine family a test engine for each fuel type 
with a configuration you believe is most likely to exceed the emission 
standards. Using good engineering judgment, consider the emission 
levels of all exhaust constituents over the full useful life of the 
engine when operated in a piece of equipment.
    (c) You may submit emission data for equivalent engine families 
from previous years instead of doing new tests, but only if the data 
shows that the test engine would meet all the requirements for the 
latest engine models. We may require you to do new emission testing if 
we believe the latest engine models could be substantially different 
from the previously tested engine.
    (d) We may choose to measure emissions from any of your test 
engines.
    (1) If we do this, you must provide the test engine at the location 
we select. We may decide to do the testing at your plant or any other 
facility. If we choose to do the testing at your plant, you must 
schedule it as soon as possible and make available the instruments and 
equipment we need.
    (2) If we measure emissions on one of your test engines, the 
results of that testing become the official data for the engine. Unless 
we later invalidate this data, we may decide not to consider your data 
in determining if your engine family meets the emission standards.
    (3) Before we test one of your engines, we may set its adjustable 
parameters to any point within the physically adjustable ranges (see 
Sec. 1048.115(d)).
    (4) Calibrate the test engine within the production tolerances 
shown on the engine label for anything we do not consider an adjustable 
parameter (see Sec. 1048.205(m)).


Sec. 1048.240  How do I determine if my engine family complies with 
emission standards?

    (a) Your engine family complies with the numerical emission 
standards in Sec. 1048.101 if all emission-data engines representing 
that family have test results

[[Page 51197]]

showing emission levels at or below the standards in Sec. 1048.101(a) 
through (c).
    (b) Your engine family does not comply if any emission-data engine 
representing that family has test results showing emission levels above 
the standards from Sec. 1048.101(a) through (c) for any pollutant.
    (c) To compare emission levels from the test engine with the 
emission standards, apply deterioration factors to the measured 
emission levels. The deterioration factor is a number that shows the 
relationship between exhaust emissions at the end of useful life and at 
the low-hour test point. Specify the deterioration factors based on 
emission measurements, using three decimal places. Deterioration 
factors must be consistent with emission increases observed from in-use 
testing with similar engines (see subpart E of this part). Small-volume 
manufacturers may use assigned deterioration factors established by 
EPA. Apply the deterioration factors as follows:
    (1) For engines that use aftertreatment technology, such as 
catalytic converters, the deterioration factor is the ratio of exhaust 
emissions at the end of useful life to exhaust emissions at the low-
hour test point. Adjust the official emission results for each tested 
engine at the selected test point by multiplying the measured emissions 
by the deterioration factor. If the factor is less than one, use one.
    (2) For engines that do not use aftertreatment technology, the 
deterioration factor is the difference between exhaust emissions at the 
end of useful life and exhaust emissions at the low-hour test point. 
Adjust the official emission results for each tested engine at the 
selected test point by adding the factor to the measured emissions. If 
the factor is less than zero, use zero.
    (d) After adjusting the emission levels for deterioration, round 
them to the same number of decimal places as the standard. Compare the 
rounded emission levels to the emission standard for each test engine.


Sec. 1048.245  What records must I keep and make available to EPA?

    (a) Organize and maintain the following records to keep them 
readily available; we may review these records at any time:
    (1) A copy of all applications and any summary information you sent 
us.
    (2) Any of the information we specify in Sec. 1048.205 that you did 
not include in your application.
    (3) A detailed history of each emission-data engine. In each 
history, describe all of the following:
    (i) The test engine's construction, including its origin and 
buildup, steps you took to ensure that it represents production 
engines, any components you built specially for it, and all emission-
related components.
    (ii) How you accumulated engine operating hours, including the 
dates and the number of hours accumulated.
    (iii) All maintenance (including modifications, parts changes, and 
other service) and the dates and reasons for the maintenance.
    (iv) All your emission tests, including documentation on routine 
and standard tests, as specified in part 1065 of this chapter, and the 
date and purpose of each test.
    (v) All tests to diagnose engine or emission-control performance, 
giving the date and time of each and the reasons for the test.
    (vi) Any other significant events.
    (b) Keep data from routine emission tests (such as test cell 
temperatures and relative humidity readings) for one year after we 
issue the associated certificate of conformity. Keep all other 
information specified in paragraph (a) of this section for eight years 
after we issue your certificate.
    (c) Store these records in any format and on any media, as long as 
you can promptly send us organized, written records in English if we 
ask for them.
    (d) Send us copies of any engine maintenance instructions or 
explanations if we ask for them.


Sec. 1048.250  When may EPA deny, revoke, or void my certificate of 
conformity?

    (a) We may deny your application for certification if your 
emission-data engines fail to comply with emission standards or other 
requirements. Our decision may be based on any information available to 
us. If we deny your application, we will explain why in writing.
    (b) In addition, we may deny your application or revoke your 
certificate if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information (paragraph (d) of this 
section applies if this is fraudulent).
    (3) Render inaccurate any test data.
    (4) Deny us from completing authorized activities despite our 
presenting a warrant or court order (see Sec. 1068.20 of this chapter).
    (5) Produce engines for importation into the United States at a 
location where local law prohibits us from carrying out authorized 
activities.
    (c) We may void your certificate if you do not keep the records we 
require or do not give us information when we ask for it.
    (d) We may void your certificate if we find that you committed 
fraud to get it. This means intentionally submitting false or 
incomplete information.
    (e) If we deny your application or revoke or void your certificate, 
you may ask for a hearing (see Sec. 1048.720). Any such hearing will be 
limited to substantial and factual issues.

Subpart D--Testing Production-line Engines


Sec. 1048.301  When must I test my production-line engines?

    (a) If you produce engines that are subject the requirements of 
this part, you must test them as described in this subpart.
    (b) We may suspend or revoke your certificate of conformity for 
certain engine families if your production-line engines do not meet 
emission standards or you do not fulfill your obligations under this 
subpart (see Secs. 1048.325 and 1048.340).
    (c) The requirements of this part do not affect our ability to do 
selective enforcement audits, as described in part 1068 of this 
chapter.
    (d) You may ask to use an alternate program for testing production-
line engines. In your request, you must show us that the alternate 
program gives equal assurance that your production-line engines meet 
the requirements of this part. If we approve your alternate program, we 
may waive some or all of this part's requirements.
    (e) If you certify an engine family with carryover emission data, 
as described in Sec. 1048.235(c), and these equivalent engine families 
consistently meet the emission standards with production-line testing 
over the preceding two-year period, you may ask for a reduced testing 
rate for further production-line testing for that family. The minimum 
testing rate is one engine per engine family. If we reduce your testing 
rate, we may limit our approval to a single model year.
    (f) We may ask you to make a reasonable number of production-line 
engines available for a reasonable time so we can test or inspect them 
for compliance with the requirements of this part.


Sec. 1048.305  How must I prepare and test my production-line engines?

    (a) Test procedures. Test your production-line engines using either 
the steady-state or transient testing procedures in subpart F of this 
part to show you meet the emission standards in Sec. 1048.101 (a) or 
(b), respectively. We may require you to test engines using the 
transient testing procedures to show

[[Page 51198]]

you meet the emission standards in Sec. 1048.101(b).
    (b) Modifying a test engine. Once an engine is selected for testing 
(see Sec. 1048.310), you may adjust, repair, prepare, or modify it or 
check its emissions only if one of the following is true:
    (1) You document the need for doing so in your procedures for 
assembling and inspecting all your production engines and make the 
action routine for all the engines in the engine family.
    (2) This subpart otherwise specifically allows your action.
    (3) We approve your action in advance.
    (c) Engine malfunction. If an engine malfunction prevents further 
emission testing, ask us to approve your decision to either repair the 
engine or delete it from the test sequence.
    (d) Setting adjustable parameters. Before any test, we may adjust 
or require you to adjust any adjustable parameter to any setting within 
its physically adjustable range.
    (1) We may adjust idle speed outside the physically adjustable 
range as needed until the engine has stabilized emission levels (see 
paragraph (e) of this section). We may ask you for information needed 
to establish an alternate minimum idle speed.
    (2) We may make or specify adjustments within the physically 
adjustable range by considering their effect on emission levels, as 
well as how likely it is someone will make such an adjustment with in-
use engines.
    (e) Stabilizing emission levels. Before you test production-line 
engines, you may operate the engine to stabilize the emission levels. 
Using good engineering judgment, operate your engines in a way that 
represents the way production engines will be used. You may operate 
each engine for no more than the greater of two periods:
    (1) 50 hours.
    (2) The number of hours you operated your emission-data engine for 
certifying the engine family (see 40 CFR part 1065, subpart E).
    (f) Damage during shipment. If shipping an engine to a remote 
facility for production-line testing makes necessary an adjustment or 
repair, you must wait until after the after the initial emission test 
to do this work. We may waive this requirement if the test would be 
impossible or unsafe, or if it would permanently damage the engine. 
Report to us, in your written report under Sec. 1048.345, all 
adjustments or repairs you make on test engines before each test.
    (g) Retesting after invalid tests. You may retest an engine if you 
determine an emission test is invalid. Explain in your written report 
reasons for invalidating any test and the emission results from all 
tests. If you retest an engine and, within ten days after testing, ask 
to substitute results of the new tests for the original ones, we will 
answer within ten days after we receive your information.


Sec. 1048.310  How must I select engines for production-line testing?

    (a) Use test results from two engines for each engine family to 
calculate the required sample size for the model year. Update this 
calculation with each test.
    (b) Early in each calendar quarter, randomly select and test two 
engines from the end of the assembly line for each engine family.
    (c) Calculate the required sample size for each engine family. 
Separately calculate this figure for HC+NOX and for CO. The 
required sample size is the greater of these two calculated values. Use 
the following equation:
[GRAPHIC] [TIFF OMITTED] TP05OC01.003


Where:

N = Required sample size for the model year.
t95 = 95% confidence coefficient, which depends on the 
number of tests completed, n, as specified in the table in paragraph 
(c)(1) of this section. It defines 95% confidence intervals for a one-
tail distribution.
x = Mean of emission test results of the sample.
STD = Emission standard.
 = Test sample standard deviation (see paragraph (c)(2) of 
this section).

    (1) Determine the 95% confidence coefficient, t95, from 
the following table:

------------------------------------------------------------------------
        n    t95                 n    t95                n    t95
------------------------------------------------------------------------
           2    6.31               12    1.80              22    1.72
------------------------------------------------------------------------
           3    2.92               13    1.78              23    1.72
------------------------------------------------------------------------
           4    2.35               14    1.77              24    1.71
------------------------------------------------------------------------
           5    2.13               15    1.76              25    1.71
------------------------------------------------------------------------
           6    2.02               16    1.75              26    1.71
------------------------------------------------------------------------
           7    1.94               17    1.75              27    1.71
------------------------------------------------------------------------
           8    1.90               18    1.74              28    1.70
------------------------------------------------------------------------
           9    1.86               19    1.73              29    1.70
------------------------------------------------------------------------
          10    1.83               20    1.73             30+    1.70
------------------------------------------------------------------------
          11    1.81               21    1.72
------------------------------------------------------------------------

    (2) Calculate the standard deviation, , for the test 
sample using the following formula:
[GRAPHIC] [TIFF OMITTED] TP05OC01.004


Where:

Xi = Emission test result for an individual engine.
n = The number of tests completed in an engine family.

    (d) Use final deteriorated test results to calculate the variables 
in the equations in paragraph (c) of this section (see 
Sec. 1048.315(a)).
    (e) After each new test, recalculate the required sample size using 
the updated mean values, standard deviations, and the appropriate 95% 
confidence coefficient.

[[Page 51199]]

    (f) Distribute the remaining engine tests evenly throughout the 
rest of the year. You may need to adjust your schedule for selecting 
engines if the required sample size changes. Continue to randomly 
select engines from each engine family; this may involve testing 
engines that operate on different fuels.
    (g) Continue testing any engine family for which the sample mean, 
x, is greater than the emission standard. This applies if the sample 
mean for either HC+NOX or for CO is greater than the 
emission standard. Continue testing until one of the following things 
happens:
    (1) The sample size, n, for an engine family is greater than the 
required sample size, N, and the sample mean, x, is less than or equal 
to the emission standard.
    (2) The engine family does not comply according to Sec. 1048.325.
    (3) You test 30 engines from the engine family.
    (4) You test one percent of your projected annual U.S.-directed 
production volume for the engine family.
    (5) You choose to declare that the engine family does not comply 
with emission standards.
    (h) You may elect to test more randomly chosen engines than we 
require. Include these engines in the sample size calculations.


Sec. 1048.315  How do I know when my engine family does not comply?

    (a) Calculate your test results. Round them to the number of 
decimal places in the emission standard expressed to one more decimal 
place.
    (1) Initial and final test results. Calculate and round the test 
results for each engine. If you do several tests on an engine, 
calculate the initial test results, then add them together and divide 
by the number of tests and round for the final test results on that 
engine.
    (2) Final deteriorated test results. Apply the deterioration factor 
for the engine family to the final test results (see Sec. 1048.240(c)).
    (b) Construct the following CumSum Equation for each engine family 
(for HC+NOX and for CO emissions):

Ci = Ci-1 + Xi - (STD + F)

Where:

Ci = The current CumSum statistic.
Ci-1 = The previous CumSum statistic. Prior to any testing, 
the CumSum statistic is 0 (i.e. C0 = 0).
Xi = The current emission test result for an individual 
engine.
STD = Emission standard.
F = 0.25  x  

    (c) Use final deteriorated test results to calculate the variables 
in the equation in paragraph (b) of this section (see 
Sec. 1048.315(a)).
    (d) After each new test, recalculate the CumSum statistic.
    (e) If you test more than the required number of engines, include 
the results from these additional tests in the CumSum Equation.
    (f) After each test, compare the current CumSum statistic, 
Ci, to the recalculated Action Limit, H, defined as H = 5.0 
x  .
    (g) If the CumSum statistic exceeds the Action Limit in two 
consecutive tests, the engine family does not comply with the 
requirements of this part. Tell us within ten working days if this 
happens.
    (h) If you amend the application for certification for an engine 
family (see Sec. 1048.225), do not change any previous calculations of 
sample size or CumSum statistics for the model year.


Sec. 1048.320  What happens if one of my production-line engines fails 
to meet emission standards?

    (a) If you have a production-line engine with final deteriorated 
test results exceeding one or more emission standards (see 
Sec. 1048.315(a)), the certificate of conformity is automatically 
suspended for that failing engine. You must take the following actions 
before your certificate of conformity can cover that engine:
    (1) Correct the problem and retest the engine to show it complies 
with all emission standards.
    (2) Include in your written report a description of the test 
results and the remedy for each engine (see Sec. 1048.345).
    (b) You may at any time ask for a hearing to determine whether the 
tests and sampling methods were proper (see Sec. 1048.720).


Sec. 1048.325  What happens if an engine family does not comply?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails to comply under Sec. 1048.315. The suspension may 
apply to all facilities producing engines from an engine family, even 
if you find noncompliant engines only at one facility.
    (b) We will tell you in writing if we suspend your certificate in 
whole or in part. We will not suspend a certificate until at least 15 
days after the engine family became noncompliant. The suspension is 
effective when you receive our notice.
    (c) Up to 15 days after we suspend the certificate for an engine 
family, you may ask for a hearing to determine whether the tests and 
sampling methods were proper (see Sec. 1048.720). If we agree before a 
hearing that we used erroneous information in deciding to suspend the 
certificate, we will reinstate the certificate.


Sec. 1048.330  May I sell engines from an engine family with a 
suspended certificate of conformity?

    You may sell engines that you produce after we suspend the engine 
family's certificate of conformity under Sec. 1048.315 only if one of 
the following occurs:
    (a) You test each engine you produce and show it complies with 
emission standards that apply.
    (b) We conditionally reinstate the certificate for the engine 
family. We may do so if you agree to recall all the affected engines 
and remedy any noncompliance at no expense to the owner if later 
testing shows that the engine family still does not comply.


Sec. 1048.335  How do I ask EPA to reinstate my suspended certificate?

    (a) Send us a written report asking us to reinstate your suspended 
certificate. In your report, identify the reason for noncompliance, 
propose a remedy, and commit to a date for carrying it out. In your 
proposed remedy include any quality control measures you propose to 
keep the problem from happening again.
    (b) Give us data from production-line testing that shows the 
remedied engine family complies with all the emission standards that 
apply.


Sec. 1048.340  When may EPA revoke my certificate under this subpart 
and how may I sell these engines again?

    (a) We may revoke your certificate for an engine family in the 
following cases:
    (1) You do not meet the reporting requirements.
    (2) Your engine family fails to meet emission standards and your 
proposed remedy to address a suspended certificate under Sec. 1048.325 
is inadequate to solve the problem or requires you to change the 
engine's design or emission-control system.
    (b) To sell engines from an engine family with a revoked 
certificate of conformity, you must modify the engine family and then 
show it complies with the requirements of this part.
    (1) If we determine your proposed design change may not control 
emissions for the engine's full useful life, we will tell you within 
five working days after receiving your report. In this case we will 
decide whether production-line testing will be enough for us to 
evaluate the change or whether you need to do more testing.
    (2) Unless we require more testing, you may show compliance by 
testing production-line engines as described in this subpart.

[[Page 51200]]

    (3) We will issue a new or updated certificate of conformity when 
you have met these requirements.


Sec. 1048.345  What production-line testing records must I send to EPA?

    (a) Within 30 calendar days of the end of each calendar quarter, 
send us a report with the following information:
    (1) Describe any facility used to test production-line engines and 
state its location.
    (2) State the total U.S.-directed production volume and number of 
tests for each engine family.
    (3) Describe how you randomly selected engines.
    (4) Describe your test engines, including the engine family's 
identification and the engine's model year, build date, model number, 
identification number, and number of hours of operation before testing 
for each test engine.
    (5) Identify where you accumulated hours of operation on the 
engines and describe the procedure and schedule you used.
    (6) Provide the test number; the date, time and duration of 
testing; test procedure; initial test results before and after 
rounding; final test results; and final deteriorated test results for 
all tests. Provide the emission results for all measured pollutants. 
Include information for both valid and invalid tests and the reason for 
any invalidation.
    (7) Describe completely and justify any nonroutine adjustment, 
modification, repair, preparation, maintenance, or test for the test 
engine if you did not report it separately under this subpart. Include 
the results of any emission measurements, regardless of the procedure 
or type of equipment.
    (8) Provide the CumSum analysis required in Sec. 1048.315 for each 
engine family.
    (9) Report on each failed engine as described in Sec. 1048.320.
    (10) State the date the calendar quarter ended for each engine 
family.
    (b) We may ask you to add information to your written report, so we 
can determine whether your new engines conform with the requirements of 
this subpart.
    (c) An authorized representative of your company must sign the 
following statement:

    We submit this report under Sections 208 and 213 of the Clean 
Air Act. Our production-line testing conformed completely with the 
requirements of 40 CFR part 1048. We have not changed production 
processes or quality-control procedures for the engine family in a 
way that might affect the emission control from production engines. 
All the information in this report is true and accurate, to the best 
of my knowledge. I know of the penalties for violating the Clean Air 
Act and the regulations. (Authorized Company Representative)

    (d) Send electronic reports of production-line testing to the 
Designated Officer using an approved information format. If you want to 
use a different format, send us a written request with justification 
for a waiver.
    (e) We will send copies of your reports to anyone from the public 
who asks for them. We will not release information about your sales or 
production volumes, which we will consider confidential under 40 CFR 
part 2.


Sec. 1048.350  What records must I keep?

    (a) Organize and maintain your records as described in this 
section. We may review your records at any time, so it is important to 
keep required information readily available.
    (b) Keep paper records of your production-line testing for one full 
year after you complete all the testing required for an engine family 
in a model year. You may use any additional storage formats or media if 
you like.
    (c) Keep a copy of the written reports described in Sec. 1048.345.
    (d) Keep the following additional records:
    (1) A description of all test equipment for each test cell that you 
can use to test production-line engines.
    (2) The names of supervisors involved in each test.
    (3) The name of anyone who authorizes adjusting, repairing, 
preparing, or modifying a test engine and the names of all supervisors 
who oversee this work.
    (4) If you shipped the engine for testing, the date you shipped it, 
the associated storage or port facility, and the date the engine 
arrived at the testing facility.
    (5) Any records related to your production-line tests that are not 
in the written report.
    (6) A brief description of any significant events during testing 
not otherwise described in the written report or in this section.
    (e) If we ask, you must give us projected or actual production 
figures for an engine family. We may ask you to divide your production 
figures by power rating, displacement, fuel type, or assembly plant (if 
you produce engines at more than one plant).
    (f) Keep a list of engine identification numbers for all the 
engines you produce under each certificate of conformity. Give us this 
list within 30 days if we ask for it.
    (g) We may ask you to keep or send other information necessary to 
implement this subpart.

Subpart E--Testing In-Use Engines


Sec. 1048.401  What testing requirements apply to my engines that have 
gone into service?

    (a) If you produce engines that are subject to the requirements of 
this part, you must test them as described in this subpart. This 
generally involves testing engines in the field or removing them for 
measurement in a laboratory.
    (b) We may suspend or revoke your certificate of conformity for an 
engine family if in-use testing shows that the family fails to meet 
emission standards (see Sec. 1048.420) or if you do not meet your 
obligations under this part. You may use averaging, banking, or trading 
of in-use emission credits to show that an engine family meets the 
standards (see Sec. 1048.415).
    (c) We may approve an alternate plan for showing that in-use 
engines comply with the requirements of this part if one of the 
following is true:
    (1) You produce 200 or fewer engines per year in the selected 
engine family.
    (2) Removing the engine from most of the applications for that 
engine family causes significant, irreparable damage to the equipment.
    (3) You identify a unique aspect of your engine applications that 
keeps you from doing the required in-use testing.
    (d) Independent of your responsibility to test in-use engines, we 
may choose at any time to do our own testing of your in-use engines.


Sec. 1048.405  How does this program work?

    (a) You must test in-use engines from the families we select. We 
may select up to 25 percent of your engine families in any model year--
or one engine family if you have three or fewer families. We will 
select engine families for testing before the end of the model year. 
When we select an engine family for testing, we may specify that you 
preferentially test engines based on fuel type or equipment type. In 
addition, we may identify specific modes of operation or sampling 
times.
    (b) You may choose to test additional engine families that we do 
not select. You must explain to us your rationale and propose a testing 
plan if you want to generate in-use emission credits from this testing 
(see Sec. 1048.415). You may begin testing these engines 30 days after 
you propose your testing plan or after we approve it, whichever comes 
first.
    (c) Send us an in-use testing plan within 12 calendar months after 
we direct you to test a particular engine

[[Page 51201]]

family. Complete the testing within 24 calendar months after we approve 
your plan.
    (d) You may need to test engines from more than one model year at a 
given time.


Sec. 1048.410  How must I select, prepare, and test my in-use engines?

    (a) You may make arrangements to select representative test engines 
from your own fleet or from other independent sources.
    (b) For the selected engine families, select engines that you or 
your customers have--
    (1) Operated for at least 50 percent of the engine family's useful 
life (see Sec. 1048.101(d));
    (2) Not maintained or used in an abnormal way; and
    (3) Documented in terms of total hours of operation, maintenance, 
operating conditions, and storage.
    (c) Use the following methods to determine the number of engines 
you must test in each engine family:
    (1) Test at least two engines if you produce 2,000 or fewer engines 
in the model year from all engine families, or if you produce 500 or 
fewer engines from the selected engine family. Otherwise, test at least 
four engines.
    (2) If you successfully complete an in-use test program on an 
engine family and later certify an equivalent engine family with 
carryover emission data, as described in Sec. 1048.235(c), then test at 
least one engine instead of the testing rates in paragraph (c)(1) of 
this section.
    (3) If you test the minimum required number of engines and all 
comply fully with emission standards, you may stop testing.
    (4) For each engine that fails any applicable standard, test two 
more. Regardless of measured emission levels, you do not have to test 
more than ten engines in an engine family. You may do more tests than 
we require.
    (5) You may concede that the engine family does not comply before 
testing a total of ten engines.
    (d) You may do minimal maintenance to set components of a test 
engine to specifications for anything we do not consider an adjustable 
parameter (see Sec. 1048.205(m)). Limit maintenance to what is in the 
owner's instructions for engines with that amount of service and age. 
Document all maintenance and adjustments.
    (e) Do at least one valid emission test for each test engine.
    (f) For a test program on an engine family, choose one of the 
following methods to test your engines:
    (1) Remove the selected engines for testing in a laboratory. Use 
the applicable steady-state and transient procedures in subpart F of 
this part to show compliance with the duty-cycle standards in 
Sec. 1048.101(a) and (b). We may direct you to measure emissions on the 
dynamometer using the supplemental test procedures in Sec. 1048.515 to 
show compliance with the field-testing standards in Sec. 1048.101(c).
    (2) Test the selected engines while they remain installed in the 
equipment. Use the field testing procedures in subpart F of this part. 
Measure emissions during normal operation of the equipment to show 
compliance with the field-testing standards in Sec. 1048.101(c). We may 
direct you to include specific areas of normal operation.
    (g) You may ask us to waive parts of the prescribed test procedures 
if they are not necessary to determine in-use compliance.
    (h) Calculate the average emission levels for an engine family from 
the results for the set of tested engines. Round them to the number of 
decimal places in the emission standards expressed to one more decimal 
place.


Sec. 1048.415  How can I use in-use emission credits?

    (a) You may include all engines subject to this part in the 
voluntary in-use credit program; however, you may generate or use 
emission credits under this program only if you measure emissions using 
the transient duty-cycle procedures in Subpart F of this part.
    (b) If your average emission level for a family is lower than the 
emission standard, you may generate positive emission credits for any 
of three purposes:
    (1) Averaging. Use these emission credits for averaging in the same 
model year. If you want to test other engine families to generate 
additional credits, file your request and plan with us for approval 
(See Sec. 1048.405).
    (2) Banking. Reserve a positive balance of unused credits at the 
end of the model year for banking and then ``withdraw'' them for a 
later model year.
    (3) Trading. Sell your banked credits to another manufacturer or a 
broker for engines that are also subject to the requirements of this 
part. A manufacturer may use purchased credits for averaging, banking, 
or further trading.
    (c) You may use emission credits for banking or trading beginning 
30 days after you submit the last report required for a model year. We 
may correct any errors in calculating banked credits, but we may revoke 
some or all in-use emission credits if we discover problems or errors 
in calculating or reporting them.
    (d) If your average emission level for a family is higher than the 
emission standard, you must calculate the negative or required credits 
for that engine family and use positive emission credits to offset 
them. You have until the date of the last report required for a model 
year to complete credit exchanges, so you can show a zero or positive 
credit balance.
    (e) You may not generate positive emission credits for an engine 
family if it has an average emission level higher than the emission 
standard for any other pollutant.
    (f) In-use emission credits expire after three model years. For 
example, emission credits you generate with 2007 model year engines are 
available for showing compliance with 2010 model year engines, but not 
with 2011 model year engines.
    (g) For in-use emission credit trading that results in a negative 
credit balance, both the buyer and seller are liable, except in cases 
involving fraud. If a credit buyer is not responsible for causing the 
negative credit balance, the buyer is only liable to supply additional 
credits equivalent to any amount of invalid credits involved. If your 
engine families are involved in a negative trade, we order you to 
recall those engines.
    (h) Calculate positive and negative emission credits according to 
the following equation and round the results to the nearest metric ton:

CREDITS = SALES  x  (STD - CL)  x  POWER  x  AF  x  LF  x  UL  x  
10-6

Where:

CREDITS = Emission credits in metric tons.
SALES = The number of eligible sales, tracked to the point of first 
retail sale in the U.S., for the given engine family during the model 
year.
STD = The emission standard in g/kW-hr.
CL = Average emission level for an in-use testing family in g/kW-hr.
UL= Useful life in hours (see Sec. 1048.101(d)).
POWER = The sales-weighted average rated power for an engine family in 
kW.
LF = Load factor or fraction of rated engine power utilized in use; use 
0.50 for constant-speed engines and 0.32 for all other engines.
AF = Adjustment factor for the number of tests you do, as shown in the 
table in paragraph (i) of this section; this factor is 1.0 if the 
engine family has an average emission level higher than the emission 
standard for any pollutant.


[[Page 51202]]


    (i) Use the following table for the adjustment factor in the 
equation in paragraph (h) of this section:

    Table 1 of Sec.  1048.415.--Adjustment Factors for In-use Credit
                               Calculation
------------------------------------------------------------------------
                                                              Adjustment
                                                              factor for
                  Number of engines tested                     positive
                                                               credits
------------------------------------------------------------------------
2..........................................................         0.45
------------------------------------------------------------------------
3..........................................................         0.45
------------------------------------------------------------------------
4..........................................................         0.45
------------------------------------------------------------------------
5..........................................................         0.56
------------------------------------------------------------------------
6..........................................................         0.68
------------------------------------------------------------------------
7..........................................................         0.74
------------------------------------------------------------------------
8..........................................................         0.81
------------------------------------------------------------------------
9..........................................................         0.86
------------------------------------------------------------------------
10+........................................................         0.90
------------------------------------------------------------------------

Sec. 1048.420  What happens if my in-use engines do not meet 
requirements?

    (a) Determine the reason each in-use engine exceeds the emission 
standards.
    (b) If the average emission levels calculated in Sec. 1048.410(h) 
exceed any of the emission standards that apply, the engine family is 
noncompliant. Section 1048.415 describes how you can use in-use 
averaging, banking, or trading to show that your engine families comply 
with the standards. Determine the reasons any engine family does not 
comply and notify us within fifteen days of completing testing on this 
family.
    (c) If you voluntarily test more engine families and these engines 
do not comply with emission standards, you must treat the family as 
though it failed under the in-use testing program we direct.
    (d) You may voluntarily recall an engine family for emission 
failures, as described in Sec. 1068.535 of this chapter, unless we have 
ordered a recall for that family under Sec. 1068.505 of this chapter.
    (e) We will consider failure rates, average emission levels, and 
any defects--among other things--to decide on taking remedial action 
under this subpart. We may order a recall before or after you complete 
testing of an engine family if we determine a substantial number of 
engines do not conform to section 213 of the Act or to this part.
    (f) You have the right to a hearing before we suspend or revoke 
your engine family's certificate of conformity (see Sec. 1048.720).


Sec. 1048.425  What in-use testing information must I report to EPA?

    (a) In a report to us within three months after you finish testing 
an engine family, do all the following:
    (1) Identify the engine family, model, serial number, and date of 
manufacture.
    (2) For each engine inspected or considered for testing, identify 
whether the diagnostic system was functioning.
    (3) Describe the specific reasons for disqualifying any engines for 
not being properly maintained or used.
    (4) For each engine selected for testing, include the following 
information:
    (i) Estimate the hours each engine was used before testing.
    (ii) Describe all maintenance, adjustments, modifications, and 
repairs to each test engine.
    (5) State the date and time of each test attempt.
    (6) Include the results of all emission testing, including 
incomplete or invalidated tests, if any.
    (b) Notify us separately of any engine families that do not meet 
emission standards, as described in Sec. 1048.420.
    (c) If you participate in the in-use credit program, send us a 
report within 90 days after completing all in-use testing for the model 
year. If we do not receive this report on time, we will treat the 
results of your in-use testing without considering credits. Include 
required information in your report and show the calculated credits 
from all your in-use testing for the model year.
    (d) If you or we determine a previous report had errors, you must 
recalculate your credits. We will void any erroneous positive credits 
and may adjust any erroneous negative credits. Do not recalculate your 
credits when you update your sales information for in-use testing, 
unless you made an error in estimating the number of engines you 
export.
    (e) Send electronic reports of in-use testing to the Designated 
Officer using an approved information format. If you want to use a 
different format, send us a written request with justification for a 
waiver.
    (f) We will send copies of your reports to anyone from the public 
who asks for them. We will not release information about your sales or 
production volumes, which is all we will consider confidential.
    (g) We may ask for more information.


Sec. 1048.430  What records must I keep?

    (a) Organize and maintain your records as described in this 
section. We may review your records at any time, so it is important to 
keep required information readily available.
    (b) Keep paper records of your in-use testing for one full year 
after you complete all the testing required for an engine family in a 
model year. You may use any additional storage formats or media if you 
like.
    (c) Keep a copy of the written reports described in Sec. 1048.425.
    (d) Keep the following additional records:
    (1) Documents used in the procurement process.
    (2) Required records for the in-use credit program described in 
Sec. 1048.415 if you participate in it.

Subpart F--Test Procedures


Sec. 1048.501  What procedures must I use to test my engines?

    (a) Use the equipment and procedures for spark-ignition engines in 
part 1065 of this chapter to show your engines meet the duty-cycle 
emission standards in Sec. 1048.101(a) and (b). Measure HC, 
NOX, CO, and CO2 emissions using the dilute sampling 
procedures in part 1065 of this chapter. Use the applicable duty cycles 
in Secs. 1048.505 and 1048.510.
    (b) We describe in Sec. 1048.515 the supplemental procedures for 
showing that your engines meet the field-testing emission standards in 
Sec. 1048.101(c).
    (c) Use the fuels specified in 40 CFR part 1065, subpart C, for all 
the testing and service accumulation we require in this part.
    (d) You may use special or alternate procedures, as described in 
Sec. 1065.10 of this chapter.
    (e) We may reject data you generate using alternate procedures if 
later testing with the procedures in part 1065 of this chapter shows 
contradictory emission data.


Sec. 1048.505  What steady-state duty cycles apply for laboratory 
testing?

    (a) Measure emissions by testing the engine on a dynamometer with 
one or both of the following sets of steady-state duty cycles:
    (1) Use the 5-mode duty cycle described in the following table if 
you certify an engine family for operation only at a single, rated 
speed:

[[Page 51203]]



                  Table 1 of Sec.  1048.505.--5-Mode Duty Cycle for Constant-Speed Engines \1\
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                                          time in     Weighting
                Mode No.                            Engine speed              Torque        mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1.......................................  Maximum test...................          100          5.0         0.05
----------------------------------------------------------------------------------------------------------------
2.......................................  Maximum test...................           75          5.0         0.25
----------------------------------------------------------------------------------------------------------------
3.......................................  Maximum test...................           50          5.0         0.30
----------------------------------------------------------------------------------------------------------------
4.......................................  Maximum test...................           25          5.0         0.30
----------------------------------------------------------------------------------------------------------------
5.......................................  Maximum test...................           10          5.0        0.10
----------------------------------------------------------------------------------------------------------------
\1\ This duty cycle is analogous to the D2 cycle specified in ISO 8178-4.

    (2) Use the 7-mode duty cycle described in the following table for 
engines from an engine family that will be used only in variable-speed 
applications:

                                Table 2 of Sec.  1048.505.--7-Mode Duty Cycle \1\
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                             Observed     time in     Weighting
                Mode No.                            Engine speed            torque \2\      mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1.......................................  Maximum test speed.............           25          5.0         0.06
----------------------------------------------------------------------------------------------------------------
2.......................................  Intermediate test speed........          100          5.0         0.02
----------------------------------------------------------------------------------------------------------------
3.......................................  Intermediate test speed........           75          5.0         0.05
----------------------------------------------------------------------------------------------------------------
4.......................................  Intermediate test speed........           50          5.0         0.32
----------------------------------------------------------------------------------------------------------------
5.......................................  Intermediate test speed........           25          5.0         0.30
----------------------------------------------------------------------------------------------------------------
6.......................................  Intermediate test speed........           10          5.0         0.10
----------------------------------------------------------------------------------------------------------------
7.......................................  Idle...........................            0          5.0        0.15
----------------------------------------------------------------------------------------------------------------
\1\ This duty cycle is analogous to the C2 cycle specified in ISO 8178-4.
\2\ The percent torque is relative to the maximum torque at the given engine speed.

    (3) Use both of the duty cycles described in paragraphs (a)(1) and 
(a)(2) of this section if you will not restrict an engine family to 
constant-speed or variable-speed applications.
    (b) If we test an engine to confirm that it meets the duty-cycle 
emission standards, we will use the duty cycles that apply for that 
engine family.
    (c) During idle mode, operate the engine with the following 
parameters:
    (1) Hold the speed within your specifications.
    (2) Keep the throttle fully closed.
    (3) Keep engine torque under 5 percent of the peak torque value at 
maximum test speed.
    (d) For the full-load operating mode, operate the engine at its 
maximum fueling rate.
    (e) See part 1065 of this chapter for detailed specifications of 
tolerances and calculations.


Sec. 1048.510  What transient duty cycles apply for laboratory testing?

    (a) Starting with the 2007 model year, measure emissions by testing 
the engine on a dynamometer with one of the following transient duty 
cycles:
    (1) If you certify an engine family for constant-speed operation 
only, use the transient duty-cycle described in Appendix I of this 
part.
    (2) For all other engines, use the transient duty-cycle described 
in Appendix II of this part.
    (b) If we test an engine to confirm that it meets the duty-cycle 
emission standards, we will use the duty cycle that applies for that 
engine family.
    (c) To warm up the engine, operate it for the first 180 seconds of 
the appropriate duty cycle, then allow it to idle without load for 30 
seconds. At the end of the 30-second idling period, start measuring 
emissions as the engine operates over the prescribed duty cycle.


Sec. 1048.515  Field-testing procedures.

    (a) This section describes the procedures to show that your engines 
meet the field-testing emission standards in Sec. 1048.101(c). These 
procedures may include any normal engine operation and ambient 
conditions that the engines may experience in use. Paragraph (c) of 
this section defines the limits of what we will consider normal engine 
operation and ambient conditions. Measure emissions with one of the 
following procedures.
    (1) Remove the selected engines for testing in a laboratory. This 
generally involves the same equipment and sampling methods we specify 
in Sec. 1048.501(a). You can use the engine dynamometer to simulate 
normal operation, as described in this section.
    (2) Test the selected engines while they remain installed in the 
equipment. Part 1065, subpart J, of this chapter describes the 
equipment and sampling methods for testing engines in the field. Use 
fuel meeting the specifications of Sec. 1065.210 of this chapter or a 
fuel typical of what you would expect the engine to use in service.
    (b) Use the test procedures we specify in Sec. 1048.501, except for 
the provisions we specify in this section.
    (c) To comply with the emission standards in Sec. 1048.101(c), an 
engine's

[[Page 51204]]

emissions may not exceed the levels we specify in Sec. 1048.101(c) for 
any continuous sampling period of at least 120 seconds under the 
following ranges of operation and operating conditions:
    (1) Engine operation during the emission sampling period may 
include any normal operation, subject to the following restrictions:
    (i) Average power must be over 5 percent of rated power.
    (ii) Continuous time at idle must not be greater than 120 seconds.
    (iii) The sampling period may not begin until the engine has 
reached stable operating temperatures. For example, this would exclude 
engine operation after starting until the thermostat starts modulating 
coolant temperature.
    (iv) The sampling period may not include engine starting.
    (v) For gasoline-fueled engines, operation at 90 percent or more of 
maximum power must be less than 10 percent of the total sampling time. 
You may request our approval for a different power threshold.
    (2) Engine testing may occur under any normal conditions without 
correcting measured emission levels, subject to the following 
restrictions:
    (i) Barometric pressure must be between 600 and 775 mm Hg.
    (ii) Ambient air temperature must be between 13 deg. and 35 deg. C.

Subpart G--Compliance Provisions


Sec. 1048.601  What compliance provisions apply to these engines?

    Engine and equipment manufacturers, as well as owners, operators, 
and rebuilders of these engines, and all other persons, must observe 
the requirements and prohibitions in part 1068 of this chapter. The 
compliance provisions in this subpart apply only to the engines we 
regulate in this part.


Sec. 1048.605  What are the provisions for exempting engines from the 
requirements of this part if they are already certified under the 
motor-vehicle program?

    (a) This section applies to you if you are an engine manufacturer. 
See Sec. 1048.610 if you are not an engine manufacturer.
    (b) The only requirements or prohibitions from this part that apply 
to an engine that is exempt under this section are in this section.
    (c) If you meet all the following criteria regarding your new 
engine, it is exempt under this section:
    (1) You must produce it by modifying an engine covered by a valid 
certificate of conformity under 40 CFR part 86.
    (2) You must not make any changes to the certified engine that we 
could reasonably expect to increase its exhaust or evaporative 
emissions. For example, if you make any of the following changes to one 
of these engines, you do not qualify for this exemption:
    (i) Change any fuel system or evaporative system parameters from 
the certified configuration (this does not apply to refueling emission 
controls).
    (ii) Change any other emission-related components.
    (iii) Modify or design the engine cooling system so that 
temperatures or heat rejection rates are outside the original engine 
manufacturer's specified ranges.
    (3) You must make sure the engine still has the label we require 
under 40 CFR part 86.
    (4) You must make sure that fewer than 50 percent of the engine 
model's total sales, from all companies, are used in nonroad 
applications..
    (d) If you produce both the engine and vehicle under this 
exemption, you must do all of the following to keep the exemption 
valid:
    (1) Make sure the original engine label is intact.
    (2) Add a permanent supplemental label to the engine in a position 
where it will remain clearly visible after installation in the 
equipment. In your engine label, do the following:
    (i) Include the heading: ``Nonroad Engine Emission Control 
Information''.
    (ii) Include your full corporate name and trademark.
    (iii) State: ``THIS ENGINE WAS ADAPTED FOR NONROAD USE WITHOUT 
AFFECTING ITS EMISSION CONTROLS.''.
    (iv) State the date you finished modifying the engine (month and 
year).
    (3) Make sure the original and supplemental labels are readily 
visible after the engine is installed in the equipment or, if equipment 
obscures the engine's labels, make sure the equipment manufacturer 
attaches duplicate labels, as described in Sec. 1068.105 of this 
chapter.
    (4) Send the Designated Officer a signed letter by the end of each 
calendar year (or less often if we tell you) with all the following 
information:
    (i) Identify your full corporate name, address, and telephone 
number.
    (ii) List the engine models you expect to produce under this 
exemption in the coming year.
    (iii) State: ``We produce each listed engine model for nonroad 
application without making any changes that could increase its 
certified emission levels, as described in 40 CFR 1048.605.''.
    (e) If your engines do not meet the criteria listed in paragraph 
(c) of this section, they will be subject to the standards and 
prohibitions of this part. Producing these engines without a valid 
exemption or certificate of conformity would violate the prohibitions 
in Sec. 1068.101 of this chapter.
    (f) If you are the original manufacturer of both the highway and 
nonroad versions of an exempted engine, you must send us emission test 
data on the applicable nonroad duty cycle(s) (see Secs. 1048.505 and 
1048.510). You may include the data in your application for 
certification or in your letter requesting the exemption.
    (g) If you are the original manufacturer of an exempted engine that 
is modified by another company under this exemption, we may require you 
to send us emission test data on the applicable nonroad duty cycle(s). 
If we ask for this data, we will allow a reasonable amount of time to 
collect it.
    (h) Make sure the engine exempted under this section meets all 
applicable requirements from 40 CFR part 86. This applies to engine 
manufacturers, equipment manufacturers who use these engines, and all 
other persons as if these engines were used in a motor vehicle.


Sec. 1048.610  What are the provisions for producing nonroad equipment 
with engines already certified under the motor-vehicle program?

    If you are not an engine manufacturer, you may produce nonroad 
equipment from complete or incomplete motor vehicles with the motor 
vehicle engine if you meet three criteria:
    (a) The engine or vehicle is certified to 40 CFR part 86.
    (b) The engine is not adjusted outside the manufacturer's 
specifications.
    (c) The engine or vehicle is not modified in any way that may 
affect its emission control. This applies to exhaust and evaporative 
emission controls, but not refueling emission controls.


Sec. 1048.615  What are the provisions for exempting engines designed 
for lawn and garden applications?

    This section is intended for engines designed for lawn and garden 
applications, but it applies to any engines meeting the size criteria 
in paragraph (a) of this section.
    (a) If an engine meets all the following criteria, it is exempt 
from the requirements of this part:
    (1) The engine must have a total displacement of 1,000 cc or less.
    (2) The engine must have a rated power at or below 30 kW.
    (3) The engine must be in an engine family that has a valid 
certificate of conformity showing that it meets emission standards for 
Class II engines under 40 CFR part 90.

[[Page 51205]]

    (b) The only requirements or prohibitions from this part that apply 
to an engine that is exempt under this section are in this section.
    (c) If your engines do not meet the criteria listed in paragraph 
(a) of this section, they will be subject to the provisions of this 
part. Producing these engines without a valid exemption or certificate 
of conformity would violate the prohibitions in Sec. 1068.101 of this 
chapter.
    (d) Engines exempted under this section are subject to all the 
requirements affecting engines under 40 CFR part 90. The requirements 
and restrictions of 40 CFR part 90 apply to anyone manufacturing these 
engines, anyone manufacturing equipment that uses these engines, and 
all other persons in the same manner as if these engines had a total 
rated power at or below 19 kW.

Subpart H--Definitions and Other Reference Information


Sec. 1048.701  What definitions apply to this part?

    The following definitions apply to this part. The definitions apply 
to all subparts unless we note otherwise. All undefined terms have the 
meaning the Act gives to them. The definitions follow:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.
    Adjustable parameter means any device, system, or element of design 
that someone can adjust (including those which are difficult to access) 
and that, if adjusted, may affect emissions or engine performance 
during emission testing or normal in-use operation.
    Aftertreatment means relating to any system, component, or 
technology mounted downstream of the exhaust valve or exhaust port 
whose design function is to reduce exhaust emissions.
    Aircraft means any vehicle capable of sustained air travel above 
treetop heights.
    All-terrain vehicle means a nonroad vehicle with three or more 
wheels and a seat, designed for operation over rough terrain and 
intended primarily for transportation. This includes both land-based 
and amphibious vehicles.
    Auxiliary emission-control device means any element of design that 
senses temperature, engine rpm, motive speed, transmission gear, 
atmospheric pressure, manifold pressure or vacuum, or any other 
parameter to activate, modulate, delay, or deactivate the operation of 
any part of the emission-control system. This also includes any other 
feature that causes in-use emissions to be higher than those measured 
under test conditions, except as we allow under this part.
    Auxiliary marine engine means a marine engine not used for 
propulsion.
    Blue Sky Series engine means an engine meeting the requirements of 
Sec. 1048.140.
    Broker means any entity that facilitates a trade of emission 
credits between a buyer and seller.
    Calibration means the set of specifications and tolerances specific 
to a particular design, version, or application of a component or 
assembly capable of functionally describing its operation over its 
working range.
    Certification means obtaining a certificate of conformity for an 
engine family that complies with the emission standards and 
requirements in this part.
    Compression-ignition means relating to a type of reciprocating, 
internal-combustion engine that is not a spark-ignition engine.
    Constant-speed engine means an engine governed to operate at a 
single speed.
    Crankcase emissions means airborne substances emitted to the 
atmosphere from any part of the engine crankcase's ventilation or 
lubrication systems. The crankcase is the housing for the crankshaft 
and other related internal parts.
    Designated Officer means the Manager, Engine Programs Group (6403-
J), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave., 
Washington, DC 20460.
    Emission-control system means any device, system, or element of 
design that controls or reduces the regulated emissions from an engine.
    Emission-data engine means an engine that is tested for 
certification.
    Emission-related maintenance means maintenance that substantially 
affects emissions or is likely to substantially affect emissions 
deterioration.
    Engine family means a group of engines with similar emission 
characteristics, as specified in Sec. 1048.230.
    Engine manufacturer has the meaning given in section 216(1) of the 
Act. In general, this term includes any person who manufactures an 
engine for sale in the United States or otherwise introduces a new 
engine into commerce in the United States. This includes importers.
    Fuel system means all components involved in transporting, 
metering, and mixing the fuel from the fuel tank to the combustion 
chamber(s), including the fuel tank, fuel tank cap, fuel pump, fuel 
filters, fuel lines, carburetor or fuel-injection components, and all 
fuel-system vents.
    Good engineering judgment has the meaning we give it in Sec. 1068.5 
of this chapter.
    High-cost warranted part means a component covered by the emission-
related warranty with a replacement cost (at the time of certification) 
exceeding $400 (in 1998 dollars). Adjust this value using the most 
recent annual average consumer price index information published by the 
U.S. Bureau of Labor Statistics. For this definition, replacement cost 
includes the retail cost of the part plus labor and standard diagnosis.
    Hydrocarbon (HC) means the hydrocarbon group on which the emission 
standards are based for each fuel type. For gasoline- and LPG-fueled 
engines, HC means total hydrocarbon (THC). For natural gas-fueled 
engines, HC means nonmethane hydrocarbon (NMHC). For alcohol-fueled 
engines, HC means total hydrocarbon equivalent (THCE).
    Identification number means a unique specification (for example, 
model number/serial number combination) that allows someone to 
distinguish a particular engine from other similar engines.
    Intermediate test speed has the meaning we give in Sec. 1065.515 of 
this chapter.
    Marine engine means an engine that someone installs or intends to 
install on a marine vessel.
    Marine vessel means a vehicle that is capable of operation in water 
but is not capable of operation out of water. Amphibious vehicles are 
not marine vessels.
    Maximum test torque has the meaning we give in Sec. 1065.1000 of 
this chapter.
    Maximum test speed has the meaning we give in Sec. 1065.515 of this 
chapter.
    Model year means one of the following things:
    (1) For freshly manufactured engines (see definition of ``new 
nonroad engine,'' paragraph (1)), model year means one of the 
following:
    (i) Calendar year.
    (ii) Your annual new model production period if it is different 
than the calendar year. This must include January 1 of the calendar 
year for which the model year is named. It may not begin before January 
2 of the previous calendar year and it must end by December 31 of the 
named calendar year.
    (2) For an engine that is converted to a nonroad engine after being 
placed into service in a motor vehicle, model year means the calendar 
year in which the engine was originally produced (see definition of 
``new nonroad engine,'' paragraph (2)).

[[Page 51206]]

    (3) For a nonroad engine excluded under Sec. 1048.5 that is later 
converted to operate in an application that is not excluded, model year 
means the calendar year in which the engine was originally produced 
(see definition of ``new nonroad engine,'' paragraph (3)).
    (4) For engines that are not freshly manufactured but are installed 
in new nonroad equipment, model year means the calendar year in which 
the engine is installed in the new nonroad equipment (see definition of 
``new nonroad engine,'' paragraph (4)).
    (5) For an engine modified by an importer (not the original engine 
manufacturer) who has a certificate of conformity for the imported 
engine (see definition of ``new nonroad engine,'' paragraph (5)), model 
year means one of the following:
    (i) The calendar year in which the importer finishes modifying and 
labeling the engine.
    (ii) Your annual production period for producing engines if it is 
different than the calendar year; follow the guidelines in paragraph 
(1)(ii) of this definition.
    (6) For an engine you import that does not meet the criteria in 
paragraphs (1) through (5) of the definition of ``new nonroad engine,'' 
model year means the calendar year in which the manufacturer completed 
the original assembly of the engine. In general, this applies to used 
equipment that you import without conversion or major modification.
    Motor vehicle has the meaning we give in Sec. 85.1703(a) of this 
chapter. In general, motor vehicle means a self-propelled vehicle that 
can transport one or more people or any material, but doesn't include 
any of the following:
    (1) Vehicles having a maximum ground speed over level, paved 
surfaces no higher than 40 km per hour (25 miles per hour).
    (2) Vehicles that lack features usually needed for safe, practical 
use on streets or highways--for example, safety features required by 
law, a reverse gear (except for motorcycles), or a differential.
    (3) Vehicles whose operation on streets or highways would be 
unsafe, impractical, or highly unlikely. Examples are vehicles with 
tracks instead of wheels, very large size, or features associated with 
military vehicles, such as armor or weaponry.
    New nonroad engine means any of the following things:
    (1) A freshly manufactured nonroad engine for which the ultimate 
buyer has never received the equitable or legal title. The engine is no 
longer new when the ultimate buyer receives this title or the product 
is placed into service, whichever comes first.
    (2) An engine originally manufactured as a motor vehicle engine 
that is later intended to be used in a piece of nonroad equipment. The 
engine is no longer new when it is placed into nonroad service.
    (3) A nonroad engine that has been previously placed into service 
in an application we exclude under Sec. 1048.5, where that engine is 
installed in a piece of equipment for which these exclusions do not 
apply. The engine is no longer new when it is placed into nonroad 
service.
    (4) An engine not covered by paragraphs (1) through (3) of this 
definition that is intended to be installed in new nonroad equipment. 
The engine is no longer new when the ultimate buyer receives a title 
for the equipment or the product is placed into service, whichever 
comes first.
    (5) An imported nonroad engine covered by a certificate of 
conformity issued under this part, where someone other than the 
original manufacturer modifies the engine after its initial assembly 
and holds the certificate. The engine is no longer new when it is 
placed into nonroad service.
    (6) An imported nonroad engine that is not covered by a certificate 
of conformity issued under this part at the time of importation.
    New nonroad equipment means either of the following things:
    (1) A nonroad vehicle or other piece of equipment for which the 
ultimate buyer has never received the equitable or legal title. The 
product is no longer new when the ultimate buyer receives this title or 
the product is placed into service, whichever comes first.
    (2) An imported nonroad piece of equipment with an engine not 
covered by a certificate of conformity issued under this part at the 
time of importation and manufactured after the date for applying the 
requirements of this part.
    Noncompliant engine means an engine that was originally covered by 
a certificate of conformity, but is not in the certified configuration 
or otherwise does not comply with the conditions of the certificate.
    Nonconforming engine means an engine not covered by a certificate 
of conformity that would otherwise be subject to emission standards.
    Nonmethane hydrocarbon means the difference between the emitted 
mass of total hydrocarbons and the emitted mass of methane.
    Nonroad means relating to nonroad engines.
    Nonroad engine has the meaning given in Sec. 1068.25 of this 
chapter. In general this means all internal-combustion engines except 
motor vehicle engines, stationary engines, or engines used solely for 
competition. This part does not apply to all nonroad engines (see 
Sec. 1048.5).
    Off-highway motorcycle means a two-wheeled vehicle with a nonroad 
engine and a seat (excluding marine vessels and aircraft). Note: 
highway motorcycles are regulated under 40 CFR part 86.
    Oxides of nitrogen means nitric oxide (NO) and nitrogen dioxide 
(NO2). Oxides of nitrogen are expressed quantitatively as if 
the NO were in the form of NO2 (assume a molecular weight 
for oxides of nitrogen equivalent to that of NO2).
    Placed into service means used for its intended purpose.
    Propulsion marine engine means a marine engine that moves a vessel 
through the water or directs the vessel's movement.
    Rated power means the maximum power an engine produces at maximum 
test speed.
    Revoke means to discontinue the certificate for an engine family. 
If we revoke a certificate, you must apply for a new certificate before 
continuing to produce the affected vehicles or engines. This does not 
apply to vehicles or engines you no longer possess.
    Round means to round numbers according to ASTM E29-93a, which is 
incorporated by reference (see Sec. 1048.710), unless otherwise 
specified.
    Scheduled maintenance means adjusting, repairing, removing, 
disassembling, cleaning, or replacing components or systems that is 
periodically needed to keep a part from failing or malfunctioning. It 
also may mean actions you expect are necessary to correct an overt 
indication of failure or malfunction for which periodic maintenance is 
not appropriate.
    Snowmobile means a vehicle designed to operate outdoors only over 
snow-covered ground, with a maximum width of 1.5 meters or less.
    Spark-ignition means relating to a type of engine with a spark plug 
(or other sparking device) and with operating characteristics 
significantly similar to the theoretical Otto combustion cycle. Spark-
ignition engines usually use a throttle to regulate intake air flow to 
control power during normal operation.
    Stationary engine means an internal combustion engine that is 
neither a nonroad engine, nor a motor-vehicle engine, nor an engine 
used solely for competition (see the definition of nonroad engine in 
Sec. 1068.25 of this

[[Page 51207]]

chapter). In general this includes fixed engines and all portable or 
transportable engines that stay in a single site at a building, 
structure, facility, or installation for at least a full year; this 
does not include an engine installed in equipment that has the ability 
to propel itself. For year-round sources, a full year is 12 consecutive 
months. For seasonal sources, a full year is a full annual operating 
period of at least three months. A seasonal source is a site with 
engines operating only part of the year for at least two consecutive 
years. If you replace an engine with one that does the same or similar 
work in the same place, you may apply the previous engine's service to 
your calculation for residence time.
    Stoichiometry means the proportion of a mixture of air and fuel 
such that the fuel is fully oxidized with no remaining oxygen. For 
example, stoichiometric combustion in gasoline engines typically occurs 
at an air-fuel mass ratio of about 14.7.
    Suspend means to temporarily discontinue the certificate for an 
engine family. If we suspend a certificate, you may not sell vehicles 
or engines from that engine family unless we reinstate the certificate 
or approve a new one.
    Test engine means an engine in a test sample.
    Test sample means the collection of engines selected from the 
population of an engine family for emission testing.
    Total hydrocarbon means the combined mass organic compounds 
measured by our total hydrocarbon test procedure, expressed as a 
hydrocarbon with a hydrogen-to-carbon mass ratio of 1.85:1.
    Total hydrocarbon equivalent means the sum of the carbon mass 
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes, 
or other organic compounds that are measured separately as contained in 
a gas sample, expressed as petroleum-fueled engine hydrocarbons. The 
hydrogen-to-carbon ratio of the equivalent hydrocarbon is 1.85:1.
    Ultimate buyer means ultimate purchaser.
    Ultimate purchaser means, with respect to any new nonroad equipment 
or new nonroad engine, the first person who in good faith purchases 
such new nonroad equipment or new nonroad engine for purposes other 
than resale.
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
    U.S.-directed production volume means the number of engine units, 
subject to the requirements of this part, produced by a manufacturer 
for which the manufacturer has a reasonable assurance that sale was or 
will be made to ultimate buyers in the Unites States.
    Useful life means the period during which the engine is designed to 
properly function in terms of reliability and fuel consumption, without 
being remanufactured, specified as a number of hours of operation or 
calendar years. It is the period during which a new engine is required 
to comply with all applicable emission standards.
    Void means to invalidate a certificate or an exemption. If we void 
a certificate, all the vehicles produced under that engine family for 
that model year are considered noncompliant, and you are liable for 
each vehicle produced under the certificate and may face civil or 
criminal penalties or both. If we void an exemption, all the vehicles 
produced under that exemption are considered uncertified (or 
nonconforming), and you are liable for each vehicle produced under the 
exemption and may face civil or criminal penalties or both. You may not 
produce any additional vehicles using the voided exemption.
    Volatile liquid fuel means any fuel other than diesel or biodiesel 
that is a liquid at atmospheric pressure.


Sec. 1048.705  What symbols, acronyms, and abbreviations does this part 
use?

    The following symbols, acronyms, and abbreviations apply to this 
part:

 deg.C  degrees Celsius.
ASTM American Society for Testing and Materials.
cc  cubic centimeters.
CO  carbon monoxide.
CO2  carbon dioxide.
EPA  Environmental Protection Agency.
g/kW-hr  grams per kilowatt-hour.
LPG  liquefied petroleum gas.
m  meters.
mm  Hg millimeters of mercury.
NMHC  nonmethane hydrocarbons.
NOX  oxides of nitrogen (NO and NO2).
rpm  revolutions per minute.
SAE  Society of Automotive Engineers.
SI  spark-ignition.
THC  total hydrocarbon.
THCE  total hydrocarbon equivalent.
U.S.C.  United States Code.


Sec. 1048.710  What materials does this part reference?

    We have incorporated by reference the documents listed in this 
section. The Director of the Federal Register approved the 
incorporation by reference as prescribed in 5 U.S.C. 552(a) and 1 CFR 
part 51. Anyone may inspect copies at U.S. EPA, OAR, Air and Radiation 
Docket and Information Center, 401 M Street, SW, Washington, DC 20460 
or Office of the Federal Register, 800 N. Capitol St., NW, 7th Floor, 
Suite 700, Washington, DC.
    (a) ASTM material. Table 1 of Sec. 1048.710 lists material from the 
American Society for Testing and Materials that we have incorporated by 
reference. The first column lists the number and name of the material. 
The second column lists the sections of this part where we reference 
it. The second column is for information only and may not include all 
locations. Anyone may receive copies of these materials from American 
Society for Testing and Materials, 1916 Race St., Philadelphia, PA 
19103. Table 1 follows:

               Table 1 of Sec.  1048.710.--ASTM Materials
------------------------------------------------------------------------
           Document No. and name                   Part reference
------------------------------------------------------------------------
ASTM E29-93a, Standard Practice for Using   1048.240, 1048.315,
 Significant Digits in Test Data to          1048.345, 1048.410,
 Determine Conformance with Specifications.  1048.415
------------------------------------------------------------------------

    (b) ISO material. Table 2 of Sec. 1048.710 lists material from the 
International Organization for Standardization that we have 
incorporated by reference. The first column lists the number and name 
of the material. The second column lists the section of this part where 
we reference it. The second column is for information only and may not 
be all-inclusive. Anyone may receive copies of these materials from 
International Organization for Standardization, Case Postale 56, CH-
1211 Geneva 20, Switzerland. Table 2 follows:

                Table 2 of Sec.  1048.710.--ISO Materials
------------------------------------------------------------------------
           Document No. and name                 Part 1048 reference
------------------------------------------------------------------------
ISO 9141-2 February 1994, Road vehicles--   1048.110
 Diagnostic systems Part 2.
------------------------------------------------------------------------
ISO 14230-4 June 2000, Road vehicles--      1048.110
 Diagnostic systems--KWP 2000 requirements
 for emission-related systems.
------------------------------------------------------------------------

Sec. 1048.715  How should I request EPA to keep my information 
confidential?

    (a) Clearly show what you consider confidential by marking, 
circling, bracketing, stamping, or some other

[[Page 51208]]

method. We will store your confidential information as described in 40 
CFR part 2. Also, we will disclose it only as specified in 40 CFR part 
2.
    (b) If you send us a second copy without the confidential 
information, we will assume it contains nothing confidential whenever 
we need to release information from it.
    (c) If you send us information without claiming it is confidential, 
we may make it available to the public without further notice to you, 
as described in Sec. 2.204 of this chapter.


Sec. 1048.720  How do I request a public hearing?

    (a) File a request for a hearing with the Designated Officer within 
15 days of a decision to deny, suspend, revoke, or void your 
certificate. If you ask later, we may give you a hearing for good 
cause, but we do not have to.
    (b) Include the following in your request for a public hearing:
    (1) State which engine family is involved.
    (2) State the issues you intend to raise. We may limit these 
issues, as described elsewhere in this part.
    (3) Summarize the evidence supporting your position and state why 
you believe this evidence justifies granting or reinstating the 
certificate.
    (c) We will hold the hearing as described in 40 CFR part 1068, 
subpart F.

Appendix I to Part 1048--Transient Duty Cycle for Constant-Speed 
Engines

    The following table shows the transient duty-cycle for constant-
speed engines, as described in Sec. 1048.510:

------------------------------------------------------------------------
                                            Normalized      Normalized
                 Time(s)                     speed (in      torque (in
                                             percent)        percent)
------------------------------------------------------------------------
1.......................................              58               5
2.......................................              58               5
3.......................................              58               5
4.......................................              58               5
5.......................................              58               5
6.......................................              58               5
7.......................................              58               5
8.......................................              58               5
9.......................................              58               5
10......................................              58               5
11......................................              58               5
12......................................              65               8
13......................................              72               9
14......................................              79              12
15......................................              86              14
16......................................              93              16
17......................................              93              16
18......................................              93              16
19......................................              93              16
20......................................              93              16
21......................................              93              16
22......................................              93              16
23......................................              93              16
24......................................              93              31
25......................................              93              30
26......................................              93              27
27......................................              93              23
28......................................              93              24
29......................................              93              21
30......................................              93              20
31......................................              93              18
32......................................              93              16
33......................................              93              18
34......................................              93              16
35......................................              93              17
36......................................              93              20
37......................................              93              20
38......................................              93              22
39......................................              93              20
40......................................              93              17
41......................................              93              17
42......................................              93              17
43......................................              93              16
44......................................              93              18
45......................................              93              18
46......................................              93              21
47......................................              93              21
48......................................              93              18
49......................................              94              24
50......................................              93              28
51......................................              93              23
52......................................              93              19
53......................................              93              20
54......................................              93              20
55......................................              93              29
56......................................              93              23
57......................................              93              25
58......................................              93              23
59......................................              93              23
60......................................              93              23
61......................................              93              22
62......................................              93              21
63......................................              93              22
64......................................              93              30
65......................................              93              33
66......................................              93              25
67......................................              93              29
68......................................              93              27
69......................................              93              23
70......................................              93              21
71......................................              93              21
72......................................              93              19
73......................................              93              20
74......................................              93              24
75......................................              93              23
76......................................              93              21
77......................................              93              44
78......................................              93              34
79......................................              93              28
80......................................              93              37
81......................................              93              29
82......................................              93              27
83......................................              93              33
84......................................              93              28
85......................................              93              22
86......................................              96              30
87......................................              95              25
88......................................              95              17
89......................................              95              13
90......................................              95              10
91......................................              95               9
92......................................              95               8
93......................................              95               7
94......................................              95               7
95......................................              95               6
96......................................              95               6
97......................................              93              37
98......................................              93              35
99......................................              93              29
100.....................................              93              23
101.....................................              93              23
102.....................................              93              21
103.....................................              93              20
104.....................................              93              29
105.....................................              93              27
106.....................................              93              26
107.....................................              93              35
108.....................................              93              43
109.....................................              95              35
110.....................................              95              24
111.....................................              95              17
112.....................................              95              13
113.....................................              95              10
114.....................................              95               9
115.....................................              95               8
116.....................................              95               7
117.....................................              95               7
118.....................................              95               6
119.....................................              93              36
120.....................................              93              30
121.....................................              93              25
122.....................................              93              21
123.....................................              93              22
124.....................................              93              19
125.....................................              93              34
126.....................................              93              36
127.....................................              93              31
128.....................................              93              26
129.....................................              93              27
130.....................................              93              22
131.....................................              93              22
132.....................................              93              18
133.....................................              93              18
134.....................................              93              19
135.....................................              93              19
136.....................................              93              23
137.....................................              93              22
138.....................................              93              20
139.....................................              93              23
140.....................................              93              20
141.....................................              93              18
142.....................................              93              18
143.....................................              93              16
144.....................................              93              19
145.....................................              94              25
146.....................................              93              30
147.....................................              93              29
148.....................................              93              23
149.....................................              93              24
150.....................................              93              22
151.....................................              94              20
152.....................................              93              17
153.....................................              93              16
154.....................................              93              16
155.....................................              93              15
156.....................................              93              17
157.....................................              93              18
158.....................................              93              20
159.....................................              93              21
160.....................................              93              18
161.....................................              93              17
162.....................................              92              54
163.....................................              93              38
164.....................................              93              29
165.....................................              93              24
166.....................................              93              24
167.....................................              93              24
168.....................................              93              23

[[Page 51209]]

 
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212.....................................              93              34
213.....................................              93              27
214.....................................              93              26
215.....................................              93              25
216.....................................              93              22
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227.....................................              93              24
228.....................................              93              23
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230.....................................              93              21
231.....................................              93              20
232.....................................              93              20
233.....................................              93              20
234.....................................              93              22
235.....................................              93              26
236.....................................              93              22
237.....................................              93              20
238.....................................              93              18
239.....................................              93              22
240.....................................              93              20
241.....................................              94              27
242.....................................              93              22
243.....................................              93              23
244.....................................              93              21
245.....................................              93              22
246.....................................              95              22
247.....................................              95              16
248.....................................              95              12
249.....................................              95              10
250.....................................              95               9
251.....................................              95               8
252.....................................              96               7
253.....................................              95               7
254.....................................              95               6
255.....................................              92              42
256.....................................              93              36
257.....................................              93              33
258.....................................              92              60
259.....................................              93              48
260.....................................              93              36
261.....................................              93              30
262.....................................              93              28
263.....................................              93              24
264.....................................              93              24
265.....................................              93              23
266.....................................              93              23
267.....................................              93              25
268.....................................              93              27
269.....................................              93              29
270.....................................              93              26
271.....................................              93              26
272.....................................              93              21
273.....................................              93              23
274.....................................              93              23
275.....................................              94              23
276.....................................              93              40
277.....................................              94              67
278.....................................              93              46
279.....................................              93              38
280.....................................              93              29
281.....................................              93              28
282.....................................              93              27
283.....................................              93              29
284.....................................              93              28
285.....................................              94              34
286.....................................              93              31
287.....................................              93              30
288.....................................              94              42
289.....................................              93              31
290.....................................              93              29
291.....................................              93              27
292.....................................              93              23
293.....................................              93              23
294.....................................              93              20
295.....................................              93              20
296.....................................              93              23
297.....................................              93              23
298.....................................              93              24
299.....................................              93              25
300.....................................              93              20
301.....................................              93              25
302.....................................              93              23
303.....................................              93              23
304.....................................              93              24
305.....................................              93              28
306.....................................              93              23
307.....................................              93              24
308.....................................              93              34
309.....................................              93              31
310.....................................              93              35
311.....................................              93              31
312.....................................              93              32
313.....................................              93              31
314.....................................              93              30
315.....................................              93              23
316.....................................              93              23
317.....................................              93              36
318.....................................              93              32
319.....................................              93              25
320.....................................              93              31
321.....................................              93              33
322.....................................              93              31
323.....................................              93              27
324.....................................              93              24
325.....................................              93              19
326.....................................              96              21
327.....................................              96              16
328.....................................              95              12
329.....................................              95              10
330.....................................              95               8
331.....................................              95               8
332.....................................              95               7
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334.....................................              95               6
335.....................................              95               6
336.....................................              95               6
337.....................................              87               6
338.....................................              57               6
339.....................................              58               6
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351.....................................              58               6
352.....................................              95              73
353.....................................              93              65
354.....................................              93              52
355.....................................              93              38
356.....................................              93              30
357.....................................              93              31
358.....................................              93              26
359.....................................              93              21
360.....................................              93              22
361.....................................              93              26
362.....................................              93              23
363.....................................              93              19
364.....................................              93              27
365.....................................              93              42
366.....................................              93              29
367.....................................              94              25
368.....................................              94              26
369.....................................              94              29
370.....................................              93              28
371.....................................              93              23
372.....................................              93              21
373.....................................              93              26
374.....................................              93              23
375.....................................              93              20
376.....................................              94              23
377.....................................              93              18
378.....................................              93              19
379.....................................              93              23
380.....................................              93              19
381.....................................              93              16
382.....................................              93              25
383.....................................              93              22
384.....................................              93              20

[[Page 51210]]

 
385.....................................              93              25
386.....................................              94              28
387.....................................              93              23
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392.....................................              93              19
393.....................................              93              24
394.....................................              93              20
395.....................................              93              18
396.....................................              93              21
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398.....................................              96              16
399.....................................              96              12
400.....................................              95              10
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403.....................................              96               7
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405.....................................              96               6
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440.....................................              58               6
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443.....................................              93              66
444.....................................              93              48
445.....................................              93              40
446.....................................              93              34
447.....................................              93              28
448.....................................              93              23
449.....................................              93              28
450.....................................              93              27
451.....................................              93              23
452.....................................              93              19
453.....................................              93              25
454.....................................              93              24
455.....................................              93              22
456.....................................              93              31
457.....................................              93              36
458.....................................              93              28
459.....................................              93              25
460.....................................              93              35
461.....................................              93              34
462.....................................              93              29
463.....................................              93              37
464.....................................              93              36
465.....................................              93              38
466.....................................              93              31
467.....................................              93              29
468.....................................              93              34
469.....................................              93              36
470.....................................              93              34
471.....................................              93              31
472.....................................              93              26
473.....................................              93              21
474.....................................              94              16
475.....................................              96              19
476.....................................              96              15
477.....................................              95              11
478.....................................              96              10
479.....................................              95               8
480.....................................              95               7
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483.....................................              96               6
484.....................................              96               6
485.....................................              95               6
486.....................................              85               6
487.....................................              56              74
488.....................................              93              52
489.....................................              93              42
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492.....................................              93              33
493.....................................              93              38
494.....................................              93              40
495.....................................              93              29
496.....................................              93              23
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500.....................................              93              20
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502.....................................              93              16
503.....................................              93              21
504.....................................              93              23
505.....................................              93              24
506.....................................              93              22
507.....................................              93              18
508.....................................              93              21
509.....................................              95              18
510.....................................              95              20
511.....................................              95              15
512.....................................              96              11
513.....................................              95              10
514.....................................              96               8
515.....................................              95               7
516.....................................              95               7
517.....................................              95               7
518.....................................              95               6
519.....................................              96               6
520.....................................              96               6
521.....................................              83               6
522.....................................              56               6
523.....................................              58               6
524.....................................              72              54
525.....................................              94              51
526.....................................              93              42
527.....................................              93              42
528.....................................              93              31
529.....................................              93              25
530.....................................              93              21
531.....................................              93              17
532.....................................              93              15
533.....................................              93              15
534.....................................              93              16
535.....................................              93              15
536.....................................              93              14
537.....................................              93              15
538.....................................              93              16
539.....................................              94              15
540.....................................              93              45
541.....................................              93              45
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543.....................................              93              33
544.....................................              93              26
545.....................................              93              21
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547.....................................              93              17
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551.....................................              93              14
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557.....................................              93              14
558.....................................              93              13
559.....................................              93              14
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561.....................................              93              15
562.....................................              93              17
563.....................................              93              17
564.....................................              93              22
565.....................................              93              22
566.....................................              93              19
567.....................................              93              19
568.....................................              93              20
569.....................................              93              18
570.....................................              93              20
571.....................................              93              20
572.....................................              93              42
573.....................................              93              32
574.....................................              93              25
575.....................................              93              26
576.....................................              93              23
577.....................................              93              21
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579.....................................              93              19
580.....................................              93              21
581.....................................              93              20
582.....................................              93              20
583.....................................              93              20
584.....................................              93              18
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594.....................................              93              16
595.....................................              93              16
596.....................................              93              15
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598.....................................              93              19
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600.....................................              93              45

[[Page 51211]]

 
601.....................................              95              39
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681.....................................              98              11
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689.....................................              98               5
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691.....................................              49               5
692.....................................              78              48
693.....................................              95              37
694.....................................              95              31
695.....................................              94              32
696.....................................              94              34
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698.....................................              95              25
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700.....................................              95              28
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707.....................................              95              25
708.....................................              95              26
709.....................................              95              25
710.....................................              95              23
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712.....................................              95              23
713.....................................              95              20
714.....................................              95              18
715.....................................              94              22
716.....................................              95              19
717.....................................              95              23
718.....................................              95              27
719.....................................              95              26
720.....................................              95              23
721.....................................              95              20
722.....................................              99              23
723.....................................              98              20
724.....................................              98              14
725.....................................              98              11
726.....................................              98               9
727.....................................              98               8
728.....................................              98               7
729.....................................              98               6
730.....................................              98               6
731.....................................              98               6
732.....................................              98               5
733.....................................              98               5
734.....................................              73               6
735.....................................              49               5
736.....................................              50              77
737.....................................              95              39
738.....................................              95              30
739.....................................              95              28
740.....................................              94              31
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762.....................................              95              21
763.....................................              95              28
764.....................................              94              39
765.....................................              95              32
766.....................................              95              24
767.....................................              95              19
768.....................................              98              20
769.....................................              98              17
770.....................................              98              12
771.....................................              98              10
772.....................................              98               8
773.....................................              98               7
774.....................................              98               6
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776.....................................              95              61
777.....................................              94              51
778.....................................              95              40
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783.....................................              94              19
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788.....................................              94              20
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790.....................................              94              22
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815.....................................              95              19
816.....................................              95              16

[[Page 51212]]

 
817.....................................              95              14
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824.....................................              95              17
825.....................................              95              19
826.....................................              95              19
827.....................................              95              19
828.....................................              94              19
829.....................................              94              21
830.....................................              94              19
831.....................................              94              17
832.....................................              94              18
833.....................................              94              21
834.....................................              94              19
835.....................................              95              18
836.....................................              95              19
837.....................................              95              17
838.....................................              94              15
839.....................................              94              17
840.....................................              95              19
841.....................................              94              22
842.....................................              94              21
843.....................................              94              18
844.....................................              94              16
845.....................................              95              14
846.....................................              95              14
847.....................................              94              19
848.....................................              95              20
849.....................................              95              23
850.....................................              98              23
851.....................................              98              22
852.....................................              98              16
853.....................................              98              12
854.....................................              98               9
855.....................................              98               8
856.....................................              98               7
857.....................................              98               6
858.....................................              98               6
859.....................................              98               6
860.....................................              98               5
861.....................................              98               5
862.....................................              80               5
863.....................................              49               5
864.....................................              51               5
865.....................................              51               5
866.....................................              51               6
867.....................................              51               6
868.....................................              51               6
869.....................................              51               6
870.....................................              51               5
871.....................................              51               6
872.....................................              51               7
873.....................................              96              45
874.....................................              94              44
875.....................................              94              34
876.....................................              94              41
877.....................................              95              44
878.....................................              94              32
879.....................................              95              26
880.....................................              94              20
881.....................................              95              29
882.....................................              95              27
883.....................................              95              21
884.....................................              95              34
885.....................................              95              31
886.....................................              94              26
887.....................................              95              22
888.....................................              95              23
889.....................................              95              19
890.....................................              94              18
891.....................................              94              20
892.....................................              94              26
893.....................................              95              29
894.....................................              94              32
895.....................................              95              26
896.....................................              95              34
897.....................................              95              30
898.....................................              95              24
899.....................................              95              19
900.....................................              94              17
901.....................................              94              16
902.....................................              98              19
903.....................................              98              17
904.....................................              98              12
905.....................................              98              10
906.....................................              98               8
907.....................................              98               7
908.....................................              98               6
909.....................................              98               6
910.....................................              98               6
911.....................................              98               5
                  912...................              98               5
913.....................................              98               5
914.....................................              69               5
915.....................................              49               5
916.....................................              51               5
917.....................................              51               6
918.....................................              51               6
919.....................................              69              75
920.....................................              95              70
921.....................................              95              57
922.....................................              94              49
923.....................................              94              38
924.....................................              95              43
925.....................................              94              51
926.....................................              94              41
927.....................................              98              42
928.....................................              95              89
929.....................................              95              66
930.....................................              94              52
931.....................................              95              41
932.....................................              95              34
933.....................................              95              34
934.....................................              94              30
935.....................................              94              30
936.....................................              95              29
937.....................................              94              28
938.....................................              95              24
939.....................................              94              34
940.....................................              95              26
941.....................................              94              36
942.....................................              95              27
943.....................................              95              25
944.....................................              95              26
945.....................................              94              21
946.....................................              94              19
947.....................................              98              21
948.....................................              93              53
949.....................................              94              45
950.....................................              94              35
951.....................................              95              28
952.....................................              95              23
953.....................................              95              20
954.....................................              95              17
955.....................................              94              19
956.....................................              94              18
957.....................................              94              18
958.....................................              94              18
959.....................................              94              19
960.....................................              97              17
961.....................................              98              19
962.....................................              98              14
963.....................................              98              11
964.....................................              98               9
965.....................................              98               7
966.....................................              98               7
967.....................................              98               6
968.....................................              98               6
969.....................................              98               6
970.....................................              98               5
971.....................................              98               5
972.....................................              82               5
973.....................................              49               5
974.....................................              51               6
975.....................................              51               6
976.....................................              51               6
977.....................................              51               5
978.....................................              51               6
979.....................................              72              58
980.....................................              94              36
981.....................................              95              28
982.....................................              95              24
983.....................................              95              25
984.....................................              95              26
985.....................................              94              30
986.....................................              94              26
987.....................................              95              34
988.....................................              95              57
989.....................................              95              45
990.....................................              94              37
991.....................................              95              34
992.....................................              95              27
993.....................................              95              27
994.....................................              95              29
995.....................................              98              22
996.....................................              94              84
997.....................................              94              74
998.....................................              95              62
999.....................................              94              51
1000....................................              95              50
1001....................................              95              81
1002....................................              94              65
1003....................................              95              49
1004....................................              94              56
1005....................................              95              65
1006....................................              94              59
1007....................................              99              58
1008....................................              98              41
1009....................................              98              27
1010....................................              98              19
1011....................................              98              13
1012....................................              98              11
1013....................................              98               9
1014....................................              98               8
1015....................................              98               7
1016....................................              98               6
1017....................................              98               6
1018....................................              98               6
1019....................................              71               6
1020....................................              49               5
1021....................................              51               6
1022....................................              51               6
1023....................................              51               6
1024....................................              51               6
1025....................................              51               6
1026....................................              51               6
1027....................................              51               6
1028....................................              51               6
1029....................................              51               6
1030....................................              51               6
1031....................................              51               5
1032....................................              51               6

[[Page 51213]]

 
1033....................................              51               5
1034....................................              51               6
1035....................................              51               6
1036....................................              51               6
1037....................................              51               5
1038....................................              51               5
1039....................................              51               6
1040....................................              51               6
1041....................................              69              59
1042....................................              94              48
1043....................................              95              34
1044....................................              95              29
1045....................................              95              26
1046....................................              94              27
1047....................................              95              31
1048....................................              95              26
1049....................................              95              34
1050....................................              95              29
1051....................................              95              31
1052....................................              95              29
1053....................................              95              35
1054....................................              95              38
1055....................................              94              41
1056....................................              95              28
1057....................................              95              36
1058....................................              94              30
1059....................................              94              26
1060....................................              94              33
1061....................................              95              34
1062....................................              95              27
1063....................................              98              26
1064....................................              98              19
1065....................................              98              13
1066....................................              98              11
1067....................................              98               9
1068....................................              98               7
1069....................................              98               7
1070....................................              98               6
1071....................................              98               6
1072....................................              98               6
1073....................................              98               5
1074....................................              89               6
1075....................................              49               5
1076....................................              51               6
1077....................................              51               6
1078....................................              51               6
1079....................................              51               6
1080....................................              51               6
1081....................................              51               6
1082....................................              51               6
1083....................................              50               6
1084....................................              51               6
1085....................................              51               6
1086....................................              51               6
1087....................................              51               6
1088....................................              51               6
1089....................................              51               6
1090....................................              51               6
1091....................................              56              74
1092....................................              95              56
1093....................................              94              49
1094....................................              95              47
1095....................................              94              43
1096....................................              94              33
1097....................................              95              50
1098....................................              94              40
1099....................................              95              33
1100....................................              95              24
1101....................................              94              22
1102....................................              94              22
1103....................................              94              25
1104....................................              95              27
1105....................................              95              32
1106....................................              94              29
1107....................................              94              26
1108....................................              94              26
1109....................................              94              24
1110....................................              98              52
1111....................................              94              41
1112....................................              99              35
1113....................................              95              58
1114....................................              95              58
1115....................................              98              57
1116....................................              98              38
1117....................................              98              26
1118....................................              93              63
1119....................................              94              59
1120....................................              98             100
1121....................................              94              73
1122....................................              98              53
1123....................................              94              76
1124....................................              95              61
1125....................................              94              49
1126....................................              94              37
1127....................................              97              50
1128....................................              98              36
1129....................................              98              25
1130....................................              98              18
1131....................................              98              12
1132....................................              98              10
1133....................................              98               8
1134....................................              98               7
1135....................................              98               7
1136....................................              98               6
1137....................................              98               6
1138....................................              98               6
1139....................................              80               6
1140....................................              49               6
1141....................................              78              61
1142....................................              95              50
1143....................................              94              43
1144....................................              94              42
1145....................................              94              31
1146....................................              95              30
1147....................................              95              34
1148....................................              95              28
1149....................................              95              27
1150....................................              94              27
1151....................................              95              31
1152....................................              95              42
1153....................................              94              41
1154....................................              95              37
1155....................................              95              43
1156....................................              95              34
1157....................................              95              31
1158....................................              95              27
1159....................................              95              23
1160....................................              95              27
1161....................................              96              38
1162....................................              95              40
1163....................................              95              39
1164....................................              95              26
1165....................................              95              33
1166....................................              94              28
1167....................................              94              34
1168....................................              98              73
1169....................................              95              49
1170....................................              95              51
1171....................................              94              55
1172....................................              95              48
1173....................................              95              35
1174....................................              95              39
1175....................................              95              39
1176....................................              94              41
1177....................................              95              30
1178....................................              95              23
1179....................................              94              19
1180....................................              95              25
1181....................................              94              29
1182....................................              98              27
1183....................................              95              89
1184....................................              95              74
1185....................................              94              60
1186....................................              94              48
1187....................................              94              41
1188....................................              94              29
1189....................................              94              24
1190....................................              95              19
1191....................................              94              21
1192....................................              95              29
1193....................................              95              28
1194....................................              95              27
1195....................................              94              23
1196....................................              95              25
1197....................................              95              26
1198....................................              94              22
1199....................................              95              19
1200....................................              94              17
------------------------------------------------------------------------

Appendix II to Part 1048--Transient Duty Cycle for Engines That Are 
Not Constant-Speed Engines

    The following table shows the transient duty-cycle for engines 
that are not constant-speed engines, as described in Sec. 1048.510:


------------------------------------------------------------------------
                                            Normalized      Normalized
                 Time(s)                    speed  (in      torque  (in
                                             percent)        percent)
------------------------------------------------------------------------
0.......................................               0               0
1.......................................               0               0
2.......................................               0               0
3.......................................               0               0
4.......................................               0               0
5.......................................               0               0
6.......................................               0               0
7.......................................               0               0
8.......................................               0               0
9.......................................               1               8
10......................................               6              54
11......................................               8              61
12......................................              34              59
13......................................              22              46
14......................................               5              51
15......................................              18              51
16......................................              31              50
17......................................              30              56
18......................................              31              49
19......................................              25              66
20......................................              58              55
21......................................              43              31
22......................................              16              45
23......................................              24              38
24......................................              24              27
25......................................              30              33
26......................................              45              65
27......................................              50              49
28......................................              23              42
29......................................              13              42
30......................................               9              45
31......................................              23              30
32......................................              37              45
33......................................              44              50

[[Page 51214]]

 
34......................................              49              52
35......................................              55              49
36......................................              61              46
37......................................              66              38
38......................................              42              33
39......................................              17              41
40......................................              17              37
41......................................               7              50
42......................................              20              32
43......................................               5              55
44......................................              30              42
45......................................              44              53
46......................................              45              56
47......................................              41              52
48......................................              24              41
49......................................              15              40
50......................................              11              44
51......................................              32              31
52......................................              38              54
53......................................              38              47
54......................................               9              55
55......................................              10              50
56......................................              33              55
57......................................              48              56
58......................................              49              47
59......................................              33              44
60......................................              52              43
61......................................              55              43
62......................................              59              38
63......................................              44              28
64......................................              24              37
65......................................              12              44
66......................................               9              47
67......................................              12              52
68......................................              34              21
69......................................              29              44
70......................................              44              54
71......................................              54              62
72......................................              62              57
73......................................              72              56
74......................................              88              71
75......................................             100              69
76......................................             100              34
77......................................             100              42
78......................................             100              54
79......................................             100              58
80......................................             100              38
81......................................              83              17
82......................................              61              15
83......................................              43              22
84......................................              24              35
85......................................              16              39
86......................................              15              45
87......................................              32              34
88......................................              14              42
89......................................               8              48
90......................................               5              51
91......................................              10              41
92......................................              12              37
93......................................               4              47
94......................................               3              49
95......................................               3              50
96......................................               4              49
97......................................               4              48
98......................................               8              43
99......................................               2              51
100.....................................               5              46
101.....................................               8              41
102.....................................               4              47
103.....................................               3              49
104.....................................               6              45
105.....................................               3              48
106.....................................              10              42
107.....................................              18              27
108.....................................               3              50
109.....................................              11              41
110.....................................              34              29
111.....................................              51              57
112.....................................              67              63
113.....................................              61              32
114.....................................              44              31
115.....................................              48              54
116.....................................              69              65
117.....................................              85              65
118.....................................              81              29
119.....................................              74              21
120.....................................              62              23
121.....................................              76              58
122.....................................              96              75
123.....................................             100              77
124.....................................             100              27
125.....................................             100              79
126.....................................             100              79
127.....................................             100              81
128.....................................             100              57
129.....................................              99              52
130.....................................              81              35
131.....................................              69              29
132.....................................              47              22
133.....................................              34              28
134.....................................              27              37
135.....................................              83              60
136.....................................             100              74
137.....................................             100               7
138.....................................             100               2
139.....................................              70              18
140.....................................              23              39
141.....................................               5              54
142.....................................              11              40
143.....................................              11              34
144.....................................              11              41
145.....................................              19              25
146.....................................              16              32
147.....................................              20              31
148.....................................              21              38
149.....................................              21              42
150.....................................               9              51
151.....................................               4              49
152.....................................               2              51
153.....................................               1              58
154.....................................              21              57
155.....................................              29              47
156.....................................              33              45
157.....................................              16              49
158.....................................              38              45
159.....................................              37              43
160.....................................              35              42
161.....................................              39              43
162.....................................              51              49
163.....................................              59              55
164.....................................              65              54
165.....................................              76              62
166.....................................              84              59
167.....................................              83              29
168.....................................              67              35
169.....................................              84              54
170.....................................              90              58
171.....................................              93              43
172.....................................              90              29
173.....................................              66              19
174.....................................              52              16
175.....................................              49              17
176.....................................              56              38
177.....................................              73              71
178.....................................              86              80
179.....................................              96              75
180.....................................              89              27
181.....................................              66              17
182.....................................              50              18
183.....................................              36              25
184.....................................              36              24
185.....................................              38              40
186.....................................              40              50
187.....................................              27              48
188.....................................              19              48
189.....................................              23              50
190.....................................              19              45
191.....................................               6              51
192.....................................              24              48
193.....................................              49              67
194.....................................              47              49
195.....................................              22              44
196.....................................              25              40
197.....................................              38              54
198.....................................              43              55
199.....................................              40              52
200.....................................              14              49
201.....................................              11              45
202.....................................               7              48
203.....................................              26              41
204.....................................              41              59
205.....................................              53              60
206.....................................              44              54
207.....................................              22              40
208.....................................              24              41
209.....................................              32              53
210.....................................              44              74
211.....................................              57              25
212.....................................              22              49
213.....................................              29              45
214.....................................              19              37
215.....................................              14              43
216.....................................              36              40
217.....................................              43              63
218.....................................              42              49
219.....................................              15              50
220.....................................              19              44
221.....................................              47              59
222.....................................              67              80
223.....................................              76              74
224.....................................              87              66
225.....................................              98              61
226.....................................             100              38
227.....................................              97              27
228.....................................             100              53
229.....................................             100              72
230.....................................             100              49
231.....................................             100               4
232.....................................             100              13
233.....................................              87              15
234.....................................              53              26
235.....................................              33              27
236.....................................              39              19
237.....................................              51              33
238.....................................              67              54
239.....................................              83              60
240.....................................              95              52
241.....................................             100              50
242.....................................             100              36
243.....................................             100              25
244.....................................              85              16
245.....................................              62              16
246.....................................              40              26
247.....................................              56              39
248.....................................              81              75
249.....................................              98              86

[[Page 51215]]

 
250.....................................             100              76
251.....................................             100              51
252.....................................             100              78
253.....................................             100              83
254.....................................             100             100
255.....................................             100              66
256.....................................             100              85
257.....................................             100              72
258.....................................             100              45
259.....................................              98              58
260.....................................              60              30
261.....................................              43              32
262.....................................              71              36
263.....................................              44              32
264.....................................              24              38
265.....................................              42              17
266.....................................              22              51
267.....................................              13              53
268.....................................              23              45
269.....................................              29              50
270.....................................              28              42
271.....................................              21              55
272.....................................              34              57
273.....................................              44              47
274.....................................              19              46
275.....................................              13              44
276.....................................              25              36
277.....................................              43              51
278.....................................              55              73
279.....................................              68              72
280.....................................              76              63
281.....................................              80              45
282.....................................              83              40
283.....................................              78              26
284.....................................              60              20
285.....................................              47              19
286.....................................              52              25
287.....................................              36              30
288.....................................              40              26
289.....................................              45              34
290.....................................              47              35
291.....................................              42              28
292.....................................              46              38
293.....................................              48              44
294.....................................              68              61
295.....................................              70              47
296.....................................              48              28
297.....................................              42              22
298.....................................              31              29
299.....................................              22              35
300.....................................              28              28
301.....................................              46              46
302.....................................              62              69
303.....................................              76              81
304.....................................              88              85
305.....................................              98              81
306.....................................             100              74
307.....................................             100              13
308.....................................             100              11
309.....................................             100              17
310.....................................              99               3
311.....................................              80               7
312.....................................              62              11
313.....................................              63              11
314.....................................              64              16
315.....................................              69              43
316.....................................              81              67
317.....................................              93              74
318.....................................             100              72
319.....................................              94              27
320.....................................              73              15
321.....................................              40              33
322.....................................              40              52
323.....................................              50              50
324.....................................              11              53
325.....................................              12              45
326.....................................               5              50
327.....................................               1              55
328.....................................               7              55
329.....................................              62              60
330.....................................              80              28
331.....................................              23              37
332.....................................              39              58
333.....................................              47              24
334.....................................              59              51
335.....................................              58              68
336.....................................              36              52
337.....................................              18              42
338.....................................              36              52
339.....................................              59              73
340.....................................              72              85
341.....................................              85              92
342.....................................              99              90
343.....................................             100              72
344.....................................             100              18
345.....................................             100              76
346.....................................             100              64
347.....................................             100              87
348.....................................             100              97
349.....................................             100              84
350.....................................             100             100
351.....................................             100              91
352.....................................             100              83
353.....................................             100              93
354.....................................             100             100
355.....................................              94              43
356.....................................              72              10
357.....................................              77               3
358.....................................              48               2
359.....................................              29               5
360.....................................              59              19
361.....................................              63               5
362.....................................              35               2
363.....................................              24               3
364.....................................              28               2
365.....................................              36              16
366.....................................              54              23
367.....................................              60              10
368.....................................              33               1
369.....................................              23               0
370.....................................              16               0
371.....................................              11               0
372.....................................              20               0
373.....................................              25               2
374.....................................              40               3
375.....................................              33               4
376.....................................              34               5
377.....................................              46               7
378.....................................              57              10
379.....................................              66              11
380.....................................              75              14
381.....................................              79              11
382.....................................              80              16
383.....................................              92              21
384.....................................              99              16
385.....................................              83               2
386.....................................              71               2
387.....................................              69               4
388.....................................              67               4
389.....................................              74              16
390.....................................              86              25
391.....................................              97              28
392.....................................             100              15
393.....................................              83               2
394.....................................              62               4
395.....................................              40               6
396.....................................              49              10
397.....................................              36               5
398.....................................              27               4
399.....................................              29               3
400.....................................              22               2
401.....................................              13               3
402.....................................              37              36
403.....................................              90              26
404.....................................              41               2
405.....................................              25               2
406.....................................              29               2
407.....................................              38               7
408.....................................              50              13
409.....................................              55              10
410.....................................              29               3
411.....................................              24               7
412.....................................              51              16
413.....................................              62              15
414.....................................              72              35
415.....................................              91              74
416.....................................             100              73
417.....................................             100               8
418.....................................              98              11
419.....................................             100              59
420.....................................             100              98
421.....................................             100              99
422.....................................             100              75
423.....................................             100              95
424.....................................             100             100
425.....................................             100              97
426.....................................             100              90
427.....................................             100              86
428.....................................             100              82
429.....................................              97              43
430.....................................              70              16
431.....................................              50              20
432.....................................              42              33
433.....................................              89              64
434.....................................              89              77
435.....................................              99              95
436.....................................             100              41
437.....................................              77              12
438.....................................              29              37
439.....................................              16              41
440.....................................              16              38
441.....................................              15              36
442.....................................              18              44
443.....................................               4              55
444.....................................              24              26
445.....................................              26              35
446.....................................              15              45
447.....................................              21              39
448.....................................              29              52
449.....................................              26              46
450.....................................              27              50
451.....................................              13              43
452.....................................              25              36
453.....................................              37              57
454.....................................              29              46
455.....................................              17              39
456.....................................              13              41
457.....................................              19              38
458.....................................              28              35
459.....................................               8              51
460.....................................              14              36
461.....................................              17              47
462.....................................              34              39
463.....................................              34              57
464.....................................              11              70
465.....................................              13              51

[[Page 51216]]

 
466.....................................              13              68
467.....................................              38              44
468.....................................              53              67
469.....................................              29              69
470.....................................              19              65
471.....................................              52              45
472.....................................              61              79
473.....................................              29              70
474.....................................              15              53
475.....................................              15              60
476.....................................              52              40
477.....................................              50              61
478.....................................              13              74
479.....................................              46              51
480.....................................              60              73
481.....................................              33              84
482.....................................              31              63
483.....................................              41              42
484.....................................              26              69
485.....................................              23              65
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------------------------------------------------------------------------

PART 1051--CONTROL OF EMISSIONS FROM RECREATIONAL ENGINES AND 
VEHICLES

Subpart A--Determining How To Follow This Part
Sec.
1051.1   Does this part apply to me?
1051.5   May I exclude any vehicles from this part's requirements?
1051.10   What main steps must I take to comply with this part?
1051.15   Do any other regulation parts affect me?
1051.20   May I certify a recreational engine instead of the 
vehicle?
Subpart B--Emission Standards and Related Requirements
1051.100   What exhaust emission standards must my vehicles meet?
1051.101   What are the exhaust emission standards for snowmobiles?
1051.102   What are the exhaust emission standards for off-highway 
motorcycles?
1051.103   What are the exhaust emission standards for all-terrain 
vehicles (ATVs)?
1051.115   What other requirements must my vehicles meet?
1051.120   What warranty requirements apply to me?
1051.125   What maintenance instructions must I give to buyers?
1051.130   What installation instructions must I give to vehicle 
manufacturers?
1051.135   How must I label and identify the vehicles and engines I 
produce?
1051.145   What provisions apply only for a limited time?
Subpart C--Certifying Engine Families
1051.201   What are the general requirements for submitting a 
certification application?
1051.205   How must I prepare my application?
1051.210   May I get preliminary approval before I complete my 
application?
1051.215   What happens after I complete my application?
1051.220   How do I amend the maintenance instructions in my 
application?
1051.225   How do I amend my application to include new or modified 
vehicles?
1051.230   How do I select engine families?
1051.235   How does testing fit with my application for a 
certificate of conformity?
1051.240   How do I determine if my engine family complies with 
emission standards?
1051.245   What records must I keep and make available to EPA?
1051.250   When may EPA deny, revoke, or void my certificate of 
conformity?
Subpart D--Testing Production-line Engines
1051.301  When must I test my production-line vehicles or engines?
1051.305   How must I prepare and test my production-line vehicles 
or engines?
1051.310   How must I select vehicles or engines for production-line 
testing?
1051.315   How do I know when my engine family does not comply?
1051.320   What happens if one of my production-line vehicles or 
engines fails to meet emission standards?
1051.325   What happens if an engine family does not comply?
1051.330   May I sell vehicles from an engine family with a 
suspended certificate of conformity?
1051.335   How do I ask EPA to reinstate my suspended certificate?
1051.340   When may EPA revoke my certificate under this subpart and 
how may I sell these vehicles again?
1051.345   What production-line testing records must I send to EPA?
1051.350   What records must I keep?
Subpart E--Testing In-use Engines
1051.401   What provisions apply for in-use testing of my vehicles 
or engines?
Subpart F--Test Procedures
1051.501   What procedures must I use to test my vehicles or 
engines?
1051.505   What special provisions apply for testing snowmobiles?
1051.520   How do I perform durability testing?
Subpart G--Compliance Provisions
1051.601   What compliance provisions apply to these vehicles?
1051.605   What are the provisions for exempting vehicles from the 
requirements of this part if they use engines you have certified 
under the motor-vehicle program or the Large Spark-ignition (SI) 
program?
1051.610  What are the provisions for producing recreational 
vehicles with engines already certified under the motor-vehicle 
program or the Large SI program?
1051.615  What are the special provisions for certifying small 
recreational engines?
1051.620  When may a manufacturer introduce into commerce an 
uncertified

[[Page 51220]]

recreational vehicle to be used for competition?
1051.625  What special provisions apply to unique snowmobile 
designs?
Subpart H--Averaging, Banking, and Trading for Certification
1051.701  General provisions.
1051.705  How do I average emission levels?
1051.710  How do I generate and bank emission credits?
1051.715  How do I trade emission credits?
1051.720  How do I calculate my average emission level or emission 
credits?
1051.725  What information must I retain?
1051.730  What information must I report?
Subpart I--Definitions and Other Reference Information
1051.801  What definitions apply to this part?
1051.805  What symbols, acronyms, and abbreviations does this part 
use?
1051.810  What materials does this part reference?
1051.815  How should I request EPA to keep my information 
confidential?
1051.820  How do I request a public hearing?

    Authority: 42 U.S.C. 7401-7671(q).

Subpart A--Determining How To Follow This Part


Sec. 1051.1  Does this part apply to me?

    (a) This part applies to you if you manufacture or import any of 
the following recreational vehicles or engines used in them, unless we 
exclude them under Sec. 1051.5 or exempt them under Sec. 1051.620:
    (1) Snowmobiles.
    (2) Off-highway motorcycles.
    (3) All-terrain vehicles (ATVs).
    (b) Note in subpart G of this part that 40 CFR part 1068 applies to 
everyone, including anyone who manufactures, installs, owns, operates, 
or rebuilds any of the vehicles or engines this part covers.
    (c) You need not follow this part for vehicles you produce before 
the 2006 model year, unless you certify voluntarily. See Sec. 1051.101, 
Sec. 1051.145, and the definition of model year in Sec. 1051.801 for 
more information about the timing of new requirements.
    (d) See Secs. 1051.801 and 1051.805 for definitions and acronyms 
that apply to this part.


Sec. 1051.5  May I exclude any vehicles from this part's requirements?

    (a) You may exclude vehicles with compression-ignition engines. See 
40 CFR part 89 for regulations that cover these engines.
    (b) See subpart G of this part and 40 CFR part 1068, subpart C, for 
exemptions of specific engines.
    (c) We may require you to label an engine or vehicle (or both) if 
this section excludes it and other requirements in this chapter do not 
apply.
    (d) Send the Designated Officer a written request with supporting 
documentation if you want us to determine whether this part covers or 
excludes certain vehicles. Excluding engines from this part's 
requirements does not affect other requirements that may apply to them.


Sec. 1051.10  What main steps must I take to comply with this part?

    (a) You must get a certificate of conformity from us for each 
engine family before do any of the following things with a new vehicle 
or new engine covered by this part: sell, offer for sale, introduce 
into commerce, distribute or deliver for introduction into commerce, or 
import it into the United States. ``New'' vehicles or engines may 
include some already placed in service (see the definition of ``new'' 
in Sec. 1051.801). You must get a new certificate of conformity for 
each new model year.
    (b) To get a certificate of conformity and comply with its terms, 
you must do four things:
    (1) Meet the emission standards and other requirements in subpart B 
of this part.
    (2) Apply for certification (see subpart C of this part).
    (3) Do routine emission testing on production vehicles or engines 
(see subpart D of this part).
    (4) Follow our instructions throughout this part.
    (c) Subpart F of this part and 40 CFR parts 86 and 1065 describe 
how you must test your vehicles or engines. Subpart F of this part 
describes when you may test the engine alone instead of the entire 
vehicle.
    (d) Subpart G of this part and 40 CFR part 1068 describe 
requirements and prohibitions that apply to manufacturers, owners, 
operators, rebuilders, and all others. They also describe exemptions 
available for special circumstances.


Sec. 1051.15  Do any other regulation parts affect me?

    (a) Parts 86 and 1065 of this chapter describe procedures and 
equipment specifications for testing vehicles and engines. Subpart F of 
this part describes how to apply part 86 or 1065 of this chapter to 
show you meet the emission standards in this part.
    (b) Part 1068 of this chapter describes general provisions, 
including these seven areas:
    (1) Prohibited acts and penalties for manufacturers and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exemptions for certain vehicles and engines.
    (4) Importing vehicles and engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for public hearings.
    (c) Other parts of this chapter affect you if referenced in this 
part.


Sec. 1051.20  May I certify a recreational engine instead of the 
vehicle?

    (a) You may certify engines sold separately from vehicles in either 
of two cases:
    (1) If you manufacture recreational engines but not recreational 
vehicles, you may ask to certify the engine alone. In your request, 
explain why you cannot certify the entire vehicle.
    (2) If you manufacture complete recreational vehicles containing 
engines you also sell separately, you may ask to certify all these 
engines in a single engine family or in separate engine families.
    (b) If you certify an engine under this section, you must use the 
test procedures in subpart F of this part. If the test procedures 
require chassis testing, use good engineering judgment to install the 
engine in an appropriate vehicle for measuring emissions.
    (c) If we allow you to certify recreational engines, we may tell 
you how to ensure the engine will comply with emission standards after 
it is in a vehicle. If we do not tell you what to do, use good 
engineering judgment to ensure that the engine will meet standards 
after installation. You must comply with Sec. 1051.130.
    (d) Do not use the provisions of this section to circumvent or 
reduce the stringency of this part's standards or other requirements.

Subpart B--Emission Standards and Related Requirements


Sec. 1051.100  What exhaust emission standards must my vehicles meet?

    Your vehicles must meet the following exhaust emission standards:
    (a) For snowmobiles, see Sec. 1051.101.
    (b) For off-highway motorcycles, see Sec. 1051.102.
    (c) For all-terrain vehicles, see Sec. 1051.103.
    (d) Apply this subpart to all testing, including production-line 
and in-use testing, as described in subparts D and E of this part.


Sec. 1051.101  What are the exhaust emission standards for snowmobiles?

    (a) Apply the exhaust emission standards in this section by model 
year while measuring emissions with snowmobile test procedures in 
subpart F of this part.

[[Page 51221]]

    (b) Follow Table 1 of this section for exhaust emission standards. 
You may use the averaging, banking, and trading provisions of subpart H 
of this part to show compliance with these standards. Table 1 also 
shows the maximum value you may specify for a Family Emission Limit, as 
follows:

                Table 1 of Sec.  1051.101.--Exhaust Emission Standards for Snowmobiles (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                        Emission standards           Maximum allowable family
                                                ---------------------------------         emission limits
               Phase--Model year                                                 -------------------------------
                                                       HC               CO              HC              CO
----------------------------------------------------------------------------------------------------------------
Phase 1--2007-2009.............................             100             275              150             400
----------------------------------------------------------------------------------------------------------------
Phase 2--2010 and later........................              75             200              150             400
----------------------------------------------------------------------------------------------------------------

    (c) You may also follow the voluntary standards in Table 2 of this 
section while measuring emissions with the test procedures in subpart F 
of this part. If you certify snowmobiles under this paragraph (c), you 
must meet the emission standards and all testing and reporting 
requirements. Table 2 follows:

  Table 2 of Sec.  1051.101.--Voluntary Exhaust Emission Standards for
                         Snowmobiles (g/kW-hr)
------------------------------------------------------------------------
                                                   Emission standards
                  Model year                   -------------------------
                                                     HC           CO
------------------------------------------------------------------------
2002-2009.....................................           75          200
------------------------------------------------------------------------
2002 and later................................           45          120
------------------------------------------------------------------------

    (d) Apply the exhaust emission standards in this section for 
snowmobiles using all fuels. You must meet the numerical emission 
standards for hydrocarbons in this section based on the following types 
of hydrocarbon emissions for snowmobiles powered by the following 
fuels:
    (1) Gasoline- and LPG-fueled snowmobiles: THC emissions.
    (2) Natural gas-fueled snowmobiles: NMHC emissions.
    (3) Alcohol-fueled snowmobiles: THCE emissions.
    (e) You must show in your certification application that your 
snowmobiles meet emission standards over their full useful life. The 
minimum useful life is 300 hours of operation or five years, whichever 
comes first. Specify a longer useful life under either of two 
conditions:
    (1) If you design, advertise, or market your snowmobile to operate 
longer than the minimum useful life (your recommended time until 
rebuild may indicate a longer design life).
    (2) If your basic mechanical warranty is longer than the minimum 
useful life.
    (f) Refer to Sec. 1051.240 to apply deterioration factors.


Sec. 1051.102  What are the exhaust emission standards for off-highway 
motorcycles?

    (a) Apply the exhaust emission standards in this section by model 
year while measuring emissions with off-highway motorcycle test 
procedures in subpart F of this part.
    (b) Follow Table 1 of this section for exhaust emission standards. 
You may use the averaging, banking, and trading provisions of subpart H 
of this part to show compliance with these HC+NOX standards. 
The phase-in percentages in the following table specify the percentage 
of your production that must comply with the emission standards for 
those model years:

            Table 1 of Sec.  1051.102.--Exhaust Emission Standards for Off-Highway Motorcycles (g/km)
----------------------------------------------------------------------------------------------------------------
                                                                        Emission standards            Maximum
                                                                 --------------------------------    allowable
                                                                                                      family
                      Model year--phase-in                                                           emission
                                                                      HC+NOX            CO            limits
                                                                                                 ---------------
                                                                                                      HC+NOX
----------------------------------------------------------------------------------------------------------------
2006--50%.......................................................             2.0            25.0            20.0
----------------------------------------------------------------------------------------------------------------
2007 and later--100%............................................             2.0            25.0            20.0
----------------------------------------------------------------------------------------------------------------

    (c) You may also follow the voluntary standards in Table 2 of this 
section while measuring emissions with the test procedures in subpart F 
of this part. If you certify off-highway motorcycles under this 
paragraph (c), you must meet the emission standards and all testing and 
reporting requirements. Table 2 follows:

Table 2 of Sec.  1051.102.--Voluntary Exhaust Emission Standards for Off-
                       Highway Motorcycles (g/km)
------------------------------------------------------------------------
                                                  Emission standards
                 Model year                  ---------------------------
                                                 HC+NOX          CO
------------------------------------------------------------------------
2002 and later..............................          0.8            15
------------------------------------------------------------------------

    (d) Apply the exhaust emission standards in this section for 
snowmobiles using all fuels. You must meet the numerical emission 
standards for hydrocarbons in this section based on the following types 
of hydrocarbon emissions for snowmobiles powered by the following 
fuels:
    (1) Gasoline- and LPG-fueled snowmobiles: THC emissions.
    (2) Natural gas-fueled snowmobiles: NMHC emissions.
    (3) Alcohol-fueled snowmobiles: THCE emissions.
    (e) You must show in your certification application that your 
snowmobiles meet emission standards over their full useful life. The 
minimum useful life is 300 hours of operation or five years, whichever 
comes first.

[[Page 51222]]

Specify a longer useful life under either of two conditions:
    (1) If you design, advertise, or market your snowmobile to operate 
longer than the minimum useful life (your recommended time until 
rebuild may indicate a longer design life).
    (2) If your basic mechanical warranty is longer than the minimum 
useful life.
    (f) Refer to Sec. 1051.240 to apply deterioration factors.


Sec. 1051.102  What are the exhaust emission standards for allterrain 
vehicles (ATVs)?

    (a) Apply the exhaust emission standards in this section by model 
year while measuring emissions with ATV test procedures in subpart F of 
this part.
    (b) Follow Table 1 of this section for exhaust emission standards. 
You may use the averaging, banking, and trading provisions of subpart H 
of this part to show compliance with these HC+NOX standards. 
Table 1 also shows the maximum value you may specify for a Family 
Emission Limit.
    (1) The phase-in percentages in the table specify the percentage of 
your production that must comply with the emission standards for those 
model years.
    (2) In the 2009 model year, you must produce the specified minimum 
percentage of Phase 2 vehicles, while certifying any remaining vehilces 
to Phase 1 standards.
    (3) Table 1 follows:

                     Table 1 of Sec.  1051.103.--Exhaust Emission Standards for ATVs (g/km)
----------------------------------------------------------------------------------------------------------------
                                                                              Emission standards       Maximum
                                                                          --------------------------  allowable
                                                                                                        family
                Phase                       Model year          Phase-in                               emission
                                                               (percent)      HC+NOX         CO         limits
                                                                                                    ------------
                                                                                                        HC+NOX
----------------------------------------------------------------------------------------------------------------
Phase 1.............................  2006..................           50          2.0         25.0         20.0
                                     ---------------------------------------------------------------------------
                                      2007 and 2008.........          100          2.0         25.0         20.0
                                     ---------------------------------------------------------------------------
                                      2009..................           50          2.0         25.0         20.0
----------------------------------------------------------------------------------------------------------------
Phase 2.............................  2009..................           50          1.0         25.0          2.0
                                     ---------------------------------------------------------------------------
                                      2010 and later........          100          1.0         25.0          2.0
----------------------------------------------------------------------------------------------------------------

    (c) You may also follow the voluntary standards in Table 2 of this 
section while measuring emissions with the test procedures in subpart F 
of this part. If you certify ATVs under this paragraph (c), you must 
meet the emission standards and all testing and reporting requirements. 
Table 2 follows:

  Table 2 of Sec.  1051.103.--Voluntary Exhaust Emission Standards for
                               ATVs (g/km)
------------------------------------------------------------------------
                                                  Emission standards
                 Model year                  ---------------------------
                                                 HC+NOX          CO
------------------------------------------------------------------------
2002 and later..............................          0.8            12
------------------------------------------------------------------------

    (d) Apply the exhaust emission standards in this section for ATVs 
using all fuels. You must meet the numerical emission standards for 
hydrocarbons in this section based on the following types of 
hydrocarbon emissions for ATVs powered by the following fuels:
    (1) Gasoline- and LPG-fueled ATVs: THC emissions.
    (2) Natural gas-fueled ATVs: NMHC emissions.
    (3) Alcohol-fueled ATVs: THCE emissions.
    (e) You must show in your certification application that your ATVs 
meet emission standards over their full useful life. The minimum useful 
life is 30,000 km or five years, whichever comes first. Specify a 
longer useful life under either of two conditions:
    (1) If you design, advertise, or market your ATV to operate longer 
than the minimum useful life (your recommended time until rebuild may 
indicate a longer design life).
    (2) If your basic mechanical warranty is longer than the minimum 
useful life.
    (f) Refer to Sec. 1051.240 to apply deterioration factors.


Sec. 1051.115  What other requirements must my vehicles meet?

    Your vehicles must meet the following requirements:
    (a) Closed crankcase. Design and produce your vehicles so they 
release no crankcase emissions into the atmosphere.
    (b) Emission sampling capability. Produce all your vehicles to 
allow sampling of exhaust emissions in the field. This sampling 
requires either exhaust ports downstream of any aftertreatment devices 
or the ability to extend the exhaust pipe by 20 cm. This is necessary 
to minimize any diluting effect from ambient air at the end of the 
exhaust pipe.
    (c) Adjustable parameters. If your vehicles have adjustable 
parameters, make sure they meet all the requirements of this part for 
any adjustment in the physically available range.
    (1) We do not consider an operating parameter adjustable if you 
permanently seal it or if ordinary tools cannot readily access it.
    (2) We may require you to adjust the engine to any specification 
within the adjustable range during certification testing, production-
line testing, selective enforcement auditing, or in-use testing.
    (d) Other adjustments. This provision applies if an experienced 
mechanic can change your engine's air-fuel ratio in less than one hour 
with a few parts whose total cost is under $50 (in 2001 dollars). An 
example is carburetor jets. In this case, your vehicle must meet all 
the requirements of this part for any air/fuel ratio within the 
adjustable range described in paragraph (d)(1) of this section.
    (1) In your application for certification, specify the adjustable 
range of air/fuel ratios you expect to occur in use. You may specify it 
in terms of engine parts (such as the carburetor jet's size). This 
adjustable range must include all air/fuel ratios between the lean 
limit and the rich limit, unless you can show that some air/fuel ratios 
will not occur in use.
    (i) The lean limit is the air/fuel ratio that produces the highest 
engine power output (averaged over the test cycle).
    (ii) The rich limit is the richest of the following air/fuel 
ratios:

[[Page 51223]]

    (A) The air/fuel ratio when you produce it.
    (B) The air/fuel ratio when you do durability testing.
    (C) The richest air-fuel ratio that you recommend to your 
customers.
    (2) We may require you to adjust the engine to any specification 
within the adjustable range during certification testing, production-
line testing, selective enforcement auditing, or in-use testing.
    (e) Prohibited controls. You may not design engines with an 
emission-control system that emits any noxious or toxic substance that 
the engine would not emit during operation in the absence of such a 
system, except as specifically permitted by regulation.
    (f) Defeat devices. You may not equip your vehicles with a defeat 
device. A defeat device is an auxiliary emission-control device or 
other control feature that reduces the effectiveness of emission 
controls under conditions you may reasonably expect the vehicle to 
encounter during normal operation and use. This does not apply to 
auxiliary emission-control devices you identify in your certification 
application if any of the following is true:
    (1) The conditions of concern were substantially included in your 
prescribed duty cycles.
    (2) You show your design is necessary to prevent catastrophic 
vehicle damage or accidents.
    (3) The reduced effectiveness applies only to starting the engine.
    (g) Noise standards. See 40 CFR chapter I, subchapter G, to 
determine if your vehicle must meet noise emission standards.


Sec. 1051.120  What warranty requirements apply to me?

    (a) You must warrant to the ultimate buyer that the new vehicle 
meets two conditions:
    (1) You have designed, built, and equipped it to meet the 
requirements of this part.
    (2) It is free from defects in materials and workmanship that may 
keep it from meeting these requirements.
    (b) Your emission-related warranty must be valid for at least 50 
percent of the vehicle's useful life in kilometers (or hours) of 
operation or at least three years, whichever comes first. You may offer 
a warranty more generous than we require. This warranty may not be 
shorter than any published or negotiated warranty you offer for the 
vehicle or any of its components. If a vehicle has no tamper-proof 
odometer (or hour meter), we base warranty periods in this paragraph 
(b) only on the vehicle's age (in years).
    (c) Your emission-related warranty must cover components whose 
failure would increase a vehicle's emissions, including electronic 
controls, fuel injection, exhaust-gas recirculation, aftertreatment, or 
any other system you develop to control emissions. In general, we 
consider replacing or repairing other components to be the owner's 
responsibility.
    (d) You may exclude from your warranty a component named in 
paragraph (c) of this section, if it meets two conditions:
    (1) It was in general use on similar vehicles before January 1, 
2000.
    (2) Its failure would clearly degrade the vehicle's performance 
enough that the operator would need to repair or replace it.
    (e) You may limit your emission-related warranty's validity to 
properly maintained vehicles, as described in Sec. 1068.115 of this 
chapter.
    (f) If you make an aftermarket part, you may--but do not have to--
certify that using the part will still allow vehicles to meet emission 
standards, as described in Sec. 85.2114 of this chapter.


Sec. 1051.125  What maintenance instructions must I give to buyers?

    Give the ultimate buyer of each new vehicle written instructions 
for properly maintaining and using the vehicle, including the emission-
control system. The maintenance instructions also apply to service 
accumulation on your test vehicles or engines, as described in 40 CFR 
part 1065, subpart E.
    (a) Critical emission-related maintenance. You may schedule 
critical maintenance on particular devices if you meet the following 
conditions:
    (1) You may ask us to approve maintenance on air-injection, fuel-
system, or ignition components, aftertreatment devices, exhaust gas 
recirculation systems, crankcase ventilation valves, or oxygen sensors 
only if it meets two criteria:
    (i) Operators are reasonably likely to do the maintenance you call 
for.
    (ii) Vehicles need the maintenance to meet emission standards.
    (2) We will accept scheduled maintenance as reasonably likely to 
occur in use if you satisfy any of four conditions:
    (i) You present data showing that, if a lack of maintenance 
increases emissions, it also unacceptably degrades the vehicle's 
performance.
    (ii) You present survey data showing that 80 percent of vehicles in 
the field get the maintenance you specify at the recommended intervals.
    (iii) You provide the maintenance free of charge and clearly say so 
in maintenance instructions for the customer.
    (iv) You otherwise show us that the maintenance is reasonably 
likely to be done at the recommended intervals.
    (b) Minimum maintenance intervals. You may not schedule emission-
related maintenance within the minimum useful life period for 
aftertreatment devices, fuel injectors, sensors, electronic control 
units, and turbochargers.
    (c) Noncritical emission-related maintenance. For engine parts not 
listed in paragraph (a) or (b) of this section, you may recommend any 
additional amount of inspection or maintenance. But you must state 
clearly that these steps are not necessary to keep the emission-related 
warranty valid. Also, do not take these inspection or maintenance steps 
during service accumulation on your test vehicles or engines.
    (d) Source of parts and repairs. Print clearly on the first page of 
your written maintenance instructions that any repair shop or person 
may maintain, replace, or repair emission-control devices and systems. 
Make sure your instructions require no component or service identified 
by brand, trade, or corporate name. Also, do not directly or indirectly 
distinguish between service by companies with which you have a 
commercial relationship and service by independent repair shops or the 
owner. You may disregard the requirements in this paragraph (d) if you 
do one of two things:
    (1) Provide a component or service without charge under the 
purchase agreement.
    (2) Get us to waive this prohibition in the public's interest by 
convincing us the vehicle will work properly only with the identified 
component or service.


Sec. 1051.130  What installation instructions must I give to vehicle 
manufacturers?

    (a) If you sell an engine for someone else to install in a 
recreational vehicle, give the buyer of the vehicle written 
instructions for installing it consistent with the requirements of this 
part. Make sure these instructions have the following information:
    (1) Include the heading: ``Emission-related installation 
instructions.''
    (2) State: ``Failing to follow these instructions when installing a 
certified engine in a recreational vehicle violates federal law (40 CFR 
1068.105(b)), subject to fines or other penalties as described in the 
Clean Air Act.''.
    (3) Describe any other instructions needed to install an exhaust

[[Page 51224]]

aftertreatment device consistent with your application for 
certification.
    (4) Describe any limits on the range of applications needed to 
ensure that the engine operates consistently with your application for 
certification. For example, if your engines are certified only to the 
snowmobile standards, tell vehicle manufacturers not to install the 
engines in other vehicles.
    (5) Describe any other instructions to make sure the installed 
engine will operate according to any design specifications you describe 
in your application for certification.
    (6) State: ``If you obscure the engine's emission label, you must 
attach a duplicate label to your vehicle, as described in 40 CFR 
1068.105.''.
    (b) You do not need installation instructions for engines you 
install in your own vehicle.


Sec. 1051.135  How must I label and identify the vehicles and engines I 
produce?

    (a) Assign each production engine a unique identification number 
and permanently and legibly affix or engrave it on the engine.
    (b) At the time of manufacture, add a permanent label identifying 
each engine. To meet labeling requirements, do four things:
    (1) Attach the label in one piece so it is not removable without 
being destroyed or defaced.
    (2) Design and produce it to be durable and readable for the 
engine's entire life.
    (3) Secure it to a part of the engine needed for normal operation 
and not normally requiring replacement.
    (4) Write it in block letters in English.
    (c) On your engine label, do 13 things:
    (1) Include the heading ``EMISSION CONTROL INFORMATION.''
    (2) Include your full corporate name and trademark.
    (3) State: ``THIS VEHICLE IS CERTIFIED TO OPERATE ON [specify 
operating fuel or fuels].''.
    (4) Identify the emission-control system; your identifiers must use 
names and abbreviations consistent with SAE J1930, which we incorporate 
by reference (see Sec. 1051.810).
    (5) List all requirements for fuel and lubricants.
    (6) State the date of manufacture [DAY (optional), MONTH, and 
YEAR]; if you stamp it on the engine and print it in the owner's 
manual, you may omit this information from the label.
    (7) State: ``THIS VEHICLE MEETS U.S. ENVIRONMENTAL PROTECTION 
AGENCY REGULATIONS FOR [MODEL YEAR] [SNOWMOBILES or OFF-ROAD 
MOTORCYCLES or ATVS].''.
    (8) Include EPA's standardized designation for the engine family.
    (9) State the engine's displacement (in liters) and rated power.
    (10) State the engine's useful life (see Sec. 1051.100(h).
    (11) List specifications and adjustments for engine tuneups; show 
the proper position for the transmission during tuneup and state which 
accessories should be operating.
    (12) Describe other information on proper maintenance and use.
    (13) Identify the emission standards or Family Emission Limits to 
which you have certified the engine.
    (d) Some of your engines may need more information on the label. If 
you produce an engine or vehicle that we exempt from the requirements 
of this part, see 40 CFR part 1068, subparts C and D, for more label 
information.
    (e) Some engines may not have enough space for a label with all the 
required information. In this case, you may omit the information 
required in paragraphs (c)(3), (c)(4), (c)(5), and (c)(12) of this 
section if you print it in the owner's manual instead.
    (f) If you are unable to meet these labeling requirements, you may 
ask us to modify them consistent with the intent of this section.
    (g) If you obscure the engine label while installing the engine in 
the vehicle, you must place a duplicate label on the vehicle. If 
someone else installs the engine in a vehicle, give them duplicate 
labels if they ask for them (see 40 CFR 1068.105).


Sec. 1051.145  What provisions apply only for a limited time?

    Apply the following provisions instead of others in this part for 
the periods and circumstances specified in this section.
    (a) Provisions for small-volume manufacturers. Special provisions 
apply to you if you are a small-volume manufacturer subject to the 
requirements of this part.
    (1) You may delay complying with otherwise applicable emission 
standards (and other requirements) for two model years.
    (2) If you are a small-volume manufacturer of snowmobiles, at least 
50 percent of the models you produce must meet emission standards in 
the first two years they apply, as described in paragraph (a)(1) of 
this section.
    (3) Your vehicles for model years before 2011 may be exempt from 
the requirements and prohibitions of this part if you meet four 
criteria:
    (i) Produce your vehicles by installing engines covered by a valid 
certificate of conformity under 40 CFR part 90 that shows the engines 
meet standards for Class II engines for each engine's model year.
    (ii) Do not change the engine in a way that we could reasonably 
expect to increase its exhaust emissions.
    (iii) Make sure the engine meets all applicable requirements from 
40 CFR part 90. This applies to engine manufacturers, vehicle 
manufacturers who use these engines, and all other persons as if these 
engines were not used in recreational vehicles.
    (iv) Make sure that fewer than 50 percent of the engine model's 
total sales, from all companies, are used in recreational vehicles 
regulated under this part.
    (b) Optional emission standards for Phase 1 ATVs. To meet Phase 1 
ATV standards, you may apply the exhaust emission standards by model 
year in paragraph (b)(1) of this section while measuring emissions 
using the engine-based test procedures in 40 CFR part 1065 instead of 
the chassis-based test procedures in 40 CFR part 86.
    (1) Follow Table 1 of this section for exhaust emission standards, 
while meeting all the other requirements of Sec. 1051.103. You may use 
emission credits to show compliance with these standards (see subpart H 
of this part). You may not exchange emission credits with engine 
families meeting the standards in Sec. 1051.103. You may also not 
exchange credits between engine families certified above 225 cc and 
engine families certified below 225 cc.
    (i) The phase-in percentages in the table specify the percentage of 
your production that must comply with the emission standards for those 
model years.
    (ii) In the 2009 model year, you may produce fewer vehicles meeting 
Phase 1 standards if they are instead certified to Phase 2 standards.
    (iii) Table 1 follows:

[[Page 51225]]



           Table 1 of Sec.  1051.145.--Optional Exhaust Emission Standards for Phase 1 ATVs (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                                              Emission standards       Maximum
                                                                          --------------------------  allowable
                                                                                                        family
         Engine displacement                Model year          Phase-in                               emission
                                                               (percent)      HC+NOX         CO         limits
                                                                                                    ------------
                                                                                                        HC+NOX
----------------------------------------------------------------------------------------------------------------
225 cc..............................  2006..................           50         16.1          400         32.2
                                     ---------------------------------------------------------------------------
                                      2007 and 2008.........          100         16.1          400         32.2
                                     ---------------------------------------------------------------------------
                                      2009..................           50         16.1          400         32.2
----------------------------------------------------------------------------------------------------------------
225 cc...................  2006..................           50         13.4          400         26.8
                                     ---------------------------------------------------------------------------
                                      2007 and 2008.........          100         13.4          400         26.8
                                     ---------------------------------------------------------------------------
                                      2009..................           50         13.4          400         26.8
----------------------------------------------------------------------------------------------------------------

    (2) Measure emissions by testing the engine on a dynamometer with 
the steady-state duty cycle described in Table 2 of this section.
    (i) During idle mode, hold the speed within your specifications, 
keep the throttle fully closed, and keep engine torque under 5 percent 
of the peak torque value at maximum test speed.
    (ii) For the full-load operating mode, operate the engine at its 
maximum fueling rate.
    (iii) See part 1065 of this chapter for detailed specifications of 
tolerances and calculations.
    (iv) Table 2 follows:

                     Table 2 of Sec.  1051.145.--6-Mode Duty Cycle for Recreational Engines
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                 Engine                   time in     Weighting
                          Mode No.                               speed        Torque        mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1...........................................................           85          100          5.0         0.09
----------------------------------------------------------------------------------------------------------------
2...........................................................           85           75          5.0         0.20
----------------------------------------------------------------------------------------------------------------
3...........................................................           85           50          5.0         0.29
----------------------------------------------------------------------------------------------------------------
4...........................................................           85           25          5.0         0.30
----------------------------------------------------------------------------------------------------------------
5...........................................................           85           10          5.0         0.07
----------------------------------------------------------------------------------------------------------------
6...........................................................         Idle            0          5.0         0.05
----------------------------------------------------------------------------------------------------------------

    (c) For model years before 2011, if you are a small-volume 
manufacturer, your vehicles may be exempt from the requirements and 
prohibitions of this part if you meet all the following criteria:
    (1) You must produce them by installing engines covered by a valid 
certificate of conformity under 40 CFR part 90 showing that the engines 
meet the standards for Class II engines for each engine's model year.
    (2) You must not make any changes to the engine that we could 
reasonably expect to increase its exhaust emissions.
    (3) You must make sure the engine meets all the requirements from 
40 CFR part 90 that apply. The requirements and restrictions of 40 CFR 
part 90 apply to anyone manufacturing these engines, anyone 
manufacturing vehicles that use these engines, and all other persons in 
the same manner as if these engines were not used in recreational 
vehicles.
    (4) You must make sure that fewer than 50 percent of the engine 
model's total sales, from all companies, are used in recreational 
vehicles.

Subpart C--Certifying Engine Families


Sec. 1051.201  What are the general requirements for submitting a 
certification application?

    (a) Send us an application for a certificate of conformity for each 
engine family. Each application is valid for only one model year.
    (b) The application must not include false or incomplete statements 
or information (see Sec. 1051.250).
    (c) We may choose to ask you to send us less information than we 
specify in this subpart, but this would not change your recordkeeping 
requirements.
    (d) Use good engineering judgment for all decisions related to your 
application (see Sec. 1068.5 of this chapter).
    (e) An authorized representative of your company must approve and 
sign the application.


Sec. 1051.205  How must I prepare my application?

    In your application, you must do all the following things:
    (a) Describe the engine family's specifications and other basic 
parameters of the vehicle design. List the types of fuel you intend to 
use to certify the engine family (for example, gasoline, liquefied 
petroleum gas, methanol, or natural gas).
    (b) Explain how the emission-control system operates. Describe in 
detail all the system's components, auxiliary emission-control devices, 
and all fuel-system components you will install on

[[Page 51226]]

any production or test vehicle or engine. Explain why any auxiliary 
emission-control devices are not defeat devices (see Sec. 1051.115(f)). 
Do not include detailed calibrations for components unless we ask for 
them.
    (c) Describe the vehicles or engines you selected for testing and 
the reasons for selecting them.
    (d) Describe any special or alternate test procedures you used (see 
Sec. 1051.501).
    (e) Identify the duty cycle and the number of engine operating 
hours used to stabilize emission levels. Describe any scheduled 
maintenance you did.
    (f) List the specifications of the test fuel to show that it falls 
within the required ranges we specify in 40 CFR part 1065, subpart C.
    (g) Identify the engine family's useful life.
    (h) Propose maintenance and use instructions for the ultimate buyer 
of each new vehicle (see Sec. 1051.125).
    (i) Propose emission-related installation instructions if you sell 
engines for someone else to install in a vehicle (see Sec. 1051.130).
    (j) Propose an emission-control label.
    (k) Present emission data for HC, NOX (where 
applicable), and CO on a test vehicle or engine to show your vehicles 
meet the emission standards we specify in subpart B of this part. Show 
these figures before and after applying deterioration factors for each 
vehicle or engine. Include test data for each type of fuel on which you 
intend for vehicles in the engine family to operate (for example, 
gasoline, liquefied petroleum gas, methanol, or natural gas).
    (l) Report all test results, including those from invalid tests or 
from any nonstandard tests (such as measurements based on exhaust 
concentrations in parts per million).
    (m) Identify the engine family's deterioration factors and describe 
how you developed them. Present any emission test data you used for 
this.
    (n) Describe all adjustable operating parameters and other 
adjustments (see Sec. 1051.115(c) and (d)), including the following:
    (1) The nominal or recommended setting and the associated 
production tolerances.
    (2) The intended physically adjustable range.
    (3) The limits or stops used to establish adjustable ranges.
    (4) Production tolerances of the limits or stops used to establish 
each physically adjustable range.
    (5) Where applicable, information showing that someone cannot 
readily modify the engines to operate outside the physically adjustable 
range.
    (6) The air/fuel ratios specified in Sec. 1051.115(d).
    (o) State that you operated your test vehicles or engines according 
to the specified procedures and test parameters using the fuels 
described in the application to show you meet the requirements of this 
part.
    (p) State unconditionally that all the vehicles (and/or engines) in 
the engine family comply with the requirements of this part, other 
referenced parts, and the Clean Air Act (42 U.S.C. 7401 et seq.)
    (q) Include estimates of vehicle production.
    (r) Add other information to help us evaluate your application if 
we ask for it.


Sec. 1051.210  May I get preliminary approval before I complete my 
application?

    If you send us information before you finish the application, we 
will review it and make any appropriate determinations listed in 
Sec. 1051.215(b) within 90 days of your request. If we need to ask you 
for further information, we will extend the 90-day period by the number 
of days we wait for your response.


Sec. 1051.215  What happens after I complete my application?

    (a) If any of the information in your application changes after you 
submit it, amend it as described in Sec. 1051.225.
    (b) We may decide that we cannot approve your application unless 
you revise it.
    (1) If you inappropriately use the provisions of Sec. 1051.230(c) 
or (d) to define a broader or narrower engine family, we will require 
you to redefine your engine family.
    (2) If we determine your selected useful life for the engine family 
is too short, we will require you to lengthen it (see Sec. 1051.101(e), 
Sec. 1051.102(e), or Sec. 1051.103(e)).
    (3) If we determine your deterioration factors are not appropriate, 
we will require you to revise them (see Sec. 1051.240(c)).
    (4) If your proposed label is inconsistent with Sec. 1051.135, we 
will require you to change it (and tell you how, if possible).
    (5) If you require or recommend maintenance and use instructions 
inconsistent with Sec. 1051.125, we will require you to change them.
    (6) If we find any other problem with your application, we will 
tell you how to correct it.
    (c) If we determine your application is complete and shows you meet 
all the requirements, we will issue a certificate of conformity for 
your engine family for that model year. If we deny the application, we 
will explain why in writing. You may then ask us to hold a hearing to 
reconsider our decision (see Sec. 1051.820).


Sec. 1051.220  How do I amend the maintenance instructions in my 
application?

    Send the Designated Officer a request to amend your application for 
certification for an engine family if you want to change the 
maintenance instructions in a way that could affect emissions. In your 
request, describe the proposed changes to the maintenance instructions. 
Unless we disapprove it, you may distribute the new maintenance 
instructions to your customers 30 days after we receive your request. 
We may also approve a shorter time or waive this requirement.


Sec. 1051.225  How do I amend my application to include new or modified 
vehicles?

    (a) You must amend your application for certification before you 
take either of the following actions:
    (1) Add a vehicle to a certificate of conformity.
    (2) Make a design change for a certified engine family that may 
affect emissions or an emission-related part over the vehicle's 
lifetime.
    (b) Send the Designated Officer a request to amend the application 
for certification for an engine family. In your request, do all of the 
following:
    (1) Describe the vehicle model or configuration you are adding or 
changing.
    (2) Include engineering evaluations or reasons why the original 
test vehicle or engine is or is not still appropriate.
    (3) If the original test vehicle or engine for the engine family is 
not appropriate to show compliance for the new or modified vehicle, 
include new test data showing that the new or modified vehicle meets 
the requirements of this part.
    (c) You may start producing the new or modified vehicle anytime 
after you send us your request.
    (d) You must give us test data within 30 days if we ask for more 
testing, or stop producing the vehicle if you are not able do this.
    (e) If we determine that the certificate of conformity would not 
cover your new or modified vehicle, we will send you a written 
explanation of our decision. In this case, you may no longer produce 
these vehicles, though you may ask for a hearing for us to reconsider 
our decision (see Sec. 1051.820).


Sec. 1051.230  How do I select engine families?

    (a) Divide your product line into families of vehicles that you 
expect to

[[Page 51227]]

have similar emission characteristics. Your engine family is limited to 
a single model year.
    (b) Group vehicles in the same engine family if they are identical 
in all of the following aspects:
    (1) The combustion cycle.
    (2) The cooling system (water-cooled vs. air-cooled).
    (3) The number and arrangement of cylinders.
    (4) The number, location, volume, and composition of catalytic 
converters.
    (5) Method of air aspiration.
    (6) Bore and stroke.
    (7) Configuration of the combustion chamber.
    (8) Location of intake and exhaust valves or ports.
    (c) In some cases you may subdivide a group of vehicles that is 
identical under paragraph (b) of this section into different engine 
families. To do so, you must show you expect emission characteristics 
to be different during the useful life or that any of the following 
engine characteristics are different:
    (1) Method of actuating intake and exhaust timing (poppet valve, 
reed valve, rotary valve, etc.).
    (2) Sizes of intake and exhaust valves or ports.
    (3) Type of fuel.
    (4) Configuration of the fuel system.
    (5) Exhaust system.
    (d) In some cases, you may include different engines in the same 
engine family, even though they are not identical with respect to the 
things listed in paragraph (b) of this section.
    (1) If you show that different engines have similar emission 
characteristics during the useful life, we may approve grouping them in 
the same engine family.
    (2) If you are a small-volume manufacturer, you may group engines 
from any vehicles subject to the same emission standards into a single 
engine family. This does not change any of the requirements of this 
part for showing that an engine family meets emission standards.
    (e) If you cannot define engine families by the method in this 
section, we will define them based on features related to emission 
characteristics.


Sec. 1051.235  How does testing fit with my application for a 
certificate of conformity?

    This section describes how to test vehicles or engines in your 
effort to apply for a certificate of conformity.
    (a) Test your vehicles or engines using the procedures and 
equipment specified in subpart F of this part.
    (b) Select from each engine family a test vehicle or engine for 
each fuel type with a configuration you believe is most likely to 
exceed the emission standards. Using good engineering judgment, 
consider the emission levels of all exhaust constituents over the full 
useful life of the vehicle.
    (c) You may submit emission data for equivalent engine families 
from previous years instead of doing new tests, but only if the data 
shows that the test vehicle or engine would meet all the requirements 
for the latest vehicle or engine models. We may require you to do new 
emission testing if we believe the latest vehicle or engine models 
could be substantially different from the previously tested vehicle or 
engine.
    (d) We may choose to measure emissions from any of your test 
vehicles or engines.
    (1) If we do this, you must provide the test vehicle or engine at 
the location we select. We may decide to do the testing at your plant 
or any other facility. If we choose to do the testing at your plant, 
you must schedule it as soon as possible and make available the 
instruments and equipment we need.
    (2) If we measure emissions on one of your test vehicles or 
engines, the results of that testing become the official data for the 
vehicle or engine. Unless we later invalidate this data, we may decide 
not to consider your data in determining if your engine family meets 
the emission standards.
    (3) Before we test one of your vehicles or engines, we may set its 
adjustable parameters to any point within the physically adjustable 
ranges (see Sec. 1051.115(c)) we may also adjust the air/fuel ratio 
within the adjustable range specified in Sec. 1051.115(d).
    (4) Calibrate the test vehicle or engine within the production 
tolerances shown on the engine label for anything we do not consider an 
adjustable parameter (see Sec. 1051.205(m)).
    (e) If you are a small-volume manufacturer, you may certify by 
design on the basis of existing emission data from comparable vehicles, 
in accordance with good engineering judgment. In those cases, you are 
not required to test your vehicles.


Sec. 1051.240  How do I determine if my engine family complies with 
emission standards?

    (a) Your engine family complies with the numerical emission 
standards in subpart B of this part if all emission-data vehicles 
representing that family have test results showing emission levels at 
or below the standards.
    (b) Your engine family does not comply if any emission-data vehicle 
representing that family has test results showing emission levels above 
the standards for any pollutant.
    (c) To compare emission levels from the emission-data vehicle with 
the emission standards, apply deterioration factors (to three decimal 
places) to the measured emission levels. The deterioration factor is a 
number that shows the relationship between exhaust emissions at the end 
of useful life and at the low-hour test point. Section 1051.520 
specifies how to test your vehicle to develop deterioration factors 
that estimate the change in emissions over your vehicle's full useful 
life. Small-volume manufacturers may use assigned deterioration factors 
established by EPA. Apply the deterioration factors as follows:
    (1) For vehicles that use aftertreatment technology, such as 
catalytic converters, the deterioration factor is the ratio of exhaust 
emissions at the end of useful life to exhaust emissions at the low-
hour test point. Adjust the official emission results for each tested 
vehicle at the selected test point by multiplying the measured 
emissions by the deterioration factor. If the factor is less than one, 
use one.
    (2) For vehicles that do not use aftertreatment technology, the 
deterioration factor is the difference between exhaust emissions at the 
end of useful life and exhaust emissions at the low-hour test point. 
Adjust the official emission results for each tested vehicle at the 
selected test point by adding the factor to the measured emissions. If 
the factor is less than zero, use zero.
    (d) After adjusting the emission levels for deterioration, round 
them to the same number of decimal places as the standard. Compare the 
rounded emission levels to the emission standard for each test vehicle.


Sec. 1051.245  What records must I keep and make available to EPA?

    (a) Organize and maintain the following records to keep them 
readily available; we may review these records at any time:
    (1) A copy of all applications and any summary information you sent 
us.
    (2) Any of the information we specify in Sec. 1051.205 that you did 
not include in your application.
    (3) A detailed history of each emission-data vehicle. In each 
history, describe all of the following:
    (i) The emission-data vehicle's construction, including its origin 
and buildup, steps you took to ensure that it represents production 
vehicles, any components you built specially for it, and all emission-
related components.
    (ii) How you accumulated vehicle or engine operating hours, 
including the dates and the number of hours accumulated.

[[Page 51228]]

    (iii) All maintenance (including modifications, parts changes, and 
other service) and the dates and reasons for the maintenance.
    (iv) All your emission tests, including documentation on routine 
and standard tests, as specified in part 1065 of this chapter, and the 
date and purpose of each test.
    (v) All tests to diagnose engine or emission-control performance, 
giving the date and time of each and the reasons for the test.
    (vi) Any other significant events.
    (b) Keep data from routine emission tests (such as test cell 
temperatures and relative humidity readings) for one year after we 
issue the associated certificate of conformity. Keep all other 
information specified in paragraph (a) of this section for eight years 
after we issue your certificate.
    (c) Store these records in any format and on any media, as long as 
you can promptly send us organized, written records in English if we 
ask for them.
    (d) Send us copies of any maintenance instructions or explanations 
if we ask for them.


Sec. 1051.250  When may EPA deny, revoke, or void my certificate of 
conformity?

    (a) We may deny your application for certification if your 
emission-data vehicles fail to comply with emission standards or other 
requirements. Our decision may be based on any information available to 
us. If we deny your application, we will explain why in writing.
    (b) In addition, we may deny your application or revoke your 
certificate if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information (paragraph (d) of this 
section applies if this is fraudulent).
    (3) Render inaccurate any test data.
    (4) Deny us from completing authorized activities despite our 
presenting a warrant or court order (see Sec. 1068.20 of this chapter).
    (5) Produce vehicle or engines for importation into the United 
States at a location where local law prohibits us from carrying out 
authorized activities.
    (c) We may void your certificate if you do not keep the records we 
require or do not give us information when we ask for it.
    (d) We may void your certificate if we find that you committed 
fraud to get it. This means intentionally submitting false or 
incomplete information.
    (e) If we deny your application or revoke or void your certificate, 
you may ask for a hearing (see Sec. 1051.820). Any such hearing will be 
limited to substantial and factual issues.

Subpart D--Testing Production-Line Engines


Sec. 1051.301  When must I test my production-line vehicles or engines?

    (a) If you certify vehicles to the standards of this part, you must 
test them as described in this subpart. If your vehicle is certified to 
g/kW-hr standards, then test the engine; otherwise, test the vehicle. 
The provisions of this subpart do not apply to small-volume 
manufacturers.
    (b) We may suspend or revoke your certificate of conformity for 
certain engine families if your production-line vehicles or engines do 
not meet emission standards or you do not fulfill your obligations 
under this subpart (see Secs. 1051.325 and 1051.340).
    (c) The requirements of this part do not affect our ability to do 
selective enforcement audits, as described in part 1068 of this 
chapter.
    (d) You may ask to use an alternate program for testing production-
line vehicles or engines. In your request, you must show us that the 
alternate program gives equal assurance that your products meet the 
requirements of this part. If we approve your alternate program, we may 
waive some or all of this part's requirements.
    (e) If you certify an engine family with carryover emission data, 
as described in Sec. 1051.235(c), and these equivalent engine families 
consistently meet the emission standards with production-line testing 
over the preceding two-year period, you may ask for a reduced testing 
rate for further production-line testing for that family. The minimum 
testing rate is one vehicle or engine per engine family. If we reduce 
your testing rate, we may limit our approval to a single model year.
    (f) We may ask you to make a reasonable number of production-line 
vehicles or engines available for a reasonable time so we can test or 
inspect them for compliance with the requirements of this part.


Sec. 1051.305  How must I prepare and test my production-line vehicles 
or engines?

    (a) Test procedures. Test your production-line vehicles or engines 
using the applicable testing procedures in subpart F of this part to 
show you meet the emission standards in subpart B of this part.
    (b) Modifying a test vehicle or engine. Once a vehicle or engine is 
selected for testing (see Sec. 1051.310), you may adjust, repair, 
prepare, or modify it or check its emissions only if one of the 
following is true:
    (1) You document the need for doing so in your procedures for 
assembling and inspecting all your production vehicles or engines and 
make the action routine for all the vehicles or engines in the engine 
family.
    (2) This subpart otherwise specifically allows your action.
    (3) We approve your action in advance.
    (c) Malfunction. If a vehicle or engine malfunction prevents 
further emission testing, ask us to approve your decision to either 
repair it or delete it from the test sequence.
    (d) Setting adjustable parameters. Before any test, we may adjust 
or require you to adjust any adjustable parameter to any setting within 
its physically adjustable range.
    (1) We may adjust idle speed outside the physically adjustable 
range as needed until the vehicle or engine has stabilized emission 
levels (see paragraph (e) of this section). We may ask you for 
information needed to establish an alternate minimum idle speed.
    (2) We may make or specify adjustments within the physically 
adjustable range by considering their effect on emission levels, as 
well as how likely it is someone will make such an adjustment with in-
use vehicles.
    (e) Stabilizing emission levels. Before you test production-line 
vehicles or engines, you may operate the vehicle or engine to stabilize 
the emission levels. Using good engineering judgment, operate your 
vehicles or engines in a way that represents the way they will be used. 
You may operate each vehicle or engine for no more than the greater of 
two periods:
    (1) 50 hours.
    (2) The number of hours you operated your emission-data vehicle for 
certifying the engine family (see 40 CFR part 1065, subpart E).
    (f) Damage during shipment. If shipping a vehicle or engine to a 
remote facility for production-line testing makes necessary an 
adjustment or repair, you must wait until after the after the initial 
emission test to do this work. We may waive this requirement if the 
test would be impossible or unsafe, or if it would permanently damage 
the vehicle or engine. Report to us, in your written report under 
Sec. 1051.345, all adjustments or repairs you make on test vehicles or 
engines before each test.
    (g) Retesting after invalid tests. You may retest a vehicle or 
engine if you determine an emission test is invalid. Explain in your 
written report reasons for invalidating any test and the emission 
results from all tests. If you retest a vehicle or engine and, within 
ten days after testing, ask to substitute results of the new tests for 
the original

[[Page 51229]]

ones, we will answer within ten days after we receive your information.


Sec. 1051.310  How must I select vehicles or engines for production-
line testing?

    (a) Use test results from two vehicles or engines for each engine 
family to calculate the required sample size for the model year. Update 
this calculation with each test.
    (1) For engine families with projected annual sales of at least 
1600, the test periods are consecutive quarters (3 months).
    (2) For engine families with projected annual sales below 1600, the 
test period is the whole model year.
    (b) Early in each test period, randomly select and test an engine 
from the end of the assembly line for each engine family.
    (1) In the first test period for newly certified engines, randomly 
select and test one more engine. Then, calculate the required sample 
size for the test period as described in paragraph (c) of this section.
    (2) In later test periods or for engine families relying on 
previously submitted test data, combine the new test result with the 
last test result from the previous test period. Then, calculate the 
required sample size for the new test period as described in paragraph 
(c) of this section.
    (c) Calculate the required sample size for each engine family. 
Separately calculate this figure for HC, NOX (or 
HC+NOX), and CO. The required sample size is the greater of 
these calculated values. Use the following equation:
[GRAPHIC] [TIFF OMITTED] TP05OC01.005


Where:

N = Required sample size for the model year.
t95 = 95% confidence coefficient, which depends on the 
number of tests completed, n, as specified in the table in paragraph 
(c)(1) of this section. It defines 95% confidence intervals for a one-
tail distribution.
x = Mean of emission test results of the sample.
STD = Emission standard.
 = Test sample standard deviation (see paragraph (c)(2) of 
this section).

    (1) Determine the 95% confidence coefficient, t95, from 
the following table:

------------------------------------------------------------------------
        n    t95                 n    t95                n    t95
------------------------------------------------------------------------
           2    6.31               12    1.80              22    1.72
------------------------------------------------------------------------
           3    2.92               13    1.78              23    1.72
------------------------------------------------------------------------
           4    2.35               14    1.77              24    1.71
------------------------------------------------------------------------
           5    2.13               15    1.76              25    1.71
------------------------------------------------------------------------
           6    2.02               16    1.75              26    1.71
------------------------------------------------------------------------
           7    1.94               17    1.75              27    1.71
------------------------------------------------------------------------
           8    1.90               18    1.74              28    1.70
------------------------------------------------------------------------
           9    1.86               19    1.73              29    1.70
------------------------------------------------------------------------
          10    1.83               20    1.73             30+    1.70
------------------------------------------------------------------------
          11    1.81               21    1.72
------------------------------------------------------------------------

    (2) Calculate the standard deviation, , for the test 
sample using the following formula:
[GRAPHIC] [TIFF OMITTED] TP05OC01.006

Where:

Xi = Emission test result for an individual vehicle or 
engine.
n = The number of tests completed in an engine family.

    (d) Use final deteriorated test results to calculate the variables 
in the equations in paragraph (c) of this section (see 
Sec. 1051.315(a)).
    (e) After each new test, recalculate the required sample size using 
the updated mean values, standard deviations, and the appropriate 95% 
confidence coefficient.
    (f) Distribute the remaining vehicle or engine tests evenly 
throughout the rest of the test period. You may need to adjust your 
schedule for selecting vehicles or engines if the required sample size 
changes. Continue to randomly select vehicles or engines from each 
engine family; this may involve testing vehicles or engines that 
operate on different fuels.
    (g) Continue testing any engine family for which the sample mean, 
x, is greater than the emission standard. This applies if the sample 
mean for either HC, NOX (or HC+NOX) or for CO is 
greater than the emission standard. Continue testing until one of the 
following things happens:
    (1) The sample size, n, for an engine family is greater than the 
required sample size, N, and the sample mean, x, is less than or equal 
to the emission standard.
    (2) The engine family does not comply according to Sec. 1051.325.
    (3) You test 30 vehicles or engines from the engine family.
    (4) You test one percent of your projected annual U.S.-directed 
production volume for the engine family.
    (h) You may elect to test more randomly chosen vehicles or engines 
than we require. Include these vehicles or engines in the sample size 
calculations.


Sec. 1051.315  How do I know when my engine family does not comply?

    (a) Calculate your test results. Round them to the number of 
decimal places in the emission standard expressed to one more decimal 
place.
    (1) Initial and final test results. Calculate and round the test 
results for each vehicle or engine. If you do several tests on a 
vehicle or engine, calculate the initial test results, then add them 
together and divide by the number of tests and round for the final test 
results on that vehicle or engine.
    (2) Final deteriorated test results. Apply the deterioration factor 
for the engine family to the final test results (see Sec. 1051.240(c)).

[[Page 51230]]

    (b) Construct the following CumSum Equation for each engine family 
(for HC, NOX (or HC+NOX), and CO emissions):

Ci = Ci-1 + Xi - (STD + F)

Where:

Ci = The current CumSum statistic.
Ci-1 = The previous CumSum statistic. Prior to any testing, 
the CumSum statistic is 0 (i.e. C0 = 0).
Xi = The current emission test result for an individual 
vehicle or engine.
STD = Emission standard.
F = 0.25  x  .

    (c) Use final deteriorated test results to calculate the variables 
in the equation in paragraph (b) of this section (see 
Sec. 1051.315(a)).
    (d) After each new test, recalculate the CumSum statistic.
    (e) If you test more than the required number of vehicles or 
engines, include the results from these additional tests in the CumSum 
Equation.
    (f) After each test, compare the current CumSum statistic, 
Ci, to the recalculated Action Limit, H, defined as H = 5.0 
x  .
    (g) If the CumSum statistic exceeds the Action Limit in two 
consecutive tests, the engine family does not comply with the 
requirements of this part. Tell us within ten working days if this 
happens.
    (h) If you amend the application for certification for an engine 
family (see Sec. 1051.225), do not change any previous calculations of 
sample size or CumSum statistics for the model year.


Sec. 1051.320  What happens if one of my production-line vehicles or 
engines fails to meet emission standards?

    (a) If you have a production-line vehicle or engine with final 
deteriorated test results exceeding one or more emission standards (see 
Sec. 1051.315(a)), the certificate of conformity is automatically 
suspended for that failing vehicle or engine. You must take the 
following actions before your certificate of conformity can cover that 
vehicle or engine:
    (1) Correct the problem and retest the vehicle or engine to show it 
complies with all emission standards.
    (2) Include in your written report a description of the test 
results and the remedy for each vehicle or engine (see Sec. 1051.345).
    (b) You may at any time ask for a hearing to determine whether the 
tests and sampling methods were proper (see Sec. 1051.820).


Sec. 1051.325  What happens if an engine family does not comply?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails to comply under Sec. 1051.315. The suspension may 
apply to all facilities producing vehicles or engines from an engine 
family, even if you find noncompliant vehicles or engines only at one 
facility.
    (b) We will tell you in writing if we suspend your certificate in 
whole or in part. We will not suspend a certificate until at least 15 
days after the engine family became noncompliant. The suspension is 
effective when you receive our notice.
    (c) Up to 15 days after we suspend the certificate for an engine 
family, you may ask for a hearing to determine whether the tests and 
sampling methods were proper (see Sec. 1051.820). If we agree before a 
hearing that we used erroneous information in deciding to suspend the 
certificate, we will reinstate the certificate.


Sec. 1051.330  May I sell vehicles from an engine family with a 
suspended certificate of conformity?

    You may sell vehicles that you produce after we suspend the engine 
family's certificate of conformity under Sec. 1048.315 only if one of 
the following occurs:
    (a) You test each vehicle or engine you produce and show it 
complies with emission standards that apply.
    (b) We conditionally reinstate the certificate for the engine 
family. We may do so if you agree to recall all the affected vehicles 
and remedy any noncompliance at no expense to the owner if later 
testing shows that the engine family still does not comply.


Sec. 1051.335  How do I ask EPA to reinstate my suspended certificate?

    (a) Send us a written report asking us to reinstate your suspended 
certificate. In your report, identify the reason for noncompliance, 
propose a remedy, and commit to a date for carrying it out. In your 
proposed remedy include any quality control measures you propose to 
keep the problem from happening again.
    (b) Give us data from production-line testing that shows the 
remedied engine family complies with all the emission standards that 
apply.


Sec. 1051.340  When may EPA revoke my certificate under this subpart 
and how may I sell these vehicles again?

    (a) We may revoke your certificate for an engine family in the 
following cases:
    (1) You do not meet the reporting requirements.
    (2) Your engine family fails to meet emission standards and your 
proposed remedy to address a suspended certificate under Sec. 1051.325 
is inadequate to solve the problem or requires you to change the 
vehicle's design or emission-control system.
    (b) To sell vehicles from an engine family with a revoked 
certificate of conformity, you must modify the engine family and then 
show it complies with the requirements of this part.
    (1) If we determine your proposed design change may not control 
emissions for the vehicle's full useful life, we will tell you within 
five working days after receiving your report. In this case we will 
decide whether production-line testing will be enough for us to 
evaluate the change or whether you need to do more testing.
    (2) Unless we require more testing, you may show compliance by 
testing production-line vehicles or engines as described in this 
subpart.
    (3) We will issue a new or updated certificate of conformity when 
you have met these requirements.


Sec. 1051.345  What production-line testing records must I send to EPA?

    (a) Within 30 calendar days of the end of each calendar quarter, 
send us a report with the following information:
    (1) Describe any facility used to test production-line vehicles or 
engines and state its location.
    (2) State the total U.S.-directed production volume and number of 
tests for each engine family.
    (3) Describe how you randomly selected vehicles or engines.
    (4) Describe your test vehicles or engines, including the engine 
family's identification and the vehicle's model year, build date, model 
number, identification number, and number of hours of operation before 
testing for each test vehicle or engine.
    (5) Identify where you accumulated hours of operation on the 
vehicles or engines and describe the procedure and schedule you used.
    (6) Provide the test number; the date, time and duration of 
testing; test procedure; initial test results before and after 
rounding; final test results; and final deteriorated test results for 
all tests. Provide the emission results for all measured pollutants. 
Include information for both valid and invalid tests and the reason for 
any invalidation.
    (7) Describe completely and justify any nonroutine adjustment, 
modification, repair, preparation, maintenance, or test for the test 
vehicle or engine if you did not report it separately under this 
subpart. Include the results of any emission measurements, regardless 
of the procedure or type of vehicle.
    (8) Provide the CumSum analysis required in Sec. 1051.315 for each 
engine family.
    (9) Report on each failed vehicle or engine as described in 
Sec. 1051.320.

[[Page 51231]]

    (10) State the date the calendar quarter ended for each engine 
family.
    (b) We may ask you to add information to your written report, so we 
can determine whether your new vehicles conform with the requirements 
of this subpart.
    (c) An authorized representative of your company must sign the 
following statement:

    We submit this report under Sections 208 and 213 of the Clean 
Air Act. Our production-line testing conformed completely with the 
requirements of 40 CFR part 1051. We have not changed production 
processes or quality-control procedures for the engine family in a 
way that might affect the emission control from production vehicles 
(or engines). All the information in this report is true and 
accurate, to the best of my knowledge. I know of the penalties for 
violating the Clean Air Act and the regulations. (Authorized Company 
Representative)

    (d) Send electronic reports of production-line testing to the 
Designated Officer using an approved information format. If you want to 
use a different format, send us a written request with justification 
for a waiver.
    (e) We will send copies of your reports to anyone from the public 
who asks for them. We will not release information about your sales or 
production volumes, which we will consider confidential under 40 CFR 
part 2.


Sec. 1051.350  What records must I keep?

    (a) Organize and maintain your records as described in this 
section. We may review your records at any time, so it is important to 
keep required information readily available.
    (b) Keep paper records of your production-line testing for one full 
year after you complete all the testing required for an engine family 
in a model year. You may use any additional storage formats or media if 
you like.
    (c) Keep a copy of the written reports described in Sec. 1051.345.
    (d) Keep the following additional records:
    (1) A description of all test equipment for each test cell that you 
can use to test production-line vehicles or engines.
    (2) The names of supervisors involved in each test.
    (3) The name of anyone who authorizes adjusting, repairing, 
preparing, or modifying a test vehicle or engine and the names of all 
supervisors who oversee this work.
    (4) If you shipped the vehicle or engine for testing, the date you 
shipped it, the associated storage or port facility, and the date the 
vehicle or engine arrived at the testing facility.
    (5) Any records related to your production-line tests that are not 
in the written report.
    (6) A brief description of any significant events during testing 
not otherwise described in the written report or in this section.
    (e) If we ask, you must give us projected or actual production 
figures for an engine family. We may ask you to divide your production 
figures by power rating, displacement, fuel type, or assembly plant (if 
you produce vehicles or engines at more than one plant).
    (f) Keep a list of vehicle or engine identification numbers for all 
the vehicles or engines you produce under each certificate of 
conformity. Give us this list within 30 days if we ask for it.
    (g) We may ask you to keep or send other information necessary to 
implement this subpart.

Subpart E--Testing In-Use Engines


Sec. 1051.401  What provisions apply for in-use testing of my vehicles 
or engines?

    We may conduct in-use testing of any vehicle or engine subject to 
the standards of this part. If we determine that a substantial number 
of vehicles or engines do not comply with the regulations of this part 
throughout their full useful life, we may order the manufacturer to 
conduct a recall as specified in 40 CFR part 1068.

Subpart F--Test Procedures


Sec. 1051.501  What procedures must I use to test my vehicles or 
engines?

    (a) For snowmobiles, use the equipment and procedures for spark-
ignition engines in part 1065 of this chapter to show your snowmobiles 
meet the duty-cycle emission standards in Sec. 1051.101. Measure HC, 
NOX, CO, and CO2 emissions using the dilute 
sampling procedures in part 1065 of this chapter. Use the duty cycle in 
Sec. 1051.505.
    (b) For motorcycles and ATVs, use the equipment, procedures, and 
duty cycle in 40 CFR part 86, subpart F, to show your vehicles meet the 
exhaust emission standards in Sec. 1051.102 or Sec. 1051.103. Measure 
HC, NOX, CO, and CO2. If you certify ATVs using 
the interim testing provisions of Sec. 1051.145, use the equipment, 
procedures, and duty cycle described or referenced in that section. 
Motorcycles and ATVs with engine displacement at or below 169 cc must 
use the driving schedule in paragraph (c) of Appendix I to part 86. All 
others must use the driving schedule in paragraph (b) of Appendix I to 
part 86.
    (c) Use the fuels and lubricants specified in 40 CFR part 1065, 
subpart C, for all the testing and service accumulation we require in 
this part.
    (d) You may use special or alternate procedures, as described in 
Sec. 1065.10 of this chapter.
    (e) We may reject data you generate using alternate procedures if 
later testing with the procedures in part 1065 of this chapter shows 
contradictory emission data.


Sec. 1051.505  What special provisions apply for testing snowmobiles?

    Use the following special provisions for testing snowmobiles:
    (a) Measure emissions by testing the engine on a dynamometer with 
the steady-state duty cycle described in Table 1 of this section.
    (b) During idle mode, operate the engine with the following 
parameters:
    (1) Hold the speed within your specifications.
    (2) Keep the throttle fully closed.
    (3) Keep engine torque under 5 percent of the peak torque value at 
maximum test speed.
    (c) For the full-load operating mode, operate the engine at its 
maximum fueling rate.
    (d) Keep the test engine's intake air between -15 deg. C and -
5 deg. C (5 deg. F and 23 deg. F). Ambient temperatures during testing 
must be between -15 deg. C and 30 deg. C (5 deg. F and 86 deg. F).
    (e) See part 1065 of this chapter for detailed specifications of 
tolerances and calculations.
    (f) Table 1 follows:

                          Table 1 of Sec.  1051.501.--5-mode Duty Cycle for Snowmobiles
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                 Engine                   time in     Weighting
                          Mode No.                               speed        Torque        mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1...........................................................          100          100          5.0         0.12
----------------------------------------------------------------------------------------------------------------

[[Page 51232]]

 
2...........................................................           85           51          5.0         0.27
----------------------------------------------------------------------------------------------------------------
3...........................................................           75           33          5.0         0.25
----------------------------------------------------------------------------------------------------------------
4...........................................................           65           19          5.0         0.31
----------------------------------------------------------------------------------------------------------------
5...........................................................         Idle            0          5.0         0.05
----------------------------------------------------------------------------------------------------------------

Sec. 1051.520  How do I perform durability testing?

    This section applies for durability testing to determine 
deterioration factors. A small-volume manufacturer may omit durability 
testing if it uses our assigned deterioration factors that we establish 
based on our projection of the likely deterioration in the performance 
of specific emission controls.
    (a) Calculate your deterioration factor by testing a vehicles or 
engine that is representative of your engine family at a low-hour test 
point and the end of its useful life. You may also test at intermediate 
points.
    (b) Operate the vehicle or engine over a representative duty cycle 
for a period at least as long as the useful life (in hours or 
kilometers). You may operate the vehicle or engine continuously.
    (c) You may only perform the scheduled emission-related maintenance 
specified in Sec. 1051.125. You may not perform any unscheduled 
maintenance during durability testing unless we approve it in advance.
    (d) Use a linear least-squares fit of your test data for each 
pollutant to calculate your deterioration factor.

Subpart G--Compliance Provisions


Sec. 1051.601  What compliance provisions apply to these vehicles?

    Engine and vehicle manufacturers, as well as owners, operators, and 
rebuilders of these vehicles, and all other persons, must observe the 
requirements and prohibitions in part 1068 of this chapter. The 
compliance provisions in this subpart apply only to the vehicles we 
regulate in this part.


Sec. 1051.605  What are the provisions for exempting vehicles from the 
requirements of this part if they use engines you have certified under 
the motor-vehicle program or the Large Spark-ignition (SI) program?

    (a) This section applies to you if you are the manufacturer of the 
engine. See Sec. 1051.610 if you are not the engine manufacturer.
    (b) The only requirements or prohibitions from this part that apply 
to a vehicle that is exempt under this section are in this section and 
Sec. 1051.610.
    (c) If you meet all the following criteria regarding your new 
vehicle, you are exempt under this section:
    (1) You must produce it using an engine covered by a valid 
certificate of conformity under 40 CFR part 86 or part 1048.
    (2) You must not make any changes to the certified engine that we 
could reasonably expect to increase its exhaust or evaporative 
emissions. For example, if you make any of the following changes to one 
of these engines, you do not qualify for this exemption:
    (i) Change any fuel system or evaporative system parameters from 
the certified configuration (this does not apply to refueling emission 
controls).
    (ii) Change any other emission-related components.
    (iii) Modify or design the engine cooling system so that 
temperatures or heat rejection rates are outside the original engine's 
specified ranges.
    (3) You must make sure the engine still has the label we require 
under 40 CFR part 86 or part 1048.
    (4) You must make sure that fewer than 50 percent of the engine 
model's total sales, from all companies, are used in recreational 
vehicles.
    (d) If you produce both the engine and vehicle under this 
exemption, you must do all of the following to keep the exemption 
valid:
    (1) Make sure the original emission label is intact.
    (2) Add a permanent supplemental label to the engine in a position 
where it will remain clearly visible after installation in the vehicle. 
In your engine label, do the following:
    (i) Include the heading: ``Recreational Vehicle Emission Control 
Information''.
    (ii) Include your full corporate name and trademark.
    (iii) State: ``THIS ENGINE WAS ADAPTED FOR RECREATIONAL USE WITHOUT 
AFFECTING ITS EMISSION CONTROLS.''.
    (iv) State the date you finished installing (month and year).
    (3) Make the original and supplemental labels readily visible after 
the engine is installed in the vehicle or, if vehicle obscures the 
engine's labels, make sure the vehicle manufacturer attaches duplicate 
labels, as described in Sec. 1068.105 of this chapter.
    (4) Send the Designated Officer a signed letter by the end of each 
calendar year (or less often if we tell you) with all the following 
information:
    (i) Identify your full corporate name, address, and telephone 
number.
    (ii) List the models you expect to produce under this exemption in 
the coming year.
    (iii) State: ``We produce each listed model for recreational 
application without making any changes that could increase its 
certified emission levels, as described in 40 CFR 1051.605.''.
    (e) If your vehicles do not meet the criteria listed in paragraph 
(c) of this section, they will be subject to the standards and 
prohibitions of this part. Producing these vehicles without a valid 
exemption or certificate of conformity would violate the prohibitions 
in Sec. 1068.100 of this chapter.
    (f) If we request it, you must send us emission test data on the 
applicable recreational duty cycle(s) (see Secs. 1051.505 and 
1051.510). You may include the data in your application for 
certification or in your letter requesting the exemption.
    (g) Vehicles exempted under this section are subject to all the 
requirements affecting engines and vehicles under 40 CFR part 86 or 
part 1048, as applicable. The requirements and restrictions of 40 CFR 
part 86 or 1048 apply to anyone manufacturing these engines, anyone 
manufacturing vehicles that use these engines, and all other persons in 
the same manner as if these engines were used in a motor vehicle or 
other nonrecreational application.

[[Page 51233]]

Sec. 1051.610  What are the provisions for producing recreational 
vehicles with engines already certified under the motor-vehicle program 
or the Large SI program?

    (a) You may produce a recreational vehicle using a motor vehicle 
engine, or a Large SI engine if you meet three criteria:
    (1) The engine or vehicle is certified to 40 CFR part 86 or part 
1048.
    (2) The engine is not adjusted outside the manufacturer's 
specifications.
    (3) The engine or vehicle is not modified in any way that may 
affect its emission control. This applies to exhaust and evaporative 
emission controls, but not refueling emission controls.
    (b) This section does not apply if you manufacture the engine 
yourself; see Sec. 1051.605.


Sec. 1051.615  What are the special provisions for certifying small 
recreational engines?

    (a) If an off-highway motorcycle or ATV has an engine with total 
displacement of 70 cc or less, you may choose for these engines to meet 
the Phase 1 emission standards from 40 CFR part 90 that apply to Class 
I nonhandheld engines instead of the requirements of this part. In this 
case, all the requirements and prohibitions of 40 CFR part 90 relevant 
to Class I engines meeting Phase 1 standards apply to these engines and 
vehicles, with the following additional provisions:
    (1) If you qualify as a small-volume manufacturer under this part, 
emission standards apply beginning with the 2008 model year. Otherwise, 
emission standards apply beginning with the 2006 model year.
    (2) If you qualify as a small-volume manufacturer under this part, 
the provisions of Sec. 1068.241 of this chapter apply to these engines.
    (3) The provisions of Sec. 1068.240 of this chapter apply to these 
engines.
    (b) If you do not certify the engines under 40 CFR part 90, then 
all the requirements and prohibitions of this part apply to these 
engines and vehicles.
    (c) Once emission standards apply, producing these engines or 
vehicles without a valid exemption or certificate of conformity under 
this part or part 90 of this chapter would violate the prohibitions in 
Sec. 1068.101 of this chapter.


Sec. 1051.620  When may a manufacturer introduce into commerce an 
uncertified recreational vehicle to be used for competition?

    (a) You may introduce into commerce a new recreational vehicle that 
is to be used for competition if we grant you an exemption under this 
section.
    (b) We will exempt vehicles that we determine will be used solely 
for competition. The basis of our determinations are described in 
paragraphs (b)(1) and (b)(2) and (c) of this section.
    (1) Off-highway motorcycles. Motorcycles that are marketed and 
labeled as only for competitive use and which meet at least four of the 
criteria listed in paragraphs (b)(1)(i) through (v) of this section are 
considered to be used solely for competition, except in cases where 
other information is available that indicates that they are not used 
solely for competition. The following features are indicative of 
motorcycles used solely for competition:
    (i) The absence of a headlight or other lights.
    (ii) The absence of a spark arrestor.
    (iii) The absence of manufacturer warranty.
    (iv) Suspension travel greater than 10 inches.
    (v) Engine displacement greater than 50 cc.
    (2) Snowmobiles and ATVs. Snowmobiles and ATVs meeting all of the 
following criteria are considered to be used solely for competition, 
except in cases where other information is available that indicates 
that they are not used solely for competition:
    (i) The vehicle or vehicle may not be sold in any public 
dealership.
    (ii) Sale of the vehicle must be limited to professional racers or 
other qualified racers.
    (iii) The vehicle must have performance characteristics that are 
substantially superior to noncompetitive models.
    (c) Vehicles not meeting the applicable criteria listed in 
paragraph (b) of this section will be exempted only in cases where the 
manufacturer has clear and convincing evidence that the vehicles for 
which the exemption is being sought will be used solely for 
competition.
    (d) You must permanently label vehicles exempted under this section 
to clearly indicate that they are to be used only for competition. 
Failure to properly label a vehicle will void the exemption for that 
vehicle.
    (e) If we request it, you must provide us any information we need 
to determine whether the vehicles are used solely for competition.


Sec. 1051.625  What special provisions apply to unique snowmobile 
designs?

    (a) We may permit you to produce up to 300 snowmobiles per year 
that are certified to less stringent emission standards than those in 
Sec. 1051.101, as long as you meet all the conditions and requirements 
in this section.
    (b) To be eligible for these alternate standards, you must be a 
small-volume manufacturer.
    (c) To apply for alternate standards under this section, send the 
Designated Officer a written request. In your request, do two things:
    (1) Show that the snowmobile has unique design, calibration, or 
operating characteristics that make it atypical and infeasible or 
highly impractical to meet the emission standards in Sec. 1051.101, 
considering technology, cost, and other factors.
    (2) Identify the level of compliance you can achieve, including a 
description of available emission-control technologies and any 
constraints that may prevent more effective use of these technologies.
    (d) You must give us other relevant information if we ask for it.
    (e) An authorized representative of your company must sign the 
request and include the statement: ``All the information in this 
request is true and accurate, to the best of my knowledge.''
    (f) Send your request for this extension at least nine months 
before the relevant deadline. If different deadlines apply to companies 
that are not small-volume manufacturers, do not send your request 
before the regulations in question apply to the other manufacturers.
    (g) If we approve your request, we will set alternate standards for 
your qualifying snowmobiles. These standards will not be above 400 g/
kW-hr for CO or 150 g/kW-hr for HC.
    (h) You may produce these snowmobiles to meet the alternate 
standards we establish under this section as long as you continue to 
produce them at the same or lower emission levels.
    (i) Do not include snowmobiles you produce under this section in 
any averaging, banking, or trading calculations under Subpart H of this 
part.
    (j) You must meet all the requirements of this part, except as 
noted in this section.

Subpart H--Averaging, Banking, and Trading for Certification


Sec. 1051.701  General provisions.

    (a) You may average, bank, and trade emission credits for 
certification as described in this subpart to meet the average 
standards of this part. To do this you must show that your average 
emission levels are below the applicable standards in subpart B of this 
part, or that you have sufficient credits to offset a credit deficit 
for the model year (as calculated in Sec. 1051.720).

[[Page 51234]]

    (b) There are separate averaging, banking, and trading programs for 
snowmobiles, ATVs, and off-highway motorcycles. You may not exchange 
credits from engine families of one type of these vehicles with those 
from engine families of another type. You may also not exchange credits 
with other families of the same type if you use different measurement 
procedures for the different engine families (for example, ATVs 
certified to chassis-based vs. engine-based standards).
    (c) The definitions of Subpart I of this part apply to this 
subpart. The following definitions also apply:
    (1) Average standard means the standard that applies on average to 
all your vehicle under this part.
    (2) Broker means any entity that facilitates a trade between a 
buyer and seller.
    (3) Buyer means the entity that receives credits as a result of 
trade or transfer.
    (4) Reserved credits means credits generated but not yet verified 
by EPA in the end of year report review.
    (5) Seller means the entity that provides credits during a trade or 
transfer.
    (d) Do not include any exported vehicles in the certification 
averaging, banking, and trading program. Include only vehicles 
certified under this part.


Sec. 1051.705  How do I average emission levels?

    (a) As specified in subpart B of this part, certify each vehicle to 
a family emission limit (FEL).
    (b) Calculate a preliminary average emission level according to 
Sec. 1051.720 using projected production volumes for your application 
for certification.
    (c) After the end of your model year, calculate a final average 
emission level according to Sec. 1051.720 for each type of recreational 
vehicle or engine you manufacture or import. Use actual production 
volumes.
    (d) If your preliminary average emission level is below the 
allowable average standard, see Sec. 1051.710 for information about 
generating and banking emission credits. These credits will be 
considered reserved until verified by EPA during the end of year report 
review.


Sec. 1051.710  How do I generate and bank emission credits?

    (a) If your average emission level is below the average standard, 
you may calculate credits according to Sec. 1051.720.
    (b) You may generate credits if you are a certifying manufacturer.
    (c) You may bank unused emission credits, but only after the end of 
the calendar year and after we have reviewed your end-of-year reports. 
Credits you generate do not expire.
    (d) During the calendar year and before you send in your end-of-
year report, you may consider reserved any credits you originally 
designate for banking during certification. You may redesignate these 
credits for trading or transfer in your end-of-year report, but they 
are not valid to demonstrate compliance until verified.
    (e) You may use for averaging or trading any credits you declared 
for banking from the previous calendar year that we have not reviewed. 
But, we may revoke these credits later--following our review of your 
end-of-year report or audit actions. For example, this could occur if 
we find that credits are based on erroneous calculations; or that 
emission levels are misrepresented, unsubstantiated, or derived 
incorrectly in the certification process.


Sec. 1051.715  How do I trade emission credits?

    (a) You may trade only banked emission credits, not reserved 
credits.
    (b) You may trade banked credits to any certifying manufacturer.
    (c) If a negative credit balance results from a credit trade, both 
buyers and sellers are liable, except in cases involving fraud. We may 
void the certificates of all emission families participating in a 
negative trade.
    (1) If you buy credits but have not caused the negative credit 
balance, you must only supply more credits equivalent to the amount of 
invalid credits you used.
    (2) If you caused the credit shortfall, you may be subject to the 
requirements of Sec. 1051.730(b)(6).


Sec. 1051.720  How do I calculate my average emission level or emission 
credits?

    (a) Calculate your average emission level for each type of 
recreational vehicle or engine for each model year according to the 
following equation and round it to the nearest tenth of a g/km or g/kW-
hr. Use consistent units throughout the calculation.
    (1) Calculate the average emission level as:
    [GRAPHIC] [TIFF OMITTED] TP05OC01.007
    
Where:

FELi = The FEL to which the engine family is certified.
ULi = The useful life of the engine family.
Productioni = The number of vehicles in the engine family.

    (2) Use production projections for initial certification, and 
actual production volumes to determine compliance at the end of the 
model year.
    (b) If your average emission level is below the average standard, 
calculate credits available for banking according to the following 
equation and round them to the nearest tenth of a gram:
[GRAPHIC] [TIFF OMITTED] TP05OC01.008

    (c) If your average emission level is above the average standard, 
calculate your preliminary credit deficit according to the following 
equation, rounding to the nearest tenth of a gram:
[GRAPHIC] [TIFF OMITTED] TP05OC01.009


[[Page 51235]]




Sec. 1051.725  What information must I retain?

    (a) Maintain and keep five types of properly organized and indexed 
records for each group and for each emission family:
    (1) Model year and EPA emission family.
    (2) FEL.
    (3) Useful life.
    (4) Projected production volume for the model year.
    (5) Actual production volume for the model year.
    (b) Keep paper records of this information for three years from the 
due date for the end-of-year report. You may use any additional storage 
formats or media if you like.
    (c) Follow Sec. 1051.730 to send us the information you must keep.
    (d) We may ask you to keep or send other information necessary to 
implement this subpart.


Sec. 1051.730  What information must I report?

    (a) Include the following information in your applications for 
certification:
    (1) A statement that, to the best of your belief, you will not have 
a negative credit balance for any type of recreational vehicle or 
engine when all credits are calculated. This means that if you believe 
that your average emission level will be above the standard (i.e., that 
you will have a deficit for the model year), you must have banked 
credits (or project to have traded credits) to offset the deficit.
    (2) Detailed calculations of projected emission credits (zero, 
positive, or negative) based on production projections.
    (i) If you project a credit deficit, state the source of credits 
needed to offset the credit deficit.
    (ii) If you project credits, state whether you will reserve them 
for banking or transfer them.
    (b) At the end of each model year, send an end-of-year report.
    (1) Make sure your report includes three things:
    (i) Calculate in detail your average emission level and any 
emission credits (zero, positive, or negative) based on actual 
production volumes.
    (ii) If your average emission level is above the allowable average 
standard, state the source of credits needed to offset the credit 
deficit.
    (iii) If your average emission level is below the allowable average 
standard, state whether you will reserve the credits for banking or 
transfer them.
    (2) Base your production volumes on the point of first retail sale. 
This point is called the final product-purchase location.
    (3) Send end-of-year reports to the Designated Officer within 120 
days of the end of the model year. If you send reports later, you are 
violating the Clean Air Act.
    (4) If you generate credits for banking and you do not send your 
end-of-year reports within 120 days after the end of the model year, 
you may not use or trade the credits until we receive and review your 
reports. You may not use projected credits pending our review.
    (5) You may correct errors discovered in your end-of-year report, 
including errors in calculating credits according to the following 
table:

------------------------------------------------------------------------
          If . . .                And if . . .          Then we . . .
------------------------------------------------------------------------
(i) Our review discovers an   the discovery occurs  restore the credits
 error in your end-of-year     within 180 days of    for your use.
 report that increases your    receipt.
 credit balance.
------------------------------------------------------------------------
(ii) You discover an error    the discovery occurs  restore the credits
 in your report that           within 180 days of    for your use.
 increases your credit         receipt.
 balance.
------------------------------------------------------------------------
(iii) We or you discover an   the discovery occurs  do not restore the
 error in your report that     more than 180 days    credits for your
 increases your credit         after receipt.        use.
 balance.
------------------------------------------------------------------------
(iv) We discover an error in  at any time after     reduce your credit
 your report that reduces      your receipt.         balance.
 your credit balance.
------------------------------------------------------------------------

    (6) If our review of a your end-of year-report shows a negative 
balance, you may buy credits to bring your credit balance to zero. But 
you must buy 1.1 credits for each 1.0 credit needed. If enough credits 
are not available to bring your credit balance to zero, we may void the 
certificates for all families certified to standards above the 
allowable average.
    (c) Within 90 days of any credit trade or transfer, you must send 
the Designated Officer a report of the trade or transfer that includes 
three types of information:
    (1) The corporate names of the buyer, seller, and any brokers.
    (2) Information about the credits that depends on whether you trade 
or transfer them.
    (i) For trades, describe the banked credits being traded.
    (ii) For transfers, calculate the credits in detail and identify 
the source or use of the credits.
    (3) Copies of contracts related to credit trading or transfer from 
the buyer, seller, and broker, as applicable.
    (d) Include in each report a statement certifying the accuracy and 
authenticity of its contents.
    (e) We may void a certificate of conformity for any emission family 
if you do not keep the records this section requires or give us the 
information when we ask for it.

Subpart I--Definitions and Other Reference Information


Sec. 1051.801  What definitions apply to this part?

    The following definitions apply to this part. The definitions apply 
to all subparts unless we note otherwise. All undefined terms have the 
meaning the Act gives to them. The definitions follow:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.
    Adjustable parameter means any device, system, or element of design 
that someone can adjust (including those which are difficult to access) 
and that, if adjusted, may affect emissions or engine performance 
during emission testing or normal in-use operation.
    Aftertreatment means relating to any system, component, or 
technology mounted downstream of the exhaust valve or exhaust port 
whose design function is to reduce exhaust emissions.
    All-terrain vehicle means a nonroad vehicle with three or more 
wheels and a seat, designed for operation over rough terrain and 
intended primarily for

[[Page 51236]]

transportation. This includes both land-based and amphibious vehicles.
    Auxiliary emission-control device means any element of design that 
senses temperature, engine rpm, motive speed, transmission gear, 
atmospheric pressure, manifold pressure or vacuum, or any other 
parameter to activate, modulate, delay, or deactivate the operation of 
any part of the emission-control system. This also includes any other 
feature that causes in-use emissions to be higher than those measured 
under test conditions, except as we allow under this part.
    Broker means any entity that facilitates a trade of emission 
credits between a buyer and seller.
    Calibration means the set of specifications and tolerances specific 
to a particular design, version, or application of a component or 
assembly capable of functionally describing its operation over its 
working range.
    Certification means obtaining a certificate of conformity for an 
engine family that complies with the emission standards and 
requirements in this part.
    Compression-ignition means relating to a type of reciprocating, 
internal-combustion engine that is not a spark-ignition engine.
    Crankcase emissions means airborne substances emitted to the 
atmosphere from any part of the engine crankcase's ventilation or 
lubrication systems. The crankcase is the housing for the crankshaft 
and other related internal parts.
    Designated Officer means the Manager, Engine Compliance Programs 
Group (6403-J), U.S. Environmental Protection Agency, 1200 Pennsylvania 
Ave., Washington, DC 20460.
    Emission-control system means any device, system, or element of 
design that controls or reduces the regulated emissions from a vehicle.
    Emission-data vehicle means a vehicle or engine that is tested for 
certification.
    Emission-related maintenance means maintenance that substantially 
affects emissions or is likely to substantially affect emissions 
deterioration.
    Engine family means a group of vehicles with similar emission 
characteristics, as specified in Sec. 1051.230.
    Fuel system means all components involved in transporting, 
metering, and mixing the fuel from the fuel tank to the combustion 
chamber(s), including the fuel tank, fuel tank cap, fuel pump, fuel 
filters, fuel lines, carburetor or fuel-injection components, and all 
fuel-system vents.
    Good engineering judgment has the meaning we give it in Sec. 1068.5 
of this chapter.
    Hydrocarbon (HC) means the hydrocarbon group on which the emission 
standards are based for each fuel type. For gasoline- and LPG-fueled 
engines, HC means total hydrocarbon (THC). For natural gas-fueled 
engines, HC means nonmethane hydrocarbon (NMHC). For alcohol-fueled 
engines, HC means total hydrocarbon equivalent (THCE).
    Identification number means a unique specification (for example, 
model number/serial number combination) that allows someone to 
distinguish a particular vehicle or engine from other similar vehicle 
or engines.
    Manufacturer has the meaning given in section 216(1) of the Act. In 
general, this term includes any person who manufactures a vehicle or 
engine for sale in the United States or otherwise introduces a new 
vehicle or engine into commerce in the United States. This includes 
importers.
    Maximum test torque means the torque output observed with the 
maximum fueling rate possible at a given speed.
    Model year means one of the following things:
    (1) For freshly manufactured vehicles or engines (see definition of 
``new'' paragraph (1)), model year means one of the following:
    (i) Calendar year.
    (ii) Your annual new model production period if it is different 
than the calendar year. This must include January 1 of the calendar 
year for which the model year is named. It may not begin before January 
2 of the previous calendar year and it must end by December 31 of the 
named calendar year.
    (2) For a vehicle or engine that is converted to a nonroad vehicle 
or engine after being placed into service in a motor vehicle, model 
year means the calendar year in which the vehicle or engine was 
originally produced (see definition of ``new'' paragraph (2)).
    (3) For a nonroad vehicle excluded under Sec. 1051.5 that is later 
converted to operate in an application that is not excluded, model year 
means the calendar year in which the vehicle was originally produced 
(see definition of ``new'' paragraph (3)).
    (4) For engines that are not freshly manufactured but are installed 
in new nonroad vehicle, model year means the calendar year in which the 
engine is installed in the new nonroad vehicle (see definition of 
``new'' paragraph (4)).
    (5) For a vehicle or engine modified by an importer (not the 
original manufacturer) who has a certificate of conformity for the 
imported vehicle or engine (see definition of ``new'' paragraph (5)), 
model year means one of the following:
    (i) The calendar year in which the importer finishes modifying and 
labeling the vehicle or engine.
    (ii) Your annual production period for producing vehicles or 
engines if it is different than the calendar year; follow the 
guidelines in paragraph (1)(ii) of this definition.
    (6) For a vehicle or engine you import that does not meet the 
criteria in paragraphs (1) through (5) of the definition of ``new'' 
model year means the calendar year in which the manufacturer completed 
the original assembly of the vehicle or engine. In general, this 
applies to used equipment that you import without conversion or major 
modification.
    Motor vehicle has the meaning we give in Sec. 85.1703(a) of this 
chapter. In general, motor vehicle means a self-propelled vehicle that 
can transport one or more people or any material, but does not include 
any of the following:
    (1) Vehicles having a maximum ground speed over level, paved 
surfaces no higher than 40 km per hour (25 miles per hour).
    (2) Vehicles that lack features usually needed for safe, practical 
use on streets or highways--for example, safety features required by 
law, a reverse gear (except for motorcycles), or a differential.
    (3) Vehicles whose operation on streets or highways would be 
unsafe, impractical, or highly unlikely. Examples are vehicles with 
tracks instead of wheels, very large size, or features associated with 
military vehicles, such as armor or weaponry.
    New means relating to any of the following vehicles or engines:
    (1) A freshly manufactured engine or vehicle for which the ultimate 
buyer has never received the equitable or legal title. The vehicle or 
engine is no longer new when the ultimate buyer receives this title or 
the product is placed into service, whichever comes first.
    (2) An engine originally manufactured as a motor vehicle engine 
that is later intended to be used in a piece of nonroad equipment. The 
engine is no longer new when it is placed into nonroad service.
    (3) A nonroad engine that has been previously placed into service 
in an application we exclude under Sec. 1051.5, where that engine is 
installed in a piece of equipment for which these exclusions do not 
apply. The engine is no longer new when it is placed into nonroad 
service.

[[Page 51237]]

    (4) An engine not covered by paragraphs (1) through (3) of this 
definition that is intended to be installed in new nonroad equipment. 
The engine is no longer new when the ultimate buyer receives a title 
for the equipment or the product is placed into service, whichever 
comes first.
    (5) An imported nonroad vehicle or engine covered by a certificate 
of conformity issued under this part, where someone other than the 
original manufacturer modifies the vehicle or engine after its initial 
assembly and holds the certificate. The vehicle or engine is no longer 
new when it is placed into nonroad service.
    (6) An imported nonroad vehicle or engine that is not covered by a 
certificate of conformity issued under this part at the time of 
importation.
    New nonroad equipment means either of the following things:
    (1) A nonroad vehicle or other piece of equipment for which the 
ultimate buyer has never received the equitable or legal title. The 
product is no longer new when the ultimate buyer receives this title or 
the product is placed into service, whichever comes first.
    (2) An imported nonroad piece of equipment with a vehicle or engine 
not covered by a certificate of conformity issued under this part at 
the time of importation and manufactured after the date for applying 
the requirements of this part.
    Noncompliant vehicle or engine means a vehicle or engine that was 
originally covered by a certificate of conformity, but is not in the 
certified configuration or otherwise does not comply with the 
conditions of the certificate.
    Nonconforming vehicle or engine means a vehicle or engine not 
covered by a certificate of conformity that would otherwise be subject 
to emission standards.
    Nonmethane hydrocarbon means the difference between the emitted 
mass of total hydrocarbons and the emitted mass of methane.
    Nonroad means relating to nonroad vehicle or engines.
    Nonroad engine has the meaning given in Sec. 1068.25 of this 
chapter. In general this means all internal- combustion engines except 
motor vehicle engines, stationary engines, or engines used solely for 
competition. This part only applies to nonroad engines that are used in 
snowmobiles, off-highway motorcycles, and ATVs (see Sec. 1051.5).
    Off-highway motorcycle means a two-wheeled vehicle with a nonroad 
engine and a seat (excluding marine vessels and aircraft). Note: 
highway motorcycles are regulated under 40 CFR part 86.
    Oxides of nitrogen means nitric oxide (NO) and nitrogen dioxide 
(NO2). Oxides of nitrogen are expressed quantitatively as if 
the NO were in the form of NO2 (assume a molecular weight 
for oxides of nitrogen equivalent to that of NO2).
    Phase 1 means relating to Phase 1 standards of Sec. 1051.101 or 
Sec. 1051.103.
    Phase 2 means relating to Phase 2 standards of Sec. 1051.101 or 
Sec. 1051.103.
    Physically adjustable range means the entire range over which an 
engine parameter can be adjusted, except as modified by 
Sec. 1051.115(c).
    Placed into service means used for its intended purpose.
    Recreational means, for purposes of this part, relating to 
snowmobiles, all-terrain vehicles, and off-highway motorcycles we 
regulate under this part. Note that 40 CFR part 90 applies to other 
recreational vehicles.
    Revoke means to discontinue the certificate for an engine family. 
If we revoke a certificate, you must apply for a new certificate before 
continuing to produce the affected vehicles or engines. This does not 
apply to vehicles or engines you no longer possess.
    Round means to round numbers according to ASTM E29-93a, which is 
incorporated by reference (see Sec. 1051.810), unless otherwise 
specified.
    Scheduled maintenance means adjusting, repairing, removing, 
disassembling, cleaning, or replacing components or systems that is 
periodically needed to keep a part from failing or malfunctioning. It 
also may mean actions you expect are necessary to correct an overt 
indication of failure or malfunction for which periodic maintenance is 
not appropriate.
    Small-volume manufacturer means:
    (1) For motorcycles and ATVs, a manufacturer with U.S.-directed 
production of fewer than 5,000 off-road motorcycles and ATVs (combined 
number) in 2001. For manufacturers owned by a parent company, the limit 
applies to the production of the parent company and all of its 
subsidiaries.
    (2) For snowmobiles, a manufacturer with annual U.S. directed 
production of fewer than 300 snowmobiles in 2001. For manufacturers 
owned by a parent company, the limit applies to the production of the 
parent company and all of its subsidiaries.
    Snowmobile means a vehicle designed to operate outdoors only over 
snow-covered ground, with a maximum width of 1.5 meters or less.
    Spark-ignition means relating to a type of engine with a spark plug 
(or other sparking device) and with operating characteristics 
significantly similar to the theoretical Otto combustion cycle. Spark-
ignition engines usually use a throttle to regulate intake air flow to 
control power during normal operation.
    Stoichiometry means the proportion of a mixture of air and fuel 
such that the fuel is fully oxidized with no remaining oxygen. For 
example, stoichiometric combustion in gasoline engines typically occurs 
at an air-fuel mass ratio of about 14.7.
    Suspend means to temporarily discontinue the certificate for an 
engine family. If we suspend a certificate, you may not sell vehicles 
or engines from that engine family unless we reinstate the certificate 
or approve a new one.
    Test sample means the collection of vehicles or engines selected 
from the population of an engine family for emission testing.
    Test vehicle or engine means a vehicle or engine in a test sample.
    Total hydrocarbon means the combined mass organic compounds 
measured by our total hydrocarbon test procedure, expressed as a 
hydrocarbon with a hydrogen-to-carbon mass ratio of 1.85:1.
    Total hydrocarbon equivalent means the sum of the carbon mass 
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes, 
or other organic compounds that are measured separately as contained in 
a gas sample, expressed as petroleum-fueled engine hydrocarbons. The 
hydrogen-to-carbon ratio of the equivalent hydrocarbon is 1.85:1.
    Ultimate buyer means ultimate purchaser.
    Ultimate purchaser means, with respect to any new vehicle or 
engine, the first person who in good faith purchases such vehicle or 
engine for purposes other than resale.
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
    U.S.-directed production means the number of vehicle units, subject 
to the requirements of this part, produced by a manufacturer (and/or 
imported) for which the manufacturer has a reasonable assurance that 
sale was or will be made to ultimate buyers in the Unites States.
    Useful life means the period during which the vehicle is designed 
to properly function in terms of reliability and fuel consumption, 
without being remanufactured, specified as a number of hours of 
operation or calendar years.

[[Page 51238]]

It is the period during which a new vehicle is required to comply with 
all applicable emission standards.
    Void means to invalidate a certificate or an exemption. If we void 
a certificate, all the vehicles produced under that engine family for 
that model year are considered noncompliant, and you are liable for 
each vehicle produced under the certificate and may face civil or 
criminal penalties or both. If we void an exemption, all the vehicles 
produced under that exemption are considered uncertified (or 
nonconforming), and you are liable for each vehicle produced under the 
exemption and may face civil or criminal penalties or both. You may not 
produce any additional vehicles using the voided exemption.


Sec. 1051.805  What symbols, acronyms, and abbreviations does this part 
use?

    The following symbols, acronyms, and abbreviations apply to this 
part:

 deg.C  degrees Celsius.
ASTM  American Society for Testing and Materials.
ATV  all-terrain vehicle.
cc  cubic centimeters.
CO  carbon monoxide.
CO2  carbon dioxide.
EPA  Environmental Protection Agency.
g/kW-hr  grams per kilowatt-hour.
LPG  liquefied petroleum gas.
m  meters.
mm Hg  millimeters of mercury.
NMHC  nonmethane hydrocarbons.
NOX  oxides of nitrogen (NO and NO2).
rpm  revolutions per minute.
SAE  Society of Automotive Engineers.
SI  spark-ignition.
THC  total hydrocarbon.
THCE  total hydrocarbon equivalent.
U.S.C.  United States Code.


Sec. 1051.810  What materials does this part reference?

    We have incorporated by reference the documents listed in this 
section. The Director of the Federal Register approved the 
incorporation by reference as prescribed in 5 U.S.C. 552(a) and 1 CFR 
part 51. Anyone may inspect copies at U.S. EPA, OAR, Air and Radiation 
Docket and Information Center, 401 M Street, SW., Washington, DC 20460 
or Office of the Federal Register, 800 N. Capitol St., NW., 7th Floor, 
Suite 700, Washington, DC.
    (a) ASTM material. Table 1 of Sec. 1051.810 lists material from the 
American Society for Testing and Materials that we have incorporated by 
reference. The first column lists the number and name of the material. 
The second column lists the sections of this part where we reference 
it. The second column is for information only and may not include all 
locations. Anyone may receive copies of these materials from American 
Society for Testing and Materials, 1916 Race St., Philadelphia, PA 
19103. Table 1 follows:

               Table 1 of Sec.  1051.810.--ASTM Materials
------------------------------------------------------------------------
           Document No. and name                 Part 1051 reference
------------------------------------------------------------------------
ASTM  E29-93a, Standard Practice for Using  1051.240, 1051.315,
 Significant Digits in Test Data to          1051.345, 1051.410,
 Determine Conformance with Specifications.  1051.415.
------------------------------------------------------------------------

    (b) ISO material. [Reserved]


Sec. 1051.815  How should I request EPA to keep my information 
confidential?

    (a) Clearly show what you consider confidential by marking, 
circling, bracketing, stamping, or some other method. We will store 
your confidential information as described in 40 CFR part 2. Also, we 
will disclose it only as specified in 40 CFR part 2.
    (b) If you send us a second copy without the confidential 
information, we will assume it contains nothing confidential whenever 
we need to release information from it.
    (c) If you send us information without claiming it is confidential, 
we may make it available to the public without further notice to you, 
as described in Sec. 2.204 of this chapter.


Sec. 1051.820  How do I request a public hearing?

    (a) File a request for a hearing with the Designated Officer within 
15 days of a decision to deny, suspend, revoke, or void your 
certificate. If you ask later, we may give you a hearing for good 
cause, but we do not have to.
    (b) Include the following in your request for a public hearing:
    (1) State which engine family is involved.
    (2) State the issues you intend to raise. We may limit these 
issues, as described elsewhere in this part.
    (3) Summarize the evidence supporting your position and state why 
you believe this evidence justifies granting or reinstating the 
certificate.
    (c) We will hold the hearing as described in 40 CFR part 1068, 
subpart F.

PART 1065--TEST PROCEDURES AND EQUIPMENT

Subpart A--Applicability and General Provisions
Sec.
1065.1  Applicability.
1065.5  Overview of test procedures.
1065.10  Other test procedures.
1065.15  Engine testing.
1065.20  Limits for test conditions.
Subpart B--Equipment and Analyzers
1065.101  Overview. [Reserved]
1065.105  Dynamometer and engine equipment specifications.
1065.110  Exhaust gas sampling system; spark-ignition (SI) engines.
1065.115  Exhaust gas sampling system; compression-ignition (CI) 
engines. [Reserved]
1065.120  Analyzers (overview/general response characteristics).
1065.125  Hydrocarbon analyzers.
1065.130  NOX analyzers.
1065.135  CO and CO2 analyzers.
1065.140  Smoke meters. [Reserved]
1065.145  Flow meters.
Subpart C--Test Fuels and Analytical Gases
1065.201  General requirements for test fuels.
1065.205  Test fuel specifications for distillate diesel fuel. 
[Reserved]
1065.210  Test fuel specifications for gasoline.
1065.215  Test fuel specifications for natural gas.
1065.220  Test fuel specifications for liquefied petroleum gas.
1065.240  Lubricating oils.
1065.250  Analytical gases.
Subpart D--Analyzer and Equipment Calibrations
1065.301  Overview.
1065.305  Torque calibration.
Subpart E--Engine Preparation and Service Accumulation
1065.405  Preparing and servicing a test engine.
1065.410   Service limits for stabilized test engines.
1065.420   Durability demonstration.
Subpart F--Running an Emission Test
1065.500   Overview of the engine dynamometer test procedures.
1065.510   Engine mapping procedures.
1065.515   Transient test cycle generation.
1065.520   Engine starting, restarting, and shutdown.
1065.525   Engine dynamometer test run.
1065.530   Test cycle validation criteria.
Subpart G--Data Analysis and Calculations
1065.601   Overview.
1065.605   Required records.
1065.610   Bag sample analysis.
1065.615   Bag sample calculations.
Subpart H--Particulate Measurements  [Reserved]
Subpart I--Testing With Oxygenated Fuels  [Reserved]
Subpart J--Field Testing
1065.901   Applicability.
1065.905   General provisions.
1065.910   Measurement accuracy and precision.
1065.915   Equipment specifications for SI engines.

[[Page 51239]]

1065.920   Equipment setup and test run for SI engines.
1065.925   Calculations.
1065.930   Specifications for mass air flow sensors.
1065.935   Specifications for THC analyzers.
1065.940   Specifications for NOX and air/fuel sensors.
1065.945   Specifications for CO analyzers.
1065.950   Specifications for speed and torque measurement.
Subpart K--Definitions and Other Reference Information
1065.1000   Definitions.
1065.1005   Symbols, acronyms, and abbreviations.
1065.1010   Reference materials.
1065.1015   Confidential information.

    Authority: 42 U.S.C. 7401-7671(q).

Subpart A--Applicability and General Provisions


Sec. 1065.1  Applicability.

    (a) This part describes the procedures that apply to testing that 
we require for the following engines or for equipment using the 
following engines:
    (1) Large nonroad spark-ignition engines we regulate under 40 CFR 
part 1048.
    (2) Snowmobiles, all-terrain vehicles, and off-highway motorcycles 
we regulate under 40 CFR part 1051.
    (b) This part does not apply to any of the following engine or 
vehicle categories:
    (1) Light-duty highway vehicles (see 40 CFR part 86).
    (2) Heavy-duty highway Otto-cycle engines (see 40 CFR part 86).
    (3) Heavy-duty highway diesel engines (see 40 CFR part 86).
    (4) Aircraft engines (see 40 CFR part 87).
    (5) Locomotive engines (see 40 CFR part 92).
    (6) Land-based nonroad diesel engines (see 40 CFR part 89).
    (7) General marine engines (see 40 CFR parts 89 and 94).
    (8) Marine outboard and personal watercraft engines (see 40 CFR 
part 91).
    (9) Small nonroad spark-ignition engines (see 40 CFR part 90).
    (c) This part is addressed to you as an engine manufacturer, but it 
applies equally to anyone who does testing for you, and to us when we 
conduct testing to determine if you comply with the applicable emission 
standards.
    (d) Follow the provisions of the standard-setting part if they are 
different than any of the provisions in this part.
    (e) For equipment subject to this part and regulated under 
equipment-based standards, interpret the term ``engine'' in this part 
to include equipment (see 40 CFR 1068.25).


Sec. 1065.5  Overview of test procedures.

    (a) Some of the provisions of this part do not apply to all types 
of engines. For example, measurement of particulate matter is not 
generally required for spark-ignition engines. See the standard-setting 
part to determine which provisions in this part may not apply. Before 
using the procedures in this part, you should see the standard-setting 
part to answer at least the following questions:
    (1) How should I warm up the test engine before measuring 
emissions? Do I need to measure cold-start emissions during this warm-
up segment of the duty cycle?
    (2) Do I need to measure emissions while the hot-stabilized engine 
operates over a transient schedule?
    (3) Which speed and load points should I include for the steady-
state segment of the duty cycle?
    (4) Which exhaust constituents do I need to measure?
    (5) Are there applicable emission standards that affect the limits 
on engine operation and ambient conditions?
    (6) Do emission standards apply to field testing under normal 
operation?
    (7) Does testing require full-flow dilute sampling? Is raw sampling 
acceptable? Is partial-flow dilute sampling acceptable?
    (8) Do any unique specifications apply for test fuels?
    (9) What maintenance steps may I plan to do before or between tests 
on an emission-data engine?
    (10) Are there any unique requirements related to stabilizing 
emission levels on a new engine?
    (11) Are there any unique requirements related to testing 
conditions, such as ambient temperatures or pressures?
    (b) The following table shows how this part divides testing 
specifications into subparts:

------------------------------------------------------------------------
             Subpart . . .                 This subpart describes . . .
------------------------------------------------------------------------
Subpart A..............................  General provisions for test
                                          procedures.
------------------------------------------------------------------------
Subpart B..............................  Equipment for performing tests.
------------------------------------------------------------------------
Subpart C..............................  Fuels and analytical gases for
                                          performing the tests.
------------------------------------------------------------------------
Subpart D..............................  How to calibrate test
                                          equipment.
------------------------------------------------------------------------
Subpart E..............................  How to prepare engines for
                                          testing, including service
                                          accumulation.
------------------------------------------------------------------------
Subpart F..............................  How to do an emission test.
------------------------------------------------------------------------
Subpart G..............................  How to calculate emission
                                          levels from measured data.
------------------------------------------------------------------------
Subpart H..............................  How to measure particulate
                                          emissions.
------------------------------------------------------------------------
Subpart I..............................  How to measure emissions from
                                          engines fueled with an
                                          oxygenated fuel such as
                                          methanol or ethanol.
------------------------------------------------------------------------
Subpart J..............................  How to do field testing of in-
                                          use vehicles and equipment.
------------------------------------------------------------------------
Subpart K..............................  Definitions, abbreviations, and
                                          other reference information
                                          that applies to emission
                                          testing.
------------------------------------------------------------------------

Sec. 1065.10  Other test procedures.

    (a) Your testing. These test procedures apply for all testing that 
you do to show compliance with emission standards, with a few 
exceptions listed in this section.
    (b) Our testing. These test procedures generally apply for testing 
that we do to determine if your engines comply with applicable emission 
standards. We may conduct other testing as allowed by the Act.
    (c) Exceptions. You may be allowed or required to use test 
procedures other than those specified in this part in the following 
cases:
    (1) The test procedures in this part are intended to produce 
emission measurements equivalent to those that would result from 
measuring emissions during in-use operation using the same engine 
configuration installed in a piece of equipment. If good engineering 
judgment indicates that use of the procedures in this part for an 
engine would result in measurements that are not representative of in-
use operation of that engine, you must notify us. If we determine that 
using these procedures would result in measurements that are 
significantly unrepresentative and that changes to the procedures will 
result in more representative measurements that do not decrease the 
stringency of emission standards, we will specify changes to the 
procedures. In your notification to us, you should recommend specific 
changes you think are necessary.
    (2) You may ask to use emission data collected using other test 
procedures, such as those of the California Air Resources Board or the 
International Organization for Standardization. We will allow this only 
if you show us that these data are equivalent to data collected using 
our test procedures.

[[Page 51240]]

    (3) You may ask to use alternate procedures that produce 
measurements equivalent to those obtained using the specified 
procedures. In this case, send us a written request showing that your 
alternate procedures are equivalent to the test procedures of this 
part. If you prove to us that the procedures are equivalent, we will 
allow you to use them. You may not use alternate procedures until we 
approve them. (Note: We may issue broad approval to all manufacturers 
for a specific change in the test procedures that allows you to use the 
alternate procedure without additional approval.)
    (4) You may ask to use special test procedures if your engine 
cannot be tested using the specified test procedures (for example, it 
is incapable of operating on the specified transient cycle). In this 
case, send us a written request showing that you cannot satisfactorily 
test your engines using the test procedures of this part. We will allow 
you to use special test procedures if we determine that they would 
produce emission measurements that are representative of those that 
would result from measuring emissions during in-use operation. You may 
not use special procedures until we approve them.
    (5) Other parts in this chapter (i.e., the parts that define 
emission standards for your engines) may contain other specifications 
for test procedures that apply for your engines. In cases where it is 
not possible to comply with both the test procedures in those parts and 
the test procedures in this part, you must comply with the test 
procedures specified in the standard-setting part. Those other parts 
may also allow you to deviate from the test procedures of this part for 
other reasons.


Sec. 1065.15  Engine testing.

    (a) This part describes the procedures for performing exhaust 
emission tests on engines that must meet emission standards.
    (b) Testing generally consists of engine operation on a laboratory 
dynamometer over a prescribed sequence. (Subpart J of this part 
contains provisions for in-use testing of engines installed in vehicles 
or equipment.) You need to sample and analyze the exhaust gases 
generated during engine operation to determine the concentration of the 
regulated pollutants.
    (c) Concentrations are converted into units of grams of pollutant 
per kilowatt-hour (g/kW-hr) for comparison with the emission standards 
that apply.


Sec. 1065.20  Limits for test conditions.

    (a) Unless specified elsewhere in this chapter, you may conduct 
tests to determine compliance with duty-cycle emission standards at 
ambient temperatures from 20 deg. C (68 deg. F) to 30 deg. C (86 deg. 
F), ambient pressures from 600 mm Hg to 775 mm Hg, and at any ambient 
humidity level.
    (b) Testing conducted to determine compliance with not-to-exceed 
standards may be conducted at ambient conditions specified in the 
standard-setting part.
    (c) For laboratory engine testing, you may heat and/or dehumidify 
the dilution air before it enters the CVS.
    (d) For laboratory engine testing, if the barometric pressure 
observed during the generation of the maximum torque curve changes by 
more than 25 mm Hg from the value measured at the beginning of the map, 
you must remap the engine. To have a valid test, the average barometric 
pressure observed during the exhaust emission test must be within 25 mm 
Hg of the average observed during the maximum torque curve generation.

Subpart B--Equipment and Analyzers


Sec. 1065.101  Overview. [Reserved]


Sec. 1065.105  Dynamometer and engine equipment specifications.

    (a) The engine dynamometer system must be capable of controlling 
engine torque and rpm simultaneously over the applicable test cycle(s). 
The system should be capable of following the torque and rpm schedules 
within the accuracy requirements specified in Sec. 1065.530; 
dynamometers that are not capable of meeting the accuracy requirements 
specified in Sec. 1065.530 may be used only with advance approval. For 
transient testing, engine torque and rpm command set points must be 
issued at 5 Hz or greater (10 Hz recommended) during the tests. 
Feedback engine torque and rpm must be recorded at least once every 
second during the test. In addition to these general requirements, for 
all testing, the engine or dynamometer readout signals for speed and 
torque must meet the following accuracy specifications:
    (1) Engine speed readout must be accurate to within 2 
percent of the absolute standard value. A 60-tooth (or greater) wheel 
in combination with a common mode rejection frequency counter is 
considered an absolute standard for engine or dynamometer speed.
    (2) Engine flywheel torque readout must be accurate to either 
within 3 percent of the NIST true value torque (as defined 
in Sec. 1065.305), or the following accuracies:

------------------------------------------------------------------------
                                          Engine flywheel torque readout
If the full-scale torque value is . . .        must be within . . .
------------------------------------------------------------------------
T  550 ft-lbs...............  2.5 ft-lbs of NIST
                                          true value.
------------------------------------------------------------------------
550  T  1050 ft-lbs.........  5.0 ft-lbs of NIST
                                          true value.
------------------------------------------------------------------------
T > 1050 ft-lbs........................  10.0 ft-lbs of NIST
                                          true value.
------------------------------------------------------------------------

    (3) Option: You may use internal dynamometer signals (i.e., 
armature current, etc.) for torque measurement, as long as you can show 
that the engine flywheel torque during the test cycle conforms to the 
accuracy specifications in paragraph (b)(2) of this section. Your 
measurement system must include compensation for increased or decreased 
flywheel torque due to the armature inertia during accelerations and 
decelerations in the test cycle.
    (b) To verify that the test engine has followed the test cycle 
correctly, you must collect the dynamometer or engine readout signals 
for speed and torque in a manner that allows a statistical correlation 
between the actual engine performance and the test cycle (see 
Sec. 1065.530). Normally this collection process would involve 
conversion of analog dynamometer or engine signals into digital values 
for storage in a computer. You must perform the conversion of 
dynamometer or engine values (computer or other) that are used to 
evaluate the validity of engine performance in relation to the test 
cycle while meeting the following criteria:
    (1) Speed values used for cycle evaluation are accurate to within 2 
percent of the dynamometer or engine speed readout value.
    (2) Engine flywheel torque values used for cycle evaluation are 
accurate to

[[Page 51241]]

within 2 percent of the dynamometer or engine flywheel torque readout 
value.
    (c) Option: For some systems it may be more convenient to combine 
the tolerances in paragraphs (a) and (b) of this section. You may do 
this if you use the root mean square method (RMS). The RMS values would 
then refer to accuracy in relationship to absolute standard or to NIST 
true values.
    (1) Speed values used for cycle evaluation must be accurate to 
within 2.8 percent of the absolute standard values, as 
defined in paragraph (a)(1) of this section.
    (2) Engine flywheel torque values used for cycle evaluation must be 
accurate to within 3.6 percent of NIST true values, as 
determined in Sec. 1065.305.


Sec. 1065.110  Exhaust gas sampling system; spark-ignition (SI) 
engines.

    (a) General. The exhaust gas sampling system described in this 
section is designed to measure the true mass of gaseous emissions in 
the exhaust of SI engines. Additional requirements apply for engines 
that use oxygenated fuels. In the CVS concept of measuring mass 
emissions, you must measure the total volume of the mixture of exhaust 
and dilution air and collect a continuously proportioned volume of 
sample for analysis. Determine the mass emissions from the sample 
concentration and total flow over the test period.
    (b) Critical flow venturi. The operation of the Critical Flow 
Venturi Constant-Volume Sampler (CFV-CVS) (see Figure B110-1) is based 
upon the principles of fluid dynamics associated with critical flow. 
The CFV system is commonly called a constant-volume system (CVS) even 
though the flow varies. It would be more proper to call the critical 
flow venturi (CFV) system a constant-proportion sampling system, since 
proportional sampling throughout temperature excursions is maintained 
by use of a small CFV in the sample lines. The variable mixture flow 
rate is maintained at choked flow, which is inversely proportional to 
the square root of the gas temperature, and is computed continuously. 
Since the pressure and temperature are the same at all venturi inlets, 
the sample volume is proportional to the total volume.
    (c) Configuration variations. Since various configurations can 
produce equivalent results, you need not conform exactly to the 
drawings in this subpart. You may use additional components such as 
instruments, valves, solenoids, pumps and switches to provide 
additional information and coordinate the functions of the component 
systems. You may exclude other components such as snubbers, which are 
not needed to maintain accuracy on some systems, if you exclude them 
based upon good engineering judgment.
    (d) CFV component description. The CFV sample system shown in 
Figure B110-1 consists of a dilution air filter (optional) and mixing 
assembly, cyclone particulate separator (optional), unheated sampling 
venturies for the bag sample, critical flow venturi, and associated 
valves, pressure and temperature sensors. With the exception of the 
hydrocarbon sampling system for two-stroke engines, the temperature of 
the sample lines must be more than 3 deg. C above the maximum dew point 
of the mixture and less than 121 deg. C; it is recommended that you 
maintain them at 113  8 deg. C. For the hydrocarbon 
sampling system with two-stroke engines, the temperature of the sample 
lines must be more than 3 deg. C above the maximum dew point of the 
mixture (water and/or HC) and less than 200  deg.C; it is recommended 
that you maintain them at 190  8 deg. C). The CFV sample 
system must conform to the following requirements:
    (1) Do not artificially lower exhaust system backpressure by the 
CVS or dilution air inlet system. Make the measurements to verify this 
in the raw exhaust immediately upstream of the inlet to the CVS. This 
verification requires the continuous measurement and comparison of raw 
exhaust static pressure observed during a transient cycle, both with 
and without the operating CVS. Static pressure measured with the 
operating CVS system must remain within 5 inches of water 
(1.2 kPa) of the static pressure measured without connection to the 
CVS, at identical moments in the test cycle. (We will use sampling 
systems capable of maintaining the static pressure to within 
1 inch of water (0.25 kPa) if a written request shows that 
this closer tolerance is necessary.) This requirement serves as a 
design specification for the CVS/dilution air inlet system, and should 
be performed as often as good engineering practice dictates (for 
example, after installation of an uncharacterized CVS, addition of an 
unknown inlet restriction on the dilution air, etc.).
    (2) The temperature measuring system (sensors and readout) must 
have an accuracy and precision of 3.4 deg. F 
(1.9 deg. C). The temperature measuring system used in a 
CVS without a heat exchanger must have a response time of 1.50 seconds 
to 62.5 percent of a temperature change (as measured in hot silicone 
oil). There is no response time requirement for a CVS equipped with a 
heat exchanger.
    (3) The pressure measuring system (sensors and readout) must have 
an accuracy and precision of 3 mm Hg (0.4 kPa).
    (4) The flow capacity of the CVS must be large enough to eliminate 
water condensation in the system. You may dehumidify the dilution air 
before it enters the CVS. Heating is also allowed under the following 
conditions:
    (i) The air (or air plus exhaust gas) temperature does not exceed 
250 deg. F (121 deg. C).
    (ii) Calculation of the CVS flow rate necessary to prevent water 
condensation is based on the lowest temperature encountered in the CVS 
prior to sampling. (It is recommended that the CVS system be insulated 
when heated dilution air is used.)
    (iii) The dilution ratio is sufficiently high to prevent 
condensation in bag samples as they cool to room temperature.
    (5) Sample collection bags for dilution air and exhaust samples 
must be big enough to allow unimpeded sample flow.
    (e) EFC-CFV component description. The EFC-CFV sample system is 
identical to the CFV system described in paragraph (b) of this section, 
with the addition of electronic flow controllers, metering valves, and 
separate flow meters to totalize sample flow volumes (optional). The 
EFC sample system must conform to the following requirements:
    (1) All of the requirements of paragraph (b) of this section.
    (2) The ratio of sample flow to CVS flow must not vary by more 
5 percent from the setpoint of the test.
    (3) The sample flow totalizers must meet the accuracy 
specifications of Sec. 1065.145. You may obtain total sample flow 
volumes from the flow controllers, with advance approval from us, as 
long as you can show that they meet the accuracy specifications of 
Sec. 1065.145.
    (f) Component description, PDP-CFV. The PDP-CFV sample system is 
identical to the CFV system described in paragraph (b) of this section 
with the following changes and additional requirements:
    (1) A heat exchanger is required.
    (2) You must use positive displacement pumps for the CVS flow and 
for the sampling system flows.
    (3) The gas mixture temperature, measured at a point immediately 
ahead of the positive displacement pump and after the heat exchanger, 
must be maintained within 10 deg. F (5.6 deg. 
C) of the average operating temperature observed during the test. (The 
average operating temperature may be estimated from the average 
operating temperature from similar tests.) The temperature

[[Page 51242]]

measuring system (sensors and readout) must have an accuracy and 
precision of 3.4 deg. F (1.9 deg. C). There is no response 
time requirement for a CVS equipped with a heat exchanger.


Sec. 1065.115  Exhaust gas sampling system; compression-ignition (CI) 
engines. [Reserved]


Sec. 1065.120  Analyzers (overview/general response characteristics).

    (a) General. The specifications for analyzers and analytical 
equipment are described in the following sections and subparts:
    (1) The analyzers for measuring hydrocarbon, NOX, CO, 
and CO2 emission concentrations are specified in 
Sec. 1065.125 through Sec. 1065.135 of this chapter.
    (2) The analytical equipment for measuring particulate emissions is 
specified in Subpart H of this part.
    (3) The analytical equipment for measuring emissions of oxygenated 
compounds (for example, methanol) is specified in Subpart I of this 
part.
    (4) The analytical equipment for measuring in-use emissions is 
specified in Subpart J of this part.
    (b) Response time. Analyzers must have the following response 
characteristics:
    (1) For steady-state testing and transient testing with bag sample 
analysis, the analyzer must reach at least 90 percent of its final 
response within 5.0 seconds after any step change to the input 
concentration greater than or equal to 80 percent of full scale.
    (2) For transient testing with continuous measurement, the analyzer 
must reach at least 90 percent of its final response within 1.0 second 
after any step change to the input concentration greater than or equal 
to 80 percent of full scale.
    (c) Precision and noise. (1) The precision of the analyzers must be 
no worse than 1 percent of full-scale concentration for 
each range used above 155 ppm (or ppmC), or 2 percent for 
each range used below 155 ppm (or ppmC). For the purpose of this 
paragraph, precision is defined as 2.5 times the standard deviation(s) 
of 10 repetitive responses to a given calibration or span gas.
    (2) The analyzer peak-to-peak response to zero and calibration or 
span gases over any 10-second period shall not exceed 2 percent of 
full/scale chart deflection on all ranges used.
    (d) Drift. (1) The zero-response drift during a 1-hour period shall 
be less than 2 percent of full-scale chart deflection on the lowest 
range used. The zero-response is defined as the mean response including 
noise to a zero-gas during a 30-second time interval.
    (2) The span drift during a 1-hour period shall be less than 2 
percent of full-scale chart deflection on the lowest range used. The 
analyzer span is defined as the difference between the span-response 
and the zero-response. The span-response is defined as the mean 
response including noise to a span gas during a 30-second time 
interval.
    (e) Calibration. Calibration procedures for analyzers are specified 
in subpart D of this part.


Sec. 1065.125  Hydrocarbon analyzers.

    This section describes the requirements for flame ionization 
detectors (FIDs).
    (a) Fuel the FID with a mixture of hydrogen in helium, and 
calibrate it using propane.
    (b) You do not need to heat the FID for four-stroke SI engines. 
Heated FIDs are required for two-stroke SI engines. If you use a heated 
FID, you must keep the temperature below 200 deg. C.
    (c) An overflow sampling system is required for heated continuous 
FIDs. (An overflow system is one in which excess zero gas or span gas 
spills out of the probe when zero or span checks of the analyzer are 
made.)
    (d) Premixing the FID fuel and burner air is not allowed.
    (e) The FID must meet the applicable accuracy and precision 
specifications of ISO 8178, which is incorporated by reference (see 
Sec. 1065.1010).


Sec. 1065.130   NOX analyzers.

    This section describes the requirements for chemiluminescent 
detectors (CLD).
    (a) The CLD must meet the applicable accuracy and precision 
specifications of ISO 8178, which is incorporated by reference (see 
Sec. 1065.1010).
    (b) The NO to NO2 converter must have an efficiency of 
at least 90 percent.
    (c) Heated CLDs are not required for SI engine testing.
    (d) An overflow sampling system is required for continuous CLDs. 
(An overflow system is one in which excess zero gas or span gas spills 
out of the probe when zero or span checks of the analyzer are made.)


Sec. 1065.135  CO and CO2 analyzers.

    This section describes the requirements for non-dispersive infrared 
absorption detectors (NDIR).
    (a) The NDIR must meet the applicable accuracy and precision 
specifications of ISO 8178, which is incorporated by reference (see 
Sec. 1065.1010).
    (b) The NDIR must meet the applicable quench and interference 
requirements of ISO 8178, which is incorporated by reference (see 
Sec. 1065.1010).


Sec. 1065.140  Smoke meters. [Reserved]


Sec. 1065.145  Flow meters.

    (a) Flow meters must have accuracy and precision of 2 
percent of point or better, and be traceable to NIST standards.
    (b) Flow measurements may be corrected for temperature and/or 
pressure, provided the temperature and pressure measurements have 
accuracy and precision of 2 percent of point or better 
(absolute).

Subpart C--Test Fuels and Analytical Gases


Sec. 1065.201  General requirements for test fuels.

    (a) For all emission tests, use test fuels meeting the 
specifications in this subpart, unless the standard-setting part gives 
other directions. For any service accumulation on a test engine, if we 
do not specify a fuel, use the specified test fuel or a fuel typical of 
what you would expect the engine to use in service.
    (b) We may require you to test the engine with each type of fuel it 
can use (for example, gasoline and natural gas).
    (c) If you will produce engines that can run on a type of fuel (or 
mixture of fuels) we do not specify in this subpart, we will allow you 
to do testing with fuel that represents commercially available fuels of 
that type. However, we must approve your fuel's specifications before 
you may use it for emission testing.
    (d) You may use a test fuel other than those we specify in this 
subpart if you do all of the following:
    (1) Show that it is commercially available.
    (2) Show that your engines will use only the designated fuel in 
service.
    (3) Show that operating the engines on the fuel we specify would 
increase emissions or decrease durability.
    (4) Get our written approval before you start testing.
    (e) The test fuel specifications rely on standards established by 
the American Society for Testing and Methods, which have been 
incorporated by reference in Sec. 1065.1010.


Sec. 1065.205  Test fuel specifications for distillate diesel fuel. 
[Reserved]


Sec. 1065.210  Test fuel specifications for gasoline.

    Gasoline test fuel must meet the specifications in Table 1 of 
Sec. 1065.210, as follows:

[[Page 51243]]



                          Table 1 of Sec.  1065.210.--Gasoline Test Fuel Specifications
----------------------------------------------------------------------------------------------------------------
               Item                               Procedure                                Value
----------------------------------------------------------------------------------------------------------------
Distillation Range:
    1. Initial boiling point,      ASTM D 86-97                            23.9-35.0\2\
     deg.C.
----------------------------------------------------------------------------------------------------------------
    2. 10% point,  deg.C.........  ASTM D 86-97                            48.9-57.2
----------------------------------------------------------------------------------------------------------------
    3. 50% point,  deg.C.........  ASTM D 86-97                            93.3-110.0
----------------------------------------------------------------------------------------------------------------
    4. 90% point,  deg.C.........  ASTM D 86-97                            148.9-162.8
----------------------------------------------------------------------------------------------------------------
    5. End point,  deg.C.........  ASTM D 86-97                            212.8
----------------------------------------------------------------------------------------------------------------
Hydrocarbon composition:
    1. Olefins, volume %.........  ASTM D 1319-98                          10 maximum.
----------------------------------------------------------------------------------------------------------------
    2. Aromatics, volume %.......  ASTM D 1319-98                          35 minimum.
----------------------------------------------------------------------------------------------------------------
    3. Saturates.................  ASTM D 1319-98                          Remainder.
----------------------------------------------------------------------------------------------------------------
Lead (organic), g/liter..........  ASTM D 3237                             0.013 maximum.
----------------------------------------------------------------------------------------------------------------
Phosphorous, g/liter.............  ASTM D 3231                             0.005 maximum.
----------------------------------------------------------------------------------------------------------------
Sulfur, weight %.................  ASTM D 1266                             0.08 maximum.
----------------------------------------------------------------------------------------------------------------
Volatility (Reid Vapor Pressure),  ASTM D 3231                             60.0 to 63.4 \1\ \2\
 kPa.
----------------------------------------------------------------------------------------------------------------
\1\ For testing unrelated to evaporative emissions, the specified range is 55.2 to 63.4 kPa.
\2\ For testing at altitudes above 1219 m, the specified volatility range is 52 to 55 kPa and the specified
  initial boiling point range is 23.9 deg. to 40.6 deg. C.

Sec. 1065.215  Test fuel specifications for natural gas.

    (a) Natural gas test fuel must meet the specifications in Table 1 
of Sec. 1065.215, as follows:

                        Table 1 of Sec.  1065.215.--Natural Gas Test Fuel Specifications
----------------------------------------------------------------------------------------------------------------
               Item                               Procedure                        Value  (mole percent)
----------------------------------------------------------------------------------------------------------------
1. Methane.......................  ASTM D 1945                             89.0 minimum.
----------------------------------------------------------------------------------------------------------------
2. Ethane........................  ASTM D 1945                             4.5 maximum.
----------------------------------------------------------------------------------------------------------------
3. C3 and higher.................  ASTM D 1945                             2.3 maximum.
----------------------------------------------------------------------------------------------------------------
4. C6 and higher.................  ASTM D 1945                             0.2 maximum.
----------------------------------------------------------------------------------------------------------------
5. Oxygen........................  ASTM D 1945                             0.6 maximum.
----------------------------------------------------------------------------------------------------------------
6. Inert gases (sum of CO2 and     ASTM D 1945                             4.0 maximum.
 N2).
----------------------------------------------------------------------------------------------------------------

    (b) At ambient conditions, the fuel must have a distinctive odor 
detectable down to a concentration in air of not over one-fifth of the 
lower flammability limit.


Sec. 1065.220  Test fuel specifications for liquefied petroleum gas.

    (a) Liquefied petroleum gas test fuel must meet the specifications 
in Table 1 of Sec. 1065.220, as follows:

                  Table 1 of Sec.  1065.220.--Liquefied Petroleum Gas Test Fuel Specifications
----------------------------------------------------------------------------------------------------------------
                  Item                           Procedure                              Value
----------------------------------------------------------------------------------------------------------------
1. Propane.............................  ASTM D 2163..............  85.0 vol. percent minimum.
----------------------------------------------------------------------------------------------------------------
2. Vapor pressure at 38 deg. C.........  ASTM D 1267 or 2598 1....  14 bar maximum.
----------------------------------------------------------------------------------------------------------------
3. Volatility residue (evaporated        ASTM D 1837..............  -38 deg. C maximum.
 temp., 35 deg. C).
----------------------------------------------------------------------------------------------------------------
4. Butanes.............................  ASTM D 2163..............  5.0 vol. percent maximum.
----------------------------------------------------------------------------------------------------------------
5. Butenes.............................  ASTM D 2163..............  2.0 vol. percent maximum.
----------------------------------------------------------------------------------------------------------------
6. Pentenes and heavier................  ASTM D 2163..............  0.5 vol. percent maximum.
----------------------------------------------------------------------------------------------------------------

[[Page 51244]]

 
7. Propene.............................  ASTM D 2163..............  10.0 vol. percent maximum.
----------------------------------------------------------------------------------------------------------------
8. Residual matter (residue on evap. of  ASTM D 2158..............  0.05 ml maximum pass.2
 100 ml oil stain observ.).
----------------------------------------------------------------------------------------------------------------
9. Corrosion, copper strip.............  ASTM D 1838..............  No. 1 maximum.
----------------------------------------------------------------------------------------------------------------
10. Sulfur.............................  ASTM D 2784..............  80 ppm maximum.
----------------------------------------------------------------------------------------------------------------
11. Moisture content...................  ASTM D 2713..............  Pass.
----------------------------------------------------------------------------------------------------------------
1 If these two test methods yield different results, use the results from ASTM D-1267.
2 The test fuel must not yield a persistent oil ring when 0.3 ml of solvent residue mixture is added to a filter
  paper, in 0.1 ml increments and examined in daylight after 2 minutes (see ASTM D-2158).

    (b) At ambient conditions, the fuel must have a distinctive odor 
detectable down to a concentration in air of not over one-fifth of the 
lower flammability limit.


Sec. 1065.240  Lubricating oils.

    Lubricating oils that you use to comply with this part must be 
commercially available and representative of the oil that will be used 
with your in-use engines.


Sec. 1065.250  Analytical gases.

    Analytical gases that you use to comply with this part must meet 
the accuracy and purity specifications of this section. You must record 
the expiration date specified by the gas supplier and may not use any 
gas after the expiration date.
    (a) Pure gases. Use the ``pure gases'' in Table 1 of Sec. 1065.250, 
as follows:

                               Table 1 of Sec.  1065.250--Pure Gas Concentrations
----------------------------------------------------------------------------------------------------------------
                                             Maximum contaminant concentrations
                              ----------------------------------------------------------------
           Gas type                Organic         Carbon          Carbon       Nitric  oxide   Oxygen  content
                                   carbon         monoxide         dioxide          (NO)
----------------------------------------------------------------------------------------------------------------
Purified Nitrogen............  1 ppmC........  1 ppm.........  400 ppm.......  0.1 ppm.......  NA
----------------------------------------------------------------------------------------------------------------
Purified Oxygen..............  NA............  NA............  NA............  NA............  99.5-100.0%
----------------------------------------------------------------------------------------------------------------
Purified Synthetic Air, or     1 ppmC........  1 ppm.........  400 ppm.......  0.1 ppm.......  18-21%
 Zero-Grade Air.
----------------------------------------------------------------------------------------------------------------

    (b) FID Fuel. For the flame ionization detector, use a hydrogen-
helium mixture as the fuel. The mixture must contain 40  2 
percent hydrogen, and may contain no more than 1 ppmC of organic carbon 
or 400 ppm of CO2.
    (c) Calibration and span gases. The following provisions apply to 
calibration and span gases:
    (1) Use the following gas mixtures for calibrating and spanning 
your analytical instruments:
    (i) Propane in purified synthetic air;
    (ii) CO in purified nitrogen;
    (iii) NO and NO2 in purified nitrogen (the amount of 
NO2 contained in this calibration gas must not exceed 5 
percent of the NO content);
    (iv) Oxygen in purified nitrogen;
    (v) CO2 in purified nitrogen;
    (vi) Methane in purified synthetic air.
    (2) The calibration gases in paragraph (c)(1) of this section must 
be traceable to within one percent of NIST gas standards, or other gas 
standards we have approved. Span gases in paragraph (c)(1) of this 
section must be accurate to within two percent of true concentration, 
where true concentration refers to NIST gas standards, or other gas 
standards we have approved. All concentrations of calibration gas shall 
be given on a volume basis (volume percent or volume ppm).
    (3) You may use gases for species other than those listed in 
paragraph (c)(1) of this section (such as methanol in air gases used 
for response factor determination), as long as they meet the following 
criteria:
    (i) They are traceable to within 2 percent of NIST gas 
standards, or other standards we have approved.
    (ii) They remain within 2 percent of the labeled 
concentration. Demonstrate this by using a quarterly measurement 
procedure with a precision of 2 percent (two standard 
deviations), or other method that we approve. Your measurement 
procedure may incorporate multiple measurements. If the true 
concentration of the gas changes by more than two percent, but less 
than ten percent, you may relabel the gas with the new concentration.
    (4) You may generate calibration and span gases using precision 
blending devices (gas dividers) to dilute gases with purified nitrogen 
or with purified synthetic air. The accuracy of the mixing device must 
be such that the concentration of the blended calibration gases is 
accurate to within 1.5 percent. This accuracy implies that 
primary gases used for blending must be known to an accuracy of at 
least 1 percent, traceable to NIST gas standards, or other 
gas standards we have approved. For each calibration incorporating a 
blending device, verify the blending accuracy between 15 and 50 percent 
of full scale. You may optionally check the blending device with an 
instrument that is linear by nature (for example, using NO gas with a 
CLD). Adjust the span value of the instrument with the span gas 
directly connected to the instrument. Check the blending device at the 
used settings to ensure that the difference between nominal values and 
measured concentrations at each point stays within 0.5 
percent of the nominal value.
    (d) Oxygen interference gases. Oxygen interference check gases are 
mixtures of oxygen, nitrogen, and propane. The

[[Page 51245]]

oxygen concentration must be between 20 and 22 percent, and the propane 
concentration must be between 50 and 90 percent of the maximum value in 
the most typically used FID range. Independently measure the 
concentration of total hydrocarbons plus impurities by chromatographic 
analysis or by dynamic blending.

Subpart D--Analyzer and Equipment Calibrations


Sec. 1065.301  Overview.

    Calibrate all analyzers and equipment at least annually. The actual 
frequency must be consistent with good engineering judgment. We may 
establish other guidelines as appropriate. Perform the calibrations 
according to the specifications of one of the following sources:
    (a) The recommendations of the manufacturer of the analyzers or 
equipment.
    (b) 40 CFR part 86, subpart N.


Sec. 1065.305  Torque calibration.

    Two techniques are allowed for torque calibration. Alternate 
techniques may be used if shown to yield equivalent accuracies. The 
NIST ``true value'' torque is defined as the torque calculated by 
taking the product of an NIST traceable weight or force and a 
sufficiently accurate horizontal lever arm distance, corrected for the 
hanging torque of the lever arm.
    (a) The lever-arm dead-weight technique involves the placement of 
known weights at a known horizontal distance from the center of 
rotation of the torque measuring device. The equipment required is:
    (1) Calibration weights. A minimum of six calibration weights for 
each range of torque measuring device used are required. The weights 
must be approximately equally spaced and each must be traceable to NIST 
weights. Laboratories located in foreign countries may certify 
calibration weights to local government bureau standards. Certification 
of weight by state government Bureau of Weights and Measures is 
acceptable. Effects of changes in gravitational constant at the test 
site may be accounted for if desired.
    (2) Lever arm. A lever arm with a minimum length of 24 inches is 
required. The horizontal distance from the centerline of the engine 
torque measurement device to the point of weight application shall be 
accurate to within 0.10 inches. The arm must be balanced, 
or the hanging torque of the arm must be known to within 
0.1 ft-lbs.
    (b) The transfer technique involves the calibration of a master 
load cell (i.e., dynamometer case load cell). This calibration can be 
done with known calibration weights at known horizontal distances, or 
by using a hydraulically actuated precalibrated master load cell. This 
calibration is then transferred to the flywheel torque measuring 
device. The technique involves the following steps:
    (1) A master load cell shall be either precalibrated or be 
calibrated per paragraph (a)(1) of this section with known weights 
traceable to NIST, and used with the lever arm(s) specified in 
paragraph (b)(2) of this section. The dynamometer should be either 
running or vibrated during this calibration to minimize static 
hysteresis.
    (2) A lever arm(s) with a minimum length of 24 inches is (are) 
required. The horizontal distances from the centerline of the master 
load cell, to the centerline of the dynamometer, and to the point of 
weight or force application shall be accurate to within 
0.10 inches. The arm(s) must be balanced or the net hanging 
torque of the arm(s) must be known to within 0.1 ft.-lbs.
    (3) Transfer of calibration from the case or master load cell to 
the flywheel torque measuring device shall be performed with the 
dynamometer operating at a constant speed. The flywheel torque 
measurement device readout shall be calibrated to the master load cell 
torque readout at a minimum of six loads approximately equally spaced 
across the full useful ranges of both measurement devices. (Note that 
good engineering practice requires that both devices have approximately 
equal useful ranges of torque measurement.) The transfer calibration 
shall be performed in a manner such that the accuracy requirements of 
Sec. 1065.105(a)(2) for the flywheel torque measurement device readout 
be met or exceeded.

Subpart E--Engine Preparation and Service Accumulation


Sec. 1065.405  Preparing and servicing a test engine.

    (a) If you are testing an emission-data engine for certification, 
make sure you have built it to represent production engines.
    (b) Run the test engine, with all emission-control systems 
operating, long enough to stabilize emission levels. If you accumulate 
50 hours of operation, you may consider emission levels stable without 
measurement.
    (c) Do not service the test engine before you stabilize emission 
levels, unless we approve other maintenance in advance. This 
prohibition does not apply with respect to your recommended oil and 
filter changes for newly produced engines.
    (d) Select engine operation for accumulating operating hours on 
your test engines to represent normal in-use engine operation for the 
engine family.
    (e) If you need more than 50 hours to stabilize emission levels, 
record your reasons and the method you use to do this. Give us these 
records if we ask for them.


Sec. 1065.410  Service limits for stabilized test engines.

    (a) After you stabilize the test engine's emission levels, you may 
do scheduled maintenance, other than during emission testing, as 
specified in the standard-setting part.
    (b) You may not do any unscheduled maintenance to the test engine 
or its emission-control system or fuel system without our advance 
approval. Unscheduled maintenance includes any adjustment, repair, 
removal, disassembly, cleaning, or replacement of the test engine.
    (1) We may approve unscheduled maintenance if all of the following 
occur:
    (i) You determine that a part failure or system malfunction (or the 
associated repair) does not make the engine unrepresentative of 
production engines in the field and does not require anyone to access 
the combustion chamber.
    (ii) Something clearly malfunctions (such as persistent misfire, 
engine stall, overheating, fluid leakage, or loss of oil pressure) and 
needs maintenance or repair.
    (iii) You give us a chance to verify the extent of the malfunction 
through audible or visual signals before you do the maintenance.
    (2) If we determine that a part's failure or a system's malfunction 
(or the associated repair) has made the engine unrepresentative of 
production engines, you may no longer use it as a test engine.
    (3) You may not do unscheduled maintenance based on emission 
measurements from the test engine.
    (4) Unless we approve beforehand, you may use equipment, 
instruments, or tools to identify bad engine components only if you 
specify they should be used for scheduled maintenance on production 
engines. In this case, you must also make them available at dealerships 
and other service outlets.
    (c) If you do maintenance that might affect emissions, you must 
completely test systems for emissions before and after the maintenance 
unless we waive this requirement.
    (d) If your test engine has a major mechanical failure that 
requires you to

[[Page 51246]]

take the engine apart, you may no longer use it as a test engine.


Sec. 1065.420  Durability demonstration.

    Where durability testing is required by the standard-setting part, 
you must perform the service accumulation in a manner representative of 
the manner in which the engine is expected to be operated in use. 
However, you may accumulate service hours using an accelerated schedule 
(e.g., using continuous operation). The following specifications also 
apply:
    (a) Maintenance. (1) You may perform scheduled maintenance that you 
recommend to operators, but only if it is consistent with any 
applicable allowable maintenance restrictions of the standard-setting 
part.
    (2) You may performed additional maintenance only if we approve it 
in advance, as specified in Sec. 1065.410(b).
    (3) If your test engine has a major mechanical failure that 
requires you to take the engine apart, you may no longer use it as a 
test engine.
    (b) Emission measurements. (1) Emission testing to determine 
deterioration factors must be consistent with good engineering judgment 
and must be spaced evenly throughout the durability period.
    (2) Emission tests must be performed according to the provisions of 
this part and the applicable provisions of the standard-setting part.

Subpart F--Running an Emission Test


Sec. 1065.500  Overview of the engine dynamometer test procedures.

    (a) The engine dynamometer test procedure measures the brake-
specific emissions of hydrocarbons (total and nonmethane, as 
applicable), carbon monoxide, and oxides of nitrogen. To perform this 
test procedure, you first dilute exhaust emissions with ambient air and 
collect a continuous proportional sample for analysis, then analyze the 
composite samples (either in bags after the test or continuously during 
the test). The general test procedure consists of a test cycle made of 
one or more segments; check the standard-setting part for specific 
cycles. The segments are:
    (1) Either a cold-start cycle (where emissions are measured) or a 
warm-up cycle (where emissions are not measured).
    (2) A hot-start transient test (some test cycles may omit engine 
starting from the ``hot-start'' cycle).
    (3) A steady-state test.
    (b) Power is measured using the torque and rpm feedback signals 
from the dynamometer. This produces a brake kilowatt-hour value that 
leads to a calculation of brake-specific emissions (see Subpart G of 
this part).
    (c) Prepare engines for testing according to the following 
provisions:
    (1) When you test an engine or operate it for service accumulation, 
you need to use the complete engine, with all emission-control devices 
installed and functioning.
    (2) For air-cooled engines, the fan must be installed.
    (3) You may install additional accessories (for example, oil 
cooler, alternators, air compressors, etc.) or simulate their loading 
if they are typical of in-use operation. This loading must be applied 
during all testing operations, including mapping.
    (4) The engine may be equipped with a production-type starter.
    (5) Cool the engine in a way that will maintain the engine 
operating temperatures (for example, temperatures of intake air, oil, 
water, etc.) at approximately the same temperatures as would occur 
during normal operation. You may use auxiliary fans to maintain engine 
cooling during operation on the dynamometer. You may use rust 
inhibitors and lubrication additives, up to the levels recommended by 
the additive manufacturer. You may also use antifreeze mixtures and 
other coolants typical of those approved for use by the manufacturer.
    (6) Use representative exhaust systems and air intake systems. Make 
sure that the exhaust restriction is between 80 and 100 percent of the 
recommended maximum specified exhaust restriction, and that the air 
inlet restriction is between that of a clean filter and the maximum 
restriction specification. The manufacturer is liable for emission 
compliance from the minimum in-use restrictions to the maximum 
restrictions specified by the manufacturer for that particular engine.


Sec. 1065.510  Engine mapping procedures.

    (a) Power map. Perform an engine power map with the engine mounted 
on the dynamometer. Use the torque curve resulting from the mapping to 
convert the normalized torque values in the engine cycle to actual 
torque values for the test cycle. The minimum speed range is from the 
warm no-load idle speed to 105 percent of the maximum test speed. 
Since, the maximum test speed is determined from the power map, it may 
be necessary to perform a preliminary power map to determine the full 
mapping range. You may perform a preliminary power map during engine 
warmup. To map the engine, do the following things in sequence:
    (1) Warm up the engine so oil and water temperatures vary by less 
than 2 percent for 2 minutes.
    (2) Operate the engine at the warm no-load idle speed.
    (3) Fully open the throttle.
    (4) While maintaining wide-open throttle and full-load, maintain 
minimum engine speed for at least 15 seconds. Record the average torque 
during the last 5 seconds.
    (5) In 10020 rpm increments, determine the maximum 
torque curve for the full speed range. Hold each test point for 15 
seconds, and record the average torque over the last 5 seconds.
    (6) Fit all data points recorded with a cubic spline, Akima, or 
other technique we approve in advance. The resultant curve must be 
accurate to within 1.0 ft-lbs of all recorded engine 
torques.
    (b) Power map with continual rpm sweep. In place of paragraphs 
(a)(1) through (a)(4) of this section, you may do a a continual sweep 
of rpm. While operating at wide-open throttle, increase the engine 
speed at an average rate of 81 rpm/sec over the full speed 
range. Record speed and torque points at a rate of at least one point 
per second. Connect all points generated under this approach by linear 
interpolation.
    (c) Alternate mapping. If you believe the above mapping techniques 
are unsafe or unrepresentative for any given engine or engine family, 
you may use alternate mapping techniques. These alternate techniques 
must satisfy the intent of the specified mapping procedures to 
determine the maximum available torque at all engine speeds that occur 
during the test cycles. Report deviations from the mapping techniques 
specified in this section for reasons of safety or representativeness. 
In no case, however, may you use descending continual sweeps of rpm for 
governed or turbocharged engines.
    (d) Replicate tests. You need not map an engine before each and 
every test. Remap an engine before a test in any of the following 
situations:
    (1) An unreasonable amount of time has passed since the last map, 
as determined by good engineering judgment.
    (2) The barometric pressure prior to the start of the cold-cycle 
test has changed more than 1 in. Hg from the average barometric 
pressure observed during the map.
    (3) The engine has undergone physical changes or recalibration that 
might affect engine performance.


Sec. 1065.515  Transient test cycle generation.

    (a) Denormalizing test cycles. The applicable test cycles are 
contained in the standard-setting parts. These cycles

[[Page 51247]]

are comprised of second-by-second specifications for torque and speed. 
Both torque and speed are normalized in these cycles.
    (1) Torque is normalized to the maximum torque at the speed listed 
with it. Therefore, to denormalize the torque values in the cycle, use 
the maximum torque curve for the engine in question. The generation of 
the maximum torque curve is described in Sec. 1065.510.
    (2) To denormalize speed, use the following equation:

Actual rpm = (0.01)(%rpm)(Maximum test speed-warm idle speed) + warm 
idle speed.

    (3) Paragraph (d) of this section describes the method of 
calculating maximum test speed.
    (b) Example of the denormalization procedure. For an engine with 
maximum test speed of 3800 rpm and warm idle speed of 600 rpm, 
denormalize the following test point:

percent rpm = 43, percent torque = 82.

    (1) Calculate actual rpm. Use the following equation:

Actual rpm = (0.01)(43)(3800-600) + 600 = 1976.

    (2) Determine actual torque. Determine the maximum observed torque 
at 1976 rpm from the maximum torque curve. Then multiply this value 
(for example, 358 ft-lbs) by 0.82. This results in an actual torque of 
294 ft-lbs.
    (c) Cold-start enhancement devices. Proper operation of the 
engine's automatic cold-start enhancement device supersedes the zero-
percent speed specified in the test cycles.
    (d) Maximum test speed. Maximum test speed is used for all the 
emission testing we require. It occurs on the lug curve at the point 
farthest from the origin on a plot of power vs. speed. To find this 
speed, follow these steps:
    (1) Generate the lug curve. Before testing an engine for emissions, 
generate data points for maximum measured brake power with varying 
engine speed (see Sec. 1065.510). These data points form the lug curve.
    (2) Normalize the lug curve. To normalize the lug curve, do three 
things:
    (i) Identify the point (power and speed) on the lug curve where 
maximum power occurs.
    (ii) Normalize the power values of the lug curve--divide them by 
the maximum power and multiply the resulting values by 100.
    (iii) Normalize the engine speed values of the lug curve--divide 
them by the speed at which maximum power occurs and multiply the 
resulting values by 100.
    (3) Determine maximum test speed. Calculate the maximum test speed 
from the following speed-factor analysis:
    (i) For a given power-speed point, the speed factor is the 
normalized distance to the power-speed point from the zero-power, zero-
speed point. Compute the speed factor's value:
[GRAPHIC] [TIFF OMITTED] TP05OC01.010

    (ii) Determine the maximum value of speed factors for all the 
power-speed data points on the lug curve. Maximum test speed is the 
speed at which the speed factor's maximum value occurs. Note that this 
maximum test speed is the 100-percent speed point for normalized 
transient duty cycles.
    (4) Constant-speed engines. For constant-speed engines, maximum 
test speed is the same as the engine's maximum in-use operating speed.
    (e) Intermediate test speed. Determine intermediate test speed with 
the following provisions:
    (1) If peak torque speed is between 60 to 75 percent of maximum 
test speed, the intermediate speed point is at that same speed.
    (2) If peak torque speed is less than 60 percent of maximum test 
speed, the intermediate speed point is at 60 percent of maximum test 
speed.
    (3) If peak torque speed is greater than 75 percent of maximum test 
speed, the intermediate speed point is at 75 percent of maximum test 
speed.


Sec. 1065.520  Engine starting, restarting, and shutdown.

    Applicable test cycles may contain requirements to start or shut 
down the engine. This section specifies how to do that.
    (a) Engine starting. Start the engine according to the 
manufacturer's recommended starting procedure in the owner's manual, 
using either a production starter motor or the dynamometer. The speed 
at which the engine is cranked (motored) with the dynamometer should be 
equal to the typical in-use cranking speed (nominal speed 
10 percent) with a fully charged battery. The time the 
dynamometer takes to accelerate the engine to cranking speed should be 
equal (nominal 0.5 seconds) to the time required with a 
starter motor. Terminate motoring by the dynamometer within one second 
of starting the engine. The free-idle period of the cycle begins when 
you determine that the engine has started.
    (1) If the engine does not start after 15 seconds of cranking, 
cease cranking and determine the reason for the failure to start. Turn 
off the gas flow measuring device (or revolution counter) on the 
constant-volume sampler (and the hydrocarbon integrator when measuring 
hydrocarbons continuously) during this diagnostic period. Also, either 
turn off the CVS or disconnect the exhaust tube from the tailpipe 
during the diagnostic period. If failure to start is an operational 
error, reschedule the engine for testing (this may require soaking the 
engine if a cold-start is required for the test).
    (2) If longer cranking times are necessary, you may use them 
instead of the 15-second limit, as long as the owner's manual and the 
service repair manual describe the longer cranking times as normal.
    (3) If an engine malfunction causes a failure to start, you may 
take corrective action of less than 30 minutes duration and continue 
the test. Reactivate the sampling system at the same time cranking 
begins. When the engine starts, begin the timing sequence. If an engine 
malfunction causes a failure to start and the engine cannot be 
restarted, the test is void.
    (b) Engine stalling. Respond to engine stalling according the 
following provisions:
    (1) If the engine stalls during the warm-up period, the initial 
idle period of test, or the steady-state segment, you may restart the 
engine immediately using the appropriate starting procedure and 
continue the test.
    (2) If the engine stalls anywhere else during the test, the test is 
void.
    (c) Engine shutdown. Shut the engine down according to the 
manufacturer's specifications.


Sec. 1065.525  Engine dynamometer test run.

    Take the following steps for each test:
    (a) Prepare the engine, dynamometer, and sampling system. Change 
filters or other replaceable items and leak check as necessary.
    (b) If you are using bag samples, connect evacuated sample 
collection bags to the dilute exhaust and dilution air sample 
collection systems.
    (c) Attach the CVS to the engine exhaust system any time prior to 
starting the CVS.
    (d) Start the CVS (if not already started), the sample pumps, the 
engine cooling fan(s), and the data collection system. Preheat the heat 
exchanger of the constant-volume sampler (if used) and the heated 
components of any continuous sampling system(s) to their designated 
operating temperatures before the test begins.
    (e) Adjust the sample flow rates to the desired flow rates and set 
the CVS gas flow measuring devices to zero. CFV-

[[Page 51248]]

CVS sample flow rate is fixed by the venturi design.
    (f) Start the engine if engine starting is not part of the test 
cycle specified in the standard-setting part.
    (g) Run the test cycle specified in the standard-setting part and 
collect the test data.
    (h) As soon as practical after the test cycle is completed, analyze 
the bag samples.


Sec. 1065.530  Test cycle validation criteria.

    (a) Steady-state emission testing. Engine speeds and/or loads may 
not deviate from the set point more than 2 percent of point 
during the sampling period for a valid test.
    (b) Transient emission testing performed by EPA. Emission tests not 
meeting the specifications of this paragraph (b) are not considered to 
be in accordance with the test cycle requirements of the standard-
setting part, except where the cause of the failure to meet these 
specifications is determined to be related to the engine rather than 
the test equipment.
    (1) Shifting feedback signals. To minimize the biasing effect of 
the time lag between the feedback and reference cycle values, you may 
advance or delay the entire engine speed and torque feedback signal 
sequence with respect to the reference speed and torque sequence. If 
the feedback signals are shifted, you must shift both speed and torque 
the same amount in the same direction.
    (2) Brake kilowatt-hour calculation. Calculate the brake kilowatt-
hour for each pair of engine feedback speed and torque values recorded. 
Also calculate the reference brake kilowatt-hour for each pair of 
engine speed and torque reference values. Calculations must be done to 
five significant figures.
    (3) Regression line analysis. Perform regression analysis to 
calculate validation statistics according to the following:
    (i) Perform linear regressions of feedback value on reference value 
for speed, torque, and brake power on 1 Hz data after the feedback 
shift has occurred (see paragraph (b)(1) of this section). Use the 
method of least squares, with the best fit equation having the form:

y = mx + b


Where:

y = The feedback (actual) value of speed (rpm), torque (ft-lbs), or 
brake power.
m = Slope of the regression line.
x = The reference value (speed, torque, or brake power).
b = The y-intercept of the regression line.
    (ii) Calculate the standard error of estimate (SE) of y on x and 
the coefficient of determination (r2) for each regression 
line.
    (iii) For the test to be considered valid, the slope, intercept, 
standard error, and coefficient of determination must meet the criteria 
in Table 1 of Sec. 1065.530 and the integrated brake kilowatt-hour of 
the feedback cycle does must be within 5 percent of the integrated 
brake kilowatt-hour of the reference cycle. Individual points may be 
deleted from the regression analyses consistent with good engineering 
judgment. Table 1 follows:

                   Table 1 of Sec.  1065.530.--Statistical Criteria for Test Cycle Validation
----------------------------------------------------------------------------------------------------------------
                                                Speed                    Torque                   Power
----------------------------------------------------------------------------------------------------------------
1. Standard error of the estimate of   100 rpm................  15 percent of maximum    10 percent of maximum
 Y on X (SE).                                                    torque from power map.   power from power map.
----------------------------------------------------------------------------------------------------------------
2. Slope of the regression line (m)..  0.980 to 1.020.........  0.880 to 1.030.........  0.880 to 1.030.
----------------------------------------------------------------------------------------------------------------
3. Coefficient of determination (r2).  r20.970.....  r20.900.....  r20.900.
----------------------------------------------------------------------------------------------------------------
4. Y intercept of the regression line  |b|>40 rpm.............  |b|>5.0 percent of       |b|>3.0 percent of
 (b).                                                            maximum torque from      maximum torque from
                                                                 power map.               power map.
----------------------------------------------------------------------------------------------------------------

    (c) Transient testing performed by manufacturers. Emission tests 
meeting the specifications of paragraph (b) of this section are 
considered to be in accordance with the test cycle requirements of the 
standard-setting part. A manufacturer may choose to use a dynamometer 
not capable of meeting the specifications of paragraph (b) of this 
section.

Subpart G--Data Analysis and Calculations


Sec. 1065.601  Overview.

    This subpart describes how to use the responses on the anlayzers 
and other meters to calculate final gram per kilowatt-hour emission 
rates.


Sec. 1065.605  Required records.

    Retain the following information for each test:
    (a) Test number.
    (b) System or device tested (brief description).
    (c) Date and time of day for each part of the test schedule.
    (d) Test results.
    (e) Operator's name.
    (f) Engine: ID number, manufacturer, model year, emission 
standards, engine family, basic engine description, fuel system, engine 
code, and idle rpm, as applicable.
    (g) Dynamometer: Dynamometer identification, records to verify 
compliance with the duty cycle requirements of the test.
    (h) Gas analyzers: Analyzer bench identification, analyzer ranges, 
recordings of analyzer output during zero, span, and sample readings.
    (i) Recorder charts: Test number, date, identification, operator's 
name, and identification of the measurements recorded.
    (j) Test cell barometric pressure, ambient temperature, and 
humidity as required. (Some test systems may require continuous 
measurements, others may require a single measurement, or measurements 
before and after the test.)
    (k) Temperatures: Records to verify compliance with the ambient 
temperature requirements throughout the test procedure.
    (l) CFV-CVS: Total dilute exhaust volume (Vmix) for each phase of 
the exhaust test.
    (m) PDP-CVS: Test measurements for calculating the total dilute 
exhaust volume (Vmix), and the Vmix for each phase of the exhaust test.
    (n) The humidity of the dilution air. (Note: If you do not use 
conditioning columns, this measurement is not necessary. If you use 
conditioning columns and take the dilution air from the test cell, you 
may use the ambient humidity for this measurement.)

[[Page 51249]]

Sec. 1065.610  Bag sample analysis.

    (a) Zero the analyzers and obtain a stable zero reading. Recheck 
after tests.
    (b) Introduce span gases and set instrument gains. To avoid errors, 
span and calibrate at the same flow rates used to analyze the test 
sample. Span gases should have concentrations equal to 75 to 100 
percent of full scale. If gain has shifted significantly on the 
analyzers, check the calibrations. Show actual concentrations on the 
chart.
    (c) Check zeroes; repeat the procedure in paragraphs (a) and (b) of 
this section if necessary.
    (d) Check flow rates and pressures.
    (e) Measure HC, CO, and NOX concentrations of samples.
    (f) Check zero and span points. If the difference is greater than 2 
percent of full scale, repeat the procedure in paragraphs (a) through 
(e) of this section.


Sec. 1065.615  Bag sample calculations.

    (a) Calculate the dilution factor. The dilution factor is the ratio 
of the total volume of the raw exhaust to the total volume of the 
diluted exhaust. It is calculated as 134,000 divided by the sum of the 
diluted ppmC concentrations of carbon-containing compounds in the 
exhaust; that is:

DF = 134,000/(CO2sample + THCsample + 
COsample),

Where:

CO2sample and COsample are expressed as ppm, and 
THCsample is expressed as ppmC.


    (b) Calculate mass emission rates
(g/test) for the transient segment using the general equation in 
paragraph (b)(1) of this section:
    (1) The general equation follows:

emission rate = (total dilute exhaust volumetric flow)(ppm)(density 
factor)/106 Mx = 
(Vmix)(Ci)(fdi)/106

Where:

Mx = Mass emission rate in g/test segment.
Vmix = Total dilute exhaust volumetric flow in m3 
per test segment.
Ci = The concentration of species i, in ppm or ppmC, 
corrected for background contribution according to the equation in 
paragraph (b)(2) of this section.
fdi = The density factor for species i. The density factors 
are 576.8 g/m3 for THC, 1913 g/m3 for 
NOX, and 1164 g/m3 for CO.

    (2) The equation for calculating Ci follows:

Ci = Csample - Cbackground [1-(1/DF)]

Where:
Csample = Concentration of species i in the diluted exhaust 
sample, in ppm or ppmC.
Cbackground = Concentration of species i in the dilution air 
background sample, in ppm or ppmC.
DF = Dilution factor, as calculated in paragraph (a) of this section.

    (c) Calculate total brake work done during the emissions sampling 
period of each segment or mode.
    (d) Determine the time duration of the emission sampling period.
    (e) Calculate emissions in g/kW-hr by dividing the mass emission 
rate by the total brake work and the duration of the emission sampling 
period.

Subpart H--Particulate Measurements [Reserved]

Subpart I--Testing With Oxygenated Fuels [Reserved]

Subpart J--Field Testing


Sec. 1065.901  Applicability.

    (a) The test procedures in this subpart measure brake-specific 
emissions from engines while they remain installed in vehicles or 
equipment in the field.
    (b) These test procedures apply to your engines as specified in the 
standard-setting part.


Sec. 1065.905  General provisions.

    (a) Unless the standard-setting part specifies deviations from the 
provisions of this subpart, testing conducted under this subpart must 
conform to all of the provisions of this subpart.
    (b) Testing conducted under this subpart may include any or all 
normal in-use operation of the engine.


Sec. 1065.910  Measurement accuracy and precision.

    (a) Measurement systems used for in-use testing must be accurate to 
within 5 percent compared to engine dynamometer testing 
conducted according to the test procedures of this part that are 
applicable for your engine. These systems must also have a precision of 
5 percent or better. Determine accuracy and precision of an 
in-use system by simultaneously measuring emissions using the engine-
dynamometer test procedures of this part and the in-use system. To have 
a statistically valid sample, measure emissions during at least 3 tests 
each for at least 3 different engines. You must conduct these 
verification tests using the test cycle specified in the standard-
setting part, unless we approve a different test cycle.
    (1) A system must meet the following conditions to be considered 
sufficiently accurate:
    (i) The correlation coefficient (r) for a least-squares linear fit 
that includes the origin must be 0.95 or higher.
    (ii) The average ratio (for all tests) of the emission rate from 
the in-use system divided by the emission rate from the dynamometer 
procedure must be between 0.97 and 1.05.
    (2) For a system to be considered sufficiently precise, the average 
coefficient of variance for all engines must be 5 percent or less for 
each pollutant. (Note: Increasing the length of the sampling period may 
be an effective way to improve precision.)
    (b) Measurement systems that conform to the provisions of 
Secs. 1065.915 through 1065.950 are considered to be in compliance with 
the accuracy and precision requirements of paragraph (a) of this 
section.


Sec. 1065.915  Equipment specifications for SI engines.

    This section describes equipment you may use to measure in-use 
emissions. You may use other equipment and measurement systems that 
conform to the requirements of Secs. 1065.905 and 1065.910.
    (a) The primary components of the in-use measurement system are a 
mass air flow sensor, a portable FID, a zirconia-based NOX 
sensor, a zirconia-based air/fuel ratio sensor, and a portable NDIR 
analyzer.
    (1) The mass air flow sensor must meet the requirements of 
Sec. 1065.930.
    (2) The portable FID must meet the requirements of Sec. 1065.935.
    (3) The NOX and air/fuel sensors must meet the 
requirements of Sec. 1065.940
    (4) The NDIR analyzer must meet the requirements of Sec. 1065.941.
    (b) You must measure the following parameters continuously at a 
rate of 3 Hz or higher and store the data electronically:
    (1) THC, NOX, CO concentrations.
    (2) Air/fuel ratio.
    (3) Intake air flow rate.
    (4) Engine speed.
    (5) Parameters used to calculate torque.
    (c) You must minimize sample line length for any analyzers that 
require a physical sample be drawn from the exhaust to the analyzer 
(i.e., THC and CO analyzers). You must draw these samples at a constant 
flow rate. In no case may you use any combination of sample line length 
and sample flow rate that would result in the length of time necessary 
for the analyzer to reach 90 percent of its final response after a step 
change to the input concentration at the opening of the sample probe 
being greater than 10 seconds. For residence time delays between 1 and 
10 seconds, you must correct the measurements to be consistent with the 
engine speed, torque, and air intake data. You may

[[Page 51250]]

also correct other measurements with less than 1 second lags.
    (d) The sample probes and sensors can be inserted into the exhaust 
pipe, or mounted in an exhaust extension that is connected to the 
exhaust pipe with negligible leaking. The sample probes and sensors 
must be located sufficiently close to the center line of the exhaust 
pipe to minimize boundary layer effects from the wall.


Sec. 1065.920  Equipment setup and test run for SI engines.

    This section describes how to set up the equipment specified in 
Sec. 1065.915, and how to use it to measure in-use emissions from SI 
engines.
    (a) Inspect the vehicle or equipment to determine whether it meets 
any applicable requirements of the standard-setting part. This may 
include requirements related to model year, accumulated hours of 
operation, fuel specifications, maintenance history, engine 
temperatures, etc.
    (b) Perform calibrations as specified in this subpart. In the 
field, this generally will require only zeroing and spanning the 
instruments. However, each instrument must have been fully calibrated 
according to the instrument manufacturer's specifications. Nonlinear 
calibrations generated previously from the full calibration may be used 
after zeroing and spanning the instruments. Spanning can be performed 
using a single gas bottle, consistent with good engineering practice, 
and provided that stability of the span mixture has been demonstrated.
    (c) Connect the data recorder (with any necessary signal 
interpreters or converters) to the engine's electronic control module 
(ECM).
    (d) Disconnect the air intake system as necessary to attach the 
mass air flow sensor. Reconnect the system after attaching the mass air 
flow sensor.
    (e) Attach the sample extension to the exhaust outlet.
    (f) Turn on instruments and allow them to warm up as necessary.
    (g) Begin sampling. You do not need to begin recording the data at 
this point.
    (h) Begin operating the vehicle or equipment in a normal manner. 
(Note: We may require you to operate the vehicle or equipment in a 
specific manner.)
    (i) Begin recording engine speed, engine torque (or surrogate), 
intake air flow, emissions data (THC, NOX, CO, air/fuel 
ratio), and time. This is the beginning of the sampling period.
    (j) Continue recording data and operating the vehicle or equipment 
in a normal manner until the end of the sampling period. The length of 
the sampling period is based on good engineering practice, the 
precision requirements of Sec. 1065.910, and applicable limits in the 
standard-setting part.
    (k) You may measure background concentrations and correct measured 
emission values accordingly. However, if any background corrections are 
equivalent to 5 percent or more of the maximum emissions allowed by the 
appliacble standard, the test shall be voided and repeated in an 
environment with lower background concentrations.


Sec. 1065.925  Calculations.

    (a) [Reserved]
    (b) Convert emission analyzer data to instantaneous concentrations 
in ppm (ppmC for the FID).
    (c) Calculate instantaneous exhaust volumetric flow rates in 
m3/hr:

exhaust flow rate = (intake air flow rate)(1-f/a)

    (d) Calculate instantaneous emission rates (g/hr) using the 
following general equation:

emission rate = (exhaust volumetric flow rate)(ppm)(density factor)/
106
Where:

density factors are 576.8 g/m3 for THC, 1913 g/m3 
for NOX, 1164 g/m3 for CO.
    (e) Integrate instantaneous emission rates for the entire specified 
sample period.
    (f) Determine instantaneous brake torque and speed.
    (g) Calculate instantaneous brake power.
    (h) Integrate instantaneous brake power for the entire specified 
sample period.
    (i) Divide the integrated emission rates by the integrated brake 
power. These are your final brake-specific emission rates.


Sec. 1065.930  Specifications for mass air flow sensors.

    (a) Measure the intake air flow using the engine's mass air flow 
sensor. If the engine is not equipped with a mass air flow sensor, you 
need to install one.
    (b) The sensor design must have an accuracy and precision of 
5 percent under steady-state laboratory conditions.
    (c) The sensor must reach at least 90 percent of its final response 
within 0.3 seconds after any step change to the flow rate greater than 
or equal 80 percent of full scale.
    (d) Calibrate the sensor according to good engineering practice. 
Prior to testing verify for each engine that the sensor accurately 
reads the idle intake air flow rate based on measured manifold 
temperature (TM) and pressure (PM). Use the 
following equation:

Intake air flow = (displacement)(rpm)(volumetric 
efficiency)(PM/101.3 kPa)(293.15/TM)


Sec. 1065.935  Specifications for THC analyzers.

    (a) Use a flame ionization detector (FID).
    (b) The analyzer must have an accuracy and precision of 
2 percent of point or better under steady-state laboratory 
conditions.
    (c) The analyzer must reach at least 90 percent of its final 
response within 1.0 second after any step change to the input 
concentration greater than or equal 80 percent of full scale.
    (d) Zero and span the analyzer daily during testing. Calibrate it 
according to the analyzer manufacturer's specifications.


Sec. 1065.940  Specifications for NOX and air/fuel sensors.

    (a) Use stabilized zirconia-based sensors.
    (b) The sensors must have an accuracy and precision of 
2 percent of point or better under steady-state laboratory 
conditions.
    (c) The sensors must reach at least 90 percent of its final 
response within 1.0 second after any step change to the input 
concentration greater than or equal 80 percent of full scale.
    (d) The sensors must be zeroed and spanned daily during testing, 
and must calibrated according to the sensor manufacturer's 
specifications.


Sec. 1065.945  Specifications for CO analyzers.

    (a) Use a non-dispersive infrared (NDIR) detector that is 
compensated for CO2 and water interference.
    (b) The analyzer must have an accuracy and precision of 
2 percent of point or better under steady-state laboratory 
conditions.
    (c) The analyzer must reach at least 90 percent of its final 
response within 5.0 second after any step change to the input 
concentration greater than or equal 80 percent of full scale.
    (d) The analyzer must be zeroed and spanned daily during testing, 
and must calibrated according to the analyzer manufacturer's 
specifications.


Sec. 1065.950  Specifications for speed and torque measurement.

    (a) Determine torque from a previously determined relationship of 
torque and engine speed, throttle position, and/or manifold absolute 
pressure. Torque estimates must be between 85 percent and 105 percent 
of

[[Page 51251]]

the true value. You can demonstrate compliance with this accuracy 
requirement using steady-state labortory data.
    (b) Measure speed from the engine's electronic control module. 
Speed estimates must be within 5 rpm of the true value.

Subpart K--Definitions and Other Reference Information


Sec. 1065.1000  Definitions.

    The following definitions apply to this part. The definitions apply 
to all subparts unless we note otherwise. All undefined terms have the 
meaning the Act gives to them.
    The definitions follow:
    Accuracy means the maximum difference between a measured or 
calculated value and the true value, where the true value is determined 
by NIST.
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.
    Adjustable parameter means any device, system, or element of design 
that someone can adjust (including those which are difficult to access) 
and that, if adjusted, may affect emissions or engine performance 
during emission testing or normal in-use operation.
    Aftertreatment means relating to any system, component, or 
technology mounted downstream of the exhaust valve or exhaust port 
whose design function is to reduce exhaust emissions.
    Auxiliary emission-control device means any element of design that 
senses temperature, engine rpm, motive speed, transmission gear, 
atmospheric pressure, manifold pressure or vacuum, or any other 
parameter to activate, modulate, delay, or deactivate the operation of 
any part of the emission-control system. This also includes any other 
feature that causes in-use emissions to be higher than those measured 
under test conditions, except as we allow under this part.
    Calibration means the set of specifications and tolerances specific 
to a particular design, version, or application of a component or 
assembly capable of functionally describing its operation over its 
working range.
    Certification means obtaining a certificate of conformity for an 
engine family that complies with the emission standards and 
requirements in this part.
    Compression-ignition means relating to a type of reciprocating, 
internal-combustion engine that is not a spark-ignition engine.
    Constant-speed engine means an engine governed to operate only at 
its rated speed.
    Designated Officer means the Manager, Engine Compliance Programs 
Group (6403-J), U.S. Environmental Protection Agency, 1200 Pennsylvania 
Ave., Washington, DC 20460.
    Emission-control system means any device, system, or element of 
design that controls or reduces the regulated emissions from an engine.
    Emission-data engine means an engine that is tested for 
certification.
    Emission-related maintenance means maintenance that substantially 
affects emissions or is likely to substantially affect emissions 
deterioration.
    Engine means an engine to which this part applies. For equipment 
subject to this part and regulated under equipment-based standards, the 
term engine in this part shall be interpreted to include equipment.
    Engine-based means having emission standards related to 
measurements using an engine dynamometer, in units of grams of 
pollutant per kilowatt-hour.
    Engine family means a group of engines with similar emission 
characteristics, as specified in the standard-setting part.
    Engine manufacturer has the meaning given in section 216(1) of the 
Act. In general, this term includes any person who manufactures an 
engine for sale in the United States or otherwise introduces a new 
engine into commerce in the United States. This includes importers. For 
equipment subject to this part and regulated under equipment-based 
standards, the term engine manufacturer in this part shall be 
interpreted to include equipment manufacturers.
    Equipment-based means having emission standards related to 
measurements from an engine installed in a vehicle using a chassis 
dynamometer, in units of grams of pollutant per kilometer.
    Fuel system means all components involved in transporting, 
metering, and mixing the fuel from the fuel tank to the combustion 
chamber(s), including the fuel tank, fuel tank cap, fuel pump, fuel 
filters, fuel lines, carburetor or fuel-injection components, and all 
fuel-system vents.
    Good engineering judgment has the meaning we give it in Sec. 1068.5 
of this chapter.
    Identification number means a unique specification (for example, 
model number/serial number combination) that allows someone to 
distinguish a particular engine from other similar engines.
    Maximum test torque means the torque output observed with the 
maximum fueling rate possible at a given speed.
    Nonmethane hydrocarbons means the sum of all hydrocarbon species 
measured by a FID except methane, expressed with an assumed mass 13.876 
grams per mole of carbon atoms.
    Nonroad means relating to nonroad engines.
    Nonroad engine has the meaning given in Sec. 89.2 of this chapter. 
In general this means all internal combustion engines except motor 
vehicle engines, stationary engines, or engines used solely for 
competition.
    Oxides of nitrogen means the oxides of nitrogen measured by the 
specified test equipment. Specifically, this means nitric oxide (NO) 
and nitrogen dioxide (NO2). Oxides of nitrogen are expressed 
quantitatively as if the NO were in the form of NO2 (assume 
a molecular weight for oxides of nitrogen equivalent to that of 
NO2).
    Precision means two times the coefficient of variance of multiple 
measurements, except where specified otherwise.
    Revoking a certificate of conformity means discontinuing the 
certificate for an engine family. If we revoke a certificate, you must 
apply for a new certificate before continuing to produce the affected 
engines. This does not apply to engines you no longer possess.
    Round means to round numbers according to ASTM E29-93a, which is 
incorporated by reference (see Sec. 1065.1010), unless otherwise 
specified.
    Scheduled maintenance means adjusting, repairing, removing, 
disassembling, cleaning, or replacing components or systems that is 
periodically needed to keep a part from failing or malfunctioning. It 
also may mean actions you expect are necessary to correct an overt 
indication of failure or malfunction for which periodic maintenance is 
not appropriate.
    Spark-ignition means relating to a type of engine with a spark plug 
(or other sparking device) and with operating characteristics 
significantly similar to the theoretical Otto combustion cycle. Spark-
ignition engines usually use a throttle to regulate intake air flow to 
control power during normal operation.
    Standard-setting part means the part in the Code of Federal 
Regulations that defines emission standards for a particular engine 
(see Sec. 1065.1(a)).
    Stoichiometry means the proportion of a mixture of air and fuel 
such that the fuel is fully oxidized with no remaining oxygen. For 
example, stoichiometric combustion in gasoline engines typically occurs 
at an air-fuel mass ratio of about 14.7.
    Suspending a certificate of conformity means temporarily 
discontinuing the certificate for an engine family. If we

[[Page 51252]]

suspend a certificate, you may not sell engines from that engine family 
unless we reinstate the certificate or approve a new one.
    Test engine means an engine in a test sample.
    Test sample means the collection of engines selected from the 
population of an engine family for emission testing.
    Total Hydrocarbon (THC) means the sum of all hydrocarbon species 
measured by a FID, expressed with an assumed mass 13.876 grams per mole 
of carbon atoms.
    Total Hydrocarbon Equivalent means the sum of the carbon mass 
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes, 
or other organic compounds that are measured separately as contained in 
a gas sample, expressed as petroleum-fueled engine hydrocarbons. The 
hydrogen-to-carbon ratio of the equivalent hydrocarbon is 1.85:1.
    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
    Voiding a certificate of conformity means invalidating a 
certificate, so all the engines produced under that engine family for 
that model year are considered noncompliant. If we void a certificate, 
you are liable for each engine produced under the certificate and may 
face civil or criminal penalties or both.
    Voiding an exemption means invalidating an exemption, so all the 
engines produced under that exemption are considered uncertified (or 
nonconforming). If we void an exemption, you are liable for each engine 
produced under the exemption and may face civil or criminal penalties 
or both. You may not produce any additional engines using the 
exemption.


Sec. 1065.1005  Symbols, acronyms, and abbreviations.

    The following symbols, acronyms, and abbreviations apply to this 
part:

 deg.C  degrees Celsius.
"  inches.
ASTM  American Society for Testing and Materials.
cc  cubic centimeters.
CFV  critical-flow venturi.
CI  compression-ignition.
CLD  chemiluminescent detector.
CO  carbon monoxide.
CO2  carbon dioxide.
CVS  constant-volume sampler.
EFC  electronic flow control.
EPA  Environmental Protection Agency.
FID  flame ionization detector.
g/kW-hr  grams per kilowatt-hour.
IBP  initial boiling point.
ISO  International Organization for Standardization.
kPa  kilopascal.
LPG  liquefied petroleum gas.
m  meters.
mm Hg  millimeters of mercury.
NDIR  nondispersive infrared.
NIST  National Institute for Standards and Testing.
NMHC  nonmethane hydrocarbons.
NO  nitric oxide.
NO2  nitrogen dioxide.
NOX  oxides of nitrogen (NO and NO2).
O2  oxygen.
PDP  positive-displacement pump.
ppm  parts per million.
rpm  revolutions per minute.
SAE  Society of Automotive Engineers.
SI  spark-ignition.
THC  total hydrocarbon.
THCE  total hydrocarbon equivalent.
U.S.C.  United States Code.


Sec. 1065.1010  Reference materials.

    We have incorporated by reference the documents listed in this 
section. The Director of the Federal Register approved the 
incorporation by reference as prescribed in 5 U.S.C. 552(a) and 1 CFR 
part 51. Anyone may inspect copies at U.S. EPA, OAR, Air and Radiation 
Docket and Information Center, 401 M Street, SW., Washington, DC 20460 
or Office of the Federal Register, 800 N. Capitol St., NW., 7th Floor, 
Suite 700, Washington, DC.
    (a) ASTM material. [Reserved]
    (b) ISO material. Table 2 of Sec. 1065.1010 lists material from the 
International Organization for Standardization that we have 
incorporated by reference. The first column lists the number and name 
of the material. The second column lists the section of this part where 
we reference it. The second column is for information only and may not 
be all-inclusive. Anyone may receive copies of these materials from 
International Organization for Standardization, Case Postale 56, CH-
1211 Geneva 20, Switzerland. Table 2 follows:

               Table 2 of Sec.  1065.1010.--ISO Materials
------------------------------------------------------------------------
        Document No. and name                 Part 1065 reference
------------------------------------------------------------------------
ISO 8178, Reciprocating internal      1065.125, 1065.130, 1065.135.
 combustion engines--Exhaust
 emission measurement.
------------------------------------------------------------------------

    (c) SAE material. [Reserved]


Sec. 1065.1015  Confidential information.

    (a) Clearly show what you consider confidential by marking, 
circling, bracketing, stamping, or some other method. We will store 
your confidential information as described in 40 CFR part 2. Also, we 
will disclose it only as specified in 40 CFR part 2.
    (b) If you send us a second copy without the confidential 
information, we will assume it contains nothing confidential whenever 
we need to release information from it.
    (c) If you send us information without claiming it is confidential, 
we may make it available to the public without further notice to you, 
as described in Sec. 2.204 of this chapter.

PART 1068--GENERAL COMPLIANCE PROVISIONS FOR NONROAD PROGRAMS

Subpart A--Applicability and Miscellaneous Provisions
Sec.
1068.1  Does this part apply to me?
1068.5  How must engine manufacturers apply good engineering 
judgment?
1068.10  How do I request EPA to keep my information confidential?
1068.15  Who is authorized to represent the Agency?
1068.20  May EPA enter my facilities for inspections?
1068.25  What definitions apply to this part?
Subpart B--Prohibited Acts and Related Requirements
1068.101  What general actions does this regulation prohibit?
1068.105  What other provisions apply to me specifically if I 
manufacture equipment needing certified engines?
1068.110  What other provisions apply to engines in service?
1068.115  When must engine manufacturers honor emission-related 
warranty claims?
1068.120  What requirements must I follow to rebuild engines?
1068.125  What happens if I violate the regulations?
Subpart C--Exemptions
1068.201  Does EPA exempt any engines from the prohibited acts?
1068.205  What are the provisions for exempting test engines?
1068.210  What are the provisions for exempting manufacturer-owned 
engines?
1068.215  What are the provisions for exempting display engines?
1068.220  What are the provisions for exempting engines for national 
security?
1068.225  What are the provisions for exempting engines for export?
1068.230  What are the provisions for exempting engines used solely 
for competition?
1068.235  What are the provisions for exempting new replacement 
engines?
1068.240  What temporary provisions address hardship due to unusual 
circumstances?
1068.241  What are the provisions for extending compliance deadlines 
for small-volume manufacturers under hardship?

[[Page 51253]]

1068.245  What are the provisions for exempting engines for hardship 
for equipment manufacturers?
Subpart D--Imports
1068.301  Does this subpart apply to me?
1068.305  How do I get an exemption or exclusion for imported 
engines?
1068.310  What are the exclusions for imported engines?
1068.315  What are the permanent exemptions for imported engines?
1068.320  How must I label an imported engine with a permanent 
exemption?
1068.325  What are the temporary exemptions for imported engines?
1068.330  What are the penalties for violations?
Subpart E--Selective Enforcement Auditing
1068.401  What is a selective enforcement audit?
1068.405  What is in a test order?
1068.410  How must I select and prepare my engines?
1068.415  How do I test my engines?
1068.420  How do I know when my engine family does not comply?
1068.425  What happens if one of my production-line engines exceeds 
the emission standards?
1068.430  What happens if an engine family does not comply?
1068.435  May I sell engines from an engine family with a suspended 
certificate of conformity?
1068.440  How do I ask EPA to reinstate my suspended certificate?
1068.445  When may EPA revoke my certificate under this subpart and 
how may I sell these engines again?
1068.450  What records must I send to EPA?
1068.455  What records must I keep?
Appendix A to Subpart E of Part 1068--Plans for Selective 
Enforcement Auditing
Subpart F--Defect Reporting and Recall
1068.501  How do I report engine defects?
1068.505  How does the recall program work?
1068.510  How do I prepare and apply my remedial plan?
1068.515  How do I mark or label repaired engines?
1068.520  How do I notify affected owners?
1068.525  What records must I send to EPA?
1068.530  What records must I keep?
1068.535  How can I do a voluntary recall for emission-related 
problems?
1068.540  What terms do I need to know for this subpart?
Subpart G--Public Hearings
1068.601  How do I request a public hearing?
1068.605  How will EPA set up a public hearing?
1068.610  What are the procedures for a public hearing?
1068.615  How do I appeal a hearing decision?
1068.620  How does a hearing conclude?
Appendix I to Part 1068--Emission Related Components, Parameters, 
and Specifications

    Authority: 42 U.S.C. 7401-7671(q).

Subpart A--Applicability and Miscellaneous Provisions


Sec. 1068.1  Does this part apply to me?

    (a) The provisions of this part apply to everyone with respect to 
the following engines or to equipment using the following engines:
    (1) Large nonroad spark-ignition engines we regulate under 40 CFR 
part 1048.
    (2) Snowmobiles, all-terrain vehicles, and off-highway motorcycles 
we regulate under 40 CFR part 1051.
    (b) This part does not apply to any of the following engine or 
vehicle categories:
    (1) Light-duty motor vehicles (see 40 CFR part 86).
    (2) Heavy-duty motor vehicles and motor vehicle engines (see 40 CFR 
part 86).
    (3) Aircraft engines (see 40 CFR part 87).
    (4) Locomotive engines (see 40 CFR part 92).
    (5) Land-based nonroad diesel engines (see 40 CFR part 89).
    (6) Marine diesel engines (see 40 CFR parts 89 and 94).
    (7) Marine outboard and personal watercraft engines (see 40 CFR 
part 91).
    (8) Small nonroad spark-ignition engines (see 40 CFR part 90).
    (c) For equipment subject to this part and regulated under 
equipment-based standards, interpret the term ``engine'' in this part 
to include equipment (see Sec. 1068.25).
    (d) Follow the provisions of the standard-setting part if they are 
different than any of the provisions in this part.


Sec. 1068.5  How must engine manufacturers apply good engineering 
judgment?

    (a) You must use good engineering judgment for decisions related to 
any requirements under this chapter. This includes your applications 
for certification, any testing you do to show that your production-line 
or in-use engines comply with requirements that apply to them, and how 
you select, categorize, determine, and apply these requirements.
    (b) If we send you a written request, you must give us a written 
description of the engineering judgment in question. Respond within 15 
working days of receiving our request unless we allow more time.
    (c) We may reject your decision if it is not based on good 
engineering judgment or is otherwise inconsistent with the requirements 
that apply, based on the following provisions:
    (1) We may suspend, revoke, or void a certificate of conformity if 
we determine you deliberately used incorrect information or overlooked 
important information, that you did not decide in good faith, or that 
your decision was not rational.
    (2) If we believe a different decision would better reflect good 
engineering judgment, but none of the provisions of paragraph (c)(1) of 
this section apply, we will tell you of our concern (and its basis). 
You will have 30 days to respond to our concerns, or more time if we 
agree that you need it to generate more information. After considering 
your information, we will give you a final ruling. If we conclude that 
you did not use good engineering judgment, we may reject your decision 
and apply the new ruling to similar situations as soon as possible.
    (d) We will tell you in writing of the conclusions we reach under 
paragraph (c) of this section and explain our reasons for them.
    (e) If you disagree with our conclusions, you may file a request 
for a public hearing with the Designated Officer as described in 
subpart F of this part. In your request, specify your objections, 
include data or supporting analysis, and get your authorized 
representative's signature. If we agree that your request raises a 
substantial factual issue, we will hold the hearing according to 
subpart F of this part.


Sec. 1068.10  How do I request EPA to keep my information confidential?

    (a) Clearly identify any information you consider confidential by 
marking, circling, bracketing, stamping, or some other method. We will 
store your confidential information as described in 40 CFR part 2. 
Also, we will disclose it only as specified in 40 CFR part 2. This 
procedure applies equally to the Environmental Appeals Board.
    (b) If you send us a second copy without the confidential 
information, we will assume it contains nothing confidential whenever 
we need to release information from it.
    (c) If you send us information without claiming it is confidential, 
we may make it available to the public without further notice to you, 
as described in Sec. 2.204 of this chapter.


Sec. 1068.15  Who is authorized to represent the Agency?

    The Administrator of the Environmental Protection Agency or any 
official to whom the Administrator has delegated specific authority may 
represent the Agency. For more information, ask for a copy of the 
relevant sections of the EPA Delegation Manual from the Designated 
Officer.

[[Page 51254]]

Sec. 1068.20  May EPA enter my facilities for inspections?

    (a) If you are a certificate holder, we may inspect your engines, 
testing, manufacturing processes, engine storage facilities (including 
port facilities for imported engines), or records to enforce the 
provisions of this chapter. Inspectors will have authorizing 
credentials and will limit inspections to reasonable times--usually, 
normal operating hours.
    (b) If we come to inspect, we may or may not have a warrant or 
court order.
    (1) If we do not have a warrant or court order, you may deny us 
entry.
    (2) If we have a warrant or court order, you must allow us to enter 
the facility and carry out the activities it describes.
    (c) We may seek a warrant or court order authorizing an inspection 
described in this section, whether or not we first tried to get your 
permission to inspect.
    (d) We may select any facility to do any of the following:
    (1) Inspect and monitor any aspect of engine manufacturing, 
assembly, storage, or other procedures, and any facilities where you do 
them.
    (2) Inspect and monitor any aspect of engine test procedures or 
test-related activities, including test engine selection, preparation, 
service accumulation, emission duty cycles, and maintenance and 
verification of your test equipment's calibration.
    (3) Inspect and copy records or documents related to assembling, 
storing, selecting, and testing an engine.
    (4) Inspect and photograph any part or aspect of engines and 
components you use for assembly.
    (e) You must give us reasonable help without charge during an 
inspection. For example, you may need to help us arrange an inspection 
with the facility's managers, including clerical support, copying, and 
translation. You may also need to show us how the facility operates and 
answer other questions. If we ask in writing to see a particular 
employee at the inspection, you must ensure that he or she is present 
(legal counsel may accompany the employee).
    (f) If you have facilities in other countries, we expect you to 
locate them in places where local law does not keep us from inspecting 
as described in this section. We will not try to inspect if we learn 
that local law prohibits it, but we may suspend your certificate if we 
are not allowed to inspect.


Sec. 1068.25  What definitions apply to this part?

    The following definitions apply to this part:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.
    Aircraft means any vehicle capable of sustained air travel above 
treetop heights.
    Certificate holder means an engine manufacturer (including 
importers) with a valid certificate of conformity for at least one 
engine family in a given calendar year.
    Designated Officer means the Manager of the Engine Programs Group 
(6403-J), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave., 
Washington, DC 20460.
    Engine means an engine to which this part applies. For equipment 
subject to this part and regulated under equipment-based standards, the 
term engine in this part shall be interpreted to include equipment.
    Engine-based means having emission standards related to 
measurements using an engine dynamometer, in units of grams of 
pollutant per kilowatt-hour.
    Engine manufacturer has the meaning given in section 216(1) of the 
Act. In general, this term includes any person who manufactures an 
engine for sale in the United States or otherwise introduces a new 
engine into commerce in the United States. This includes importers. For 
equipment subject to this part and regulated under equipment-based 
standards, the term engine manufacturer in this part shall be 
interpreted to include equipment manufacturers.
    Equipment-based means having emission standards related to 
measurements from an engine installed in a vehicle using a chassis 
dynamometer, in units of grams of pollutant per kilometer.
    Equipment manufacturer means any company producing a piece of 
equipment for sale or use in the United States.
    New has the meaning we give it in the standard-setting part.
    Nonroad engine means:
    (1) Except as discussed in paragraph (2) of this definition, a 
nonroad engine is any internal combustion engine:
    (i) In or on a piece of equipment that is self-propelled or serves 
a dual purpose by both propelling itself and performing another 
function (such as garden tractors, off-highway mobile cranes and 
bulldozers); or
    (ii) In or on a piece of equipment that is intended to be propelled 
while performing its function (such as lawnmowers and string trimmers); 
or
    (iii) That, by itself or in or on a piece of equipment, is portable 
or transportable, meaning designed to be and capable of being carried 
or moved from one location to another. Indicia of transportability 
include, but are not limited to, wheels, skids, carrying handles, 
dolly, trailer, or platform.
    (2) An internal combustion engine is not a nonroad engine if:
    (i) The engine is used to propel a motor vehicle or a vehicle used 
solely for competition, or is subject to standards promulgated under 
section 202 of the Act; or
    (ii) The engine is regulated by a federal New Source Performance 
Standard promulgated under section 111 of the Act; or
    (iii) The engine otherwise included in paragraph (1)(iii) of this 
definition remains or will remain at a location for more than 12 
consecutive months or a shorter period of time for an engine located at 
a seasonal source. A location is any single site at a building, 
structure, facility, or installation. Any engine (or engines) that 
replaces an engine at a location and that is intended to perform the 
same or similar function as the engine replaced will be included in 
calculating the consecutive time period. An engine located at a 
seasonal source is an engine that remains at a seasonal source during 
the full annual operating period of the seasonal source. A seasonal 
source is a stationary source that remains in a single location on a 
permanent basis (i.e., at least two years) and that operates at that 
single location approximately three months (or more) each year. This 
paragraph (2)(iii) of this definition does not apply to an engine after 
the engine is removed from the location.
    Operating hours means:
    (1) For engine storage areas or facilities, times during which 
people other than custodians are at work near, and can access, a 
storage area or facility.
    (2) For other areas or facilities, times during which an assembly 
line operates or any of the following activities occurs:
    (i) Testing, maintenance, or service accumulation.
    (ii) Production or compilation of records.
    (iii) Certification testing.
    (iv) Translation of designs from the test stage to the production 
stage.
    (v) Engine manufacture or assembly.
    Piece of equipment means any vehicle, vessel, locomotive, aircraft, 
or other type of equipment using engines to which this part applies.
    Placed into service means used for its intended purpose.
    Standard-setting part means the part in the Code of Federal 
Regulations that defines emission standards for a particular engine 
(see Sec. 1068.1(a)).
    Ultimate purchaser means the first person who in good faith buys a 
new engine without intending to resell it.

[[Page 51255]]

    United States means the States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, and the Trust 
Territory of the Pacific Islands.
    We (us, our) means the Administrator of the Environmental 
Protection Agency and any authorized representatives.

Subpart B--Prohibited Acts and Related Requirements


Sec. 1068.101  What general actions does this regulation prohibit?

    (a) The following prohibitions apply to manufacturers of new 
engines and manufacturers of equipment containing these engines, except 
as described in subparts C and D of this part:
    (1) You may not sell, offer for sale, or introduce or deliver into 
commerce in the United States or import into the United States any new 
engine or equipment after emission standards take effect for that 
engine or equipment, unless it has a valid certificate of conformity 
for its model year and the required label or tag. You also may not take 
any of the actions listed in the previous sentence with respect to any 
equipment containing an engine subject to this part's provisions, 
unless the engine has a valid certificate of conformity for its model 
year and the required engine label or tag. This requirement also covers 
new engines you produce to replace an older engine in a piece of 
equipment, unless the engine qualifies for the replacement-engine 
exemption in Sec. 1068.235. The maximum civil penalty is $27,500 for 
each engine in violation.
    (2) This chapter requires you to record certain types of 
information to show that you meet our standards. You may not omit these 
requirements to make and maintain required records (including those 
described in Sec. 1068.501). You may not deny us access to or copying 
of your records if we have the authority to see or copy them. Also, you 
may not delay or omit giving us required reports or information. The 
maximum civil penalty is $27,500 for each day in violation.
    (3) You may not keep us from entering your facility to test engines 
or inspect if we are authorized to do so. Also, you may not omit tests 
we require (or omit having the tests done for you). The maximum civil 
penalty is $27,500 for each day in violation.
    (b) The following prohibitions apply to everyone with respect to 
the engines to which this part applies:
    (1) You may not remove or disable a device or element of design 
that may affect an engine's emission levels. This restriction applies 
before and after the engine is placed in service. Section 1068.120 
describes how this applies to rebuilding engines. For a manufacturer or 
dealer, the maximum civil penalty is $27,500 for each engine in 
violation. For anyone else, the maximum civil penalty is $2,500 for 
each engine in violation. This does not apply in any of the following 
situations:
    (i) You need to repair an engine and you restore it to proper 
functioning when the repair is complete.
    (ii) You need to modify an engine to respond to a temporary 
emergency and you restore it to proper functioning as soon as possible.
    (iii) You modify a new engine that another manufacturer has already 
certified to meet emission standards, intending to recertify it under 
your own engine family. In this case you must tell the original 
manufacturer not to include the modified engines in the original engine 
family.
    (2) You may not knowingly manufacture, sell, offer to sell, or 
install, an engine part if one of its main effects is to bypass, 
impair, defeat, or disable the engine's control of emissions. The 
maximum civil penalty is $2,500 for each part in violation.
    (3) For an engine that is excluded from any requirements of this 
chapter because it is a stationary engine, you may not move it or 
install it in any mobile equipment, except as allowed by the provisions 
of this chapter. You may not circumvent or attempt to circumvent the 
residence-time requirements of paragraph (2)(iii) of the nonroad engine 
definition in Sec. 1068.25. The maximum civil penalty is $27,500 for 
each day in violation.
    (4) For an engine or piece of equipment that is excluded from any 
requirements of this chapter because it is to be used solely for 
competition, you may not use it in a manner that is inconsistent with 
use solely for competition. The maximum civil penalty is $27,500 for 
each day in violation.
    (c) Exemptions from these prohibitions are described in subparts C 
and D of this part.
    (d) The standard-setting parts describe more requirements and 
prohibitions that apply to engine manufacturers (including importers) 
and others under this chapter.
    (e) The maximum penalties in paragraphs (a) and (b) of this section 
and in Sec. 1068.125(b) are in 1970 dollars. The Federal Civil 
Penalties Inflation Adjustment Act of 1990 (Public Law 101-410, 104 
Stat. 890 and 28 U.S.C. 2461) and associated regulations describe how 
to adjust these figures based on the date of the violation.


Sec. 1068.105  What other provisions apply to me specifically if I 
manufacture equipment needing certified engines?

    (a) Transitioning to new standards. You may use up your normal 
inventory of engines not certified to new emission standards if they 
were built before the date of the new standards. However, stockpiling 
these engines violates Sec. 1068.101(a)(1).
    (b) Installing engines. You must follow the engine manufacturer's 
emission-related installation instructions. For example, you may need 
to constrain where you place an exhaust aftertreatment device or 
integrate into your equipment models a device for sending visual or 
audible signals to the operator. Not meeting the manufacturer's 
emission-related installation instructions is a violation of 
Sec. 1068.101(b)(1).
    (c) Attaching a duplicate label. If you obscure the engine's label, 
you must do three things to avoid violating Sec. 1068.101(a)(1):
    (1) Permanently attach to your equipment a duplicate label. Secure 
it to a part needed for normal operation and not normally requiring 
replacement.
    (2) Make sure your label is identical to the engine label. You may 
make the label yourself or get it from the engine manufacturer.
    (3) Make sure an average person can easily read it.
    (d) Producing nonroad equipment certified to highway emission 
standards. You may produce nonroad equipment from complete or 
incomplete motor vehicles with the motor vehicle engine if you meet 
three criteria:
    (1) The engine or vehicle is certified to 40 CFR part 86.
    (2) The engine is not adjusted outside the manufacturer's 
specifications.
    (3) The engine or vehicle is not modified in any way that may 
affect its emission control. This applies to evaporative emission 
controls, but not refueling emission controls.


Sec. 1068.110  What other provisions apply to engines in service?

    (a) Aftermarket parts and service. As the engine manufacturer, you 
may not require anyone to use your parts or service to maintain or 
repair an engine, unless we approve this in your application for 
certification.
    (b) Certifying aftermarket parts. As the manufacturer or rebuilder 
of an aftermarket engine part, you may--but are not required to--
certify according to

[[Page 51256]]

Sec. 85.2114 of this chapter that using the part will not cause engines 
to fail to meet emission standards.
    (c) Defeat devices. We may test equipment or engines to investigate 
potential defeat devices. We may also require the engine manufacturer 
to do this testing. If we choose to investigate one of your designs, we 
may require you to show us that it does not have a defeat device. To do 
this, you may have to share with us information regarding test 
programs, engineering evaluations, design specifications, calibrations, 
on-board computer algorithms, and design strategies.
    (d) Warranty and maintenance. Owners may make warranty claims 
against the engine manufacturer for emission-related parts, as 
described in Sec. 1068.115. This generally includes any emission-
related engine parts that were not in common use before we have adopted 
emission standards. In general, we consider replacement or repair of 
any other components to be the owner's responsibility. The warranty 
period begins when the engine is first placed into service.


Sec. 1068.115  When must engine manufacturers honor emission-related 
warranty claims?

    (a) As an engine manufacturer, you may not deny emission-related 
warranty claims based on any of the following:
    (1) Maintenance or other service you or your authorized facilities 
performed.
    (2) Engine repair work that an operator performed to correct an 
unsafe, emergency condition attributable to you, as long as the 
operator tries to restore the engine to its proper configuration as 
soon as possible.
    (3) Any action or inaction by the operator unrelated to the 
warranty claim.
    (4) Maintenance that was performed more frequently than you 
specify.
    (5) Anything that is your fault or responsibility.
    (6) The use of any fuel that is commonly available where the engine 
operates, unless your written maintenance instructions state that this 
fuel would harm the engine's emission control system and operators can 
readily find the proper fuel.
    (b) As long as none of the restrictions of paragraph (a) of this 
section apply, you may deny an emission-related warranty claim if 
either of the following occurs:
    (1) Owners are not able to show they followed your written 
maintenance instructions, as described in paragraph (c) of this 
section.
    (2) You prove that the warranty claim was caused by any of the 
following:
    (i) The operator abused the engine by using it for purposes for 
which it was not designed.
    (ii) Someone improperly installed an engine part or set engine 
parameters outside your specified adjustable ranges during any 
scheduled maintenance related to the affected part or system.
    (iii) Someone permanently removed or disabled the engine's emission 
control system or any of its components during unscheduled maintenance 
related to the affected part or system.
    (c) You may ask owners to show they followed your written 
maintenance instructions only if you have an objective reason to 
believe they did not follow these instructions and that this would have 
caused the defect that is the subject of their warranty claim.
    (1) If owners do their own maintenance, they may state that they 
performed the prescribed maintenance at the approximate intervals (in 
months or operating hours) and show they bought and used proper parts. 
You may ask them to show they are able to perform the maintenance 
properly.
    (2) If owners hire others to maintain their engines, they may rely 
on service receipts or a maintenance log book validated at the 
approximate intervals (in months or operating hours) by those who 
performed the maintenance.


Sec. 1068.120  What requirements must I follow to rebuild engines?

    (a) This section describes the steps to take when rebuilding 
engines to avoid violating the tampering prohibition in 
Sec. 1068.101(b)(1). These requirements apply to anyone rebuilding an 
engine subject to this part, but the reporting requirements in 
paragraphs (i) and (j) of this section apply only to businesses.
    (b) The term ``rebuilding'' refers to a partial or complete rebuild 
of an engine or engine system, including a major overhaul in which you 
replace the engine's power assemblies or make other changes that 
significantly increase the service life of the engine. It also includes 
replacing or rebuilding an engine's turbocharger or aftercooler or its 
systems for fuel metering or electronic control. For these provisions, 
rebuilding may or may not involve removing the engine from the 
equipment. For other maintenance or service that is not rebuilding, you 
must still not make changes that might increase emissions, but you do 
not need to keep any records.
    (c) If you rebuild an engine, you must have a reasonable technical 
basis for knowing that the rebuilt engine has the same emissions 
performance as the engine in its certified configuration. Identify the 
model year of the resulting engine configuration. You have a reasonable 
basis if you meet two main conditions:
    (1) Install parts--new, used, or rebuilt--so a person familiar with 
engine design and function would reasonably believe that the engine 
with those parts will control emissions to the same degree as with the 
original parts.
    (2) Adjust parameters or change design elements only according to 
the original engine manufacturer's instructions. Or, if you differ from 
these instructions, you must have data or some other technical basis to 
show you should not expect in-use emissions to increase.
    (d) If the rebuilt engine remains installed or is reinstalled in 
the same piece of equipment, you must rebuild it to the original 
configuration or another certified configuration of the same or later 
model year.
    (e) If the rebuilt engine replaces another engine in a piece of 
equipment, you must rebuild it to a certified configuration that equals 
the emissions performance of the engine you are replacing.
    (f) Do not erase or reset emission-related codes or signals from 
onboard monitoring systems without diagnosing and responding 
appropriately to any diagnostic codes. This requirement applies 
regardless of the manufacturer's reason for installing the monitoring 
system and regardless of its form or interface. Clear any codes from 
diagnostic systems when you return the rebuilt engine to service. Do 
not disable a diagnostic signal without addressing its cause.
    (g) When you rebuild an engine, check, clean, adjust, repair, or 
replace all emission-related components (listed in Appendix I of this 
part) as needed according to the original manufacturer's recommended 
practice. In particular, replace oxygen sensors, replace the catalyst 
if there is evidence of malfunction, clean gaseous fuel system 
components, and replace fuel injectors (if applicable).
    (h) If you are installing an engine that someone else has rebuilt, 
check all emission-related components listed in Appendix I of this part 
as needed according to the original manufacturer's recommended 
practice.
    (i) Keep at least the following records:
    (1) Identify the hours of operation (or mileage, as appropriate) at 
time of rebuild.
    (2) Identify the work done on the engine or any emission-related 
control components, including a listing of parts and components you 
used.
    (3) Describe any engine parameter adjustments.

[[Page 51257]]

    (4) Identify any emission-related codes or signals you responded to 
and reset.
    (j) You must show us or send us your records if we ask for them. 
Keep records for at least two years after rebuilding an engine. Keep 
them in any format that allows us to readily review them.
    (1) You do not need to keep information that is not reasonably 
available through normal business practices. We do not expect you to 
have information that you cannot reasonably access.
    (2) You do not need to keep records of what other companies do.
    (3) You may keep records based on engine families rather than 
individual engines if that is the way you normally do business.


Sec. 1068.125  What happens if I violate the regulations?

    (a) Civil penalties and injunctions. We may bring a civil action to 
assess and recover civil penalties and/or enjoin and restrain 
violations in the United States District Court for the district where 
you allegedly violated a requirement, or the district where you live or 
have your main place of business. Actions to assess civil penalties or 
restrain violations of Sec. 1068.101 must be brought by and in the name 
of the United States. The selected court has jurisdiction to restrain 
violations and assess civil penalties.
    (1) To determine the amount of a civil penalty and reach a just 
conclusion, the court considers six main factors:
    (i) The seriousness of your violation.
    (ii) How much you benefitted or saved because of the violation.
    (iii) The size of your business.
    (iv) Your history of compliance with Title II of the Act.
    (v) What you did to remedy the violation.
    (vi) How the penalty will affect your ability to continue in 
business.
    (2) Subpoenas for witnesses who must attend a district court in any 
district may apply to any other district.
    (b) Administrative penalties. Instead of bringing a civil action, 
we may assess administrative penalties if the total is less than 
$200,000 against you individually. This maximum penalty may be greater 
if the Administrator and the Attorney General jointly determine that is 
appropriate for administrative penalty assessment. No court may review 
such a determination. Before we assess an administrative penalty, you 
may ask for a hearing (subject to 40 CFR part 22).
    (1) To determine the amount of an administrative penalty, we will 
consider the factors described in paragraph (a)(1) of this section.
    (2) An administrative order we issue under this paragraph (b) 
becomes final 30 days after we issue it, unless you ask for judicial 
review by that time (see paragraph (c) of this section). You may ask 
for review by any of the district courts listed in paragraph (a) of 
this section. Send the Administrator a copy of the filing by certified 
mail.
    (3) We will not pursue an administrative action for a violation if 
either of the following two conditions is true:
    (i) We are separately prosecuting the violation under this part.
    (ii) We have issued a final order for a violation, no longer 
subject to judicial review, for which you have already paid a penalty.
    (c) Judicial review. If you ask a court to review a civil or 
administrative penalty, we will file in the appropriate court within 30 
days of your request a certified copy or certified index of the record 
on which the court or the Administrator issued the order.
    (1) The judge may set aside or remand any order issued under this 
section only if he or she believes one of the following is true:
    (i) Substantial evidence does not exist in the record, taken as a 
whole, to support finding a violation.
    (ii) The Administrator's assessment of the penalty is an abuse of 
discretion.
    (2) The judge may add civil penalties if he or she believes our 
penalty is an abuse of discretion that favors you.
    (d) Effect of enforcement actions on other requirements. Our 
pursuit of civil or administrative penalties does not affect or limit 
our authority to enforce any provisions of this chapter.
    (e) Penalties. In any proceedings, the United States government may 
seek to collect civil penalties assessed under this section.
    (1) Once a penalty assessment is final, if you do not pay it, the 
Administrator will ask the Attorney General to bring a civil action in 
an appropriate district court to recover the money. We may collect 
interest from the date of the final order or final judgment at rates 
established by the Internal Revenue Code of 1986 (26 U.S.C. 
6621(a)(2)). In this action to collect overdue penalties, the court 
will not review the validity, amount, and appropriateness of the 
penalty.
    (2) In addition, if you do not pay the full amount of a penalty on 
time, you must then pay more to cover interest, enforcement expenses 
(including attorney's fees and costs for collection), and a quarterly 
nonpayment penalty for each quarter you do not pay. The nonpayment 
penalty is 10 percent of your total penalties plus any unpaid 
nonpayment penalties from previous quarters.

Subpart C--Exemptions


Sec. 1068.201  Does EPA exempt any engines from the prohibited acts?

    We may exempt new engines from the prohibited acts in subpart B of 
this part under requirements described in this subpart. We may exempt 
an engine already placed in service in the United States from the 
prohibition in Sec. 1068.101(b)(1) if the exemption for engines used 
solely for competition applies (see Sec. 1068.230).
    (a) This subpart identifies which engines qualify for exemptions 
and what information we need. We may ask for more information.
    (b) If you violate any of the terms, conditions, instructions, or 
requirements to qualify for an exemption, we may void the exemption.
    (c) If you use an exemption under this subpart, we may require you 
to add a permanent label to your exempted engines.
    (d) If you produce engines we exempt under this subpart, we may 
require you to make and keep records, perform tests, make reports and 
provide information as needed to reasonably evaluate the validity of 
the exemption.
    (e) If you own or operate engines we exempt under this subpart, we 
may require you to provide information as needed to reasonably evaluate 
the validity of the exemption.
    (f) Subpart D of this part describes how we apply these exemptions 
to engines you import (or intend to import).
    (g) If you want to ask for an exemption or need more information, 
write to the Designated Officer.


Sec. 1068.205  What are the provisions for exempting test engines?

    (a) We may exempt engines you use for research, investigations, 
studies, demonstrations, or training.
    (b) Anyone may ask for a testing exemption.
    (c) If you are a certificate holder, you may request an exemption 
for engines you intend to include in test programs over a two-year 
period.
    (1) In your request, tell us the maximum number of engines involved 
and describe how you will make sure exempted engines are used only for 
this testing.
    (2) Give us the information described in paragraph (d) of this 
section if we ask for it.
    (d) If you are not a certificate holder do all of the following:

[[Page 51258]]

    (1) Show that the proposed test program has a valid purpose under 
paragraph (a) of this section.
    (2) Show you need an exemption to achieve the purpose of the test 
program (time constraints may be a basis for needing an exemption, but 
the cost of certification alone is not).
    (3) Estimate the duration of the proposed test program and the 
number of engines involved.
    (4) Allow us to monitor the testing.
    (5) Describe how you will ensure that you stay within this 
exemption's purposes. Address at least the following things:
    (i) The technical nature of the test.
    (ii) The test site.
    (iii) The duration and accumulated engine operation associated with 
the test.
    (iv) Ownership of the engines involved in the test.
    (v) The intended final disposition of the engines.
    (vi) How you will identify, record, and make available the engine 
identification numbers.
    (vii) The means or procedure for recording test results.
    (e) If we approve your request for a testing exemption, we will 
send you a letter or a memorandum for your signature describing the 
basis and scope of the exemption. It will also include any necessary 
terms and conditions, which normally require you to do the following:
    (1) Stay within the scope of the exemption.
    (2) Create and maintain adequate records that we may inspect.
    (3) Add a permanent, legible label, written in block letters in 
English, to a readily visible part of each exempted engine. This label 
must include at least the following items:
    (i) The label heading ``EMISSION CONTROL INFORMATION.''
    (ii) Your corporate name and trademark.
    (iii) Engine displacement, engine family identification, and model 
year of the engine or whom to contact for further information.
    (iv) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 1068.205 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (4) Tell us when the test program is finished.
    (5) Tell us the final disposition of the engines.
    (6) Send us a written confirmation that you meet the terms and 
conditions of this exemption.


Sec. 1068.210  What are the provisions for exempting manufacturer-owned 
engines?

    (a) You are only eligible for the exemption for manufacturer-owned 
engines if you are a certificate holder.
    (b) An engine may be exempt without a request if it is a 
nonconforming engine under your ownership and control and you operate 
it to develop products, assess production methods, or promote your 
engines in the marketplace. You may not lease, sell, or use the engine 
to generate revenue, either by itself or in a piece of equipment.
    (c) To use this exemption, you must do three things:
    (1) Establish, maintain, and keep adequately organized and indexed 
information on each exempted engine, including the engine 
identification number, the use of the engine on exempt status, and the 
final disposition of any engine removed from exempt status.
    (2) Let us access these records, as described in Sec. 1068.20.
    (3) Add a permanent, legible label, written in block letters in 
English, to a readily visible part of each exempted engine. This label 
must include at least the following items:
    (i) The label heading ``EMISSION CONTROL INFORMATION.''
    (ii) Your corporate name and trademark.
    (iii) Engine displacement, engine family identification, and model 
year of the engine or whom to contact for further information.
    (iv) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 1068.210 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.


Sec. 1068.215  What are the provisions for exempting display engines?

    (a) You are only eligible for the exemption for display engines if 
you are a certificate holder.
    (b) A display engine is exempt without a request if it is a 
nonconforming engine you use only for displays in the interest of a 
business or the general public. This exemption does not apply to 
engines displayed for any of the following:
    (1) For private use.
    (2) For other purposes that are not available to the public daily.
    (3) For any other purpose we determine is inappropriate for a 
display exemption.
    (c) You may operate the exempted engine, but only if the operation 
is part of the display. You may not sell or lease a display engine or 
use it to generate revenue without a certificate of conformity and an 
engine label.
    (d) To use this exemption, you must add a permanent, legible label, 
written in block letters in English, to a readily visible part of each 
exempted engine. This label must include at least the following items:
    (1) The label heading ``EMISSION CONTROL INFORMATION.''
    (2) Your corporate name and trademark.
    (3) Engine displacement, engine family identification, and model 
year of the engine or whom to contact for further information.
    (4) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 1068.215 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.


Sec. 1068.220  What are the provisions for exempting engines for 
national security?

    (a) You are only eligible for the exemption for national security 
if you are an engine manufacturer.
    (b) Your engine is exempt without a request if you produce it for a 
piece of equipment owned or used by an agency of the federal government 
responsible for national defense, where the equipment has armor, 
permanently attached weaponry, or other substantial features typical of 
military combat.
    (c) You may request a national security exemption for engines not 
meeting the conditions of paragraph (b) of this section, as long as 
your request is endorsed by an agency of the federal government 
responsible for national defense. In your request, explain why you need 
the exemption.


Sec. 1068.225  What are the provisions for exempting engines for 
export?

    (a) If you export a new engine to a country with emission standards 
identical to ours, we will not exempt it. These engines must comply 
with our certification requirements.
    (b) If you export an engine to a country with different emission 
standards or no emission standards, it is exempt from the prohibited 
acts in this part without a request. If you produce an exempt engine 
for export and it is sold or offered for sale to someone in the United 
States (except for export), we will void the exemption.
    (c) Label each exempted engine and shipping container with a label 
or tag showing the engine is not certified for sale or use in the 
United States. The label must include at least the statement ``THIS 
ENGINE IS SOLELY FOR EXPORT AND IS THEREFORE IS EXEMPT UNDER 40 CFR 
1068.225 FROM U.S. EMISSION STANDARDS AND RELATED REQUIREMENTS.''.

[[Page 51259]]

Sec. 1068.230  What are the provisions for exempting engines used 
solely for competition?

    (a) If you modify an engine after it has been placed into service 
in the United States so it will be used solely for competition, it is 
exempt without request. This exemption applies only to the prohibition 
in Sec. 1068.101(b)(1) and is valid only as long as the engine is used 
solely for competition.
    (b) If you modify an engine under this exemption, you must destroy 
the original emissions label. If you sell or give one of these engines 
to someone else, you must tell the new owner in writing that it may be 
used only for competition.
    (c) New engines you produce that are used solely for competition 
are generally excluded from emission standards. See the standard-
setting parts for specific provisions.


Sec. 1068.235  What are the provisions for exempting new replacement 
engines?

    (a) You are only eligible for the exemption for new replacement 
engines if you are a certificate holder.
    (b) The prohibitions in Sec. 1068.101(a)(1) do not apply to an 
engine if all the following conditions apply:
    (1) You produce a new engine to replace an engine already placed in 
service in a piece of equipment.
    (2) The engine being replaced was manufactured before the emission 
standards that would otherwise apply to the new engine took effect.
    (3) No engine certified to current emission requirements is 
available with the appropriate physical or performance characteristics 
for the piece of equipment.
    (4) You or your agent takes possession of the old engine.
    (5) You clearly label the replacement engine with the following 
language, or similar alternate language that we approve:

    THIS ENGINE DOES NOT COMPLY WITH FEDERAL NONROAD OR HIGHWAY 
EMISSION REQUIREMENTS. SELLING OR INSTALLING THIS ENGINE FOR ANY 
PURPOSE OTHER THAN AS A REPLACEMENT ENGINE IN A VEHICLE OR PIECE OF 
EQUIPMENT BUILT BEFORE JANUARY 1, [INSERT APPROPRIATE YEAR] IS A 
VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.

    (6) You make the replacement engine in a configuration identical in 
all material respects to the engine being replaced (or that of another 
certified engine of the same or later model year). This requirement 
applies only if the old engine was certified to emission standards less 
stringent than those in effect when you produce the replacement engine.


Sec. 1068.240  What temporary provisions address hardship due to 
unusual circumstances?

    (a) After considering the circumstances, we may permit you to 
introduce into commerce engines or equipment that do not comply with 
emission standards if all the following conditions and requirements 
apply:
    (1) Unusual circumstances that are clearly outside your control and 
that could not have been avoided with reasonable discretion prevent you 
from meeting requirements from this chapter.
    (2) You exercised prudent planning and were not able to avoid the 
violation; you have taken all reasonable steps to minimize the extent 
of the nonconformity.
    (3) Not having the exemption will jeopardize the solvency of your 
company.
    (4) No other allowances are available under the regulations in this 
chapter to avoid the impending violation.
    (b) To apply for an exemption, you must send the Designated Officer 
a written request as soon as possible before you are in violation. In 
your request, show that you meet all the conditions and requirements in 
paragraph (a) of this section.
    (c) Include in your request a plan showing how you will meet all 
the applicable requirements as quickly as possible.
    (d) You must give us other relevant information if we ask for it.
    (e) We may include reasonable additional conditions on an approval 
granted under this section, including provisions to recover or 
otherwise address the lost environmental benefit or paying fees to 
offset any economic gain resulting from the exemption. For example, in 
the case of multiple tiers of emission standards, we may require that 
you meet the less stringent standards.


Sec. 1068.241  What are the provisions for extending compliance 
deadlines for small-volume manufacturers under hardship?

    (a) After considering the circumstances, we may extend the 
compliance deadline for you to meet new or revised emission standards, 
as long as you meet all the conditions and requirements in this 
section.
    (b) To be eligible for this exemption, you must qualify under the 
standard-setting part for special provisions for small businesses or 
small-volume manufacturers.
    (c) To apply for an extension, you must send the Designated Officer 
a written request. In your request, show that all the following 
conditions and requirements apply:
    (1) You have taken all possible business, technical, and economic 
steps to comply.
    (i) In the case of importers, show that you are unable to find a 
manufacturer capable of supplying complying products.
    (ii) For all other manufacturers, show that the burden of 
compliance costs prevents you from meeting the requirements of this 
chapter.
    (2) Not having the exemption will jeopardize the solvency of your 
company.
    (3) No other allowances are available under the regulations in this 
chapter to avoid the impending violation.
    (d) In describing the steps you have taken to comply under 
paragraph (c)(1) of this section, include at least the following 
information:
    (1) Describe your business plan, showing the range of projects 
active or under consideration.
    (2) Describe your current and projected financial standing, with 
and without the burden of complying with regulations.
    (3) Describe your efforts to raise capital to comply with 
regulations.
    (4) Identify the engineering and technical steps you have taken or 
plan to take to comply with regulations.
    (5) Identify the level of compliance you can achieve. For example, 
you may be able to produce engines that meet a somewhat less stringent 
emission standard than the regulations in this chapter require.
    (e) Include in your request a plan showing how you will meet all 
the applicable requirements as quickly as possible.
    (f) You must give us other relevant information if we ask for it.
    (g) An authorized representative of your company must sign the 
request and include the statement: ``All the information in this 
request is true and accurate, to the best of my knowledge.''.
    (h) Send your request for this extension at least nine months 
before the relevant deadline. If different deadlines apply to companies 
that are not small-volume manufacturers, do not send your request 
before the regulations in question apply to the other manufacturers. 
Otherwise, do not send your request more than three years before the 
relevant deadline.
    (i) We may include reasonable requirements on an approval granted 
under this section, including provisions to recover or otherwise 
address the lost environmental benefit. For example, we may require 
that you meet a less stringent emission standard or buy and use 
available emission credits.

[[Page 51260]]

    (j) We will approve extensions of up to one year. We may review and 
revise an extension as reasonable under the circumstances.


Sec. 1068.245  What are the provisions for exempting engines for 
hardship for equipment manufacturers?

    (a) Equipment exemption. As an equipment manufacturer in the case 
of an engine-based standard, you may ask for approval to produce 
exempted equipment for up to one year. Send the Designated Officer a 
written request for an exemption before you are in violation. In your 
request, show you are not at fault for the impending violation and that 
you would face serious economic hardship if we do not grant the 
exemption. This exemption is not available if you manufacture the 
engine you need for your own equipment, unless we allow it elsewhere in 
this chapter. We may impose other conditions, including provisions to 
recover the lost environmental benefit.
    (b) Engine exemption. As an engine manufacturer, you may produce 
nonconforming engines for the equipment we exempt in paragraph (a) of 
this section. You do not have to request this exemption for your 
engines, but you must have written assurance from equipment 
manufacturers that they need a certain number of exempted engines under 
this section. Add a permanent, legible label, written in block letters 
in English, to a readily visible part of each exempted engine. This 
label must include at least the following items:
    (1) The label heading ``EMISSION CONTROL INFORMATION.''
    (2) Your corporate name and trademark.
    (3) Engine displacement (in liters), rated power, and model year of 
the engine or whom to contact for further information.
    (4) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 1068.245 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.

Subpart D--Imports


Sec. 1068.301  Does this subpart apply to me?

    (a) This subpart applies to you if you import into the United 
States engines or equipment subject to our emission standards or 
equipment containing engines subject to our emission standards.
    (b) In general, engines that you import must be covered by a 
certificate of conformity unless they were built before emission 
standards started to apply. This subpart describes the limited cases 
where we allow importation of exempt or excluded engines.
    (c) The U.S. Customs Service may prevent you from importing an 
engine if you do not meet the requirements of this subpart. In 
addition, U.S. Customs Service regulations may contain other 
requirements for engines imported into the United States (see 19 CFR 
Chapter I).


Sec. 1068.305  How do I get an exemption or exclusion for imported 
engines?

    (a) Prepare a written request in which you do the following:
    (1) Give your name, address, telephone number, and taxpayer 
identification number.
    (2) Give the engine owner's name, address, telephone number, and 
taxpayer identification number.
    (3) Identify the make, model, identification number, and original 
production year of each engine.
    (4) Identify which exemption or exclusion in this subpart allows 
you to import a nonconforming engine and describe how your engine 
qualifies.
    (5) Tell us where you will keep your engines if you might need to 
store them until we approve your request.
    (6) Authorize us to inspect or test your engines as the Act allows.
    (b) We may ask for more information.
    (c) You may import the nonconforming engines you identify in your 
request if you get prior written approval from us. The U.S. Customs 
Service may require you to show them the approval letter. We may 
temporarily or permanently approve the exemptions or exclusions, as 
described in this subpart.
    (d) Make sure the engine meets any labeling requirements that 
apply, as described in this subpart.


Sec. 1068.310  What are the exclusions for imported engines?

    The emission standards of this part do not apply to excluded 
engines that you import. If you show us that your engines qualify under 
one of the following provisions, we will approve your request to 
exclude engines:
    (a) Engines used solely for competition. See the standard-setting 
part for any special provisions that apply to engines used solely for 
competition. Section 1068.101(b)(4) prohibits using these engines for 
other purposes.
    (b) Stationary engines. This includes engines that will be used in 
a permanently fixed location and engines meeting the criteria for the 
exclusion in paragraph (2)(iii) of the nonroad engine definition in 
Sec. 1068.25. Section 1068.101(b)(3) prohibits using these engines for 
other purposes.
    (c) Hobby engines. See 40 CFR 90.1.
    (d) Engines used in aircraft. See 40 CFR part 87.
    (e) Engines used in underground mining. See 40 CFR 89.1.


Sec. 1068.315  What are the permanent exemptions for imported engines?

    We may approve a permanent exemption for an imported engine under 
the following conditions:
    (a) National security exemption. You may an import engine under the 
national security exemption in Sec. 1068.220.
    (b) Manufacturer-owned engine exemption. You may import a 
manufacturer-owned engine, as described in Sec. 1068.210.
    (c) Replacement engine exemption. You may import a nonconforming 
replacement engine as described in Sec. 1068.235. To use this 
exemption, you must be a certificate holder for an engine family we 
regulate under the same part as the replacement engine.
    (d) Extraordinary circumstances exemption. You may import a 
nonconforming engine if we grant hardship relief as described in 
Sec. 1068.240.
    (e) Hardship exemption. You may import a nonconforming engine if we 
grant an exemption for the transition to new or revised emission 
standards, as described in Sec. 1068.245.
    (f) Identical configuration exemption. You may import a 
nonconforming engine if it is identical to certified engines, subject 
to the following provisions:
    (1) You may import only the following engines under this exemption:
    (i) Large nonroad spark-ignition engines (see part 1048 of this 
chapter).
    (ii) Recreational nonroad spark-ignition engines and equipment (see 
part 1051 of this chapter).
    (2) You must meet all the following criteria:
    (i) You have owned the engine for at least one year.
    (ii) You agree not to sell, lease, donate, trade, or otherwise 
transfer ownership of the engine for at least five years, or until the 
engine is eligible for the exemption in paragraph (h) of this section. 
The only acceptable way to dispose of the engine is to destroy or 
export it.
    (iii) You use data or evidence sufficient to show that the engine 
is in a configuration that is the same as an engine the original 
manufacturer has certified to meet emission standards that apply at the 
time the manufacturer finished assembling or modifying the engine in 
question. If you modify the engine to make it identical, you must 
follow the original manufacturer's complete written instructions.

[[Page 51261]]

    (3) We will tell you in writing if we find the information 
insufficient to show that the engine is eligible for this exemption. In 
this case, we will not consider your request further until you address 
our concerns.
    (g) Personal-use exemption. You may import a nonconforming engine 
for your personal use.
    (1) You may import only the number of engines shown in the 
following Table 1 during your lifetime:

Table 1 of Sec.  1068.315.--Number of Engines Allowed Under the Personal-
                              Use Exemption
------------------------------------------------------------------------
                                                 Standard-     Maximum
          Type of engine or equipment             setting     number of
                                                    part       engines
------------------------------------------------------------------------
Large nonroad spark-ignition engines..........         1048            1
------------------------------------------------------------------------
Recreational nonroad spark-ignition engines            1051            3
 and equipment................................
------------------------------------------------------------------------

    (2) To use this exemption, you must meet both the following 
criteria:
    (i) You have owned the engine for at least one year.
    (ii) You agree not to sell, lease, donate, trade, or otherwise 
transfer ownership of the engine for at least five years, or until the 
engine is eligible for the exemption in paragraph (h) of this section. 
The only acceptable way to dispose of the engine is to destroy or 
export it.
    (3) You do not need our approval, but you must send the Designated 
Officer a form in which you do the following:
    (i) Identify the engine importer's name, address, telephone number, 
and taxpayer identification number.
    (ii) Identify your name, address, telephone number, and taxpayer 
identification number.
    (iii) State the number of each type of engine that you have ever 
imported under this exemption.
    (iv) State that you agree not to sell or lease the engine in the 
United States.
    (v) Identify the engine's make, model, and identification number as 
well as the year the manufacturer finished assembling the engine.
    (vi) Authorize us to inspect as the Act and the regulations permit.
    (4) Respond promptly if we ask for more information.
    (h) Ancient engine exemption. If you are not the original engine 
manufacturer, you may import a nonconforming engine that was first 
manufactured at least 21 years earlier, as long as it is still in its 
original configuration.


Sec. 1068.320  How must I label an imported engine with a permanent 
exemption?

    (a) For engines imported under Sec. 1068.315 (a), (b), (c), (d), or
    (e), you must place a permanent label or tag on each engine. If no 
specific label requirements from subpart C of this part apply, you must 
meet the following requirements:
    (1) Attach the label or tag in one piece so no one can remove it 
without destroying or defacing it.
    (2) Make sure it is durable and readable for the engine's entire 
life.
    (3) Secure it to a part of the engine needed for normal operation 
and not normally requiring replacement.
    (4) Write it in block letters in English.
    (5) Make it readily visible to the average person after the engine 
is installed in the equipment.
    (b) On the engine label or tag, do the following:
    (1) Include the heading ``Emission Control Information.''
    (2) Include your full corporate name and trademark.
    (3) State the engine displacement (in liters) and rated power.
    (4) State: ``THIS ENGINE IS EXEMPT FROM THE REQUIREMENTS OF 
[identify the part referenced in 40 CFR 1068.1(a) that would otherwise 
apply], AS PROVIDED IN [identify the paragraph authorizing the 
exemption (for example, ``40 CFR 1068.315(a)'')]. INSTALLING THIS 
ENGINE IN ANY DIFFERENT APPLICATION IS A VIOLATION OF FEDERAL LAW 
SUBJECT TO CIVIL PENALTY.''.
    (c) Get us to approve alternate label language if it is more 
accurate for your engine.


Sec. 1068.325  What are the temporary exemptions for imported engines?

    If we approve a temporary exemption for an engine, you may import 
it under the conditions in this section. We may ask the U.S. Customs 
Service to require a specific bond amount to make sure you comply with 
the requirements of this subpart. You may not sell or lease one of 
these engines while it is in the United States. You must eventually 
export the engine as we describe in this section unless you get a 
certificate of conformity for it or it qualifies for one of the 
permanent exemptions in Sec. 1068.315.
    (a) Exemption for repairs or alterations. You may temporarily 
import a nonconforming engine under bond solely to repair or alter it. 
You may operate the engine in the United States only to repair or alter 
it or to ship it to or from the service location. Export the engine 
directly after the engine servicing is complete.
    (b) Testing exemption. You may temporarily import a nonconforming 
engine under bond for testing if you follow the requirements of 
Sec. 1068.205. You may operate the engine in the United States only to 
allow testing. This exemption expires one year after you import the 
engine, unless we approve a one-time request for an extension of up to 
one more year. The engine must be exported before the exemption 
expires.
    (c) Display exemption. You may temporarily import a nonconforming 
engine under bond for display, as described in Sec. 1068.215. This 
exemption expires one year after you import the engine, unless we 
approve your request for an extension. We may approve an extension of 
up to one more year for each request, but no more than three years in 
total. The engine must be exported by the time the exemption expires or 
directly after the display concludes, whichever comes first.
    (d) Export exemption. You may temporarily import a nonconforming 
engine to export it, as described in Sec. 1068.225. You may operate the 
engine in the United States only as needed to prepare it for export. 
Label the engine as described in Sec. 1068.225.
    (e) Diplomatic or military exemption. You may temporarily import 
nonconforming engines without bond if you represent a foreign 
government in a diplomatic or military capacity. In your request to the 
Designated Officer (see Sec. 1068.305), include either written 
confirmation from the U.S. State Department that you qualify for this 
exemption or a copy of your orders for military duty in the United 
States. We will rely on the State Department or your military orders to 
determine when your diplomatic or military status expires, at which 
time you must export your exempt engines.


Sec. 1068.330  What are the penalties for violations?

    (a) All imported engines. Unless you comply with the provisions of 
this subpart, importation of nonconforming engines is violation of 
sections 203 and 213(d) of the Act. You may then have to export the 
engines, or pay civil penalties, or both. The U.S. Customs Service may 
seize unlawfully imported engines.
    (b) Temporarily imported engines. If you do not comply with the 
provisions of this subpart for a temporary exemption, you may forfeit 
the total amount of the bond in addition to the sanctions we identify 
in paragraph (a) of this section. We will consider an engine

[[Page 51262]]

to be exported if it has been destroyed or delivered to the U.S. 
Customs Service for export or other disposition under applicable 
Customs laws and regulations. EPA or the U.S. Customs Service may offer 
you a grace period to allow you to export a temporarily exempted engine 
without penalty after the exemption expires.

Subpart E--Selective Enforcement Auditing


Sec. 1068.401  What is a selective enforcement audit?

    (a) We may conduct or require you to conduct emission tests on your 
production engines in a selective enforcement audit. This requirement 
is independent of any requirement for you to routinely test production-
line engines.
    (b) If we send you a signed test order, you must follow its 
directions and the provisions of this subpart. We will tell you where 
to test the engines. This may be where you produce the engines or any 
other emission testing facility.
    (c) If we select one or more of your engine families for a 
selective enforcement audit, we will send the test order to the person 
who signed the application for certification or we will deliver it in 
person.
    (d) Within one working day of receiving the test order, notify the 
Designated Officer which test facility you have selected for emission 
testing.
    (e) You must do everything we require in the audit without delay.


Sec. 1068.405  What is in a test order?

    (a) In the test order, we will specify the following things:
    (1) The engine family and configuration (if any) we have identified 
for testing.
    (2) The engine assembly plant, storage facility, or (if you import 
the engines) port facility from which you must select engines.
    (3) The procedure for selecting engines for testing, including a 
selection rate.
    (4) The test procedures, duty cycles, and test points, as 
appropriate, for testing the engines to show that they meet emission 
standards.
    (b) We may state that we will select the test engines.
    (c) We may identify alternate engine families or configurations for 
testing in case we determine the intended engines are not available for 
testing or if you do not produce enough engines to meet the minimum 
rate for selecting test engines.
    (d) We may include other directions or information in the test 
order.
    (e) We may ask you to show us that you meet any additional 
requirements that apply to your engines (closed crankcases, for 
example).
    (f) In anticipation of a potential audit, you may give us a list of 
your preferred engine families and the corresponding assembly plants, 
storage facilities, or (if you import the engines) port facilities from 
which we should select engines for testing. The information would only 
apply for a single model year, so it would be best to include this 
information in your application for certification. If you give us this 
list before we issue a test order, we will consider your 
recommendations, but we may select engines differently.
    (g) If you also do routine production-line testing with the 
selected engine family in the same time period, the test order will 
tell you what changes you might need to make in your production-line 
testing schedule.


Sec. 1068.410  How must I select and prepare my engines?

    (a) Selecting engines. Select engines as described in the test 
order. If you are unable to select test engines this way, you may ask 
us to approve an alternate plan, as long as you make the request before 
you start selecting engines.
    (b) Assembling engines. Produce and assemble test engines using 
your normal production and assembly process for that engine family.
    (1) Notify us directly if you make any change in your production, 
assembly, or quality control processes that might affect emissions 
between the time you receive the test order and the time you finish 
selecting test engines.
    (2) If you do not fully assemble engines at the specified location, 
we will describe in the test order how to select components to finish 
assembling the engines. Assemble these components onto the test engines 
using your documented assembly and quality control procedures.
    (c) Modifying engines. Once an engine is selected for testing, you 
may adjust, repair, prepare, or modify it or check its emissions only 
if one of the following is true:
    (1) You document the need for doing so in your procedures for 
assembling and inspecting all your production engines and make the 
action routine for all the engines in the engine family.
    (2) This subpart otherwise allows your action.
    (3) We approve your action in advance.
    (d) Engine malfunction. If an engine malfunction prevents further 
emission testing, ask us to approve your decision to either repair the 
engine or delete it from the test sequence.
    (e) Setting adjustable parameters. Before any test, we may adjust 
or require you to adjust any adjustable parameter to any setting within 
its physically adjustable range.
    (1) We may adjust idle speed outside the physically adjustable 
range as needed until the engine has stabilized emission levels (see 
paragraph (e) of this section). We may ask you for information needed 
to establish an alternate minimum idle speed.
    (2) We may make or specify adjustments within the physically 
adjustable range by considering their effect on emission levels, as 
well as how likely it is someone will make such an adjustment with in-
use engines.
    (f) Stabilizing emission levels. Before you test production-line 
engines, you may operate the engine to stabilize the emission levels. 
Using good engineering judgment, operate your engines in a way that 
represents the way production engines will be used. You may operate 
each engine for no more than the greater of two periods:
    (1) 50 hours.
    (2) The number of hours you operated your emission-data engine for 
certifying the engine family (see 40 CFR part 1065, subpart E).
    (g) Damage during shipment. If shipping an engine to a remote 
facility for production-line testing makes necessary an adjustment or 
repair, you must wait until after the after the initial emission test 
to do this work. We may waive this requirement if the test would be 
impossible or unsafe, or if it would permanently damage the engine. 
Report to us, in your written report under Sec. 1068.450, all 
adjustments or repairs you make on test engines before each test.
    (h) Shipping engines. If you need to ship engines to another 
facility for testing, make sure the test engines arrive at the test 
facility within 24 hours after being selected. You may ask that we 
allow more time if you are unable to do this.
    (i) Retesting after invalid tests. You may retest an engine if you 
determine an emission test is invalid. Explain in your written report 
reasons for invalidating any test and the emission results from all 
tests. If you retest an engine and, within ten days after testing, ask 
to substitute results of the new tests for the original ones, we will 
answer within ten days after we receive your information.


Sec. 1068.415  How do I test my engines?

    (a) Use the test procedures in part 1065 of this chapter that apply 
to your engines to show they meet emission standards. The test order 
will give further testing instructions.

[[Page 51263]]

    (b) If no test cells are available at a given facility, you may 
make alternate testing arrangements with our approval.
    (c) Test at least two engines in each 24-hour period (including 
void tests). However, if your projected U.S. nonroad engine sales are 
less than 7,500 for the year, you may test a minimum of one engine per 
24-hour period. If you request and justify it, we may approve a lower 
testing rate.
    (d) Accumulate service on test engines at a minimum rate of 6 hours 
per engine during each 24-hour period. The first 24-hour period for 
service accumulation begins when you finish preparing an engine for 
testing. The minimum service accumulation rate does not apply on 
weekends or holidays. You may ask us to approve a lower service 
accumulation rate. Plan your service accumulation to allow testing at 
the rate specified in Sec. 1068.415. Select engine operation for 
accumulating operating hours on your test engines to represent normal 
in-use engine operation for the engine family.
    (e) Test engines is the same order you select them.


Sec. 1068.420  How do I know when my engine family does not comply?

    (a) A failed engine is one whose final deteriorated test results 
exceed an applicable emission standard for any regulated pollutant.
    (b) Continue testing engines until you reach a pass decision for 
all pollutants or a fail decision for one pollutant.
    (c) You reach a pass decision when the number of failed engines is 
less than or equal to the pass decision number in Appendix A to this 
subpart for the total number of engines tested. You reach a fail 
decision when the number of failed engines is greater than or equal to 
the fail decision number in Appendix A to this subpart for the total 
number of engines you test. An acceptable quality level of 40 percent 
is the basis for the pass or fail decision.
    (d) Consider test results in the same order as the engine testing 
sequence.
    (e) If you reach a pass decision for one pollutant, but need to 
continue testing for another pollutant, we will disregard these later 
test results for the pollutant with the pass decision.
    (f) Appendix A to this subpart lists multiple sampling plans. Use 
the sampling plan for the projected sales volume you reported in your 
application for the audited engine family.
    (g) We may choose to stop testing after any number of tests.
    (h) If we test some of your engines in addition to your own 
testing, we may decide not to include your test results as official 
data for those engines if there is substantial disagreement between 
your testing and our testing. We will reinstate your data as valid if 
you show us that we made an error and your data are correct.
    (i) If we rely on our test data instead of yours, we will notify 
you in writing of our decision and the reasons we believe your facility 
is not appropriate for doing the tests we require under this subpart. 
You may request in writing that we consider your test results from the 
same facility for future testing if you show us that you have made 
changes to resolve the problem.


Sec. 1068.425  What happens if one of my production-line engines 
exceeds the emission standards?

    (a) If one of your production-line engines fails to meet one or 
more emission standards (see Sec. 1068.420), the certificate of 
conformity is automatically suspended for that engine. You must take 
the following actions before your certificate of conformity can cover 
that engine:
    (1) Correct the problem and retest the engine to show it complies 
with all emission standards.
    (2) Include in your written report a description of the test 
results and the remedy for each engine (see Sec. 1068.450).
    (b) You may at any time ask for a hearing to determine whether the 
tests and sampling methods were proper (see Sec. 1068.601).


Sec. 1068.430  What happens if an engine family does not comply?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails to comply under Sec. 1068.420. The suspension may 
apply to all facilities producing engines from an engine family, even 
if you find noncompliant engines only at one facility.
    (b) We will tell you in writing if we suspend your certificate in 
whole or in part. We will not suspend a certificate until at least 15 
days after the engine family became noncompliant. The suspension is 
effective when you receive our notice.
    (c) Up to 15 days after we suspend the certificate for an engine 
family, you may ask for a hearing to determine whether the tests and 
sampling methods were proper (see Sec. 1068.601). If we agree before a 
hearing that we used erroneous information in deciding to suspend the 
certificate, we will reinstate the certificate.


Sec. 1068.435  May I sell engines from an engine family with a 
suspended certificate of conformity?

    You may sell engines that you produce after we suspend the engine 
family's certificate of conformity only if one of the following occurs:
    (a) You test each engine you produce and show it complies with 
emission standards that apply.
    (b) We conditionally reinstate the certificate for the engine 
family. We may do so if you agree to recall all the affected engines 
and remedy any noncompliance at no expense to the owner if later 
testing shows that the engine family still does not comply.


Sec. 1068.440  How do I ask EPA to reinstate my suspended certificate?

    (a) Send us a written report asking us to reinstate your suspended 
certificate. In your report, identify the reason for noncompliance, 
propose a remedy, and commit to a date for carrying it out. In your 
proposed remedy include any quality control measures you propose to 
keep the problem from happening again.
    (b) Give us data from production-line testing that shows the 
remedied engine family complies with all the emission standards that 
apply.


Sec. 1068.445  When may EPA revoke my certificate under this subpart 
and how may I sell these engines again?

    (a) We may revoke your certificate for an engine family in the 
following cases:
    (1) You do not meet the reporting requirements.
    (2) Your engine family fails to meet emission standards and your 
proposed remedy to address a suspended certificate is inadequate to 
solve the problem or requires you to change the engine's design or 
emission-control system.
    (b) To sell engines from an engine family with a revoked 
certificate of conformity, you must modify the engine family and then 
show it complies with the applicable requirements.
    (1) If we determine your proposed design change may not control 
emissions for the engine's full useful life, we will tell you within 
five working days after receiving your report. In this case we will 
decide whether production-line testing will be enough for us to 
evaluate the change or whether you need to do more testing.
    (2) Unless we require more testing, you may show compliance by 
testing production-line engines as described in this subpart.
    (3) We will issue a new or updated certificate of conformity when 
you have met these requirements.


Sec. 1068.450  What records must I send to EPA?

    (a) Within 30 calendar days of the end of each audit, send us a 
report with the following information:

[[Page 51264]]

    (1) Describe any facility used to test production-line engines and 
state its location.
    (2) State the total U.S.-directed production volume and number of 
tests for each engine family.
    (3) Describe your test engines, including the engine family's 
identification and the engine's model year, build date, model number, 
identification number, and number of hours of operation before testing 
for each test engine.
    (4) Identify where you accumulated hours of operation on the 
engines and describe the procedure and schedule you used.
    (5) Provide the test number; the date, time and duration of 
testing; test procedure; initial test results before and after 
rounding; final test results; and final deteriorated test results for 
all tests. Provide the emission figures for all measured pollutants. 
Include information for both valid and invalid tests and the reason for 
any invalidation.
    (6) Describe completely and justify any nonroutine adjustment, 
modification, repair, preparation, maintenance, or test for the test 
engine if you did not report it separately under this subpart. Include 
the results of any emission measurements, regardless of the procedure 
or type of equipment.
    (7) Report on each failed engine as described in Sec. 1068.425.
    (b) We may ask you to add information to your written report, so we 
can determine whether your new engines conform with the requirements of 
this subpart.
    (c) An authorized representative of your company must sign the 
following statement:

    We submit this report under Sections 208 and 213 of the Clean 
Air Act. Our testing conformed completely with the requirements of 
40 CFR part 1068. We have not changed production processes or 
quality-control procedures for the engine family in a way that might 
affect the emission control from production engines. All the 
information in this report is true and accurate, to the best of my 
knowledge. I know of the penalties for violating the Clean Air Act 
and the regulations. (Authorized Company Representative)

    (d) Send reports of your testing to the Designated Officer using an 
approved information format. If you want to use a different format, 
send us a written request with justification for a waiver.
    (e) We will send copies of your reports to anyone from the public 
who asks for them. We will release information about your sales or 
production volumes, which is all we will consider confidential.


Sec. 1068.455  What records must I keep?

    (a) We may review your records at any time, so it is important to 
keep required information readily available. Organize and maintain your 
records as described in this section.
    (b) Keep paper records for testing under this subpart for one full 
year after you complete all the testing required for the selective 
enforcement audit. For additional storage, you may use any format or 
media.
    (c) Keep a copy of the written reports described in Sec. 1068.450.
    (d) Keep the following additional records:
    (1) The names of supervisors involved in each test.
    (2) The name of anyone who authorizes adjusting, repairing, 
preparing, or modifying a test engine and the names of all supervisors 
who oversee this work.
    (3) If you shipped the engine for testing, the date you shipped it, 
the associated storage or port facility, and the date the engine 
arrived at the testing facility.
    (4) Any records related to your audit that are not in the written 
report.
    (5) A brief description of any significant events during testing 
not otherwise described in the written report or in this section.
    (e) If we ask, you must give us projected or actual production for 
an engine family. Include each assembly plant if you produce engines at 
more than one plant.
    (f) We may ask you to keep or send other information necessary to 
implement this subpart.

Appendix A to Subpart E of Part 1068--Plans for Selective 
Enforcement Auditing

    The following tables describe sampling plans for selective 
enforcement audits, as described in Sec. 1068.420:

                                      Table A-1.--Sampling Plan Code Letter
----------------------------------------------------------------------------------------------------------------
                                                                            Minimum number of tests    Maximum
                                                                          --------------------------------------
       Projected engine family sales                Code letter\1\                                     number of
                                                                             to pass      to fail       tests
----------------------------------------------------------------------------------------------------------------
20-50.....................................  AA...........................            3            5           20
----------------------------------------------------------------------------------------------------------------
20-99.....................................  A............................            4            6           30
----------------------------------------------------------------------------------------------------------------
100-299...................................  B............................            5            6           40
----------------------------------------------------------------------------------------------------------------
300-499...................................  C............................            5            6           50
----------------------------------------------------------------------------------------------------------------
500+......................................  D............................            5            6          60
----------------------------------------------------------------------------------------------------------------
\1\ A manufacturer may optionally use either the sampling plan for code letter ``AA'' or sampling plan for code
  letter ``A'' for Selective Enforcement Audits of engine families with annual sales between 20 and 50 engines.
  Additionally, the manufacturer may switch between these plans during the audit.


                      Table A-2.--Sampling Plans for Different Engine Family Sales Volumes
----------------------------------------------------------------------------------------------------------------
                               AA                 A                 B                 C                 D
        Stagea         -----------------------------------------------------------------------------------------
                        pass  #  fail  #  pass  #  fail  #  pass  #  fail  #  pass  #  fail  #  pass  #  fail  #
----------------------------------------------------------------------------------------------------------------
1.....................  .......  .......  .......  .......  .......  .......  .......  .......  .......  .......
----------------------------------------------------------------------------------------------------------------
2.....................  .......  .......  .......  .......  .......  .......  .......  .......  .......  .......
----------------------------------------------------------------------------------------------------------------

[[Page 51265]]

 
3.....................       0   .......  .......  .......  .......  .......  .......  .......  .......  .......
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4.....................       0   .......       0   .......  .......  .......  .......  .......  .......  .......
----------------------------------------------------------------------------------------------------------------
5.....................       1        5        0   .......       0   .......       0   .......       0   .......
----------------------------------------------------------------------------------------------------------------
6.....................       1        6        1        6        1        6        0        6        0        6
----------------------------------------------------------------------------------------------------------------
7.....................       2        6        1        7        1        7        1        7        1        7
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8.....................       2        7        2        7        2        7        2        7        2        8
----------------------------------------------------------------------------------------------------------------
9.....................       3        7        2        8        2        8        2        8        2        8
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10....................       3        8        3        8        3        8        3        9        3        9
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11....................       4        8        3        8        3        9        3        9        3        9
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12....................       4        9        4        9        4        9        4       10        4       10
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13....................       5        9        5       10        4       10        4       10        4       10
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14....................       5       10        5       10        5       10        5       11        5       11
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15....................       6       10        6       11        5       11        5       11        5       11
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16....................       6       10        6       11        6       12        6       12        6       12
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17....................       7       10        7       12        6       12        6       12        6       12
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18....................       8       10        7       12        7       13        7       13        7       13
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19....................       8       10        8       13        8       13        7       13        7       13
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20....................       9       10        8       13        8       14        8       14        8       14
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21....................  .......  .......       9       14        9       14        8       14        8       14
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22....................  .......  .......      10       14        9       15        9       15        9       15
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23....................  .......  .......      10       15       10       15       10       15        9       15
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24....................  .......  .......      11       15       10       16       10       16       10       16
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25....................  .......  .......      11       16       11       16       11       16       11       16
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26....................  .......  .......      12       16       11       17       11       17       11       17
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27....................  .......  .......      12       17       12       17       12       17       12       17
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28....................  .......  .......      13       17       12       18       12       18       12       18
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29....................  .......  .......      14       17       13       18       13       18       13       19
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30....................  .......  .......      16       17       13       19       13       19       13       19
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31....................  .......  .......  .......  .......      14       19       14       19       14       20
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32....................  .......  .......  .......  .......      14       20       14       20       14       20
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33....................  .......  .......  .......  .......      15       20       15       20       15       21
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34....................  .......  .......  .......  .......      16       21       15       21       15       21
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35....................  .......  .......  .......  .......      16       21       16       21       16       22
----------------------------------------------------------------------------------------------------------------
36....................  .......  .......  .......  .......      17       22       16       22       16       22
----------------------------------------------------------------------------------------------------------------
37....................  .......  .......  .......  .......      17       22       17       22       17       23
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38....................  .......  .......  .......  .......      18       22       18       23       17       23
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39....................  .......  .......  .......  .......      18       22       18       23       18       24
----------------------------------------------------------------------------------------------------------------
40....................  .......  .......  .......  .......      21       22       19       24       18       24
----------------------------------------------------------------------------------------------------------------
41....................  .......  .......  .......  .......  .......  .......      19       24       19       25
----------------------------------------------------------------------------------------------------------------
42....................  .......  .......  .......  .......  .......  .......      20       25       19       26
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43....................  .......  .......  .......  .......  .......  .......      20       25       20       26
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[[Page 51266]]

 
44....................  .......  .......  .......  .......  .......  .......      21       26       21       27
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45....................  .......  .......  .......  .......  .......  .......      21       27       21       27
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46....................  .......  .......  .......  .......  .......  .......      22       27       22       28
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47....................  .......  .......  .......  .......  .......  .......      22       27       22       28
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48....................  .......  .......  .......  .......  .......  .......      23       27       23       29
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49....................  .......  .......  .......  .......  .......  .......      23       27       23       29
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50....................  .......  .......  .......  .......  .......  .......      26       27       24       30
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51....................  .......  .......  .......  .......  .......  .......  .......  .......      24       30
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52....................  .......  .......  .......  .......  .......  .......  .......  .......      25       31
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53....................  .......  .......  .......  .......  .......  .......  .......  .......      25       31
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54....................  .......  .......  .......  .......  .......  .......  .......  .......      26       32
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55....................  .......  .......  .......  .......  .......  .......  .......  .......      26       32
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56....................  .......  .......  .......  .......  .......  .......  .......  .......      27       33
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57....................  .......  .......  .......  .......  .......  .......  .......  .......      27       33
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58....................  .......  .......  .......  .......  .......  .......  .......  .......      28       33
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59....................  .......  .......  .......  .......  .......  .......  .......  .......      28       33
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60....................  .......  .......  .......  .......  .......  .......  .......  .......      32      33
----------------------------------------------------------------------------------------------------------------
a Stage refers to the cumulative number of engines tested.

Subpart F--Defect Reporting and Recall


Sec. 1068.501  How do I report engine defects?

    (a) As an engine manufacturer, if you learn that an emission-
related defect exists in the number of engines identified as Number to 
Submit Defect Report in Table 1 of Sec. 1068.501, you must send the 
Designated Officer a report within 15 working days and follow the other 
instructions in this section. This requirement applies whether you 
learn of the defects from a method you established to track safety or 
performance characteristics, from the investigation procedures set 
forth in paragraph (d) of this section, or from any other information.
    (1) Include each occurrence of the defect in the count of engines, 
rather than limiting it to individual engine families or a single model 
year.
    (2) Include all defects you observe for the following periods:
    (i) For engines with rated power under 225 kW, five years from the 
end of each engine's model year.
    (ii) For engines with rated power 225 kW or greater, eight years 
from the end of each engine's model year.
    (3) Count an engine even if you correct the defect before it 
reaches the ultimate buyer.
    (4) Table 1 follows:

           Table 1 of Sec.  1068.501.--Number of Engines for Filing Report or Commencing Investigation
----------------------------------------------------------------------------------------------------------------
                                         If component is anything but a          If component is a catalyst
                                                    catalyst               -------------------------------------
                                    ---------------------------------------
    Number of engines in family          Number to                              Number to       Number to submit
                                          commence       Number to submit        commence        defect report
                                       Investigation       defect report      Investigation
----------------------------------------------------------------------------------------------------------------
10,000.............................                400                 25                 200                 13
20,000.............................                800                 50                 400                 25
30,000.............................              1,200                 75                 600                 38
40,000.............................              1,600                100                 800                 50
50,000.............................              2,000                125               1,000                 63
60,000.............................              2,400                150               1,200                 75
70,000.............................              2,800                175               1,400                 88
80,000.............................              3,200                200               1,600                100
90,000.............................              3,600                225               1,800                113
100,000............................              4,000                250               2,000                125
200,000 or more....................               4000                250                2000                125
----------------------------------------------------------------------------------------------------------------


[[Page 51267]]

    (b) Include the following information in your report (in this 
general outline format):
    (1) State your corporate name.
    (2) Describe the defect.
    (3) Describe which engines may have the defect, including engine 
model, range of production dates, purchaser, and any other information 
that may be needed to identify the affected engines.
    (4) Estimate the number of each class or category of affected 
engines that have or may have the defect and explain how you determined 
this number.
    (5) Identify where you produced each class or category of affected 
engines.
    (6) Evaluate the emissions impact of the defect
    (7) Describe any operational or performance problems a defective 
engine might have.
    (8) Include any available emission data related to the defect.
    (9) Describe your plan for addressing the defect.
    (c) If you revise or later obtain information required by paragraph 
(b) of this section, send it to us as it becomes available.
    (d) As an engine manufacturer, you must conduct an investigation to 
determine if an emission-related defect exists in the Number to Submit 
Defect Report or more of your engines as follows:
    (1) If any of the following contingencies occur you must start an 
investigation to determine if a defect exists in the Number to Submit 
Defect Report or more of your engines:
    (i) The number of Federal warranty claims for a specific emission-
related component is at the number identified as the Number to Commence 
an Investigation in Table 1 of this section. Federal warranty claims 
are warranty claims submitted pursuant to any warranty established 
under Title II of the Clean Air Act or other warranty applicable to an 
emission-related device or element of design as specified in Appendix 
VIII of 40 CFR part 85.
    (ii) Systems you have for monitoring information from dealers, hot 
line complaints, or other information systematically submitted, 
indicates a higher than normal occurrence of potential defects in an 
emission-related component or element of design.
    (iii) Any other information indicates that there may be a defect in 
an emission-related component or element of design.
    (2) If any of the contingencies set forth in paragraph (d)(1) of 
this section occur, then you shall promptly commence and conduct an 
investigation to determine if a specific emission-related defect exists 
and if it is present in the Number to Submit Defect Report or more 
engines. The investigation shall be performed in a thorough manner, 
shall include consideration of all relevant information, and shall be 
conducted in accordance with scientific and engineering principles. 
Relevant information to be considered shall include information on 
design, function, rate of failure, use, and any other information 
available to you.
    (3) If an investigation concludes with the determination that there 
is not an emission-related defect in at least as many engines as the 
Number to Submit Defect Report, then you shall make a determination 
whether to commence a continued investigation. A continued 
investigation should be commenced if there is an indication that there 
may be new information which would indicate the existence of an 
emission related-defect in the Number to Submit Defect Report or more 
engines.
    (4) Even if an investigation is being conducted or in any other 
event, if you have actual knowledge of an emission-related defect in 
the Number to Submit Defect Report or more of your engines, you must 
timely submit a report to the Designated Officer, as set forth in 
paragraph (a) of this section.


Sec. 1068.505  How does the recall program work?

    (a) If we determine that a substantial number of properly 
maintained and used engines do not meet the requirements of this 
chapter throughout their useful life, we will tell you in writing. Our 
notice will identify the class or category of engines affected and 
describe how we reached our conclusion. If this happens, you must meet 
the requirements and follow the instructions in this subpart. You must 
remedy at your expense noncompliant engines that have been properly 
maintained and used. You may not transfer this expense to a dealer or 
equipment manufacturer through a franchise or other agreement.
    (b) You may ask for a hearing if you disagree with our 
determination (see Sec. 1068.601)
    (c) Unless we withdraw the determination of noncompliance, you must 
respond to it by sending a remedial plan to the Designated Officer by 
the later of these two deadlines:
    (1) Within 60 days after we notify you.
    (2) Within 60 days after a public hearing.
    (d) If you learn that your engine family does not meet the 
requirements of this chapter and we have not ordered you to recall 
noncomplying engines, you may voluntarily recall them, as described in 
Sec. 1068.535.
    (e) Once you have sold an engine to the ultimate purchaser, we may 
inspect or test the engine only if he or she permits it, or if state or 
local inspection programs separately provide for it.


Sec. 1068.510  How do I prepare and apply my remedial plan?

    (a) In your remedial plan, describe all of the following:
    (1) The class or category of engines to be recalled, including the 
number of engines involved and the model year or other information 
needed to identify the engines.
    (2) The modifications, alterations, repairs, corrections, 
adjustments, or other changes you will make to correct the affected 
engines.
    (3) A brief description of the studies, tests, and data that 
support the effectiveness of the remedy you propose to use.
    (4) The instructions you will send to those who will repair the 
engines under the remedial plan.
    (5) How you will determine the owners' names and addresses.
    (6) How you will notify owners; include copies of any notification 
letters.
    (7) The proper maintenance or use you will specify, if any, as a 
condition to be eligible for repair under the remedial plan. Describe 
how owners should show they meet your conditions.
    (8) The steps owners must take for you to do the repair. You may 
set a date or a range of dates, specify the amount of time you need, 
and designate certain facilities to do the repairs.
    (9) Which company (or group) you will assign to do or manage the 
repairs.
    (10) If your employees or authorized warranty agents will not be 
doing the work, state who will and say they can do it.
    (11) How you will ensure an adequate and timely supply of parts.
    (12) The effect of proposed changes on fuel consumption, 
driveability, and safety of the engines you will recall; include a 
brief summary of the information supporting these conclusions.
    (13) How you intend to label the engines you repair and where you 
will place the label on the engine (see Sec. 1068.515).
    (b) We may require you to add information to your remedial plan.
    (c) We may require you to test the proposed repair to show it will 
remedy the noncompliance.
    (d) Use all reasonable means to locate owners. We may require you 
to use government or commercial registration

[[Page 51268]]

lists to get owners' names and addresses, so your notice will be 
effective.
    (e) The maintenance or use that you specify as a condition for 
eligibility under the remedial plan may include only things you can 
show would cause noncompliance. Do not require use of a component or 
service identified by brand, trade, or corporate name, unless we 
approved this approach with your original certificate of conformity. 
Also, do not place conditions on who maintained the engine.
    (f) We may require you to adjust your repair plan if we determine 
owners would be without their engines or equipment for an unreasonably 
long time.
    (g) We will tell you in writing within 15 days of receiving your 
remedial plan whether we have approved or disapproved it. We will 
explain our reasons for any disapproval.
    (h) Begin notifying owners within 15 days after we approve your 
remedial plan. If we hold a public hearing, but do not change our 
position about the noncompliance, you must begin notifying owners 
within 60 days after we complete the hearing, unless we specify 
otherwise.


Sec. 1068.515  How do I mark or label repaired engines?

    (a) Attach a label to each engine you repair under the remedial 
plan. At your discretion, you may label or mark engines you inspect but 
do not repair.
    (b) Make the label from a durable material suitable for its planned 
location. Make sure no one can remove the label without destroying it.
    (c) On the label, designate the specific recall campaign and state 
where you repaired or inspected the engine.
    (d) We may waive or modify the labeling requirements if we 
determine they are overly burdensome.


Sec. 1068.520  How do I notify affected owners?

    (a) Notify owners by first class mail, unless we say otherwise. We 
may require you to use certified mail. Include the following things in 
your notice:
    (1) State: ``The U.S. Environmental Protection Agency has 
determined that your engine may be emitting pollutants in excess of the 
Federal emission standards, as defined in Title 40 of the Code of 
Federal Regulations. These emission standards were established to 
protect the public health or welfare from air pollution.''.
    (2) State that you (or someone you designate) will repair these 
engines at your expense.
    (3) If we approved maintenance and use conditions in your remedial 
plan, state that you will make these repairs only if owners show their 
engines meet the conditions for proper maintenance and use. Describe 
these conditions and how owners should prove their engines are eligible 
for repair.
    (4) Describe the components your repair will affect and say 
generally how you will repair the engines.
    (5) State that the engine, if not repaired, may fail an emission 
inspection test if state or local law requires one.
    (6) Describe how not repairing the engine will harm its performance 
or driveability.
    (7) Describe how not repairing the engine will harm the functions 
of other engine components.
    (8) Specify the date you will start the repairs, the amount of time 
you will need to do them, and where you will do them. Include any other 
information owners may need to know.
    (9) Include a self-addressed card that owners can mail back if they 
have sold the engine (or equipment in which the engine is installed); 
include a space for owners to write the name and address of a buyer.
    (10) State that owners should call you at a phone number you give 
to report any difficulty in obtaining repairs.
    (11) State: ``To ensure your full protection under the emission 
warranty on your engine by federal law, and your right to participate 
in future recalls, we recommend you have your engine serviced as soon 
as possible. We may consider your not servicing it to be improper 
maintenance.''.
    (b) We may require you to add information to your notice or to send 
more notices.
    (c) You may not in any communication with owners or dealers say or 
imply that your noncompliance does not exist or that it will not 
degrade air quality.


Sec. 1068.525  What records must I send to EPA?

    (a) Send us a copy of all communications related to the remedial 
plan you sent to dealers and others doing the repairs. Mail or e-mail 
us the information at the same time you send it to others.
    (b) From the time you begin to notify owners, send us a report 
within 25 days of the end of each calendar quarter. Send reports for 
six consecutive quarters or until all the engines are inspected, 
whichever comes first. In these reports, identify the following:
    (1) The range of dates you needed to notify owners.
    (2) The total number of notices sent.
    (3) The number of engines you estimate fall under the remedial plan 
(explain how you determined this number).
    (4) The cumulative number of engines you inspected under the 
remedial plan.
    (5) The cumulative number of these engines you found needed the 
specified repair.
    (6) The cumulative number of these engines you have repaired.
    (7) The cumulative number of engines you determined to be 
unavailable due to exportation, theft, retirement, or other reasons 
(specify).
    (8) The cumulative number of engines you disqualified for not being 
properly maintained or used.
    (c) If your estimated number of engines falling under the remedial 
plan changes, change the estimate in your next report and add an 
explanation for the change.
    (d) We may ask for more information.
    (e) We may waive reporting requirements or adjust the reporting 
schedule.
    (f) If anyone asks to see the information in your reports, we will 
follow the provisions of Sec. 1068.10 for handling confidential 
information.


Sec. 1068.530  What records must I keep?

    We may review your records at any time, so it is important that you 
keep required information readily available. Keep records associated 
with your recall campaign for three years after you complete your 
remedial plan. Organize and maintain your records as described in this 
section.
    (a) Keep a paper copy of the written reports described in 
Sec. 1068.525.
    (b) Keep a record of the names and addresses of owners you 
notified. For each engine, state whether you did any of the following:
    (1) Inspected the engine.
    (2) Disqualified the engine for not being properly maintained or 
used.
    (3) Completed the prescribed repairs.
    (c) You may keep the records in paragraph (b) of this section in 
any form we can inspect, including computer databases.


Sec. 1068.535  How can I do a voluntary recall for emission-related 
problems?

    (a) To do a voluntary recall, first send the Designated Officer a 
plan, following the guidelines in Sec. 1068.510. Within 15 days, we 
will send you our comments on your plan.
    (b) Once we approve your plan, start notifying owners and carrying 
out the specified repairs.
    (c) From the time you start the recall campaign, send us a report 
within 25

[[Page 51269]]

days of the end of each calendar quarter, following the guidelines in 
Sec. 1068.525(b). Send reports for six consecutive quarters or until 
all the engines are inspected, whichever comes first.
    (d) Keep your reports and the supporting information as described 
in Sec. 1068.530.


Sec. 1068.540  What terms do I need to know for this subpart?

    The following terms apply to this subpart:
    Days means calendar days.
    Owner means someone who owns an engine affected by a remedial plan 
or someone who owns a piece of equipment that has one of these engines.

Subpart G--Public Hearings


Sec. 1068.601  How do I request a public hearing?

    (a) File a request for a hearing with the Designated Officer within 
15 days of a decision to suspend, revoke, or void your certificate or 
within 30 days after we send you our conclusions for rejecting your use 
of good engineering judgment. If you ask later, we may give you a 
hearing for good cause, but we do not have to.
    (b) Include the following in your request for a public hearing:
    (1) State which engine family is involved.
    (2) State the issues you intend to raise. We may limit these 
issues, as described elsewhere in the regulations.
    (3) Summarize the evidence supporting your position and state why 
you believe this evidence justifies reinstating the certificate.
    (c) We will hold the hearing as described in this subpart.


Sec. 1068.605  How will EPA set up a public hearing?

    (a) A Presiding Officer and one or more Judicial Officers will hold 
public hearings.
    (b) Presiding Officers must be an administrative law judge 
appointed according to 5 U.S.C. 3105 (see also 5 CFR part 930, as 
amended).
    (c) The Administrator will appoint EPA employees as Judicial 
Officers. Judicial Officers must meet the following qualifications and 
perform the following functions:
    (1) Qualifications. Judicial Officers may be permanent or temporary 
employees of EPA who handle other duties for the Agency. Judicial 
Officers may not be employed by the Office of Enforcement and 
Compliance Assurance or have any connection with preparing or 
presenting evidence for any hearing held under this section. Judicial 
Officers must be graduates of an accredited law school and members in 
good standing of a recognized bar association of any state or the 
District of Columbia.
    (2) Functions. The Administrator may consult with the Judicial 
Officers or delegate all or part of the Administrator's authority to 
act under this section to the Officers. But the Officers must be able 
to refer any motion or case to the Administrator whenever appropriate.
    (d) We may determine that your request for a hearing does not raise 
a genuine, substantial question of fact or law concerning suspension of 
your certificate of conformity. If so, we may enter an order denying 
your request and reaffirm the suspension or revocation. This order has 
the force and effect of the Administrator's final decision.
    (1) In the case of emission levels causing an engine family to be 
noncompliant, you may question only our decision on whether the tests 
and sampling methods were proper.
    (2) In the case of violations of prohibited acts, you may question 
only our decision on whether conditions or circumstances outside your 
control caused your refusal to comply with the requirements of this 
chapter.
    (e) If we determine you have raised a genuine, substantial question 
of fact or law under paragraphs (d)(1) and (d)(2) of this section, we 
will grant your request for a hearing. We will tell the public by 
publishing a notice in the Federal Register or by some other 
appropriate means.
    (f) File with our Hearing Clerk an original and two copies of all 
documents or papers you must (or may) file. Your filing is timely if 
you deliver or postmark items within the time this section and any 
other regulations allow. We will give you an address for filing 
materials with the Hearing Clerk.
    (g) Present testimony in writing as much as possible. We will give 
everyone copies of written testimony as soon as we can before the 
hearing starts. We will provide a certificate of service for each 
document or paper filed with the Hearing Clerk. If you need to give 
something to the Designated Officer, send it by registered mail (see 
Sec. 1068.25).
    (h) In computing any period of time for this section, do not 
include the day of the act or event. Include Saturdays, Sundays, and 
federal legal holidays, but when the period expires on one of these 
days, extend it to include the next business day. If you must or may do 
something within a prescribed period, compute this period from the time 
we notify you, unless we notify you by mail. For notices by mail, add 
three days to the prescribed period.
    (i) The Administrator or Presiding Officers may consolidate two or 
more proceedings held under this section to speed or simplify resolving 
one or more issues. You may still raise issues that you could have 
raised if we did not consolidate proceedings.
    (j) As much as possible, we will schedule public hearings to start 
within 14 days after we receive a request for a hearing.


Sec. 1068.610  What are the procedures for a public hearing?

    (a) Presiding Officers. Presiding Officers must hold fair and 
impartial hearings under the Administrative Procedure Act (5 U.S.C. 
554, 556, and 557); dispose of the proceedings as soon as possible; and 
maintain order. They have power consistent with the Administrative 
Procedure Act, including the power to do the following:
    (1) Administer oaths and affirmations.
    (2) Rule on offers of proof and exclude irrelevant or repetitious 
material.
    (3) Regulate the course of the hearing and the conduct of the 
parties and their counsel.
    (4) Hold conferences.
    (5) Consider and rule on all procedural and other motions in the 
hearing.
    (6) Require submission of direct written testimony with or without 
affidavit whenever, in their opinion, oral testimony is not necessary 
for full and true disclosure of the facts.
    (7) Enforce agreements and orders requiring access as authorized by 
law.
    (8) Require the filing of briefs on any matter on which they must 
rule.
    (9) Require any party or witness to state a position on any issue 
during the hearing.
    (10) Depose witnesses or require depositions.
    (11) Resolve or recommend resolution for disputed issues on the 
hearing's record.
    (12) Issue protective orders, as described in paragraph (g) of this 
section, based on good cause.
    (b) Accelerated decision or dismissal. Presiding Officers may 
accelerate decisions on all or part of the proceeding, without further 
hearing or with limited additional evidence (such as affidavits they 
may require). They may also dismiss any party with prejudice.
    (1) Presiding Officers may decide in favor of EPA or you (as 
manufacturer), based on any party's motion or their own judgment, for 
any of the following reasons:
    (i) Failure to state a claim on which relief can be granted or 
stating

[[Page 51270]]

something that contradicts a previous statement.
    (ii) The lack of any genuine, material issue, so a party is 
entitled to judgment as a matter of law.
    (iii) Failure to obey a procedural order of the Presiding Officer.
    (iv) Other just reasons.
    (2) A Presiding Officer's accelerated decision on all the issues 
and claims in the proceeding is equal to the decision described in 
paragraph (l) of this section.
    (3) For accelerated decisions on less than all issues or claims in 
the proceeding, the Presiding Officers must determine without 
substantial controversy which material facts exist and which are in 
good faith controverted. Then, they issue an order specifying the facts 
that are without substantial controversy, as well as the issues and 
claims on which the hearing will continue.
    (c) Amicus curiae (friend of the court). Participants in the 
hearing may move that the Presiding Officer allow a brief from a friend 
of the court--someone who is not a participant. Anyone who asks for an 
amicus brief must identify his or her interest and state why the brief 
is desirable. The Presiding Officer may then accept briefs from someone 
who is not a party to the proceeding.
    (d) Conferences. Presiding Officers may hold conferences before 
ordering any hearing. They direct the Hearing Clerk to tell 
participants the time and location of conferences. At the Presiding 
Officer's discretion, other people also may attend. They summarize in 
writing the results of conferences, including all stipulations not 
transcribed, and summaries part of the record. At a conference, 
Presiding Officers may do any of the following:
    (1) Get stipulations and admissions, receive requests, order 
depositions to be taken, identify disputed issues of fact and law, and 
require or allow any witness or party to submit written testimony.
    (2) Set a hearing schedule for oral and written statements, 
submission of written direct testimony, oral direct examination and 
cross-examination of a witness, or oral argument as they consider 
necessary.
    (3) Identify matters for official notice.
    (4) Limit the number of expert and other witnesses.
    (5) Establish the procedures for the hearing.
    (6) Take any other action that may speed the hearing or help 
resolve the issue.
    (e) Primary discovery. At a prehearing conference or at some other 
time a Presiding Officer sets before the hearing, all parties must make 
available to the other parties the names of the expert and other 
witnesses they expect to call, a brief summary of their expected 
testimony, and a list of all documents and exhibits they expect to 
introduce into evidence. After that, a party may move to add exhibits 
or amend expected testimony. If anyone makes a motion showing good 
cause, Presiding Officers may restrict or defer disclosure of the name 
of a witness or a narrative summary of the witness's expected 
testimony. They also may prescribe other measures to protect a witness. 
If restricted or deferred disclosure affects a party, they will allow 
enough time to prepare for presenting that case.
    (f) Other discovery. Presiding Officers may allow further 
discovery. If so, they issue orders for taking the discovery, including 
terms and conditions.
    (1) Any party may move for further discovery, as long as the motion 
includes reasons, the nature of the information discovery will produce, 
and the proposed time and place for it.
    (2) Presiding Officers may approve motions for further discovery if 
they determine it will not unreasonably delay the proceeding, is the 
only way to get the information, and is significant to the case. 
Presiding Officers follow procedures in the Federal Rules of Civil 
Procedure (28 U.S.C.) and its precedents whenever possible. But no one 
can take discovery unless a Presiding Officer orders it or all the 
parties agree to it.
    (3) If someone does not comply with an order issued under this 
paragraph (f), we may infer that the discovery information would harm 
that person.
    (g) Protective orders for private discovery. Presiding Officers may 
enter protective orders to allow a person to testify or disclose 
information in private, rather than in open hearing.
    (1) For this to occur, a party or the person giving discovery 
information must move for a protective order by showing that some of 
the discovery information would reveal methods or processes entitled to 
protection as trade secrets. This information may not include emission 
data. Any party wanting to use private documents or testimony to 
present a case must so move to the Presiding Officer with supporting 
justification.
    (2) Presiding Officers may permit anyone seeking a protective order 
to disclose information in private. They will record the private 
proceeding . If they enter a protective order following a private 
session, they will seal and preserve the record and make it available 
to EPA or the court if anyone appeals. The Presiding Officer may limit 
attendance at any private proceeding to himself or herself, EPA, and 
the person or party seeking the protective order.
    (3) If Presiding Officers grant a motion for a protective order, 
they enter an order that governs treatment of the information to 
protect the parties' rights and prevent unnecessary disclosure. 
Procedures also cover presentation of the information and oral 
testimony and related cross-examination in executive session. The 
protective order must also state that the material will be filed 
separately from other evidence and exhibits in the hearing.
    (4) Disclosing this information is limited to parties to the 
hearing, their counsel and relevant technical consultants, and 
authorized representatives of the United States concerned with carrying 
out the Act. Disclosure by government employees must follow 18 U.S.C. 
1905. For all others, disclosure may be limited to counsel if the 
parties do not have to know the information. Parties or their counsel 
must sign a sworn statement that they will not disclose information to 
persons not entitled to receive it under the protective order's terms.
    (5) In the submittal of proposed findings, briefs, or other papers, 
counsel for all parties must try in good faith not to disclose the 
specific details of private documents and testimony. But they may refer 
to the documents or testimony and speak generally about their contents 
If lawyers consider specific details necessary to their presentations, 
they will place the details in separate proposed findings, briefs, or 
other paper marked ``confidential.'' These confidential papers will 
become part of the private record.
    (h) Motions. All motions, except those made orally during the 
hearing, must be in writing. Parties must state the grounds for the 
motion, describe the relief or order sought, file the motion with the 
Hearing Clerk, and serve it on all parties.
    (1) Within the time fixed by the Environmental Appeals Board or 
Presiding Officers, as appropriate, any party may serve and file an 
answer to the motion. The Environmental Appeals Board or Presiding 
Officers may then require the person who made the motion to file reply 
papers within a specified time.
    (2) Presiding Officers rule on all motions filed or made before 
they file their decisions (or accelerated decisions). The Environmental 
Appeals Board rules on all motions filed before Presiding Officers are 
appointed and on all motions filed after Presiding Officers issue 
decisions. Presiding Officers or the Environmental Appeals Board 
approve

[[Page 51271]]

oral arguing of motions only when necessary.
    (i) Evidence. Evidence consists of official transcripts and 
exhibits, together with all papers and requests filed in the 
proceeding. Presiding Officers will separate and exclude immaterial or 
irrelevant parts of an admissible document whenever possible. They will 
also separate documents (or parts of documents) subject to a protective 
order under paragraph (g) of this section. They may allow evidence at 
the hearing even though it is inadmissible under the rules of evidence 
for judicial proceedings. The weight of evidence depends on its 
reliability and how well it proves a case. Presiding Officers allow 
parties to examine and cross-examine witnesses as much as necessary for 
a full disclosure of the facts. Their rulings on admissibility of 
evidence, propriety of examination and cross-examination, and other 
procedural matters will appear in the record. We automatically assume 
parties have taken exception to an adverse ruling.
    (j) The record. The record consists of official transcripts and 
exhibits, together with all paper and requests filed in the proceeding. 
Stenographers will report and transcribe hearings; the original 
transcripts are part of the record and are the sole official 
transcript. We will file copies of the record with the Hearing Clerk 
and make them available during our business hours for public 
inspection. We may charge a reasonable fee for the service, but may 
deny a request to see information only based on paragraph (g) of this 
section.
    (k) Proposed findings and conclusions. Within four days after the 
proceedings are closed to new evidence, any party may submit for the 
Presiding Officer's consideration proposed findings of fact, 
conclusions of law, or a proposed order, with supporting reasons and 
briefs. The Presiding Officer may allow a longer time for these 
proposals. Parties must put these proposals in writing, serve them on 
all parties, and make sure they contain clear references to the record 
and other authorities. The record shows the Presiding Officer's ruling 
on the proposed findings and conclusions, except when the disposal 
order for the proceeding otherwise informs the parties of these 
actions.
    (l) Presiding Officer's decisions. Presiding Officers issue and 
file decisions with the Hearing Clerk within fourteen days after the 
period for filing proposed findings (see paragraph (k) of this 
section). For hearings that challenge an initial suspension of a 
certificate of conformity, decisions are due within seven days after 
the period for filing proposed findings. The Environmental Appeals 
Board may extend the deadline for these decisions.
    (1) Decisions must state findings and conclusions on all the 
material issues of fact or law in the record, with supporting reasons 
or basis, and an appropriate rule or order. Evidence and consideration 
of the whole record must support the decision.
    (2) Decisions by Presiding Officers become the Environmental 
Appeals Board's decisions at one of the following times, unless the 
Board acts to review or stay the effective date of a decision during 
these periods:
    (i) Ten days after the deadlines to appeal, as described in 
Sec. 1068.615(a) or (b), if no one files a notice of intent to appeal.
    (ii) Five days after the deadline to perfect an appeal, as 
described in Sec. 1068.615(a) or (b), if someone files a notice of 
intent to appeal but does not perfect the appeal.
    (3) At any time before Presiding Officers issue decisions, they may 
reopen proceedings to receive further evidence.
    (4) Except for correcting clerical errors, the Presiding Officers' 
jurisdiction ends when they issue their decisions.


Sec. 1068.615  How do I appeal a hearing decision?

    (a) Appeal from the decisions of Presiding Officers. Any party to a 
proceeding may appeal these decisions to the Environmental Appeals 
Board. In all cases except our initial suspension of a certificate of 
conformity, you must file your notice of intent to appeal within ten 
days after the Presiding Officer issues a decision. You must perfect 
your appeal with an appeal brief within twenty days of the decision. 
Any other party may then file a brief on your appeal within fifteen 
days of the date you file your brief. All briefs must be 40 pages or 
less, unless the Environmental Appeals Board approves otherwise. The 
Board also may allow oral arguments. Your brief must contain the 
following items in this order:
    (1) A subject index of the matter in the brief, with page 
references, plus a table of cases (alphabetically arranged), textbooks, 
statutes, and other material cited, with page references.
    (2) Specific issues you intend to urge (but see regulations in this 
chapter defining emission standards for the engines in question, which 
may limit the range of issues you consider).
    (3) Your argument presenting the points of fact and law supporting 
the position you have taken on each issue, with page references to the 
record and legal or other material you are relying on.
    (4) A proposed order for the Environmental Appeals Board's 
consideration, if it is different from the order in the Presiding 
Officer's decision.
    (b) Appeal of decisions on a suspended certificate of conformity. 
In this case, you may appeal the Presiding Officer's decision to the 
Environmental Appeals Board by filing a notice of appeal within ten 
days of the decision. Make your notice of appeal a brief that meets the 
requirements in paragraph (a) of this section. Within ten days after 
you file a notice of appeal under this paragraph, any other party may 
file a brief on that appeal. All briefs must be 15 pages or less unless 
the Environmental Appeals Board approves otherwise.
    (c) Review of the Presiding Officer's decision in the absence of 
appeal. The hearing Clerk tells the Environmental Appeals Board if no 
one has filed a notice of intent to appeal the Presiding Officer's 
decision by the deadline, or has filed notice but not perfected it. The 
Environmental Appeals Board may then review the decision on its own 
motion, within the time limits in Sec. 1068.610(l). The Board must tell 
all parties that they intend to review the decision, describe the scope 
of their review, and allow for filing briefs.
    (d) Decision of appeal or review by the Environmental Appeals 
Board. The Board considers the record as needed to resolve issues under 
appeal or review. They also may use all the powers they could have used 
if they had presided at the hearing. They adopt, modify, or set aside 
the Presiding Officer's findings, conclusions, and order and state the 
reasons or basis for their action in the decision. If the Board 
determines they need more information or the parties' views on the rule 
or order they are issuing, they may wait until they receive them or 
send the case back to the Presiding Officer. Any decision under this 
paragraph (d) that disposes of a case is the Board's final decision.
    (e) Reconsideration of the Environmental Appeals Board's decision. 
Within 20 days of the Board's decision, you may file a petition with 
the Board to reconsider their decision.
    (1) Your petition must describe the relief you want and the grounds 
supporting it. Limit your petition to new questions raised by the 
decision or final order and only those you did not have the chance to 
argue before the Presiding Officer or the Board. See the regulations in 
this chapter defining emission standards for the engines in question, 
which may further limit the questions the Board will review.

[[Page 51272]]

    (2) Anyone wanting to oppose this petition may file a response 
within ten days after you file it.
    (3) Your petition for reconsideration does not stay the effective 
date of the decision or order. It also does not start any statutory 
time period affecting the decision or order, unless the Environmental 
Appeals Board orders that it does.


Sec. 1068.620  How does a hearing conclude?

    (a) Conclusion of hearing. (1) The hearing ends after all periods 
allowed for appeal and review if no one appeals the Presiding Officer's 
decision and the Environmental Appeals Board does not move to review 
the decision by the specified deadlines.
    (2) The hearing ends when the Environmental Appeals Board issues a 
final decision if someone appeals or the Board decides to review the 
Presiding Officer's decision.
    (b) Judicial review. If you want to petition for judicial review, 
you must serve the petition on EPA's General Counsel. We will then tell 
you the costs involved. After we receive your payment to cover fees, we 
will forward your petition to the court where the Environmental Appeals 
Board filed its order.

Appendix I to Part 1068--Emission Related Components, Parameters, and 
Specifications

I. Basic Engine Parameters--Reciprocating Engines.
    1. Compression ratio.
    2. Type of air aspiration (natural, Roots blown, supercharged, 
turbocharged).
    3. Valves (intake and exhaust).
    a. Head diameter dimension.
    b. Valve lifter or actuator type and valve lash dimension.
    4. Camshaft timing.
    a. Valve opening-intake exhaust (degrees from TDC or BDC).
    b. Valve closing-intake exhaust (degrees from TDC or BDC).
    c. Valve overlap (degrees).
    5. Ports--two stroke engines (intake and/or exhaust).
    a. Flow area.
    b. Opening timing (degrees from TDC or BDC).
    c. Closing timing (degrees from TDC or BDC).
II. Intake Air System.
    1. Roots blower/supercharger/turbocharger calibration.
    2. Charge air cooling.
    a. Type (air-to-air; air-to-liquid).
    b. Type of liquid cooling (engine coolant, dedicated cooling 
system).
    c. Performance (charge air delivery temperature ( deg.F) at 
rated power and one other power level under ambient conditions of 
80 deg.F and 110 deg.F, and 3 minutes and 15 minutes after selecting 
rated power, and 3 minutes and 5 minutes after selecting other power 
level).
    3. Temperature control system calibration.
    4. Maximum allowable inlet air restriction.
III. Fuel System.
    1. General.
    a. Engine idle speed.
    2. Carburetion.
    a. Air-fuel flow calibration.
    b. Idle mixture.
    c. Transient enrichment system calibration.
    d. Starting enrichment system calibration.
    e. Altitude compensation system calibration.
    f. Hot idle compensation system calibration.
    3. Fuel injection--spark-ignition engines.
    a. Control parameters and calibrations.
    b. Idle mixture.
    c. Fuel shutoff system calibration.
    d. Starting enrichment system calibration.
    e. Transient enrichment system calibration.
    f. Air-fuel flow calibration.
    g. Altitude compensation system calibration.
    h. Operating pressure(s).
    i. Injector timing calibration.
    4. Fuel injection--compression ignition engines.
    a. Control parameters and calibrations.
    b. Transient enrichment system calibration.
    c. Air-fuel flow calibration.
    d. Altitude compensation system calibration.
    e. Operating pressure(s).
    f. Injector timing calibration.
IV. Ignition System--Spark-Ignition Engines.
    1. Control parameters and calibration.
    2. Initial timing setting.
    3. Dwell setting.
    4. Altitude compensation system calibration.
    5. Spark plug voltage.
V. Engine Cooling System.
    1. Thermostat calibration.
VI. Exhaust System.
    1. Maximum allowable back pressure.
VII. Exhaust Emission Control System.
    1. Air injection system.
    a. Control parameters and calibrations.
    b. Pump flow rate.
    2. EGR system.
    a. Control parameters and calibrations.
    b. EGR valve flow calibration.
    3. Catalytic converter system.
    a. Active surface area.
    b. Volume of catalyst.
    c. Conversion efficiency.
    4. Backpressure.
VIII. Crankcase Emission Control System.
    1. Control parameters and calibrations.
    2. Valve calibrations.
IX. Auxiliary Emission Control Devices (AECD).
    1. Control parameters and calibrations.
    2. Component calibration(s).
X. Evaporative Emission Control System.
    1. Control parameters and calibrations.
    2. Fuel tank.
    a. Volume.
    b. Pressure and vacuum relief settings.

[FR Doc. 01-23591 Filed 10-4-01; 8:45 am]
BILLING CODE 6560-50-P