[Federal Register Volume 67, Number 217 (Friday, November 8, 2002)]
[Rules and Regulations]
[Pages 68242-68447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23801]



[[Page 68241]]

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Part II





Environmental Protection Agency





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40 CFR Parts 89 et al.



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

  Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / 
Rules and Regulations  

[[Page 68242]]


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ENVIRONMENTAL PROTECTION AGENCY

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

[AMS-FRL-7380-2]
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: Final rule.

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SUMMARY: In this action, we are adopting emission standards for several 
groups of nonroad engines that have not been subject to EPA emission 
standards. These engines are large spark-ignition engines such as those 
used in forklifts and airport ground-service equipment; recreational 
vehicles using spark-ignition engines such as off-highway motorcycles, 
all-terrain vehicles, and snowmobiles; and recreational marine diesel 
engines. Nationwide, these engines and vehicles cause or contribute to 
ozone, carbon-monoxide, and particulate-matter nonattainment, as well 
as other types of pollution impacting human health and welfare.
    We expect that manufacturers will be able to maintain or even 
improve the performance of their products when producing engines and 
equipment meeting the new standards. Many engines will substantially 
reduce their fuel consumption, partially or completely offsetting any 
costs associated with the emission standards. Overall, the gasoline-
equivalent fuel savings associated with the anticipated changes in 
technology resulting from this rule are estimated to be about 800 
million gallons per year once the program is fully phased in. Health 
and environmental benefits from the controls included in today's rule 
are estimated to be approximately $8 billion per year once the controls 
are fully phased in. There are also several provisions to address the 
unique limitations of small-volume manufacturers.

DATES: This final rule is effective January 7, 2003.
    The incorporation by reference of certain publications listed in 
this regulation is approved by the Director of the Federal Register as 
of January 7, 2003.

ADDRESSES: Materials relevant to this rulemaking are contained in 
Public Docket Numbers A-98-01 and A-2000-01 at the following address: 
EPA Docket Center (EPA/DC), Public Reading Room, Room B102, EPA West 
Building, 1301 Constitution Avenue, NW., Washington DC. The EPA Docket 
Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 
through Friday, except on government holidays. You can reach the 
Reading Room by telephone at (202) 566-1742, and by facsimile at (202) 
566-1741. The telephone number for the Air Docket is (202) 566-1742. 
You may be charged a reasonable fee for photocopying docket materials, 
as provided in 40 CFR part 2.
    For further information on electronic availability of this action, 
see SUPPLEMENTARY INFORMATION below.

FOR FURTHER INFORMATION CONTACT: U.S. EPA, Office of Transportation and 
Air Quality, Assessment and Standards Division hotline, (734) 214-4636, 
[email protected]; Alan Staut, (734) 214-4805.

SUPPLEMENTARY INFORMATION:

Regulated Entities

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

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                                              NAICS Codes                   Examples of potentially regulated
                  Category                         a        SIC Codes b                  entities
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Industry...................................       333618          3519   Manufacturers of new nonroad spark-
                                                                          ignition engines, new marine engines.
Industry...................................       333111          3523   Manufacturers of farm equipment.
Industry...................................       333112          3531   Manufacturers of construction
                                                                          equipment, recreational marine
                                                                          vessels.
Industry...................................       333924          3537   Manufacturers of industrial trucks.
Industry...................................       811310          7699   Engine repair and maintenance.
Industry...................................       336991   ............  Motorcycle manufacturers.
Industry...................................       336999   ............  Snowmobiles and all-terrain vehicle
                                                                          manufacturers.
Industry...................................       421110   ............  Independent Commercial Importers of
                                                                          Vehicles and Parts.
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\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 this action regulates particular activities, you 
should carefully examine the regulations. You may direct questions 
regarding the applicability of this action to the person listed in FOR 
FURTHER INFORMATION CONTACT.

Obtaining Electronic Copies of the Regulatory Documents

    The preamble, regulatory language, Final 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 final 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 
Final Rule?
    D. What Requirements Are We Adopting?
    E. Why Is EPA Taking This Action?

[[Page 68243]]

II. Nonroad: General Provisions
    A. Scope of Application
    B. Emission Standards and Testing
    C. Demonstrating Compliance
    D. Other Concepts
III. Recreational Vehicles and Engines
    A. Overview
    B. Engines Covered by This Rule
    C. Emission Standards
    D. Testing Requirements
    E. Special Compliance Provisions
    F. Technological Feasibility of the Standards
IV. Permeation Emission Control
    A. Overview
    B. Vehicles Covered by This Provision
    C. Permeation Emission Standards
    D. Testing Requirements
    E. Special Compliance Provisions
    F. Technological Feasibility
V. Large Spark-ignition (SI) Engines
    A. Overview
    B. Large SI Engines Covered by This Rule
    C. Emission Standards
    D. Testing Requirements and Supplemental Emission Standards
    E. Special Compliance Provisions
    F. Technological Feasibility of the Standards
VI. Recreational Marine Diesel Engines
    A. Overview
    B. Engines Covered by This Rule
    C. Emission Standards for Recreational Marine Diesel Engines
    D. Testing Equipment and Procedures
    E. Special Compliance Provisions
    F. Technical Amendments
    G. Technological Feasibility
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. Hearings (Part 1068, Subpart G)
VIII. General Test Procedures
    A. General Provisions
    B. Laboratory Testing Equipment
    C. Laboratory Testing Procedures
    D. Other Testing Procedures
IX. Projected Impacts
    A. Environmental Impact
    B. Cost Estimates
    C. Cost Per Ton of Emissions Reduced
    D. Economic Impact Analysis
    E. Do the Benefits Outweigh the Costs of the Standards?
X. Public Participation
XI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act (RFA), as Amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 
U.S.C. 601 et seq.
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Congressional Review Act
    K. Plain Language

I. Introduction

A. Overview

    Emissions from the engines regulated in this rule contribute to 
serious air-pollution problems, and will continue to do so in the 
future absent regulation. These air pollution problems include exposure 
to carbon monoxide (CO), ground-level ozone, and particulate matter 
(PM), which can cause serious health problems, including premature 
mortality and respiratory problems. Fine PM has also been associated 
with cardiovascular problems, such as heart rate variability and 
changes in fibrinogen (a blood clotting factor) levels, and hospital 
admissions and mortality related to cardiovascular diseases. These 
emissions also contribute to other serious environmental problems, 
including visibility impairment and ecosystem damage. In addition, many 
of the hydrocarbon (HC) pollutants emitted by these engines are air 
toxics.
    This rule addresses these air-pollution concerns by adopting 
national emission standards for several types of nonroad engines and 
vehicles that are currently unregulated. These include large spark-
ignition engines used in industrial and commercial applications such as 
those used in forklifts and airport equipment; recreational spark-
ignition vehicles such as off-highway motorcycles, all-terrain 
vehicles, and snowmobiles; and recreational marine diesel engines.\1\ 
These new standards are a continuation of the process of establishing 
emission standards for nonroad engines and vehicles, under Clean Air 
Act section 213(a).
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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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    We conducted a study of emissions from nonroad engines, vehicles, 
and equipment in 1991, as directed by the Clean Air Act, section 213(a) 
(42 U.S.C. 7547(a)). Based on the results of that study, we determined 
that emissions of oxides of nitrogen (NOX), volatile organic 
compounds, and CO from nonroad engines and equipment contribute 
significantly to ozone and CO concentrations in more than one 
nonattainment area (59 FR 31306, June 17, 1994). Given this 
determination, section 213(a)(3) of the Act requires us to establish 
(and from time to time revise) emission standards for those classes or 
categories of new nonroad engines, vehicles, and equipment that in our 
judgment cause or contribute to such air pollution. We have determined 
that the engines covered by this final rule cause or contribute to such 
air pollution (see the final finding for recreational vehicles and 
nonroad spark-ignition engines over 19 kW published on December 7, 2000 
(65 FR 76790), the final rule for marine diesel engines published on 
December 29, 1999 (64 FR 73301)\2\, Section II of the preamble to the 
proposed rule (66 FR 51098, October 5, 2001), this preamble, and the 
Final Regulatory Support Document).
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    \2\ This rule also found that PM emissions from marine diesel 
engines contribute to PM nonattainment.
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    Where we determine that other emissions from new nonroad engines, 
vehicles, or equipment significantly contribute to air pollution that 
may reasonably be anticipated to endanger public health or welfare, 
section 213(a)(4) of the Act authorizes EPA to establish (and from time 
to time revise) emission standards from those classes or categories of 
new nonroad engines, vehicles, and equipment that cause or contribute 
to such air pollution. Pursuant to section 213(a)(4) of the Act, we are 
finalizing a finding that emissions from new nonroad engines, including 
construction equipment, farm tractors, boats, locomotives, marine 
engines, nonroad spark-ignition engines over 19 kW, recreational 
vehicles (including off-highway motorcycles, all-terrain-vehicles, and 
snowmobiles), significantly contribute to regional haze and visibility 
impairment in federal Class I areas and where people live, work and 
recreate. These engines, particularly recreational vehicles such as 
snowmobiles, are significant emitters of pollutants that are known to 
impair visibility in federal Class I areas (see Section I.E of this 
preamble and the Final Regulatory Support Document). We have also 
determined that engines covered by this final rule, particularly 
recreational vehicles including snowmobiles, contribute to such 
pollution. Thus, we are finalizing HC standards for snowmobiles to 
reduce PM-related visibility impairment.

[[Page 68244]]

B. How Is This Document Organized?

    This final rule covers engines and vehicles that vary in design and 
use, and many readers may be interested in only one or two of the 
applications. We have grouped engines by common application (for 
example, recreational land-based engines, marine diesel recreational 
engines, large spark-ignition engines used in commercial applications). 
This document is organized in a way that allows each reader to focus on 
the applications of particular interest.
    Section II describes general provisions that are relevant to all of 
the nonroad engines covered by this rulemaking. Section III through VI 
present information specific to each of the affected nonroad 
applications, 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 
rulemaking. 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 these 
sections.
    Section IX summarizes the projected impacts and a discussion of the 
benefits of this rule. Finally, Sections X and XI contain information 
about public participation and various administrative requirements.
    The remainder of this section summarizes the new requirements and 
the air quality need for the rulemaking.

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

    This final rule establishes regulatory programs for new nonroad 
vehicles and engines not yet subject to EPA emission standards, 
including the following engines:
    [sbull] Land-based spark-ignition recreational engines, including 
those used in snowmobiles, off-highway motorcycles, and all-terrain 
vehicles. For the purpose of this rule, we are calling this group of 
engines ``recreational vehicles,'' even though all-terrain vehicles can 
be used for commercial purposes.
    [sbull] Land-based spark-ignition engines rated over 19 kW, 
including engines used in forklifts, generators, airport baggage tow 
trucks, and various farm, construction, and industrial equipment. This 
category also includes auxiliary marine engines, but does not include 
propulsion marine engines or engines used in recreational vehicles. For 
purposes of this rule, we refer to this category as ``Large SI 
engines.''
    [sbull] Recreational marine diesel engines.
    This final rule 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'' and 
``imported'' that help define the scope of application of this rule is 
in Section II of this preamble.
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    \3\ For this final rule, 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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D. What Requirements Are We Adopting?

    The fundamental requirement for nonroad engines and vehicles is 
meeting EPA's emission standards. Section 213(a)(3) of the Act requires 
that standards to control emissions related to ozone or CO 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. Section 213 
(a)(4) of the Act requires that standards for emissions related to 
other air pollution problems be appropriate and take into account 
costs, noise, safety, and energy impacts of applying technology that 
will be available. Other requirements such as applying for 
certification, labeling engines, and meeting warranty requirements 
define a process for implementing the program in an effective way.
    With regard to Large SI engines, we are adopting a two-phase 
program. The first phase of the standards go into effect in 2004 and 
are the same as those adopted in October 1998 by the California Air 
Resources Board for 2004. These standards will reduce combined HC and 
NOX emissions by nearly 75 percent, based on emission 
measurements during steady-state operation. In 2007, we supplement 
these standards by setting limits that will require optimizing the same 
technologies and will base emission measurements on a transient test 
cycle. New requirements for evaporative emissions and engine 
diagnostics also start in 2007.
    For recreational vehicles, we are adopting separate emission 
standards for snowmobiles, off-highway motorcycles, and all-terrain 
vehicles. For snowmobiles, we are adopting a first phase of standards 
for HC and CO emissions based on a mixture of technologies ranging from 
clean carburetion and engine modifications to direct fuel injection 
two-stroke technology and some conversion to four-stroke engines, and 
second and third phases of emission standards for snowmobiles that will 
involve significant use of direct fuel injection two-stroke technology 
and conversion to four-stroke engines. For off highway motorcycles and 
all-terrain vehicles, we are adopting standards based mainly on moving 
these engines from two-stroke to four-stroke technology with the use of 
some secondary air injection. We are also adopting requirements to 
address permeation emissions from all three types of recreational 
vehicles.
    The emission standards for recreational marine diesel engines are 
comparable to those already established for commercial marine diesel 
engines. Manufacturers generally have additional time to meet emission 
standards for the recreational models and several specific rulemaking 
provisions are tailored to the unique characteristics of these engines.
    We are also adopting more stringent voluntary Blue Sky Series 
emission standards for recreational marine diesel engines and Large SI 
engines. Blue Sky Series emission standards are more stringent than the 
mandatory emission standards and are intended to encourage the 
introduction and more widespread use of low-emission technologies. 
Manufacturers may be motivated to exceed emission 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 not adopting voluntary standards but rather providing consumers 
with consumer labeling, which will provide information and opportunity 
to buy lower-emissions models.
    We have also conducted extensive analysis on the costs and benefits 
of this rulemaking effort, with specific details found in Section IX 
below and in the Final Regulatory Support Document. In summary, we 
estimate that annually, the cost to manufacturers is approximately $210 
million, the social gain is approximately $550 million, and the 
quantified benefits are approximately $8 billion. Social gain is 
defined as the economic cost of the rule minus the estimated fuels 
savings. Quantified benefits reflect the health benefits primarily 
associated with particulate matter controls.

E. Why Is EPA Taking This Action?

    There are important public health and welfare reasons supporting 
the new

[[Page 68245]]

emission standards. As described below and in the Final Regulatory 
Support Document, these engines contribute to air pollution that causes 
public health and welfare problems.
    Nationwide, these engines and vehicles are a significant source of 
mobile source air pollution. As described below, of all mobile source 
emissions in 2000 they accounted for about 9 percent of HC emissions, 4 
percent of CO emissions, 3 percent of NOX emissions, and 2 
percent of direct PM emissions. The emissions from Large SI engines 
contributed 2 to 3 percent of the HC, NOX, and CO emissions 
from mobile sources in 2000. Recreational vehicles by themselves 
account for about 6 percent of national mobile source HC emissions and 
about 2 percent of national mobile source CO emissions. By reducing 
these emissions, the standards will aid states facing ozone and CO air 
quality problems, which can cause a range of adverse health effects, 
especially in terms of respiratory disease and related illnesses. The 
engine categories subject to this rule contribute to regional haze and 
visibility impairment in Class I areas and near where people live, work 
and recreate. Within national parks, emissions from snowmobiles in 
particular contribute to ambient concentrations of fine PM, a leading 
cause of visibility impairment. States are required to develop plans to 
address visibility impairment in national parks, and the reductions 
required in this rule would assist states in those efforts.
    The standards will also help reduce acute exposure to CO and air 
toxics for forklift operators, equipment users or riders, national and 
state park attendants, and other people who may be at particular risk 
because they operate or work or are otherwise in close proximity to 
this equipment due to their occupation or as riders. Emissions from 
these vehicles and equipment can be very high on a per-engine basis. In 
addition, the equipment using these engines (especially forklifts) is 
often operated in enclosed areas. Similarly, exposure to CO and air 
toxics can be intensified for snowmobile riders who follow a group of 
other riders along a trail, since those riders are exposed to the 
emissions of all the other snowmobiles riding ahead.
    When the emission standards are fully implemented in 2030, we 
expect a 75-percent reduction in HC emissions, 82-percent reduction in 
NOX emissions, and 61-percent reduction in CO emissions, and 
a 60-percent reduction in direct PM emissions from these engines, 
equipment, and vehicles (see Section IX below). These emission 
reductions will reduce ambient concentrations of CO, ozone, and PM 
fine; fine particles are a public health concern and contributes to 
visibility impairment. The standards will also reduce exposure for 
people who operate or who work with or are otherwise in close proximity 
to these engines and vehicles.
    We believe technology can be applied to these engines that will 
reduce emissions of these harmful pollutants. Manufacturers can reduce 
two-stroke engine emissions by improving fuel management and 
calibration. This can be achieved by making improvements to carbureted 
fuel systems and/or converting to electronic and direct fuel injection. 
In addition, many of the existing two-stroke engines in these 
categories can be converted to four-stroke technology. Finally, there 
are modifications that can be made to four-stroke engines, often short 
of requiring catalysts, that can reduce emissions even further.
1. Health and Welfare Effects
    Exposure to CO, ground-level ozone, and PM can cause serious 
respiratory problems, including premature mortality and respiratory 
problems. Fine PM has also been associated with cardiovascular 
problems, such as heart rate variability and fibrinogen (a blood 
clotting factor) levels, and hospital admissions and mortality related 
to cardiovascular diseases. These emissions also contribute to other 
serious environmental problems, including visibility impairment and 
ecosystem damage. In addition, some of the HC pollutants emitted by 
these engines are air toxics. (The health and welfare effects are 
described in more detail in the Final Regulatory Support Document.)
    CO 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.
    Exposures to ozone has been linked to increased hospital admissions 
and emergency room visits for respiratory problems.\4\ Repeated 
exposure to ozone can increase susceptibility to respiratory infection 
and lung inflammation. It can aggravate preexisting respiratory 
diseases, such as asthma. Prolonged (6 to 8 hours), repeated exposure 
to ozone can cause inflammation of the lung, impairment of lung defense 
mechanisms, and possibly irreversible changes in lung structure, which 
over time could lead to premature aging of the lungs and/or chronic 
respiratory illnesses such as emphysema and chronic bronchitis. 
Children, the elderly, asthmatics and outdoor workers are most at risk 
from ozone exposure. Evidence also exists of a possible relationship 
between daily increases in ozone levels and increases in daily 
mortality levels. In addition to human health effects, ozone adversely 
affects crop yield, vegetation and forest growth, and the durability of 
materials.
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    \4\ U.S. EPA Review of the National Ambient Air Quality 
Standards for Ozone: Policy Assessment of Scientific and Technical 
Information OAQPS Staff Paper. EPA-452/R-96-007. June 1996. A copy 
of this document can be found in Docket A-99-06, Document II-A-22.
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    PM, like ozone, has been linked to a range of serious respiratory 
health problems.\5\ The key health effects 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 non-cancer 
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.
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    \5\ U.S. EPA 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. 1996. 
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.
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    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 and in places where people live 
and work. Visibility effects are manifest in two principal ways: (1) as 
local impairment (for example,

[[Page 68246]]

localized hazes and plumes) and (2) as regional haze. The emissions 
from engines covered by this rule can contribute to both types of 
visibility impairment.
    The engines covered by this rule also emit air toxics that are 
known or suspected human or animal carcinogens, or have serious non-
cancer health effects. These include benzene, 1,3-butadiene, 
formaldehyde, acetaldehyde, and acrolein.
2. What Is the Inventory Contribution From the Nonroad Engines and 
Vehicles That Would Be Subject to This Rule?
    The contribution of emissions from the nonroad engines and vehicles 
that will be subject to this final rule to the national inventories of 
pollutants is considerable. To estimate nonroad engine and vehicle 
emission contributions, we used the latest version of our NONROAD 
emissions model, updated with information received during the public 
comment period. 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 Final Regulatory Support Document.
    Baseline emission inventory estimates for the year 2000 for the 
categories of engines and vehicles covered by this rule are summarized 
in Table I.E-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 rule contribute 
about 9 percent, 3 percent, 4 percent, and 2 percent of HC, 
NOX, CO, and PM emissions, respectively, in the year 2000. 
The results for Large SI engines indicate they contribute approximately 
2 to 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 about 6 
percent of HC emissions and 2 percent of CO from mobile sources. 
Recreational marine diesel engines contribute less than 1 percent to 
NOX mobile source inventories. When only nonroad emissions 
are considered, the engines and vehicles that will be subject to the 
standards account for a larger share.
    Our draft emission projections for 2020 and 2030 for the nonroad 
engines and vehicles subject to this rule show that emissions from 
these categories are expected to increase over time if left 
uncontrolled. The projections for 2020 and 2030 are summarized in 
Tables I.E-2 and I.E-3, respectively. The projections for 2020 and 2030 
indicate that the categories of engines and vehicles covered by this 
rule are expected to contribute approximately 25 percent, 10 percent, 5 
percent, and 5 percent of mobile source HC, NOX, CO, and PM 
emissions, respectively, if left uncontrolled. Engine population growth 
and the effects of other regulatory control programs are factored into 
these projections. The relative importance of uncontrolled nonroad 
engines in 2020 and 2030 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.
    Regarding PM specifically, this information and information in 
Section I.3(ii) below show that the engines being regulated in this 
rule, snowmobiles and other recreational vehicles in particular, 
contribute to PM concentrations that may reasonably be anticipated to 
endanger public health and welfare both because of the health effects 
associated with PM and because of the effects on visibility discussed 
below.

                                    Table I.E-1.--Modeled Annual Emission Levels for Mobile Source Categories in 2000
                                                                  [Thousand short tons]
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                                                                           NOX                   HC                    CO                    PM
                                                                 ---------------------------------------------------------------------------------------
                            Category                                          Percent               Percent               Percent               Percent
                                                                  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile
                                                                               source                source                source                source
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total for engines subject to this final rule[hairsp][hairsp]*...        351        2.6        645        8.8      2,860        3.8       14.6        2.1
                                                                 ============
Highway Motorcycles.............................................          8        0.1         84        1.2        331        0.4        0.4        0.1
Nonroad Industrial SI 19 kW[hairsp][hairsp]*.........        308        2.3        226        3.1      1,734        2.3        1.6        0.2
Recreational SI[hairsp][hairsp]*................................          5        0.0        418        5.7      1,120        1.5       12.0        1.7
Recreational Marine Diesel[hairsp][hairsp]*.....................         38        0.3          1        0.0          6        0.0          1        0.1
Marine SI Evap..................................................          0        0.0        100        1.4          0        0.0          0        0.0
Marine SI Exhaust...............................................         32        0.2        708        9.7      2,144        2.8         38        5.4
Nonroad SI <19 kW...............................................        106        0.8      1,460       20.0     18,359       24.3         50        7.1
Nonroad diesel..................................................      2,625       19.5        316        4.3      1,217        1.6        253       35.9
Commercial Marine Diesel........................................        963        7.2         30        0.4        127        0.2         41        5.8
Locomotive......................................................      1,192        8.9         47        0.6        119        0.2         30        4.3
                                                                 ------------
Total Nonroad...................................................      5,269         39      3,305         45     24,826         33        427         60
Total Highway...................................................      7,981         59      3,811         52     49,813         66        240         34
Aircraft........................................................        178          1        183          3      1,017          1         39          6
                                                                 ------------
Total Mobile Sources............................................     13,428        100      7,300        100     75,656        100        706        100
                                                                 ============
Total Man-Made Sources..........................................     24,532  .........     18,246  .........     97,735  .........      3,102  .........
                                                                 ============
Mobile Source percent of Total Man-Made Sources.................         55  .........         40  .........         77  .........         23
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 68247]]


                               Table I.E-2.--Modeled Annual Baseline Emission Levels for Mobile Source Categories in 2020
                                                                  [thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NOX                   HC                    CO                    PM
                                                                 ---------------------------------------------------------------------------------------
                            Category                                          Percent               Percent               Percent               Percent
                                                                  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile
                                                                               source                source                source                source
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total for engines subject to this final rule*...................        547        8.8      1,305       24.1      4,866        5.6       34.1        5.2
                                                                 ============
Highway Motorcycles.............................................         14        0.2        142        2.6        572        0.7        0.8        0.1
Nonroad Industrial SI  19 kW*........................        472        7.6        318        5.9      2,336        2.7        2.3        0.4
Recreational SI*................................................         14        0.2        985       18.2      2,521        2.9       30.2        4.6
Recreational Marine Diesel*.....................................         61        1.0          2        0.0          9        0.0        1.6        0.2
Marine SI Evap..................................................          0        0.0        114        2.1          0        0.0          0        0.0
Marine SI Exhaust...............................................         58        0.9        284        5.2      1,985        2.3         28        4.3
Nonroad SI < 19 Kw..............................................        106        1.7        986       18.2     27,352       31.7         77       11.8
Nonroad Diesel..................................................      1,791       28.8        142        2.6      1,462        1.7        261       40.0
Commercial Marine Diesel........................................        819       13.2         35        0.6        160        0.2         46        7.0
Locomotive......................................................        611        9.8         35        0.6        119        0.1         21        3.2
                                                                 ------------
Total Nonroad...................................................      3,932         63      2,901         54     35,944         42        467         71
Total Highway...................................................      2,050         33      2,276         42     48,906         56        145         22
Aircraft........................................................        232          4        238          4      1,387          2         43          7
                                                                 ------------
Total Mobile Sources............................................      6,214        100      5,415        100     86,237        100        655        100
                                                                 ============
Total Man-Made Sources..........................................     16,190  .........     15,475  .........    109,905  .........      3,039  .........
                                                                 ============
Mobile Source percent of Total Man-Made Sources.................         38  .........         35  .........         79  .........         22  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                    Table I.E-3.--Modeled Annual Emission Levels for Mobile Source Categories in 2030
                                                                  [Thousand short tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NOX                   HC                    CO                    PM
                                                                 ---------------------------------------------------------------------------------------
                            Category                                          Percent               Percent               Percent               Percent
                                                                  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile  1000 tons  of mobile
                                                                               source                source                source                source
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total for engines subject to this final rule*...................        640       10.0      1,411       23.5      5,363        5.4       36.5        4.8
                                                                 ============
Highway Motorcycles.............................................         17        0.3        172        2.9        693        0.7        1.0        0.1
Nonroad Industrial SI  19 kW*........................        553        8.6        371        6.2      2,703        2.7        2.7        0.4
Recreational SI*................................................         15        0.2      1,038       17.3      2,649        2.7       31.9        4.2
Recreational Marine Diesel*.....................................         72        1.1          2        0.0         11        0.0        1.9        0.3
Marine SI Evap..................................................          0        0.0        122        2.0          0        0.0          0        0.0
Marine SI Exhaust...............................................         64        1.0        269        4.5      2,083        2.1         29        3.8
Nonroad SI < 19 kW..............................................        126        2.0      1,200       20.0     32,310       32.4         93       12.3
Nonroad Diesel..................................................      1,994       31.0        158        2.6      1,727        1.7        306       40.4
Commercial Marine Diesel........................................      1,166       18.1         52        0.9        198        0.2         74        9.8
Locomotive......................................................        531        8.3         30        0.5        119        0.1         18        2.4
                                                                 ------------
Total Nonroad...................................................      4,521         70      3,242         54     41,800         42        557         74
Total Highway...................................................      1,648         26      2,496         42     56,303         56        158         21
Aircraft........................................................        262          4        262          4      1,502          2         43          6
                                                                 ------------
Total Mobile Sources............................................      6,431        100      6,000        100     99,605        100        758        100
                                                                 ============
Total Man-Made Sources..........................................     16,639         --     17,020         --    123,983         --      3,319         --
                                                                 ============
Mobile Source percent of Total Man-Made Sources.................         39         --         35         --         80         --         23         --
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 68248]]

3. Why are Controls to Protect against CO Nonattainment and to Protect 
Visibility Needed From the Nonroad Engines and Vehicles That Would Be 
Subject to This Rule?
    i. Why are We Controlling CO Emissions from Nonroad Engines and 
Vehicles that Would be Subject to this Rule?
    Engines subject to this rule contributed about 3.8 percent of CO 
from mobile sources in 2000. Over 22.4 million people currently live in 
the 13 nonattainment areas for the CO National Ambient Air Quality 
Standard (NAAQS). Industry association comments questioned the need for 
CO control and snowmobile contribution, in particular. First, the 
statute envisions that categories should be considered in determining 
contribution because otherwise, it would be possible to continue to 
arbitrarily divide subcategories until the contribution from any 
subcategory becomes minimal while the cumulative effect of the air 
pollution remains. EPA previously determined that the category of Large 
SI engines and recreational vehicles cause or contribute to ambient CO 
and ozone in more than one nonattainment area (65 FR 76790, December 7, 
2000). EPA also examined recreational vehicles separately and found 
that recreational vehicles subject to this rule contribute to CO 
nonattainment in areas such as Los Angeles, Phoenix, Anchorage, and Las 
Vegas (see RSD chapter 2). Thus, if considered as a category, 
recreational vehicles contribute to CO nonattainment.\6\ Moreover, when 
we examined snowmobiles separately, they met the contribution criteria.
---------------------------------------------------------------------------

    \6\ Likewise, Large SI equipment and recreational marine diesel 
engines also contribute to CO in nonattainment areas.
---------------------------------------------------------------------------

    The International Snowmobile Manufacturers Association (ISMA) 
stated in its public comments that snowmobiles in particular are not 
operated in many of the CO nonattainment areas because of lack of snow 
(although they may be stored in those areas). The commenters also 
contended that northern areas have experienced improved CO air quality. 
Many areas are making progress in improving their air quality. However, 
an area cannot be redesignated to attainment until it can show EPA that 
it has had air quality levels within the level required for attainment 
and that it has a plan in place to maintain such levels. Until areas 
have been redesignated, they remain nonattainment areas.\7\ Snowmobiles 
contribute to CO nonattainment in more than one of these areas.
---------------------------------------------------------------------------

    \7\ There are important reasons to focus on redesignation 
status, as compared to just current air quality. Areas with a few 
years of attainment data can and often do have exceedances following 
such years of attainment because of several factors including 
different climatic events during the later years, increases in 
inventories, etc. Control of emissions from nonroad engines can help 
to avoid potential future air quality problems.
---------------------------------------------------------------------------

    Snowmobiles have relatively high per-engine CO emissions, and they 
can be a significant source of ambient CO levels in CO nonattainment 
areas. Despite the fact that snowmobiles are largely banned in CO 
nonattainment areas by the state of Alaska, the state estimated (and a 
National Research Council study confirmed) that snowmobiles contributed 
0.3 tons/day in 2001 to Fairbanks' CO nonattainment area or 1.2 percent 
of a total inventory of 23.3 tons per day in 2001.\8,9\ While Fairbanks 
has made significant progress in reducing ambient CO concentrations, 
existing climate conditions make achieving and maintaining attainment 
challenging. Anchorage, AK, reports a similar contribution of 
snowmobiles to their emissions inventories (0.34 tons per day in 2000). 
Furthermore, a recent National Academy of Sciences report concludes 
that ``Fairbanks will be susceptible to violating the CO health 
standards for many years because of its severe meteorological 
conditions. That point is underscored by a December 2001 exceedance of 
the standard in Anchorage which had no violations over the last 3 
years.''\10\
---------------------------------------------------------------------------

    \8\ 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.
    \9\ National Research Council. The Ongoing Challenge of Managing 
Carbon Monoxide Pollution in Fairbanks, AK. May 2002. Docket A-2000-
01, Document No. IV-A-115.
    \10\ National Research Council. The Ongoing Challenge of 
Managing Carbon Monoxide Pollution in Fairbanks, AK. May 2002. 
Docket A-2000-01, Document IV-A-115.
---------------------------------------------------------------------------

    ISMA commented that it agreed with EPA that there is a snowmobile 
trail within the Spokane, WA, CO nonattainment area, although they 
noted that snowmobile operation alone would not result in CO 
nonattainment. However, emissions from regulated categories need only 
contribute to, not themselves cause, nonattainment. Concentrations of 
NAAQS-related pollutants are by definition a result of multiple sources 
of pollution.
    Several states that contain CO nonattainment areas also have large 
populations of registered snowmobiles and nearby snowmobile trails in 
adjoining counties, which are an indication of where they are operated 
(see Table I.E-4). EPA requested comment on the volume and nature of 
snowmobile use in these and other CO nonattainment areas. ISMA 
commented on the proximity of trails to northern CO nonattainment 
areas, assuming that snowmobiles are operated only on trails. A search 
of the available literature indicates that snowmobiles are ridden in 
areas other than trails. For example, a 1998 report by the Michigan 
Department of Natural Resources indicates that from 1993 to 1997, of 
the 146 snowmobile fatalities studied, 46 percent occurred on a state 
or county roadway (another 2 percent on roadway shoulders) and 27 
percent occurred on private lands. Furthermore, accident reports in CO 
nonattainment area Fairbanks, AK, demonstrate that snowmobiles driven 
on streets have collided with motor vehicles. On certain days there may 
be concentrations of snowmobiles operated in nonattainment areas due to 
public events such as snowmachine races (such as the Iron Dog Gold Rush 
Classic, which finishes in Fairbanks, AK), during which snowmobiles 
will be present and operated.

                         Table I.E-4.--Snowmobile Use in Selected CO Nonattainment Areas
----------------------------------------------------------------------------------------------------------------
                                                                                                   2001 State
        City and state                         CO nonattainment classification                     snowmobile
                                                                                                 population\a\
----------------------------------------------------------------------------------------------------------------
Anchorage, AK
Fairbanks, AK.................  Serious......................................................          \b\ 35576
Spokane, WA...................  Serious......................................................              31532
Fort Collins, CO..............  Moderate.....................................................              32500
Medford, OR...................  Moderate.....................................................              16809

[[Page 68249]]

 
Missoula, MT..................  Moderate.....................................................             23440
----------------------------------------------------------------------------------------------------------------
\a\ Source: ISMA U.S. Snowmobile Registration History, May 15, 2001; various studies prepared for state
  snowmobile associations included in Docket A-2000-01.
\b\ Point of sale registration was not mandatory in Alaska prior to 1998, so the statewide registered population
  is likely to underestimate the total population.

    Exceedances of the 8-hour CO standard were recorded in three of 
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.\11\ 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.\12\
---------------------------------------------------------------------------

    \11\ 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.
    \12\ Air Quality Criteria for Carbon Monoxide, U.S. 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.
---------------------------------------------------------------------------

    In addition, there are 6 areas that have not been classified as 
nonattainment where air quality monitoring indicated a need for CO 
control. For example, CO monitors in northern locations such as Des 
Moines, IA, and Weirton, WV/Steubenville, OH, registered levels above 
the level of the CO standards in 1998.
    ii. Why are Controls Needed From the Nonroad Engines and Vehicles 
That Would Be Subject to this Rule to Protect Visibility?
    (1) Visibility is Impaired by Fine PM and Precursor Emissions From 
Nonroad Engines and Vehicles That Would Be Subject to This Rule.
    Visibility can be defined as the degree to which the atmosphere is 
transparent to visible light.\13\ Visibility degradation is an easily 
noticeable effect of fine PM present in the atmosphere, and fine PM is 
the major cause of reduced visibility in parts of the United States, 
including many of our national parks and in places across the country 
where people live, work, and recreate. Fine particles with significant 
light-extinction efficiencies include organic matter, sulfates, 
nitrates, elemental carbon (soot), and soil.
---------------------------------------------------------------------------

    \13\ National Research Council, 1993. Protecting Visibility in 
National Parks and Wilderness Areas. National Academy of Sciences 
Committee on Haze in National Parks and Wilderness Areas. National 
Academy Press, Washington, DC. This document is available on the 
internet at http://www.nap.edu/books/0309048443/html/. See also U.S. 
EPA Air Quality Criteria Document for Particulate Matter (1996) and 
Review of the National Ambient Air Quality Standards for Particulate 
Matter: Policy Assessment of Scientific and Technical Information. 
These documents can be found in Docket A-99-06, Documents No. II-A-
23 and IV-A-130-32.
---------------------------------------------------------------------------

    Visibility is an important effect because it has direct 
significance to people's enjoyment of daily activities in all parts of 
the country. Individuals value good visibility for the well-being it 
provides them directly, both in where they live and work, and in places 
where they enjoy recreational opportunities. Visibility is highly 
valued in significant natural areas such as national parks and 
wilderness areas, because of the special emphasis given to protecting 
these lands now and for future generations.
    To quantify changes in visibility, we compute a light-extinction 
coefficient, which shows the total fraction of light that is decreased 
per unit distance. Visibility can be described in terms of PM 
concentrations, visual range, light extinction or deciview.\14\ In 
addition to limiting the distance that one can see, the scattering and 
absorption of light caused by air pollution can also degrade the color, 
clarity, and contrast of scenes.
---------------------------------------------------------------------------

    \14\ Visual range can be defined as the maximum distance at 
which one can identify a black object against the horizon sky. It is 
typically described in miles or kilometers. Light extinction is the 
sum of light scattering and absorption by particles and gases in the 
atmosphere. It is typically expressed in terms of inverse megameters 
(Mm-1), with larger values representing worse visibility. The 
deciview metric describes perceived visual changes in a linear 
fashion over its entire range, analogous to the decibel scale for 
sound. A deciview of 0 represents pristine conditions. Under many 
scenic conditions, a change of 1 deciview is considered perceptible 
by the average person.
---------------------------------------------------------------------------

    Visibility effects are manifest in two main ways: as local 
impairment (for example, localized hazes and plumes) and as regional 
haze. In addition, visibility impairment has a time dimension in that 
it might relate to a short-term excursion or to longer periods (for 
example, worst 20 percent of days or annual average levels).
    Local-scale visibility degradation is commonly seen as a plume 
resulting from the emissions of a specific source or small group of 
sources, or it is in the form of a localized haze such as an urban 
``brown cloud.'' Plumes are comprised of smoke, dust, or colored gas 
that obscure the sky or horizon relatively near sources. Impairment 
caused by a specific source or small group of sources has been 
generally termed as ``reasonably attributable.''
    The second type of impairment, regional haze, results from 
pollutant emissions from a multitude of sources located across a broad 
geographic region. It impairs visibility in every direction over a 
large area, in some cases over multi-state regions. Regional haze masks 
objects on the horizon and reduces the contrast of nearby objects. The 
formation, extent, and intensity of regional haze is a function of 
meteorological and chemical processes, which sometimes cause fine 
particulate loadings to remain suspended in the atmosphere for several 
days and to be transported hundreds of kilometers from their sources.
    On an annual average basis, the concentrations of non-anthropogenic 
fine PM are generally small when compared with concentrations of fine 
particles from anthropogenic sources. Anthropogenic contributions 
account for about one-third of the average extinction coefficient in 
the rural West and more than 80 percent in the rural East. Because of 
significant differences related to visibility conditions in the eastern 
and western U.S., we present information about visibility by region. 
Furthermore, it is important to note that even in those areas with 
relatively low

[[Page 68250]]

concentrations of anthropogenic fine particles, such as the Colorado 
plateau, small increases in anthropogenic fine particle concentrations 
can lead to significant decreases in visual range. This is one of the 
reasons Class I areas have been given special consideration under the 
Clean Air Act.
    Nonroad engines that are subject to this final rule contribute to 
ambient fine PM levels in two ways. First, they contribute through 
direct emissions of fine PM. As shown in Table I.E-1, these engines 
emitted 14,600 tons of PM (over 2 percent of all mobile source PM) in 
2000. Second, these engines contribute to indirect formation of PM 
through their emissions of gaseous precursors which are then 
transformed in the atmosphere into particles. For example, these 
engines emitted over 8 percent of the HC tons from mobile sources. 
Furthermore, recreational vehicles, such as snowmobiles and all-terrain 
vehicles emit high levels of organic carbon (as HC) on a per-engine 
basis. Some organic emissions are transformed into particles in the 
atmosphere and other volatile organics can condense if emitted in cold 
temperatures, as is the case for emissions from snowmobiles, for 
example. Organic carbon accounts for between 27 and 36 percent of 
ambient fine particle mass depending on the area of the country.
(A) Visibility Impairment Where People Live, Work and Recreate
    The secondary PM NAAQS is designed to protect against adverse 
welfare effects such as visibility impairment. In 1997, the secondary 
PM NAAQS was set as equal to the primary (health-based) PM NAAQS (62 
Federal Register No. 138, July 18, 1997). EPA concluded that PM can and 
does produce adverse effects on visibility in various locations, 
depending on PM concentrations and factors such as chemical composition 
and average relative humidity. In 1997, EPA demonstrated that 
visibility impairment is an important effect on public welfare and that 
visibility impairment is experienced throughout the U.S., in multi-
state regions, urban areas, and remote Federal Class I areas.
    In many cities having annual mean PM2.5 concentrations 
exceeding 17 [mu]g/m\3\, improvements in annual average visibility 
resulting from the attainment of the annual PM2.5 standard 
are expected to be perceptible to the general population (e.g., to 
exceed 1 deciview). Based on annual mean monitored PM2.5 
data, many cities in the Northeast, Midwest, and Southeast as well as 
Los Angeles would be expected to experience perceptible improvements in 
visibility if the PM2.5 annual standard were attained. For 
example, in Washington, DC, where the IMPROVE monitoring network shows 
annual mean PM2.5 concentrations at about 19 [mu]g/m\3\ 
during the period of 1992 to 1995, approximate annual average 
visibility would be expected to improve from 21 km (29 deciview) to 27 
km (27 deciview), a change of 2 deciviews. The PM2.5 annual 
average in Washington, DC, was 18.9 [mu]g/m\3\ in 2000.
    The updated monitored data and air quality modeling presented in 
the RSD confirm that the visibility situation identified during the 
NAAQS review in 1997 is still likely to exist. Thus, the determination 
in the NAAQS rulemaking about broad visibility impairment and related 
benefits from NAAQS compliance are still relevant. Levels above the 
fine PM NAAQS cause adverse welfare impacts, such as visibility 
impairment (both regional and localized impairment).
    Furthermore, in setting the PM NAAQS, EPA acknowledged that levels 
of fine particles below the NAAQS may also contribute to unacceptable 
visibility impairment and regional haze problems in some areas, and 
Clean Air Act Section 169 provides additional authorities to remedy 
existing impairment and prevent future impairment in the 156 national 
parks, forests and wilderness areas labeled as Class I areas.
    In making determinations about the level of protection afforded by 
the secondary PM NAAQS, EPA considered how the Section 169 regional 
haze program and the secondary NAAQS would function together. Regional 
strategies are expected to improve visibility in many urban and non-
Class I areas as well. The following recommendation for the National 
Research Council, Protecting Visibility in National Parks and 
Wilderness Areas (1993), addresses this point:
    Efforts to improve visibility in Class I areas also would benefit 
visibility outside these areas. Because most visibility impairment is 
regional in scale, the same haze that degrades visibility within or 
looking out from a national park also degrade visibility outside it.
    The 1999-2000 PM2.5 monitored values, which cover about 
a third of the nation's counties, indicate that at least 82 million 
people live in areas where long-term ambient fine particulate matter 
levels are at or above 15 [mu]g/m\3\.\15\ Thus, these populations (plus 
those who travel to those areas) could be experiencing visibility 
impairment that is unacceptable, and emissions of PM and its precursors 
from engines in these categories contribute to this unacceptable 
impairment.\16\
---------------------------------------------------------------------------

    \15\ 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.
    \16\ These populations would obviously also be exposed to PM 
concentrations associated with the adverse health impacts related to 
PM2.5.
---------------------------------------------------------------------------

    Because the chemical composition of the PM affects visibility 
impairment, we used EPA's Regulatory Model System for Aerosols and 
Deposition (REMSAD)\17\ model to project visibility conditions in 2030 
accounting for the chemical composition of the particles and to 
estimate visibility impairment directly as changes in deciview. Our 
projections included anticipated emissions from the engines subject to 
this rule, and although our emission predictions reflected our best 
estimates of emissions projections at the time the modeling was 
conducted, we now have new estimates, as discussed in the RSD Chapter 
1. Based on public comment for this rule and new information, we have 
revised our emissions estimates in some categories downwards and other 
categories upwards; however, on net, we believe the modeling 
underestimates the PM air quality levels that would have been predicted 
if new inventories were used.
---------------------------------------------------------------------------

    \17\ 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.
---------------------------------------------------------------------------

    The most reliable information about the future visibility levels 
would be in areas for which monitoring data are available to evaluate 
model performance for a base year (e.g., 1996). Accordingly, we 
predicted that in 2030, 49 percent of the population will be living in 
areas where fine PM levels are above 15 [mu]g/m\3\ and monitors are 
available.\18\ This can be compared with the 1996 level of 37 percent 
of the population living in areas where fine PM levels are above 15 
[mu]g/m\3\ and monitors are available. Thus, a substantial percent of 
the population would experience unacceptable visibility impairment in 
areas where they live, work and recreate.
---------------------------------------------------------------------------

    \18\ 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.
---------------------------------------------------------------------------

    As shown in Table I.E-5, in 2030, we expect visibility in the East 
to be about

[[Page 68251]]

19 deciviews (or visual range of 60 kilometers) on average, with poorer 
visibility in urban areas, compared to the visibility conditions 
without man-made pollution of 9.5 deciviews (or visual range of 150 
kilometers). Likewise, we expect visibility in the West to be about 9.5 
deciviews (or visual range of 150 kilometers) in 2030, compared to the 
visibility conditions without man-made pollution of 5.3 deciviews (or 
visual range of 230 kilometers).
    Nonroad engines contribute significantly to these effects. As shown 
in Tables I.E-1 through I.E-3, nonroad engines emissions contribute a 
large portion of the total PM emissions from mobile sources and 
anthropogenic sources, in general. These emissions occur in and around 
areas with PM levels above the annual PM2.5 NAAQS. The 
engines subject to the final rule will contribute to these effects. 
They are estimated to emit 36,500 tons of direct PM in 2030, which is 
1.1 percent of the total anthropogenic PM emissions in 2030. Similarly, 
for PM precursors, the engines subject to this rule will emit 640,000 
tons of NOX and 1,411,000 tons HC in 2030, which are 3.8 and 
8.3 percent of the total anthropogenic NOX and HC emissions, 
respectively, in 2030. Recreational vehicles in particular contribute 
to these levels. In Table I.E-1 through I.E-3, we show that 
recreational vehicles emitted about 1.7 percent of mobile source PM 
emissions in 2000. Similarly, recreational vehicles are modeled to emit 
over 4 percent of mobile source PM in 2020 and 2030. Thus, the 
emissions from these sources contribute to the visibility impairment 
modeled for 2030 summarized in the table.
    Furthermore, for 20 counties across nine states, snowmobile trails 
are found within or near counties that registered ambient 
PM2.5 concentrations at or above 15 [mu]g/m\3\, the level of 
the PM2.5 NAAQS.\19\ 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.20, 21
---------------------------------------------------------------------------

    \19\ 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.
    \20\ This information also shows that snowmobiles contribute to 
concentrations of fine PM that are above the primary health-related 
NAAQS, which indicates that emissions from snowmobiles also 
contribute to primary and secondary PM pollution that may reasonably 
be anticipated to endanger public health and welfare.
    \21\ Review of the National Ambient Air Quality Standards for 
Particulate Matter: Policy Assessment for Scientific and Technical 
Information, OAQPS Staff Paper, EPA-452[bs]R-96-
013, July, 1996, at IV-7. This document is available from Docket A-
99-06, Document II-A-23.

  Table I.E-5--Summary of 2030 National Visibility Conditions Based on
                             REMSAD Modeling
                               [Deciviews]
------------------------------------------------------------------------
                                          Predicted 2030
                                            visibility b      Natural
                Regions a                     (annual       background
                                             average)       visibility
------------------------------------------------------------------------
Eastern U.S.............................           18.98             9.5
    Urban...............................           20.48
    Rural...............................           18.38
Western U.S.............................            9.54             5.3
    Urban...............................           10.21
    Rural...............................           9.39
------------------------------------------------------------------------
a Eastern and Western Regions are separated by 100 degrees north
  longitude. Background visibility conditions differ by region.
b The results incorporate earlier emissions estimates from the engines
  subject to this rule, as discussed in the Final Regulatory Support
  Document. We have revised our estimates both upwards for some
  categories and downwards for others based on public comment and
  updated information; however, we believe that the net results would
  underestimate future PM emissions.

(B) Visibility Impairment in Class I Areas
    The Clean Air Act establishes 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 this rule, EPA 
established a ``natural visibility'' goal. In that rule, EPA also 
encouraged the States to work together in developing and implementing 
their air quality plans. The regional haze program is focused on long-
term emissions decreases from the entire regional emissions inventory 
comprised of major and minor stationary sources, area sources and 
mobile sources. The regional haze program is designed to improve 
visibility and air quality in our most treasured natural areas from 
these broad sources. At the same time, control strategies designed to 
improve visibility in the national parks and wilderness areas will 
improve visibility over broad geographic areas. In the 1997 PM NAAQS 
rulemaking, EPA also anticipated the need in addition to the NAAQS and 
Section 169 regional haze program to continue to address localized 
impairment that may relate to unique circumstances in some Western 
areas. For mobile sources, there is a need for a Federal role in 
reduction of those emissions, particularly because mobile source 
vehicles are regulated primarily at the federal level.
    Visibility impairment is caused by pollutants (mostly fine 
particles and precursor gases) directly emitted to the 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. 
Visibility impairment is caused by both regional haze and localized 
impairment. As described above, regional haze is caused

[[Page 68252]]

by the emission from numerous sources located over a wide geographic 
area.\22\
---------------------------------------------------------------------------

    \22\ U.S. EPA 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. 1996. 
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.
---------------------------------------------------------------------------

    Because of evidence that fine particles are frequently transported 
hundreds of miles, all 50 states, including those that do not have 
Class I areas, 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 (64 FR 35722. 
July 1, 1999). The rule requires states to develop long-term strategies 
including enforceable measures designed to meet reasonable progress 
goals toward natural visibility conditions. 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.\23\
---------------------------------------------------------------------------

    \23\ In a recent case, American Corn Growers Association v. EPA, 
291 F. 3d 1 (D.C. Cir 2002), the court vacated the BART provisions 
of the Regional Haze rule, but the court denied industry's challenge 
to EPA's requirement that state's SIPs provide for reasonable 
progress towards achieving natural visibility conditions in national 
parks and wilderness areas and the ``no degradation'' requirement. 
Industry did not challenge requirements to improve visibility on the 
haziest 20 percent of days. A copy of this decision can be found in 
Docket A-2000-01, Document IV-A-113.
---------------------------------------------------------------------------

    In the PM air quality modeling described above, we also modeled 
visibility conditions in the Class I areas, and we summarize the 
results by region in Table I.E-6.

   Table I.E-6--Summary of 2030 Visibility Conditions in Class I Areas
                        Based on REMSAD Modeling
                        [Annual Average Deciview]
------------------------------------------------------------------------
                                                              Natural
                Region a                  Predicted 2030    background
                                            visibility b    visibility
------------------------------------------------------------------------
Eastern                                   ..............             9.5
Southeast...............................           25.02  ..............
Northeast/Midwest.......................           21.00  ..............
Western                                   ..............             5.3
Southwest...............................            8.69  ..............
California..............................           11.61  ..............
Rocky Mountain..........................           12.30  ..............
Northwest...............................           15.44  ..............
                                         -----------------
    National Class I Area Average.......           14.04  ..............
------------------------------------------------------------------------
a Regions are depicted in Figure VI-5 in the Regulatory Support Document
  for the highway Heavy Duty Engine/Diesel Fuel RIA (EPA 420-R-00-026,
  December 2000.) Background visibility conditions differ by region:
  Eastern natural background is 9.5 deciviews (or visual range of 150
  kilometers) and in the West natural background is 5.3 deciviews (or
  visual range of 230 kilometers).
b The results incorporate earlier emissions estimates from the engines
  subject to this rule, as discussed in the Final Regulatory Support
  Document. We have revised our estimates both upwards for some
  categories and downwards for others based on public comment and
  updated information; however, we believe that the net results
  underestimate future PM emissions.

    Nonroad engines represent a sizeable portion of the total inventory 
of anthropogenic emissions related to PM2.5, as shown in the tables 
above. Numerous types of nonroad engines may operate near Class I areas 
(e.g., mining equipment, recreational vehicles, and agricultural 
equipment). We have reviewed contributions from snowmobile in 
particular.
    Emissions from nonroad engines, in particular snowmobiles, 
contribute significantly to visibility impairment in Class I areas.\24\ 
Visibility and PM monitoring data are available for eight 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.\25\ Fine particle monitoring data 
for these parks are set out in Table I.E-7. This table shows the number 
of monitored days in the winter that fell within the 20-percent worst 
visibility days for each of these eight parks. Monitors collect data 2 
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 worst 
visibility days during a year which are tracked as the primary focus of 
regulatory efforts.\26\ 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 Alaska, the snowmobile season is October 1 to 
April 30.
---------------------------------------------------------------------------

    \24\ The results incorporate earlier emissions estimates from 
the engines subject to this rule, as discussed in the Final 
Regulatory Support Document. We have revised our estimates both 
upwards for some categories and downwards for others based on public 
comment and updated information; however, we believe that the net 
results would underestimate future PM emissions.
    \25\ No data were available at five additional parks where 
snowmobiles are also commonly used: Black Canyon of the Gunnison, 
CO, Grand Teton, WY, Northern Cascades, WA, Theodore Roosevelt, ND, 
and Zion, UT.
    \26\ 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.

[[Page 68253]]



    Table I.E-7--Winter Days That Fall Within the 20 Percent Worst Visibility Days At National Parks Used by
                                                   Snowmobiles
----------------------------------------------------------------------------------------------------------------
                                                                    Number of sampled wintertime days within 20
                                                                   percent worst visibility days  (maximum of 21
               NPS unit                          States                     out of 104 monitored 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 Area  MN......................          2           5           1           5
 (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.

    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.'' \27\ We examined future air quality predictions to whether the 
emissions from recreational vehicles, such as snowmobiles, contribute 
to regional visibility impairment in Class I areas. We present results 
from the future air quality modeling described above for these Class I 
areas in addition to inventory and air quality measurements. 
Specifically, in Table I.E-8, we summarize the expected future 
visibility conditions in these areas without these regulations.
---------------------------------------------------------------------------

    \27\ 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 I.E-8--Estimated 2030 Visibility in Selected Class I Areas a,b
----------------------------------------------------------------------------------------------------------------
                                                                                                      Natural
                                                                                  Predicted 2030    background
                                                                                    visibility      visibility
           Class I area                     County                 State              (annual         (annual
                                                                                      average         average
                                                                                     deciview)       deciview)
----------------------------------------------------------------------------------------------------------------
Eastern areas                       .....................  .....................  ..............             9.5
Acadia............................  Hancock Co...........  ME...................           23.42  ..............
Boundary Waters...................  St. Louis Co.........  MN...................           22.07  ..............
Voyageurs.........................  St. Louis Co.........  MN...................           22.07  ..............
Western areas                       .....................  .....................  ..............             5.3
Grand Teton NP....................  Teton Co.............  WY...................           11.97  ..............
Kings Canyon......................  Fresno Co............  CA...................           10.39  ..............
Mount Rainier.....................  Lewis Co.............  WA...................           16.19  ..............
Rocky Mountain....................  Larimer Co...........  CO...................            8.11  ..............
Sequoia-Kings.....................  Tulare Co............  CA...................            9.36  ..............
Yellowstone.......................  Teton Co.............  WY...................           11.97  ..............
----------------------------------------------------------------------------------------------------------------
a Natural background visibility conditions differ by region because of differences in factors such as relative
  humidity: Eastern natural background is 9.5 deciviews (or visual range of 150 kilometers) and in the West
  natural background is 5.3 deciviews (or visual range of 230 kilometers).
b The results incorporate earlier emissions estimates from the engines subject to this rule. We have revised our
  estimates both upwards for some categories and downwards for others based on public comment and updated
  information; however, on net, we believe that HD07 analyses would underestimate future PM emissions from these
  categories.

    The information presented in Table I.E-7 shows that visibility data 
support a conclusion that there are at least 8 Class I Areas (7 
national parks and one wilderness area) frequented by snowmobiles with 
one or more wintertime days within the 20-percent worst visibility days 
of the year, and in many cases several days. 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 worst visibility monitored days, 
2 of those days occurred during the wintertime when snowmobile 
emissions such as hydrocarbons contributed to visibility impairment.
    The information in Table I.E-8 shows that these areas also are 
predicted to have high annual average deciview levels in the future. 
Emissions from snowmobiles and other recreational vehicles, as well as 
other nonroad engines contributed to these levels.\28\
---------------------------------------------------------------------------

    \28\ See Chapter 1 in the RSD for a discussion or U.S. EPA 
Technical Support Document for Heavy-duty Engine and Vehicle 
Standards and Highway Diesel Fuel Sulfur Control Requirements--Air 
Quality Modeling Analyses December 2000. Docket No. A-2000-01, 
Docket Number IV-A-218. This document is also avaiable at 
www.epa.gov/otaq/hdmodels.htm.

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

[[Page 68254]]

    Ambient concentrations of fine particles are the primary pollutant 
responsible for visibility impairment. The classes of fine particles 
principally responsible for visibility impairment are 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.\29\
---------------------------------------------------------------------------

    \29\ 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.
---------------------------------------------------------------------------

    In the winter months, HC emissions from snowmobiles can be 
significant, and these HC emissions can be more than half of the 
organic carbon fraction of fine particles which are largely responsible 
for visibility impairment. In Yellowstone, a park with high snowmobile 
usage during the winter months, snowmobile HC emissions can exceed 500 
tons per year, as much as several large stationary sources.\30\ Other 
parks with less snowmobile traffic are also impacted although to a 
lesser extent by these HC emissions.\31\
---------------------------------------------------------------------------

    \30\ Emissions of NOX from snowmobiles contribute to 
the total amount of particulate nitrate, although the total 
NOX emissions from snowmobiles are considerably less than 
HC or direct PM emissions from these engines.
    \31\ 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 I.E-9 shows estimated 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).

            Table I.E-9.--Winter Season Snowmobile Emissions
                       [tons; 1999 Winter Season]
------------------------------------------------------------------------
            NPS unit                 HC        CO        NOX       PM
------------------------------------------------------------------------
Denali NP & Preserve............  X standard for snowmobiles. This 
standard will essentially cap NOX emissions from these 
engines to prevent backsliding. We are not promulgating standards that 
would require substantial reductions in NOX because we 
believe that standards which force substantial NOX 
reductions would likely not lead to reductions in PM and may in fact 
increase PM levels. NOX emissions from snowmobiles are very 
small, particularly compared to levels of HC. In fact, technologies 
that reduce HC and CO are likely to increase levels of NOX 
and vice versa, because technologies to reduce HC and CO emissions 
would result in leaner operation. A lean air and fuel mixture causes 
NOX emissions to increase. These increases are minor, 
however, compared to the reductions of HC (and therefore PM) that 
result from these techniques.
    On the other hand, substantial control of NOX emissions 
may have the counter-effect of increasing HC emissions and the greater 
PM emissions associated with those HC emissions. The only way to reduce 
NOX emissions from four-stroke engines (at the same time as 
reducing HC and CO levels) would be to use a three-way catalytic 
converter. We do not have enough information at this time on the 
durability or safety implications of using a three-way catalyst with a 
four-stroke engine in snowmobile applications. Three-way catalyst 
technology is well beyond the technology reviewed for this rule and 
would need substantial additional review before being contemplated for 
snowmobiles. Thus, given the overwhelming level of HC compared to 
NOX, and the secondary PM expected to result from these 
levels, it would be premature and possibly counterproductive to 
promulgate NOX standards that require significant 
NOX reductions from snowmobiles at this time. We have 
therefore decided to structure our long term HC+NOX standard 
for 2012 and later model year snowmobiles to require only a cap on 
NOX emissions from the advanced technology engines which 
will be the dominant technology in the new snowmobiles certified at 
that time.

II. Nonroad: General Provisions

    This section describes general provisions concerning the emission 
standards adopted in this final rule and the ways in which a 
manufacturer shows compliance with these standards. Clean Air Act 
section 213(a)(3) 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. Section 
202(a)(4) provides further authority to adopt standards for pollution 
beyond that regulated under section 202(a)(3). In addition to emission 
standards, this document describes a variety of other provisions 
necessary for implementing the proposed emission-control program in an 
effective way, such as applying for certification, labeling engines, 
and meeting warranty requirements.
    The discussions in this section are general and are meant to cover 
all the nonroad engines and vehicles subject to the new standards. In 
this Section II, the term engine is sometimes used to include both 
nonroad engines and nonroad vehicles. Refer to the discussions of 
specific programs, contained in Sections III through VI, to determine 
whether the regulations are being applied to the entire vehicle or just 
the engine, as well as for more information about specific requirements 
for different categories of nonroad engines and vehicles.
    This section describes general nonroad provisions related to 
certification prior to sale or introduction into commerce. Section VII 
describes several compliance provisions that apply generally to nonroad 
engines, and Section VIII similarly describes general testing 
provisions.

A. Scope of Application

    This final rule covers recreational marine diesel engines, nonroad 
spark-ignition engines rated over 19 kW, and recreational spark-
ignition vehicles introduced into commerce in the United States. The 
following sections describe generally when emission standards apply to 
these products. These provisions are generally consistent with prior 
nonroad and motor-vehicle rulemakings. Refer to the specific program 
discussion below for more information about the scope of application 
and timing of new standards.
1. What Engines and Vehicles Are Subject to the Standards?
    The scope of this rule is broadly set by Clean Air Act section 
213(a), which instructs us to set emission standards for new nonroad 
engines and new nonroad vehicles. Generally speaking, this rule is 
intended to cover all new engines and vehicles in the categories listed 
above (including any associated equipment or vessels) for their entire 
useful lives, as defined in the regulations.\33\ Once the emission 
standards apply to a group of engines or vehicles, manufacturers of a 
new engine must have an approved certificate of conformity from us 
before selling them in the United States.\34\ This also applies to 
importation by any person and any other means of introducing new 
engines and vehicles into commerce. We also require equipment 
manufacturers that install engines from other companies to install only 
certified engines into new equipment once emission standards

[[Page 68256]]

apply. The information we require of manufacturers applying for 
certification (with the corresponding engine labels) provides assurance 
that manufacturers have met their obligation to make engines that meet 
emission standards over the useful life we specify in the regulations.
---------------------------------------------------------------------------

    \33\ For recreational vehicles, we are adopting vehicle-based 
standards. For these applications, the term ``engine'' in this 
document applies equally to the vehicles.
    \34\ The term ``manufacturer'' includes any individual or 
company that manufactures any new engine for sale or otherwise 
introduces a new engine into commerce in the United States. It also 
includes importers for resale.
---------------------------------------------------------------------------

2. How Do I Know if My Engine or Equipment Is New?
    We are defining ``new'' consistent with previous rulemakings. We 
will consider a nonroad engine (or nonroad equipment) to be new until 
its title has been transferred to the ultimate purchaser or the engine 
has been placed into service. This definition applies 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 will be considered new until their title 
has been transferred to an ultimate buyer. In Section II.B.1 we 
describe how to determine the model year of individual engines and 
vehicles.
    To further clarify the definition of new nonroad engine, we specify 
that a nonroad engine, vehicle, or equipment is placed into service 
when it is used for its intended purpose. An engine subject to emission 
standards is used for its functional purpose when it is installed in 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 our 
approach is reasonable because the practice of adapting used highway or 
land-based nonroad engines may become more common if these engines are 
not subject to emission standards.
    In summary, an engine may be subject to emission standards if it 
is:
    [sbull] Freshly manufactured, whether domestic or imported; this 
may include engines produced from engine block cores
    [sbull] Installed for the first time in nonroad equipment after 
having powered an automobile or a category of nonroad equipment subject 
to different emission standards
    [sbull] Installed in new nonroad equipment, regardless of the age 
of the engine
    [sbull] Imported (freshly manufactured or used) and was originally 
manufactured after the effective date of our standards
3. When Do Imported Engines Need To Meet Emission Standards?
    The emission standards apply to all new engines sold in the United 
States. Consistent with Clean Air Act section 216, engines that are 
imported by any person, whether freshly manufactured or used are 
considered ``new'' engines.\35\ Thus, we 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 manufactured after our standards begin 
to apply need an EPA-issued certificate of conformity to clear customs, 
with limited exemptions (as described below).
---------------------------------------------------------------------------

    \35\ The definition in Clean Air Act section 216 applies 
specifically to ``new motor vehicles,'' but we have interpreted 
``new nonroad engine'' consistently with the definition in section 
216.
---------------------------------------------------------------------------

    An engine or marine vessel, recreational vehicle, or other piece of 
nonroad equipment that was built after emission standards take effect 
cannot be imported without a currently valid certificate of conformity. 
We would consider it to be a new engine, vehicle, or vessel, which 
would trigger a requirement 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 vessel 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 or vehicles 
abroad, transferring their title, and then importing them as used 
vessels or vehicles.
    Imported engines are generally subject to emission standards. 
However, we are not adopting a definition of ``import'' in this 
regulation. We will defer to the U.S. Customs Service for 
determinations of when an engine or vehicle is imported into the U.S.
4. Do the Standards Apply to Exported Engines or Vehicles?
    Engines or vehicles intended for export are generally not required 
to meet the emission standards or other requirements adopted in this 
rule. However, engines that will be exported and subsequently re-
imported into the United States must be covered by a certificate of 
conformity. For example, this would occur 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 the modification is complete. 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. We also do not exempt engines exported to countries 
that share our emission standards.
5. Are Any New Engines or Vehicles in the Applicable Categories Not 
Subject to Emission Standards of This Rule?
    We are extending our basic nonroad exemptions to the engines and 
vehicles covered by this rulemaking. 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 
emission standards do not apply to them. Refer to the program 
discussions below for a description of how these exclusions or 
exemptions apply for different categories of engines.

B. Emission Standards and Testing

1. Which Pollutants Are Covered by Emission Standards?
    Engines subject to the exhaust emission standards must meet 
standards based on measured levels of specified pollutants, such as 
NOX, HC, or CO, though not all engines have standards for 
each pollutant. Diesel engines generally must also meet a PM emission 
standard. In addition, there may be standards or other requirements for 
crankcase, evaporative, or permeation emissions, as described below.
    The emission standards are effective on a model-year basis. We 
define model year much like we do for passenger cars. It generally 
means either the calendar year or some other annual production period 
based on the manufacturer's production practices. A model year may 
include January 1 from only one year.

[[Page 68257]]

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 must meet emission standards for that model year. For 
example, manufacturers producing new engines in the 2006 model year 
need to comply with the 2006 standards. The model year of a particular 
engine is determined based on the date that the engine is fully 
assembled. In the case of recreational vehicles, this generally applies 
to the final assembly of the whole vehicle, since the emission 
standards apply to the vehicle. 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.
2. What Standards Apply to Crankcase, Evaporative, Permeation, and 
Other Emissions?
    Blow-by of combustion gases and the reciprocating action of the 
piston can cause exhaust emissions to 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 
hydrocarbons. We have long required that automotive engines prevent 
emissions from their crankcases. Manufacturers typically do this by 
routing crankcase vapors through a valve into the engine's air intake 
system. We generally require in this rulemaking that engines control 
crankcase emissions.
    Vehicles with spark-ignition engines use fuel that is volatile and 
the unburned fuel can be released into the ambient air. We are adopting 
standards to limit evaporative emissions from the fuel. Evaporative 
emissions result from heating gasoline or other volatile fuels in a 
tank that is vented to the atmosphere or from permeation through 
plastic fuel tanks and rubber hoses. Section IV describes the 
permeation standards for recreational vehicles. Section V provides 
additional information on the evaporative emission standards for Large 
SI engines.
    We are also adopting a general requirement that all engines subject 
to this final rule may not cause or contribute to an unreasonable risk 
to public health, welfare, or safety, especially with respect to 
noxious or toxic emissions that may increase as a result of emission-
control technologies. The regulatory language has been modified 
consistent with the alternate language suggested in the proposal. This 
alternate language implements sections 202(a)(4) and 206(a)(3) of the 
Act and clarifies that the purpose of this requirement is to prevent 
control technologies that would cause unreasonable risks, rather than 
to prevent trace emissions of any noxious compounds. For example, this 
requirement would prevent the use of emission-control technologies that 
produce high levels of pollutants for which we have not set emission 
standards, but nevertheless pose a risk to the public. However, it 
should be noted that this would generally not apply to exhaust gas 
recirculation systems on gasoline- or diesel-fueled engines.
3. What Duty Cycles Is EPA Adopting 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 is generally derived from 
typical operation from the field, is critical in evaluating the likely 
emissions performance of engines designed to emission standards. 
Testing for recreational marine diesel engines and Large SI engines may 
also include additional operation not included in the specific duty 
cycles.
    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. Those sections 
also include information regarding testing provisions that do not rely 
on specific operating cycles (i.e., field-testing, not-to exceed 
testing, and evaporative testing).
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 an appropriate level of emission 
control for the whole range of adjustability. Manufacturers must 
therefore show that their engines meet emission standards over the full 
adjustment range. Manufacturers must also provide a physical stop to 
prevent adjustment outside the established range. Operators are then 
prohibited by the anti-tampering provisions from adjusting engines 
outside this range.
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 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 for commercial 
marine diesel engines. The general purposes of such programs are to 
provide incentives to manufacturers to produce clean products, as well 
as to create market choices and opportunities for environmental 
information for consumers regarding such products.
    We are adopting voluntary Blue Sky Series standards for some of the 
engines subject to this final rule. 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.

C. Demonstrating Compliance

    We are adopting a compliance program to accompany the final 
emission standards. This consists first of a process for demonstrating 
that new engine models comply with the emission standards. In addition 
to new-engine testing, several provisions ensure that emission-control 
systems will continue to function over long-term

[[Page 68258]]

operation in the field. Most of these certification 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 Do I Certify My Engines?
    We are adopting a certification process similar to that already 
established for other nonroad 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, EPA issues a Certificate of 
Conformity which allows the manufacturer to produce and sell the 
engines described in the application in the U.S.
    Manufacturers certify their engine models by grouping them into 
engine families that have similar emission characteristics. The engine 
family definition is fundamental to the certification process and to a 
large degree determines the amount of testing required for 
certification. The 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.
    Engine manufacturers are 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 
or the average service life. 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 generally consider this useful life 
value in amount of operation to be a minimum value, requiring 
manufacturers to comply for a longer period in those cases where their 
engines operate longer than the minimum useful life.
    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, manufacturers must 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 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 helps the manufacturer be sure that all engines within the 
engine family are complying with emission standards. Manufacturers 
estimate the rate of deterioration for each engine family over its 
useful life and show that engines continue to meet standards after 
incorporating the estimated deterioration. We may also test the engines 
ourselves.
    Manufacturers must include in their application for certification 
the results of emission tests showing that the engine family meets 
emission standards. In addition, we may ask the manufacturer to include 
any additional data 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 
forming the basis of the manufacturer's application are a robust 
indicator of emission-control performance, rather than a spurious or 
incidental test result.
    We are adopting test-fuel specifications intended to represent in-
use fuels. Engines must be able to meet the standards on fuels with 
properties anywhere in the specified ranges. The test fuel is generally 
to be used for all testing associated with the regulations, including 
certification, production-line testing, and in-use testing. Refer to 
the program discussions below related to test fuel specifications.
    We 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 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 don't limit the 
maintenance an operator may perform; it merely limits the maintenance 
that operators can 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 require every engine a 
manufacturer produces from the engine family to have a label with basic 
identifying information. The design and content of engine labels is 
specified in the regulations.
2. What Warranty Requirements Apply to Certified Engines?
    Consistent with our current emission-control programs, 
manufacturers must provide a design and defect warranty covering 
emission-related components for a minimum period specified in the 
regulations. This minimum period is generally half of the useful life 
period. The regulations also provide that the manufacturer's emission 
warranty period could be adjusted to a value higher than the minimum 
period for those cases where the manufacturer provides a longer 
mechanical warranty for the engine or any of its components; this 
includes extended warranties that are available for an extra price. Any 
such adjustment would be dependent on the average service life of the 
vehicle as well. The manufacturer generally does not need to include 
scheduled maintenance or other routine maintenance under the emission 
warranty. See the regulation language for a detailed description of the 
components that are considered to be 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, however, if 
the operator caused the component failure by misusing the engine or 
failing to do necessary maintenance.
    We are also adopting 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 Use Emission Averaging To Show That I Meet Emission Standards?
    Many of our mobile source emission-control programs include 
voluntary use of emission credits 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 improve the technological feasibility and reduce the cost of 
achieving standards, allowing us to consider a more stringent emission 
standard than might otherwise be

[[Page 68259]]

appropriate, including a compliance date for the standards earlier than 
would otherwise be appropriate. Manufacturers gain flexibility in 
product planning and 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 allows a manufacturer to certify one or more engine 
families at emission levels above the applicable emission standards, as 
long as the increased emissions from that engine family are offset by 
one or more engine families certified below the applicable standards. 
The over-complying engine families generate credits that are used by 
the under-complying engine families. Compliance is determined taking 
into account differences in production volume, power and useful life 
among engine families. The average of all the engine families for a 
particular manufacturer's production must be at or below the level of 
the applicable emission standards. This calculation generally factors 
in sales-weighted average power, production volume, and useful life. 
Banking allows a manufacturer to generate emission credits and bank 
them for future use in its own averaging program in later years. 
Trading allows transfer of credits to another company.
    In general, a manufacturer choosing to participate in an emission-
credit program certifies each participating engine family to a Family 
Emission Limit. In its certification application, a manufacturer 
determines 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 each engine in that 
engine family. Emission credits are based on the difference between the 
emission standard that applies to the family and the Family Emission 
Limit. Manufacturers must meet the Family Emission Limit for all 
emission testing of any engine in that family. At the end of the model 
year, manufacturers must 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 may 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. Refer to the 
program discussions below for more information about emission-credit 
provisions for individual engine categories.
4. What Are the Production-Line Testing Requirements?
    We are adopting production-line testing requirements for 
recreational marine diesel engines, recreational vehicles, and Large SI 
engines. Manufacturers must 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 a small subset of production-line engines in a 
particular engine family (see Section VII.E). Production-line testing 
requirements are already common to several categories of nonroad 
engines as part of their emission-control program.
    If an engine fails to meet an emission standard, the manufacturer 
must modify it to bring that specific engine into compliance. 
Manufacturers may adjust the engine family's Family Emission Limit to 
take into account the results from production-line testing (if 
applicable). If too many engines exceed emission standards, this 
indicates it is more of a family-wide problem and the manufacturer must 
correct the problem for all affected engines. The remedy 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 before producing more engines. The 
remedy may also need to address engines already produced since the last 
showing that production-line engines met emission standards.
    The production-line testing programs for Large SI engines and for 
recreational vehicles depend on the Cumulative Sum (CumSum) statistical 
process for determining the number of engines a manufacturer needs to 
test (see the regulations for the specific calculation methodology). 
Each manufacturer generally selects engines randomly at the beginning 
of each new quarter.\36\ 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. The Cumulative Sum program uses the 
emission results to calculate the number of tests required for the 
remainder of the year to reach a pass or fail determination for 
production-line testing. If tested engines have emissions close to the 
standard, the statistical sampling method calls for an increased number 
of tests to show whether to make a pass or fail determination for the 
engine family. 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.
---------------------------------------------------------------------------

    \36\ We consider an engine to be randomly selected if it 
undergoes normal assembly and manufacturing procedures. An engine is 
not randomly selected if it has been built with any kind of special 
components or procedures.
---------------------------------------------------------------------------

    If an engine family fails the production-line testing criteria, we 
may suspend the Certificate of Conformity. Under the CumSum approach, 
individual engines can exceed the emission standards without causing 
the whole engine family to exceed the production-line testing criteria. 
The production-line testing criteria are designed to determine if there 
is a problem that applies broadly across the engine family. Whether or 
not the production-line testing criteria are met, manufacturers must 
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.
    The regulations allow us to reduce testing requirements for engine 
families that consistently pass the production-line testing criteria. 
For engine families that pass all of the production-line test 
requirements 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 may be 
limited to a single model year,

[[Page 68260]]

but manufacturers may continue to request reduced testing rates.
    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. A manufacturer 
may therefore 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 approve the plan, we will use these criteria 
to determine when an engine family passes or fails the production-line 
testing criteria. It is important to note that this allowance is 
intended only as a flexibility, and is not intended 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 Emission-Related Installation Instructions?
    Manufacturers selling loose engines to equipment manufacturers must 
develop a set of emission-related installation instructions. These 
instructions include anything the installer needs 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 
or permeation emissions. We approve emission-related installation 
instructions as part of the certification process. If equipment 
manufacturers fail to follow the established emission-related 
installation instructions, we will consider this tampering, which may 
subject them to significant civil penalties. Refer to the program 
discussions below for more information about specific provisions 
related to installation instructions.
2. Are There Special Provisions for Small Manufacturers of These 
Engines and Vehicles?
    The scope of this rule includes many engine and vehicle 
manufacturers that have previously not been subject to our mobile 
source regulations or certification process. Some of these 
manufacturers are small businesses, with unique concerns relating to 
the compliance burden from the general regulating program. The sections 
describing the emission-control program include discussion of special 
compliance provisions designed to address this for the different engine 
categories.

III. Recreational Vehicles and Engines

A. Overview

    We are adopting new exhaust 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.\37\ In our 
program to set exhaust emission standards for nonroad spark-ignition 
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 regulated differently than Small SI 
engines. In the same way, we treat snowmobiles, off-highway 
motorcycles, and ATVs separately from our Large SI engine program, 
which is described in Section V. Recreational vehicles that are not 
snowmobiles, off-highway motorcycles, or ATVs, will be subject to the 
standards that otherwise apply to small nonroad spark-ignition engines 
(see Section III.B.2).
---------------------------------------------------------------------------

    \37\ Almost all recreational vehicles are equipped with spark-
ignition engines. Any diesel engines used in these applications must 
meet our emission standards for nonroad diesel engines.
---------------------------------------------------------------------------

    We are adopting exhaust emission standards for HC and CO from all 
recreational vehicles. We are adopting an additional requirement to 
control NOX from off-highway motorcycles and ATVs. 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 standards. We recognize that some small businesses 
manufacture recreational vehicles; we are therefore adopting several 
special compliance provisions to reduce the burden of emission 
regulations on small businesses.
1. What Are Recreational Vehicles and Who Makes Them?
    We are adopting new exhaust emission standards for off-highway 
motorcycles, ATVs, and snowmobiles. Eight large manufacturers dominate 
the sales of these recreational vehicles. Of these eight manufacturers, 
seven of them manufacture 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 are two-wheeled, self-
powered vehicles that come in a variety of configurations and styles. 
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. A significant number are used in competition events. 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) in size. 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

[[Page 68261]]

domestic sales of off-highway motorcycles. There are also several 
relatively small companies that manufacture off-highway motorcycles, 
many of which specialize in competition machines.
    b. All-terrain vehicles. The earliest ATVs were three-wheeled off-
highway models with large balloon tires that existed in the early 
1970's. 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. The ATV steering system uses 
motorcycle handlebars, rather than a steering wheel. 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 multi-function use and have the ability to perform 
many utility functions, such as plowing snow, tilling gardens, and 
mowing lawns in addition to use for recreational riding. They are 
typically heavier and equipped with relatively large four-stroke 
engines and automatic transmissions with a reverse gear. Sport quads 
are smaller and lighter and designed primarily for recreational 
purposes. They are equipped with two- or four-stroke engines and manual 
transmissions. Presently utility ATVs comprise about 75 percent of the 
market and sport models about 25 percent.
    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 below for snowmobiles are significant 
ATV producers. These seven companies represent over 95 percent of total 
domestic ATV sales. The remaining 5 percent of sales come from 
importers, which tend to import less expensive, youth-oriented ATVs.
    As discussed below, we are requiring utility vehicles capable of 
speeds above 25 mph to comply the regulations for 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 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.
    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 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 revolutions per minute (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 
stand-on scooters and skateboards that have been equipped with 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 revising the 
Small SI rules to cover these engines under the Small SI regulations. 
To avoid any problems in transitioning to meet emission standards, we 
are applying these standards beginning in 2006. We did not receive any 
comments on this approach.
2. What Is the Regulatory History for Recreational Vehicles?
    The California Air Resources Board (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 III.A-1, are based on the highway motorcycle chassis 
test procedures. Manufacturers may certify ATVs to optional standards, 
also shown in Table III.A-1, which are based on the utility engine test 
procedure.\38\ 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 small four-stroke engines and advanced two-
stroke engines with a catalytic converter. California ARB anticipated 
that the standards would be met initially by using high-performance 
four-stroke engines.
---------------------------------------------------------------------------

    \38\ 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).

           III.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\ 1.2  ..............              15  ..............
----------------------------------------------------------------------------------------------------------------


[[Page 68262]]


----------------------------------------------------------------------------------------------------------------
                                                       HC + NOX           CO              PM
--------------------------------------------------------------------------------------------------
Optional standards for ATV engines below 225 cc (g/       \a\ 12.0             300  ..............
 bhp-hr)..........................................
Optional standards for ATV engines at or above 225        \a\ 10.0             300  ..............
 cc (g/bhp-hr)....................................
----------------------------------------------------------------------------------------------------------------
a Corporate-average standard.

    California revisited the program because a lack of certified off-
highway motorcycles from manufacturers was reportedly creating economic 
hardship for dealerships. The number of certified off-highway 
motorcycle models was particularly inadequate.\39\ In 1998, California 
revised the program, allowing the 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 four-stroke engines.
---------------------------------------------------------------------------

    \39\ 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 Rule

    We are adopting new emission standards for new off-highway 
motorcycles, ATVs, and snowmobiles. (We are also applying existing 
Small SI emission standards to other recreational equipment, as 
described above.) The engines used in recreational vehicles tend to be 
small, air- or liquid-cooled, reciprocating Otto-cycle engines that 
operate on gasoline.\40\ Engines used in vehicle applications 
experience engine performance that is characterized by highly transient 
operation, with a wide range of engine speed and load capability. 
Maximum engine speed are 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.\41\
---------------------------------------------------------------------------

    \40\ Otto-cycle is another name for a reciprocating, internal-
combustion engine that uses a spark to ignite a homogeneous air and 
fuel mixture, in which air-fuel mixing may occur inside or outside 
the combustion chamber.
    \41\ Snowmobiles use continuously variable transmissions, which 
tend to operate like torque converters.
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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 HC and 
PM than four-stroke engines of similar size and power. Two-stroke 
engines have lower NOX emissions than do four-stroke engines 
because they experience a significant amount of internal exhaust gas 
recirculation resulting from exhaust gases being drawn back into the 
combustion chamber on the piston's downward stroke while the exhaust 
port is uncovered. Exhaust gas is inert and displaces fresh fuel and 
air that could otherwise be combusted, which creates lower in-cylinder 
temperatures and thus less NOX. 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, and other characteristics, 
tend to make two-stroke engines popular as a power unit for 
recreational vehicles. With the exception of a few youth and touring 
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 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

[[Page 68263]]

engines used in go carts are typically covered by the Small SI 
standards because they don't operate above 5000 rpm. Similarly, engines 
used in golf carts are included in the Small SI program. As discussed 
above, we are revising the Small SI regulations to include all 
recreational engines except those in off-highway motorcycles, ATVs, 
snowmobiles, and hobby engines. Golf cart and go-cart engines will 
remain in the Small SI program because the vehicles are not designed 
for operation over rough terrain and do not meet the definition of ATV. 
We are accordingly removing the 5,000 rpm and speed governor criteria 
from the applicability provisions of the Small SI regulations.
3. Utility Vehicles
    We proposed to define ATV as a ``nonroad vehicle with three or more 
wheels and a seat designed for operation over rough terrain and 
intended primarily for transportation'', and that it would include 
``both land-based and amphibious vehicles''. We requested comment on 
the proposed definition and based on comments, we are modifying the 
definition to clearly exclude utility vehicles not capable of reaching 
25 mph. Utility vehicles differ from ATVs in several ways. As stated 
earlier, an ATV is operated and ridden very similar to a motorcycle, 
with the rider straddling the seat and using handlebars to steer the 
vehicle. The throttle and brakes are located on the handle bars, 
similar to a motorcycle and snowmobile. Utility vehicles look and 
operate very similarly to golf carts. The operator sits on a bench seat 
with a back support that holds two or more passengers. Rather than 
handlebars, utility vehicles use a steering wheel and have throttle and 
brake pedals on the floor, similar to an automobile. Utility vehicles 
also typically have a cargo box or bed (similar to that found on a 
pick-up truck) used for hauling cargo. We define an off-highway utility 
vehicle as a ``nonroad vehicle that has four or more wheels, seating 
for two or more persons, is designed for operation over rough terrain, 
and has either a rear payload of 350 pounds or more or seating for six 
or more passengers.'' We are requiring utility vehicles capable of high 
speed operation (speeds greater than 25 mph) to meet ATV standards. For 
utility vehicles that are permanently governed and not capable of 
reaching 25 mph, manufacturers must either continue to certify them to 
the Small SI standards (or Large SI standards, if applicable) or 
optionally certify them to the new ATV standards.
    We received comments from the Outdoor Power Equipment Institute 
(OPEI) that the definition should be clarified to exclude utility 
vehicles. Most utility vehicles are equipped with engines that are 
currently required to meet EPA Small SI standards. OPEI commented that 
utility vehicles are designed specifically for work related tasks and 
are equipped with seating for passengers, a bed for cargo, and riding-
mower-style controls.
    The industry differentiates between utility vehicles based on 
vehicle speed. The vast majority of utility vehicles are considered 
``low-speed utility vehicles'' (LUVs) and are vehicle speed governed 
with maximum speed of less than 25 mph. The engines used in such 
vehicles are generally below 25 hp and are typically used in other lawn 
and garden or utility applications such as generators or lawn tractors. 
The engines differ significantly from those used in recreational 
products which are designed for higher rpm operation with an emphasis 
on higher performance. OPEI also provided comment on a newer type of 
utility vehicle, which uses a more powerful (over 19kW) ATV-based 
engine and is capable of speeds of up to 40 mph.
    We are finalizing the approach described. The engines used in low-
speed utility vehicles are more similar in design and use to utility 
engines than ATVs. The engines used to power these vehicles are often 
used in other utility applications, such as lawn and garden tractors 
and generators and are typically produced by companies that specialize 
in utility and lawn equipment rather than power sport vehicles. These 
products are already certified to the Small SI standards.
    However, we have some concerns with continuing to use the Small SI 
program test cycle for engines used in applications that operate at 
broad engine speeds. The cycle was developed primarily for push 
lawnmowers and other equipment that operates in a narrow band of engine 
speeds. The Small SI test cycle measures emissions only at a single 
high engine speed. We are concerned that the Small SI test cycle may 
not achieve the same emission reductions for off-highway utility 
vehicles in use as it would for lawnmowers, especially as more 
stringent standards go into effect. The concern also applies to other 
large ride-on equipment in the Small SI program, such as riding lawn 
mowers, where engine speed is inherently variable. While the ATV 
program may not be appropriate for these low-speed utility applications 
due to operating and design differences, the Small SI program as it is 
currently designed may not be completely appropriate either. Since we 
did not propose changes for the Small SI program which currently 
applies to utility vehicles and need to further study the issues, we 
are not finalizing such changes to the Small SI program in this Final 
Rule. We plan to continue to study the issue and, if necessary, address 
it through a future rulemaking for the Small SI program.
    In addition to test cycle, there are other reasons we plan to 
continue to examine the appropriateness of the Small SI program for 
large ride-on equipment. With respect to useful life, we are concerned 
that off-highway utility vehicles may be designed to last significantly 
longer than the typical lawnmower. 40 CFR 90.105 specifies useful life 
values that vary by application with the longest useful life being 1000 
hours. It is not clear that this maximum value is high enough to 
address the expected life of in-use off-highway utility vehicles, 
especially those that are used commercially. Finally, with respect to 
the level of the standards, we are concerned about the relative 
stringency of the Small SI standards relative to the long-term 
standards for ATVs and other nonroad vehicles. Nevertheless, given the 
low-speed operation of these vehicles, and other differences, we do not 
believe that they should be treated the same as higher speed ATVs. We 
did not propose changes for the Small SI program to address the above 
issues and need to study them further. However, these vehicles are 
unique in many ways, and should be addressed in a future rulemaking.
    Given the utility nature of the low-speed vehicles, we believe that 
at least for now, it is appropriate to continue to certify them under 
40 CFR part 90. For vehicles capable of higher speeds (e.g., greater 
than 25 mph), the engine designs and vehicle in-use operation is likely 
to be more like ATVs. The test procedures and standards for ATVs will 
better fit these high speed vehicles than those in the Small SI 
program. For regulatory purposes, we are defining an off-highway 
utility vehicle as a nonroad vehicle that has four or more wheels, 
seating for two or more persons, is designed for operation over rough 
terrain, and has either a rear payload capacity of 350 pounds or more 
or total seating for six or more passengers.
4. Hobby Engines
    The Small SI rule categorized spark-ignition engines used in model 
cars, boats, and airplanes as recreational engines and exempted them 
from the

[[Page 68264]]

Small SI program.\42\ We are continuing to exclude hobby engines from 
the Small SI program because of significant engine design and use 
differences. We also believe that hobby engines are substantially 
different than engines used in recreational vehicles and, as proposed, 
we are not including spark-ignition hobby engines in this final rule. 
We received no comment on our proposed treatment of hobby engines or 
any additional information on their design or use.
---------------------------------------------------------------------------

    \42\ 80 FR 24292, April 25, 2000.
---------------------------------------------------------------------------

    There are about 8,000 spark-ignition engines sold per year for use 
in scale-model aircraft, cars, and boats.\43\ 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.\44\ A typical spark-ignition hobby engine is approximately 25 
cc with a horsepower rating of about 1-3 hp, though larger engines are 
available. These spark-ignition 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 displacement models, are 
frequently used in competitive events by 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.
---------------------------------------------------------------------------

    \43\ 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.
    \44\ Hobby engines with glow plugs are considered compression-
ignition (diesel) engines because they lack a spark-ignition system 
and a throttle (see the definition of compression-ignition, 40 CFR 
89.2). The nonroad diesel engine regulations 40 CFR part 89 
generally do not apply to hobby engines, so these engines are 
unregulated.
---------------------------------------------------------------------------

    The average annual hours of operation has been estimated to be 
about 12.2 hours per year.\45\ 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.
---------------------------------------------------------------------------

    \45\ 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.
---------------------------------------------------------------------------

    Spark-ignition 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 similar, the materials, airflow, cooling, and fuel 
delivery systems are considerably different.46 47 Some 
spark-ignition model engines are scale replicas of multi-cylinder 
aircraft or automobile engines and are fundamentally different than 
spark-ignition 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.
---------------------------------------------------------------------------

    \46\ 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.
    \47\ 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 including spark-ignition hobby engines in the 
recreational vehicles program. The engines differ significantly from 
other recreational engines 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 four-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, spark-ignition 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 spark-ignition hobby 
engines as a whole account for less than 30 tons of HC nationally per 
year, much less than 0.01 percent of mobile source HC emissions).\48\
---------------------------------------------------------------------------

    \48\ 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 spark-ignition engine 
applications would be sufficiently representative or even technically 
practical for hobby engines. We are not aware of any efforts to develop 
an emission test cycle or conduct any emission testing of these 
engines. Also, 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. EPA will continue to review 
these issues, as necessary, in the future and reconsider adoption of 
regulations if appropriate.
5. Competition Exemptions
    a. 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.49 50 These high-performance 
motorcycles are

[[Page 68265]]

largely powered by two-stroke engines, though some four-stroke models 
have been introduced in recent years.
---------------------------------------------------------------------------

    \49\ 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.
    \50\ 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, such as 
enduros and trials bikes, 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 the proposal we stated that in previous 
nonroad 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.
    Most motorcycles marketed for competition do not appear to have 
obvious physical characteristics that constrain their use solely to 
competition. In fact, they are usually sold by dealers from the 
showroom floor. Upon closer inspection, however, there are several 
features and characteristics for many competition motorcycles that 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 (such as roads, parks, state land, 
and federal land).\51\ Vehicle performance of modern motocross bikes is 
so advanced (for example, with extremely high power-to-weight ratios 
and advanced suspension systems) that it is highly unlikely that these 
machines will be used for recreational purposes. In addition, motocross 
and other competition off-highway motorcycles typically do not come 
with a warranty, which further deters purchasing and using competition 
bikes for recreational operation.\52\ We believe these features are 
sufficient in distinguishing competition motorcycles from recreational 
motorcycles. Therefore, we are specifically adopting 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; an engine 
displacement greater than 50 cc; absence of a manufacturer warranty; 
and the absence of a functional seat.
---------------------------------------------------------------------------

    \51\ 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.
    \52\ 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.
---------------------------------------------------------------------------

    Manufacturers must specifically request and receive an exemption 
from EPA to sell off-highway motorcycles without a certificate under 
the competition exemption. Vehicles not meeting the applicable criteria 
listed above 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. Examples of this 
type of evidence may be technical rationale explaining the differences 
between a competition and non-competition motorcycle, marketing and 
sales information indicating the intent of the motorcycle for 
competition purposes, and survey data from users indicating the 
competitive nature of the motorcycle.
    Although there are several features that generally distinguish 
competition motorcycles from recreational motorcycles, several parties 
have commented that they believe motorcycles designed for competition 
use are also 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.\53\ 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 excluding a high percentage of off-highway 
motorcycles as being competition machines, the criteria laid out above 
are indicative of motorcycles used solely for competition.
---------------------------------------------------------------------------

    \53\ ``Characterization of Off-Road Motorcycle Use,'' ICF 
Consulting, September 2001, A-2000-1 document II-A-81.
---------------------------------------------------------------------------

    However, we do recognize that it is possible that some competition 
motorcycles will be used for recreational purposes. We are therefore 
adopting a provision within the regulations that allows the Agency to 
deny a manufacturer's claim for exemption from the standards for any 
models, including models that meet the six specified criteria, where 
other information is available that indicates these off-highway 
motorcycle models are not used solely for competition. This same 
provision allows the Agency to deny claims for exemptions in later 
years even if they had been granted previously. Examples of this type 
of information can be state registration data that indicate a 
significant number of competition exempt models being registered to 
operate on public lands. Off-highway competition motorcycles designed 
for motocross competition are not typically required to be registered 
with states, since most motocross competitions occur on closed-circuit 
courses on private, not public land, and motocross machines lack spark 
arresters which are required to operate on public land. We believe the 
possibility of losing an exemption for competition motorcycles will 
encourage manufacturers to take proper actions in promoting, marketing, 
and guaranteeing that competition machines are sold to those 
individuals who will use them solely for competition.
    b. Snowmobiles and ATVs. Snowmobiles and ATVs are also used in 
competition events; however, the percentage of snowmobiles or ATVs used 
solely for competition is not nearly as large as that for off-highway 
motorcycles. Since snowmobile and ATV competition have typically not 
been as popular as off-highway motorcycle competitions, there has not 
been the demand for competition machines that exists with off-highway 
motorcycles. As a result, manufacturers have not manufactured and sold 
directly from their dealers competition snowmobiles and ATVs like they 
have off-highway motorcycles. Most snowmobiles and ATVs used in 
competition events are modified recreational vehicles, rather than 
stock racing machines bought directly from the dealer, as is the case 
with off-highway motorcycles. As a result, there isn't the same concern 
over potential misuse of competition snowmobiles and ATVs for 
recreational purposes.

[[Page 68266]]

    Competition snowmobiles and ATVs aren't currently sold directly at 
the dealership. Therefore, manufacturers can receive a competition 
exemption from EPA for snowmobiles and ATVs meeting all of the 
following criteria: the vehicle or engine may not be displayed for sale 
in any public dealership; sale of the vehicle must be limited to 
professional racers or other qualified racers; and the vehicle must 
have performance characteristics that are substantially superior to 
noncompetitive models.
    As with off-highway motorcycles, snowmobiles and ATVs not meeting 
the applicable criteria listed above 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. We are also adopting the same provision as for off-
highway motorcycles within the regulations that allows the Agency to 
deny a manufacturer's claim for exemption from the standards for any 
models where other information is available that indicates these 
snowmobiles and ATVs models are not used solely for competition. As 
with off-highway motorcycles, this same provision allows the Agency to 
deny claims for exemptions in later years even if they had been granted 
previously.

C. Emission Standards

1. What Are the Emission Standards and Compliance Dates?
    a. Off-highway motorcycles. We are adopting HC plus NOX 
and CO standards for off-highway motorcycles. 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 including NOX in the standard 
serves only to cap NOX emissions for these engines. 
Comparable CO reductions can be expected from both two-stroke and four-
stroke engines, as CO levels are similar for the two engine types. We 
are also adopting averaging, banking and trading provisions for off-
highway motorcycles, as discussed below.
    In the current off-highway motorcycle market, consumers can choose 
between two-stroke and four-stroke models in most sizes. 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 applications. 
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, combined with our own 
baseline emission testing, provides ample data on the emission-control 
capability of four-stroke engines in off-highway motorcycles. 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.
    The emission standards for off-highway motorcycles take effect 
beginning in the 2006 model year. We will allow a 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). Both of these standards are based on 
averaging with a cap on the Family Emission Limit (FEL) of 20 g/km for 
HC+NOX and 50 g/km for CO. Banking and trading provisions 
are also included in the program, as described in Section III.C.2. 
These emission standards 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 are similar to 
those used for many years in highway motorcycle applications, but with 
less overall sophistication for off-highway applications.
    We received comments from several states and environmental groups 
encouraging us to harmonize our off-highway motorcycle standards with 
California. The comments focused on the perceived difference in 
stringency between the two programs. For California, the standard is an 
HC-only standard of 1.2 g/km. Our standard is a HC+NOX 
standard of 2.0 g/km. We believe it is prudent to set a 
HC+NOX standard in lieu of a HC-only standard since the main 
emission-control strategy is expected to be the use of four-stroke 
engines in lieu of two-stroke engines. Two-stroke engines emit 
extremely low levels of NOX. Four-stroke engines, on the 
other hand, have higher NOX emission levels, in the range of 
0.3 g/km on average. This is part of the reason why we proposed a 
somewhat higher numeric standard compared to California.
    The California standards, which were adopted in 1994, were 
stringent enough that manufacturers were unable to certify several 
models of off-highway motorcycles, even some with four-stroke engine 
technology. The result was a substantial shortage of products for 
dealers to sell in California. The shortage led California to change 
their program to allow manufacturers to sell noncompliant off-highway 
motorcycles under some circumstances. As a result, approximately a 
third of the off-highway motorcycles sold in California are compliant 
with the standards. The uncertified models being sold in California 
include both two-stroke and four-stroke machines.
    EPA received comments from dealers and consumers concerned that a 
similar shortage could arise nationwide if EPA adopted the California 
standards. EPA shared this concern and proposed standards that were 
somewhat less stringent than that of California, based on test data 
from high-performance four-stroke machines. We are finalizing this 
approach to ensure the four-stroke technology can be implemented 
broadly across the product line in the 2006 time-frame. Although the 
approach we are finalizing contains somewhat less stringent standards 
than the California program, we believe it will achieve reductions 
beyond that of the California program because more products will be 
certified (even when the competition exemption is taken into account). 
The vast majority of the HC reductions achieved by the program come 
from shifting away from conventional two-stroke engines which have HC 
emissions levels in the range of 35 g/km. The 2.0 g/km standard 
represents about a 95-percent reduction in emissions for these 
vehicles.
    If we were to go beyond this level of reduction, manufacturers 
would need to employ on a widespread basis additional technology that 
presents significant technical issues concerning their application to 
off-highway motorcycles given their extreme usage patterns and issues 
such as safety, packaging, and weight. For example, technologies such 
as electronic fuel injection and secondary air injection raise concerns 
about their durability and reliability in the harsh operating 
environments to which off-highway motorcycles are sometimes exposed.

[[Page 68267]]

The use of catalytic converters poses concerns over packaging, 
durability and safety. Off-highway motorcycles are very light and 
narrow. These attributes are necessary for operating through tight 
forest trails and other harsh conditions. This leaves little room for 
packaging a catalyst so that it won't be damaged from engine vibration, 
shock resulting from jumps and hopping logs, and falling over and 
hitting objects, such as trees and rocks. These technologies may become 
compatible for off-highway motorcycles in the future, but we do not 
believe that it is appropriate to promulgate emission standards based 
on these technologies at this time, given the technical problems 
currently associated with their use. Four-stroke engine technology has 
advanced considerably since the California regulations went into 
effect. Manufacturers are now capable of offering four-stroke engines 
that provide excellent performance. 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. Although the standards we are 
setting are higher than those in California, we believe they will 
require four-stroke engines that are well calibrated for emissions 
control without significantly sacrificing performance. For these 
reasons, we believe the standards we are establishing are appropriate.
    As discussed above in Section III.B.5, the Clean Air Act requires 
us to exempt from emission standards off-highway motorcycles used for 
competition. We expect several competition two-stroke off-highway 
motorcycle models to continue to be available. We are concerned that 
setting standards as stringent as California's would result in a 
performance penalty for some four-stroke engines that would be 
unacceptable to the consumers. This could encourage consumers who want 
performance-oriented off-highway motorcycles to purchase competition 
vehicles (and use them recreationally) in lieu of purchasing compliant 
machines that don't provide the desired performance. We believe that 
our emission standards will allow the continued advancement of four-
stroke technology and properly considers available emission-control 
technology while taking vehicle performance into consideration and 
avoiding significant adverse impacts on performance.
    As proposed, we are also finalizing an option allowing off-highway 
motorcycles with an engine displacement of 50 cc or less to be 
certified using the Small SI emission standards for non-handheld Class 
I engines. These youth-oriented models may not be able to operate over 
the FTP due to the higher speeds of the test cycle. We did not receive 
comment on this provision.
Optional Standards
    During the comment period, we received several comments expressing 
concern that our proposed standard of 2.0 g/km HC+NOX for 
off-highway motorcycles would effectively prohibit the use of two-
stroke engines in non-competition applications. These engines currently 
have typical HC+NOX levels of about 35 g/km. The commenters 
argued that two-stroke engines possess several unique attributes, such 
as high power and light weight, that make two-stroke powered off-
highway motorcycles more desirable to some operators, especially 
smaller, lighter riders, than heavier four-stroke powered off-highway 
motorcycles.
    We also received comments from several states and environmental 
organizations expressing strong concern over the number of competition 
off-highway motorcycles that would be exempt from our regulations as a 
result of our competition exemption. They felt that people purchasing 
exempt competition motorcycles would use them for recreational purposes 
instead of solely for competition.
    One manufacturer indicated that they were planning on building 
high-performance off-highway motorcycles equipped with direct fuel-
injection two-stroke engines that would potentially be capable of 
meeting a HC+NOX standard of 4.0 g/km. To enable use of this 
technology, they suggested that we should adopt a standard of 4.0 g/km 
instead of the proposed standard of 2.0 g/km. The commenter believes 
that direct injection could be used to make clean competition machines 
and also argued that the technology is robust and not as susceptible to 
user modifications as other technologies such as catalysts. The 
commenter wanted an opportunity to develop and certify their product 
because it perceives a benefit to the purchaser not only in performance 
but also in the ability for the owner to resell the competition vehicle 
into the secondary market without concerns about potential misuse. In 
addition, the owner would be able to use the vehicle both for 
competition and recreation.
    It is clear that if manufacturers were able to certify and bring to 
market clean competition machines as described by the commenter, 
significant reductions in emissions would be gained over conventional 
two-stroke technology. Some competition models we tested had baseline 
HC and CO emissions in excess of 50 g/km and 40 g/km, respectively. We 
believe it is appropriate to provide an avenue for the development and 
voluntary certification of clean competition motorcycles. Therefore, we 
are finalizing an optional set of standards for off-highway motorcycles 
of 4.0 g/km HC+NOX and 35.0 g/km CO. For manufacturers to 
utilize this option, however, they must certify all of their models, 
including their competition models, to the optional standards. To 
qualify for this option, a manufacturer must show that ten percent or 
more of their sales would otherwise meet the competition definition.
    The optional standard was derived from the fact that non-
competition four-stroke engines can meet a 2.0 g/km level and 
competition two-stroke machines with advanced direct fuel-injection 
technology could meet a 8.0 g/km level. Since approximately one-third 
of the total off-highway motorcycle fleet are competition machines and 
the other two-thirds would be non-competition four-stroke recreational 
machines, the weighting of the 2.0 g/km level by two-thirds and the 8.0 
g/km level by one-third results in a weighted standard of 4.0 g/km. 
This presumes that emissions from four-stroke engines will not increase 
under this option and that non-competition engines will be almost 
exclusively four-stroke engines. These assumptions are discussed below. 
The significant reductions in otherwise unregulated competition engines 
means that this option should produce even greater overall reductions 
than the base 2.0 g/km standard. We recognize that for some 
manufacturers this program will increase opportunities to make a 
limited number of non-competition recreational two-stroke machines; 
however, we believe that the number of two-stroke non-competition 
engines developed under this program will be limited by the fact that 
the required technology (direct fuel-injection) would be too expensive 
and complex for the recreational motorcycle market. The majority of 
non-competition recreational off-highway motorcycles that use two-
stroke engines are entry-level and youth motorcycles, where cost and 
simplicity are important factors. There is also the fact that for every 
two stroke non-competition engine manufactured under this program, a 
manufacturer must make one less competition engine or must make more 
four-stroke engines. Further, we believe that any increase in the 
number of non-competition two-stroke engines is justified given the 
fact that this program will overall bring levels from off-highway 
engines down

[[Page 68268]]

considerably and the fact that the technology needed to reduce 
emissions from competition machines will only be made available and 
used if, under this optional approach, manufacturers have an incentive 
to use the technologies.
    One major incentive in using this approach is the fact that once 
these machines are certified, a consumer will be able to use these 
machines legally for non-competition uses, which increases the value of 
the competition machines. This approach thus will also reduce the 
incentive for manufacturers to manufacturer all of their two-stroke 
machines as competition machines to avoid regulation, and thus reduce 
the incentive for users to circumvent the regulations. This may mean 
that any increase in two-stroke non-competition engines under this 
approach would not lead to an increase in total two-stroke sales, 
because manufacturers will not have an incentive to increase the number 
of two-stroke competition vehicles to avoid regulation.
    We believe this approach is responsive to all of the above 
comments. It directly addresses the concerns of the manufacturer 
developing the new competition motorcycle and also helps address the 
concerns of users, states, and environmental groups. The successful 
development and certification of clean competition models increases the 
choices for consumers in the marketplace. Offered the option of a 
certified high-performance two-stroke off-highway motorcycle that can 
be used both for competition and recreation, consumers may not feel the 
need to purchase exempt competition motorcycles. This option has the 
potential to significantly decrease the number of conventional two-
stroke competition machines sold under the competition exemption and is 
likely to decrease the potential for misuse of competition machines. 
Conventional competition two-stroke motorcycles generate extremely high 
levels of HC emissions, as noted above. For every conventional two-
stroke competition machine replaced by a certified competition machine, 
HC emissions would be reduced by 80 percent, or more.
    While the 4.0 g/km standard is higher than the 2.0 g/km standard 
contained in the base program, we do not expect any loss in emissions 
reductions from four-stroke models. We continue to believe most off-
highway motorcycles will continue to be powered by four-stroke engines. 
Most non-competition off-highway motorcycles are already four-stroke 
motorcycles, and the trend towards four-stroke is continuing even in 
the absence of these regulations. We are convinced that there will be 
no backsliding of emissions control for motorcycles using four-stroke 
engines, because the dirtiest of the four-stroke models tend to be 
competition machines, and our emissions testing indicates that 
competition four-stroke off-highway motorcycles have HC+NOX 
emission levels below 2.0 g/km. Since these motorcycles are optimized 
for power and racing conditions, there is no incentive for 
manufacturers to increase HC+NOX emissions from their 
current levels. In fact, increasing the emission levels would mean 
increasing the air-to-fuel mixture, which would tend to reduce the 
engines performance.
    As with the primary program, these optional standards would take 
effect in 2006 with 50-percent implementation and full implementation 
in 2007 and manufacturers could switch between the options from model 
year to model year. The HC+NOX standard can be met through 
averaging with some families certified above the standards and some 
below. If averaging is used, the FEL cap would be 8.0 g/km.
    We are retaining the averaging approach for this option because it 
may be a critical flexibility for manufacturers pursuing clean 
competition products. The commenter based its recommendation for a 4.0 
g/km standard on their projections for a single prototype model 
equipped with a medium sized engine. This engine is in the early stages 
of development and there is some uncertainty as to what emissions level 
the final product can achieve. Also, manufacturers may want to apply 
their approach to other engines that may not be able to achieve this 
same level of control. Manufacturers could find that they can produce 
competition products that are very clean relative to the baseline but 
with higher emissions than 4.0 g/km. For example, larger engine sizes 
could have emissions levels somewhat higher than the 4.0 g/km suggested 
by the commenter. We are not satisfied at this time that two-stroke 
off-highway motorcycles, particularly those used in competition could 
meet the 4.0 g/km standard, especially considering the special 
performance needs of competition motorcycles. Therefore, rather than 
keeping a 2.0 g/km standard for four-stroke engines and having a 
standard higher than 4.0 g/km for two-stroke engines (a standard as 
high as 8.0 g/km might be appropriate), we are using a 4.0 g/km 
standard that permits averaging. Averaging provides flexibility for 
manufacturers to bring cleaner two-stroke, particularly cleaner 
competition two-stroke, engines to market without creating a 
disincentive to building four-stroke engines. One way of taking 
advantage of the averaging program in this way would be for a 
manufacturer to maximize its sales of four-stroke models as part of its 
sales mix, and average the emissions from these engines against the 
higher emissions of the two-stroke competition engines which still 
would need to be much cleaner than if they were unregulated. This 
approach therefore requires the substantial use of cleaner four-stroke 
technologies while at the same time encouraging manufacturers to 
substantially reduce emissions from motorcycles that would otherwise be 
unregulated competition motorcycles. We have capped the emissions 
levels at 8.0 g/km HC+NOX because we want to ensure that 
products certified under this option provide large emissions reductions 
compared to baseline levels and that the option provides environmental 
benefits in all cases. Competition motorcycles certified to the 8.0 g/
km level would continue to provide over a 75-percent reduction in HC 
emissions over baseline levels.
    One of the challenges facing manufacturers selecting this option is 
the potentially high CO emissions from competition machines. We tested 
competition models and found CO emissions to be in the range 25 to 50 
g/km. Although this option contains a somewhat higher CO standard (35 
g/km compared to 25 g/km) than the base program, manufacturers are 
still expected to need to control CO emissions through tight engine 
calibrations. We are not including averaging for the less stringent CO 
standard. As noted by the manufacturer supporting the 4.0 g/km option, 
direct injection technology is likely to reduce CO from two-stroke 
engines. We believe that through proper calibration, the 35 g/km 
standard will be achievable and will not significantly impede 
manufacturers in selecting this option.
    b. ATVs. We are adopting HC plus NOX and CO standards 
for 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 including 
NOX in these standards serves only to cap NOX 
emissions for these engines. Comparable CO reductions can be expected 
from both two-stroke and four-stroke engines, as CO levels are similar 
for the two engine types. We are also adopting averaging, banking and 
trading provisions for ATVs, as discussed below.
    In the current ATV market, consumers can choose between two-stroke 
and four-stroke models, although the

[[Page 68269]]

majority, approximately eighty-percent of sales, are four-stroke. Each 
engine type offers unique performance characteristics. Some 
manufacturers specialize in two-stroke or four-stroke models, but most 
manufacturers offer a mix of models. The HC standard is likely to be a 
primary determining factor for which 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. 
Certification results from California ARB's emission-control program 
for ATVs, combined with our own baseline emission testing, provides 
ample data on the emission-control capability of four-stroke engines in 
ATVs.
    In the proposal we included two phases of ATV standards. The first 
phase of standards, 2.0 g/km HC+NOX and 25 g/km CO, was 
proposed to be phased in at 50 percent of production in 2006 with the 
remainder phased-in for 2007. We proposed a second set of standards 
that included a more stringent 1.0 g/km HC+NOX standard with 
no change to the CO standards. It was to be met in 2009/2010 using the 
same 50-percent and 100-percent phase-in scheme as Phase 1. We proposed 
that both phases of HC+NOX standards could be met through 
averaging.
    We received comments from several environmental groups stating that 
we should harmonize our Phase 1 standards with the California FTP-based 
standards. Manufacturers did not comment on the level of our proposed 
Phase 1 HC+NOX standards. However, in a letter sent to the 
Agency in August 6, 2001, just before we published the proposal, the 
Motorcycle Industry Council stated that the most cost-effective 
approach to setting standards for ATVs would be to adopt the California 
HC standards of 1.2 g/km. They did comment on the fact that almost all 
of the CO nonattainment areas identified in the Draft Regulatory 
Support Document are now in compliance and that ATV activity is 
typically so far removed from congested urban areas, that we should 
delete the proposed CO standard.\54\ Manufacturers stated generally 
that CO standards will make it more difficult to meet the 
HC+NOX standards but did not provide additional specific 
comments on the feasibility or costs of the CO level proposed. In 
subsequent meetings with manufacturers, they suggested that if we were 
not going to delete the CO standard, it should be set sufficiently high 
so that it would not be an impediment to meeting the HC+NOX 
standard. They suggested a level of 50.0 g/km.
---------------------------------------------------------------------------

    \54\ We respond to these comments in Section II of the Summary 
and Analysis of Comments.
---------------------------------------------------------------------------

    We have decided to finalize only one set of HC+NOX 
emission standards for the 2006 model year that are essentially 
equivalent to the California standard. The emission standards for ATVs 
take effect beginning in the 2006 model year. We will allow a 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 Class I FTP test cycle. For HC+NOX 
emissions, the standard is 1.5 g/km (2.4 g/mi). The California program 
has a HC-only standard of 1.2 g/km. We have made the standard 1.5 g/km 
to account for NOX emissions. For CO emissions, we agree 
with manufacturers that CO standards can make it more difficult to meet 
the HC+NOX standard. Based on our emission test data, we 
feel that a standard of 35.0 g/km (56.4 g/mi) is more appropriate than 
the 25.0 g/km standard we proposed or the 50.0 g/km standard suggested 
by the manufacturers. A standard of 35.0 g/km will still result in an 
overall reduction in CO emissions from high emitting ATVs, but will 
also allow manufacturers to balance CO control with the need to meet 
stringent NOX levels. The HC+NOX standard may be 
met through averaging. Banking and trading provisions for 
HC+NOX are also being included in the program, as discussed 
in C.2., below.
    Our decision to finalize a 1.5 g/km value rather than the 2.0 g/km 
value is consistent with the manufacturers technical capability in the 
2006/2007 time-frame. The 1.5 g/km HC+NOX and 35 g/km CO 
standards require the use of engine technology changes and add-on 
devices such as secondary air systems, which are clearly available for 
ATV application in this time frame. We proposed a 1.0 g/km 
HC+NOX standard for a 2009/2010 phase-in which could require 
use of catalytic converter technology in many models of ATVs. As 
discussed below, we are not finalizing that proposal now, and thus find 
it appropriate to finalize more stringent Phase 1 standards which are 
technologically feasible and otherwise consistent with statutory 
criteria related to cost, safety, noise, and energy considerations.
    Aligning our emission standards with those currently in place in 
California allows us to set requirements to introduce the low-emission 
technologies for substantial emission reductions with reasonable lead 
time and will for the most part allow manufacturers to sell one model 
in all fifty states. This ``harmonization'' between federal and 
California requirements is valued by industry because it allows the 
development and production of one emission-control technology per 
model/family. However, in a few cases, we expect emissions reductions 
under the EPA program that go beyond that of the California program 
because California allows the sale of uncertified ATVs, including two-
stroke models, under their red sticker provisions. With the exception 
of competition exempt ATVs, all ATV models subject to the EPA program 
will need to be certified. We expect manufacturers to meet these 
standards using four-stroke engines with some modifications to fuel-
system calibrations and some limited use of secondary air systems. 
These systems are similar to those used for many years in highway 
applications, but will likely require lesser sophistication than used 
in highway motorcycle applications.
    In addition to being consistent with the California standards, we 
feel the 1.5 g/km HC+NOX standard is more appropriate than 
the proposed 2.0 g/km standard because our testing has shown that 
emission levels from four-stroke ATVs can vary considerably. We stated 
in the proposed rule that a standard of 2.0 g/km HC+NOX 
would be a four-stroke enforcing standard, which would most likely 
result in the elimination of any two-stroke engines, but not 
necessarily require any additional control from the four-stroke 
engines. As stated above, a standard of 1.5 g/km HC+NOX will 
require the use of engine technology changes and add-on devices such as 
secondary air systems, which are clearly available for ATV application 
in this time frame.
    At this point, we do not believe it is appropriate to promulgate 
Phase 2 standards. In the proposal, we projected significant use of 
secondary air systems and catalysts for meeting the Phase 2 standards. 
Since that time, we have been conducting testing on ATVs with the type 
of catalysts and secondary air systems we envisioned for the Phase 2 
standards to demonstrate feasibility. However, the testing we have done 
to date has not been sufficient to reach an affirmative conclusion on 
the feasibility of the Phase 2 standards. Testing with secondary air 
systems and catalysts have not shown consistent results and we have had 
only partial success in demonstrating the feasibility of the proposed 
Phase 2 standards using these technologies. In testing on a utility-
type ATV, these technologies have provided only small emissions 
reductions.\55\ The

[[Page 68270]]

results of our preliminary testing are discussed further in Section 
III.F and in the Final Regulatory Support Document. It is unclear if 
the level of technology we projected in the proposal would be 
sufficient to meet the Phase 2 standards. We have not done enough 
research or testing on other potential technologies, such as electronic 
or direct fuel injection, to finalize a decision based on these 
technologies. We plan to continue to evaluate the technologies that 
would be needed to meet the Phase 2 levels and determine if those 
levels can be met with the level of technology we projected in the 
proposal or with other technology. We also received comments that we 
underestimated costs for Phase 2 and we will continue to evaluate costs 
as well.
---------------------------------------------------------------------------

    \55\ Utility-type ATVs, it should be noted, are not the same as 
utility vehicles. Utility vehicles are not considered ATVs due to 
fundamental differences in the vehicle characteristics. Most utility 
vehicles are currently regulated by the Small SI program, with a 
small subset of utility vehicles required by the Final Rule to meet 
ATV standards. See section III.B.3. above, for a complete discussion 
of utility vehicles. When we say utility-type ATV, we are referring 
to ATVs that have features that are work related such as cargo 
racks. These ATVs are often somewhat larger and bulkier than sport 
models and may have transmissions geared more for work related tasks 
rather than for high performance. However, they have ATV features 
such as four low pressure tires, a seat designed to be straddled by 
the operator, handlebars for steering controls, and are intended for 
use by a single operator. These vehicle must meet ATV requirements.
---------------------------------------------------------------------------

    In addition, we received comments that the emissions inventories we 
projected for ATVs were too large, and that if we adjusted them 
appropriately, we would see that Phase 2 was not needed. This is 
provided in detail in the public docket.\56\ We have studied and 
evaluated in-depth the new and additional information provided by the 
commenters after we published the proposal. As is shown in our revised 
analysis, the emissions inventory projections for ATVs have been 
reduced by more than 75 percent in response to the significant new 
information we received after publishing the proposal. Our analysis of 
the appropriate standards for 2006/2007 described above was made using 
this new information, and future analysis of Phase 2 standards would 
also use these revised inventory numbers. However, it is important to 
note that the revised inventories still show that these vehicles 
contribute to nonattainment.
---------------------------------------------------------------------------

    \56\ Comments of the Motorcycle Industry Council, Inc., and the 
Specialty Vehicle Institute of America on the Notice of Proposed 
Rulemaking to Establish Mandatory Emission Standards for Nonroad 
Large Spark-Ignition Engines and Recreational Engines (Marine and 
Land-Based), Air Docket A-2000-01, IV-D-214.
---------------------------------------------------------------------------

Engine-based Standards
    California allows ATVs to be optionally tested using the California 
ARB utility engine test cycle (SAE J1088) and procedures. In 
California, manufacturers using the J1088 engine test cycle option must 
meet the California Small Off-Road Engine emission standards. Some 
manufacturers do not have chassis testing facilities and at the time 
California finalized its program were concerned about the cost of doing 
FTP testing for California-only requirements. To use this option, 
manufacturers were required by California 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. Although a good 
correlation was not found between the two test cycles, California 
allowed this option because the goal of their program was to encourage 
four-stroke engine technology in ATVs.
    As described above, we are finalizing standards based on vehicle 
testing over the FTP that are essentially harmonized with the 
California FTP standards. We did not propose a permanent option of 
engine testing using J1088 due to strong concerns that the test cycle 
misses substantial portions of ATV operation because it contains test 
points at only one engine speed. We understand that vehicle testing 
would be a significant change for manufacturers who currently conduct 
emissions testing on the engine rather than the vehicle for California. 
Due to the costs and lead-time requirements associated with switching 
to vehicle-based testing, we proposed a transitional program to allow 
the J1088 option for models years 2006 through 2008. To facilitate the 
phase-in of ATV standards, we proposed to allow manufacturers to 
optionally certify ATVs using the California utility cycle and 
standards, shown in Table III.C-1, instead of the FTP standards.

      Table III.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)
------------------------------------------------------------------------

    We are finalizing this approach, but will eliminate the J1088 
option (including both the test cycle and the utility engine emission 
standards) for certification in model year 2009. The last model year to 
use the J1088 cycle and emission standards is 2008. We received 
comments that the FTP is also not representative of ATV operation and 
that the J1088 option should remain available until a new test cycle 
and accompanying standards can be developed and made available to 
manufacturers. Although it may not be completely representative of ATV 
operation, we believe the FTP to be greatly superior to the J1088 test 
cycle because the cycle is transient, emissions are measured at a 
variety of speeds and it is more likely to result in robust emission-
control designs that reduce emissions in-use. We continue to be very 
concerned that the vast majority of ATV operation is missed with the 
J1088 test because the engine is tested at only one engine speed. ATV 
operation is inherently transient in nature because the user controls 
the throttle position to vary vehicle speed. We believe the J1088 test 
is not sufficient to ensure robust emissions control development and 
use for ATVs. Given the choice of available test procedures for the 
long-term, we could not justify retaining the J1088 option.
    For small displacement ATVs of 70 cc or less, we proposed that they 
would have the permanent option to certify to the proposed FTP-based 
ATV standards discussed above or meet the Phase 1 Small SI emission 
standards for non-handheld Class 1 engines. These standards are 16.1 g/
kW-hr HC+NOX and 610 g/kW-hr CO. Manufacturers argued that 
ATVs with engine displacements between 70 cc and 99 cc also should be 
allowed to certify to the Small SI standards, since the differences 
between a 70 cc and 99 cc engine is very small and the ATVs equipped 
with 99

[[Page 68271]]

cc engines face the same obstacles with the FTP test cycle as the 70 cc 
and below ATVs. They also argued that the Phase 1 Small SI standards 
are too stringent for these engines and recommended that EPA adopt the 
Phase 2 standards for Class 1B engines of 40 g/kW-hr for 
HC+NOX and 610 g/kW-hr for CO.
    We recognize that the vast majority of engine families, including 
4-stroke engines, below 100 cc are not certified to the California 
standards, which is an indication to us that the standards proposed may 
not be feasible for most engines in this size range given the lead time 
provided. However, manufacturers did not provide supporting data and we 
do not have data to confirm that the level recommended by the 
manufacturers would result in an appropriate level of control. We 
examined the 2002 model year certification data for non-handheld Small 
SI engines certified to the Phase 2 Class I-A and I-B engine standards 
(engines below 100 cc). We found that the five engine families 
certified to these standards had average emissions for 
HC+NOX of about 25 g/kW-hr. All of these engine families had 
CO emissions below 500 g/kW-hr and well below the 610 g/kW-hr level 
recommended by manufacturers. We believe these levels are more 
representative of the levels that can be achieved with the lead time 
provided through the use of 4-stroke engines than the standards 
recommended by the manufacturers. Therefore, we are finalizing a 25.0 
g/kW-hr HC+NOX standard and a 500 g/kW-hr CO standard for 
ATVs with engine displacements of 99 cc or less. These standards will 
be optional to the FTP-based standards and, unlike the J-1088 standards 
option for larger displacement engines, the option will not expire. We 
are retaining averaging for the HC+NOX standard but do not 
believe averaging would be appropriate for the CO standard. This is 
consistent with the approach outlined above for J-1088 standards for 
engines above 100 cc.
    The ATV standards are phased in at 50% of a manufacturer's 
production in 2006 and 100% in 2007. This phase-in applies to a 
manufacturer's overall ATV production regardless engine size or which 
option a manufacturer chooses for standards for particular models.
New Test Procedure for ATVs
    We are comfortable with retaining the FTP as the basis of the long-
term ATV program. However, EPA understands the manufacturers' concerns 
regarding the additional facility costs associated with FTP testing for 
ATVs. We also recognize that this approach is a significant deviation 
from their current practice in the California program. Throughout the 
development of the final rule, we have met with manufacturers and the 
State of California and have discussed the possibility of developing a 
new test cycle for ATVs. We intend to work further with all interested 
parties to determine whether a new test cycle and accompanying 
standards is appropriate. The standards, if developed for the new test 
cycle, would be of equivalent stringency to the FTP standards discussed 
above. If we do propose a new test cycle and accompanying standards for 
ATVs, it is likely that we would do so in concert with a decision on 
whether a second phase of standards is appropriate for ATVs. We are now 
developing a Memorandum of Understanding with manufacturers which 
describes in detail the steps that will be taken in furtherance of this 
task.\57\ Other interested parties including the state of California 
will also be invited to participate in this process.
---------------------------------------------------------------------------

    \57\ See item IV-G-114, docket A-2000-01.
---------------------------------------------------------------------------

    By finalizing the temporary availability of J1088, we are providing 
time to develop, and if appropriate, finalize and implement an 
alternative to the FTP that meets both the needs of the Agency, 
manufacturers and other parties. This allows for our program to remain 
harmonized with California during the transition to the new test 
procedure. However, we do not support allowing the use of J1088 for a 
period any longer than necessary to make this transition. We expect 
that developing a new test cycle will be relatively straightforward and 
that the MOU process cited above will provide a road map of how we will 
proceed. We expect to initiate this effort next year and conclude the 
work on the new test cycle in enough time to promulgate it through 
rulemaking and to provide industry adequate lead time to implement it 
in an orderly manner (nominally three years lead time). If we encounter 
unforeseen and unavoidable delays or complications in this process, we 
will consider extending the J1088 temporarily as part of our process of 
adopting changes to the ATV test cycle through rulemaking. We would 
expect such an extension to be at most for one model year.
    c. Snowmobiles. We are adopting CO and HC emission standards for 
snowmobiles, effective in three phases, as discussed below. As 
discussed below, we are also adopting an emissions averaging banking 
and trading program for snowmobiles which includes provisions for the 
early generation of credits prior to the effective date of the 
standards. We are not adopting PM standards for snowmobiles at this 
time, because limits on HC emissions will serve to simultaneously 
reduce PM and because there are significant complications in accurately 
measuring PM that make requiring PM standards difficult in this time 
frame. Finally, we are not adopting limits for NOX for the 
first two phases of standards, but manufacturers are required to 
measure NOX emissions and report them in the application for 
certification. However, we have included NOX in the Phase 3 
standards to effectively cap NOX emissions from snowmobiles.
    The three phases of standards we are adopting will require 
progressively broader application of advanced technologies such as 
direct injection two-stroke technology, and four stroke engines. Only 
about two percent of current snowmobile production utilizes these 
advanced technologies. We expect that about seven percent of new 
snowmobiles will have them by 2005. With the Phase 1 standards we 
expect that ten percent of snowmobiles will require advanced 
technologies (in addition to less advanced emissions controls on most 
other snowmobiles). We project that the Phase 2 and Phase 3 standards 
will require the application of advanced technology on 50 and 70 
percent of new snowmobiles, respectively.
Phase 1 Standards
    We are adopting Phase 1 standards largely as proposed for 
snowmobiles to take effect for all models starting in the 2006 model 
year. However, given that the manufacturers will effectively have only 
three years to design and certify snowmobiles prior to the 2006 model 
year, as well as the fact that snowmobiles are currently unregulated, 
we believe that requiring 100 percent of models to certify in 2006 is 
not reasonable. Thus, we are including a phase in of the Phase 1 
standards with 50 percent of sales required to comply with the 30 
percent reduction standards in 2006 and 100 percent compliance required 
in 2007. The standards of 275 g/kW-hr (205 g/hp-hr) for CO and 100 g/
kW-hr (75 g/hp-hr) for HC are to be met on average by each 
manufacturer. As described in the proposal, these standards represent a 
30-percent reduction from the baseline CO and HC emission rates for 
uncontrolled snowmobiles. We expect manufacturers to meet these 
standards using a variety of technologies and strategies across their 
product lines. For the reasons

[[Page 68272]]

described below, we believe these are the most stringent standards 
feasible beginning in the 2006 model year.
    Snowmobiles pose some unique challenges 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, to address performance 
considerations. The desire for low weight has been stated to be a 
concern, since weight (and weight distribution) affects handling and 
operators occasionally have to drag their sleds out of deep snow. This 
has especially been mentioned as a concern in the context of four-
stroke engines given that they are heavier than their two-stroke 
counterparts of similar power. However, four-stroke engines have 
significantly better fuel economy than two-stroke engines, and for 
identical fuel tank sizes, would have significantly greater range. This 
of course would be a positive attribute. The size of a fuel tank on a 
four-stroke powered snowmobile could be reduced to provide similar 
range to that of a similarly powered two-stroke snowmobile, resulting 
in offsetting weight savings from both the smaller fuel tank and less 
fuel on board. However, this could still represent a change in the 
distribution of weight compared to current sleds.
    The approach used to control emissions in compliance with the Phase 
1 standards will vary according to a given manufacturers product line, 
technological capability, long term plans, and other factors. However, 
we expect all manufacturers to pursue a mix of technologies. Some 
manufacturers may focus more on clean carburetion and associated engine 
modifications and apply those widely across their entire product line 
with more limited implementation of advanced technology such as four-
stroke and semi direct injection engines. Others may choose to be more 
aggressive in applying advanced technologies in their more expensive, 
high-performance sleds and be less aggressive in pursuing emission 
reductions from their lower-priced offerings to optimize the fit of 
different technologies (and their associated costs) to the various 
product offerings in the near term. As can be seen on their 
websites\58\, all large manufacturers now have limited product 
offerings of advanced emissions technology snowmobiles. Snowmobiles 
must, on average and according to the phase in schedule, meet the first 
phase of emission standards beginning with the 2006 model year. Given 
the relative inexperience this industry has with designing effective 
snowmobile engines with advanced emissions controls and in certifying 
to EPA requirements, it is unlikely that any manufacturer could market 
enough of these advanced snowmobiles for model year 2006 to enable it 
to meet significantly more stringent standards. Due to the unique 
performance requirements for snowmobiles and the relatively short lead 
time to modify current engines or design new products, we believe our 
2006/2007 standards will be technologically challenging for 
manufacturers and will result in cleaner snowmobiles.
---------------------------------------------------------------------------

    \58\ http://www.arcticcat.com, http://www.polarisindustries.com, 
http://www.skidoo.com, and http://www.yamaha-motor.com.
---------------------------------------------------------------------------

Phase 2 and Phase 3 Standards
    We believe the two most viable advanced technologies for use in 
snowmobiles are two-stroke direct (or semi-direct) injection technology 
and four-stroke engines. All four major snowmobile manufacturers either 
currently offer or are planning to offer in the next year or two one or 
more of these technologies on a limited number of snowmobile models. 
With sufficient resources and lead time for manufacturers, we believe 
it would be technologically possible to eventually apply such advanced 
technology broadly across most or all of the snowmobile fleet.
    Manufacturers have indicated that with enough investment and 
sufficient time to design and implement direct injection technology for 
snowmobile use, two-stroke engines equipped with direct fuel injection 
systems can reduce HC emissions by 70 to 75 percent and reduce CO 
emissions by 50 to 70 percent. These projections are based largely on 
laboratory prototypes and generally do not account for in-use 
deterioration or the need for production compliance margins in the 
ultimate certification levels. Certification results for 2002 model 
year outboard engines and personal water craft support these 
projections.\59\
---------------------------------------------------------------------------

    \59\ See the snowmobile feasibility discussion in the Final 
Regulatory Support Document.
---------------------------------------------------------------------------

    In addition to the direct injection two-stroke, a few four-stroke 
models are currently available, and more are expected to be introduced 
in the next few years. Based on testing of prototypes and other low-
hour engines it appears that advanced four-stroke snowmobiles are 
capable of HC reductions ranging from 70 to 95 percent relative to 
current technology two-stroke snowmobile engines. However, CO 
reductions from four stroke engines vary quite a bit. For four-stroke 
engines used in low-power applications, CO reductions of 50 to 80 
percent from baseline levels have been reported. However, the majority 
of the snowmobile market is for higher-powered performance machines, 
and CO reductions from higher powered four stroke engines are lower 
than those from low powered four strokes, with expected reductions of 
20 to 50 percent from baseline levels. As discussed further in the RSD 
and Summary and Analysis of Comments document, we expect that many of 
the four-stroke snowmobile models offered in the future will not be 
current two-stroke models which have been modified to utilize a four-
stroke engine, but rather new models designed specifically to take 
advantage of the unique characteristics of four-stroke engines. Thus, 
we expect that the lead time associated with the conversion to four-
stroke engines and optimized sleds is even longer than that needed for 
conversion to direct injection two-stroke technology.
    It is not obvious to us that either of these advanced technologies 
is better than the other or more suited to broad application in the 
snowmobile market. Each has its strong points regarding emissions 
performance, power, noise, cost, etc. For example, two-stroke engines 
equipped with direct fuel injection have the potential to have greater 
CO emission reductions than a comparably powered four-stroke engine, 
although they would have less HC reductions. For those applications 
where a light, powerful, compact engine is desired, a direct injection 
two-stroke engine may be preferred. However, for applications where 
pure power and speed is desired, a high-performance four-stroke engine 
may be preferred. Given the broad range of snowmobile model designs and 
applications it is apparent that one of these technologies could be 
preferable to the other in some situations. Further, given the broad 
range of snowmobile types offered, a mix of advanced technologies would 
provide the best opportunity for substantial average emission 
reductions while still maintaining customer satisfaction across the 
entire range of snowmobile types. Thus, we believe it is most 
appropriate to set emission standards for snowmobiles that are not 
based entirely on the use of either direct injection two-stroke 
technology or four-stroke engines, but rather a mix of the

[[Page 68273]]

two, along with some other technologies in certain applications.
    It is our belief that with sufficient resources and lead time, 
manufacturers can successfully implement technologies such as two-
stroke direct injection and four-stroke engines in many models in their 
respective snowmobile fleets. The question at hand is how broadly this 
technology can be practically applied across the snowmobile fleet in 
the near term, taking into account factors such as the number of engine 
and snowmobile models currently available, and the capacity of the 
industry to perform the research and development efforts required to 
optimally apply advanced technology to each of these models.
    Currently there are only four major snowmobile manufacturers, and 
each has different technological capabilities. Of these four, only two 
currently manufacturer all of their own engines, one has limited in-
house engine manufacturing operations, the other has none. Beyond this, 
there are only two advanced technologies (direct injection two-stroke, 
and four stroke) that at this time appear to be feasible to provide 
significant reductions in snowmobile emissions. Further, given the 
small volume of snowmobile sales compared to other vehicles and 
equipment which use similar sized engines, these manufacturers may have 
difficulty in working with their engine suppliers to develop and 
optimize four-stroke or direct injection two-stroke technology quickly. 
Clearly, the nature of the relationship between these snowmobile 
manufacturers and their suppliers would result in a less efficient use 
of available lead time as compared to the manufacturers that have both 
technology and engine manufacturing available in-house. Thus, there is 
varying capability within the snowmobile industry to develop and 
implement advanced technology in the next five to ten years.
    The amount of engine redesign or development work is another 
factor. While one snowmobile manufacturer currently offers four 
different engine models, the other three, including the two that do not 
manufacture their own engines, currently offer eight to twelve engine 
models each. Additionally, each of these engine models typically goes 
into more than one type of snowmobile. There are a variety of basic 
snowmobile types specifically designed for a variety of riding styles 
and terrains including high-performance trail riding, high-performance 
off-trail riding (including designs specifically for deep snow), 
mountain riding, touring (two person snowmobiles designed for use on 
groomed trails), and entry level snowmobiles (lower-powered and lower 
priced snowmobiles which utilize simpler technology and are 
specifically designed to appeal to first time buyers). Some snowmobile 
manufacturers also offer snowmobile models specifically for youth, and 
utility models for work in cold climates or to facilitate winter sports 
such as hauling winter camping gear, or hunting and fishing equipment. 
It is not surprising that some of these snowmobile models are much more 
popular than others. Thus, there can be quite a difference in the 
production volumes of the different snowmobile types, with performance 
models typically having large sales volumes, and more unique models 
such as utility and youth models selling far fewer units.
    Considering the number of snowmobile types, and the fact that each 
engine model is typically used in several different snowmobile models, 
each manufacturer has potentially dozens of different engine/snowmobile 
combinations that it offers. An analysis of the manufacturers current 
product offerings shows that while one manufacturer has only about 
twelve unique engine/snowmobile model combinations, the other three 
offer significantly more--from around 30 to over 50. Each of these 
different snowmobile models is designed with specific power needs in 
mind, with the engine and clutching specifically suited for the 
application style for which the snowmobile was intended. This means 
that a given engine model may require slightly different calibrations 
for each different snowmobile model in which it is used. While the 
advanced technologies are known, they are not ``one size fits all'' 
technologies. These technologies need to be optimized not only for the 
specific engine model, but in some cases for the snowmobile the engine 
will be used in as well, as just described.
    For all of the reasons just discussed, we believe that it is 
necessary to allow two additional years of lead time for compliance 
with the proposed Phase 2 standards, and are therefore adopting the 
ultimate phase of snowmobile standards effective for the 2012 model 
year rather than the 2010 model year as proposed. However, we expect 
that between the 2006 and 2012 model years there can and will be 
substantial development and application of advanced technologies on 
snowmobiles beyond that required in compliance with the Phase 1 
standards. We believe that it is important to capture the emission 
benefits that these advances present, and are therefore adopting a new 
set of Phase 2 standards, effective with the 2010 model year, which 
will require 50 percent HC reductions and 30 percent CO reductions from 
average baseline levels. The Phase 2 standards are 275 g/kW-hr (205 g/
hp-hr) for CO and 75 g/kW-hr (56 g/hp-hr) for HC. These Phase 2 
standards will be followed by Phase 3 standards in 2012 which will 
effectively require the equivalent of 50 percent reductions in both HC 
and CO as compared to average baseline levels.
    We believe that the 2010 and 2012 model years are appropriate for 
the second and third phases of snowmobile standards because they allow 
an additional four to six years beyond the Phase 1 standards for the 
further development and application of advanced emissions control 
technology. We expect that the manufacturers will utilize some level of 
advanced technology in compliance with the Phase 1 standards, and this 
will give the manufacturers some time to evaluate how the advanced 
technology they have already applied works in the field as well as give 
them several years to work with the certification and compliance 
programs before more stringent Phase 2 standards take effect in 2010. 
We believe that by the 2010/2012 time frame manufacturers could, at 
least in theory, apply advanced technology across essentially their 
entire product lines. However, the manufacturers are resource 
constrained, and they will need to focus their efforts on compliance 
with the Phase 1 and Phase 2 standards prior to the 2010 model year. 
There is a need for significant technology development and 
manufacturing learning to occur, and there is concern that in this time 
frame such technology could not be performance, emissions, and safety 
optimized for each application given the number of engine and 
snowmobile model combinations that would require optimization. This 
would be especially challenging for those manufacturers who rely on 
outside suppliers for their engines. Rather, we expect that by the 2012 
model year the manufacturers could both apply and optimize advanced 
technology to their larger volume families while applying clean 
carburetion and electronic fuel injection technology to the rest of 
their production. Under this scenario we expect that the manufacturers 
could apply optimized advanced technology on around 50 percent of their 
production by the 2010 model year, and an additional 20 percent of 
their production by the 2012 model year. We do not believe that having 
only two

[[Page 68274]]

years lead time between the Phase 2 and Phase 3 standards presents any 
problems because compliance with the Phase 3 standards will be achieved 
through the broader application of technologies which will already be 
applied in compliance with the Phase 2 standards, rather than through 
the introduction of new technologies altogether.
    As was previously discussed, four-stroke technology has the 
potential to significantly reduce HC emissions, even below levels 
expected from direct injection two-stroke technology. However, higher 
powered four-stroke engines are not currently capable of CO reductions 
on the order of those expected from direct injection two-stroke 
technology. This is significant given that a very large segment of the 
snowmobile market is in higher powered performance sleds. We are 
concerned that a straight 50 percent reduction in CO in the Phase 3 
standards may deter technology development and constrain the use of 
four-stroke technology in this key portion of the snowmobile market. As 
the emissions standards become more stringent we believe that it is 
important to provide additional flexibility to assure compliance in a 
manner which minimizes costs and is consistent with the availability of 
technology and the realities of the snowmobile marketplace. Thus, to 
allow snowmobile manufacturers the flexibility to base their future 
product lines on higher percentages of four-stroke models, we are 
adopting a flexible Phase 3 standards scheme that will allow 
manufacturers to certify their production to levels which nominally 
represent 50 percent reductions in HC and CO. This overall reduction 
could be met by other combinations summing to 100 percent such as 70 
percent reductions in HC and 30 percent reductions in CO, or any level 
between these two points (for example, 60 percent reductions in HC and 
40 percent reductions in CO). However, in no case may a manufacturer's 
corporate average for the individual pollutants for Phase 3 be less 
than 50 percent on HC and 30 percent on CO (the Phase 2 standards).
    Some manufacturers have raised safety concerns regarding the use of 
advanced technologies on snowmobiles, particularly four-stroke engines 
used in high-performance and mountain sleds. In particular, they raised 
issues regarding weight and the ability to start the snowmobile in cold 
weather. However, we believe these issues can be overcome with 
sufficient time and technology. For example, as noted above, smaller 
fuel tanks can significantly reduce the weight of four-stroke 
snowmobiles. The use of new light-weight materials can also reduce 
weight for four-stroke designs. Manufacturers have raised concerns over 
cold starting for four-stroke engines because the typical four-stroke 
design uses an oil distribution system where the pump and oil are 
located in the crankcase (referred to as a ``wet'' sump). During 
extremely cold temperatures, the oil becomes thick and provides an 
additional load the engine must overcome when starting. However, by 
using a ``dry'' sump, where the oil and pump are located in a separate 
tank (not in the crankcase), the concern over cold temperature starting 
loads due to thickened oil in the crankcase are gone. The new Yamaha 
RX-1 four-stroke snowmobile uses a smaller fuel tank and lighter 
materials to reduce weight and a dry sump to help cold starting, so 
clearly these issues can be addressed.
    We believe that, given enough resources and lead time, it is 
ultimately feasible at some point beyond the 2012 model year to apply 
advanced technology successfully to all snowmobiles and perhaps to even 
resolve current design and operating issues with regard to the use of 
aftertreatment devices such as catalytic converters. However, it is 
difficult to predict at this point when this would be feasible, 
especially given the number of smaller volume snowmobile models that 
would need development effort once the larger volume models were 
optimized in compliance with the Phase 3 standards in 2012. We did 
consider standards based on the full application of optimized advanced 
technology to all snowmobiles, for example by setting the Phase 3 
standards at a level that would require the full application of 
advanced technology to all snowmobiles. However, we believe that such 
standards are not feasible by 2012 and, we are not confident that we 
could choose the appropriate model year beyond 2012 for such standards 
given how far in the future such a requirement would be. Such an 
approach would also serve to eliminate the benefits associated with the 
Phase 3 standards in 2012. There are diverse capabilities and limiting 
factors within the industry, and time is needed for an orderly 
development and prove out of this advanced technology across the 
various models and applications before standards are set which require 
its use in all models. Additionally, as these engines have never 
previously been regulated or used advanced emission control 
technologies in large numbers, we believe it is appropriate to monitor 
the development and use of such technologies on snowmobiles before 
requiring these technologies for the entire fleet. Thus, we chose not 
to set standards at this time based on the optimized application of 
advanced technology to all snowmobiles. Nevertheless, we will monitor 
the development and application of the advanced technology as 
manufacturers work to comply with the Phase 3 standards in 2012 and 
will consider a fourth phase of snowmobile standards to take effect 
sometime after the 2012 model year.
    We have not included a NOX standard for the first two 
phases of the snowmobile regulations because NOX emissions 
from snowmobiles, particularly two-stroke engines, are very small 
compared to levels of HC, CO and PM and we believe that stringent 
NOX standards may require the use of technologies that will 
lead to increases in HC, PM and CO levels. Technologies that reduce 
NOX are likely to increase levels of HC, PM and CO and vice 
versa, because technologies to reduce HC, PM and CO emissions would 
result in leaner operation. A lean air and fuel mixture causes 
NOX emissions to increase. These increases are minor, 
however, compared to the reductions of HC, CO and PM that result from 
these techniques. On the other hand, any attempt to control the 
NOX emissions may have the counter-effect of increasing HC, 
CO, and PM emissions, as well as causing the greater secondary PM 
concentrations associated with increased HC emissions. This is 
especially critical for HC and PM, because NOX would be 
regulated primarily for its effect on secondary PM levels.
    We are promulgating a NOX standard (actually an HC plus 
NOX standard) as part of the third phase of the snowmobile 
standards. This standard will essentially cap NOX emissions 
from these engines. The reason we are including such standards in the 
final phase of the rule as that the third phase of the rule will result 
in increases in the use of four-stroke engines. While four-stroke 
engines greatly reduce HC and direct PM levels, they increase levels of 
NOX. While NOX levels remain substantially lower 
than HC and CO levels, they are higher than levels for two-stroke 
engines.
    Thus, it is appropriate to place a cap on such levels to ensure 
that levels do not become so high as to become a substantial concern.
    While we are promulgating an effective cap on such emissions, the 
standard will not mandate substantial reductions in NOX. 
This is because the

[[Page 68275]]

emissions effect on reducing NOX from four-stroke engines is 
the same as for two-stroke engines; that is, technologies that 
substantially reduce NOX will increase levels of other 
pollutants of concern. The only way to reduce NOX emissions 
from four-stroke engines (at the same time as reducing HC and CO 
levels) would be to use a three-way catalytic converter. We don't have 
enough information at this time on the durability or safety 
implications of using a three-way catalyst with a four-stroke engine in 
snowmobile applications. Three-way catalyst technology is well beyond 
the technology reviewed for this rule and would need substantial 
additional review before being contemplated for snowmobiles. Thus, 
given the overwhelming level of HC and CO compared to NOX, 
and the secondary PM expected to result from these levels, it would be 
premature and possibly counterproductive to require substantial 
NOX reductions from snowmobiles at this time.
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 engine families for a particular 
manufacturer's production must be at or below that level of the 
applicable emission standards. We are adopting separate emission-credit 
programs for snowmobiles, off-highway motorcycles, and ATVs. We are 
adopting an emission-credit program for the optional ATV engine-based 
standards as well as the chassis-based standards.
    In addition to the averaging program just described, the 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 adopting 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. 
To generate credits, the engine family's emissions level must be below 
the standard, so any credits will result from reducing emissions more 
than necessary to meet the standards.
ATVs and Off-highway Motorcycles
    Emission credits from off-highway motorcycle and ATVs will be 
averaged separately because there are differing degrees of stringency 
in the standards for ATVs and off-highway motorcycles long-term and we 
do not want off-highway motorcycle credits to dilute the effectiveness 
of the ATV standards. This also avoids providing an advantage in the 
market to companies that offer both types of products over those that 
produce only one type. Also, ATVs certified to the chassis-based 
standards or engine-based standards are 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. For the engine-based (J-1088) ATV standards, 
the standards vary by engine size (less than 100 cc, 100 cc up to 225 
cc, and 225 cc and greater). We are allowing averaging, banking, and 
trading for each of the separate engine-based HC+NOX 
standards with no credit exchanges or averaging between the engine size 
categories.
    We did not propose an averaging, banking, and trading program for 
CO for ATVs and off-highway motorcycles because it was not clear if 
such provisions would be needed to implement the expected technologies 
or if the need would warrant the additional complexity of an averaging 
program. We received comments that the 25 g/km CO standard could be 
technologically limiting in some instances. Manufacturers recommended 
that EPA drop CO the standard from the program and provided no comments 
regarding CO averaging. In addition, our recent testing indicates that 
the level of the standards may represent a significant technological 
challenge to the manufacturers in some cases.
    We are retaining CO standards in the final program, and are 
establishing different CO standards for off-highway motorcycles and 
ATVs, as discussed in Section III.C.1. For ATVs, we are addressing the 
feasibility issues by finalizing a standard of 35 g/km. We are not 
including averaging or a credits program at this level. We are also 
adopting the 35 g/km CO standard for the optional off-highway 
motorcycle program with no averaging or credits program. At the 35 g/km 
level, we believe averaging is unnecessary and would greatly reduce the 
need to control CO, especially for larger manufacturers who have 
several engine families with which to average. The engine-based (J-
1088) standards for CO also do not represent levels of stringency where 
we believe averaging would be appropriate or necessary. California 
certification test data shows that the engine-based (J-1088) CO 
standards can be achieved with reasonable compliance margins.
    For the primary off-highway motorcycle program, we are retaining 
the proposed 25 g/km CO standard. We are providing the option of 
averaging for the 25 g/km CO standard, to help manufacturers balance 
the need to control CO while meeting stringent NOX 
requirements. We believe that the final program with averaging for CO 
will enable manufacturers to develop a unified emission-control 
strategy to control HC, NOX, and CO, rather than requiring 
them to develop unique control strategies driven by the need to meet 
the CO standards.
    We are adopting FEL caps where we are allowing averaging standards. 
For ATVs certified to the 1.5 g/km FTP standard, there will be an FEL 
cap of 20 g/km HC+NOX. This cap will also apply to off-
highway motorcycles certified to the 2.0 g/km NOX+HC 
standard. For off-highway motorcycles certified to the 25 g/km CO 
standard, the CO cap will be 50 g/km. For off-highway motorcycles, we 
are also finalizing an option that allows manufacturers to certify to 
an average HC+NOX standard of 4.0 g/km, if the manufacturer 
certifies all off-highway motorcycles including competition machines. 
Under this option, we are limiting FELs to 8.0 g/km. The goal of the 
option is to encourage the development and certification of clean 
competition products. Without a reasonable FEL limit, manufacturers 
could certify two-stroke machines at, or close to, baseline levels. 
This is a concern because the majority of manufacturers' product 
offerings are likely to be certified below the 4.0 g/km level and 
significant credits could be available. We believe the 8.0 g/km limit 
ensures significantly cleaner products compared to baseline levels for 
competition machines, while providing manufacturers with the incentive 
and flexibility to pursue innovative technologies for their competition 
products.
    As noted above, we have also included engine-based J-1088 standards 
for ATVs. The HC+NOX portion of the J-1088 standards can be 
met through averaging and we have included reasonable emissions caps 
for these standards as well. For engines certified to the permanent 
optional J-1088 standards for ATV engines below 100 cc, the emissions 
cap is 40.0 g/kW-hr.

[[Page 68276]]

The NOX+HC emissions cap is 32.2 g/kW-hr for engine 
certified to the temporary J-1088 standards which are available for all 
engine sizes.
Snowmobiles
    For snowmobiles, we are adopting an emissions averaging and credit 
program for all three phases of standards. Averaging is available for 
each phase of standards. Once the program begins in 2006, manufacturers 
will make a demonstration of compliance with the applicable corporate 
average standards at the end of the model year. If a manufacturer has 
achieved a corporate average level below the corporate average 
standards, then the manufacturer may bank credits. Manufacturers may 
bank credits for use in a current phase of standards based on the 
difference between their corporate average and the standards. In order 
to bank credits for future use under a subsequent phase of standards, 
manufacturers may pull engines from their corporate average for the 
current phase of standards and certify them early to a future phase of 
standards. The credits must be generated based on the difference 
between the FEL for those engines and the phase of standards for which 
they are intended to be used. The credits may not be carried forward 
for use to meet a subsequent phase of standards.
    For example, manufacturers may bank Phase 2 credits in 2007 by 
removing engines from their 2007 corporate average for one or both 
pollutants and certifying the engines to the Phase 2 standards early. 
These Phase 2 credits may then be saved for Phase 2, but may not be 
used for Phase 3. Manufacturers may also remove only part of an engine 
family for purposes of banking credits. Manufacturers may bank credits 
after the end of the model year when they have completed their 
demonstration of compliance for that year. The Final Rule includes 
provisions for banking credits for a single pollutant, with the other 
pollutant remaining in the averaging program for the current model 
year. For Phase 3, if a manufacturer chooses to bank credits for only 
one pollutant, the manufacturer must use an assigned value for the 
other pollutant in the Phase 3 standards formula. We are specifying a 
value of 90 g/kW-hr for HC+NOX and 275 g/kW-hr for CO. These 
levels ensure no windfall credits using the Phase 3 formula for the 
credit-generating engines.
    Starting with Phase 3, Family Emission Limits may be set up to 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. These caps ensure a minimum level 
of control for each snowmobile certified under the long-term program. 
We believe 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 proposed that these limits would be effective 
beginning in 2006. We received comments from manufacturers recommending 
that we drop the FEL limits because they would create a tremendous near 
term workload burden. They commented that manufacturers would need to 
modify all product lines for 2006 just to meet the FEL limit. EPA 
recognizes that this could be a significant issue in the early years of 
the program and could detract from manufacturers' efforts to develop 
much cleaner technologies. Thus, we are finalizing the FEL limits only 
for Phase 3 and later, beginning in 2012. We believe this helps resolve 
the lead-time and workload issues while maintaining the integrity of 
the long-term program.
    b. Early credits. We believe that allowing manufacturers to 
generate credits prior to 2006 has some merit in that it encourages 
them to produce cleaner snowmobiles earlier than they otherwise might 
and provides early environmental benefits. It would also allow for a 
smoother transition to new emission standards in a previously 
unregulated industry. However, in the proposal we expressed concern 
that an early-credit program could result in the generation of windfall 
credits, especially if the credits were generated relative to the 
average baseline emissions rates. A manufacturer could choose those 
engine families that already emit below the average baseline levels and 
certify those families for credit generation purposes without doing 
anything to actually reduce their emissions. Clearly this would 
undermine any environmental advantages of an early-credit program. 
However, we believe that it is possible to design an early-credit 
program which provides incentive for the early introduction of cleaner 
snowmobiles and also helps ease the transition into the first ever 
phase of snowmobile standards while preventing the generation of 
windfall credits. The early-credit program described in the following 
paragraphs will be available beginning with the 2003 model year. As 
with the standard snowmobile emissions averaging, banking and trading 
program, credits generated under the early-credit program will be 
calculated on a power-weighted basis.
    A manufacturer can choose to certify one or more engine families 
early for purposes of credit generation. An engine family must at least 
meet the Phase 1 standards for both HC and CO to qualify for early 
credits, and the credits will be calculated based on the difference 
between the certification FEL and the Phase 1 standards. Credits 
generated under this option can be used only in compliance with the 
Phase 1 standards. Thus, such early credits will expire at the end of 
the 2009 model year.
    The above discussion of early credits primarily addresses those 
snowmobiles that will meet the Phase 1 standards early. However, we 
also expect that there will be some engine families introduced prior to 
the 2006 model year which could meet Phase 2 standards. For such 
engines, a manufacturer may elect to split credits between Phase 1 and 
Phase 2. A manufacturer may save credits generated between the 
certification FELs and the actual Phase 2 standards for use in Phase 2. 
Credits generated between the Phase 1 and Phase 2 standards could be 
used for Phase 1 only. Credits generated prior to the start of the 
program in 2006 may not be used for Phase 3.
    EPA did not receive comments on such programs for off-highway 
motorcycle or ATVs and we are not finalizing any additional provisions. 
The majority of products currently offered for sale are equipped with 
four-stroke engines which raises concerns over the potential for 
windfall credits. Due to this issue and the lack of suggestions or 
input on the part of commenters, we are not finalizing early credits or 
other types of flexibilities for these programs.
    c. Nonconformance penalties for recreational vehicles. Section 
206(g) of the Act, 42 U.S.C. 7525(g), authorizes EPA to establish 
nonconformance penalties (NCPs) for motorcycles and heavy-duty engines 
which exceed the applicable emission standard, provided that their 
emissions do not exceed an appropriate upper limit. NCPs allow 
manufacturers that are technological laggards to temporarily sell their 
vehicles by payment of a penalty, rather than being forced out of the 
marketplace. One manufacturer suggested that we consider establishing 
NCPs for recreational vehicles. Section 213(d) of the Act makes nonroad 
standards subject to the provisions of section 206, and directs EPA to 
enforce nonroad standards in the same manner as highway vehicles. We 
therefore believe that the Act authorizes us to establish NCPs in 
appropriate circumstances for nonroad engines and vehicles. 
Recreational vehicles are

[[Page 68277]]

similar technologically to highway motorcycles, and NCPs might be 
appropriate for recreational vehicles under certain circumstances.
    We will consider the need for NCPs two or three years before 
compliance with these standards is required. Manufacturers that 
determine in that time frame that they are likely to be unable to 
comply with the standards should notify us. If we determine that NCPs 
are appropriate for recreational vehicles, we would establish 
regulations that would specify how to calculate the penalties. While we 
have not determined the content of such regulations, it is likely that 
they would be similar to our existing NCP regulations for heavy-duty 
engines, which are set forth in 40 CFR part 86, subpart L.
3. Are There Voluntary Low-Emission Standards for These Engines?
    In the proposal we included a Voluntary Low-Emission Standards 
program for recreational vehicles. We did this for two reasons: to 
encourage new emission-control technology and to aid the consumer in 
choosing clean technologies. We received numerous comments on this 
proposed program. The environmental community was supportive of 
voluntary standards and encouraged us to adopt permanent labels which 
identify the emission performance of the vehicle in a simplistic manner 
that would be easily understood by the initial purchaser and any 
purchases of used recreational vehicles. Manufacturers of recreational 
vehicles ATVs, off-highway motorcycles, and snowmobiles), on the other 
hand, did not support voluntary standards. They were supportive of 
providing initial purchasers with emission performance information via 
temporary consumer labeling, but were opposed to voluntary standards. 
Their concern was that voluntary standards or permanent labels could be 
used by federal, state, local or any other jurisdictions to limit the 
use of recreational vehicles from public lands by allowing access only 
to recreational vehicles that meet certain emission criteria. 
Manufacturers further argued that our proposed mandatory emission 
standards were stringent enough that they would encourage and result in 
the use of advanced emission-control technology and that the voluntary 
standards would provide no additional incentives.
    As stated above, 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.\60\ For all three recreational vehicle categories, but 
especially for snowmobiles, we are expecting a variety of emission-
control technologies to be used to meet the standards. In all three 
categories we expect consumers to have a choice of which technologies 
to purchase and that they will base that purchase on an understanding 
of key attributes such as cost, performance, noise levels, safety, and 
emissions. Thus, an important factor for informing consumer decision is 
to provide them information on the relative emissions attributes of a 
given model. We believe this can be achieved through a temporary 
consumer labeling program without voluntary standards. Therefore, we 
are not finalizing a voluntary standard program for recreational 
vehicles at this time. We will consider this issue again in the future, 
once experience is gained under this program. In addition, given the 
manufacturer's opposition, it is not clear that voluntary standards by 
themselves would be an effective incentive for manufacturers.
---------------------------------------------------------------------------

    \60\ 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.
---------------------------------------------------------------------------

    Instead, we will be adopting a consumer labeling program. A label 
must be fixed securely to the product prior to arriving at the 
dealership but does not have to be permanent and may be removed by the 
consumer when placed into use. The label can be in the form of a 
removable sticker or decal, or a hang tag affixed to the handlebars or 
fuel cap. If a hang tag is used, it must be attached by a cable tie 
that cannot be easily removed, except by the ultimate retail consumer. 
The label, at a minimum, must include the following information: U.S. 
EPA; Clean Air Index (appropriate pollutant, e.g., HC+NOX, 
etc.); manufacturer name; vehicle model with engine description (e.g., 
500 cc two-stroke with direct fuel injection); emission performance 
rating scale; explanation of scale; and notice stating that label must 
be on vehicle prior to sale and can be removed only by the ultimate 
retail consumer. In section 1051.135(g) of the regulations, titled 
``How must I label and identify the vehicles I produce?,'' we have 
developed several equations that determine what the emission 
performance rating scale will be for each category. The scale is based 
on a rating system of 1.0 through 10.0. A value of 1.0 would be 
assigned for the cleanest vehicle, while the dirtiest vehicle would get 
a rating of 10.0.
4. What Durability Provisions Apply?
    We are adopting several additional provisions to ensure that 
emission controls will be effective throughout the life of the vehicle. 
This section discusses these provisions for recreational vehicles. More 
general certification and compliance provisions, which apply across 
different vehicle categories, are discussed in Sections II and VII, 
respectively.
    a. How long do my engines have to comply. Manufacturers must 
produce off-highway motorcycle and ATV engines that comply over a 
useful life of 5 years or until the vehicle accumulates 10,000 
kilometers, or for ATVs 1,000 hours, whichever occurs first. We 
consider the 10,000-kilometer and 1,000 hour values to be minimum 
values for useful life, with the requirement that manufacturers must 
comply for a longer period if the average life of their vehicles is 
longer than this minimum value.
    The values being finalized will harmonize EPA's useful life 
intervals with those contained in the California program. We proposed a 
significantly longer useful life intervals of 30,000 kilometers based 
on our understanding of usage rates for the vehicles at the time of the 
proposal. We received comments from manufacturers that we overestimated 
vehicle usage and commenters recommended that we harmonize the useful 
life intervals with California's. We have lowered our estimate of usage 
rates based on available data, including new data provided during the 
comment period.
    Based on our current estimates of usage, we concur with 
manufacturers that harmonization with California is the best approach 
for establishing minimum useful life intervals. Generally, this will 
allow the same emission test data to be used for certification under 
both programs. However, this remains the minimum useful life and longer 
useful life intervals could be required in cases where the basic 
mechanical warranty of the engine or the advertised operating life is 
longer than the minimum interval. Average service life information will 
help in making such a determination. The manufacturer can alternatively 
base the longer useful life on the average service life of the vehicles 
where necessary data are available.
    For snowmobiles, the minimum useful life is 5 years, 8,000 km, or 
400 hours of operation, whichever occurs first. We based these values 
on

[[Page 68278]]

discussions with manufacturers regarding typical snowmobile life, and 
on emission-modeling data regarding typical snowmobile usage rates.\61\ 
As with ATVs and off-highway motorcycles, longer useful life intervals 
are required where the basic mechanical warranty of the engine or the 
advertised operating life is longer than the minimum interval and the 
manufacturer may alternatively base the longer useful life on the 
average service life of the vehicles where necessary data are 
available.
---------------------------------------------------------------------------

    \61\ EPA memorandum, ``Emission Modeling for Recreational 
Vehicles,'' from Linc Wehrly to Docket A-2000-01, November 13, 2000 
(document II-B-19).
---------------------------------------------------------------------------

    b. What are the minimum warranty periods for emission controls. For 
off-highway motorcycle, ATVs, and snowmobiles, manufacturers must 
provide an emission-related warranty for at least half of the minimum 
useful life period. These periods could 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. See Sec.  1051.120 for a description of which components 
are emission-related.
    We have included in our final rule an optional set of standards for 
off-highway motorcycles that would require the certification of 
competition motorcycles. However, for those individual vehicles 
actually used in organized competition events, it may be appropriate to 
exclude competition motorcycles from warranty coverage. Machines used 
in competition, even part of the time, may be subject to usage that can 
cause premature degradation of the engine and related components. 
Competition riders may place a premium on winning at the expense of 
engine durability or could otherwise damage the vehicle during the 
competition events. In fact, most manufacturers do not offer any 
mechanical warranty on vehicles used in competition. In addition, 
motorcycles used only for competition may be modified by the user in 
ways that alter the emissions characteristics of the vehicle.\62\ We do 
not believe it is reasonable to hold manufacturers responsible for the 
emission warranty for such vehicles.
---------------------------------------------------------------------------

    \62\ While it is possible that the user could make modifications 
to their competition off-highway motorcycle that alter the emissions 
characteristics of the vehicle, we do not expect tampering to be a 
problem for those competition vehicles certifying to our voluntary 
standard of 4.0 g/km HC+NOX because the technologies 
required to meet this standard, four-stroke engines and direct fuel 
injection two-stroke engines, are inherent to the engine and will be 
optimized for maximum engine performance as well as emissions 
performance. Thus, any modifications would actually reduce rather 
than improve engine performance.
---------------------------------------------------------------------------

    c. How do I demonstrate emission durability during certification. 
Durability demonstration for off-highway motorcycles, ATVs, and 
snowmobiles includes a requirement to run the engines long enough to 
develop and justify the full life deterioration factor. This allows 
manufacturers to generate a deterioration factor that helps ensure that 
the engines will continue to control emissions over a lifetime of 
operation. Snowmobiles also must run out to the end of the useful life 
for purposes of durability demonstration and generating deterioration 
factors.
    d. What maintenance is allowed during service accumulation. For 
vehicles certified to the minimum useful life, emission-related 
maintenance is generally not allowed during service accumulation. The 
only maintenance that may be done must be (1) regularly scheduled, (2) 
unrelated to emissions, and (3) technologically necessary. This 
typically includes changing engine oil, oil filter, fuel filter, and 
air filter.
5. Do These Standards Apply to Alternative-Fueled Engines?
    These 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 adopting extensive special provisions to 
address them at this time.
6. Is EPA Controlling Crankcase Emissions?
    We are requiring that new off-highway motorcycles and ATVs not emit 
crankcase vapors directly to the atmosphere. This requirement will 
phase in beginning in 2006 and be fully phased in by 2007. California's 
regulations for off-highway motorcycles and ATVs, which has been in 
effect since 1997, also prohibits the venting of crankcase vapors into 
the atmosphere. The major ATV manufacturers sell many of their 
California certified ATV models federally as 50-state applications. 
Thus, many ATVs sold federally already control crankcase emissions. The 
only exceptions could be some of the small youth ATV models that are 
imported from Asia.
    The typical control strategy used to control crankcase emissions is 
to route the crankcase vapors back to the engine intake. This is 
consistent with our previous regulation of crankcase emissions from 
such diverse sources as highway motorcycles, outboard and personal 
water craft 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.\63\
---------------------------------------------------------------------------

    \63\ ``Closed Crankcase Exhaust Emissions from Four-Stoke 
Competition Off-highway Motorcycle,'' EPA memo from L. Wehrly to 
Docket A-2000-01, September 10, 2001 (document II-B-25).
---------------------------------------------------------------------------

    New snowmobiles must also have closed crankcases, beginning in 
2006. This requirement is relevant only 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 Final Regulatory Support Document.

D. Testing Requirements

1. What Duty Cycles Are Used To Measure Emissions?
    Testing a vehicle or engine for emissions typically consists of 
exercising it over 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 testing off-highway 
motorcycles and ATVs, we specify the current highway motorcycle test 
procedure be used for measuring emissions. The highway motorcycle test 
procedure is very similar to the 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 LA-4 (Los Angeles Driving Cycle 4). 
The UDDS is a chassis dynamometer driving cycle that consists of 
numerous ``hills''

[[Page 68279]]

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.
    For highway motorcycles, we have 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 the more 
aggressive ``hills.'' We proposed to use this same class/cycle 
distinction for off-highway motorcycles and ATVs. In other words, we 
proposed that off-highway motorcycles and ATVs with an engine 
displacement at or below 169 cc would be tested over the FTP test cycle 
for Class I highway motorcycles. We proposed that 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. We requested comment on the appropriateness of 
allowing the use of the Class I test cycle for all ATVs.
    Manufacturers have expressed concerns over the appropriateness of 
testing ATVs using the FTP and the ability of some ATVs to be run on 
the test cycle. Manufacturers recommended for FTP testing, that all 
ATVs be tested over the Class I cycle. Manufacturers stated that the 
Class I cycle top speed of 36 mph would be ``much more representative'' 
of ATV operation than the 57 mph top speed of the Class III cycle. 
Manufacturers also noted that California FTP testing is based on the 
use of the Class I cycle for all ATVs and that the EPA program would 
need to be changed allow for harmonization. Manufacturers did not raise 
these same concern for off-highway motorcycles which are tested in 
accordance with the highway motorcycle classifications for California.
    After considering this issue further, we concur with the 
manufacturer's comments and are finalizing the Class I cycle for all 
ATVs. One of the objectives of the final program is to allow 
harmonization with California and this change is fundamental in the 
manufacturers' ability to use the same FTP test data for both programs. 
Also, the average speeds of in-use ATVs appear to be significantly 
lower than we estimated in the analysis for the proposal (8-13 mph 
compared to 20 mph). The new data on ATV usage alleviates concerns that 
the lower speeds of the Class I test cycle might miss significant high-
speed ATV operation. The change in the test procedure is directionally 
consistent with this new data. In addition, the change in test 
procedure will enable ATVs in general to be tested over the FTP with 
fewer issues concerning the ability of the vehicles to operate over the 
driving cycle. We are finalizing the test procedure requirements as 
proposed for off-highway motorcycles. We believe that the 
manufacturer's concerns regarding the FTP are also addressed by the 
option to test the smallest ATVs (up to 100 cc) to J-1088 standards 
permanently. These vehicles are typically governed to top speeds below 
the 36 mph contained in the Class I FTP cycle. Also, the small 
displacement ATVs may be most strenuously tested (i.e., more operation 
at high loads) on the FTP due to their lower horsepower output.
    We acknowledge that chassis dynamometers for ATVs could be costly 
to purchase and difficult to put in place in the near term, especially 
for smaller manufacturers. As discussed in Section III.C.1.b, we are 
allowing the use of the J1088 engine test cycle as a transitional 
option through model year 2008. The J1088 option expires after 2008 and 
the FTP becomes the required test cycle in 2009. As noted above, EPA is 
currently in discussions with ATV manufacturers to determine whether a 
new test cycle is appropriate. The J1088 may be discontinued earlier 
than 2009 if another test procedure is implemented.
    b. Snowmobiles. We are adopting the snowmobile duty cycle developed 
by Southwest Research Institute (SwRI) in cooperation with the 
International Snowmobile Manufacturers Association (ISMA) for all 
snowmobile emission testing.\64\ The test procedure consists of two 
main parts; the duty cycle that the snowmobile engine operates 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 
was developed specifically to roughly approximate 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.
---------------------------------------------------------------------------

    \64\ ``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. (Docket 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 III.D-1. This duty 
cycle is the one that was used to generate the baseline emissions 
levels for snowmobiles, and we believe it is the most appropriate for 
demonstrating compliance with the snowmobile emission standards at this 
time.

                                  Table III.D-1.--Snowmobile Engine Test Cycle
----------------------------------------------------------------------------------------------------------------
                                                                            Mode
             Engine parameter              ---------------------------------------------------------------------
                                                  1             2             3             4             5
----------------------------------------------------------------------------------------------------------------
Normalized Speed..........................          1.00          0.85          0.75          0.65       Idle
Normalized Torque.........................          1.00          0.51          0.33          0.19          0.00
Relative Weighting (in percent)...........         12            27            25            31             5
----------------------------------------------------------------------------------------------------------------

    The rest of the testing protocol is largely derived from our 
regulations for marine outboard and personal water craft engines, as 
recommended in the SwRI/ISMA test cycle development work (61 FR 52088, 
October 4, 1996).

[[Page 68280]]

The testing equipment and procedures from that regulation are generally 
appropriate for snowmobiles, including the provisions for raw exhaust 
gas sampling which are being adopted here for snowmobiles.
    Unlike marine engines, however, snowmobiles tend to operate in cold 
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, 
appropriate accounting for typical operating temperatures is important 
to assure that anticipated emissions reductions actually occur in use. 
We proposed 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 
received comments stating that this approach would be expensive due to 
the need for refrigeration equipment, pointing out that the snowmobile 
manufacturers do not currently have the capacity for cold testing. 
Further, we received comments that accurate emissions results can be 
obtained using appropriate jetting determined by extrapolating from the 
manufacturer's jet chart (if necessary).
    We agree that emissions can be accurately measured at higher 
ambient temperatures provided that the proper compensation be made in 
the fueling system. For carbureted engines this means jetting the 
engine appropriately for the test temperature. For electronically 
controlled engines this doesn't tend to be an issue because such 
technology generally includes temperature compensation in its control 
algorithms. However, one manufacturer stated that for snowmobiles that 
have electronically controlled engines, it would be preferable and 
environmentally appropriate to test with colder inlet temperatures. 
Thus, we are adopting the option to allow snowmobile testing using 
either cold engine inlet air temperatures between -15[deg] C and -
5[deg] C (5[deg] F and 23[deg] F) or warm engine inlet air temperatures 
between 20[deg] C and 30[deg] C (68[deg] F and 86[deg] F). However, 
depending on the location of the air box where inlet air enters the 
engine intake system, the inlet temperature could be considerably 
warmer than ambient conditions. For a snowmobile that does not have 
temperature compensating capabilities, it could be possible to get a 
moderate emission reduction due to the increase in air density that 
results at colder temperatures from the artificially induced test inlet 
air. These emission reductions would not occur in real operation since 
actual inlet air would be warmer. Therefore, to use the colder inlet 
temperature option, a manufacturer must demonstrate that for the given 
engine family, the temperature of the inlet air within the air box is 
consistent with the inlet-air temperature test conditions.
2. What Fuels Will Be Used During Exhaust Emission Testing?
    We are adopting fuel specifications as proposed for all 
recreational vehicles that we have specified for 2004 and later light-
duty vehicles.
3. Are There Production-Line Testing Provisions for These Engines?
    Recreational vehicle or engine manufacturers must 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 II.C.4 above. Production-line testing must be performed using 
the same test procedures as for certification testing.

E. Special Compliance Provisions

    As described in Section XI.B, the report of the inter-agency Small 
Business Advocacy Review Panel addresses the concerns of small-volume 
manufacturers of recreational vehicles. We proposed to adopt the 
provisions recommended by the panel and received comments on the 
proposals. We are finalizing the provisions below as proposed, with the 
modifications as noted.
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 emission standards for off-highway 
motorcycles and ATVs will likely necessitate the widespread use of 
four-stroke engines. Most small-volume off-highway motorcycle and ATV 
importers--and to a lesser degree, small-volume manufacturers--
currently use two-stroke engines. While four-stroke engines are common 
in motorcycles and ATVs in general, their adoption by any manufacturer 
is still a significant business challenge. Small manufacturers of these 
engines may 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 may place small manufacturers at a competitive disadvantage 
without specific provisions to address this burden.
    We are applying 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 inter-
agency panel recommended these provisions to address the potentially 
significant adverse effects on small entities of an emission standard 
that may require conversion to four-stroke engines. The 5,000-unit 
threshold is intended to focus these flexibilities on those segments of 
the market where the need 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.\65\ In addition, we are limiting some or all of these 
flexibilities to companies that are in existence or have product sales 
at the time we proposed emission standards 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.
---------------------------------------------------------------------------

    \65\ 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.
---------------------------------------------------------------------------

Snowmobiles
    There are only a few small snowmobile manufacturers and they sell 
only a few hundred sleds a year, which represents less than 0.5 percent 
of total annual production. Therefore, the per-unit cost of regulation 
may 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

[[Page 68281]]

manufacturers may have typically produced engines with unique designs 
or calibrations to serve niche markets (such as mountain riding). The 
new snowmobile emission standards may 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 are adopting a delay of two years 
beyond the date larger businesses must comply to ease the burden for 
small businesses. This will provide extra time to develop technology 
and, in the case of importers, extra time to resolve supplier issues 
that may arise. The two-year delay also applies to the timing of the 
Phase 2 standards for snowmobiles.
    In addition, for small snowmobile manufacturers, the emission 
standards phase in over an additional two years at a rate of 50 
percent, then 100 percent. Phase 1 phases in at 50/50/100 percent in 
2008/2009/2010 and Phase 2 phases in at 50/50/100 percent in 2012/2013/
2014.
    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.
    Small-volume manufacturers may use design-based certification, 
which allows us to issue a certificate to a small business for the 
emission-performance standard based on a demonstration that engines or 
vehicles of a similar design criteria meet the standards of the 
individual engine family. The small vehicle manufacturer must 
demonstrate that their engine uses a design similar to or superior to 
one that is being used by other manufacturers that has been shown 
through prior emission testing to meet the standards. The demonstration 
must be based in part on emission test data from engines of a similar 
design. Under a design-based certification program, a manufacturer 
provides evidence in the application for certification that an engine 
or vehicle meets the applicable standards for its useful life based on 
comparing its design (for example, the use a four-stroke engine, 
advanced fuel injection, or any other particular technology or 
calibration) to that of a previously tested engine. The design criteria 
might 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 submit adequate engineering and other 
information about their individual designs showing that they will meet 
emission standards for the useful life.
    3. Broaden engine families. Small businesses may define their 
engine families more broadly, putting all their models into one engine 
family (or more) for certification purposes. Manufacturers may then 
certify their engines using the ``worst-case'' configuration within the 
family.
    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, 
manufacturers must test a small sampling of production engines to 
ensure that production engines meet emission standards. We are waiving 
production-line testing requirements for small manufacturers. This will 
eliminate or substantially reduce production-line testing requirements 
for small businesses.
    5. Use of assigned deterioration factors for certification. Small 
manufacturers may use deterioration factors assigned by EPA. Rather 
than performing a durability demonstration for each family for 
certification, manufacturers may 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 
might 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 certified to other EPA programs may 
be used in recreational vehicles. For example, there is a large variety 
of engines certified to EPA lawn and garden standards (Small SI). 
Manufacturers of recreational vehicles may use engines certified to any 
other EPA standards for five years. Under this approach, engines 
certified to the Small SI standards may be used in recreational 
vehicles. These engines would then meet the Small SI standards and 
related provisions rather than those adopted in this document for 
recreational vehicles. Small businesses using these engines will not 
have to recertify them, as long as they do not alter the engines in a 
way that might cause it to exceed the emission standards it was 
originally certified to meet. Also, the recreational vehicle 
application may not be the primary intended application for the engine.
    Additionally, a certified snowmobile engine produced by a large 
snowmobile manufacturer may be used by a small snowmobile manufacturer, 
as long as the small manufacturer did not change the engine in a way 
that might cause it to exceed the snowmobile emission standards. This 
provides a reasonable degree of emission control. For example, if a 
manufacturer changed a certified engine only by replacing the stock 
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 would still be eligible for this flexibility option, subject to 
our review. The manufacturer may also change the carburetor to have a 
leaner air-fuel ratio without losing eligibility. The manufacturer in 
such cases could establish a reasonable basis for knowing that 
emissions performance is not negatively affected by the changes. 
However, if the manufacturer changed the bore or stroke of the engine, 
it would no longer qualify, as emissions might increase beyond the 
level of the standard.
    7. Averaging, banking, and trading. For the overall program, we are 
adopting corporate-average emission standards with opportunities for 
banking and trading of emission credits. We 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. Therefore, we are adopting corporate-average emission 
standards with opportunities for banking and trading of emission 
credits for small manufacturers.
    8. Hardship provisions. We are adopting 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 are adopting an additional 
provision to allow a small

[[Page 68282]]

snowmobile manufacturer to petition us for relaxed standards for one or 
more engine families. The manufacturer must 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 may then set an alternative standard at 
a level between the prescribed standard and the baseline level, which 
would likely apply until the engine family is retired or modified in a 
way that might alter emissions. These engines will be excluded from 
averaging calculations. We proposed that this provision be limited to 
300 snowmobiles per year. However, we received comment that this limit 
is too restrictive to be of much assistance to small businesses. Based 
on this comment we are adopting a limit for this provision of 600 
snowmobiles per year.

F. Technological Feasibility of the Standards

1. Off-highway Motorcycles and ATVs
    We believe the new emission standards are technologically feasible 
given the availability of emission-control technologies, 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.\66\ 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 carburetted. Two-stroke 
engines lubricate the piston and crankshaft by mixing oil with the air 
and fuel mixture. This is accomplished by most contemporary two-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 ATVs, 
approximately 80-percent use four-stroke engines while only 55 percent 
of off-highway motorcycles use four-stroke engines. The average HC 
emissions for two-stroke engines are about 35 g/km, while the average 
for four-stroke engines are 1.5 g/km. CO emissions levels are very 
similar between the types of engines with two-stroke levels of 
approximately 34 g/km and four-stroke levels of 30 g/km. 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.
---------------------------------------------------------------------------

    \66\ 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 
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 consists of modifications 
to the base engine, fuel system, cooling system, and recalibration of 
the air and fuel mixture. These changes may include adjusting valve 
timing for four-stroke engines, changing from air-to liquid-cooling, 
and using advanced carburetion techniques or electronic fuel injection 
instead of traditional carburetion systems. Other approaches may 
include 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 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. Using oxidation catalysts with direct injection may reduce 
emissions even further. Finally, converting from two-stroke to four-
stroke engine technology will significantly reduce HC emissions. All of 
these technologies have the capability to reduce HC and CO emissions.
    We expect none of these technologies to negatively affect noise, 
safety, or energy factors. 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. Fuel 
injection, the enleanment of the air and fuel mixture and four-stroke 
technology all can result in significant reductions in fuel 
consumption.
    c. What technologies are most likely to be used to meet emission 
standards?
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.
    Manufacturers of off-highway motorcycles and ATVs utilizing four-
stroke engines will need to make some minor calibration changes and 
improvements to the carburetor to meet emission standards for the 2006 
model year. Some of these modifications may have already been 
incorporated in response to California requirements. The calibration 
changes will most likely consist of reducing the amount of fuel in the 
air-fuel mixture. This is commonly referred to as leaning out 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. Carburetors with tighter tolerances 
ensure more precise flow of fuel and air, resulting in better fuel 
atomization (i.e., smaller fuel droplets), better combustion, and lower 
emissions.
    In addition to converting to four-stroke technology and making some 
minor calibration and carburetion improvements to meet the 2006

[[Page 68283]]

emission standards, manufacturers may need to use secondary air 
injection on some models. 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, commonly referred to as pulse air 
injection. 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 below the standards (further details of our 
secondary air testing are described in the Final Regulatory Support 
Document).
    A small number of models in California have been equipped with 
secondary air technology. It is likely that some manufacturers will opt 
to use secondary air systems to reduce emissions in addition to 
enleanment strategies to meet EPA standards. We believe this may be 
especially true for ATVs meeting the 1.5 g/km HC+NOX 
standard. Using these systems would also provide manufacturers with 
more flexibility within the averaging scheme and would allow them to 
avoid any negative affects on performance that could accompany 
excessive enleanment. Also, several models are not certified to 
California standards, including some four-stroke models. Manufacturers 
may use secondary air on a more widespread basis to bring all models 
into compliance.
    Since the emission standards address HC + NOX, as well 
as 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 allow manufacturers to meet emission standards with no 
significant increase in NOX levels.
Two-Stroke Engines
    Off-highway motorcycles and ATVs using two-stroke engines will 
present a greater challenge for compliance with emission standards. 
Since baseline HC and CO emission levels are so high for two-stroke 
engines, it would be very difficult for any two-stroke engine to meet 
our standards with current production technologies. Although catalysts 
have been used for two-stroke powered mopeds, scooters, and small 
displacement highway motorcycles in Europe and Asia, the standards and 
test cycles are significantly different from ours and there is no way 
to make reasonable comparisons. We have not performed any testing, nor 
are we aware of any emission test data on the use of catalysts on ATV 
and off-highway motorcycle two-stroke engines. Therefore, we do not 
believe that catalysts would be available for two-stroke engines that 
would meet our standards in the time frame necessary to comply with our 
program. Direct fuel injection has been successfully applied to two-
stroke engines used in marine personal water craft, outboard engines, 
and small mopeds and scooters and is just now being looked at for off-
highway motorcycle applications. However, as discussed below, even this 
advanced technology cannot meet our standards alone.
    As described in Section III.C.1.a, we are including an optional 
standard for off-highway motorcycles of 4.0 g/km HC + NOX, 
for manufacturers willing to certify competition motorcycles that would 
otherwise be exempt from emission standards. We received comment from 
REV! Motorcycles in support of this level. Rev! plans to manufacture 
two-stroke off-highway motorcycles equipped with direct injection. 
Based on an early analysis of the technology, REV! requested that EPA 
consider establishing a 4.0 g/km standard to allow them to pursue the 
technology and have a realistic opportunity to meet emission standards. 
According to their comments, they believe that their engines will be 
capable of meeting the 4.0 g/km standard without the use of a catalyst. 
Perhaps most importantly, REV! believes that this is a viable 
technology approach for competition models, which have very high 
baseline emissions.
    REV! shared their plans and emissions projections for a single 
prototype model of competition motorcycle. Production units, additional 
models, or motorcycles produced by other manufacturers using similar 
technologies may not be able to achieve the 4.0 g/km level. The 4.0 g/
km level represents an HC reduction of 90 percent or more from baseline 
levels for some competition motorcycles, which is likely to be very 
challenging. This is one reason EPA is also allowing averaging, 
banking, and trading for this option. Averaging will provide 
flexibility to manufacturers who have some models that, while very 
clean relative to baseline levels, are above the 4.0 g/km standard. 
Manufacturers will be able to use credits, for example, from the sale 
of four-stroke machines with emissions below 4.0 g/km to achieve the 
4.0 g/km standard on average.
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 two-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 400 g/kW-hr (296 g/hp-hr) CO and 150 g/
kW-hr (111 g/hp-hr) HC. There are however, at least two snowmobile 
models that use four-stroke engines. Two companies currently have a 
moderate-powered four-stroke touring model that has very low emissions. 
One sled uses a small advanced automotive engine, while the other uses 
a modified ATV engine. Both engines are very sophisticated, using 
electronic fuel injection and computer-based closed-loop control. The 
other snowmobile manufacturers are planning to release four-stroke 
models for the 2003 model year, but are focusing on higher performing 
models that, according to

[[Page 68284]]

the manufacturers, may not have as good of emissions control as the 
production four-stroke touring models.
    b. What technology approaches are available to control emissions? 
We believe the new emission standards are technologically feasible. A 
variety of technologies are currently available or in stages of 
development to be available for use on two-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 two-stroke 
technologies, converting to four-stroke engines is also feasible. Each 
of these is discussed in the following paragraphs.
    There are several ways to improve carburetion in snowmobile 
engines. First, strategies to improve fuel atomization promote more 
complete combustion of the fuel/air mixture. Additionally, improved 
production tolerances enable more consistent fuel metering. Both of 
these changes allow more accurate control of air-fuel ratios. 
Snowmobile engines are currently calibrated with rich air-fuel ratios 
for durability reasons. Leaner calibrations to CO and HC emissions pose 
a challenge for maintaining engine durability, but many engine 
improvements are available to prevent problems. These include changes 
to the cylinder head, pistons, ports and pipes to reduce knock. In 
addition critical engine components can be made more robust to improve 
durability.
    The same calibration changes to the air-fuel ratio just discussed 
for carbureted engines can also be employed, possibly with more 
accuracy, by using 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 water 
craft engines. We believe these technologies hold promise for 
application to snowmobiles. In fact, one company is offering a 
snowmobile with a semi-direct injection two-stroke engine for the 2003 
model year. 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 
averaging approach and 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, using 
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-stroke engines. Four-stroke engines have a 
lower power-to-displacement ratio than two-stroke engines and are 
heavier. Thus, initially they may be more appropriate for snowmobile 
models where extreme power and acceleration are not the primary selling 
points. Such models include touring and sport trail sleds. However, one 
company has developed a four-stroke engine based off one of their sport 
highway motorcycle engines that produces 150 horsepower and will be 
used in their high-performance snowmobiles in the 2003 model year.
    c. What technologies are most likely to be used to meet emission 
standards?
2006 Standards
    We expect that, in the context of an emissions averaging program, 
manufacturers might choose to take different paths to meet the 2006 
emission standards. We expect manufacturers to use a mix of 
technologies that will include improved carburetion and enleanment 
strategies, combined with engine modifications, the use of direct 
injection, and the use of four-stroke engine technology. For example, 
depending on their emission rates, one scenario for meeting our 
standards could be a mixture of 60 percent using improved carburetion, 
enleanment strategies, and engine modifications, 15 percent using 
direct injection, and another 15 percent using four-stroke engines. 
Manufacturers can expect moderate emission reductions from engine 
modifications and enleanment strategies. Most two-stroke snowmobile 
engines are designed to operate with a rich air and fuel mixture, which 
result in high levels of HC, CO, and PM. By reducing the amount of fuel 
in the air and fuel mixture (i.e., enleanment), these emissions can be 
reduced. Because manufacturers use the extra fuel in the air and fuel 
mixture to help cool the engine, some modifications such as the use of 
more robust materials, may be necessary. Manufacturers have indicated 
to us that direct injection strategies can result in emission 
reductions of 70 to 75 percent for HC and 50 to 70 percent for CO. 
Certification results from 2000 model year outboard engines and 
personal water craft (PWC) support such reductions. 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.
    It appears that the use of four-stroke engines in snowmobiles will 
be more prevalent than we initially anticipated. For the 2003 model 
year, all four of the major snowmobile manufacturers will offer a four-
stroke engine. Two manufacturers have already sold limited quantities 
of their four-stroke snowmobiles in 2002. All of these engines will be 
appearing in at least two different models and in some cases up to 
three or four models. The size and design of these engines is quite 
varied. All of the engines range in size from 650 cc to 1000 cc. There 
are two cylinder and four cylinder engines, fuel injected and 
carbureted, moderate horsepower and high horsepower. Manufacturers have 
indicated that depending on their success, four-stroke engines will 
play a large role in meeting our standards.
2010 Standards
    As with the 2006 standards, we expect that manufacturers will use a 
mix of technologies to meet our 2010 standards. To meet the 2010 
standards, manufacturers will need to employ the use of advanced 
technologies such as direct fuel-injection and four-stroke engines on a 
larger portion of their production. As noted above, manufacturers are 
beginning to introduce these technologies and will be gaining 
experience with them over the next several years. Because we are 
offering manufacturers the option to choose between two sets of 
standards in 2010, the mixture of technologies will be very 
manufacturer and engine family specific. For example, direct injection 
typically reduces CO significantly but does not reduce HC to the same 
extent as four-stroke engines. Engine families that manufacturers 
believe will be most compatible with direct injection technology would 
likely meet the 75 g/kW-hr HC and 200 g/kW-hr CO

[[Page 68285]]

standards. A potential scenario for meeting these standards could be a 
mixture of 50 percent direct injection, 20 percent four-stroke engines, 
and 30 percent with engine modifications. Engine families that 
manufacturers believe will be more compatible with four-stroke 
technology, which typically has superior HC emissions levels but do not 
necessarily have exceptionally good CO performance, will likely meet 
the 45 g/kW-hr HC and 275 g/kw-hr CO standards. Under either option, it 
is possible that manufacturers will continue to sell two-stroke models 
with lesser levels of technology. Manufacturers are likely to reduce 
emissions where possible from at least a portion of the remaining two-
stroke engines through the use of engine modifications, calibration 
optimization, and secondary air systems. In some cases this will be 
necessary just to meet the FEL cap. A potential scenario for meeting 
these standards could be a mixture of 70 percent four-stroke engines, 
10 percent direct fuel injection, and 20 percent with engine 
modifications.

IV. Permeation Emission Control

A. Overview

    In the proposal we specified only exhaust emission controls for 
recreational vehicles. However, several commenters raised the issue of 
control of evaporative emissions related to permeation from fuel tanks 
and fuel hoses. The commenters stated that work done by California ARB 
on permeation emissions from plastic fuel tanks and rubber fuel line 
hoses for various types of nonroad equipment as well as portable 
plastic fuel containers raised a new emissions concern. Our own 
investigation into the hydrocarbon emissions related to permeation of 
fuel tanks and fuel hoses from recreational land-based and marine 
applications supports the concerns raised by the commenters. Therefore, 
on May 1, 2002, we reopened the comment period and requested comment on 
possible approaches to regulating permeation emissions from 
recreational vehicles. As a result of our investigations and the 
comments received, we have determined that it is appropriate to 
promulgate standards regulating permeation emissions from these 
vehicles.
    This section describes the provisions for 40 CFR part 1051, which 
would apply only to recreational vehicle manufacturers. This section 
also discusses test equipment and procedures (for anyone who tests fuel 
tanks and hoses to show they meet emission standards) and general 
compliance provisions.
    We are adopting performance standards intended to reduce permeation 
emissions from recreational vehicles. The standards, which apply to new 
vehicles starting in 2008, are nominally based on manufacturers 
reducing these permeation emissions from new vehicles by about 90 
percent overall.\67\ We also recognize that there are many small 
businesses that manufacture recreational vehicles. We are therefore 
adopting several special compliance provisions to reduce the burden of 
permeation emission regulations on small businesses. These special 
provisions are the same as for the exhaust emission standards, as 
applicable, and are discussed in Section III.E.
---------------------------------------------------------------------------

    \67\ Estimated reductions in permeation are 95 percent when not 
considering competition vehicles, which are exempt from the 
standard.
---------------------------------------------------------------------------

B. Vehicles Covered by This Provision

    We are adopting new permeation emission standards for new off-
highway motorcycles, all-terrain vehicles, and snowmobiles. These 
provisions apply even if the recreational vehicle manufacturer 
exercises the option to use an engine certified under another program 
such as the small spark ignition requirements in 40 CFR part 90. These 
standards would require these vehicle manufacturers to use low 
permeability fuel tanks and hoses. We include vehicles and fuel systems 
that are used in the United States, whether they are made domestically 
or imported.
    Even though snowmobiles do not usually experience year around use, 
as is the case with ATVs and off-highway motorcycles, we are including 
snowmobiles in this standard because it is common practice among 
snowmobile owners to store their snowmobiles in the off-season with 
fuel in the tank (typically half full to full tank). A fuel stabilizer 
is typically added to the fuel to prevent gum, varnish, and rust from 
occurring in the engine as a result of the fuel sitting in the fuel 
tank and fuel system for an extended period of time; however, this does 
not reduce permeation. Thus, snowmobiles experience fuel permeation 
losses just like off-highway motorcycles and ATVs.
    We are extending our basic nonroad exemptions to the engines and 
vehicles covered by this rule. These include the testing exemption, the 
manufacturer-owned exemption, the display exemption, and the national 
security exemption. These exemptions are described in more detail under 
Section VII.C. In addition, vehicles used solely for competition are 
not considered to be nonroad vehicles, so they are exempt from meeting 
the emission standards (but see discussion in Section III.C.1.a 
regarding the voluntary program for certification of all off-highway 
motorcycles).

C. Permeation Emission Standards

1. What Are the Emission Standards and Compliance Dates?
    We are finalizing new standards that will require an 85-percent 
reduction in plastic fuel tank permeation and a 95-percent reduction in 
fuel system hose permeation from new recreational vehicles beginning in 
2008. These standards and their implementation dates are presented in 
Table IV.C-1. Section IV.D presents the test procedures associated with 
these standards. Test temperatures are presented in Table IV.C-1 
because they represent an important parameter in defining the emission 
levels.
    We will base the permeation standards on the inside surface areas 
of the hoses and fuel tanks. We sought comment on whether the potential 
permeation standards for fuel tanks should be expressed as grams per 
gallon of fuel tank capacity per day or as grams per square meter of 
inside surface area per day. Although volume is generally used to 
characterize fuel tank emission rates, we base the standard on inside 
surface area because permeation is a function of surface area. In 
addition, the surface to volume ratio of a fuel tank changes with 
capacity and geometry of the tank. Two similar shaped tanks of 
different volumes or two different shaped tanks of the same volume 
could have different g/gallon/day permeation rates even if they were 
made of the same material and used the same emission-control 
technology. Therefore, we believe that using a g/m\2\/day form of the 
standard more accurately represents the emissions characteristics of a 
fuel tank and minimizes complexity. This approach was supported by the 
commenters.

[[Page 68286]]



                          Table IV.C-1.--Permeation Standards for Recreational Vehicles
----------------------------------------------------------------------------------------------------------------
                                         Implementation
           Emission component                 date                Standard                Test temperature
----------------------------------------------------------------------------------------------------------------
Fuel Tank Permeation...................            2008  1.5 g/m2/day.............  28 [deg]C (82 [deg]F)
Hose Permeation........................            2008  15 g/m2/day..............  23 [deg]C (73 [deg]F)
----------------------------------------------------------------------------------------------------------------

    These standards are revised compared to the values we sought 
comment on in the notice. In the reopening of the comment period, we 
identified the need to accommodate variability and deterioration in 
setting the fuel tank permeation standard. Since the notice, we have 
received test information that suggests that a tank permeation standard 
representing an 85 rather than a 95-percent reduction would fully 
accommodate these factors. Nonetheless, we continue to believe that 
manufacturers will target control technologies and strategies focused 
on achieving reductions of 95 percent in production tanks. With regard 
to the permeation standard for hoses, we have adjusted the standard 
slightly to give the manufacturers more freedom in selecting their hose 
material and to accommodate the fact that we selected a certification 
test fuel based on a 10-percent ethanol blend, which would be prone to 
greater permeation than straight gasoline.
    Cost-effective technologies exist to significantly reduce 
permeation emissions. Because essentially all of these vehicles use 
high density polyethylene (HDPE) fuel tanks, manufacturers would be 
able to choose from several technologies for providing a permeation 
barrier in HDPE tanks. The use of metal fuel tanks would also meet the 
standards, because metal tanks do not experience any permeation losses. 
The hose permeation standard can be met using barrier hose technology 
or through using low permeation automotive-type tubing. These 
technologies are discussed in Section IV.F. The implementation dates 
give manufacturers three to four years to comply. This will allow 
manufacturers time to implement controls in their tanks and hoses in an 
orderly business manner.
2. Will I Be Able to Average, Bank, or Trade Emissions Credits?
    Averaging, banking, and trading (ABT) refers to the generation and 
use of emission credits based on certified emission levels relative to 
the standard. The general ABT concept is discussed in detail in Section 
II.C.3. In many cases, an ABT program can improve technological 
feasibility, provide manufacturers with additional product planning 
flexibility, and reduce costs which allows us to consider emission 
standards with the most appropriate level of stringency and lead time, 
as well as providing an incentive for the early introduction of new 
technology.
    We are finalizing ABT for fuel tanks to facilitate the 
implementation of the standard across a variety of tank designs which 
include differences in wall thickness, tank geometry, material quality, 
and pigment in plastic fuel tanks. To meet the standard on average, 
manufacturers would be able to divide their fuel tanks into different 
emission families and certify each of their emission families to a 
different Family Emissions Level (FEL). The emission families would 
include fuel tanks with similar characteristics, including wall 
thickness, material used (including additives such as pigments, 
plasticizers, and UV inhibitors), and the emission-control strategy 
applied. The FELs would then be weighted by sales volume and fuel tank 
inside surface area to determine the average level across a 
manufacturer's total production. An additional benefit of a corporate-
average approach is that it provides an incentive for developing new 
technology that can be used to achieve even larger emission reductions 
or perhaps to achieve the same reduction at lower costs or to achieve 
some reductions early.
    Any manufacturer could choose to certify each of its evaporative 
emission control families at levels which would meet the standard. Some 
manufacturers may choose this approach as the could see it as less 
complicated to implement.
    We are also finalizing a voluntary program intended to give an 
opportunity for manufacturers to prove out technologies earlier than 
2008. Manufacturers will be able to use permeation control strategies 
early, and even if they do not meet the standard, they can earn credit 
through partial emission reduction that will give them more lead time 
to meet the standard. This program will allow a manufacturer to certify 
fuel tanks early to a less stringent standard and thereby delay the 
fuel tank permeation standard. Therefore, a manufacturer can earn more 
time to meet the 1.5 g/m\2\/day standard if they have an alternative 
approach that will reduce permeation by a lesser amount earlier than 
2008. Specifically, if a manufacturer certifies fuel tanks early to a 
standard of 3.0 g/m\2\/day, they can delay the 1.5 g/m\2\/day standard 
for these fuel tanks by 1 tank-year for every tank-year of early 
certification. As an alternative, this delay could be applied to other 
fuel tanks provided that these tanks have an equal or smaller inside 
surface area and meet a level of 3.0 g/m\2\/day. As an example, suppose 
a manufacturer were to sell 50 vehicles in 2006 and 75 vehicles in 2007 
with fuel tanks that meet a level of 3.0 g/m\2\/day. This manufacturer 
would then be able to sell 125 vehicles with fuel tanks that meet a 
level of 3.0 g/m\2\/day in 2008 and later years. No uncontrolled tanks 
could be sold after 2007. In addition to providing implementation 
flexibility to manufacturers, this option, if used, would result in 
additional and earlier emission reductions.
    For hoses, we do not believe that ABT provisions would result in a 
significant technological benefit to manufacturers. We believe that all 
fuel hoses can meet the permeation standards using straight forward 
technology as discussed in Section IV.F. From EPA's perspective, 
including an ABT program in the rule creates a long-term administrative 
burden that is not worth taking on since it does not provide the 
industry with useful flexibility.
3. How Do I Certify My Products?
    We are finalizing a certification process similar to our existing 
program for other mobile sources. Manufacturers test representative 
prototype designs and submit the emission data along with other 
information to EPA in an application for a Certificate of Conformity. 
As discussed in Section IV.D.3, we will allow manufacturers to certify 
based on either design (for which there is already data) or by 
conducting its own emissions testing. If we approve the application, 
then the manufacturer's Certificate of Conformity allows the 
manufacturer to produce and sell the vehicles described in the 
application in the U.S.
    Manufacturers certify their fuel systems by grouping them into 
emission families that have similar emission characteristics. The 
emission family definition is fundamental to the certification process 
and to a large

[[Page 68287]]

degree determines the amount of testing required for certification. The 
regulations include specific characteristics for grouping emission 
families for each category of tanks and hoses. For fuel tanks, key 
parameters include wall thickness, material used (including additives 
such as pigments, plasticizers, and UV inhibitors), and the emission-
control strategy applied. For hoses, key parameters include material, 
wall thickness, and emission-control strategy applied. To address a 
manufacturer's unique product mix, we may approve using broader or 
narrower engine families. The certification process for vehicle 
permeation is similar as for the process for certifying engines (see 
Section II.C.1).
4. What Durability Provisions Apply?
    We are adopting several additional provisions to ensure that 
emission controls will be effective throughout the life of the vehicle. 
This section discusses these provisions for permeation from 
recreational vehicles. More general certification and compliance 
provisions, which apply across different vehicle categories, are 
discussed in Sections II and VII, respectively.
    a. How long do my vehicles have to comply? Manufacturers would be 
required to build fuel systems that meet the emission standards over 
each vehicle's useful life. For the permeation standards, we use the 
same useful life as discussed in Section III.C.4.a for exhaust 
emissions from recreational vehicle engines based on the belief that 
fuel system components and engines are intended to have the same design 
life. Further, we are applying the same warranty period for permeation 
emission related components of the fuel system as for exhaust emission-
related components of the vehicle (See Section III.C.4.b).
    b. How do I demonstrate emission durability? We are adopting 
several additional provisions to ensure that emission controls will be 
effective throughout the life of the vehicle. Vehicle manufacturers 
must demonstrate that the permeation emission-control strategies will 
last for the useful life of the vehicle. Any deterioration in 
performance would have to be included in the family emissions limit. 
This section discusses durability provisions for fuel tanks and hoses.
    For plastic fuel tanks, we are specifying a preconditioning and 
four durability steps that must be performed in conjunction with the 
permeation testing for certification to the standard. These steps, 
which include fuel soaking, slosh, pressure-vacuum cycling, temperature 
cycling, and ultra-violet light exposure, are described in more detail 
in Section IV.D.1. The purpose of these preconditioning steps is to 
help demonstrate the durability of the fuel tank permeation control 
under conditions that may occur in use. For fuel hoses, the only 
preconditioning step that we are requiring is a fuel soak to ensure 
that the permeation rate is stabilized prior to testing. Data from 
before and after the durability tests would be used to determine 
deterioration factors for the certified fuel tanks. The durability 
factors would be applied to permeation test results to determine the 
certification emission level of the fuel tank at full useful life. The 
manufacturer would still be responsible for ensuring that the fuel tank 
and hose meet the permeation standards throughout the useful life of 
the vehicle.
    We recognize that vehicle manufacturers will likely depend on 
suppliers/vendors for treated tanks and fuel hoses. We believe that, in 
addition to normal business practices, our testing requirements will 
help assure that suppliers/vendors consistently meet the performance 
specifications laid out in the certificate.

D. Testing Requirements

    To obtain a certificate allowing sale of products meeting EPA 
emission standards, manufacturers generally must show compliance with 
such standards through emission testing. The test procedures for 
determining permeation emissions from fuel tanks and hoses on 
recreational vehicles are described below. This section also discusses 
design-based certification as an alternative to performing specific 
testing.
1. What Are the Test Procedures for Measuring Permeation Emissions From 
Fuel Tanks?
    Prior to testing the fuel tanks for permeation emissions, the fuel 
tank must be preconditioned by allowing the tank to sit with fuel in it 
until the hydrocarbon permeation rate has stabilized. Under this step, 
the fuel tank must be filled with a 10-percent ethanol blend in 
gasoline (E10), sealed, and soaked for 20 weeks at a temperature of 28 
+/- 5[deg]C. Once the soak period has ended, the fuel tank is drained, 
refilled with fresh fuel, and sealed. The permeation rate from fuel 
tanks is measured at a temperature of 28 +/- 2[deg]C over a period of 
at least 2 weeks. Consistent with good engineering judgment, a longer 
period may be necessary for an accurate measurement for fuel tanks with 
low permeation rates. Permeation loss is determined by measuring the 
weight of the fuel tank before and after testing and taking the 
difference. Once the mass change is determined it is divided by the 
manufacturer provided tank surface area and the number of days of soak 
to get the emission rate. As an option, permeation may be measured 
using alternative methods that will provide equivalent or better 
accuracy. Such methods include enclosure testing as described in 40 CFR 
part 86. The fuel used for this testing will be a blend of 90-percent 
gasoline and 10-percent ethanol. This fuel is consistent with the test 
fuel used for highway evaporative emission testing.
    To determine permeation emission deterioration factor, we are 
specifying three durability tests: slosh testing, pressure-vacuum 
cycling, and ultra-violet exposure. The purpose of these deterioration 
tests is to help ensure that the technology is durable and the measured 
emissions are representative of in-use permeation rates. For slosh 
testing, the fuel tank is filled to 40-percent capacity with E10 fuel 
and rocked for 1 million cycles. The pressure-vacuum testing contains 
10,000 cycles from -0.5 to 2.0 psi. These two durability tests are 
based on draft recommended SAE practice.\68\ The third durability test 
is intended to assess potential impacts of UV sunlight (0.2 [mu]m--0.4 
[mu]m) on the durability of the surface treatment. In this test, the 
tank must be exposed to a UV light of at least 0.40 W-hr/m2 /min on the 
tank surface for 15 hours per day for 30 days. Alternatively, it can be 
exposed to direct natural sunlight for an equivalent period of time.
---------------------------------------------------------------------------

    \68\ Draft SAE Information Report J1769, ``Test Protocol for 
Evaluation of Long Term Permeation Barrier Durability on Non-
Metallic Fuel Tanks,'' (Docket A-2000-01, document IV-A-24).
---------------------------------------------------------------------------

    We originally sought comment on applying the procedures in 49 CFR 
part 173, appendix B, but upon further evaluation and receipt of 
additional information found these inadequate for our purposes. The 49 
CFR part 173 test procedure is designed for testing plastic receptacles 
for transporting hazardous chemicals. This test focus on temperatures 
and durability procedures that do not represent recreational vehicle 
use.
2. What Are the Test Procedures for Measuring Permeation Emissions From 
Fuel System Hoses?
    The permeation rate of fuel from hoses would be measured at a 
temperature of 23 +/- 2[deg]C using SAE

[[Page 68288]]

method J30\69\ with E10. The hose must be preconditioned with a fuel 
soak to ensure that the permeation rate has stabilized. The fuel to be 
used for this testing would be a blend of 90-percent gasoline and 10-
percent ethanol. This fuel is consistent with the test fuel used for 
highway evaporative emission testing. Alternatively, for purposes of 
submission of data at certification, permeation could be measured using 
alternative equipment and procedures that provide equivalent results. 
To use these alternative methods, manufacturers would have to apply to 
us and demonstrate equivalence. Examples of alternative approaches that 
we anticipate manufacturers may use are the recirculation technique 
described in SAE J1737,\70\ enclosure-type testing such as in 40 CFR 
part 86, or weight loss testing such as described in SAE J1527.\71\
---------------------------------------------------------------------------

    \69\ SAE Recommended Practice J30, ``Fuel and Oil Hoses,'' June 
1998, (Docket A-2000-01, document IV-A-92).
    \70\ SAE Recommended Practice J1737, ``Test Procedure to 
Determine the Hydrocarbon Losses from Fuel Tubes, Hoses, Fittings, 
and Fuel Line Assemblies by Recirculation,''1997, (Docket A-2000-01, 
document, IV-A-34).
    \71\ SAE Recommended Practice J1527, ``Marine Fuel Hoses,''1993, 
(Docket A-2000-01, document IV-A-19).
---------------------------------------------------------------------------

3. Can I Certify Based on Engineering Design Rather Than Through 
Testing?
    In general, test data would be required to certify fuel tanks and 
hoses to the permeation standards. Test data could be carried over from 
year to year for a given emission-control design. We do not believe the 
cost of testing tanks and hose designs for permeation would be 
burdensome especially given that the data could be carried over from 
year to year, and that there is a good possibility that the broad 
emission family concepts would lead to minimum testing. However, there 
are some specific cases where we would allow certification based on 
design. These special cases are discussed below.
    We would consider a metal fuel tank to meet the design criteria for 
a low permeation fuel tank because fuel does not permeate through 
metal. However, we would not consider this design to be any more 
effective than any other low permeation fuel tank for the purposes of 
any sort of credit program. Although metal is impermeable, seals and 
gaskets used on the fuel tank may not be. The design criteria for the 
seals and gaskets would be that either they would not have a total 
exposed surface area exceeding 1000 mm\2\, or the seals and gaskets 
would have to be made of a material with a permeation rate of 10 g/
m\2\/day or less at 23[deg]C as measured under ASTM D814.\72\ A metal 
fuel tank with seals that meet this design criteria would readily pass 
the standard.
---------------------------------------------------------------------------

    \72\ ASTM Standard Test Method D 814-95 (Reapproved 2000), 
``Rubber Property--Vapor Transmission of Volatile Liquids,'' (Docket 
A-2000-01, document IV-A-95).
---------------------------------------------------------------------------

    Fuel hoses can be certified by design as being manufactured in 
compliance with certain accepted SAE specifications. Specifically, a 
fuel hose meeting the SAE J30 R11-A or R12 requirements could be 
design-certified to the standard. In addition, fuel line meeting the 
SAE J2260\73\ Category 1 requirements could be design-certified to the 
standard. These fuel hoses and fuel line specifications are based on 
15-percent methanol fuel and higher temperatures. We believe that fuel 
hoses and lines that are tested and meet these requirements would also 
meet our hose permeation standards because both are generally 
acknowledged as representing more stringent test parameters. In the 
future, if new SAE specifications are developed which are consistent 
with our hose permeation standards, we would consider including hoses 
meeting the new SAE requirements as being able to certify by design.
---------------------------------------------------------------------------

    \73\ SAE Recommended Practice J2260, ``Nonmetallic Fuel System 
Tubing with One or More Layers,''1996, (Docket A-2000-01, document 
IV-A-18).
---------------------------------------------------------------------------

    At certification, manufacturers will have to submit an engineering 
analysis showing that the tank or hose designs will meet the standards 
throughout their full useful life. The tanks and hoses will remain 
subject to the emission standards throughout their useful lives. The 
design criteria relate only to the issuance of a certificate.

E. Special Compliance Provisions

    We believe that the permeation control requirements will be 
relatively easy for small businesses to meet, given the relatively low 
cost of the requirements and the availability of materials and 
treatment support by outside vendors. Low permeation fuel hoses are 
available from vendors today, and we would expect that surface 
treatment would be applied through an outside company. However, to 
minimize any additional burden these requirements may impose on small 
manufacturers, we are implementing, where they are applicable to 
permeation, the same options we proposed for the exhaust emission 
standards. These options for small recreational vehicle manufacturers 
are described in detail in Section III.E.

F. Technological Feasibility

    We believe there are several strategies that manufacturers can use 
to meet our permeation emission standards. This section gives an 
overview of this technology. See Chapters 3 and 4 of the Final 
Regulatory Support Document for more detail on the technology discussed 
here.
1. Implementation Schedule
    The permeation emission standards for fuel tanks become effective 
in the 2008 model year. Several technologies are available that could 
be used to meet this standard. Surface treatments to reduce tank 
permeation are widely used today in other container applications, and 
the technology and production facilities needed to conduct this process 
exist. Selar is used by at least one portable fuel tank manufacturer 
and has also been used in automotive applications. Plastic tanks with 
coextruded barriers have been used in automotive applications for 
years. However, fuel tanks used in recreational vehicles are primarily 
(but not exclusively) high-density polyethylene tanks with no 
permeation control. We received comments from manufacturers that they 
would not be able to comply with permeation standards until 2008 or 
2009. They stated that, especially for fuel tanks, they would need this 
extra lead time to ensure that the useful life requirement can be met 
on their products. At the same time, others commented that the 
technology is already available and that the permeation standards 
should apply in 2004. We believe it is appropriate to give 
manufacturers until the 2008 model year for the fuel tank permeation 
standards. Manufacturers will need lead time to allow for durability 
testing and other development work associated with applying this 
technology to recreational vehicles. This is especially true for 
manufacturers or vendors who choose to set up their own sulfonation or 
fluorination facilities in-house.
    We believe that the low permeation hose technology can also be 
applied in the 2008 time frame. A lower permeation fuel hose exists 
today known as the SAE R9 hose that is as flexible as the SAE R7 hose 
used in most recreational applications today. These SAE hose 
specifications are contained in SAE J30 cited above. This hose would 
meet our permeation standard on gasoline, but probably not on a 10-
percent ethanol blend. As noted in Chapter 4 of the Final Regulatory 
Support Document, barrier materials typically used in R9 hose today may 
have permeation rates 3 to 5 times

[[Page 68289]]

higher on a 10-percent ethanol blend than on straight gasoline. 
However, there are several lower permeability barrier materials that 
can be used in rubber hose that will comply with the hose permeation 
requirement on a 10-percent ethanol blend and still be flexible enough 
for use in recreational vehicles. This hose is available for automotive 
applications at this time, but some lead time may be required to apply 
these hoses to recreational vehicles if hose connection fitting changes 
were required. For these reasons, we are implementing the hose 
permeation standard on the same schedule as the tank permeation 
standards.
2. Standard Levels
    We have identified several strategies for reducing permeation 
emissions from fuel tanks and hoses. We recognize that some of these 
technologies may be more desirable than others for some manufacturers, 
and we recognize that different strategies for equal emission 
reductions may be better for different applications. A specific example 
of technology that could be used to meet the fuel tank permeations 
would be surface barrier treatments such as sulfonation or 
fluorination. With these surface treatments, more than a 95-percent 
reduction in permeation emissions from new fuel tanks is feasible. 
However, variation in material tolerances and in-use deterioration can 
reduce this effectiveness. Given the lead time for the standards, 
manufacturers will be able to provide fuel tanks with consistent 
material quality, and the surface treatment processes can be optimized 
for a wide range of material qualities and additives such as pigments, 
plasticizers, and UV inhibitors. We do not expect a large deterioration 
in use; however, data on slosh testing suggest that some deterioration 
may occur. To accommodate variability and deterioration, we are 
finalizing a standard that represents about an 85-percent reduction in 
permeation emissions from plastic fuel tanks. It is our expectation 
that manufacturers will aim for a surface treatment effectiveness rate 
as near to 100 percent a practical for new tanks. Therefore, even with 
variability and deterioration in use, control rates are likely to 
exceed 85 percent. Several materials are available today that could be 
used as a low permeation barrier in rubber hoses. We present more 
detail on these and other technological approaches below.
3. Technological Approaches
    a. Fuel tanks. Blow molding is widely used for the manufacture of 
small fuel tanks of recreational vehicles. Typically, blow molding is 
performed by creating a hollow tube, known as a parison, by pushing 
high-density polyethylene (HDPE) through an extruder with a screw. The 
parison is then pinched in a mold and inflated with an inert gas. In 
highway applications, non-permeable plastic fuel tanks are produced by 
blow molding a layer of ethylene vinyl alcohol (EVOH) or nylon between 
two layers of polyethylene. This process is called coextrusion and 
requires at least five layers: the barrier layer, adhesive layers on 
either side of the barrier layer, and HDPE as the outside layers which 
make up most of the thickness of the fuel tank walls. However, multi-
layer construction requires two additional extruder screws which 
significantly increases the cost of the blow molding process. Multi-
layer fuel tanks can also be formed using injection molding. In this 
method, a low viscosity polymer is forced into a thin mold to create 
each side of the fuel tank. The two sides are then welded together. To 
add a barrier layer, a thin sheet of the barrier material is placed 
inside the mold prior to injection of the poleythylene. The 
polyethylene, which generally has a much lower melting point than the 
barrier material, bonds with the barrier material to create a shell 
with an inner liner.
    A less expensive alternative to coextrusion is to blend a low 
permeable resin in with the HDPE and extrude it with a single screw. 
The trade name typically used for this permeation control strategy is 
Selar. The low permeability resin, typically EVOH or nylon, creates 
non-continuous platelets in the HDPE fuel tank which reduce permeation 
by creating long, tortuous pathways that the hydrocarbon molecules must 
navigate to pass through the fuel tank walls. Although the barrier is 
not continuous, this strategy can still achieve greater than a 90-
percent reduction in permeation of gasoline. EVOH has much higher 
permeation resistance to alcohol than nylon; therefore, it would be the 
preferred material to use for meeting our standard which is based on 
testing with a 10-percent ethanol fuel.
    Another type of low permeation technology for fuel tanks would be 
to treat the surfaces of a plastic fuel tanks with a barrier layer. Two 
ways of achieving this are known as fluorination and sulfonation. The 
fluorination process causes a chemical reaction where exposed hydrogen 
atoms are replaced by larger fluorine atoms which creates a barrier on 
the surface of the fuel tank. In this process, a batch of fuel tanks 
are generally processed post production by stacking them in a steel 
container. The container is then voided of air and flooded with 
fluorine gas. By pulling a vacuum in the container, the fluorine gas is 
forced into every crevice in the fuel tanks. As a result of this 
process, both the inside and outside surfaces of the fuel tank would be 
treated. As an alternative, fuel tanks can be fluorinated on-line by 
exposing the inside surface of the fuel tank to fluorine during the 
blow molding process. However, this method may not prove as effective 
as off-line fluorination which treats the inside and outside surfaces.
    Sulfonation is another surface treatment technology where sulfur 
trioxide is used to create the barrier by reacting with the exposed 
polyethylene to form sulfonic acid groups on the surface. Current 
practices for sulfonation are to place fuel tanks on a small assembly 
line and expose the inner surfaces to sulfur trioxide, then rinse with 
a neutralizing agent. However, sulfonation can also be performed using 
a batch method. Either of these processes can be used to reduce 
gasoline permeation by more than 95 percent.
    Over the first month or so of use, polyethylene fuel tanks can 
expand by as much as three percent due to saturation of the plastic 
with fuel. Manufacturers have raised the concern that this hydrocarbon 
expansion could affect the effectiveness of surface treatments like 
fluorination or sulfonation. We believe this will not have a 
significant effect on the effectiveness of these surface treatments. 
California ARB has performed extensive permeation testing on portable 
fuel containers with and without these surface treatments. Prior to the 
permeation testing, the tanks were prepared by first performing a 
durability procedure where the fuel container is cycled a minimum of 
1000 times between -1 psi and 5 psi. In addition, the fuel containers 
are soaked with fuel for a minimum of four weeks prior to testing. 
Their test data, presented in Chapter 4 of the Final Regulatory Support 
Document show that fluorination and sulfonation are still effective 
after this durability testing.
    Manufacturers have also commented that fuel sloshing in the fuel 
tank, under normal in-use operation, could wear off the surface 
treatments. However, we do not believe that this is likely. These 
surface treatments actually result in an atomic change in the structure 
of the

[[Page 68290]]

outside surface of the fuel tank. To wear off the treatment, the 
plastic would need to be worn away on the outside surface. In addition, 
testing by California ARB shows that the fuel tank permeation standard 
can be met by fuel tanks that have been sloshed for 1.2 million cycles. 
Test data on an sulfonated automotive HDPE fuel tank after five years 
of use showed no deterioration in the permeation barrier. This data are 
presented in Chapter 4 of the Final Regulatory Support Document.
    Permeation can also be reduced from fuel tanks by constructing them 
out of a lower permeation material than HDPE. For instance, metal fuel 
tanks would not permeate. In addition, there are grades of plastics 
other than HDPE that could be molded into fuel tanks. One commenter 
suggested nylon; however, although nylon has excellent permeation 
resistance on gasoline, it has poor chemical resistance to alcohol-
blended fuels. Other materials, which have excellent permeation even 
with alcohol-blended fuels are acetal copolymers and thermoplastic 
polyesters. At this time, these materials are generally much more 
expensive than HDPE.
    b. Hoses. Fuel hoses produced for use in recreational vehicles are 
generally extruded nitrile rubber with a cover for abrasion resistance. 
Lower permeability fuel hoses produced today for other applications are 
generally constructed in one of two ways: either with a low 
permeability layer or by using a low permeability rubber blend. By 
using hose with a low permeation thermoplastic layer, permeation 
emissions can be reduced by more than 95 percent. Because the 
thermoplastic layer is very thin, on the order of 0.1 to 0.2 mm, the 
rubber hose retains its flexibility. Two thermoplastics which have 
excellent permeation resistance, even with an alcohol-blend fuel, are 
ETFE and THV.\74\
---------------------------------------------------------------------------

    \74\ ethylene-tetrafluoro-ethylene (ETFE), tetra-fluoro-
ethylene, hexa-fluoro-propylene, and vinyledene fluoride (THV).
---------------------------------------------------------------------------

    In automotive applications, multilayer plastic tubing, made of 
fluoropolymers is generally used. An added benefit of these low 
permeability lines is that some fluoropolymers can be made to conduct 
electricity and therefore can prevent the buildup of static charges. 
Although this technology can achieve more than an order of magnitude 
lower permeation than barrier hoses, it is relatively inflexible and 
may need to be molded in specific shapes for each recreational vehicle 
design. Manufacturers have commented that they would need flexible hose 
to fit their many designs, resist vibration, and to simplify the hose 
connections and fittings.
    An alternative approach to reducing the permeability of fuel hoses 
would be to apply a surface treatment such as fluorination or 
sulfonation. This process would be performed in a manner similar to 
discussed above for fuel tanks.
4. Conclusions
    The standards for permeation emissions from recreational vehicles 
reasonably reflect what manufacturers can achieve through the 
application of available technology. Manufacturers will have several 
years of lead time to select, design, and produce permeation emission-
control strategies that will work best for their product lines. We 
expect that meeting these requirements will pose a challenge, but one 
that is feasible taking into consideration the availability and cost of 
technology, lead time, noise, energy, and safety. The role of these 
factors is presented in detail in Chapters 3 and 4 of the Final 
Regulatory Support Document.
    The permeation standards are based on the effective application of 
low permeable materials or surface treatments. This is a step change in 
technology; therefore, we believe that even if we set a less stringent 
permeation standard, these technology options would likely still be 
used. In addition, this technology is relatively inexpensive and can 
achieve meaningful emission reductions. The standards are expected to 
achieve more than an 85-percent reduction in permeation emissions from 
fuel tanks and more than 95 percent from hoses. We believe that more 
stringent standards could result in significantly more expensive 
materials without corresponding additional emission reduction. In 
addition, the control technology would generally pay for itself over 
time by conserving fuel that would otherwise evaporate. The projected 
costs and fuel savings are discussed in Chapter 5 of the Final 
Regulatory Support Document.

V. Large Spark-Ignition (SI) Engines

A. Overview

    This section applies to most nonroad spark-ignition engines rated 
over 19 kW (``Large SI engines''). The emission standards will lead to 
emission reductions of about 90 percent for CO, NOX, and 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 help reduce ozone and CO concentrations and will also be 
valuable to individuals operating these engines in areas with limited 
fresh air circulation. 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, as described in the Final Regulatory Support Document.
    This section describes the requirements that apply to engine 
manufacturers. See Section II for a description of our general approach 
to regulating nonroad engines and how manufacturers show that they meet 
emission standards. See Section VII for additional requirements for 
engine manufacturers, equipment manufacturers, and others. See Section 
VIII for general provisions related to testing equipment and 
procedures.

B. Large SI Engines Covered by This Rule

    Large SI engines covered in this section power nonroad equipment 
such as forklifts, sweepers, pumps, and generators. This includes 
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.
    This final rule applies only to spark-ignition engines. Our most 
recent rulemaking for nonroad diesel engines adopted a definition of 
``compression-ignition'' that addressed the status of alternative-fuel 
engines (63 FR 56968, October 23, 1998). We are adopting 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.\75\ These 
new definitions apply to 40 CFR parts 89 and 1048. Spark-ignitions 
include gasoline-fueled engines and any others that control power with 
a throttle and follow the theoretical Otto cycle. Compression-ignition 
engines are any reciprocating internal-combustion engines that are not 
spark-ignition engines. Under these definitions, it is possible for a 
diesel-derived engine to fall under the spark-ignition program. We 
believe the requirements adopted in this rule are feasible and 
appropriate for these engines. However, we will allow such engines over 
250 kW to instead meet the requirements that apply to nonroad

[[Page 68291]]

diesel engines. We believe this is appropriate for several reasons. 
First, the technology requirements are comparable between programs. The 
nonroad diesel emission standards, which apply over the longer useful 
life characteristic of diesel engines, are slightly more stringent for 
CO and slightly less stringent for HC+NOX. The calibration 
changes needed to adjust these emission levels are not fundamental to 
the overall design of the emission-control system. Second, the diesel 
engine manufacturers producing these engines are already set up to do 
testing based on test procedures that apply to diesel engines. To the 
extent that they would incur costs to be able to run test procedures 
specified for Large SI engines, these costs would likely not correspond 
with improving emission-controls. Third, these engines share important 
technical characteristics with diesel engines and are likely to 
experience in-use operation that is more like that of nonroad diesel 
engines. In addition, they are installed in applications that also use 
diesel engines, not Large SI engines.
---------------------------------------------------------------------------

    \75\ Gas turbines are non-reciprocating internal combustion 
engines.
---------------------------------------------------------------------------

    Several types of engines are excluded or exempted from these new 
regulations. 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, stationary-source engines are 
not nonroad engines, so the emission standards don't apply to engines 
used in stationary applications. In general, an engine that would 
otherwise be considered a Large SI engine is not considered a nonroad 
engine if it will be either installed in a fixed position or if it will 
be a portable (or transportable) engine operating for at least one-year 
periods without moving throughout its lifetime. We are adopting the 
same definitions for these engines that have already been established 
for other programs. These stationary engines (that would otherwise 
qualify as Large SI engines) must have an engine label identifying 
their excluded status. This is especially valuable for importing 
excluded engines without complication from U.S. Customs officials. It 
also helps us ensure that such engines are legitimately excluded from 
emission standards.
2. Exclusion for Engines Used Solely for Competition
    For Large SI engines we proposed the existing regulatory definition 
for nonroad engines, with excludes engines used solely for competition. 
As described in the proposed rule, we are not aware of any 
manufacturers producing new engines that are intended only for 
competition. As a result, we are not adopting any specific provisions 
addressing a competition exclusion for manufacturers. Part 1068 of the 
regulations includes provisions addressing the practice of modifying 
certified engines for competition (see Section VII.C).
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 are therefore adopting an 
exemption from the Large SI standards in 40 CFR part 1048 for engines 
that are already certified to the emission standards in 40 CFR part 86 
for highway applications. To qualify for this exemption from separately 
certifying to nonroad standards, the manufacturer must makes no changes 
to the engine that might affect its exhaust or evaporative emissions. 
Companies using this exemption must report annually to us, including a 
list of its exempted engine models. For engines included under this 
provision, manufacturers of the vehicle or engine 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 regulations 
describes the qualifying criteria and responsibilities in greater 
detail.
    We generally prohibit equipment or vehicle manufacturers from 
producing new nonroad equipment that does not have engines certified to 
nonroad emission standards. However, in some cases a manufacturer may 
want to produce vehicles certified to highway emission standards for 
nonroad use. We are providing an exemption for these manufacturers, as 
long as there is no change in the vehicle's exhaust or evaporative 
emission-control systems. For example, a mining company may want to use 
a pickup truck for dedicated work at a mine site, but special-order the 
trucks from the manufacturer with modifications that cause the truck to 
no longer qualify as a motor vehicle. Manufacturers may produce such a 
modified version of a truck that has been certified to the motor-
vehicle standards, as long as the modifications don't affect its 
emissions.
4. Lawn and Garden Engine Exemption
    Most Large SI engines, rated over 19 kW, 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, 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). We 
are not changing this provision, and engines so certified would not be 
subject to the requirements that apply to Large SI engines. This 
approach allows 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 is also 
consistent with the provisions adopted by California ARB, except for 
the addition of the 30-kW cap to prevent treating high-power engines 
under the program that applies to lawn and garden engines.
    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 nonroad spark-ignition engines below 19 kW. This rule 
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), manufacturers may certify any 
engine rated under 19 kW to the more stringent Large SI emission 
standards. Such an engine is then exempt from the requirements of 40 
CFR part 90.

C. Emission Standards

    In October 1998, California ARB adopted emission standards for 
Large SI engines. We are extending these requirements to the rest of 
the U.S. in the near term. We are also revising the

[[Page 68292]]

emission standards and adding various provisions in the long term, as 
described below. The near-term and the long-term emission standards are 
based on three-way catalytic converters with electronic fueling systems 
to control emissions, and differ primarily in terms of how well the 
controls are optimized. In addition to the anticipated emission 
reductions, we project that these technologies will provide large 
savings to operators as a result of reduced fuel consumption and other 
performance improvements.
    An important element of the control program is the attempted 
harmonization with the requirements adopted by California ARB. We are 
aware that inconsistent or conflicting requirements may lead to 
additional costs. Cooperation between agencies has allowed a great 
degree of harmonization. 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 
requirements in greater detail.
1. What Are the Emission Standards and Compliance Dates?
    a. Exhaust emissions. We are adopting 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 4.0 g/kW-hr (3.0 g/hp-hr) for HC+NOX 
emissions and 50 g/kW-hr (37 g/hp-hr) for CO emissions. See Section V.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 
are similar to those used for many years in highway applications, but 
not necessarily with the same degree of sophistication.
    Adopting emission standards for these engines starting in 2004 
allows a relatively short lead time. However, 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. Adopting these near-term 
emission standards allows us to set early requirements to introduce the 
low-emission technologies for substantial emission reductions with 
minimal lead time. The final requirements includes two principal 
adjustments to align with the California ARB standards. First, we 
specify that manufacturers' deterioration factors for 2004 through 2006 
model years should be based on emission measurements over 3500 hours of 
engine operation, rather than the full useful life of 5000 hours. 
Second, for those same model years, we are applying an emission 
standard of 5.4 g/kW-hr (4.0 g/hp-hr) HC+NOX for any in-use 
testing to account for the potential for additional deterioration 
beyond 3500 hours. This allowance for higher in-use emissions is a 
temporary provision to ensure the feasibility of compliance in the 
early years of the program. Testing has shown that with additional 
design time, manufacturers can incorporate emission-control 
technologies with sufficient durability that the long-term standards do 
not require a separate in-use standard. This is separate from the 
field-testing standards described below.
    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. We are therefore adopting a second tier of 
standards to require additional emission reductions. These later 
standards require manufacturers to control emissions under both steady-
state and transient engine operation, as described in Section V.D 
below). Setting the emission standards to require additional control 
involves separate consideration of the achievable level of control for 
HC+NOX and CO emissions. While HC+NOX emissions 
contribute to nonattainment of ozone air quality standards, CO 
emissions contribute to nonattainment of CO air quality standards and 
potentially harmful exposures of individuals where engines are 
operating in areas where fresh airflow may be restricted. Emission-
control technology is able to simultaneously control these three 
pollutants, but a tradeoff between NOX and CO emissions 
persists for any given system. This relationship is determined by an 
engine's precise control of air-fuel ratios--shifting to air-fuel 
ratios slightly lean of stoichiometric increases NOX 
emissions but decreases CO emissions and vice versa. Engines using 
different fuels face this same situation, though gasoline engines 
operating under heavy load generally need to shift to richer air-fuel 
ratios to prevent accelerated engines wear from very high combustion 
temperatures.
    Our primary focus in setting the level of the emission standards is 
reductions in emissions that contribute to ambient air-pollution 
problems. At the same time, we recognize that these engines are used in 
many applications where there are concerns about personal exposure to 
the engine exhaust, including workplace exposure, focusing primarily on 
CO exposure. It is appropriate to take such concerns into consideration 
in setting the level of the standards. In this case, where the 
equipment using these engines can vary substantially and where the 
emission-control technology means there is a trade-off between 
HC+NOX control and CO control, it is difficult to set a 
single, optimal standard for all three pollutants. In such a situation 
it is reasonable to have more than one set of standards to allow an 
engine to use technologies focused on controlling the pollutants of 
most concern for a specific application.
    We are not in a position, however, to readily identity the specific 
levels of alternative standards that are appropriate for each 
application or to pick specific applications that should go with 
different standards. We also want to ensure that engines significantly 
reduce emissions of all three pollutants.
    To address this, we are setting a combination of standards 
requiring more effective emission controls starting with the 2007 model 
year. First, we are setting benchmark emission standards of 2.7 g/kW-hr 
(2.0 g/hp-hr) for HC+NOX emissions and 4.4 g/kW-hr (3.3 g/
hp-hr) for CO emissions. The emission standards apply to measurements 
during duty-cycle testing under both steady-state and transient 
operation, including certification, production-line testing, and in-use 
testing.\76\ These emission levels provide for substantial control of 
HC+NOX emissions (in fact, these standards are more 
stringent than those proposed), but also contain substantial control of 
CO emissions to protect against individual exposure as well as CO 
nonattainment.
---------------------------------------------------------------------------

    \76\ See Section V.D for a discussion of duty cycles.
---------------------------------------------------------------------------

    We are also including an option for manufacturers to certify their 
engines to different emission levels to allow manufacturers to build 
engines whose emission controls are more weighted toward controlling 
NOX emissions to reflect the inherent tradeoff of 
NOX and CO emissions. Generally this involves meeting a less 
stringent CO standard if a manufacturer certifies an engine with lower 
HC+NOX emissions. Table V.C-1 shows several examples of 
possible combinations of HC+NOX and CO emission standards. 
The highest allowable CO standard is 20.6 g/kW-hr (15.4 g/hp-hr), which 
corresponds with HC+NOX emissions below 0.8 g/kW-hr

[[Page 68293]]

(0.6 g/hp-hr). Manufacturers certify to any HC+NOX level 
between and including 0.8 and 2.7 g/kW-hr, rounding to the nearest 0.1 
g/kW-hr. They will certify also to the corresponding CO level, as 
calculated using the formula below, again rounding to the nearest 0.1 
g/kW-hr.

    Table V.C-1.--Samples of Possible Alternative Duty-Cycle Emission
                Standards for Large SI Engines(g/kW-hr)*
------------------------------------------------------------------------
                            HC+NOX                                 CO
------------------------------------------------------------------------
2.7..........................................................        4.4
2.2..........................................................        5.6
1.7..........................................................        7.9
1.3..........................................................       11.1
1.0..........................................................       15.5
0.8..........................................................      20.6
------------------------------------------------------------------------
* As described in the Final Regulatory Support Document and the
  regulations, the values in the table are related by the following
  formula: (HC+NOX) x CO0.784 = 8.57. These values follow directly from
  the logarithmic relationship presented with the proposal in the Draft
  Regulatory Support Document.

    We believe this flexible approach to setting standards is the most 
appropriate and efficient way to allocate the different design 
strategies to achieve effective reductions of HC+NOX 
emissions while providing for the best control of CO emissions where it 
is most needed. Testing has shown that emission controls are more 
likely to experience degradation with respect to controlling CO 
emissions than HC or NOX emissions. Manufacturers therefore 
have a natural incentive to certify engine families with an 
HC+NOX emission level as low as possible to increase the 
compliance margin for meeting the CO standard. In addition, many of 
these engines will be used in applications where ozone is of more 
concern. As a result, we expect manufacturers to design most of their 
engines to operate substantially below the 2.7 g/kW-hr standard for 
HC+NOX emissions. This approach also encourages 
manufacturers to continually improve their control of HC+NOX 
emissions over time. At the same time, to the extent that purchasers 
want engines with low CO emission levels, particularly for exposure-
related concerns, manufacturers will be able to produce compliant 
engines that will provide appropriate protection. Note that engines 
operating at the highest allowable CO emission levels under the 2007 
standards will still be substantially reducing CO emissions compared 
with baseline levels. The emission standards in this final rule will 
achieve substantial reductions, but are not designed to guarantee 
workplace safety or to set a safety standard. Rather, we intend to 
facilitate the use of engine-based control technologies so that owners 
and operators can purchase equipment to help them address these 
concerns.
    We are not adopting any controls or limits to restrict the sale of 
engines meeting certain requirements into certain applications. We 
believe that the manufacturers and customers for these products will 
together make educated choices regarding the appropriate mix of 
emission controls for each application and that market forces will 
properly balance emission controls for the different pollutants in 
specific applications. We believe that customers for these 
applications, some of whom are subject to occupational air-quality 
standards for related pollutant concentrations, will be well placed to 
make informed choices regarding air-pollution control, especially given 
their ability to make choices based on the specific environmental 
circumstances of each particular customer.\77\
---------------------------------------------------------------------------

    \77\ While the emission standards in this final rule require 
substantial emission reductions of CO and other harmful pollutants 
from nonroad engines, this does not replace the need for ongoing 
regulation of air quality to protect occupational safety and health. 
More specifically, in accordance with the limitations provided in 
Section 310(a) of the Clean Air Act (42 U.S.C. section 7610(a)), 
nothing in this rule affects the Occupational Safety and Health 
Administration's authority to enforce standards and other 
requirements under the Occupational Safety and Health Act of 1970 
(29 U.S.C. sections 651 et seq.).
---------------------------------------------------------------------------

    We are adopting field-testing standards of 3.8 g/kW-hr (2.8 g/hp-
hr) for HC+NOX and 6.5 g/kW-hr (4.9 g/hp-hr) for CO. As 
described above for duty-cycle testing, field-testing allows for the 
same pattern of optional emission standards to reflect the tradeoff of 
CO and NOX emissions. See Section V.D.5 for more information 
about field testing.
    As described in Chapter 4 of the Final Regulatory Support Document, 
we believe manufacturers can achieve these emission standards by 
optimizing currently available three-way catalysts and electronically 
controlled fuel systems.
    Two additional provisions apply to specific situations. First, some 
engines need to operate with rich air-fuel ratios at high loads to 
protect the engine from overheating. This is especially true for 
gasoline-fueled engines, which typically experience higher combustion 
temperatures. When operating at such air-fuel ratios, the engines may 
be unable to meet the CO emission standard during steady-state testing 
because the steady-state duty cycle involves sustained operation under 
high-load conditions, unlike the transient duty cycle. If a 
manufacturer shows us that this type of engine operation keeps it from 
meeting the CO emission standard shown above for specific models, we 
will approve a separate CO emission standard of 31.0 g/kW-hr that would 
apply only to steady-state testing. This standard reflects the 
adjustment needed at high-load operation and would apply to any steady-
state tests for certification, production-line testing, or in-use 
testing. To prevent high in-use emission levels, we are adopting 
several additional provisions related to this separate CO standard. 
Manufacturers must show that enrichment is necessary to protect the 
engine from damage and that enrichment will be limited to operating 
modes that require additional cooling to protect the engine from 
damage. In addition, manufacturers must show in their application for 
certification that enrichment will rarely occur in the equipment in 
which your engines are installed (for example, an engine that is 
expected to operate 5 percent of the time in use with enrichment would 
clearly not qualify). Finally, manufacturers must include in the 
emission-related installation instructions any steps necessary for 
someone installing the engines to prevent enrichment during normal 
operation. This option does not apply to transient or field testing, so 
these engines would need to meet the same formula for HC+NOX 
and CO standards that apply to other engines for transient testing and 
for field testing. By tying the CO standard for these engines to the 
highest allowable CO emission level for field testing, we are 
effectively requiring that manufacturers ensure that in-use engines 
employ engine-protection strategies no more frequently than is 
reflected in the steady-state duty cycles for certification.
    Second, equipment manufacturers have made it clear that some 
nonroad applications involve operation in severe environments that 
require the use of air-cooled engines. These engines rely on air 
movement instead of an automotive-style water-cooled radiator to 
maintain acceptable engine temperatures. Since air cooling is less 
effective, these engines rely substantially on enrichment to provide 
additional cooling relative to water-cooled engines. At these richer 
air-fuel ratios, catalysts are able to reduce NOX emissions 
but oxidation of CO emissions is much less effective. As a result, we 
are adopting emission standards for these ``severe-duty'' engines of 
2.7 g/kW-hr for HC+NOX and 130 g/kW-hr for CO. These 
standards apply to duty-cycle

[[Page 68294]]

emission testing for both steady-state and transient measurements (for 
certification, production-line, and in-use testing). The corresponding 
field-testing standards are 3.8 g/kW-hr for HC+NOX and 200 
g/kW-hr for CO. Severe-duty applications include concrete saws and 
concrete pumps. These types of equipment are exposed to high levels of 
concrete dust, which tends to form a thick insulating coat around any 
heat-exchanger surfaces and exposes engines to highly abrasive dust 
particles. Manufacturers may request approval in identifying additional 
severe-duty applications subject to these less stringent standards if 
they can provide clear evidence that the majority of installations need 
air-cooled engines as a result of operation in a severe-duty 
environment. This arrangement generally prevents these higher-emitting 
engines from gaining a competitive advantage in markets that don't 
already use air-cooled engines.
    We believe 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 2004 
emission standards should be capable of meeting the 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 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 V.D.5, since engines will not be 
following a prescribed duty cycle.
    For engines fueled by gasoline and liquefied petroleum gas (LPG), 
we specify emission standards based on total hydrocarbon measurements, 
while California ARB standards are based on nonmethane hydrocarbons. We 
believe that switching to measurement based on total hydrocarbons 
simplifies testing, especially for field testing of in-use engines with 
portable devices (See Section V.D.5). To maintain consistency with 
California ARB standards in the near term, we will allow manufacturers 
to base their certification through 2006 on either nonmethane or total 
hydrocarbons (see 40 CFR 1048.145). Methane emissions from controlled 
engines operating on gasoline or LPG are about 0.1 g/kW-hr.
    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 have 
therefore specified nonmethane hydrocarbon emissions for comparison 
with the standard for natural gas engines. However, the emission 
standards based on measuring emissions in the field depend on total 
hydrocarbons. We are therefore adopting a NOX-only field-
testing standard for natural gas engines instead of a HC+NOX 
standard. Since control of NOX emissions for natural gas 
engines poses a significantly greater challenge than controlling 
nonmethane hydrocarbons, duty-cycle testing provides adequate assurance 
that these engines have sufficiently low hydrocarbon emission levels. 
Manufacturers must show that they meet these duty-cycle standards for 
certification and the engines remain subject to the nonmethane 
hydrocarbon standard in-use when tested over the same duty-cycles.
    b. Evaporative emissions. We are adopting requirements related to 
evaporative and permeation emissions from gasoline-fueled Large SI 
engines. For controlling diurnal emissions, we are adopting an emission 
standard of 0.2 grams of hydrocarbon per gallon of fuel tank capacity 
during a 24-hour period. In addition, we specify that manufacturers use 
fuel lines meeting an industry standard for permeation-resistance. 
Finally, we require that manufacturers take steps to prevent fuel from 
boiling. We expect certification of manufacturers' equipment to be 
design-based, as compared with conducting a full emission-measurement 
program during certification. As such, meeting these evaporative 
requirements is much more like meeting the requirements related to 
controlling crankcase emissions and is therefore discussed in detail in 
Section V.C.4 below.
2. May I Average, Bank, or Trade Emission Credits?
    We are not including an averaging, banking, and trading program for 
certifying engines. As described in Chapter 4 of the Final Regulatory 
Support Document, we believe that manufacturers will generally be able 
to rely on a relatively uniform application of emission-control 
technology to meet emission standards. The standards were selected 
based on the capabilities of all manufacturers to comply with all their 
models without an emission-credit program. Moreover, overlaying an 
emission-credit program on the flexible standards described above would 
be highly impractical. If such a program could be devised it would need 
to be very complex and would achieve little, if any, advantage to 
manufacturers beyond the advantages already embodied in the flexible 
approach we are adopting.
    However, as an alternative to a program of calculating emission 
credits for averaging, banking, and trading, we are adopting a simpler 
approach of ``family banking'' to help manufacturers transition to new 
emission standards (see 40 CFR 1048.145 of the regulations). 
Manufacturers may certify an engine family early, which would allow 
them to delay certification of smaller engine families. This would be 
based on the actual sales of each engine family; this requires no 
calculation or accounting of emission credits. The manufacturer would 
have actual sales figures for the early family at the end of the 
production year, which would yield a total number of allowable sales 
for the engine family with delayed compliance. Manufacturers may 
certify engines to the 2004 standards early, but this would provide 
benefits only for complying with the 2004 standards. These ``credits'' 
would not apply to engines for meeting the 2007 standards.
3. Is EPA Adopting Voluntary Blue Sky Standards for These Engines?
    We are adopting voluntary Blue Sky standards for Large SI engines. 
We are setting a target of 0.8 g/kW-hr (0.6 g/hp-hr) HC+NOX 
and 4.4 g/kW-hr (3.3 g/hp-hr) CO as a qualifying level for Blue Sky 
Series engines. The corresponding field-testing standards for Blue Sky 
Series engines are 1.1 g/kW-hr (0.8 g/hp-hr) HC+NOX and 6.6 
g/kW-hr (4.9 g/hp-hr) CO. These voluntary standards are based on 
achieving the maximum control of both HC+NOX and CO 
emissions, as described in Section V.C.1. To achieve these emission 
levels, manufacturers will need to apply significantly additional 
technology beyond that required for the mandatory standards.
    Manufacturers may start producing engines to these voluntary 
standards immediately after this final rule becomes effective. In 
addition, we are adopting interim voluntary standards corresponding 
with the introduction of new emission standards. Since manufacturers 
will not be complying early to bank emission credits, voluntary 
emission standards are an appropriate way to encourage manufacturers to 
meet emission standards before the regulatory deadline. If 
manufacturers certify engines to these voluntary standards, they are 
not eligible for participation in the family-banking program described

[[Page 68295]]

above. In the 2003 model year, manufacturers may 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 are 
available to customers outside of California desiring emission 
reductions or fuel-economy improvements. Similarly, for 2003 through 
2006 model years, manufacturers may certify their engines to the 
requirements that start to apply in 2007.
4. 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 (mostly 
hydrocarbons) can accumulate in the crankcase. These crankcase 
emissions are significant, representing about 33 percent of total 
exhaust hydrocarbon. Uncontrolled engines route these vapors directly 
to the atmosphere. We have long required that automotive engines 
prevent crankcase emissions. Manufacturers typically do this by routing 
crankcase vapors through a valve into the engine's air intake system 
where they are burned in the combustion process.
    Manufacturers may choose one of two methods for controlling 
crankcase emissions. First, adding positive-crankcase ventilation 
prevents crankcase emissions. Since automotive engine blocks are 
already tooled for closed crankcases, the cost of adding a valve for 
positive-crankcase ventilation for most engines is very small. An 
alternative method addresses specific concerns related to turbocharged 
engines or engines operating in severe-duty environments. Where closed 
crankcases are impractical, manufacturers may therefore measure 
crankcase emissions during any emission testing to add crankcase 
emissions to measured exhaust emissions for comparing with the 
standards.
    b. Diagnosing malfunctions. Manufacturers must design their Large 
SI engines to 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.\78\ 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. We are not requiring similar 
diagnostic controls for recreational vehicles or recreational marine 
diesel engines, because the anticipated emission-control technologies 
for these other applications are generally less susceptible to drift 
and gradual deterioration.
---------------------------------------------------------------------------

    \78\ Stoichiometry 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.
---------------------------------------------------------------------------

    This diagnostic requirement focuses solely on maintaining 
stoichiometric control of air-fuel ratios. This kind of design detects 
problems such as broken oxygen sensors, leaking exhaust pipes, fuel 
deposits, and other things that 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 the signaling of false failures as much as 
possible. The diagnostic requirements in this rule therefore focus on 
detecting inappropriate air-fuel ratios, which is the most likely 
failure mode for three-way catalyst systems. The malfunction-indicator 
light must go on when an engine runs for a full minute under closed-
loop operation without reaching a stoichiometric air-fuel ratio.
    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 (with two-way catalysts) would not be as sensitive to air-
fuel ratio as with stoichiometric designs. For these or other engines 
that rely on emission-control technologies incompatible with the 
diagnostic system described above, manufacturers must devise an 
alternate system that alerts the operator to engine malfunctions that 
would prevent the emission-control system from functioning properly.
    The automotive industry has developed a standardized protocol for 
diagnostic systems, including hardware specifications, and uniform 
trouble codes. In the regulations we reference standards adopted by the 
International Organization for Standardization (ISO) for automotive 
systems. If manufacturers find that these standards are not applicable 
to the simpler diagnostic design specified 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. Manufacturers may request approval to use systems that don't 
meet the automotive specifications if those specifications are not 
practical or appropriate for their engines.
    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:
[sbull] Fuel metering (fuel injectors or carburetor)
[sbull] The degree to which fuel permeates fuel lines and fuel tanks
[sbull] Proximity of the fuel tank to the exhaust system or other heat 
sources
[sbull] 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. In 1998, 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.\79\

[[Page 68296]]

This study did not take into account the possibility of unusually high 
fuel temperatures during engine operation, as described further below.
---------------------------------------------------------------------------

    \79\ ''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 adopting basic measures to reduce evaporative emissions from 
gasoline-fueled Large SI engines. First, we are adopting an evaporative 
emission standard of 0.2 grams per gallon of fuel tank capacity for 24-
hour day when temperatures cycle between 72[deg] and 96[deg] F. For 
purposes of certification, manufacturers may choose, however, to rely 
on a specific design for certification instead of measuring emissions. 
We have identified a technology that adequately prevents evaporative 
emissions such that the design itself would be enough to show 
compliance with the evaporative emission standard for purposes of 
certification. Specifically, 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 3.5 psi or for vacuum pressures of at least 
1.5 psi.\80\ We know that any Large SI engines or vehicles operating 
with these pressures would meet the standard because test data confirm 
the basic chemistry principles related to phase-change pressure 
relationships showing that fuel tanks will remain sealed at all times 
during the prescribed test procedure. Also, similar to the Underwriters 
Laboratories' requirement, we specify 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.
---------------------------------------------------------------------------

    \80\ ''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.I for our 
consideration of incorporating the UL requirements into our 
regulations by reference.
---------------------------------------------------------------------------

    In some applications, manufacturers may want to avoid high fuel-
tank pressures. Manufacturers may be able to meet the standard using an 
air bladder inside the fuel tank that changes in volume to keep the 
system in equilibrium at atmospheric pressure.\81\ We have data showing 
that these systems also would remain sealed at all times during the 
prescribed test procedure. However, the permeation levels related to 
the air bladder and the long-term durability of this type of system are 
still unknown. Once these parameters are established with test data, 
perhaps with some additional product development, this technology may 
then qualify as an option for design-based certification. Similarly, 
collapsible bladder tanks, which change in volume to prevent generation 
of a vapor space or vapor emissions, may eventually be available as a 
technology for design-based certification once permeation data are 
available to confirm that systems with these tanks would meet the 
standard. Finally, an automotive-type system that stores fuel tank 
vapors for burning in the engine would be another alternative 
technology, though it is unlikely that such a system can be simply 
characterized and included as an option for design-based certification.
---------------------------------------------------------------------------

    \81\ ''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, engine manufacturers must 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.\82\ 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. These permeation requirements 
are based on manufacturers using a more effective emission controls 
than that specified for recreational vehicles. This is appropriate 
because Large SI manufacturers are able to use automotive-grade 
materials across their product line, while recreational vehicle 
manufacturers have pointed out various limitations in incorporating 
automotive-grade materials. Conversely, Large SI manufacturers are not 
subject to permeation requirements related to fuel tanks, since almost 
all of these tanks are made of metal.
---------------------------------------------------------------------------

    \82\ SAE J2260 ``Nonmetallic Fuel System Tubing with One or More 
Layers,'' November 1996 (Docket A-2000-01, document II-A-03).
---------------------------------------------------------------------------

    Finally, based on available technologies, manufacturers must take 
steps to prevent 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.\83\ We are adopting a standard that prohibits 
fuel boiling during continuous operation at 30[deg] C (86[deg] F). 
Engine manufacturers must 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 temperature at which summer-grade gasoline (9 RVP) 
typically starts boiling.
---------------------------------------------------------------------------

    \83\ 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 exhaust emission standards. While 
we do not 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 will eliminate most hot soak 
emissions.
    Engine manufacturers using design-based certification 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 includes 
emission-related installation instructions that the engine manufacturer 
gives to equipment manufacturers. While equipment manufacturers must 
follow these installation instruction, the engine manufacturer has the 
responsibility to certify a system that meets the evaporative-related 
requirements described in this section. This should work in practice, 
because engine manufacturers already provide equipment manufacturers a 
variety of specifications and other instructions to ensure that engines 
operate properly in-use after installation in the equipment. The 
alternative approach of requiring equipment manufacturers to certify is 
impractical because of the very large number of companies involved.
5. What Durability Provisions Apply?
    a. Useful life. We are adopting a useful life period of seven years 
or until the engine accumulates at least 5,000 operating hours, 
whichever comes first. This figure represents a minimum value and may 
increase as a result of data showing that an engine model is designed 
to last longer. This figure,

[[Page 68297]]

which California ARB has already 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. We 
are allowing manufacturers to request a shorter useful life for an 
engine family based on information showing that engines in the family 
rarely operate beyond the alternative useful-life period. For example, 
if engines powering concrete saws are typically scrapped after 2000 
hours of operation, this would form the basis for establishing a 
shorter useful-life period for those engines.
    Manufacturers relying on design-based certification to meet the 
evaporative requirements must use good engineering judgment to show 
that emission controls will work for at least seven years. This may, 
for example, be based on warranty or product-performance history from 
component suppliers. This also applies for systems designed to address 
crankcase emissions.
    b. Warranty. Manufacturers must provide an emission-related 
warranty for at least the first half of an engine's useful life (in 
operating hours) or three 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. The emission-related 
warranty includes components related to controlling evaporative and 
crankcase emissions. In addition, we are adopting the warranty 
provisions adopted by California ARB for high-cost parts. For emission-
related components whose replacement cost is more than about $400, we 
specify 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.
    c. Maintenance instructions. We are specifying 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. Manufacturers may schedule 
maintenance on catalysts, fuel injectors, electronic control units and 
turbochargers after 5,000 hours. For oxygen sensors and cleaning of 
fuel-system components, the minimum maintenance interval is 2,500 
hours. This fuel-system cleaning must be limited to steps that can be 
taken without disassembling components. We have relaxed this from the 
proposed interval of 4,500 hours to take into account comments 
emphasizing that these maintenance steps will be necessary more 
frequently than the proposed interval; this shorter interval also 
reflects the comparable provisions that apply to automotive systems.
    We are also proposing a diagnostic requirement to ensure that 
prematurely failing oxygen sensors or other components are detected and 
replaced on an as-needed basis. If operators fail to address faulty 
components after a fault signal, we would not consider that engine to 
be properly maintained. This could the engine ineligible for 
manufacturer in-use testing.
    d. Deterioration factors. We are adopting an approach that gives 
manufacturers wide discretion in how to establish deterioration factors 
for Large SI engines. The general expectation is that manufacturers 
will rely on emission measurements from engines that 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. 
In deciding to certify an engine family, we can review deterioration 
factors to ensure that the projected deterioration accurately predicts 
in-use deterioration. We will use results under the in-use testing 
program to verify the appropriateness of deterioration factors.
    In the first two or three years of certification, manufacturers 
will not yet have data from the in-use testing program. Moreover, 
manufacturers may choose to rely on technologies and calibrations for 
meeting the long-term standards well before 2007 to simplify their 
product-development efforts. We are therefore allowing manufacturers to 
rely on an assigned deterioration factor to meet the 2004 standards, 
while continuing to require manufacturers to meet the applicable 
emission standards throughout the useful life for these engines. The 
assigned deterioration factor may be derived from any available data 
that would help predict the way these systems would perform in the 
field, using good engineering judgment.
    Manufacturers may develop deterioration factors for crankcase and 
evaporative controls. However, we do not expect these control 
technologies to experience degradation that would cause a deterioration 
factor to be appropriate.
    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 LPG fuel quality. Testing data indicate that varying fuel 
quality has a 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. As described 
in the Final Regulatory Support Document, test data show that emission-
control systems can tolerate substantial fuel-related deposits before 
there is any measurable effect on emissions. Moreover, the engine 
diagnostic systems described in the next section will notify the 
operator when fuel-related deposits prevent an engine from operating at 
stoichiometry. In any case, a routine cleaning step should remove 
deposits and restore the engine to proper functioning.
    Data from in-use testing will provide additional information 
related to the effects of varying fuel quality on emission levels. This 
information will be helpful in making sure that the deterioration 
factors for certifying engines accurately reflect the whole range of 
in-use operating variables, including varying fuel quality. Our testing 
shows that fuel properties of conventional commercial LPG fuel allow 
for durable, long-term control of emissions. However, to the extent 
that engines operating in specific areas have inferior fuel quality 
that prevents them from meeting emission standards, we will be pursuing 
nationwide requirements to set minimum quality standards for in-use LPG 
fuel.

[[Page 68298]]

D. Testing Requirements and Supplemental Emission Standards

1. What Duty Cycles Are Used To Measure Emissions?
    For 2004 through 2006 model years, we specify the same steady-state 
duty cycles adopted by California ARB. For variable-speed engines, this 
involves the testing based on the ISO C2 duty 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. A separate duty cycle for the large number of Large SI 
engine providing power for constant-speed applications, such as 
generators, welders, compressors, pumps, sweepers, and aerial lifts. 
Constant-speed testing is 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 must generally test engines on both the C2 and D2 
duty cycles. 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. Manufacturers may, 
however, choose to certify their engines on only one of these two 
steady-state duty cycles. In this case, they would need to take steps 
to make sure C2-certified engines are installed only in variable-speed 
applications and D2-certified engines are installed only in constant-
speed applications. Engine manufacturers would do this by labeling 
their engines appropriately and providing installation instructions to 
make sure equipment manufacturers and others are aware of the 
restricted certification. Equipment manufacturers are required under 
the regulations to follow the engine manufacturer's emission-related 
installation instructions.
    Starting in 2007, we specify an expanded set of duty cycles, again 
with separate treatment for variable-speed and constant-speed 
applications. The test procedure is 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 same emission standards that apply to all 
duty cycles. In general, the duty cycles are intended to represent 
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.
    Ambient temperatures in the laboratory must be between 20[deg] and 
30[deg] C (68[deg] 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 V.D.5.
    The warm-up segment begins with a cold-start. This means that the 
engine should be near room temperature before the test cycle begins. 
(Starting with an engine that is still warm from previous testing is 
allowed if good engineering judgment indicates that this will not 
affect emissions.) Once the engine is started, it operates 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. For severe-duty engines, the warm-up period is extended up to 15 
minutes to account for the additional time needed to stabilize 
operating temperatures from air-cooled engines. The 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. In addition, we require manufacturers to 
activate emission-control systems as soon as possible after engine 
starting to make clear that it is not acceptable to design the 
emission-control system to start working only after the defined warm-up 
period is complete. In addition, we may measure emissions during the 
warm-up period to evaluate whether manufacturers are employing defeat 
devices. In contrast, transient testing of heavy-duty highway engines 
requires separate cold-start and hot-start measurements, with an 86-
percent weighting assigned to the hot-start portion in calculating an 
engine's composite emission level. We believe this approach for nonroad 
engines serves to limit cold-start emissions without forcing 
manufacturers to focus design and testing resources on this portion of 
operation.
    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 as fork-lifts and constant-speed engines represent 
about 90 percent of the Large SI market. 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. 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.
    A separate transient duty cycle applies to engines that are 
certified for constant-speed applications only. These engines maintain 
a constant speed, but can experience widely varying loads. The 
transient duty cycle for these engines includes 20 minutes of engine 
operation based on the way engines work in a welder. Note that 
manufacturers selling engines for both constant-speed and variable-
speed applications may omit the constant-speed transient test, since 
that type of operation is included in the general transient test.
    A subset of constant-speed engines are designed to operate only at 
high

[[Page 68299]]

load. To address the operating limitations of these engines, we are 
adopting a modified steady-state duty cycle if the manufacturer 
provides clear evidence showing that engines rarely operate below 75 
percent of full load at rated speed. Since most Large SI engines are 
clearly capable of operating for extended periods at light loads, we 
expect these provisions to apply to very few engines. This modified 
duty cycle consists of two equally weighted points, 75 percent and 100 
percent of full load, at rated speed. Since the transient cycle 
described above involves extensive light-load operation, engines 
qualifying for this high-load duty cycle would not need to measure 
emissions over the transient cycle. Note that the field-testing 
emission standards still apply to engines that don't certify to 
transient duty-cycle standards.
    Some diesel-derived engines operating on natural gas with power 
ratings up to 1,500 or 2,000 kW may be covered by these emission 
standards. Engine dynamometers with transient-control capabilities are 
generally limited to testing engines up to 500 or 600 kW. At this time 
emission standards and testing requirements related to transient duty 
cycles will not apply for engines rated above 560 kW. We will likely 
review this provision for Large SI engines once we have reached a 
conclusion on the same issue for nonroad diesel engines. For example, 
if we propose provisions for nonroad diesel engines that address 
testing issues for these very large engines, we would likely propose 
those same provisions for Large SI engines.
    Test procedures related to evaporative emissions are described in 
Section V.C.4 above. In general, this involves measuring evaporative 
losses during a three-day period of cycling ambient temperatures 
between 72[deg] and 96[deg] F.
2. What Fuels Are Used During Emission Testing?
    For gasoline-fueled Large SI engines, we are adopting the same 
specifications we have established 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). These fuel 
specifications apply for both exhaust and evaporative emissions.
    For LPG, we are adopting the same specifications established by 
California ARB. We understand that in-use fuel quality for LPG 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 
Final 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. At certification manufacturers provide deterioration factors 
that take into account any effects related to the varying quality of 
commercially available fuels.
    For natural gas, we are adopting specifications similar to those 
adopted by California ARB. As described in the Summary and Analysis of 
Comments, we have adjusted some of the detailed specifications from the 
proposal to reflect new data submitted after the proposal regarding 
ranges of fuel properties reflecting current commercial fuels.
    Unlike California ARB, we apply the fuel specifications to testing 
only for emission measurements, not to service accumulation. Service 
accumulation between emission tests may involve certification fuel or 
any commercially available fuel of the appropriate type. We similarly 
allow manufacturers to choose between certification fuel and any 
commercial fuel for in-use measurements to show compliance with field-
testing emission standards.
    Since publishing the proposal, we learned about issues related to 
Large SI engines that operate around landfills or oil wells, where 
engines may burn naturally occurring gases that are otherwise emitted 
to the atmosphere. These gases generally consist of methane, but a wide 
range of other constituents may also be mixed in. As a result, engines 
may require adjustment over a wide range of settings for spark timing 
and air-fuel ratio to maintain consistent combustion. We generally 
believe that engine manufacturers should design their engines to 
operate with automatic feedback controls as much as possible to avoid 
the need for operators to manually adjust engines. However, in cases 
involving these noncommercial fuels, there is no way to improve the 
quality of the fuel to conform to any standardized specifications. 
Also, it is clearly preferred to capture and burn these gases than to 
emit them directly to the atmosphere, both to prevent greenhouse-gas 
emissions and to avoid wasting this source of fuel. To address this 
concern, we are adopting special provisions for engines burning 
noncommercial fuels if they are unable to meet emission standards over 
the full range of adjustability needed to accommodate the varying fuel 
properties. Manufacturers would show that these engines can meet 
emission standards using normal certification fuels, but the normal 
provisions related to adjustable parameters would not apply. To 
properly constrain this provision, we are including four requirements. 
First, manufacturers would need to add information on an engine label 
instructing operators how to make adjustments that would allow for 
maintained emission control and overall engine performance. Second, 
manufacturers would include additional label language to warn operators 
that the engine may be used only in applications involving 
noncommercial fuels. Third, manufacturers must separate these engines 
into a distinct engine family. Fourth, manufacturers must keep a record 
of individual sales of such engines.
3. Are There Production-Line Testing Provisions for Large SI Engines?
    The provisions described in Section II.C.4 apply to Large SI 
engines. These 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 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 do not require routine transient testing of 
production-line engines. Transient testing of production-line engines 
would add a substantial burden, since many manufacturers have limited 
emission-sampling capability at production facilities; also, these 
production facilities might be located at multiple sites. We believe 
that steady-state emission measurements will give a good indication of 
the manufacturers' ability to build engines consistent with the 
prototypes on which their certification data are based. We reserve the 
right, however, 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 recommend doing 
transient tests to better ensure that in-use tests will not reveal 
problems in controlling emissions during transient

[[Page 68300]]

operation. Manufacturers need not make any measurements to show that 
production-line engines meet field-testing emission standards.
    We expect manufacturers generally to certify their engines to the 
evaporative requirements using a design-based approach. Accordingly, 
the technologies we expect manufacturers to use for controlling 
evaporative emissions are not subject to variation as a result of 
production procedures, so we are not requiring production-line testing 
related to the evaporative requirements.
4. Are There 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 requiring engine manufacturers to 
conduct emission tests on a small number of field-aged engines to show 
they meet emission standards.
    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. Most 
companies will 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.
    Manufacturers in unusual circumstances may 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.
    While the regulations allow us to select an engine family every 
year from an engine manufacturer, there are several reasons why small-
volume manufacturers may 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 may provide adequate data to show 
compliance for that engine family for a number of years, provided that 
the manufacturer continues to produce those engines without 
significantly redesigning them in a way that might affect their in-use 
emissions performance and that we do not have other reason to suspect 
noncompliance. Also, where we have evidence that a manufacturer's 
engines are likely in good in-use compliance, we 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 may expect us to select their 
engine families less frequently, especially if other available data 
pointed toward in-use compliance. 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 is 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.
    As an alternative, manufacturers may use the specified equipment 
and procedures for testing engines without removing them from the 
equipment (referred to in this document as field testing). See Section 
V.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 is demonstrated by comparing the measured emission levels to 
the field-testing emission standards, which 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 are not eligible to participate in the in-use averaging, 
banking, and trading program (described below).
    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). Along with the in-use testing program, we would allow 
manufacturers to demonstrate that they have designed their engines to 
control emissions substantially below the emission standards that 
apply. If manufacturers are able to show that they have already been 
reducing emissions more than required by the standards, including 
appropriate consideration for deterioration and compliance margins, 
this may allow us to conclude that these accumulated additional 
emission reductions are sufficient to offset the high emissions from a 
failing engine family. In concept, this approach serves much like a 
banking program to recognize manufacturers' efforts to go beyond the 
minimum required emission reductions.
    This approach differs from the specific in-use emission-credit 
program that we proposed. This more general approach is preferred for 
two primary reasons. First, while we proposed to limit the in-use 
emission-credit program to transient testing in the laboratory, 
manufacturers will now be able to use emission data generated from 
field testing to characterize an engine family's average emission 
level. This becomes necessarily more subjective, but allows us to 
consider a wider range of information in evaluating the degree to which 
manufacturers are complying with emission standards across their 
product line. Second, this approach makes clearer the role of the 
emission credits in our consideration to recall failing engines. As we 
described in the proposal, we plan to consider average emission levels 
from multiple engine families in deciding whether to recall engines 
from a failing engine family. We therefore believe it is not 
appropriate to have a detailed emission-credit program defining 
precisely how and when to calculate, generate, and use credits that do 
not necessarily have value elsewhere.
    The regulations do not specify how manufacturers would generate 
emission credits to offset a nonconforming engine family. This gives us 
the ability to consider any appropriate test data in deciding what 
action to take. In generating this kind of information, some general 
guidelines would apply. For example, we would expect manufacturers to 
share test data from all engines and all engine families tested under 
the in-use testing program, including nonstandard tests that might be 
used to screen engines for later measurement. This allows us to 
understand the manufacturers' overall level of performance in 
controlling emissions to meet emission standards. Average emission 
levels should be calculated over a running three-year period to include 
a broad range of

[[Page 68301]]

testing without skewing the results based on old designs. Emission 
values from engines certified to different tiers of emission standards 
or tested using different measurement procedures should not be combined 
to calculate a single average emission level. Average emission levels 
should be calculated according to the following equation, rounding the 
results to 0.1 g/kW-hr:
[GRAPHIC] [TIFF OMITTED] TR08NO02.000

Where:
Average EL=Average emission level in g/kW-hr.
Salesi=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.
i(STD-CL)=The difference between the emission standard and 
the average emission level for an in-use testing family in g/kW-hr.
ULi=Useful life in hours.
Poweri=The sales-weighted average rated brake power for an 
engine family in kW.
LFi=Load factor or fraction of rated engine power utilized 
in use; use 0.50 for engine families used only in constant-speed 
applications and 0.32 for all other engine families.

    The anticipated crankcase and evaporative emission-control 
technologies generally are best evaluated simply by checking whether or 
not they continue to function as designed, rather than implementing a 
program to measure these emissions from in-use engines. As a result, we 
may inspect in-use engines to verify that these systems continue to 
function properly throughout the useful life, but are not requiring 
manufacturers to include crankcase or evaporative measurements as part 
of the in-use testing program described in this section.
5. What Are the Field-Testing Emission Standards and Test Procedures?
    To address concerns for controlling emissions outside of the 
certification duty cycles and to enable field-testing of Large SI 
engines, we are adopting 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, testing of 
in-use engines has shown that emissions can vary dramatically under 
certain modes of operation.
    Second, this provides a low-cost method of testing in-use engines, 
which facilitates in-use compliance programs.
    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 a framework for 
requiring that engines 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 
adopting supplemental emission standards that apply more broadly than 
the duty-cycle standard, as detailed below. These standards apply to 
all regulated pollutants (NOX, HC, and CO) under all normal 
operation (steady-state or transient). We exclude abnormal operation 
(such as very low average power and extended idling time), but do not 
restrict operation to any specific combination of speeds and loads. In 
addition, the field-testing standards 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. How do the field-testing standards apply? 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 adopting specific field-
testing standards for 2004 through 2006 model year engines, we will 
allow this as an option. In this case, manufacturers would conduct the 
field testing as described here to show that their engines meet the 5.4 
g/kW-hr HC+NOX standard and the 50 g/kW-hr CO standard. This 
may 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 expect any 
additional variability in field-testing measurements not to affect 
manufacturers' ability to meet the same emission standards.
    The 2007 field-testing standards are based on emission data 
measured on engines with the same emission-control technology used to 
establish the duty-cycle standards. As described above for the duty-
cycle standards, we are adopting a flexible approach to address the 
tradeoff between HC+NOX and CO emissions. Table V.D-1 shows 
the range of values that define the standard for showing compliance for 
field-testing measurements. The higher numerical values of the Tier 2 
standards for field testing (compared with duty-cycle testing) reflect 
the observed variation in emissions for varying engine operation, and 
the projected effects of ambient conditions on the projected 
technology. 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).

  Table V.D-1.--Samples of Possible Alternative Field-Testing Emission
                Standards for Large SI Engines(g/kW-hr) *
------------------------------------------------------------------------
                           HC+NOX                                 CO
------------------------------------------------------------------------
3.8.........................................................         6.5
3.1.........................................................         8.5
2.4.........................................................        11.7
1.8.........................................................        16.8
1.4.........................................................        23.1

[[Page 68302]]

 
1.1.........................................................       31
------------------------------------------------------------------------
* As described in the Final Regulatory Support Document and the
  regulations, the values in the table are related by the following
  formula: (HC+NOX) x CO0.791 = 16.78. These values follow directly from
  the logarithmic relationship presented with the proposal in the Draft
  Regulatory Impact Analysis.

    We generally require manufacturers to show at certification that 
they are capable of meeting all standards that apply for the useful 
life. 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, manufacturers must show in their 
application for certification that they are able to meet the field-
testing standards. Manufacturers must 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. Manufacturer will provide a detailed description of 
any testing, engineering analysis, and other information that forms the 
basis for the statement. This will 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 are 
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. Manufacturers 
must design their engines to broadcast instantaneous speed and torque 
values to the onboard computer and ensure that emission sampling is 
possible after engine installation.
    The test 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 may use the field-
testing equipment and procedures to get a low-cost, valid emission 
measurement at the production line. Manufacturers may also 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 II.C.4 
for more information.
    c. What limits are placed on field testing? The field-testing 
standards apply to all normal operation. This may 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 adopting several 
parameters to narrow the range of engine operation that is subject to 
the field-testing standards. For example, emission sampling for field 
testing does not include engine starting.
    Engines can often operate at extreme environmental and geographic 
conditions (temperature, altitude, etc.). To narrow the range of 
conditions for the design engineer, we are limiting 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.
    Some additional limits to define ``normal'' operation apply to 
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 field-testing standards is feasible. These 
restrictions apply to both variable-speed and constant-speed engine 
applications.
    First, measurements with more than 2 minutes of continuous idle are 
excluded. This means that an emission measurement from a forklift while 
it idled for 5 minutes will not be considered valid. On the other hand, 
an emission measurement from a forklift that idled for multiple 1-
minute periods 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 therefore do 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 is significantly less 
effective. 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, 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. The data presented in Chapter 4 
of the Final Regulator Support Document show that engines can meet the 
emission standards when operating above 5 percent of rated power.
    Third, some 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 adopting provisions allowing 
manufacturers to meet separate standards for these engines for steady-
state operation. For engines qualifying for these different steady-
state standards, we specify that a valid sample for field testing must 
include less than 10 percent of operation at 90 percent or more of 
maximum power. We 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 can 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. Manufacturers may request a different 
threshold to allow more open-loop operation. Before we approve such a 
request, the engine manufacturer would need to have a plan for ensuring 
that the engines in their final installation do not routinely operate 
at loads above the specified threshold.
    An additional parameter to consider is the minimum sampling time 
for field testing. A longer period allows for

[[Page 68303]]

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 applying 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 do not specify a maximum sampling time. We expect manufacturers 
testing in-use engines to select an approximate sampling time before 
measuring emissions; however, the standards apply for any sampling time 
that meets the minimum. When selecting an engine family for the in-use 
testing program, we will develop a plan with direction related to the 
way manufacturers conduct the emission-sampling effort, such as 
sampling time or specific types of engine operation, to ensure that 
testing provides relevant data.
    d. How do I test engines in the field? To test engines without 
removing them from equipment, analyzers are connected to the engine's 
exhaust to detect emission concentrations during normal operation. 
Exhaust volumetric flow rate and continuous power output are also 
needed to convert the analyzer responses to units of g/kW-hr for 
comparing to emission standards. These values can be calculated from 
measurements of the engine intake flow rate, the exhaust air-fuel ratio 
and the engine speed, and from torque information.
    Available small analyzers and other equipment may be adapted for 
measuring emissions from field equipment. A portable flame ionization 
detector can measure total hydrocarbon concentrations. Methane 
measurement currently requires more expensive laboratory equipment that 
is impractical for field measurements. Field-testing standards are 
therefore be based on total hydrocarbon emissions. A portable analyzer 
based on zirconia technology measures NOX emissions. A 
nondispersive infrared (NDIR) unit can measure CO. Emission samples can 
best be drawn from the exhaust flow directly downstream of the catalyst 
material to avoid diluting effects from the end of the tailpipe. 
Installing a sufficiently long tailpipe extension is also an acceptable 
way to avoid dilution. Mass flow rates also factor into the torque 
calculation; this may 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. Manufacturers must 
therefore design their engines to continuously monitor engine speed and 
torque. The tolerance for speed measurements, which is relatively 
straightforward, is +/-5 percent. For torque, the onboard computer 
needs to convert measured engine parameters into useful units. 
Manufacturers generally will 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, manufacturers must 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 Final Regulatory Support Document.

E. Special Compliance Provisions

    We are adopting hardship provisions to address the particular 
concerns of small-volume manufacturers, which generally have limited 
capital and engineering resources. These hardship provisions are 
generally described in Section VII.C. For Large SI engines, we are 
adopting a longer available extension of the deadline, up to four 
years, for meeting emission standards for companies that qualify for 
special treatment under the hardship provisions. We will, however, not 
extend the deadline for compliance beyond the four-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.
    We are not finalizing the proposed interim emission standards 
proposed for small-volume manufacturers. We believe we can accomplish 
the same objectives with more flexibility, and potentially with greater 
net emission reductions, by relying on the hardship provisions.
    In addition, we are waiving the requirement for small-volume 
manufacturers to broadcast engine speed and torque values. These 
companies may choose to do this to enable field-testing of their 
products, but may be constrained in developing this capability to the 
extent that they rely on component suppliers to provide systems that 
meet EPA requirements.

F. Technological Feasibility of the Standards

    We are adopting 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 is not 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.
    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 Final 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 
emission standards nationwide in 2004 will therefore generally require 
manufacturers only to produce greater numbers of the engines complying 
with the California standards.
    Chapter 4 of the Final Regulatory Support Document further 
describes data and rationale showing why we believe that the 2007 model 
year emission standards under the steady-state and transient duty-
cycles and field-testing procedures are feasible. In

[[Page 68304]]

summary, testing from Southwest Research Institute 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 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 does not allow manufacturers enough stability between 
introduction of different phases of emission standards to prepare for 
complying with the full set of requirements in this final rule and to 
amortize their fixed costs. 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 new standards including new test cycle requirements. The 
provisions to allow ``family banking'' for early compliance provide an 
additional tool for companies that choose to spread out their design 
and certification efforts.
    The new emission standards will either have no impact or a positive 
impact with respect to noise, energy, and safety, as described in 
Chapter 4 of the Final Regulatory Support Document. In particular, the 
anticipated fuel savings associated with the expected emission-control 
technologies will 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 
near-term and long-term emission standards allows manufacturers enough 
time to optimize these designs to most effectively reduce emissions 
from the wide range of Large SI equipment applications.

VI. Recreational Marine Diesel Engines

    This section describes the new provisions for 40 CFR part 94, which 
apply to engine manufacturers and importers. We are applying the same 
general compliance provisions from 40 CFR part 94 for engine 
manufacturers, equipment manufacturers, operators, rebuilders, and 
others. See Section II for a description of our general approach to 
regulating nonroad engines and how manufacturers show that they meet 
emission standards.

A. Overview

    We are adopting exhaust and crankcase emission standards for 
recreational marine diesel engines with power ratings greater than or 
equal to 37 kW. We are adopting emission standards for HC, 
NOX, CO, and PM beginning in 2006. We believe manufacturers 
will be able to use technology developed for land-based nonroad and 
commercial marine diesel engines. To encourage the introduction of low-
emission technology, we are also adopting voluntary ``Blue Sky'' 
standards which are 40 percent lower than the mandatory standards. We 
also recognize that there are many small businesses that manufacture 
recreational marine diesel engines. We are therefore including several 
regulatory options for small businesses that will help minimize any 
unique burdens caused by emission regulations.
    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 Rule

    The standards in this section apply to recreational marine diesel 
engines. We excluded these engines from the requirements applying to 
commercial marine diesel engines because at the time we thought their 
operation in planing mode might impose design requirements on 
recreational boat builders and to allow us more time for further 
evaluation prior to setting standards (64 FR 73300, December 29, 1999). 
Commercial marine vessels tend to be displacement-hull vessels, 
designed and built for a unique commercial application (such as towing, 
fishing, or general cargo). Power ratings for engines used on these 
vessels are analogous to land-based applications, and these engines 
generally have warranties for 2,000 to 5,000 hours of use. Recreational 
vessels, on the other hand, tend to be planing vessels. 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, so recreational marine engines have shorter warranties than 
their commercial counterparts. In our previous rulemaking, recreational 
engine industry representatives raised concerns about the ability of 
these engines to meet the commercial standards without substantial 
changes in the size and weight of the engine. Such changes may 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 with fiberglass molds, this may be a significant burden for 
recreational vessel builders.
    Our further evaluation of these issues leads us to conclude that 
recreational marine diesel engines can achieve those same emission 
standards without significant impacts on engine size and weight, and 
therefore without significant impacts on vessel design. Section VI.G of 
this document, Chapters 3 and 4 of the Final Regulatory Support 
Document, and Section II.A of the Summary and Analysis of Comments 
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 establishing a separate 
regulatory program for recreational marine diesel engines in this rule, 
with most aspects the same as for commercial marine diesel engines but 
with certain aspects of the program tailored to these applications, 
notably the not-to-exceed emissions requirements.
    To distinguish between commercial and recreational marine diesel 
engines for the purpose of emission controls, it is necessary to define 
``recreational marine diesel engine.'' The commercial marine diesel 
engine rule defined recreational marine engine as 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

[[Page 68305]]

VIOLATION OF FEDERAL LAW SUBJECT TO PENALTY.''
    We are revising this definition to include a requirement that a 
recreational marine engine must be a Category 1 marine engine (have a 
displacement of less than 5 liters per cylinder). Category 2 marine 
engines are generally designed with characteristics similar to 
commercial marine engines. Vessels using engines of this size generally 
require engines that can operate longer at higher power than typical 
recreational boats; therefore, these engines generally have a lower 
power density and are not offered in a ``recreational'' rating.
    For the purpose of the recreational marine diesel engine definition 
included in the proposal, 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.'' Because certain vessels that are used for pleasure 
may have operating characteristics that are more similar to commercial 
marine vessels (such as 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'' does 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 that carry one or more passengers; or (3) 
vessels used solely for competition. For the purposes 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 this rulemaking on these 
definitions. Engine manufacturers were concerned that the definitions 
may be unworkable for engine manufacturers, because 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 corresponding characteristics for planing, 
power density, and performance requirements.
    We are not revising our existing definition of recreational marine 
vessel. As discussed in the Summary and Analysis of Comments, a vessel 
will be considered recreational if the boat builder intends that the 
customer will operate it consistent with the recreational-vessel 
definition. Relying on the boat builder's intent is necessary because 
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. The engine manufacturer will not be 
expected to ensure that their engines are used only in recreational 
craft; however, they would be required to label their recreational 
engines as described above. The vessel builders will then be required 
to install properly certified recreational (or commercial) marine 
engines in recreational vessels and certified commercial marine engines 
in commercial vessels.

C. Emission Standards for Recreational Marine Diesel Engines

    This section describes the new emission standards and 
implementation dates, with an outline of the technology that can be 
used to achieve these levels. The technological feasibility discussion 
below (Section VI.G) describes our technical rationale in more detail.
1. What Are the Emission Standards and Compliance Dates?
    The emission standards for recreational marine diesel engines are 
the same as the Tier 2 standards for commercial marine diesel engines 
with two years additional lead time. We are setting the standards at 
the same level because recreational marine diesel engines can use all 
the technologies projected for Tier 2 and these technologies are 
expected to lead to compliance. As with commercial marine engines this 
technology will be available in the lead time provided to allow 
compliance with the emission standards. 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. However, the technology listed 
above can be used to meet the emission standards while still meeting 
the performance requirements of a recreational engine.
    We are adopting the commercial marine engine standards for 
recreational marine diesel engines, allowing two years beyond the dates 
that standards apply for the commercial engines. This gives engine 
manufacturers additional lead time in adapting technology to their 
recreational marine diesel engines. For manufacturers producing only 
recreational marine engines the implementation dates provide three to 
six years of lead time beyond this notice. Based on our evaluation of 
the industry, we believe that manufacturers who produce only 
recreational marine engines would likely be small businesses and would 
have the option of additional lead time, and other flexibility, as 
discussed in Section VI.E. The emission standards and implementation 
dates for recreational marine diesel engines are presented in Table 
VI.C-1. The subcategories refer to engine displacement in liters per 
cylinder.

              Table VI.C-1.--Recreational Marine Diesel Emission Standards and Implementation Dates
----------------------------------------------------------------------------------------------------------------
                                                   HC+NOX  g/kW-                                  Implementation
                   Subcategory                          hr          PM  g/kW-hr     CO g/kW-hr         date
----------------------------------------------------------------------------------------------------------------
power = 37 kW disp < 0.9.............             7.5            0.40             5.0            2007
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 68306]]

    Manufacturers commented that engines with less than 2.5 liters per 
cylinder, but more than 560 kW would have no lead time beyond the land-
based nonroad diesel engine standards and that some commercial marine 
engines in this category would actually have to certify two years 
before nonroad engines. In this case this is caused by the way we 
define subclasses, but has technology and cost implications for the 
engines involved. To address this, we are providing an optional 
implementation date of 2008 for certain commercial and recreational 
marine engines (see the Summary and Analysis of Comments for more 
detail). To be eligible for this option, the engine must be derived 
from a land-based nonroad engine with a rated power greater than 560 kW 
and have a displacement of 2.0 to 2.5 liters per cylinder. To use this 
option, we are requiring that engines certified under this option meet 
an HC+NOX standard of 6.4 g/kW-hr through model year 2012. 
We believe this emission level, which matches the Tier 2 level for 
land-based nonroad engines, should be achievable given the extra lead 
time for development. Testing would still be performed on the 
appropriate marine duty cycles. Based on our analysis in the Final 
Regulatory Impact Analysis for commercial marine engines, 
HC+NOX emissions measured over the marine duty cycles should 
be similar to those measured over the land-based nonroad duty cycle.
    We are also adopting not-to-exceed emission standards and related 
requirements similar to those finalized for commercial marine diesel 
engines. This is discussed below in Section VI.C.8.
2. Will I Be Able To Average, Bank, or Trade Emissions Credits?
    Manufacturers may use emission credits from recreational marine 
diesel engines to show that they meet emission standards. Section 
II.C.3 gives an overview of the emission-credit program, which is 
consistent with what we have adopted for Category 1 commercial marine 
diesel engines. The emission-credit program covers HC+NOX 
and PM emissions, but not CO emissions.
    Consistent with our land-based nonroad and commercial marine diesel 
engine regulations, manufacturers may not simultaneously generate 
HC+NOX credits while using 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 are adopting 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 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 may cause increased emissions in areas such as ports that may 
have a need for PM or NOX emission reductions. Nonetheless, 
it is acknowledged that recreational marine diesel engines constitute a 
small fraction of PM and HC + NOX emissions in nonattainment 
areas.
    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 more options in 
implementing their engine designs. However, if we revisit these 
standards later, we will have to reevaluate this issue in the context 
of whether future advances in technology would result in a large amount 
of accumulated credits that would adversely impact the timely 
implementation of any new requirements.
    Consistent with the land-based nonroad diesel rule, we will also 
not allow manufacturers to use credits generated on land-based engines 
for demonstrating compliance with marine diesel engines. In addition, 
credits may not be exchanged between recreational and commercial marine 
engines. The emission standards for recreational engines are based on 
the baseline levels of current recreational marine engines and the 
capability of technology to reduce emissions from recreational marine 
engines. The standard is, therefore, premised on the capability and use 
of recreational marine technology and not on the capability and use of 
technology on other engines. Emissions from land-based, commercial, and 
recreational marine engines are measured over different duty cycles and 
have different useful lives. Correction factors would be difficult to 
generate and they would add complexity and uncertainty to the value of 
the credits. Furthermore, we are concerned that allowing cross program 
trading could create an inequity between manufacturers with diverse 
product lines and those with more limited offerings, thereby 
potentially creating a competitive advantage for diverse companies over 
small companies selling only recreational marine engines. If a 
manufacturer were to do this, we do not believe it is likely that they 
would sell emission credits at a price that would be economical for 
small manufacturers.
    We will allow early banking of emission credits relative to the 
standard. Early banking of emission credits may allow for a smoother 
implementation of the recreational marine standards. These credits are 
generated relative to the new emission standards and are undiscounted.
    We will also allow manufacturers to generate early credits relative 
to their pre-control emission levels. If manufacturers choose this 
option they will have to develop baseline emission levels specific to 
each participating engine family. 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 certify to 
the standards to generate credits, but the credits will be calculated 
relative to the generated baseline rather than the standards. 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 as well as other sources of potential uncertainty 
about the representativeness if the baseline. Manufacturers commented 
that credits should not be generated under the early banking program 
for the portion of NOX reductions above the MARPOL Annex VI 
standard. We believe this approach is reasonable since this should be a 
common upper limit for all engines. Therefore, if manufacturers use 
this option, any baseline NOX levels determined to be above 
the MARPOL Annex VI standard must be adjusted to that level for 
determining early credits.
3. Is EPA Proposing Voluntary Standards for These Engines?
    a. Blue Sky. We are adopting voluntary emission standards based on 
a 45-percent reduction beyond the mandatory standards. An engine family 
meeting the voluntary standards

[[Page 68307]]

qualifies for designation as Blue Sky Series engines. These voluntary 
standards are the same as those adopted for commercial marine diesel 
engines (see Table VI.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 that apply to 
this category of engines, including allowable maintenance, warranty, 
useful life, rebuild, and deterioration factor provisions. This program 
is effective immediately when we publish this rule. To maximize the 
potential for other groups to create incentive programs, without 
double-counting, we do not allow manufacturers to earn marketable 
credits for their Blue Sky Engines.

  Table VI.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 displ.<0.9...............        4.0       0.24
0.9<=displ.<1.2...................................        4.0       0.18
1.2<=displ.<2.5...................................        4.0       0.12
2.5<=displ........................................        5.0       0.12
------------------------------------------------------------------------

    b. MARPOL Annex VI. The MARPOL Annex VI standards are for 
NOX emissions from marine diesel engines rated above 130 kW. 
We encourage engine manufacturers to make Annex VI-compliant engines 
available and boat builders to purchase and install them before we 
apply the EPA Tier 2 standards. If the treaty enters into force, the 
standards 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.
4. What Durability Provisions Apply?
    Several provisions help ensure that engines control emissions 
throughout a lifetime of operation. Section II.C gives a general 
overview of durability provisions associated with emissions 
certification. This section discusses these provisions specifically for 
recreational marine diesel engines.
    a. How long do my engines have to comply? Manufacturers must 
produce engines that comply over a useful life of ten years or until 
the engine accumulates 1,000 operating hours, whichever occurs first. 
The hours requirement is a minimum value for useful life, and 
manufacturers must 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 
1,000 hour value, we will consider evidence such as whether the engines 
continue to reliably deliver the necessary power output without an 
increase in fuel consumption that the user would find unacceptable and 
thus might trigger a maintenance or rebuild action by the user.
    b. How do I demonstrate emission durability? We are extending the 
durability demonstration requirements for commercial marine diesel 
engines to also cover recreational marine diesel engines. This means 
that recreational marine engine manufacturers, using good engineering 
judgment, will generally need to test one or more engines for emissions 
before and after accumulating the number of hours consistent with the 
engine useful life (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 may 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 also specify that manufacturers must collect durability data and 
generate deterioration factors using the same methods established for 
commercial marine diesel engines. 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. Under 40 CFR 94.220, 
manufacturers may project deterioration rates from engines with an 
accumulation of less than 1,000 hours, as long as the amount of service 
accumulation completed and projection procedures are determined using 
good engineering judgment.
    c. What maintenance may be done during service accumulation? For 
engines certified to a 1,000-hour useful life, the only maintenance 
that may be done must be: (1) Regularly scheduled, (2) unrelated to 
emissions, and (3) technologically necessary. This typically includes 
changing engine oil, oil filter, fuel filter, and air filter. For 
recreational marine diesel engines certified to longer lives, these 
engines will be subject to the same minimum allowable maintenance 
intervals as commercial marine engines. These intervals and the 
allowable maintenance are specified in 40 CFR 94.211.
    d. Are there production-line testing provisions? We are adopting 
the production-line testing requirements from commercial marine engines 
for recreational marine diesel engines, with the additional provisions 
described in II.C.4. A manufacturer must test one percent of its total 
projected annual sales of Category 1 engines each year to meet 
production-line testing requirements. We are not adopting a minimum 
number of tests, so a manufacturer who produces no more than 100 marine 
diesel engines is not required to do any production-line testing. 
Similar to the commercial marine requirements, manufacturers have the 
option of using alternative production-line testing programs with EPA 
approval.
    Manufacturers commented that we should limit the number of engines 
tested for a given engine family to five, arguing that five engines 
would be sufficient to demonstrate compliance with the standards. 
Although there isn't necessarily an engineering rationale for capping 
the number of tests for each engine family to five, we believe that 
statistical certainty can be determined using the Cumulative Sum method 
described for recreational vehicles in 40 CFR part 1051, subpart D. 
Therefore, we are providing the option of using the Cumulative Sum 
method for determining sample sizes under the production-line testing 
program. For marine engines, PM would need to be included in this 
methodology. Under the Cumulative Sum method, a statistical analysis is 
applied to test results to establish the number of tests needed. This 
may limit the number of engines tested to less than 1 percent of the 
production volume in cases where there is low variability in the test 
data.
5. Do These Standards Apply to Alternative-Fueled Engines?
    These new standards apply to all recreational marine diesel 
engines, without regard to the type of fuel used. While we are not 
aware of any alternative-fueled recreational marine diesel engines 
currently being sold into the U.S. market, alternate forms of the 
hydrocarbon standards address the potential for natural gas-fueled and

[[Page 68308]]

alcohol-fueled engines. In our regulation of highway vehicles and 
engines, we determined that nonmethane standards should be used in 
place of total hydrocarbon standards for engines fueled with natural 
gas (which is comprised primarily of methane) (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 are applying HC-equivalent (HCE) standards instead of 
total hydrocarbon standards to alcohol-fueled highway engines and 
vehicles (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. Alcohol-fueled recreational 
marine engines must therefore comply with total hydrocarbon equivalent 
(THCE) plus NOX standards instead of THC plus NOX 
standards.
6. Is EPA Controlling Crankcase Emissions?
    Manufacturers must prevent crankcase emissions from recreational 
marine diesel engines, with one exception. Turbocharged recreational 
marine diesel engines may be built with open crankcases, as long as the 
crankcase ventilation system allows for 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 do 
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. These provisions are 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 adopting 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 that applying PM standards will have 
the effect of limiting smoke emissions as well.
8. What Are the Not-To-Exceed Standards and Related Requirements?
    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 emission 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 applying 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 and modulate the emission-control system when the engine is 
not being tested for emissions and increases the emissions from the 
engine would be an example of a defeat device, regardless of the 
emissions performance of the engine with regard to the standards.
    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 rocedure, so it does not 
have the clear objectivity and ready enforceability of a numerical 
standard and test procedure. As a result, relying on just a using a 
standardized test procedure and the defeat device prohibition 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 intended to characterize typical marine engine 
operation for this industry, we are concerned that an engine designed 
to the duty cycle may not necessarily perform the same way over the 
range of speed and load combinations normally seen on a boat nor will 
it always follow the average curve. These duty cycles are based on an 
average propeller curve, but a propulsion marine engine may never be 
fitted with an ``average propeller.'' In addition, even if fitted with 
an ``average propeller,'' 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 normally 
seen on boats, we are establishing a zone under the engine's power 
curve where the engine may not exceed a specified emission limit. This 
limit applies to all of the regulated pollutants under steady-state 
operation. Testing in this ``not-to-exceed'' (NTE) zone may include the 
whole range of real ambient conditions. The NTE zone, limit, and 
ambient conditions are described below.
    We believe there are significant advantages to taking this 
approach. The test procedure is flexible enough to 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, a standard that requires laboratory testing makes it harder to 
perform in-use testing because either the engines must be removed from 
the vessel or laboratory-type conditions must be achieved on the 
vessel. With the NTE approach, in-use testing becomes much easier to 
implement 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 in terms of what control is 
expected in-use versus over a fixed laboratory test procedure.
    Even with the NTE requirements, we believe it is 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. We believe

[[Page 68309]]

basing the emission standards on a distinct cycle and using the NTE 
zone to better 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.
    As described in the Summary and Analysis of Comments, the same 
technology that can be used to meet the standards over the E5 duty 
cycle can be used to meet the NTE caps in the NTE zone. We therefore do 
not expect these standards to cause recreational marine diesel engines 
to need more advanced technology that is used by the nonroad and 
commercial marine engines from which they are derived. We do not 
believe the NTE concept results in a large amount of additional 
testing, because these engines should be designed to perform as well in 
use as they do over the steady-state five-mode certification test. 
However, our cost analysis in Chapter 5 of the Final Regulatory Support 
Document accounts for some additional testing, especially in the early 
years, to provide manufacturers with assurance that their engines will 
meet the NTE requirements.
    b. Shape of the NTE zone. Figure VI.C-1 illustrates the NTE zone 
for recreational marine diesel engines. We based this zone on the range 
of conditions that these engines might typically see in use. Also, we 
divide the zone into subzones of operation which have different limits 
as described below. Chapter 4 of the Final Regulatory Support Document 
describes the development of the boundaries and conditions associated 
with the NTE zone. The NTE zone for recreational marine diesel engines 
is the same for commercial marine diesel engines operating on a 
propeller curve, except that an additional subzone is added at speeds 
over 95 percent of rated to address the typical recreational design for 
higher rated power.

BILLING CODE 6560-50-P

[[Page 68310]]

[GRAPHIC] [TIFF OMITTED] TR08NO02.002

BILLING CODE 6560-50-C
    EPA may approve adjustments to the size and shape of the NTE zone 
for certain engines if the manufacturer demonstrates that the engine 
will not see operation outside of the revised NTE zone in use. This 
way, manufacturers can avoid having to test their engines under 
operation that they will not see in use. However, manufacturers are 
responsible for ensuring that their specified operation represents 
real-world operation. In addition, if a manufacturer designs an engine 
for operation at speeds and loads outside of the NTE zone (i.e., 
variable-speed engines used with variable-pitch propellers), the 
manufacturer is responsible for notifying us, so the NTE zone for that 
engine family can be modified to include this operation.
    c. Transient operation. NTE testing includes only steady-state 
operation with a minimum sampling time of 30 seconds. We specify the 
ISO E5 steady-state duty cycle for showing compliance with average 
emission standards. The goal of adopting NTE standards and

[[Page 68311]]

procedures is to cover the operation away from the five modes that are 
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 is likely 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 
or to set an NTE standard for transient operation. We are aware that 
the high-load transient operation seen when a boat comes to plane is 
not included in the NTE zone as defined, even if we were to require 
compliance with NTE standards during transient operation. We are also 
aware that these speed and load points cannot be achieved under steady-
state operation for a properly loaded boat in use. 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. Also, an engine designed, with multiple injection timing 
maps based on operation, to operate at higher emissions during 
transient operation than during steady-state testing would be in 
noncompliance with our defeat device prohibition.
    d. Emission standards. We are requiring emissions caps for the NTE 
zones that represent a multiplier times the weighted test result used 
for certification for all of the regulated pollutants 
(HC+NOX, CO, and PM). This is consistent with the concept of 
a weighted modal emission test such as the steady-state tests included 
in this rule. The standard itself is intended to represent the average 
emissions under steady-state conditions. Because it is an average, some 
points can be higher, some lower, and the manufacturer will design to 
maximize performance and still meet the engine standard. The NTE limit 
is on top of this. It is designed to make sure that no part of the 
engine operation and that no application goes too far from the average 
level of control.
    Consistent with the requirements for commercial marine engines, 
recreational marine diesel engines must meet a cap of 1.50 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 1.20 times 
the certified levels at or above 45 percent of rated power. However, we 
are applying an additional subzone at speeds greater than 95 percent of 
rated, with a corresponding standard of 1.50 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. 
Chapter 4 of the Final Regulatory Support Document provides more detail 
on how we determined the standards.
    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. 
Engine starting is not included in NTE testing. In addition, 
manufacturers 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 applying 
the commercial marine engine ranges for these variables. Chapter 4 of 
the Final 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 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.\84\
---------------------------------------------------------------------------

    \84\ The range of intake air temperature is 13 to 30[deg]C for 
engines that draw air from outside the engine room.
---------------------------------------------------------------------------

    f. Certification. At the time of certification, manufacturers must 
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 also provides a detailed 
description of all testing, engineering analysis, and other information 
that forms the basis for the statement. This statement may be based on 
testing other research that validly supports such a statement, 
consistent with good engineering judgment. EPA may review the basis of 
this statement during the certification process.

D. Testing Equipment and Procedures

    The regulations detail specifications for test equipment and 
procedures that apply generally to commercial marine engines (including 
NTE testing) in 40 CFR part 94. We have based the recreational marine 
diesel engine test procedures on this part. Section VIII gives a 
general discussion of 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 Regulatory Support Document describes these duty cycles in 
greater detail. In addition to the information provided above, the 
following section discusses issues concerning test equipment and 
procedures.
1. Which Duty Cycles Are Used To Measure Emissions?
    For recreational marine diesel engines, we specify 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 
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 Final 
Regulatory Support Document provides further detail on the ISO E5 duty 
cycle.
2. What Fuels Will Be Used During Emission Testing?
    We are applying the same specifications for recreational marine 
diesel engines that we established 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 regular 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 Does In-Use Testing Work?
    In-use testing on marine engines may be used 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 plan to use field-testing data in two ways. First, we may use it 
as a screening tool, with follow-up laboratory testing over the ISO E5 
duty cycle or NTE zone where appropriate. Second, we may use the data 
directly as a basis for compliance determinations,

[[Page 68312]]

as long as field-testing equipment and procedures are capable of 
providing reliable information from which conclusions can be drawn 
regarding what emission levels would be with laboratory-based 
measurements. Because it would likely be difficult to match the E5 test 
points exactly on an engine in use on a vessel, NTE zone testing will 
reduce the difficulty of in-use compliance determinations.
    For marine engines that expel exhaust gases underwater or mix their 
exhaust with water, manufacturers must 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. This provision is 
intended to simplify in-use testing. In cases where the engine 
manufacturer does not supply enough of the exhaust system to add a 
sample port, the engine manufacturer would be required to provide 
installation instructions for a sample port. Vessel manufacturers would 
be required to follow this and any other emission-related installation 
instructions.
    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. To assist in this testing, engines 
with electronic controls will be required to broadcast engine torque 
(as percent of maximum) and engine speed on their controller area 
networks.
4. How Is the Maximum Test Speed Determined?
    To ensure that a manufacturer's declared maximum speed is 
representative of actual engine operating characteristics and is not 
improperly used to influence the parameters under which their engines 
are certified, we are applying the definition of maximum test speed 
used for commercial marine engines. This definition of maximum test 
speed is the single point on an engine's normalized maximum power 
versus speed curve that lies farthest away from the zero-power, zero-
speed point.
    In establishing this definition of maximum test speed, it was our 
intent to specify the highest speed at which the engine is likely to be 
operated in use. Under normal circumstances this maximum test speed 
should be close to the speed at which peak power is achieved. However, 
as some manufacturers indicated in their comments, it is possible under 
this definition for the maximum test speed to be very different than 
the speed at which peak power is achieved. This could result in the 
certification test cycle and the NTE zone (which are both defined in 
part by the maximum test speed) being unrepresentative of in-use 
operation. Since we were aware of this potential during the development 
of the commercial marine regulations, we included two provisions to 
address issues such as these. First, Sec.  94.102 allows EPA to modify 
test procedures in situations where the specified test procedures would 
otherwise be unrepresentative of in-use operation. Thus, in cases in 
which the definition of maximum test speed resulted in an engine speed 
that was not expected to occur with in-use engines, we would work with 
the manufacturers to determine the maximum speed that would be expected 
to occur in-use.
    Second, Sec.  94.106(c)(2) allows EPA to specify during 
certification a broader NTE zone to include actual in-use operation. In 
those cases where we could not specify a single maximum test speed 
under Sec.  94.102 that would sufficiently cover the range of in-use 
engine speeds, we would specify a broader NTE zone. For example, we 
would generally expect that the NTE zone would include the peak power 
point. If the maximum test speed derived under Sec. Sec.  94.102 and 
94.107 resulted in an NTE zone that did not include the peak power 
point, we would likely specify that the NTE zone be broadened to 
include that point. Similarly, we would expect that a manufacturer's 
advertised rated power/speed point should be within the NTE zone, and 
could broaden the NTE zone to include that point as well.

E. Special Compliance Provisions

    The provisions discussed here are designed to minimize regulatory 
burdens on manufacturers needing added flexibility to comply with 
emission standards. These manufacturers include engine dressers, small-
volume engine marinizers, and small-volume boat builders. Commenters 
generally supported these provisions as proposed.
1. What Are the 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 might 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 (such as sea 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 
requirements.
    To clarify the responsibilities of engine dressers under this rule, 
we will not treat them as a manufacturer of a recreational marine 
diesel engine and therefore they would not be required to obtain a 
certificate of conformity, as long as they meet the following seven 
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, 40 CFR part 89, or 40 CFR part 92, respectively, or 
a marine diesel engine certified pursuant to this part.
    (2) The base engine's emissions, for all pollutants, must meet 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 do 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

[[Page 68313]]

necessary to ensure appropriate use of the exemption.
    Any engine dresser not meeting all these conditions will be 
considered an engine manufacturer and will accordingly need to obtain a 
certificate of conformity for these new engines, consistent with this 
rule's provisions, and label the engine showing that it is available 
for use as a marine engine.
    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. For an engine dresser complying 
with the above provisions, the original certificate would remain in 
effect and the certifier of the engine would remain liable for the 
emissions performance of the engine.
2. What Special Provisions Is EPA Adopting for Small Entities?
    In addition to provisions for engine dressers, we are also 
finalizing special provisions designed to provide flexibility to small 
entities. Prior to the proposal, we conducted an inter-agency Small 
Business Advocacy Review Panel as described in Section XI.C. 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 rule. The inter-agency panel's 
recommendations were proposed by EPA and are now being finalized as 
proposed. The following sections describe these provisions.
3. What Are the Burden Reduction Approaches for Small-Volume Engine 
Marinizers?
    We are providing additional 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 are defining a small-volume 
engine manufacturer based on annual U.S. sales of engines and are 
providing the additional options on this basis rather than on business 
size in terms of number of employees, revenue, or other such measures. 
The production count we are using includes all engines (automotive, 
other nonroad, etc.) and not just recreational marine engines. We 
consider recreational marine diesel engine manufacturers to be small 
volume for purposes of this provision if they produce fewer than 1,000 
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 1,000 engines as a limit because it 
groups together all the marinizers most needing relief, while still 
allowing for reasonable sales growth.
    The options for small-volume marinizers are discussed below.
    a. Broaden engine families. We have established engine criteria for 
distinguishing between engine families, which is intended to divide a 
manufacturer's product line into multiple engine families. We are 
allowing 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 option 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 use a single engine in the first year to certify their 
whole product line. As for large companies, the small-volume 
manufacturers could then carry-over data from year to year until 
changing engine designs in a way that might significantly affect 
emissions.
    We understand that this option alone still requires a certification 
test and the associated burden for small-volume manufactures. 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. We are requiring testing 
because we need a reliable, test-based technical basis to issue a 
certificate for these engines. Manufacturers will be able to use carry-
over to spread costs over multiple years of production.
    b. Minimize compliance requirements. Production-line and 
deterioration testing requirements do not apply to small-volume 
marinizers. We will 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.
    c. Expand engine dresser flexibility. We are expanding 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.
    d. Streamlined certification. We will allow small-volume marinizers 
to certify to the not-to-exceed (NTE) requirements with a streamlined 
approach. We believe small-volume marinizers can make a satisfactory 
showing that they meet NTE standards with limited test data. Similar to 
the standard NTE program, once these manufacturers test engines over 
the five-mode certification duty cycle (E5), they can use those or 
other test points to extrapolate the results to the rest of the NTE 
zone. For example, an engineering analysis may 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, keeping all four test modes of the E5 cycle within the NTE 
standards will 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.
    e. Delay standards for five years. Applying a five-year delay, the 
standards take effect from 2011 to 2014 for small-volume marinizers, 
depending on engine size. Marinizers may apply this five-year delay to 
all or just a portion of their production. They may 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. Boat builders may 
use these uncertified engines in their vessels.
    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 emission standards. This additional time will 
allow small-volume marinizers to obtain and implement proven, cost-
effective emission-control technology.
    f. Hardship provisions. We are adopting two hardship provisions for 
small-volume marinizers. Marinizers may apply for this relief on an 
annual basis. First, small marinizers may petition us for additional 
time to comply with the standards. The marinizer must show that it has 
taken all possible steps to comply but the burden of compliance costs 
will have a

[[Page 68314]]

major impact on the company's solvency. Also, if a certified base 
engine is available, the marinizer must generally use this engine. We 
believe this provision will protect small-volume marinizers from undue 
hardship due to certification burden. Also, some emission reduction can 
be gained if a certified base engine becomes available.
    Second, small-volume marinizers may 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 will have a major impact on the company's 
solvency. We consider this relief mechanism to be an option of last 
resort. We believe this provision will protect small-volume marinizers 
from circumstances outside their control. We, however, intend to not 
grant hardship relief if contract problems with a specific company 
prevent compliance for a second time.
    Although the inter-agency panel did not specify a time limit for 
these hardship provisions, and we are not finalizing any such time 
limits, we envision these hardship provisions as transitional in 
nature. We would expect their use to be limited to the early years of 
the program, in a similar time frame as we are establishing for the 
recreational vehicle hardship provisions, as discussed in Section 
VII.C.
4. What Are the Burden Reduction Approaches for Small-Volume Boat 
Builders Using Recreational Marine Diesel Engines?
    The inter-agency panel also recommended burden reduction approaches 
for small-volume boat builders. The recommendations were based on the 
concerns that, although boat builders are not subject to the engine-
based emission standards, they are required to use certified engines 
and may need to redesign engine compartments on some boats if engine 
designs were to change significantly. EPA proposed the flexibilities 
recommended by the panel and are finalizing them as proposed.
    We are adopting four options for small-volume vessel manufacturers 
using recreational marine diesel engines. These options are intended to 
reduce the burden on companies for which fixed costs cannot be 
distributed over a large number of vessels. As proposed, we are 
therefore defining a small-volume boat builder as one that produces 
fewer than 100 boats for sale in the U.S. in one year and has fewer 
than 500 employees. The production count includes all engine-powered 
recreational boats. These options may be used at the manufacturer's 
discretion. The options for small-volume boat builders are discussed 
below.
    a. Percent-of-production delay. Manufacturers with a written 
request from a small-volume boat builder and prior approval from us may 
produce a limited number of uncertified recreational marine diesel 
engines. From 2006 through 2010, small-volume boat builders may 
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 will give small boat 
builders an option to delay using new engine designs for a portion of 
business. Engines produced under this flexibility must be labeled 
accordingly so that customs inspectors know which uncertified engines 
can be imported. We continue to believe this approach is appropriate 
and are finalizing it as proposed.
    b. Small-volume allowance. This allowance 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 
allowance is that the 80-percent allowance described above may be 
exceeded, as long as sales do not exceed either 10 engines per year or 
20 engines over five years (2006 to 2010). This applies only to engines 
less than or equal to 2.5 liters per cylinder.
    c. Existing inventory and replacement engine allowance. Small-
volume boat builders may sell their existing inventory after the 
implementation date of the new standards. However, no purposeful 
stockpiling of uncertified engines is permitted. This provision is 
intended to allow small boat builders the ability to turn over engine 
designs.
    d. Hardship relief provision. Small boat builders may 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 will have a major 
impact on the company's solvency. This relief allows the boat builder 
to use an uncertified engine and is 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 regulations include a variety of amendments to the programs 
already adopted for marine spark-ignition and diesel engines, as 
described in the following paragraphs.
1. 40 CFR Part 91: Outboards and Personal Watercraft
    We have identified four principal amendments to the requirements 
for outboard and personal watercraft engines. First, we are adding a 
definition of United States which is ``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.'' This 
definition is consistent with that included in 40 CFR part 94 for 
marine diesel engines. 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. 
Third, we are adjusting the regulation language 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 
subject to in-use testing. The revised language states that for 
manufacturers with fewer than four engine families subject to in-use 
testing, the maximum testing rate is one family per year in place of 
the percentage calculation. Finally, we are revising the regulatory 
provision prohibiting emission controls that lead to increases of 
noxious or toxic compounds that would pose an unreasonable risk to the 
public, as described in Section II.B.2.
2. 40 CFR Part 94: Commercial Marine Diesel Engines
    We are adopting several regulatory amendments to the program for 
commercial marine diesel engines. Many of these are straightforward 
edits for correct grammar and cross references. We are also changing 
the definition of United States, as described in the previous section.
    We are adding a definition for spark-ignition, consistent with the 
existing definition for compression-ignition, which will allow us to 
define compression-ignition as any engine that is not spark-ignition. 
This will help ensure that marine emission standards for the different 
types of engines fit together appropriately.
    The discussion of production-line testing in Section II.C.4 
specifies reduced testing rates after two years of consistent good 
performance. We are extending this provision to commercial marine 
diesel engines as well.

[[Page 68315]]

    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 adopting a range of 13[deg] to 30[deg] C (55[deg] to 
86[deg] F) for emission testing.
    Finally, we are revising the regulatory provision prohibiting 
emission controls that lead to increases of noxious or toxic compounds 
that would pose an unreasonable risk to the public, as described in 
Section II.B.2.

G. Technological Feasibility

    We have concluded that 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, such 
that these emission reductions strategies will provide compliance with 
recreational marine diesel emission standards. 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 Final Regulatory Support Document discuss this 
process in more detail. Also, we have collected emission data 
demonstrating the feasibility of the steady state average standard and 
not-to-exceed requirements. These data are presented in Chapter 4 of 
the Final Regulatory Support Document.
1. Implementation Schedule
    For recreational marine diesel engines, the implementation schedule 
allows an additional two years of delay beyond the commercial marine 
diesel standards. This represents up to a five-year lead time relative 
to the implementation dates of the land-based nonroad standards. This 
allows time for the carryover of technology from land-based nonroad and 
commercial marine diesel engines. In addition, these implementation 
dates represent three to six years of lead time beyond publication of 
this 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 better use 
the water they operate in as a cooling medium compared with commercial 
marine, because they are able to use 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 and thus indirectly enables other HC and PM 
control strategies. As a result, baseline recreational engines 
generally have lower NOX emissions than uncontrolled 
commercial marine engines. Therefore, we believe that recreational 
marine engines can meet the same standard levels as are in place for 
commercial marine engines without sacrificing power or increasing 
weight of the engine.
3. Technological Approaches
    We anticipate that manufacturers will meet the new emission 
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 Final Regulatory 
Support Document and is summarized here.
    By adopting 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 produced limited numbers of low-
NOX marine diesel engines. More than 80 of these engines 
have been placed into service in California through demonstration 
programs. Through the demonstration programs, we were able to gain some 
insight into what technologies can be used to meet the new emission 
standards. Chapter 4 presents data on 25 of these engines tested over 
the E5 duty cycle. Although only one of these engines has been shown to 
meet the HC+NOX and PM standards, many of these engines are 
well below either the HC+NOX or PM standards or are close to 
meeting both. With further optimization, we believe these engine 
designs can be used to meet the exhaust emission standards for 
recreational marine diesel engines.
    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 incorporating a separate circuit, 
marine engine

[[Page 68316]]

manufacturers can further reduce charge-air temperatures. This separate 
circuit can result in even lower temperatures with 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 reduce NOX 
emissions with aftercooling.
    Electronic controls also offer great potential for improved control 
of engine parameters for better performance and lower emissions. Unit 
pumps or injectors 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 can 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.
    Fuel injection changes and other NOX control strategies 
typically reduce engine noise, sometimes dramatically. One important 
source of noise in diesel combustion is the sound associated with the 
combustion event itself. When a premixed charge of fuel and air 
ignites, the very rapid combustion leads to a sharp increase in 
pressure, which is easily heard and recognized as the characteristic 
sound of a diesel engine. The conditions that lead to high noise levels 
also cause high levels of NOX formation.
    The impact of the new emission standards on energy is measured by 
the effect on fuel consumption from complying engines. Many of the 
marine engine manufacturers are expected to retard engine timing which 
increases fuel consumption somewhat. Most of the technology changes 
anticipated in response to the new standards, however, have the 
potential to reduce fuel consumption as well as emissions. Redesigning 
combustion chambers, incorporating improved fuel injection systems, and 
introducing electronic controls provide the engine designer with 
powerful tools for improving fuel efficiency while simultaneously 
controlling emission formation. To the extent that manufacturers add 
aftercooling to non aftercooled engines and shift from jacket-water 
aftercooling to raw-water aftercooling, there will be a marked 
improvement in fuel-efficiency. Manufacturers of highway diesel engines 
have been able to steadily improve fuel efficiency even as new emission 
standards required significantly reduced emissions.
    There are no apparent safety issues associated with the new 
emission standards. Marine engine manufacturers will likely use only 
proven technology that is currently used in other engines such as 
nonroad land-based diesel applications, locomotives, and diesel trucks. 
The main technological approach will likely be optimization and 
calibration of their fuel injection and air management systems.
4. Our Conclusions
    The new emission standards for recreational marine diesel engines 
reasonably reflect what manufacturers can achieve through the 
application of available technology to current recreational marine 
diesel engines. Recreational marine 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 diesel 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. As discussed in Section IX, the new 
standards represent significant reductions compared with baseline 
emission levels.
    Based on information currently available, we conclude it is 
feasible for recreational marine diesel engine manufacturers to meet 
the new emission standards using combinations of technological 
approaches discussed above and in Chapters 3 and 4 of the Final 
Regulatory Support Document. While the technologies described above are 
expected to yield the full degree of emission reduction anticipated, it 
is possible that manufacturers may also rely on a modest degree of 
fuel-injection timing retard as a strategy for complying with emission 
standards. This is due to variations in engine designs and baseline 
injection timing. For instance, an engine with very advanced injection 
timing in its baseline configuration would likely need to employ some 
timing retard to meet the standards.
    The transfer of technology from land-based nonroad and commercial 
marine engines is an important factor in our determination that the 
recreational marine diesel engine standards are feasible. Most marine 
diesel engine models also serve in land-based applications. Sales of 
land-based versions of these engines are usually much greater than 
those of the marine counterpart versions, so manufacturers typically 
focus their primary technology development efforts on their land-based 
products. Manufacturers then modify these engines for use in marine 
applications. These changes can be extensive, but they rarely involve 
basic R&D for new technologies. We do not anticipate the use of 
advanced technology such as particulate filters and NOX 
adsorbers on trucks until the 2007 time frame. Therefore, we do not 
believe that it would be appropriate to implement standards, at this 
time, that would require the use of advanced technology that has yet to 
be developed for the higher volume land-based diesel engine market. We 
would, however, consider this technology in the future for setting 
further tiers of marine engine emission standards.
    In addition, we have incorporated various options that will permit 
marinizers and boat builders to respond to engine changes in an orderly 
way. We expect that meeting these requirements will pose a challenge, 
but one that is feasible taking into consideration the availability and 
cost of technology, time, noise, energy, and safety.

VII. General Nonroad Compliance Provisions

    This section describes a wide range of compliance provisions that 
apply generally to all the spark-ignition engines and vehicles subject 
to the new emission standards. Several of these provisions apply not 
only to manufacturers and importers, but also to equipment 
manufacturers installing certified engines, remanufacturing facilities, 
operators, and others.
    The regulatory text for the compliance requirements for Large SI 
engines and recreational vehicles are in a new Part 1068 of Title 40, 
entitled ``General Compliance Programs for Nonroad Engines.'' The 
compliance provisions for recreational marine diesel engines are 
generally the same as those already adopted for commercial marine 
diesel engines (40 CFR part 94).
    The following discussion of the general nonroad provisions follows 
the regulatory text. For ease of reference, the subpart designations 
for 40 CFR part 1068 are provided. Where different provisions apply to 
the marine engines, we note those differences in this section.

A. Miscellaneous Provisions (Part 1068, Subpart A)

    This subpart contains general provisions to define terms and the 
scope of application for all of 40 CFR part

[[Page 68317]]

1068. Other provisions concern how we 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. The regulations 
describe the methodology we use to evaluate concerns related to how 
manufacturers use good engineering judgment in cases where the 
manufacturer has such discretion (see 40 CFR 1068.5 and 40 CFR 94.221). 
If we find a problem in these areas, we will take into account the 
degree to which any error in judgment was deliberate or in bad faith. 
This subpart is consistent with provisions already adopted for light-
duty highway vehicles and commercial marine diesel engines.

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

    The provisions in this subpart establish a set of prohibitions for 
engine manufacturers (including importers), equipment manufacturers, 
operators, engine rebuilders, and owners/operators to ensure that 
engines meet the emission standards. 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.  1068.101)
    This regulation contains several prohibitions consistent with the 
Clean Air Act. No one may sell a new engine subject to the emission 
standards (or equipment containing such 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 consider tampering. 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 
because they are used in applications not covered by these regulations 
(for example, stationary or solely for competition), we generally 
prohibit using these engines in regulated applications.
    These 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, Pub. L. 10-410, these maximum penalties are 
periodically adjusted by regulation to account for inflation. The 
current penalty amount for each violation is $31,500.\85\
---------------------------------------------------------------------------

    \85\ EPA acted to adjust the maximum penalty amount in 1996 (61 
FR 69364, December 31, 1996) and 2002 (67 FR 41343, June 18, 2002). 
See also 40 CFR part 19.
---------------------------------------------------------------------------

2. Equipment Manufacturer Provisions (Sec.  1068.105)
    Equipment manufacturers may not sell new equipment with uncertified 
engines once the emission standards begin to apply. We 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 require equipment manufacturers to observe the engine 
manufacturers' emission-related installation specifications to ensure 
that the engine remains in its certified configuration. 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, they must add a duplicate label on the 
equipment.
    If equipment manufacturers don't fulfill the responsibilities we 
describe in this section, we consider them to be violating one or more 
of the prohibited acts described above.
3. In-Service Engines (Sec.  1068.110)
    The regulations 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 regulation also reserves our right to do testing (or require 
testing) to determine compliance with emission standards and 
investigate potential defeat devices, as authorized by the Act.
4. Engine Rebuilding (Sec.  1068.120)
    We are establishing rebuild provisions for all the nonroad engines 
subject to the emission standards in this final rule. 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 adopting minimal recordkeeping 
requirements so rebuilders can show that they comply with regulations.
    In general, we require anyone rebuilding a certified engine to 
restore it to its original (or a lower-emitting) configuration. We are 
adding 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, unless there 
is reason to believe that those components are still working properly. 
We also require that rebuilders replace an existing catalyst if there 
is evidence that it is not functional; for example, if a catalyst has 
lost its physical integrity with loose pieces rattling inside, it would 
need to be replaced.
    The rebuilding provisions define good rebuilding practices to avoid 
violating the prohibition on ``removing or disabling'' emission-control 
systems. We are therefore extending these provisions to individuals who 
rebuild their own engines, but without any recordkeeping requirements.

C. Exemptions (Part 1068, Subpart C)

    We are including several exemptions for certain specific 
situations. Most of these are consistent with previous rulemakings. We 
highlight the new or different provisions in the following paragraphs. 
In general, exempted engines must comply with the requirements only in 
the sections related to the exemption. Note that additional 
restrictions may apply to importing exempted engines (see Section 
VII.D). Also, 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 helps ensure that imported engines clear 
Customs without difficulty.

[[Page 68318]]

1. Testing
    Anyone may 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 may be exempted from regulation if they are 
maintained in the manufacturers' possession and are not used for any 
revenue-generating service.
3. Display Engines
    Anyone may request an exemption for engines intended for only for 
display.
4. National Security
    In general, engines installed in combat-related equipment are 
exempt from emission standards. In addition, engine manufacturers may 
request and receive an exemption for other engines if they are needed 
by an agency of the federal government responsible for national 
defense. The request for exemptions in these cases must include 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 are 
exempted without a request. This exemption is not available if the 
destination country has the same emission standards as those in the 
United States.
6. Competition Engines
    New engines used solely for competition are generally excluded or 
exempted from regulations that apply to nonroad engines. For purposes 
of our certification requirements, manufacturers receive an exemption 
if they can show that they produce an engine model specifically for use 
solely in competition. In addition, engines that have been modified for 
use in competition are 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 therefore do not allow anyone to use the engine for 
anything other than competition once it has been modified. This also 
applies to someone who later buys the engine, so we 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 is 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 must at a minimum meet those standards.
8. Hardship Related to Economic Burden
    There are two types of hardship provisions. The first type of 
hardship program allows small businesses to petition EPA for up to 
three years of additional lead time to comply with the standards. A 
small manufacturer must demonstrate that it has taken all possible 
business, technical, and economic steps to comply but the burden of 
compliance costs will have a significant impact on the company's 
solvency. A manufacturer must provide a compliance plan detailing when 
and how it will achieve compliance with the standards. Hardship relief 
may include requirements for reducing emission on an interim basis and/
or purchasing and using emission credits. The length of the hardship 
relief decided during review of the hardship application may be up to 
one year, with the potential to extend the relief as needed. The second 
hardship program allows companies to apply for hardship relief if 
circumstances outside their control cause the failure to comply (such 
as a supply contract broken by parts supplier) and if the failure to 
sell the subject engines will have a major impact on the company's 
solvency. We would, however, not grant hardship relief if contract 
problems with a specific company prevent compliance for a second time.
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, equipment manufacturers have raised concerns of certified 
engines being available too late for equipment manufacturers to 
adequately accommodate changing engine size or performance 
characteristics. To address this concern, in unusual circumstances, 
equipment manufacturers may request up to one extra year before using 
certified engines if they are not at fault and will face serious 
economic hardship without an extension.
    In addition, we are aware that some manufacturers of nonroad 
engines are dependent on another engine manufacturer to supply base 
engines that are then modified for the final application. Much like 
equipment manufacturers, these ``secondary engine manufacturers'' may 
face difficulty in producing certified engines if the manufacturer 
selling the base engine makes an engine model unavailable with short 
notice. These secondary manufacturers generally each buy a relatively 
small number of engines and would therefore not necessarily be able to 
influence the marketing or sales practices of the engine selling the 
base engines. In this rulemaking, this is of particular concern for 
Large SI engine manufacturers subject to new standards in 2004. As a 
result, we are allowing secondary engine manufacturers to sell 
uncertified engines or engines certified at emission levels above the 
standard for a short period after emission standards begin to apply. 
However, these companies control the final design of the engines, so we 
would not approve any exemption unless the manufacturer committed to a 
plan to make up for any calculated loss in environmental benefit. For 
example, based on an alternate compliance level for 2004 model year 
engines, we could calculate the number of 2006 model year engines that 
would need to be certified early to the 2007 emission standards. 
Provisions similar to these were adopted for commercial marine diesel 
engines and will apply equally to recreational marine diesel engines. 
See the regulatory text in 40 CFR 1068.255 and 40 CFR 94.209 for 
additional information.

D. Imports (Part 1068, Subpart D)

    In general, the same certification requirements apply to engines 
and equipment whether they are produced in the U.S. or are imported. 
This regulation also includes some additional provisions that apply if 
someone wants to import an exempted or excluded engine. For example, 
the importer needs appropriate documentation before importing 
nonconforming engines; this is true even if an exemption for the same 
reason doesn't require approval for engines produced in the U.S. These 
declaration forms are available on the Internet at http://www.epa.gov/OMS/imports/ or by phone at 202-564-9660.
    All the exemptions described above for new engines also apply to 
importation, though some of these apply only on a temporary basis. If 
we approve a temporary exemption, it is available

[[Page 68319]]

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 exemptions 
that apply only to imported engines.
--Identical configuration: This is 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 applies to all the engines covered by 40 CFR 
part 1068.
--``Antique'' engines: We generally treat used engines as new if they 
are imported without a certificate of conformity. However, this 
permanent exemption allows for importation of uncertified engines if 
they are more than 20 years old and still in their original 
configuration.
--Repairs or alterations: This is a temporary exemption to allow 
companies to repair or modify engines. This exemption does not allow 
for operating the engine, except as needed to do the intended work.
--Diplomatic or military: This is a temporary exemption to allow 
diplomatic or military personnel to use uncertified engines during 
their term of service in the U.S.
--Engines subject to other programs: This is a temporary exemption that 
allows someone to import an uncertified engine that will be converted 
for use in a different application. For example, someone may want to 
import a land-based nonroad engine to modify it and eventually sell it 
as a marine engine. This exemption expires when the engine 
modifications are complete, since one of the following scenarios will 
apply (1) the company modifying the engine will modify the engine to 
meet emission standards that apply to the modified engine, (2) the 
company will have a valid exemption under the program that applies to 
the modified engine, or (3) the modified engine will not be subject to 
emission standards, in which case an exemption is no longer necessary.

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 
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 regulation text describes the audit procedures 
in greater detail.
    We intend generally to rely on manufacturers' testing of 
production-line engines to show that their production process is 
producing engines in compliance they comply with emission standards. 
However, we reserve our right to do selective enforcement auditing if, 
for example, we have reason to question the emission testing conducted 
and reported by the manufacturer.

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

    In Part 1068, Subpart F, we are adopting defect reporting 
requirements that obligate manufacturers to tell us when they learn 
that emission control systems are defective and to conduct 
investigations under certain circumstances to determine if an emission-
related defect is present. We are also requiring that manufacturers use 
warranty information, parts shipments, and any other information which 
may be available to trigger these investigations. For the purpose of 
this subpart, we are considering defective any part or system that does 
not function as originally designed for the regulatory useful life of 
the engine or the scheduled replacement interval specified in the 
manufacturer's maintenance instructions. For recreational vehicles and 
nonroad spark-ignition engines over 19 kW, this approach to defect 
reporting takes into account the varying sales volumes of the different 
products.
    We believe the investigation requirement in this rule will allow 
both EPA and the engine manufacturers to fully understand the 
significance of any unusually high rates of warranty claims and parts 
replacement for systems or parts that may have an impact on emissions. 
We believe that any prudent and responsible engine manufacturer would, 
and should, conduct a thorough investigation as part of its normal 
product quality practices when in possession of data indicating an 
usually high number of recurring parts failures.
    In the past, defect reports were submitted based on a very low 
threshold with the same threshold applicable to all size engine 
families and with little information about the full extent of the 
problem. The new approach should result in fewer overall defect reports 
being submitted by manufacturers than would otherwise be required under 
the old defect reporting requirements because the number of defects 
triggering the submission requirement rises with the engine family 
size.
    The defect reporting requirements under other vehicle and engine 
regulations do not explicitly require investigations or reporting based 
on information available to the manufacturer about warranty claims or 
parts shipments. Such information is valuable and readily available to 
most manufacturers and should be considered when determining whether or 
not there is a defect of an emission-related part.
    We are aware that counting warranty claims and part shipments will 
likely include many claims that are not emission-related or that do not 
represent defects, so we are establishing a relatively high threshold 
for triggering the manufacturer's responsibility to investigate whether 
there is in fact a real occurrence of an emission-related defect. 
Manufacturers are not required to count towards the investigation 
threshold any replacement parts they require to be replaced during the 
useful life, as specified in the application for certification and 
maintenance instructions to the owner, because such part shipments 
clearly do not represent defects.
    Subpart F is intended to require manufacturers to use information 
we would expect them to keep in the normal course of business. We 
believe in most cases manufacturers will not be required to institute 
new programs or activities to monitor product quality or performance. A 
manufacturer that does not keep warranty or replacement part 
information may ask for our approval to use an alternate defect-
reporting methodology that is at least as effective in identifying and 
tracking potential emissions related defects as the requirements of 
subpart F. However, until we approve such a request, the thresholds and 
procedures of subpart F continue to apply.
    For engines with rated power below 560 kW, the investigation 
thresholds in 40 CFR 1068.501 are 4 percent of total production, or 
4,000 engines, whichever is less, for any single engine family in one 
model year. The thresholds are reduced by 50 percent for defects 
related to aftertreatment devices, because these components typically 
play such a significant role in controlling engine emissions. For 
example, for an engine family with a sales volume of 20,000 units in a 
given model year, the manufacturer must investigate for emission-
related defects if there were warranty claims for replacing electronic 
control units in 800 or more engines or catalytic converters on 400 or 
more engines. For a family with sales volume of 200,000 units in a 
given model year, the manufacturer

[[Page 68320]]

must investigate for emission-related defects if there were warranty 
claims for replacing electronic control units in 4,000 or more engines 
or catalytic converters on 2,000 or more engines.
    For engines rated above 560 kW, each engine emits much greater 
levels of emissions, both because of the higher power rating and the 
fact that these engines generally operate at high load and for long 
periods. In addition, the engine family for such engines are typically 
of smaller volume compared to the lower power engines. We are therefore 
adopting a requirement that manufacturers investigate defects for these 
engines if they learn of 5 or more defects that may be emission-
related, or 1 percent of total production, whichever is greater.
    The second threshold in 40 CFR 1068.501 specifies when a 
manufacturer must report that there is an emission-related defect. This 
threshold involves a smaller number of engines because each possible 
occurrence has been screened to confirm that it is an emission-related 
defect. In counting engines to compare with the defect-reporting 
threshold, the manufacturer must consider a single engine family and 
model year. However, when a defect report is required, the manufacturer 
must report all occurrences of the same defect in all engine families 
and all model years. For engines with rated power below 560 kW, the 
threshold for reporting a defect is 0.25 percent of total production 
for any single engine family, or 250 defects, whichever is less. The 
thresholds are reduced 50 percent for reporting defects related to 
aftertreatment devices. For engines with rated power greater than 
560kW, the threshold for reporting defects is 0.5 percent of total 
production, or 2 engines, whichever is greater.
    If the number of engines with a specific defect is found to be less 
than the threshold for submitting a defect report, but information, 
such as warranty or parts shipment data, later indicates that there may 
be additional defective engines, all the information must be considered 
in determining whether the threshold for submitting a defect report has 
been met. If a manufacturer has actual knowledge from any source that 
the threshold for submitting a defect report has been met, a defect 
report must be submitted even if the trigger for investigating has not 
yet been met. For example, if manufacturers receive from their dealers, 
technical staff or other field personnel information showing 
conclusively that there is a recurring emission-related defect, they 
must submit a defect report.
    At specified times the manufacturer must also report the open 
investigations as well as recently closed investigations that did not 
require a defect report. One manufacturer indicated that investigations 
of potential defects can sometimes take a long time. We agree and, 
therefore, are not specifying a time limit for manufacturers to 
complete their investigations. The periodic reports required by the 
regulations, however, will allow us to monitor these investigations and 
determine if it is necessary or appropriate for us to take further 
action.
    In general, we believe this updated approach to defect reporting 
will decrease the number of defect reports submitted by manufacturers 
overall while significantly improving their quality and their value to 
both EPA and the manufacturer.
    We are adopting the defect-reporting requirements for recreational 
marine diesel engines that already apply to Category 1 commercial 
marine diesel engines (40 CFR 94.403). In general, this requires the 
manufacturer to report to us if they learn that 25 or more models have 
a specific defect, without considering what percentage of the total 
engines that represents. This applies to the occurrence of the same 
defect and is not constrained by engine family or model year. We 
believe it would not be appropriate to have different defect-reporting 
requirements for different types of marine diesel engines, so we are 
not adopting the defect-reporting provisions described above for 
recreational marine diesel engines at this time. In the future we may 
consider whether the defect-reporting methodology described above 
should apply to recreational and commercial marine diesel engines.
    Under Clean Air Act section 207, if we determine that a substantial 
number of engines within an engine family, though properly used and 
maintained, do not conform to the appropriate emission standards, the 
manufacturer will be required to conduct a recall of the noncomplying 
engine family to remedy the problem. However, we also recognize the 
practical difficulty in implementing an effective recall program for 
nonroad engines. It may 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 in such situations is generally to 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 a determination of substantial nonconformity under section 207 of 
the Act. Alternatives nominated by a manufacturer will be evaluated 
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 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, and any other appropriate factors, will guide us in 
evaluating projects to determine whether their nature and burden is 
appropriate to remedy the environmental impact of the nonconformity.

G. Hearings (Part 1068, subpart G)

    Manufacturers have the opportunity to challenge our decisions 
related to implementing this final rule. We are adopting hearing 
procedures consistent with those currently in place for highway engines 
and vehicles.

VIII. General Test Procedures

    This rule establishes new engine testing regulations in 40 CFR part 
1065. These regulations will apply to anyone who tests engines to show 
that they meet the emission standards for snowmobiles, ATV, 
motorcycles, or Large SI engines. 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 different 
engine categories. The regulatory text in 40 CFR part 1065 is written 
recognizing that we may someday apply these procedures more broadly to 
other EPA engine testing programs. If we decide to apply these 
provisions to other engines in future rulemaking, we would incorporate 
necessary additions or changes at that time. Recreational marine diesel 
engines

[[Page 68321]]

must be tested using the procedures already adopted in 40 CFR part 94.

A. General Provisions

    As we have done in previous programs, we are adopting specific test 
procedures to define how to measure emissions, but allow alternate 
procedures if they are shown to be equivalent to our specified 
procedures. The test procedures in 40 CFR 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.

B. Laboratory Testing Equipment

    The regulations do not specify the type of engine or chassis 
dynamometer to use 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.
    Measuring emissions during transient operation calls for a greater 
degree of sophistication than steady-state testing. For chassis testing 
of recreational vehicles, we are adopting the specifications 
established 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. While EPA confirmatory testing with transient duty cycles 
must meet the prescribed specifications, manufacturers may ask for 
approval to run tests with relaxed requirements for following the trace 
of the transient duty cycle. Manufacturers would have an incentive to 
accurately reproduce the test cycle to ensure compliance with emission 
standards, but would be able to use otherwise invalidated tests if the 
degree of variance from the test cycle does not call into question the 
engine's reported emission levels.
    In addition, for transient testing with recreational vehicles and 
any testing with Large SI engines, the regulations specify that 
emissions must 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 is routed 
into a dilution tunnel where it is mixed with air and then sampled 
using a bag sampler system. After the test, the concentrations of HC, 
CO, and NOX in the bag is measured using conventional 
laboratory analyzers.
    For Large SI engines and snowmobiles, the 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 provisions for alternate testing procedures may allow for raw-
sampling measurements for steady-state testing. As specified in 40 CFR 
1065.10(c)(3) of the regulations, we allow manufacturers to use 
alternate procedures shown to be equivalent to the specified 
procedures. We are also including an interim provision for snowmobiles 
to allow manufacturers to use the raw-sampling procedures in 40 CFR 
part 91 for a few years before they are required to show equivalence 
with the dilute-sampling procedures. This option will allow 
manufacturers to focus their engineering efforts on reducing emissions 
during the start of the program.

C. Laboratory Testing Procedures

    The specific procedures for running emission tests are outlined 
briefly here, with a more detailed description of the most significant 
aspects. Before testing the engine, it is necessary to operate it 
enough to stabilize emission levels or to make it 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 up to 
50 hours as a break-in period. This is done for most or all emission-
data engines. The second method is much longer, up to the full useful 
life, and is done to determine 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 is collected from the dilution tunnel for 
each test segment or test mode using sample bags. These bags are then 
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 most duty cycles. 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 a specific procedure for 
measuring this engine parameter.\86\
---------------------------------------------------------------------------

    \86\ See the final rule for commercial marine diesel engines for 
a broader discussion of maximum test speed (64 FR 73300, December 
29, 1999).
---------------------------------------------------------------------------

    We 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 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 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. The 
maximum test speed described above is used to calculate these 
percentage values relative to rated speed.
2. Maintenance
    As described in Section II.C.1, we are limiting the amount of 
scheduled maintenance manufacturers may prescribe for their customers 
to ensure that engines continue to meet emission standards. If 
manufacturers specify unreasonably frequent maintenance, there would be 
little assurance that in-use engines would continue to operate at 
certified emission levels. We also apply these minimum maintenance 
intervals to engines the manufacturer operates for service accumulation 
before testing for emissions. For example, manufacturers may 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 may not replace fuel-system components on a 
recreational vehicle during the course of service accumulation for 
establishing deterioration factors. We do not restrict scheduling of 
routine maintenance items, 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 may affect emissions.

[[Page 68322]]

D. Other Testing Procedures

    As noted in earlier sections, we are establishing some special test 
procedures for field testing situations. These special procedures are 
designed to apply to specific types of engines, and thus do not apply 
generally to all engines covered by this rulemaking. You should read 
the specific applicable section to determine if such special test 
procedures apply to any specific category of engines or vehicles.

IX. Projected Impacts

    This section summarizes the projected impacts of the emission 
standards. The anticipated reduction in emissions is compared with the 
projected cost of the program for an assessment of the cost per ton of 
reducing emissions for this rule. The section includes the results of 
the analysis for the Final Program. We have also analyzed the impacts 
of different alternatives for each of the program areas. This analysis 
of alternatives, for the most part, focused on more or less stringent 
alternative standards. For recreational marine diesels, the 
alternatives analyzed were applying draft European standards or 
implementing our primary program two years earlier. For the Large SI 
category, the alternative focused on adopting a steady-state only 2007 
requirement. For off-highway motorcycles, we analyzed a more-stringent 
1.0 g/km standard and a less-stringent 4.0 g/km standard for HC + 
NOX control. With ATVs, the alternatives presented were a 
2.0 g/km and a 1.0 g/km HC + NOX standard. For snowmobiles, 
we analyzed four alternatives, ranging from only adopting one phase of 
standards in 2006 to a standard that would require, on average, 
reductions of 85% HC and 50% CO from baseline emissions. Additional 
detailed discussion on these alternatives and the results of the 
alternatives analysis are presented in Chapter 11 of the RSD.

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 
Final Regulatory Support Document.
    Tables IX.A-1 and IX.A-2 contain the projected emission inventories 
for calendar year 2010 from the engines and vehicles subject to this 
rulemaking under the base case (i.e., without the standards taking 
effect) and assuming the standards take effect. Tables IX.A-3 and IX.A-
4 contain the projected emission inventories for calendar year 2020. 
The percent reductions based on a comparison of estimated emission 
inventories with and without the emission standards are also presented 
in each of the tables.

                         Table IX.A-1.--2010 Projected HC and NOX Emissions Inventories
                                              [Thousand short tons]
----------------------------------------------------------------------------------------------------------------
                                                           HC*                                NOX
                                            --------------------------------------------------------------------
                  Category                                 With     Percent                  With       Percent
                                             Base case  standards  reduction   Base case   standards   reduction
----------------------------------------------------------------------------------------------------------------
Large SI...................................        268         88         67       389         118           70
Snowmobiles................................        297        250         16         3           4          (16)
ATVs.......................................        308        211         31         7           6           11
Off-highway motorcycles....................        193        155         20         1.1         1.2         (8)
Recreational marine diesel.................        1.6        1.5         10        49          46            7
                                            ------------
      Total................................      1,066        705         34       450         174           61
----------------------------------------------------------------------------------------------------------------
* The estimate for Large SI includes both exhaust HC and evaporative HC emissions. The estimates for
  snowmobiles, ATVs and Off-highway motorcycles includes both exhaust HC and permeation HC emissions. The
  estimate for recreation marine diesel includes exhaust HC emissions.


                          Table IX.A-2.--2010 Projected CO and PM Emissions Inventories
                                              [Thousand short tons]
----------------------------------------------------------------------------------------------------------------
                                                               CO                               PM
                                               -----------------------------------------------------------------
                   Category                                   With     Percent                 With     Percent
                                                Base case  standards  reduction  Base case  standards  reduction
----------------------------------------------------------------------------------------------------------------
Large SI......................................      2,022        945         53        1.9        1.9          0
Snowmobiles...................................        775        670         14        7.0        6.7          4
ATVs..........................................      1,042        989          5       10.8        7.4         32
Recreational marine diesel....................          8          8          0        1.3        1.2          6
Off-highway motorcycles.......................        266        239         10        7.3        5.8         20
                                               ------------
      Total...................................      4,113      2,851         31       28.3       23.0         19
----------------------------------------------------------------------------------------------------------------


                         Table IX.A-3.--2020 HC and NOX Projected Emissions Inventories
                                              [Thousand short tons]
----------------------------------------------------------------------------------------------------------------
                                                            HC*                               NOX
                                             -------------------------------------------------------------------
                  Category                                  With     Percent                  With      Percent
                                              Base case  standards  reduction   Base case   standards  reduction
----------------------------------------------------------------------------------------------------------------
Large SI....................................        318         34         89       472          43          91

[[Page 68323]]

 
Snowmobiles.................................        358        149         58         5          10        (101)
ATVs........................................        374         53         86         8           6          25
Off-highway motorcycles.....................        232        117         50         1.3         1.5       (19)
Recreational marine diesel..................        2.0        1.5         28        61          48          21
                                             ------------
      Total.................................      1,284        355         72       547         109         80
----------------------------------------------------------------------------------------------------------------
* The estimate for Large SI includes both exhaust HC and evaporative HC emissions. The estimates for
  snowmobiles, ATVs and Off-highway motorcycles includes both exhaust HC and permeation HC emissions. The
  estimate for recreation marine diesel includes exhaust HC emissions.


                          Table IX.A-4.--2020 Projected CO and PM Emissions Inventories
                                              [Thousand short tons]
----------------------------------------------------------------------------------------------------------------
                                                               CO                         PM
                                               -------------------------------------------------------  Percent
                   Category                                   With     Percent                 With    reduction
                                                Base case  standards  reduction  Base case  standards
----------------------------------------------------------------------------------------------------------------
Large SI......................................      2,336        277         88        2.3        2.3          0
Snowmobiles...................................        950        508         46        8.4        4.9         42
ATVs..........................................      1,250      1,085         13       13.1        1.9         86
Off-highway motorcycles.......................        321        236         26        8.7        4.4         50
Recreational Marine diesel....................          9          9          0        1.6        1.3         18
                                               ------------
      Total...................................      4,866      2,115         56       34.2       14.8         57
----------------------------------------------------------------------------------------------------------------

    As described in Section I, we project there will 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 
I.

B. Cost Estimates

    In assessing the economic impact of setting emission standards, we 
have made a best estimate of the necessary technologies and their 
associated costs. 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 Final Regulatory Support Document.
    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 will 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 unrelated to emissions control technologies 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 (see the Final Regulatory Support 
Document for additional information).\87\ The cost analysis assumes 
this learning effect applies equally well to the adoption of the 
technologies associated with this rule 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.
---------------------------------------------------------------------------

    \87\ 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 Emission 
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 near-term per unit average 
costs to meet the new emission standards. These estimates are based on 
the manufacturing cost rather than predicting price increase; the costs 
nevertheless take into account anticipated mark-ups to present retail-
price equivalent figures. 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.

[[Page 68324]]



   Table IX.B-1.--Estimated Average Cost Impacts of Emission Standards
------------------------------------------------------------------------
                                             Increased       Lifetime
                                            production       operating
          Standards              Dates       cost per        costs per
                                             vehicle*      vehicle (NPV)
------------------------------------------------------------------------
Large SI exhaust............       2004        $611         $-3,981
Large SI exhaust............       2007          55               0
Large SI evaporative........       2007          13             -56
Snowmobile exhaust (Phase 1)       2006          73             -57
Snowmobile exhaust (Phase 2)       2010         131            -286
Snowmobile exhaust (Phase 3)       2012          89            -191
Snowmobile permeation.......       2008           7             -11
ATV exhaust.................       2006          84             -24
ATV permeation..............       2008           3              -6
Off-highway motorcycle             2006         155             -48
 exhaust....................
Off-highway motorcycle             2008           3              -5
 peermeation................
Recreational................       2006         346              0
------------------------------------------------------------------------
* These estimates are for near-term costs. The estimated long-term costs
  decrease by about 35 percent. Costs presented for the Large SI and
  snowmobile second-phase standards are incremental to the first-phase
  standards. Costs for Phase 3 are incremental to Phase 2. These costs
  numbers may not necessarily reflect actual price increases as
  manufacturer production costs, perceived product enhancements, and
  other market impacts will affect actual prices to consumers.

    We estimate that the anticipated increase in the near-term cost of 
producing new Large SI engines for the 2004 standards is estimated to 
range from $550 to $800, depending on fuel type, with a composite 
estimated cost of $605. 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 $50 for the 2007 standards, which 
primarily involve 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 may not be insignificant 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.\88\
---------------------------------------------------------------------------

    \88\ Chapter 5 of the Final Regulatory Support Document 
describes why we believe market forces haven't already led 
manufacturers to add fuel-saving technologies to their products.
---------------------------------------------------------------------------

    Projected average near-term costs for ATVs and off-highway 
motorcycles are $84 and $155 per unit, respectively. Standards are 
based on the emission-control capability of engines four-stroke 
engines.\89\ Those models that convert from two-stroke to four-stroke 
technology will see substantial fuel savings in addition to greatly 
reduced 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 performance needs for their products. Fuel savings associated with 
replacing two-stroke engines with four-stroke engines partially offsets 
the additional cost of producing these vehicles.
---------------------------------------------------------------------------

    \89\ The program contains an optional set of standards for off-
highway motorcycles which could result in the use of direct 
injection two-stroke technology in some high-performance 
applications. Chapter 11.3 provides a cost analysis for this option. 
The costs are projected to be somewhat higher for this option due to 
the application of technology to high-performance competition 
models.
---------------------------------------------------------------------------

    We expect that the near-term cost of the 2006 snowmobile standards 
will average $73 per snowmobile. These costs are based on a mix of 
technologies including a small increase in the use of four-stroke and 
direct injection technology. For other engines we expect manufacturers 
to lean out the air-fuel mixture, improve carburetion for better fuel 
control and less production variation, and modify the engine to 
withstand higher temperatures and potential misfire episodes attributed 
to enleanment. We expect that the 2010 and 2012 standards will be met 
through inceasing the application of direct injection two-stroke 
technology and four-stroke engines on a significant portion of the 
fleet. We project that the near-term incremental cost of the Phase 2 
standards will average $131 per snowmobile and Phase 3 will be $89, 
although we believe these costs will be fully offset by fuel savings.
    Recreational marine diesel engines are expected to see increased 
costs averaging under $400 per engine in the near-term. We expect 
manufacturers to meet emission 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 emission 
standards.
    The above analysis presents unit cost estimates for each type of 
engine or vehicle. These costs represent the total set of costs the 
engine or vehicle manufacturers will bear to comply with emission 
standards. For those categories with engine-based standards, we do not 
anticipate significant new costs for equipment manufacturers installing 
certified engines. Operating costs are also taken into account, but 
where there is an effect, we project these impacts to involve only cost 
savings for operators. 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 standards will be in effect. Because 
the standards take effect in different years for the various categories 
of equipment covered by this rule, the aggregate annualized cost is 
calculated over a slightly longer period of time encompassing the first 
twenty years of each of the standards. For this reason, the aggregate 
annualized cost is not the sum of the individual annualized costs.) The 
annual cost savings due to reduced operating expenses start slowly, 
then increase as greater numbers of

[[Page 68325]]

compliant engines enter the fleet. Table IX.B-2 also presents a summary 
of the annualized reduction in operating costs. Overall, based on 
currently available information, we project an annualized net savings 
to the economy of approximately $200 million per year.

 Table IX.B-2--Estimated Annual Cost to Manufacturers and Annual Savings
           from Reduced Operating Costs of Emission Standards
------------------------------------------------------------------------
                                                            Annualized
                                            Annualized     savings from
                                              cost to         reduced
               Engine type                 manufacturers     operating
                                            (millions/         costs
                                               year)        (millions/
                                                               year)
------------------------------------------------------------------------
Large SI................................        $84            $324
Snowmobiles.............................         36              47
ATVs....................................         61              31
Off-highway motorcycles.................         25              14
Marine Diesel...........................          7               0
Aggregate *.............................        192            410
------------------------------------------------------------------------
* Because the standards take effect in different years for the various
  categories of equipment, the aggregate annualized cost is calculated
  over a slightly longer period of time. For this reason, the aggregate
  annualized cost is not the sum of the individual annualized costs.

C. Cost Per Ton of Emissions Reduced

    We calculated the cost per ton of emission reductions for the 
emission standards. For snowmobiles, this calculation is on the basis 
of HC and CO emissions. For all other engines, we attributed the entire 
cost of the program to the control of ozone precursor emissions (HC or 
NOX or both).
    Table IX.C-1 presents the near-term discounted cost-per-ton 
estimates for the various engines covered by the rule. (The aggregate 
cost-per-ton estimates are over the first 20 years of emission 
standards.) Reduced operating costs more than offset the increased cost 
of producing the cleaner engines for Phase 1 Large SI, and Phase 2 and 
Phase 3 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 rule, therefore show a net savings 
resulting from the emission standards. The table presents these as $0 
per ton, rather than calculating a negative value that has no clear 
meaning.

                           Table IX.C-1.--Estimated Cost-per-Ton of Emission Standards
----------------------------------------------------------------------------------------------------------------
                                                                       Discounted cost per   Discounted cost per
                                                        Discounted        ton of HC+NOX           ton of CO
                                                        reductions  --------------------------------------------
                 Standards                     Dates    per vehicle    Without                 Without     With
                                                       (short tons)     fuel      With fuel     fuel       fuel
                                                             *         savings     savings     savings   savings
----------------------------------------------------------------------------------------------------------------
Large SI exhaust (Composite of all fuels)..     2004          3.07      $240         $0          --        --
Large SI exhaust (Composite of all fuels)..     2007          0.80        80         80          --
Large SI evaporative.......................     2007          0.13        80          0          --
Snowmobile exhaust.........................     2006             HC: 0.40 90         20         $40       $10
                                             ........             CO:..........  ..........  ..........  .......
Snowmobile exhaust.........................     2010             HC: 0.1,370          0          --        --
Snowmobile exhaust.........................     2012              CO: 0.25--         --         360         0
Snowmobile permeation......................     2008          0.03       210          0          --        --
ATV exhaust................................     2006          0.21       400        290          --        --
ATV permeation.............................     2008          0.02       180          0          --        --
Off-highway motorcycle exhaust.............     2006          0.38       410        280          --        --
Off-highway motorcycle permeation..........     2008          0.01       230          0          --        --
Recreational marine diesel.................     2006          0.44       670        670          --        --
Aggregate..................................       --            --       240          0          80        0
----------------------------------------------------------------------------------------------------------------
* HC reductions for evaporative and permeation, and HC+NOX reductions for exhaust (except snowmobiles where CO
  reductions are also presented).

D. Economic Impact Analysis

    We performed an analysis to estimate the economic impacts of this 
final rule on producers and consumers of recreational marine diesel 
vessels (specifically, diesel inboard cruisers), forklifts, 
snowmobiles, ATVs, off-highway motorcycles, and society as a whole. 
This economic impact analysis focuses on market-level changes in price, 
quantity, and economic welfare (social gains or costs) associated with 
the regulation. A description of the methodology used can be found in 
Chapter 9 of the Final Regulatory Support Document prepared for this 
rulemaking.
    We did not perform an economic impact analysis for categories of 
Large SI nonroad engines other than forklifts, even though those other 
Large SI engines are also subject to the standards contained in this 
final rule. As explained in more detail in Chapter 9 of the Final 
Regulatory Support Document, this was due to the large number of 
different types of equipment that use Large SI engines and data 
availability constraints for those market segments. For the sake of 
completeness, the following analysis reports separate estimates for 
Large SI engines other than forklifts. Engineering costs are assumed

[[Page 68326]]

to be equal to economic costs for those engines. This approach slightly 
overestimates the social costs associated with the relevant standards.
    Based on the estimated regulatory costs associated with this rule 
and the predicted changes in prices and quantity produced in the 
affected industries, the total estimated annual social gains of the 
rule in the year 2030 is projected to be $553.5 million (in 2000 and 
2001 dollars). The net present value of the social gains for the 2002 
to 2030 time frame is equal to $4.9 billion, using a 3% discount rate. 
This value would be $2.4 billion with a 7% discount rate. The social 
gains are equal to the fuel savings minus the combined loss in consumer 
and producer surplus (see Table IX.D-1), taking into account producers' 
and consumers' changes in behavior resulting from the costs associated 
with the rule.\90\ Social gains do not account for the social benefits 
(the monetized health and environmental effects of the rule).
---------------------------------------------------------------------------

    \90\ Consumer and producer surplus losses are measures of the 
economic welfare loss consumers and producers, respectively are 
likely to experience as a result of the regulations. Combined these 
losses represent an estimate of the economic or social costs of the 
rule. Note that for the Large SI and recreational vehicle rules, 
fuel efficiency gains must be netted from surplus losses to estimate 
the social costs or social gains (in cases where fuel efficiency 
gains exceed surplus losses) attributable to the rules.

             Table IX.D-1.--Surplus Losses, Fuel Efficiency Gains, and Social Gains/Costs in 2030 a
----------------------------------------------------------------------------------------------------------------
                                                                                                   Social gains/
                                                                 Surplus losses  Fuel efficiency   costs in 2030
                        Vehicle category                           in 2030  ($    gains in 2030        b  ($
                                                                    millions)      ($ millions)      millions)
----------------------------------------------------------------------------------------------------------------
Recreational marine diesel vessels.............................            $6.6             $0            ($6.6)
Forklifts......................................................            47.8            420.1          372.3
Other Large SI.................................................          c 48.1            138.4           90.3
Snowmobiles....................................................            41.9            135.0           93.1
ATVs...........................................................            47.2             51.4            4.2
Off-highway motorcycles........................................            25.0             25.2            0.2
All vehicles total.............................................           216.6            770.1          553.5
NPV of all vehicles total d....................................         3,231.4          8,130.3        4,898.9
NPV of all vehicles total e....................................         1,889.5          4,282.3        2,392.8
----------------------------------------------------------------------------------------------------------------
a Figures are in 2000 and 2001 dollars.
b Figures in this column exclude estimated social benefits. Numbers in parentheses denote social costs.
c Figure is engineering costs; see text for explanation.
d Net Present Value is calculated over the 2002 to 2030 time frame using a 3 percent discount rate.
e Net Present Value is calculated over the 2002 to 2030 time frame using a 7 percent discount rate.

    For most of the engine categories contained in this rule, we expect 
there will be a fuel savings as manufacturers redesign their engines to 
comply with emission standards. For ATVs and off-highway motorcycles, 
the fuel savings will be realized as manufacturers switch from two-
stroke to four-stroke technologies. For snowmobiles, the fuel savings 
will be realized as manufacturers switch some of their engines to more 
fuel efficient two-stroke technologies and some of their engines to 
four-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 used by Large SI 
engines. Overall, we project the fuel savings associated with the 
anticipated changes in technology to be about 800 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.

E. Do the Benefits Outweigh the Costs of the Standards?

    While EPA uses relative cost-effectiveness as the primary manner to 
take costs into consideration, further insight regarding the standards 
can be provided by benefit-cost analysis. The purpose of this section 
is to summarize the methods we used and results we obtained in 
conducting an analysis of the economic benefits of the changes in 
emissions from engines covered by this rule, and to compare these 
economic benefits with the estimated economic costs of the rule. In 
summary, the results of our analysis indicate that the economic 
benefits of the final standards will exceed the costs of meeting the 
standards. The annual estimated benefits we were able to quantify were 
approximately $10 billion in 2030.
1. What Was Our Overall Approach to the Benefit-Cost Analysis?
    The basic question we sought to answer in the benefit-cost analysis 
was, ``What are the net yearly economic benefits to society of the 
reduction in mobile source emissions likely to be achieved by this 
final rulemaking?'' In designing an analysis to address this question, 
we selected a future year for analysis (2030) that is representative of 
full-implementation of the program (i.e., when the Large SI and 
recreational vehicle fleet is composed of virtually only compliant 
vehicles).
    To quantify benefits, we evaluated PM-related health effects 
(including directly emitted PM and NOX contribution to 
particulate nitrate) using a benefits transfer technique. Although we 
expect economic benefits to exist, we were unable to quantify or to 
value specific changes in visibility, ozone, CO or air toxics because 
we did not perform additional air quality modeling.
    To evaluate the PM-related health effects, we adopted a benefits 
transfer technique that relies on the extensive particulate matter air 
quality and benefits modeling conducted for the highway Heavy Duty 
Engine/Diesel Fuel final rule.\91\ That RIA used an analytical 
structure and sequence similar to that used in the ``section 812 
studies'' to estimate the total benefits and costs of the full Clean 
Air Act.\92\ In the HD

[[Page 68327]]

Engine/Diesel Fuel analysis, we used many of the same models and 
assumptions used in the section 812 studies as well as other Regulatory 
Impact Analyses (RIAs) prepared by the Office of Air and Radiation. By 
adopting the major design elements, models, and assumptions developed 
for the section 812 studies and other RIAs, we have largely relied on 
methods which have already received extensive review by the independent 
Science Advisory Board (SAB), by the public, and by other federal 
agencies. Although the underlying method has experienced significant 
review, the transfer of values from an existing primary benefits 
analysis to estimate the benefits of a new program has not had this 
type of review and the transfer technique introduces additional 
uncertainties.
---------------------------------------------------------------------------

    \91\ 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. II-A-13. This document is also available at http://www.epa.gov/otaq/diesel.htm#documents. The transfer technique is 
described in a memorandum, Dr. Bryan Hubbell, Senior Economist, 
Estimated Nox, Sox, and PM Emissions Health Damages for Heavy Duty 
Vehicle Emissions, April 22, 2002. A copy of this letter can be 
found in Docket A-2000-01, Document IV-A-146.
    \92\ The section 812 studies include: (1) U.S. EPA, Report to 
Congress: The Benefits and Costs of the Clean Air Act, 1970 to 1990, 
October 1997 (also known as the ``Section 812 Retrospective 
Report''); and (2) the first in the ongoing series of prospective 
studies estimating the total costs and benefits of the Clean Air Act 
(see EPA report number: EPA-410-R-99-001, November 1999). See Docket 
A-99-06, Document II-A-21.
---------------------------------------------------------------------------

2. What Are the Significant Limitations of the Benefit-Cost Analysis?
    Every benefit-cost analysis examining the potential effects of a 
change in environmental protection requirements is limited to some 
extent by data gaps, limitations in model capabilities (such as 
geographic coverage), and uncertainties in the underlying scientific 
and economic studies used to configure the benefit and cost models. 
Deficiencies in the scientific literature often result in the inability 
to estimate quantitative changes in health and environmental effects, 
such as potential increases in premature mortality associated with 
increased exposure to carbon monoxide. Deficiencies in the economics 
literature often result in the inability to assign economic values even 
to those health and environmental outcomes which can be quantified. 
While these general uncertainties in the underlying scientific and 
economics literatures, which can cause the valuations to be higher or 
lower, are discussed in detail in the Final Regulatory Support Document 
and its supporting documents and references, the key uncertainties 
which have a bearing on the results of the benefit-cost analysis of 
this final rule include the following:
    [sbull] The exclusion of potentially significant benefit categories 
(such as health and ecological benefits of reduction in hazardous air 
pollutants emissions and ozone; improvements in visibility);
    [sbull] Errors in measurement and projection for variables such as 
population growth;
    [sbull] Uncertainties in the estimation of future year emissions 
inventories and air quality;
    [sbull] Uncertainties associated with the transfer of the results 
of the HD Engine/Diesel Fuel analysis to this program, especially 
regarding the assumption of similarity in geographic distribution 
between emissions and human populations and years of analysis;\93\
---------------------------------------------------------------------------

    \93\ In the original HD Engine/Diesel Fuel analysis, we modeled 
air quality and benefits in 2030. There are sufficient non-
linearities and interactions among pollutants in the atmospheric 
chemistry that introduce additional uncertainties in the 
quantitative estimate of the benefits in years that were not fully 
modeled in the original analysis.
---------------------------------------------------------------------------

    [sbull] Variability in the estimated relationships of health and 
welfare effects to changes in pollutant concentrations;
    [sbull] Uncertainties in exposure estimation;
    [sbull] Uncertainties in applying willingness to pay estimates from 
National Park and Forest visitors to U.S. recreational participants and 
uncertainties in average number of activity days per year; and
    [sbull] Uncertainties associated with the effect of potential 
future actions to limit emissions.
    Despite these uncertainties, we believe the benefit-cost analysis 
provides a reasonable indication of the expected economic benefits of 
the final rulemaking in future years under a set of assumptions.
    One key area of uncertainty is the value of a statistical life 
(VSL) for reductions in mortality risk. The adoption of a value for the 
projected reduction in the risk of premature mortality is the subject 
of continuing discussion within the economic and public policy analysis 
community. In accordance with the independent Science Advisory Board 
advice,\94\ we use the value of a statistical life (VSL) for risk 
reductions in mortality in our primary estimate. Alternative 
calculations of adjustment for age and other factors are presented in 
the RIA for the HD Engine/Diesel Fuel rule and in the RSD for this 
rule. The presentation of the other alternative calculations for 
certain endpoints seeks to demonstrate how much the overall benefit 
estimate might vary based on the value EPA has given to a parameter 
(which has uncertainty associated with it) underlying the estimates for 
human health and environmental effect incidence and the economic 
valuation of those effects. These alternative calculations represent 
conditions that might occur; however, EPA has selected the best values 
supported by current scientific literature for use in the primary 
estimate. The primary estimate is the source for our benefits transfer 
technique.
---------------------------------------------------------------------------

    \94\ SAB advised that the EPA ``continue to use a wage-risk-
based VSL as its primary estimate, including appropriate sensitivity 
analyses to reflect the uncertainty of these estimates,'' and that 
``the only risk characteristic for which adjustments to the VSL can 
be made is the timing of the risk'' (EPA-SAB-EEAC-00-013; a copy of 
this document can be found in Docket A-99-06, Document No. IV-A-19). 
In developing our primary estimate of the benefits of premature 
mortality reductions, we have appropriately discounted over the lag 
period between exposure and premature mortality. However, an 
empirical basis that meets the SAB's standards of reliability for 
adjusting the current $6 million VSL for many of these factors does 
not yet exist. A discussion of these factors is contained in the RIA 
and supporting documents. EPA recognizes the need for additional 
research by the scientific community to develop additional empirical 
support for adjustments to VSL for the factors mentioned above.
---------------------------------------------------------------------------

    Even with our efforts to fully disclose the uncertainty in our 
estimate, our uncertainty presentation method does not provide a 
definitive or complete picture of the true range of monetized benefits 
estimates. The set of alternative calculations is only representative 
of those benefits that we were able to quantify and monetize.
3. What Are the benefits In the Years Leading Up to 2030?
    The final rule has various cost and emission related components, as 
described earlier in this section. These components would begin at 
various times and in some cases would phase in over time. This means 
that during the early years of the program there would not be a 
consistent match between cost and benefits, especially where the full 
vehicle cost would be incurred at the time of vehicle purchase, while 
the fuel savings along with the emission reductions and benefits 
resulting from all these costs would occur throughout the lifetime of 
the vehicle. Because of this inconsistency and our desire to more 
appropriately match the costs and emission reductions of our program, 
our analysis uses a future year (2030) when the fleet is nearly fully 
turned over.
    In the years before 2030, the benefits from the final rule will be 
less than those estimated here, because the compliant vehicle fleet 
will not be fully phased in, and the overall U.S. population would be 
smaller. Annualized costs, on the other hand, reach nearly their full 
value within a few years of program initiation (once all phase-ins are 
completed). Thus, a benefit-cost ratio computed for the earlier years 
of the program would be expected to be lower than a ratio based on our 
2030 analysis when the fleet has fully turned over. The stream of costs 
and the limited set of quantified benefits over time are presented in 
the Final

[[Page 68328]]

Regulatory Support Document. On the other hand, since the estimated 
benefits are more than 40 times the costs (excluding fuel savings) in 
2030, the emission reduction and cost trends suggest that it is likely 
that annual benefits would exceed costs from a time early in the life 
of the program.
4. What Were the Results of the Benefit-Cost Analysis?
    The benefit-cost analysis for the final rule reflects a single year 
picture of the yearly benefits and costs expected to be realized once 
the standards have been fully implemented and non-compliant vehicles 
have all been retired.
    Table IX.E-1 presents EPA's primary estimate of the benefits of the 
rule, both the estimated reductions in incidences and the estimated 
economic value of those incidence reductions. In interpreting the 
results, it is important to keep in mind the limited set of effects we 
are able to monetize. Specifically, the table lists the avoided PM-
related incidences of health effects and the estimated economic value 
of those avoided incidences.\95\ We present estimates for the 
reductions for the Large SI category only. As the table indicates, we 
estimate that the final rule will reduce premature mortality associated 
with fine PM by around 1,000 incidences per year, produce about 600 
fewer cases of chronic bronchitis, and result in significant reductions 
in minor restricted activity days (with an estimated 1 million fewer 
cases).\96\
---------------------------------------------------------------------------

    \95\ Based upon recent preliminary findings by the Health 
Effects Institute, the concentration-response functions used to 
estimate reductions in hospital admissions may over- or 
underestimate the true concentration-response relationship. See 
Letter from Dan Greenberg, President, Health Effects Institute, May 
30, 2002, attached to letter from Dr. Hopke, dated August 8, 2002. 
Docket A-2000-01, Document IV-A-145.
    \96\ Our estimate also incorporates significant reductions in 
27,000 fewer cases of lower respiratory symptoms, and 26,600 fewer 
cases of upper respiratory symptoms in asthmatic children each year. 
In addition, we estimate that this final rule will reduce 23,400 
incidents of asthma attacks each year in asthmatics of all ages from 
reduced exposure to particles. Additional incidents would be avoided 
from reduced ozone exposures. Asthma is the most prevalent chronic 
disease among children and currently affects over seven percent of 
children under 18 years of age.

 Table IX.E-1.--EPA Primary Estimate of the Annual Quantified and Monetized Benefits Associated With Improved PM
                   Air Quality Resulting From the Large SI/Recreational Vehicle Rule in 2030 a
----------------------------------------------------------------------------------------------------------------
                                                                               Monetary benefits a,d (millions
         PM-related endpoint            Avoided incidence a,c (cases/year)                 2002 $)
----------------------------------------------------------------------------------------------------------------
Premature mortality a,b (adults, ages  1,000...............................  $7,510
 30 and over).
Chronic bronchitis...................  640.................................  $280
Hospital Admissions from Respiratory   300.................................  <$10
 Causes g.
Hospital Admissions from               300.................................  <$10
 Cardiovascular Causes g.
Emergency Room Visits for Asthma.....  300.................................  <$1
Acute bronchitis (children, ages 8-    2,200...............................  <$1
 12).
Upper respiratory symptoms (asthmatic  20,600..............................  <$1
 children, ages 9-11).
Lower respiratory symptoms (children,  23,700..............................  <$1
 ages 7-14).
Asthma attacks (asthmatics, all ages)  20,600..............................  <$1
 a.
Work loss days (adults, ages 18-65)..  181,300.............................  $20
Minor restricted activity days         944,400.............................  $50
 (adults, ages 18-65) (adjusted to
 exclude asthma attacks) a.
Other health effects e...............  U1+U2+U3+U4.........................  B1+B2+B3+B4
                                      ---------------------------------------
    Monetized Total f................  ....................................  $7,880 + B
----------------------------------------------------------------------------------------------------------------
a Ozone-related benefits are not included, thus underestimating national benefits. Relative to PM related
  benefits, ozone benefits have typically accounted for only a small portion of total benefits. However, ozone
  reductions can have a significant impact on asthma attacks in asthma sufferers, as well as contributing to
  reductions in the overall number of minor restricted activity days.
b The value we are transferring assumes that some of the incidences of premature mortality related to PM
  exposures occur in a distributed fashion over the five years following exposure, and it embeds an annual three
  percent discount rate to the value of premature mortality occurring in years after our analysis year.
c Incidences are rounded to the nearest 100.
d Dollar values are rounded to the nearest 10 million. Monetary benefits account for growth in real GDP per
  capita through 2030.
e The Ui are the incidences and the Bi are the values for the unquantified category i. A detailed listing of
  unquantified PM, ozone, CO, and HC related health and welfare effects is provided in Table IX-E.2. Many of the
  HC emitted from these vehicles are also hazardous air pollutants listed in the Clean Air Act.
f B is equal to the sum of all unmonetized categories, i.e., Ba+B1+B2+ * * * +Bn.
g Based upon recent preliminary findings by the Health Effects Institute, the concentration-response functions
  used to estimate reductions in hospital admissions may over- or under-estimate the true concentration-response
  relationship.

    Total monetized benefits are driven primarily by the reduction in 
premature fatalities each year, which account for over 80 percent of 
total benefits.
    This table also indicates with a ``B'' those additional health and 
environmental benefits which could not be expressed in quantitative 
incidence and/or economic value terms. A full listing of the benefit 
categories that could not be quantified or monetized in our estimate 
are provided in Table IX.E-2. The final rule may also provide some 
visibility improvements in Class I areas and near where people live, 
work, and recreate. A full appreciation of the overall economic 
consequences of the final standards requires consideration of all 
benefits and costs expected to result from the new standards, not just 
those benefits and costs which could be expressed here in dollar terms.

   Table IX.E-2.--Additional, Non-monetized Benefits of the Large SI/
                     Recreational Vehicle Standards
------------------------------------------------------------------------
               Pollutant                       Unquantified effects
------------------------------------------------------------------------
Ozone Health...........................  Premature mortality.a
                                         Increased airway responsiveness
                                          to stimuli.
                                         Inflammation in the lung.
                                         Chronic respiratory damage.
                                         Premature aging of the lungs.

[[Page 68329]]

 
                                         Acute inflammation and
                                          respiratory cell damage.
                                         Increased susceptibility to
                                          respiratory infection.
                                         Non-asthma respiratory
                                          emergency room visits.
                                         Increased school absence rates
Ozone Welfare..........................  Decreased yields for commercial
                                          forests (for example, Western
                                          US).
                                         Decreased yields for fruits and
                                          vegetables.
                                         Decreased yields for non-
                                          commercial crops.
                                         Damage to urban ornamental
                                          plants.
                                         Impacts on recreational demand
                                          from damaged forest
                                          aesthetics.
                                         Damage to ecosystem functions
PM Health..............................  Infant mortality.
                                         Low birth weight.
                                         Changes in pulmonary function.
                                         Chronic respiratory diseases
                                          other than chronic bronchitis.
                                         Cardiac endpoints.
                                         Morphological changes.
                                         Altered host defense
                                          mechanisms.
                                         Cancer.
                                         Non-asthma respiratory
                                          emergency room visits
PM Welfare.............................  Visibility in Class I areas.
                                         Residential and recreational
                                          visibility in non-Class I
                                          areas.
                                         Soiling and materials damage.
                                         Damage to ecosystem functions
Nitrogen and Sulfate Deposition Welfare  Impacts of acidic sulfate and
                                          nitrate deposition on
                                          commercial forests
                                         Impacts of acidic deposition to
                                          commercial freshwater fishing.
                                         Impacts of acidic deposition to
                                          recreation in terrestrial
                                          ecosystems.
                                         Reduced existence values for
                                          currently healthy ecosystems.
                                         Impacts of nitrogen deposition
                                          on commercial fishing,
                                          agriculture, and forests.
                                         Impacts of nitrogen deposition
                                          on recreation in estuarine
                                          ecosystems.
                                         Damage to ecosystem functions
CO Health..............................  Premature mortalitya.
                                         Behavioral effects.
                                         Hospital admissions--
                                          respiratory, cardiovascular,
                                          and other.
                                         Other cardiovascular effects
                                         Developmental effects.
                                         Decreased time to onset of
                                          angina.
                                         Non-asthma respiratory ER
                                          visits
HC Health b............................  Cancer (benzene, 1,3-butadiene,
                                          formaldehyde, acetaldehyde).
                                         Anemia (benzene).
                                         Disruption of production of
                                          blood components (benzene).
                                         Reduction in the number of
                                          blood platelets (benzene).
                                         Excessive bone marrow formation
                                          (benzene).
                                         Depression of lymphocyte counts
                                          (benzene)
                                         Reproductive and developmental
                                          effects (1,3-butadiene).
                                         Irritation of eyes and mucus
                                          membranes (formaldehyde).
                                         Respiratory irritation
                                          (formaldehyde).
                                         Asthma attacks in asthmatics
                                          (formaldehyde).
                                         Asthma-like symptoms in non-
                                          asthmatics (formaldehyde).
                                         Irritation of the eyes, skin,
                                          and respiratory tract
                                          (acetaldehyde).
                                         Upper respiratory tract
                                          irritation and congestion
                                          (acrolein)
HC Welfare.............................  Direct toxic effects to
                                          animals.
                                         Bioaccumulation in the food
                                          chain.
                                         Damage to ecosystem function
------------------------------------------------------------------------
a Premature mortality associated with ozone and carbon monoxide is not
  separately included in this analysis. In this analysis, we assume that
  the ACS/Krewski, et al. C-R function for premature mortality captures
  both PM mortality benefits and any mortality benefits associated with
  other air pollutants. A copy of Krewski, et al., can be found in
  Docket A-99-06, Document No. IV-G-75.
b Many of the key hydrocarbons related to this rule are also hazardous
  air pollutants listed in the Clean Air Act.

    In summary, EPA's primary estimate of the benefits of the final 
rule is approximately $7.8 billion in 2030. This estimate accounts for 
growth in real gross domestic product (GDP) per capita between the 
present and 2030.
    The estimated social cost (measured as changes in consumer and 
producer surplus) in 2030 to implement the final rule from Table IX.D-1 
above is $217 million (2001$). The net social gain, considering fuel 
efficiency, is $554 million. The monetized benefits are approximately 
$7.8 billion, and EPA believes there is considerable value to the 
public of the benefits it could not monetize. The net benefit that can 
be monetized is $8.4 billion. Therefore, implementation of the final 
rule is expected to provide society with a net gain in social welfare 
based on economic efficiency criteria. Table IX.E-3 summarizes the 
costs, benefits, and net benefits.
    The net present value of the future benefits have been calculated 
using a 3% discount rate over the 2002 to 2030 time frame. The net 
present value of the social gains is $4,899 million and the net present 
value of the total annual benefits is $77,177 million + B. 
Consequently, the net present value of the monetized net benefits of 
this program is $82,076 million. If a discount rate of 7% is used, the 
values above change to $2,393 million for social gains and $40,070 
million + B for total benefits, giving a total of $42,463 million.

 Table IX.E-3.--2030 Annual Monetized Costs, Benefits, and Net Benefits
                           for the Final Rule
------------------------------------------------------------------------
                                                 Millions of 2001 $ a
------------------------------------------------------------------------
Social Gains f.............................  $550

[[Page 68330]]

 
Monetized PM-related benefits b,c..........  $7,880 + BPM
Monetized Ozone-related benefits b,d.......  Not monetized (BOzone)
HC-related benefits........................  Not monetized (BHC)
CO-related benefits........................  Not monetized (BCO)
Total annual benefits......................  $7,880 +BPM + BOzone + BHC
                                              + BCO
Monetized net benefits e...................  $8,430 + B
------------------------------------------------------------------------
a For this section, all costs and benefits are rounded to the nearest 10
  million. Thus, figures presented in this chapter may not exactly equal
  benefit and cost numbers presented in earlier sections of the chapter.
 
b Not all possible benefits or disbenefits are quantified and monetized
  in this analysis. Potential benefit categories that have not been
  quantified and monetized are listed in Table IX-E.2. Unmonetized PM-
  and ozone-related benefits are indicated by BPM. and BOzone,
  respectively.
c Based upon recent preliminary findings by the Health Effects
  Institute, the concentration-response functions used to estimate
  reductions in hospital admissions may over- or under-estimate the true
  concentration-response relationship.
d There are substantial uncertainties associated with the benefit
  estimates presented here, as compared to other EPA analyses that are
  supported by specific modeling. This analysis used a benefits transfer
  technique described in the RSD.
e B is equal to the sum of all unmonetized benefits, including those
  associated with PM, ozone, CO, and HC.
f The social gains are equal to the fuel savings minus the combined loss
  in consumer and producer surplus.

X. Public Participation

    A wide variety of interested parties participated in the rulemaking 
process that culminates with this final rule. This process provided 
several opportunities for public comment over a period of more than two 
years. An Advance Notice of Proposed Rulemaking (65 FR 76797, December 
7, 2000) announced our intent to address emissions from these engines. 
Comments received during this period were considered in the development 
of the proposal and are discussed in that document. These comments 
included information received from small businesses as a part of the 
inter-agency Small Business Advocacy Review Panel process which was 
completed before we published the proposal and is described below under 
the discussion of the Regulatory Flexibility Act. The formal comment 
period and public hearing associated with the proposal provided another 
opportunity for public input. We have also met with a variety of 
stakeholders at various points in the process, including state and 
environmental organizations, engine manufacturers, and equipment 
manufacturers.
    We have prepared a detailed Summary and Analysis of Comments 
document, which describes the comments we received on the proposal and 
our response to each of these comments. The Summary and Analysis of 
Comments is available in the docket for this rule and on the Office of 
Transportation and Air Quality internet home page at http://www.epa.gov/otaq/.

XI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    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:
    [sbull] 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;
    [sbull] Create a serious inconsistency or otherwise interfere with 
an action taken or planned by another agency;
    [sbull] Materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    [sbull] 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 Final 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. Annual 
initial costs of this rulemaking are estimated to be over $100 million 
per year but this is offset by operating cost savings of over $400 
million dollars per year. Even so, this 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. Paperwork Reduction Act

    The information collection requirements (ICR) in this 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.
    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.
    The reporting requirements in this final rule do not apply until 
the Office of Management has approved them. We will publish a document 
in the Federal Register announcing that the information-collection 
requirements are approved.

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

    EPA has determined that it is not necessary to prepare a regulatory 
flexibility analysis in connection with this final rule. EPA has also 
determined that this rule will not have a significant economic impact 
on a substantial number of small entities.
    For purposes of assessing the impacts of this final rule on small 
entities, a small entity is defined as: (1) A small business that meet 
the definition for business based on SBA size standards; (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. This rulemaking will affect only the small 
businesses.
    In accordance with section 609 of the RFA, EPA conducted an 
outreach to small entities and convened a Small

[[Page 68331]]

Business Advocacy Review (SBAR) Panel prior to proposing this rule, to 
obtain advice and recommendations of representatives of the small 
entities that potentially would be subject to the rule's requirements. 
Through the Panel process, we gathered advice and recommendations from 
small-entity representatives who would be affected by the provisions in 
the rule relating to large SI engines and land-based recreational 
vehicles, and published the results in a Final Panel Report, dated July 
17, 2001. EPA had previously convened a separate Panel for marine 
engines and vessels. This panel also produced a report, dated August 
25, 1999. We also prepared an Initial Regulatory Flexibility Analysis 
(IRFA) in accordance with section 603 of the Regulatory Flexibility 
Act. The IRFA is found in chapter 8 of the Draft Regulatory Support 
Document. Both Panel reports and the IRFA have been placed in the 
docket for this rulemaking (Public Docket A-2000-01, items II-A-85, II-
F-22, and III-B-01).
    EPA proposed the majority of the Panel recommendations, and took 
comments on these and other recommendations. The information we 
received during this rulemaking process indicated that fewer small 
entities would be significantly impacted by the rule than we had 
originally estimated. During the SBAR Panel process, a concern was 
raised that importers would have limited access to certified models for 
import. We received no comments regarding this concern and believe that 
the supply of four-stroke engines for ATVs and off-highway motorcycles 
will continue to increase. As a result, we believe all these companies 
should be able to find manufacturers that are able to supply them with 
compliant engines. These importers incur no development costs, and they 
are not involved in adding emission-control hardware or other variable 
costs to provide a finished product to market. We also expect that the 
vehicles they import would have fuel tanks and hoses that comply with 
the permeation standards. However, even if this were not the case, the 
additional two or three dollars that it would cost to make them 
compliant with the permeation standards is trifling in comparison with 
the normal selling price for these vehicles. They should therefore 
expect to buy and sell their products with the normal markup to cover 
their costs and profit. As noted below, we expect all 21 known small-
business importers to face compliance costs of less than one percent of 
their revenues. Thus, EPA has determined that this final rule will not 
have a significant economic impact on a substantial number of small 
entities. We also made some changes as a result of comments received on 
the proposal that we believe will further reduce the level of impact to 
small entities directly regulated by the rule. These can be found below 
in Section 5, ``Steps Taken to Minimize the Impact on Small Entities.''
    Although this final rule will not have a significant impact on a 
substantial number of small entities, EPA has prepared a Small Business 
Flexibility Analysis that examines the impact of the rule on small 
entities, along with regulatory alternatives that could reduce that 
impact. This analysis would meet the requirements for a Final 
Regulatory Flexibility Analysis (FRFA), had that analysis been 
required. The Small Business Flexibility Analysis can be found in 
Chapter 8 of the Final Regulatory Support Document, which is available 
for review in the docket and is summarized below. The key elements of 
our Small Business Flexibility Analysis include:

--The need for, and objectives of, the rule.
--The significant issues raised by public comments, a summary of the 
Agency's assessment of those issues, and a statement of any changes 
made to the proposed rule as a result of those comments.
--The types and number of small entities to which the rule will apply.
--The reporting, record keeping and other compliance requirement of the 
rule.
--The steps taken to minimize the impact of the rule on small entities, 
consistent with the stated objectives of the applicable statute.

    A fuller discussion of each of these elements can be found in the 
Small Business Flexibility Analysis (Chapter 8 of the Final Regulatory 
Support Document).
1. The Need for and Objectives of This Rule
    EPA began a study of emissions from new and existing nonroad 
engines, equipment, and vehicles in 1991. 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.\97\ Clean Air Act section 213 
(a)(3) then requires EPA to establish standards for all classes and 
categories of new nonroad engines that cause or contribute to ozone or 
CO concentrations in more than one ozone or CO nonattainment area that 
achieve the greatest degree of emissions reductions achievable taking 
cost and other factors into account.
---------------------------------------------------------------------------

    \97\ 59 FR 31306 (July 17, 1994).
---------------------------------------------------------------------------

    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:
    [sbull] Land-based compression-ignition (CI) engines (such as farm 
and construction equipment),
    [sbull] Small land-based spark-ignition (SI) engines (such as lawn 
and garden equipment and string trimmers),
    [sbull] Marine engines (outboards, personal watercraft, commercial 
marine diesel, marine diesel engines under 37 kW),
    [sbull] Locomotive engines.
    EPA issued an Advance Notice of Proposed Rulemaking (ANPRM) on 
December 7, 2000, and a Notice of Proposed Rulemaking (NPRM) on 
September 14, 2001, which continued the process of establishing 
standards for nonroad engines and vehicles, with proposed new emission 
standards for recreational marine diesel engines, recreational 
vehicles, and other nonroad spark-ignition engines over 19 kW. This 
final rule includes emission standards and related requirements for 
these vehicles and engines that are consistent with the requirements of 
the Act.
2. Summary of Significant Issues Raised by Public Comments
    We received comments from engine and equipment manufacturers and 
consumers, both during the SBAR Panel process and during the comment 
period after we issued the proposal. Small-volume engine and equipment 
manufacturers commented on the financial hardships they would face in 
complying with the proposed regulations. Most requested that we 
consider hardship provisions, primarily an exemption from or a delay in 
the implementation of the proposed standards, or certain flexibilities 
in the certification process. Due to the wide variety of engines, 
vehicles, and equipment covered by this rulemaking, we decided that a 
variety of provisions were needed to address the concerns of the small 
entities involved. Changes to the proposal as a result of comments from 
small-entity representatives or others are noted below in Section 5 for 
each of the sectors affected by this rule.
    The NPRM proposed only exhaust emission controls for recreational 
vehicles. However, several commenters raised the issue of control of 
evaporative

[[Page 68332]]

emissions related to permeation from fuel tanks and fuel hoses. They 
maintained that our obligations under section 213 of the Clean Air Act 
included control of permeation emissions, and pointed to work done by 
the California ARB on emissions from plastic fuel tanks and rubber fuel 
line hoses, as well as from portable plastic fuel containers. Our own 
investigation into hydrocarbon emissions related to permeation of fuel 
tanks and fuel hoses from recreational land-based and marine 
applications also supported the concerns raised by the commenters. 
Therefore, on May 1, 2002, we published a notice in the Federal 
Register reopening the comment period and requesting comment on 
possible approaches to regulating permeation emissions from 
recreational vehicles. The notice also included the expected costs and 
emission reductions resulting from these approaches. Commenters were 
given thirty days from May 1, 2002 to provide comments on the notice. 
We received comments from several affected businesses, including at 
least one small entity. These comments have been addressed in this 
final rulemaking, including several changes made to the provisions as a 
result of the comments.
c. Numbers and Types of Small Entities Affected
    The following table provides an overview of the primary SBA small 
business categories potentially affected by this regulation.

Table XI.C-1: Primary SBA Small Business Categories Potentially Affected
                           by This Regulation
------------------------------------------------------------------------
                                               Defined by SBA as a small
          Industry            NAICS\a\ 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.
------------------------------------------------------------------------
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.

    The small entities directly regulated by this 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 large companies representing over 95 
percent of total domestic ATV sales. The remaining 5 percent come from 
small manufacturers or importers, who tend to import inexpensive, 
youth-oriented ATVs from China and other Asian nations. We have 
identified 21 small companies that offer off-highway motorcycles, ATVs, 
or both products. Annual unit sales for these companies can range from 
a few hundred to several thousand units per year.
    There are three small businesses manufacturing off-highway 
motorcycles in the U.S. Two of these make only competition models, so 
do not need to certify their products under this regulation. The 
remaining off-highway motorcycle manufacturer already offers engines 
that should be meeting the new emission standards, especially under our 
provisions allowing design-based certification. There is one small 
business manufacturing two separate youth ATV models. This company 
already uses four-stroke engines. Also, the standards are based on 
emissions per watt hour, which are less costly to meet for models with 
small-displacement engines. As a result, we expect both of these 
manufacturers to face compliance costs less than one percent of their 
revenues.
    We expect all 21 small-business importers to face compliance costs 
less than one percent of their revenues. These companies incur no 
development costs and they are not involved in adding emission-control 
hardware or other variable costs to provide a finished product to 
market. As a result, they should expect to buy and sell their products 
with the normal mark-up to cover their costs and profit. During the 
SBAR Panel process, the concern was raised that importers might have 
limited access to certified models for import. We received no comments 
confirming this concern and believe that the supply of four-stroke 
engines for ATVs and off-highway motorcycles will continue to increase; 
as a result all these companies should be able to find manufacturers 
that are able to supply compliant engines into the U.S. market.
    We further believe that compliance with the permeation standards 
will not place a significant burden on either the small manufacturers 
or on the importers. We have estimated the incremental cost of 
compliance for ATVs and off-highway motorcycles at roughly three 
dollars per vehicle. This estimate includes shipping, and is based on 
buying the necessary low-permeability hoses and surface treatment for 
the fuel tanks from outside suppliers. Thus, no capital outlays are 
required, and the increase in vehicle cost is insignificant, so that it 
can easily be passed along to the ultimate consumer. However, to ensure 
that these requirements do not adversely affect small manufacturers, we 
are implementing, where they are applicable to permeation, the same 
flexibility options we proposed for the exhaust emission standards.
    Based on available industry information, four major manufacturers 
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. One potential 
manufacturer is not a small business, but hopes to produce snowmobiles 
within the next year. Most of these manufacturers build less than 50 
units per year. We have identified three small manufacturers of 
snowmobiles who are still in business (of five originally identified). 
Two of these companies specialize in high-performance versions of 
standard recreational snowmobile types (i.e., travel and mountain 
sleds). The other manufacturer produces a unique design, which is a 
small scooter-like snowmobile designed to be ridden standing up. This 
manufacturer provided no response to repeated outreach efforts to 
determine potential economic effects of the final rule, but could be 
expected to use production engines certified to the Small SI standards.
    There are thus three small businesses currently producing 
snowmobiles for

[[Page 68333]]

the U.S. market. One of these currently makes a mix of two-stroke and 
four-stroke models and will likely rely on the provision allowing 
separate standards for certain manufacturers to produce low-emitting 
engines with a streamlined development effort. Estimated compliance 
costs for this company are less than one percent of revenues. Costs for 
the company producing the standup snowmobile should also be less than 
one percent. The third manufacturer sells a single snowmobile model in 
addition to a sizable business of supplying aftermarket parts for 
snowmobiles from other manufacturers. We don't have revenue information 
for the whole company, but with such low sales volumes, we estimate 
that this company's compliance costs could reach 4-10 percent of annual 
snowmobile revenues.
    Control of permeation emissions was not part of the SBAR Panel 
process. We received comments from one small snowmobile manufacturer 
who stated that it would experience additional hardship due to the 
permeation standards, because they do not have the sales volume to 
install the barrier treatment for fuel tanks in-house. They also 
commented that if shipping and processing of fuel tanks took 3-4 
months, it would be difficult for a small business to tie up funds for 
so long. However, we believe that the permeation control requirements 
should be relatively easy for small businesses to meet, given the 
relatively low costs involved ($5 to $7 per sled, based on outside 
vendor costs). This is insignificant in comparison to the cost of the 
high-end sleds that this company produces and should not materially 
affect the company's cash flow. We also believe it is not necessary, or 
cost-effective, for a small entity to make the capital investments for 
in-house treatment facilities. Low permeation fuel hoses are available 
from vendors today, and we would expect that surface treatment would be 
applied through an outside company, rather than installing a treatment 
facility in house. In any event, to make sure that these requirements 
do not adversely affect small manufacturers, we are implementing, where 
they are applicable to permeation, the same flexibility options we 
proposed for the exhaust emission standards.
    b. Marine Vessels. Marine vessels include the boat, engine, and 
fuel system. Exhaust emission controls including NTE requirements, as 
addressed in the August 29, 1999 and July 17, 2001 SBAR Panel Reports, 
may affect the engine manufacturers and may affect boat builders.
    We have determined that at least 16 companies manufacture marine 
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.
    We are thus aware of six small businesses producing marine diesel 
engines that may be considered recreational. Three of these companies 
produce both commercial and recreational models without significant 
differences, so we expect them to meet the standards in this final rule 
with little more than the administrative expenses associated with 
including recreational models in their commercial engine families. 
High-performance recreational marine diesel engines already include 
technologies that help control NOX emissions, so our cost 
estimates include relatively modest development costs to add new 
technologies. Moreover, the small-business provisions allowing 
substantial additional lead time provide an opportunity for these 
companies to spread development and certification costs over several 
years. As a result, we expect one small business to have compliance 
costs approaching one percent and one to have compliance costs between 
1 and 3 percent. One very small business could have compliance costs of 
about four percent of annual revenues.
    c. Large Spark-ignition Engines. We are aware of two manufacturers 
of Large SI engines qualifying as small businesses. One of these 
companies plans to produce engines that meet the standards adopted by 
California ARB in 2004, with the possible exception of one engine 
family. The other company is attempting to restart the production of 
engines from another failed company. This company did not exist during 
the SBAR Panel process associated with this rule.
    The established company will face relatively small compliance costs 
as a result of this rule, since California-compliant engines will need 
only a small amount of additional development effort to meet long-term 
standards. These costs should be less than one percent of revenues.
    The start-up company faces significant development costs, though 
much of this effort is required to improve the engine enough to sustain 
a market presence as other manufacturers continue to make improvements 
to competitive engines. Under the hardship provisions, we expect the 
start-up company to spread compliance costs over several years to 
reduce the impact of emission standards. We nevertheless estimate that 
the compliance costs associated with meeting EPA emission standards are 
about 5 percent of revenues. Since this manufacturer is operating in a 
niche market, with customers providing public comments citing the need 
for these engines, we expect that most of the increased cost of 
production will be recovered by increased revenues.
    d. Result for all Small Entities. For this regulation as a whole, 
we expect 32 small businesses to have total compliance costs less than 
1 percent of their annual revenues. We estimate that one company will 
have compliance costs between 1 and 3 percent of revenues. Three 
companies will likely have compliance costs exceeding 3 percent of 
revenues, but at least one will likely be able to benefit from the 
relief provisions outlined below. These estimates include the costs for 
compliance with the permeation standards.
4. Reporting, Record Keeping, and Compliance Requirements
    For any emission-control program, we need assurance that the 
regulated engines will meet the standards. Historically, EPA programs 
have assigned manufacturers the responsibility to provide these 
assurances. This final rule includes testing, reporting, and record 
keeping requirements. Testing requirements for some manufacturers 
include certification (including deterioration testing) and production-
line testing. Reporting and record keeping requirements include test 
data and technical data on the engines, including defect reporting.
5. Steps Taken To Minimize the Impact on Small Entities
    The two SBAR Panels considered a variety of provisions to reduce 
the burden of complying with new emission standards and related 
requirements. Some of these provisions (such as emission-credit 
programs) would apply to all companies, while others would be targeted 
at the unique circumstances faced by small businesses. A complete 
discussion of the regulatory alternatives recommended by the Panels can 
be found in the Final Panel Reports. Summaries of the Panels' 
recommended alternatives for each of the sectors

[[Page 68334]]

subject to this action can also be found in their respective sections 
of the preamble.
    The following Panel recommendations are being finalized by the 
Agency, except for a few items as noted below:

(A) Related Federal Rules

    The Panel recommended that EPA continue to consult with the CPSC in 
developing the rule to better understand the scope of the Commission's 
regulations as they may relate to the competition exemption.

(B) Regulatory Flexibility Alternatives

    The Panel recommended that EPA consider and seek comments on a wide 
range of alternatives, including the flexibility options described 
below. As noted above, we issued a subsequent Federal Register notice 
dated May 1, 2002 (67 FR 21613), seeking comment on applying permeation 
control standards for fuel tanks and fuel hoses used on recreational 
vehicles. The flexibilities listed below for recreational vehicles 
would generally also apply to those controls, which would effectively 
extend the panel recommendations to the permeation controls as well.
(1) Large SI Engines
    The Panel recommended that EPA propose several possible provisions 
to address concerns 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.
    (a) Using Certification and Emission Standards From Other EPA 
Programs. The Panel made several recommendations for this provision. 
First, the Panel recommended that EPA temporarily expand this 
arrangement to allow small numbers of constant-speed engines up to 2.5 
liters (up to 30kW) to be certified to the Small SI standards. Second, 
the Panel further recommended that EPA seek comment on the 
appropriateness of limiting the sales level of 300. Third, the Panel 
recommended 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 recommended that 
EPA propose to allow small-volume manufacturers producing engines up to 
30kW 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. We are not adopting this provision and are 
instead relying on the hardship provisions in the final rule, which 
will allow us to accomplish the objective of the proposed provision 
with more flexibility.
    (b) Delay of Emission Standards. The Panel recommended that EPA 
propose to delay the applicability of the long-term 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 near-term emission standards. We are also folding this provision 
into the scope of the hardship provision, but have decided to increase 
the delay to up to four years, depending on the nature of the hardship 
involved.
    (c) Production-Line Testing. The Panel made several recommendations 
for this provision. First, the Panel recommended that EPA adopt 
provisions allowing more flexibility than is available under the 
California Large SI program or other EPA programs in general to address 
the concern that production-line testing is another area where small-
volume manufacturers typically face a difficult testing burden. Second, 
the Panel recommended that EPA allow small-volume manufacturers to have 
a reduced testing rate if they have consistently good test results from 
testing production-line engines. Finally, the Panel recommended that 
EPA allow small-volume manufacturers to use alternative low-cost 
testing options to show that production-line engines meet emission 
standards.
    (d) Deterioration Factors. The Panel recommended that EPA allow 
small-volume manufacturers to develop deterioration factors based on 
available emission measurements and good engineering judgment.
    (e) Hardship Provision. The Panel recommended that EPA propose two 
types of hardship provisions for Large SI engines. First the Panel 
recommended that EPA allow small businesses to petition EPA for up to 
three years of additional lead time to comply with the standards. 
Second, the Panel recommended that EPA allow small businesses to apply 
for hardship relief if circumstances outside their control cause the 
failure to comply (such as a supply contract broken by a parts 
supplier) and if the failure to sell the subject engines would have a 
major impact on the company's solvency.
(2) Off-Highway Motorcycles and ATVs
    The NPRM for this rule discussed several flexibility options for 
small businesses manufacturing recreational vehicles, based on the SBAR 
Panel process. When we reopened the comment period on May 1, 2002 to 
request comment on possible approaches to regulating permeation 
emissions from recreational vehicles, we did not specifically discuss 
small business issues. However, it is our intent that these provisions 
carry over to permeation controls as well.
    The Panel made the following recommendations for this subcategory:
    (a) General Recommendations. (1) The Panel recommended that EPA 
propose to apply the flexibilities described below to engines produced 
or imported by small entities with combined off-highway motorcycle and 
ATV annual sales of less than 5,000 units per model year.
    (2) The Panel recommended that EPA request comment on the 
appropriateness of the 5,000 unit per model year threshold.
    (3) The Panel recommended 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.
    (4) The Panel recommended that EPA describe and seek comment on the 
effect of the standards 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 emission standards.
    (5) The Panel recommended 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.
    (b) Additional Lead-Time To Meet Emission Standards. First, the 
Panel recommended 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 recommended 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 recommended that 
EPA

[[Page 68335]]

request comment on the appropriate length for a delay (lead-time).
    (c) Design Certification. The Panel recommended that EPA propose to 
permit small entities to use design-based certification. The Panel also 
recommended that EPA work with the small-entity representatives and 
other members of the industry to develop appropriate criteria for such 
design-based certification.
    (d) Broaden Engine Families. The Panel recommended that EPA request 
comment on engine family flexibility and conducting design-based 
certification emissions testing.
    (e) Production-Line Testing Waiver. The Panel recommended that EPA 
propose to provide small manufacturers and small importers a waiver 
from manufacturer production-line testing. The Panel also recommended 
that EPA request comment on whether limits or the scope of this waiver 
are appropriate.
    (f) Use of Assigned Deterioration Factors During Certification. The 
Panel recommended that EPA propose to provide small business with the 
option to use assigned deterioration factors.
    (g) Using Certification and Emission Standards from Other EPA 
Programs. The Panel recommended that EPA propose to provide small 
business with this flexibility through the fifth year of the 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.
    (h) Averaging, Banking, and Trading. The Panel recommended that EPA 
propose to provide small business with the same averaging, banking, and 
trading program flexibilities that would apply for large manufacturers 
and request comment on how the provisions could be enhanced for small 
business to make them more useful.
    (i) Hardship Provisions. The Panel recommended that EPA propose two 
types of hardship program for off-highway motorcycles and ATVs: First, 
EPA should allow small manufacturers and small importers to petition 
EPA for limited additional lead-time to comply with the standards. 
Second, EPA should allow small manufacturers and small importers to 
apply for hardship relief if circumstances outside their control cause 
the failure to comply (such as a supply contract broken by a 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 recommended that EPA propose both aspects of the 
hardship provisions for small off-highway motorcycle and ATV 
manufacturers and importers and seek comment on the implementation 
provisions.
(3) Marine Vessels
    (a) Delay Standards for Five Years. The Panel recommended that EPA 
delay the standards for five years for small businesses.
    (b) Design-Based Certification. The Panel recommended that EPA 
allow manufacturers to certify by design and to be able use this to 
generate credits under this approach. The Panel also recommended that 
EPA provide adequately detailed design specifications and associated 
emission levels for several technology options that could be used to 
certify. Although we proposed this approach, we were unable to specify 
any technology options for diesel engines that could be used for 
design-based certification. We requested comment on such designs and 
received no comment. Therefore, we are not finalizing a design-based 
certification option. However, we are finalizing the engine dresser 
provisions and expanding these provisions to include water-cooled 
turbocharging. This will allow some engines to be exempt from the 
standards based on design.
    (c) Broadly Defined Product Certification Families. The Panel 
recommended that EPA take comment on the need for broadly defined 
emission families and how these families should be defined.
    (d) Hardship Provisions. The Panel recommended that EPA propose two 
types of hardship programs for marine engine manufacturers, boat 
builders and fuel tank manufacturers: First, that we should allow small 
businesses to petition us for additional lead time to comply with the 
standards. Second, EPA should allow small businesses to apply for 
hardship relief if circumstances outside their control cause the 
failure to comply (such as a supply contract broken by a parts 
supplier) and if the failure to sell the subject fuel tanks or boats 
would have a major impact on the company's solvency. The Panel also 
recommended that EPA work with small manufacturers to develop these 
criteria and how they would be used.
    (e) Burden Reduction Approaches Designed for Small Marinizers of 
Marine Engines With Respect to NTE Provisions. The Panel recommended 
that EPA specifically include NTE in a design-based approach.
(4) Snowmobiles
    As noted above, permeation standards were not part of the original 
NPRM for this rule, which incorporated recommendations from the SBAR 
Panel process. When we reopened the comment period on May 1, 2002 to 
request comment on possible approaches to regulating permeation 
emissions from recreational vehicles, which would apply to snowmobiles 
as well as to off-highway motorcycles and ATVs, we did not specifically 
discuss small business issues. However, it is our intent that the 
proposed flexibilities for exhaust emissions carry over to permeation 
controls for all three vehicle categories, to the extent that they are 
applicable.
    (a) Delay of Emission Standards. The Panel recommended 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 recommended 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). 
Thus, the 2006 Phase 1 standards would be phased in at 50/100 percent 
in 2008/2009, the Phase 2 standards would be phased in at 50/100 
percent in 2012/2013, and the Phase 3 standards would be phased in at 
50/100 percent in 2014/2015.
    (b) Design-Based Certification. The Panel recommended that EPA take 
comment on how 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.
    (c) Broader Engine Families. The Panel recommended that EPA propose 
a provision for small snowmobile manufactures that would use relaxed 
criteria for what constitutes an engine or vehicle family.
    (d) Elimination of Production-Line Testing Requirements. The Panel 
recommended that EPA propose that small snowmobile manufacturers not be 
subject to production-line testing requirements.
    (e) Use of Assigned DF During Certification. The Panel recommended 
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 burdens, 
rather than performing a durability demonstration for each engine 
family as part of the certification testing requirement.
    (f) Using Certification and Emission Standards From Other EPA 
Programs. The Panel recommended that EPA

[[Page 68336]]

propose to provide small business with the flexibility to use an engine 
certified to another EPA program without recertifying it in its new 
application provided that the manufacturer does not alter the engine in 
such a way as to cause it to exceed the emission standards it was 
originally certified to meet.
    (g) Averaging, Banking and Trading. The Panel recommended that EPA 
propose an averaging, banking and trading program for snowmobiles, and 
seek comment on additional flexibilities related to emission credits 
that should be considered for small snowmobile manufacturers.
    (h) Hardship Provisions. The Panel recommended that EPA propose two 
types of hardship programs for small snowmobile manufacturers. First, 
EPA should allow small snowmobile manufacturers to petition EPA for 
additional lead time to comply with the standards. Second, EPA should 
allow small snowmobile manufacturers to apply for hardship relief if 
circumstances outside their control cause the failure to comply (such 
as a supply contract broken by a parts supplier) and if failure to sell 
the subject engines or vehicles would have a major impact on the 
company's solvency.
    (i) Unique Snowmobile Engines. The Panel recommended 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 recommended 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. However, we received 
comment that the limit of 300 is too restrictive to be of much 
assistance to small businesses. Based on this comment we are adopting a 
limit for this provision of 600 snowmobiles per year. Finally, the 
Panel recommended that EPA seek comment on initial and deadline dates 
for the submission of such petitions. We received no comments in this 
area, but for clarity have decided to require at least nine months lead 
time by the petitioner.
(5) Conclusion
    In summary, considering both exhaust emission and permeation 
regulations, we have found that only three small entities are likely to 
be impacted by more than 3 percent of their sales, and the degree of 
impact is likely to be further reduced by the flexibilities that are 
being finalized in this rulemaking. Therefore, this final rule will not 
have a significant economic impact on a substantial number of small 
entities.

D. 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 this rule represents the 
least costly, most cost-effective approach to achieve the air quality 
goals of the rule. The costs and benefits associated with the rule are 
discussed in Section IX and in the Small Business Support Document, as 
required by the UMRA.

E. Executive Order 13132: Federalism

    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'' are 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 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 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.

[[Page 68337]]

    This 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.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' ``Policies that have tribal 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and the Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''
    This rule does not have tribal implications. It will not have 
substantial direct effects on tribal governments, on the relationship 
between the Federal government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
The emission standards and other related requirements for private 
businesses in this rule have national applicability and therefore do 
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 rule. Thus, Executive Order 13175 does not apply 
to this rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    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 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 in this rulemaking 
will further reduce air toxics and the related adverse impacts on 
children's health.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    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 aim to reduce 
emissions from certain nonroad engines and have no effect on fuel 
formulation, distribution, or use. Generally, the final rule leads to 
reduced fuel usage due to the improvements in engine-based emission-
control technologies.

I. 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 (such as 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 rule involves technical standards. The following paragraphs 
describe how we specify testing procedures for engines subject to this 
rule.
    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 Final Regulatory Support Document, transient testing is an 
important part of the emission-control program for these engines. We 
are therefore not adopting the ISO procedures in this rulemaking.
    Underwriters Laboratories (UL) has adopted voluntary consensus 
standards for forklifts that are relevant to the new 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 adopting 
a different temperature limit, because the maximum temperature 
specified by UL does not prevent fuel boiling. We are adopting 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, it would be appropriate to reference the UL 
standard 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 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.
    The Gas Processors Association has adopted standards with fuel 
specifications for liquefied petroleum gas. However, there is no 
existing regulations requiring suppliers to meet these specifications. 
Comments received on the rule indicate a high level of concern that in-
use fuel quality does not meet the published voluntary standards, so we 
are not relying on these fuel specifications to define fuels for 
certification testing.
    We are adopting requirements to test off-highway motorcycles and 
all-terrain vehicles with the Federal Test Procedure, a chassis-based 
transient test. There is no voluntary consensus

[[Page 68338]]

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 
intend 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 adopting 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 adopting the same 
test procedures that we have established for commercial marine diesel 
engines (with a new duty cycle appropriate for recreational 
applications). We are again adopting 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.

J. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. This rule is a 
``major rule'' as defined by 5 U.S.C. 804(2).

K. 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 
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. Most of the provisions in this part apply only to vehicle 
manufacturers.
    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 1048.1
     (a)
     (b)
     (1)
     (2)
     (i)
     (ii)

    A cross reference to Sec.  1048.1(b) in this illustration would 
refer to the parent paragraph (b) and all its subordinate paragraphs. A 
reference to Sec.  1048.1(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 Part 91

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

40 CFR Part 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, 
Incorporation by reference, Labeling, Penalties, Reporting and 
recordkeeping requirements, Research, Warranties.

40 CFR Part 1051

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

40 CFR Part 1065

    Environmental protection, Administrative practice and procedure, 
Incorporation by reference, 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.


[[Page 68339]]


    Dated: September 13, 2002.
Christine Todd Whitman,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is 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'', 
``Spark-ignition'', and ``United States'' 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 gasoline-fueled engine or other 
engines 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.
* * * * *
    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]

    3. Section 89.106 is amended by revising paragraph (b) read as 
follows:


Sec.  89.106  Prohibited controls.

* * * * *
    (b) 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. 
For example, this would apply if the engine emits a noxious or toxic 
substance it would otherwise not emit that contributes to such an 
unreasonable risk.

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

    4. The heading to part 90 is revised to read as set forth above.

    5. 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]

    6. 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 (d) 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 1051.145(a)(3) to exempt them from the requirements of 40 CFR part 
1048 or 1051, respectively. Compliance with the provisions of this part 
is a required condition of those exemptions.
    (c) [Reserved]
    (d) The following nonroad engines and vehicles are not subject to 
the provisions of this part:
    (1) Engines certified to meet the requirements of 40 CFR part 1051 
(e.g., engines used in snowmobiles). This part nevertheless applies to 
engines used in recreational vehicles if the manufacturer uses the 
provisions of 40 CFR 1051.145(a)(3) 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.
    (2) Engines used in highway motorcycles. See 40 CFR part 86, 
subpart E.
    (3) Propulsion marine engines. See 40 CFR part 91. 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.
    (e) 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.
    (f) 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.

    7. 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.

    8. 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. There are two kinds of marine engines:
    (1) Propulsion marine engine means a marine engine that moves a 
vessel through the water or directs the vessel's movement.
    (2) Auxiliary marine engine means a marine engine not used for 
propulsion.

[[Page 68340]]

    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.
* * * * *
    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]

    9. 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;
* * * * *

    10. Section 90.110 is amended by revising paragraph (b) to read as 
follows:


Sec.  90.110  Requirement of certification--prohibited controls.

* * * * *
    (b) 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. 
For example, this would apply if the engine emits a noxious or toxic 
substance it would otherwise not emit that contributes to such an 
unreasonable risk.

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

    11. 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]

    12. 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 B--[Amended]

    13. Section 91.110 is amended by revising paragraph (b) to read as 
follows:


Sec.  91.110  Requirement of certification--prohibited controls.

* * * * *
    (b) 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. 
For example, this would apply if the engine emits a noxious or toxic 
substance it would otherwise not emit that contributes to such an 
unreasonable risk.

Subpart E--[Amended]

    14. 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 [alpha]
* * * * *
[GRAPHIC] [TIFF OMITTED] TR08NO02.001

* * * * *

Subpart G--[Amended]

    15. 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....................................  AA \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]

    16. 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 number of 
the manufacturer's engine families to which this subpart is applicable 
produced in that model year:

[[Page 68341]]

    (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 number of engine families to which this subpart is 
applicable that are produced by the manufacturer in that model year.
* * * * *

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

    17. The heading to part 94 is revised to read as set forth above.
    18. 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]

    19. 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.

    20. 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). 
In the context of commercial vessels, 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 gasoline-fueled engine or other 
engines 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.
* * * * *
    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.
* * * * *

    21. Section 94.7 is amended by revising paragraphs (c), (d), and 
(e) to read as follows:


Sec.  94.7  General standards and requirements.

* * * * *
    (c) 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. 
For example, this would apply if the engine emits a noxious or toxic 
substance it would otherwise not emit that contributes to such an 
unreasonable risk.
    (d) All engines subject to the emission standards of this part 
shall be equipped with a connection in the engine exhaust system that 
is located downstream of the engine and before any point at which the 
exhaust contacts water (or any other cooling/scrubbing medium) for the 
temporary attachment of gaseous and/or particulate emission sampling 
equipment. This connection shall be internally threaded with standard 
pipe threads of a size not larger than one-half inch, and shall be 
closed by a pipe-plug when not in use. Equivalent connections are 
allowed. Engine manufacturers may comply with this requirement by 
providing vessel manufacturers with clear instructions explaining how 
to meet this requirement, and noting in the instructions that failure 
to comply may

[[Page 68342]]

invalidate a certificate and subject the vessel manufacturer to federal 
penalties.
    (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 torque at that speed) and 
engine speed.

    22. 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   CO  g/kW-   PM g/kW-
                  power                            Category             yeara     g/kW-hr       hr         hr
----------------------------------------------------------------------------------------------------------------
Disp. < 0.9 and.........................  Category 1, Commercial....       2005        7.5        5.0       0.40
power = 37 kW................
                                          Category 1, Recreational..       2007        7.5        5.0       0.40
0.9 <= disp. < 1.2......................  Category 1, Commercial....       2004        7.2        5.0       0.30
All power levels........................
                                          Category 1, Recreational..       2006        7.2        5.0       0.30
1.2 <= disp. < 2.5......................  Category 1, Commercial....       2004        7.2        5.0       0.20
All power levels........................
                                          Category 1, Recreational..       2006        7.2        5.0       0.20
2.5 <= disp. < 5.0......................  Category 1, Commercial....       2007        7.2        5.0       0.20
All power levels........................
                                          Category 1, Recreational..       2009        7.2        5.0       0.20
5.0 <= disp. < 15.0.....................  Category 2................       2007        7.8        5.0       0.27
All power levels........................
15.0 <= disp. < 20.0....................  Category 2................       2007        8.7        5.0       0.50
Power < 3300 kW.........................
15.0 <= disp. < 20.0....................  Category 2................       2007        9.8        5.0       0.50
Power < 3300 kW.........................
20.0 <= disp. < 25.0....................  Category 2................       2009        9.8        5.0       0.50
All power levels........................
25.0 <= disp. < 30.0....................  Category 2................       2007       11.0        5.0      0.50
All power levels........................
----------------------------------------------------------------------------------------------------------------
\a\ The dates 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 2012 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)
------------------------------------------------------------------------
         Rated brake power (kW)               THC+NOX           PM
------------------------------------------------------------------------
Power =37 kW, and displ.<0.9.             4.0            0.24
0.9<=displ.<1.2.........................             4.0            0.18
1.2<=displ.<2.5.........................             4.0            0.12
2.5<=displ.<5...........................             5.0            0.12
5<=displ.<15............................             5.0            0.16
15 <=disp.< 20, and power < 3300 kW.....             5.2            0.30
15 <=disp.< 20, and power =               5.9            0.30
 3300 kW................................
20 <=disp.< 25..........................             5.9            0.30
25 <=disp.< 30..........................             6.6            0.30
------------------------------------------------------------------------


[[Page 68343]]

* * * * *

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


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;
    (i) 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.
* * * * *

    24. Section 94.12 is amended by revising the introductory text and 
paragraphs (a), (b)(1), and (e) and adding new paragraphs (f) and (g) 
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 December 9, 2002.
* * * * *
    (e) Compliance date of NTE requirements (1) Notwithstanding the 
other provisions of this part, the requirements of Sec.  94.8(e) for 
commercial marine engines start with 2010 model year engines for 
postmanufacture marinizers and 2007 model year engines for all other 
engine manufacturers.
    (2) Notwithstanding the other provisions of this part, the 
requirements of Sec.  94.8(e) for recreational marine engines start 
with 2012 model year engines for post-manufacture marinizers and 2009 
model year engines for all other engine manufacturers.
    (f) Flexibility for small-volume boat builders. Notwithstanding the 
other provisions of this part, manufacturers may sell uncertified 
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 they do 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).
    (4) Manufacturers must add a permanent, legible label, written in 
block letters in English, to a readily visible part of each engine 
exempted under this paragraph (f). 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 (in liters), rated power, and model year 
of the engine or whom to contact for further information.
    (iv) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 94.12(f) 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (g) Flexibility for engines over 560kW. Notwithstanding the other 
provisions of this part, manufacturers may choose to delay 
certification of marine engines with less than 2.5 liters per cylinder 
and rated power above 560 kW, that are derived from a land-based 
nonroad engine with a rated power greater than 560 kW, if they do all 
of the following:
    (1) Certify all of their applicable marine engines with less than 
2.5 liters per cylinder and rated power above 560 kW to a 
NOX standard of 6.4 g/kW-hr for model years 2008 through 
2012.
    (2) Notify EPA in writing before 2004 of their intent to use this 
provision. This notification must include a signed statement certifying 
that the manufacturer will comply with all the provisions of this 
paragraph (g).
    (3) Add a permanent, legible label, written in block letters in 
English, to a readily visible part of each engine exempted under this 
paragraph (f). 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 (in liters), rated power, and model year 
of the engine or whom to contact for further information.
    (iv) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 94.12(g) 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.

Subpart B--[Amended]

    25. 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.
* * * * *

    26. 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

[[Page 68344]]

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
----------------------------------------------------------------------------------------------------------------
                                                      Engine
                                                    speed\(1)\      Percent of     Minimum time
                    Mode No.                        (percent of    maximum test       in mode        Weighting
                                                   maximum test     power\(2)\       (minutes)        factors
                                                      speed)
----------------------------------------------------------------------------------------------------------------
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.


    27. Section 94.106 is amended by revising paragraphs (b) 
introductory text, (b)(1) introductory text, (b)(2) introductory text, 
(b)(3) introductory text, and (b)(4) and adding a new paragraph (b)(5) 
to read as follows:


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:
* * * * *
    (4) For engines certified using the duty cycle specified in Sec.  
94.105(c)(1), the Not to Exceed zone is defined as any load greater 
than or equal to 25 percent of maximum power at rated speed, and any 
speed at which the engine operates in use.
    (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)(5)(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 68345]]

[GRAPHIC] [TIFF OMITTED] TR08NO02.003

BILLING CODE 6560-50-C

    28. 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.
* * * * * * *


[[Page 68346]]

* * * * *

Subpart C--[Amended]

    29. 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 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.).
* * * * *

    30. 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.

    31. 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.
    (7) The manufacturer must add a permanent, legible label, written 
in block letters in English, to a readily visible part of each engine 
exempted under this paragraph (b).
    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 (in liters), rated power, and model year 
of the engine or whom to contact for further information.
    (iv) The statement ``THIS ENGINE IS EXEMPT UNDER 40 CFR 94.209(b) 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (c) Extension of deadlines. Small-volume manufacturers may use the 
provisions of 40 CFR 1068.250 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.

    32. 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.)
* * * * *
    33. 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]

    34. 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]

    35. 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

[[Page 68347]]

Subpart A of this part, excluding small-volume manufacturers.
* * * * *

    36. 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 pass the production-line testing requirements 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 any number of model years. In determining 
whether to approve your request, we may consider the number of engines 
that have failed the emission tests.

Subpart J--[Amended]

    37. 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 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 L--[Amended]

    38. 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. 
This prohibition covers improper installation in a manner such that the 
installed engine would not be covered by the engine manufacturer's 
certificate. Improper installation would include, but is not limited 
to, failure to follow the engine manufacturer's instructions related to 
engine cooling, exhaust aftertreatment, emission sampling ports, or any 
other emission-related component, parameter, or setting. 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. (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.)
* * * * *
    39. A new subchapter U is added to chapter I, consisting of parts 
1048, 1051, 1065, and 1068, 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 Which engines are excluded or exempted 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 evaporative emissions standards and requirements 
apply?
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 What are the provisions for certifying Blue Sky Series 
engines?
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 What must I include in 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 What emission testing must I perform for my application for 
a certificate of conformity?
1048.240 How do I demonstrate that my engine family complies with 
exhaust emission standards?
1048.245 How do I demonstrate that my engine family complies with 
evaporative emission standards?
1048.250 What records must I keep and make available to EPA?
1048.255 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?

[[Page 68348]]

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 fails the production-
line testing requirements?
1048.320 What happens if one of my production-line engines fails to 
meet emission standards?
1048.325 What happens if an engine family fails the production-line 
requirements?
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 What happens if in-use engines do not meet requirements?
1048.420 What in-use testing information must I report to EPA?
1048.425 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?
1048.620 What are the provisions for exempting large engines fueled 
by natural gas?
1048.625 What special provisions apply to engines using 
noncommercial fuels?
Subpart H--[Reserved]
Subpart I--Definitions and Other Reference Information
1048.801 What definitions apply to this part?
1048.805 What symbols, acronyms, and abbreviations does this part 
use?
1048.810 What materials does this part reference?
1048.815 How should I request EPA to keep my information 
confidential?
1048.820 How do I request a hearing?
Appendix I to Part 1048--Large Spark-ignition (SI) Transient Cycle 
for Constant-Speed Engines
Appendix II to Part 1048--Large Spark-ignition (SI) Composite 
Transient Cycle

    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.  1048.801) with 
maximum brake power above 19 kW, unless we exclude them under Sec.  
1048.5. See Sec.  1048.20 for the requirements that apply to excluded 
engines.
    (b) If you manufacture or import engines with maximum brake 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) As noted in subpart G of this part, 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 
January 1, 2004, unless you certify voluntarily. See Sec. Sec.  
1048.101 through 1048.115 and Sec.  1048.145 and the definition of 
model year in Sec.  1048.801 for more information about the timing of 
new requirements.
    (e) See Sec. Sec.  1048.801 and 1048.805 for definitions and 
acronyms that apply to this part. The definition section contains 
significant regulatory provisions and it is very important that you 
read them.


Sec.  1048.5  Which engines are excluded or exempted from this part's 
requirements?

    (a) This part does not apply to the following nonroad engines:
    (1) Engines certified to meet the requirements of 40 CFR part 1051 
(for
    example, engines used in snowmobiles and all-terrain vehicles).
    (2) Propulsion marine engines. See 40 CFR part 91. This part 
applies with respect to auxiliary marine engines.
    (b) See subpart G of this part and 40 CFR part 1068, subpart C, for 
exemptions of specific engines.
    (c) 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.

    Note: See 40 CFR part 87 for engines used in aircraft.)

    (d) As defined in Sec.  1048.801, stationary engines are not 
required to comply with this part (because they are not nonroad 
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.


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 nonroad 
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.  1048.801). 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 six things:
    (1) Meet the emission standards and other requirements in subpart B 
of this part.
    (2) Perform preproduction emission tests.
    (3) Apply for certification (see subpart C of this part).
    (4) Do routine emission testing on production engines as required 
by subpart D of this part.
    (5) Do emission testing on in-use engines, as we direct under 
subpart E
    of this part.
    (6) Follow our instructions throughout this part.
    (c) Subpart F of this part describes how to test your engines 
(including references to other parts).
    (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.

[[Page 68349]]

    (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) Exclusions and exemption for certain engines.
    (4) Importing engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for 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) Engine manufacturers producing an engine excluded under Sec.  
1048.5(d) 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 40 CFR 1068.105 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 maximum brake 
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?

    Apply the exhaust emission standards in this section by model year. 
You may choose to certify engines earlier than we require. The Tier 1 
standards apply only to steady-state testing, as described in paragraph 
(b) of this section. The Tier 2 standards apply to steady-state, 
transient, and field testing, as described in paragraphs (a), (b), and 
(c) of this section.
    (a) Standards for transient testing. Starting in the 2007 model 
year, Tier 2 exhaust emission standards apply for transient measurement 
of emissions with the duty-cycle test procedures in subpart F of this 
part:
    (1) The Tier 2 HC+NOX standard is 2.7 g/kW-hr and the 
Tier 2 CO standard is 4.4 g/kW-hr. For severe-duty engines, the Tier 2 
HC+NOX standard is 2.7 g/kW-hr and the Tier 2 CO standard is 
130.0 g/kW-hr. The standards in this paragraph (a) do not apply for 
transient testing of high-load engines.
    (2) You may optionally certify your engines according to the 
following formula instead of the standards in paragraph (a)(1) of this 
section: (HC+NOX) x CO \0.784\ <= 8.57. The 
HC+NOX and CO emission levels you select to satisfy this 
formula, rounded to the nearest 0.1 g/kW-hr, become the emission 
standards that apply for those engines. You may not select an 
HC+NOX emission standard higher than 2.7 g/kW-hr or a CO 
emission standard higher than 20.6 g/kW-hr. The following table 
illustrates a range of possible values under this paragraph (a)(2):

   Table 1 of Sec.   1048.101.--Examples of Possible Tier 2 Duty-cycle
                           Emission Standards
------------------------------------------------------------------------
                                                              CO  (g/kW-
                     HC+NOX  (g/kW-hr)                           hr)
------------------------------------------------------------------------
2.7........................................................          4.4
2.2........................................................          5.6
1.7........................................................          7.9
1.3........................................................         11.1
1.0........................................................         15.5
0.8........................................................         20.6
------------------------------------------------------------------------

    (b) Standards for steady-state testing. Except as we allow in 
paragraph (d) of this section, the following exhaust emission standards 
apply for steady-state measurement of emissions with the duty-cycle 
test procedures in subpart F of this part:
    (1) The following table shows the Tier 1 exhaust emission standards 
that apply to engines from 2004 through 2006 model years:

                        Table 2 of Sec.   1048.101.--Tier 1 Emission Standards (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                                  General emission         Alternate emission
                                                                      standards           standards for severe-
                           Testing                           --------------------------       duty  engines
                                                                                       -------------------------
                                                                 HC+NOX         CO         HC+NOX         CO
----------------------------------------------------------------------------------------------------------------
Certification and production-line testing...................          4.0         50.0          4.0        130.0
In-use testing..............................................          5.4         50.0          5.4        130.0
----------------------------------------------------------------------------------------------------------------

    (2) Starting in the 2007 model year, engines must meet the Tier 2 
exhaust emission standards in paragraph (a) of this section for both 
steady-state and transient testing. See paragraph (d) of this section 
for alternate standards that apply for certain engines.
    (c) Standards for field testing. Starting in 2007, the following 
Tier 2 exhaust emission standards apply for emission measurements with 
the field-testing procedures in subpart F of this part:
    (1) The HC+NOX standard is 3.8 g/kW-hr and the CO 
standard is 6.5 g/kW-hr. For severe-duty engines, the HC+NOX 
standard is 3.8 g/kW-hr and the CO standard is 200.0 g/kW-hr. For 
natural gas-fueled engines, you are not required to measure nonmethane 
hydrocarbon emissions or total hydrocarbon emissions for testing to 
show that the engine meets the emission standards of this paragraph 
(c); that is, you may assume HC emissions are equal to zero.
    (2) You may apply the following formula to determine alternate 
emission standards that apply to your engines instead of the standards 
in paragraph (c)(1) of this section: (HC+NOX) x CO\0.791\ <= 
16.78. HC+NOX emission levels may not exceed 3.8 g/kW-hr and 
CO emission levels may not exceed 31.0 g/kW-hr. The following table 
illustrates a range of possible values under this paragraph (c)(2):

[[Page 68350]]



 Table 3 of Sec.   1048.101.--Examples of Possible Tier 2 Field-testing
                           Emission Standards
------------------------------------------------------------------------
                                                              CO  (g/kW-
                     HC+NOX  (g/kW-hr)                           hr)
------------------------------------------------------------------------
3.8........................................................          6.5
3.1........................................................          8.5
2.4........................................................         11.7
1.8........................................................         16.8
1.4........................................................         23.1
1.1........................................................         31.0
------------------------------------------------------------------------

    (d) Engine protection. For engines that require enrichment at high 
loads to protect the engine, you may ask to meet alternate Tier 2 
standards of 2.7 g/kW-hr for HC+NOX and 31.0 g/kW-hr for CO 
instead of the emission standards described in paragraph (b)(2) of this 
section for steady-state testing. If we approve your request, you must 
still meet the transient testing standards in paragraph (a) of this 
section and the field-testing standards in paragraph (c) of this 
section. To qualify for this allowance, you must do all the following 
things:
    (1) Show that enrichment is necessary to protect the engine from 
damage.
    (2) Show that you limit enrichment to operating modes that require 
additional cooling to protect the engine from damage.
    (3) Show in your application for certification that enrichment will 
rarely occur in use in the equipment in which your engines are 
installed. For example, an engine that is expected to operate 5 percent 
of the time in use with enrichment would clearly not qualify.
    (4) Include in your installation instructions any steps necessary 
for someone installing your engines to prevent enrichment during normal 
operation (see Sec.  1048.130).
    (e) Fuel types. Apply the exhaust emission standards in this 
section for engines using each type of fuel specified in 40 CFR part 
1065, subpart C, for which they are designed to operate. 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.
    (3) Alcohol-fueled engines: THCE emissions.
    (f) Small engines. 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 requirements of this part, as described 
in Sec.  1048.615.
    (g) Useful life. Your engines must meet the exhaust emission 
standards in paragraphs (a) through (c) of this section over their full 
useful life (Sec.  1048.240 describes how to use deterioration factors 
to show this). The minimum useful life is 5,000 hours of operation or 
seven years, whichever comes first.
    (1) Specify a longer useful life in hours for an engine family 
under either of two conditions:
    (i) If you design, advertise, or market your engine to operate 
longer than the minimum useful life (your recommended hours until 
rebuild may indicate a longer design life).
    (ii) If your basic mechanical warranty is longer than the minimum 
useful life.
    (2) You may request a shorter useful life for an engine family if 
you have documentation from in-use engines showing that these engines 
will rarely operate longer than the alternate useful life. The useful 
life value may not be shorter than any of the following:
    (i) 1,000 hours of operation.
    (ii) Your recommended overhaul interval.
    (iii) Your mechanical warranty for the engine.
    (h) Applicability for testing. The standards in this subpart apply 
to all testing, including production-line and in-use testing, as 
described in subparts D and E of this part.


Sec.  1048.105  What evaporative emissions standards and requirements 
apply?

    (a) Starting in the 2007 model year, engines that run on a volatile 
liquid fuel (such as gasoline), must meet the following evaporative 
emissions standards and requirements:
    (1) Evaporative hydrocarbon emissions may not exceed 0.2 grams per 
gallon of fuel tank capacity when measured with the test procedures for 
evaporative emissions in subpart F of this part.
    (2) For nonmetallic fuel lines, you must specify and use products 
that meet the Category 1 specifications in SAE J2260 (incorporated by 
reference in Sec.  1048.810).
    (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. Note that gasoline with a Reid vapor pressure 
of 62 kPa (9 psi) begins to boil at about 53[deg] C.
    (b) Note that Sec.  1048.245 allows you to use design-based 
certification instead of generating new emission data.
    (c) 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, equip each engine with a diagnostic system that 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 of intended closed-loop operation. 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. Your alternative approach must generally 
detect when the emission-control system is not functioning properly.
    (b) Use a malfunction-indicator light (MIL). The MIL must be 
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

[[Page 68351]]

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.  1048.810) or ask us to approve using updated 
versions of (or variations from) these documents:
    (1) ISO 9141-2 Road vehicles-Diagnostic systems--Part 2: CARB 
requirements for interchange of digital information, February 1994.
    (2) ISO 14230-4 Road vehicles--Diagnostic systems--Keyword Protocol 
2000--Part 4: Requirements for emission-related systems, June 2000.


Sec.  1048.115  What other requirements must my engines meet?

    Your engines must meet the following requirements:
    (a) Closed crankcase. Your engines may not vent crankcase emissions 
into the atmosphere throughout their useful life, with the following 
exception: your engines may vent crankcase emissions if you measure and 
include these crankcase emissions with all measured exhaust emissions.
    (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 40 CFR 
1065.515). This requirement applies beginning in the 2007 model year. 
Small-volume engine manufacturers may omit this requirement.
    (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 without damaging the engine 
or equipment. Show in your application for certification how this can 
be done in a way that prevents diluting the exhaust sample with ambient 
air. To do this, you might simply allow for extending the exhaust pipe 
by 20 cm; you might also install exhaust ports downstream of any 
aftertreatment devices.
    (e) Adjustable parameters. Engines that have adjustable parameters 
must meet all the requirements of this part for any adjustment in the 
physically adjustable 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 in-use 
testing.
    (f) Prohibited controls. 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. For example, this would apply if the engine emits a 
noxious or toxic substance it would otherwise not emit that contributes 
to such an unreasonable risk.
    (g) Defeat devices. You may not equip your engines with a defeat 
device. A defeat device is an auxiliary emission-control device 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 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) General requirements. You must warrant to the ultimate buyer 
that the new nonroad engine meets two conditions:
    (1) It is designed, built, and equipped it to conform at the time 
of sale with the requirements of this part.
    (2) It is free from defects in materials and workmanship that may 
keep it from meeting these requirements.
    (b) Warranty period. 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 an emission-
related 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 hour meter, we 
base the warranty periods in this paragraph (b) only on the engine's 
age (in years).
    (c) Components covered. The emission-related warranty must cover 
components whose failure would increase an engine's emissions, 
including electronic controls, fuel injection (for liquid or gaseous 
fuels), exhaust-gas recirculation, aftertreatment, or any other system 
you develop to control emissions. We generally consider replacing or 
repairing other components to be the owner's responsibility.
    (d) Scheduled maintenance. You may schedule emission-related 
maintenance for a component named in paragraph (c) of this section, 
subject to the restrictions of Sec.  1048.125. You are not required to 
cover this scheduled maintenance under your warranty if the component 
meets either of the following criteria:
    (1) The component was in general use on similar engines, and was 
subject to scheduled maintenance, before January 1, 2000.
    (2) Failure of the component would clearly degrade the engine's 
performance enough that the operator would need to repair or replace 
it.
    (e) Limited applicability. You may deny warranty claims under this 
section if the operator caused the problem, as described in 40 CFR 
1068.115.
    (f) Aftermarket parts. As noted 40 CFR 1068.101, it is a violation 
of the Act to manufacture an engine part if one of its main effects is 
to reduce the

[[Page 68352]]

effectiveness of the engine's emission controls. 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 40 CFR 85.2114.


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

    Give the ultimate buyer of each new nonroad 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. Critical emission-
related maintenance includes any adjustment, cleaning, repair, or 
replacement of air-induction, fuel-system, or ignition components, 
aftertreatment devices, exhaust gas recirculation systems, crankcase 
ventilation valves, sensors, or electronic control units. This may also 
include any other component whose only purpose is to reduce emissions 
or whose failure will increase emissions without significantly 
degrading engine performance. You may schedule critical emission-
related maintenance on these components if you meet the following 
conditions:
    (1) You may ask us to approve critical emission-related maintenance 
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.
    (3) You may not schedule critical emission-related maintenance more 
frequently than the following intervals, except as specified in 
paragraph (a)(4) of this section:
    (i) For catalysts, fuel injectors, electronic control units, 
superchargers, and turbochargers: the useful life of the engine family.
    (ii) For gaseous fuel-system components (cleaning without 
disassembly only) and oxygen sensors: 2,500 hours.
    (4) If your engine family has an alternate useful life shorter than 
the period specified in paragraph (a)(3)(ii) of this section, you may 
not schedule maintenance on those components more frequently than the 
alternate useful life (see Sec.  1048.101(g)).
    (b) Recommended additional maintenance. You may recommend any 
additional amount of maintenance on the components listed in paragraph 
(a) of this section, as long as you make clear that these maintenance 
steps are not necessary to keep the emission-related warranty valid. If 
operators do the maintenance specified in paragraph (a) of this 
section, but not the recommended additional maintenance, this does not 
allow you to disqualify them from in-use testing or deny a warranty 
claim.
    (c) Special maintenance. You may specify more frequent maintenance 
to address problems related to special situations such as substandard 
fuel or atypical engine operation. For example, you may specify more 
frequent cleaning of fuel system components for engines you have reason 
to believe will be using fuel that causes substantially more engine 
performance problems than commercial fuels of the same type that are 
generally available across the United States.
    (d) Noncritical emission-related maintenance. For engine parts not 
listed in paragraph (a) of this section, you may schedule any amount of 
emission-related 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.
    (e) Maintenance that is not emission-related. For maintenance 
unrelated to emission controls, you may schedule any amount of 
inspection or maintenance. You may also take these inspection or 
maintenance steps during service accumulation on your test vehicles or 
engines. This might include adding engine oil or changing air, fuel, or 
oil filters.
    (f) 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. 
Your instructions may not require components or service identified by 
brand, trade, or corporate name. Also, do not directly or indirectly 
condition your warranty on a requirement that the vehicle be serviced 
by your franchised dealers or any other service establishments with 
which you have a commercial relationship. You may disregard the 
requirements in this paragraph (f) 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. 
Include all information necessary to ensure that engines installed this 
way will meet emission standards.
    (b) 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 and to locate exhaust sampling ports consistent 
with your application for certification.
    (4) Describe the steps needed to control evaporative emissions, as 
described in Sec. Sec.  1048.105 and 1048.245.
    (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) or to comply with the 
provisions of Sec.  1048.101(d), 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.
    (8) State: ``If you install the engine in a way that makes the 
engine's emission

[[Page 68353]]

control information label hard to read during normal engine 
maintenance, you must place a duplicate label on the vehicle, as 
described in 40 CFR 1068.105.''.
    (c) 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, engrave, or stamp it on the engine.
    (b) At the time of manufacture, add a permanent emission control 
information 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's emission control information 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 (incorporated by 
reference in Sec.  1048.810).
    (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 emission control information 
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 
(and subfamily, where applicable).
    (9) State the engine's displacement (in liters) and maximum brake 
power.
    (10) State the engine's useful life (see Sec.  1048.101(g)).
    (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 emission 
control information 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 have an engine family that has been certified only for 
variable-speed engines, add to the engine label ``VARIABLE-SPEED 
ONLY''.
    (3) If you have an engine family that has been certified only for 
high-load engines, add to the engine label ``THIS ENGINE IS NOT 
INTENDED FOR OPERATION AT LESS THAN 75 PERCENT OF FULL LOAD.''.
    (4) If you certify an engine to the voluntary standards in Sec.  
1048.140, add to the engine label ``BLUE SKY SERIES''.
    (5) If you produce an engine we exempt from the requirements of 
this part, see subpart G of this part and 40 CFR part 1068, subparts C 
and D, for more label information.
    (6) If you certify an engine family under Sec.  1048.101(d) (and 
show in your application for certification that in-use engines will 
experience infrequent high-load operation), add to the engine label 
``THIS ENGINE IS NOT INTENDED FOR OPERATION AT MORE THAN -- PERCENT OF 
FULL LOAD.''. Specify the appropriate percentage of full load based on 
the nature of the engine protection. You may add other statements to 
discourage operation in engine-protection modes.
    (e) Some engines may not have enough space for an emission control 
information 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.


Sec.  1048.140  What are the provisions for certifying Blue Sky Series 
engines?

    This section defines voluntary standards for a recognized level of 
superior emission control for engines designated as ``Blue Sky Series'' 
engines. Blue Sky Series engines must meet one of the following 
standards:
    (a) For the 2003 model year, to receive a certificate of 
conformity, a ``Blue Sky Series'' engine family must meet 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, to receive a certificate 
of conformity, a ``Blue Sky Series'' engine family must meet all the 
requirements in this part that apply to 2007 model year engines. This 
includes all testing and reporting requirements.
    (c) For any model year, to receive a certificate of conformity as a 
``Blue Sky Series'' engine family must meet all the requirements in 
this part, while certifying to the following exhaust emission 
standards:
    (1) 0.8 g/kW-hr HC+NOX and 4.4 g/kW-hr CO using steady-
state and transient test procedures, as described in subpart F of this 
part.
    (2) 1.1 g/kW-hr HC+NOX and 6.6 g/kW-hr CO using field-
testing procedures, as described in subpart F of this part.
    (d) If you certify an engine family under this section, it is 
subject to all the requirements of this part as if these voluntary 
standards were mandatory.


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 
Tier 1 or Tier 2 standards earlier than necessary. For each model year 
of early compliance for an engine family, you may delay compliance with 
the same standards for an equal number of engines from another engine 
family (or families) for one model year. If you certify engines under 
the voluntary standards of Sec.  1048.140, you may not use them in your 
calculation under this paragraph (a). Base your calculation on actual 
power-weighted nationwide sales for each family. You may delay 
compliance for up to three model years. For example, if you sell 1,000 
engines with an average power rating of 60 kW certified a year early, 
you may delay certification to that tier of standards for up to 60,000 
kW-engine-years in any of the following ways:
    (1) Delay certification of another engine family with an average 
power rating of 100 kW of up to 600 engines for one model year.
    (2) Delay certification of another engine family with an average 
power rating of 100 kW of up to 200 engines for three model years.
    (3) Delay certification of one engine family with an average power 
rating of 100 kW of up to 400 engines for one model year and a second 
engine family with an average power rating of 200 kW of up to 50 
engines for two model years.
    (b) Hydrocarbon standards. For 2004 through 2006 model years, 
engine manufacturers may use nonmethane

[[Page 68354]]

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(a).
    (d) Tier 1 deterioration factors. For Tier 1 engines, base the 
deterioration factor from Sec.  1048.240 on 3500 hours of operation. We 
may assign a deterioration factor for a Tier 1 engine family, but this 
would not affect your need to meet all emission standards that apply.
    (e) [Reserved]
    (f) Optional early field testing. You 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 to show that you meet Tier 1 
standards. In this case, the same Tier 1 in-use emission standards 
apply to both steady-state testing in the laboratory and field testing.
    (g) Small-volume provisions. If you qualify for the hardship 
provisions in Sec.  1068.250 of this chapter, we may approve extensions 
of up to four years total.
    (h) 2004 certification. For the 2004 model year, you may choose to 
have the emission standards and other requirements that apply to these 
engines in California serve as the emission standards and other 
requirements applicable under this part, instead of those in subpart A 
of this part. To ask for a certificate under this paragraph (h), send 
us the application for certification that you prepare for the 
California Air Resources Board instead of the information we otherwise 
require in Sec.  1048.205.
    (i) Recreational vehicles. Engines or vehicles identified in the 
scope of 40 CFR part 1051 that are not yet regulated under that part 
are excluded from the requirements of this part. For example, 
snowmobiles produced in 2004 are not subject to the emission standards 
in this part. Once emission standards apply to these engines and 
vehicles, they are excluded from the requirements of this part under 
Sec.  1048.5(a)(1).

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.  1048.255).
    (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 40 CFR 1068.5).
    (e) An authorized representative of your company must approve and 
sign the application.


Sec.  1048.205  What must I include in my application?

    In your application, do all the following things unless we ask you 
to send us less information:
    (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 systems operate.
    (1) Describe in detail all the system components for controlling 
exhaust emissions, including 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.
    (2) Describe the evaporative emission controls.
    (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) Describe how you operated the engine or vehicle prior to 
testing, including 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 nonroad 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 information label.
    (m) Present emission data to show that you meet emission standards.
    (1) Present exhaust 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. 
Starting in the 2007 model year, identify the duty-cycle emission 
standards to which you are certifying engines in the engine family. 
Include test data for each type of fuel from 40 CFR part 1065, subpart 
C, on which you intend for engines in the engine family to operate (for 
example, gasoline, liquefied petroleum gas, methanol, or natural gas). 
If we specify more than one grade of any fuel type (for example, a 
summer grade and winter grade of gasoline), you only need to submit 
test data for one grade, unless the regulations of this part specify 
otherwise for your engine. Note that Sec.  1048.235 allows you to 
submit an application in certain cases without new emission data.
    (2) If your engine family includes a volatile liquid fuel (and you 
do not use design-based certification under Sec.  1048.245) present 
evaporative test data to show your vehicles meet the evaporative 
emission standards we specify in subpart B of this part. Show these 
figures before and after applying deterioration factors, where 
applicable.
    (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(e)), including the following:
    (1) The nominal or recommended setting.
    (2) The intended physically adjustable range, including production 
tolerances if they affect the range.
    (3) The limits or stops used to establish adjustable ranges.
    (q) Describe everything we need to read and interpret all the 
information broadcast by an engine's onboard

[[Page 68355]]

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) State whether your engine will operate in variable-speed 
applications, constant-speed applications, or both. If your 
certification covers only constant-speed or only variable-speed 
applications, describe how you will prevent use of these engines in the 
applications for which they are not certified.
    (s) Starting in the 2007 model year, 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.
    (t) 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.
    (u) 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.
    (v) Include estimates of U.S.-directed production volumes.
    (w) Show us how to modify your production engines to measure 
emissions in the field (see Sec.  1048.115(d)).
    (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)(1) through (7). Decisions made under this section are 
considered to be preliminary approval. We will generally not disapprove 
applications under Sec.  1048.215(b)(1) through (5) where we have given 
you preliminary approval, unless we find new and substantial 
information supporting a different decision.
    (a) If you request preliminary approval related to the upcoming 
model year or the model year after that, we will make a ``best-
efforts'' attempt to make the appropriate determinations as soon as 
possible. We will generally not provide preliminary approval related to 
a future model year more than two years ahead of time.
    (b) You may consider full compliance with published guidance to be 
preliminary approval only if the guidance includes a statement that we 
intend you to consider it as such.


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 deny your application (that is, determine that we cannot 
approve it without revision) if the engine family does not meet the 
requirements of this part or the Act. For example:
    (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 you did not appropriately select the useful 
life under Sec.  1048.101(g), we will require you to lengthen it.
    (3) If we determine you did not appropriately select deterioration 
factors under Sec.  1048.240(c), we will require you to revise them.
    (4) If your diagnostic system is inadequate for detecting 
significant malfunctions in emission-control systems, as described in 
Sec.  1048.110(b), we will require you to make the system more 
effective.
    (5) If your diagnostic system inappropriately disregards trouble 
codes under certain conditions, as described in Sec.  1048.110(f), we 
will require you to change the system to operate under broader 
conditions.
    (6) If your proposed emission control information 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 what the problem is and what needs to be corrected.
    (c) If we determine your application is complete and shows that the 
engine family meets all the requirements of this part and the Act, 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.  1048.820).


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 emission-
related maintenance instructions in a way that could affect emissions. 
In your request, describe the proposed changes to the maintenance 
instructions.
    (a) If you are decreasing the specified level of maintenance, you 
may distribute the new maintenance instructions to your customers 30 
days after we receive your request, unless we disapprove your request. 
We may approve a shorter time or waive this requirement.
    (b) If your requested change would not decrease the specified level 
of maintenance, you may distribute the new maintenance instructions 
anytime after you send your request.
    (c) If you are correcting or clarifying your maintenance 
instructions or if you are changing instructions for maintenance 
unrelated to emission controls, the requirements of this section do not 
apply.


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 (this includes any 
changes you make in selecting emission standards under Sec.  
1048.205(m)(1)).
    (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 nonroad engine, 
include new test data showing that the new or modified nonroad engine 
meets the requirements of this part.
    (c) You may start producing the new or modified nonroad engine 
anytime after you send us your request. If we determine that the 
affected engines do not meet applicable requirements, we will require 
you to cease production of the engines and to recall and correct the 
engines at no expense to the owner. If

[[Page 68356]]

you choose to produce engines under this paragraph (c), we will 
consider that to be consent to recall all engines that we determine do 
not meet applicable standards or other requirements and to remedy the 
nonconformity at no expense to the owner.
    (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. You may 
give us an engineering evaluation instead of test data if we agree that 
you can address our questions without test data.
    (e) If we determine that the certificate of conformity would not 
cover your new or modified nonroad 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.  1048.820).


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 the same in 
all of the following aspects:
    (1) The combustion cycle.
    (2) The cooling system (water-cooled vs. air-cooled).
    (3) Configuration of the fuel system (for example, fuel injection 
vs. carburetion).
    (4) Method of air aspiration.
    (5) The number, location, volume, and composition of catalytic 
converters.
    (6) The number, arrangement, and approximate bore diameter of 
cylinders.
    (7) Evaporative emission controls.
    (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) Location or size of intake and exhaust valves or ports.
    (3) Configuration of the combustion chamber.
    (4) Cylinder stroke.
    (5) Exhaust system.
    (6) Type of fuel.
    (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 appropriately define engine families by the 
method in this section, we will define them based on features related 
to emission characteristics.
    (f) You may ask us to create separate families for exhaust 
emissions and evaporative emissions. If we do this, list both families 
on the emission control information label.
    (g) Where necessary, you may divide an engine family into sub-
families to meet different emission standards, as specified in Sec.  
1048.101(a)(2). For issues related to compliance and prohibited 
actions, we will generally apply decisions to the whole engine family. 
For engine labels and other administrative provisions, we may approve 
your request for separate treatment of sub-families.


Sec.  1048.235  What emission testing must I perform for my application 
for a certificate of conformity?

    This section describes the emission testing you must perform to 
show compliance with the emission standards in Sec. Sec.  1048.101(a) 
and (b) and 1048.105 during certification. See Sec.  1048.205(s) 
regarding emission testing related to the field-testing emission 
standards.
    (a) Test your emission-data engines using the procedures and 
equipment specified in subpart F of this part. For any testing related 
to evaporative emissions, use good engineering judgment to include a 
complete fuel system with the engine.
    (b) Select engine families according to the following criteria:
    (1) For exhaust testing, select from each engine family a test 
engine for each fuel type with a configuration that is most likely to 
exceed the exhaust 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.
    (2) For evaporative testing, select from each engine family a test 
fuel system for each fuel type with a configuration that is most likely 
to exceed the evaporative emission standards, using good engineering 
judgment.
    (c) You may use previously generated emission data in either of the 
following cases:
    (1) You may submit emission data for equivalent engine families 
from previous years instead of doing new tests, but only if the data 
show 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.
    (2) You may submit emission data for equivalent engine families 
performed to show compliance with other standards (such as California 
standards) instead of doing new tests, but only if the data show that 
the test engine would meet all of this part's requirements.
    (d) We may choose to measure emissions from any of your test 
engines (or other engines from the engine family).
    (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(e)).
    (4) Calibrate the test engine within normal production tolerances 
for anything we do not consider an adjustable parameter (see Sec.  
1048.205(p)).


Sec.  1048.240  How do I demonstrate that my engine family complies 
with exhaust emission standards?

    (a) For certification, your engine family is considered in 
compliance with the numerical emission standards in Sec.  1048.101 (a) 
and (b), if all emission-data engines representing that family have 
test results showing emission levels at or below these standards.
    (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) and (b) 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 four significant figures, consistent with 
good engineering judgment. For example, deterioration factors must be 
consistent with emission increases observed from in-use testing with 
similar engines (see subpart E of this part). Small-volume

[[Page 68357]]

engine manufacturers may use assigned deterioration factors that we 
establish. 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 emission standard. 
Compare the rounded emission levels to the emission standard for each 
test engine.


Sec.  1048.245  How do I demonstrate that my engine family complies 
with evaporative emission standards?

    (a) For certification, your engine family is considered in 
compliance with the evaporative emission standards in subpart B of this 
part if you do either of the following:
    (1) You have test results showing that evaporative emissions in the 
family are at or below the standards throughout the useful life.
    (2) Where applicable, you comply with the design specifications in 
paragraph (e) of this section.
    (b) Your engine family does not comply if any fuel system 
representing that family has test results showing emission levels above 
the standards.
    (c) Use good engineering judgment to develop a test plan to 
establish deterioration factors to show how much emissions increase at 
the end of useful life.
    (d) If you adjust the emission levels for deterioration, round them 
to the same number of decimal places as the emission standard. Compare 
the rounded emission levels to the emission standard for each test fuel 
system.
    (e) You may demonstrate that your engine family complies with the 
evaporative emission standards by demonstrating that you use the 
following control technologies:
    (1) For certification to the standards specified in Sec.  
1048.105(a)(1), with the following technologies:
    (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 psig) or a 
vacuum pressure of 10.5 kPa (1.5 psig).
    (ii) [Reserved]
    (2) For certification to the standards specified in Sec.  
1048.105(a)(3), demonstrating that you use design features to prevent 
fuel boiling under all normal operation. You may do this using fuel 
temperature data measured during normal operation.
    (3) We may establish additional options for design-based 
certification where we find that new test data demonstrate that a 
technology will ensure compliance with the emission standards in this 
section.


Sec.  1048.250  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 40 CFR part 1065, 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.  1048.255  When may EPA deny, revoke, or void my certificate of 
conformity?

    (a) We may deny your application for certification if your engine 
family fails to comply with emission standards or other requirements of 
this part or the Act. Our decision may be based on any information 
available to us showing you do not meet emission standards or other 
requirements, including any testing that we conduct under paragraph (f) 
of this section. 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 40 CFR 1068.20).
    (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 intentionally 
submitted false or incomplete information.
    (e) If we deny your application or revoke or void your certificate, 
you may ask for a hearing (see Sec.  1048.820). Any such hearing will 
be limited to substantial and factual issues.
    (f) We may conduct confirmatory testing of your engines as part of 
certification. We may deny your application for certification or revoke 
your certificate if your engines fail to comply with emission standards 
or other requirements during confirmatory testing.

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 the 
requirements of this part or you do not fulfill your

[[Page 68358]]

obligations under this subpart (see Sec. Sec.  1048.325 and 1048.340).
    (c) Other requirements apply to engines that you produce. Other 
regulatory provisions authorize us to suspend, revoke, or void your 
certificate of conformity, or order recalls for engines families 
without regard to whether they have passed these production-line 
testing requirements. The requirements of this part do not affect our 
ability to do selective enforcement audits, as described in part 1068 
of this chapter. Individual engines in families that pass these 
production-line testing requirements must also conform to all 
applicable regulations of this part and 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 subpart'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 pass the production-line testing requirements 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 any number of model years. In determining 
whether to approve your request, we may consider the number of engines 
that have failed the emission tests.
    (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 you meet the emission standards in 
Sec.  1048.101(a).
    (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 only 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] TR08NO02.004

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.
[sigma] = 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

[[Page 68359]]

 
10 1.83                               20 1.73                               30+ 1.70
11 1.81                               21 1.72                               ....................................
----------------------------------------------------------------------------------------------------------------

    (2) Calculate the standard deviation, [sigma], for the test sample 
using the following formula:
[GRAPHIC] [TIFF OMITTED] TR08NO02.005

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-
percent confidence coefficient.
    (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. For example, if N = 3.1 after the third test, 
the sample-size calculation does not allow you to stop testing.
    (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 the requirements of this subpart.
    (h) If the sample-size calculation allows you to stop testing for a 
pollutant, you must continue measuring emission levels of that 
pollutant for any additional tests required under this section. 
However, you need not continue making the calculations specified in 
this section for that pollutant. This paragraph (h) does not affect the 
requirements in section Sec.  1048.320.
    (i) 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 fails the 
production-line testing requirements?

    This section describes the pass/fail criteria for the production-
line testing requirements. We apply this criteria on an engine-family 
basis. See Sec.  1048.320 for the requirements that apply to individual 
engines that fail a production-line test.
    (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):
[GRAPHIC] [TIFF OMITTED] TR08NO02.006


Where:

Ci = The current CumSum statistic.
Ci-1 = The previous CumSum statistic. For the first test, 
CumSum statistic is 0 (i.e. C1 = 0).
Xi = The current emission test result for an individual 
engine.
STD = Emission standard.

    (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 [sigma].
    (g) If the CumSum statistic exceeds the Action Limit in two 
consecutive tests, the engine family fails the production-line testing 
requirements of this subpart. 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?

    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:
    (a) Correct the problem and retest the engine to show it complies 
with all emission standards.
    (b) Include in your written report a description of the test 
results and the remedy for each engine (see Sec.  1048.345).


Sec.  1048.325  What happens if an engine family fails the production-
line requirements?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails 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 fails. 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 (see Sec.  1048.820). If we agree 
before a hearing that we used erroneous information in deciding to 
suspend the certificate, we will reinstate the certificate.
    (d) Section Sec.  1048.335 specifies steps you must take to remedy 
the cause of the production-line failure. All the engines you have 
produced since the end of the last test period are presumed 
noncompliant and should be addressed in your proposed remedy. We may 
require you to apply the remedy to engines produced earlier if we 
determine that the cause of the failure is likely to have affected the 
earlier engines.

[[Page 68360]]

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 for the engine family, 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 comply with the requirements of 
this subpart 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.
    (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?

    Do all the following things unless we ask you to send us less 
information:
    (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 nonroad 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. See Sec.  1048.815 for information on how we treat 
information you consider confidential.


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.
    (7) Any information specified in Sec.  1048.345 that you do not 
include in your written reports.
    (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 maximum brake power, 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.

[[Page 68361]]

    (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 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.
    (c) We may void your certificate of conformity for an engine family 
if you do not meet your obligations under this part.
    (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.
    (e) If in-use testing shows that engines fail to meet emission 
standards or other requirements of this part, we may pursue a recall or 
other remedy as allowed by the Act (see Sec.  1048.415).


Sec.  1048.405  How does this program work?

    (a) You must test in-use engines, for exhaust emissions, 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. You may choose to test additional engine 
families that we do not select.
    (b) Send us an in-use testing plan within 12 calendar months after 
we direct you to test a particular engine family. Complete the testing 
within 24 calendar months after we approve your plan.
    (c) 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(p)). 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 exhaust 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  What happens if 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, notify us within 
fifteen days of completing testing on this family. Otherwise follow the 
reporting instructions in Sec.  1048.420.
    (c) We will consider failure rates, average emission levels, and 
any defects--among other things--to decide on taking remedial action 
under this subpart (see 40 CFR 1068.505). We may consider the results 
from any voluntary additional testing you conduct. We may also consider 
information related to testing from other engine families showing that 
you designed them to exceed the minimum requirements for controlling 
emissions. 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.
    (d) If in-use testing reveals a design or manufacturing defect that 
prevents engines from meeting the requirements of this part, you must 
correct the defect as soon as possible for any future production for 
engines in every family affected by the defect.
    (e) You may voluntarily recall an engine family for emission 
failures, as described in 40 CFR 1068.535, unless we have ordered a 
recall for that family under 40 CFR 1068.505.
    (f) You have the right to a hearing before we order you to recall 
your engines or implement an alternative remedy (see Sec.  1048.820).

[[Page 68362]]

Sec.  1048.420  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) 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.
    (c) We will send copies of your reports to anyone from the public 
who asks for them. See Sec.  1048.815 for information on how we treat 
information you consider confidential.
    (d) We may ask for more information.


Sec.  1048.425  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.  1048.420.
    (d) Keep any additional records related to the procurement process.

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 
40 CFR part 1065 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 full-flow dilute sampling 
procedures in 40 CFR part 1065. Use the applicable duty cycles in 
Sec. Sec.  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 we require in this part, except as noted in Sec.  1048.515. 
Use these test fuels or any commercially available fuel for service 
accumulation.
    (d) To test engines for evaporative emissions, use the equipment 
and procedures specified for testing diurnal emissions in 40 CFR 
86.107-96 and 86.133-96 with fuel meeting the specifications in 40 CFR 
part 1065, subpart C. Measure emissions from a test engine with a 
complete fuel system. Reported emission levels must be based on the 
highest emissions from three successive 24-hour periods of cycling 
temperatures. Note that you may not be required to test for evaporative 
emissions during certification if you certify by design, as specified 
in Sec.  1048.245.
    (e) You may use special or alternate procedures, as described in 40 
CFR 1065.10.
    (f) We may reject data you generate using alternate procedures if 
later testing with the procedures in 40 CFR part 1065 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 more of the following sets of steady-state duty cycles to show 
that the engine meets the steady-state standards in Sec.  1048.101(b):
    (1) 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 1 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          3.0         0.06
2.......................................  Intermediate test speed........          100          3.0         0.02
3.......................................  Intermediate test speed........           75          3.0         0.05
4.......................................  Intermediate test speed........           50          3.0         0.32
5.......................................  Intermediate test speed........           25          3.0         0.30
6.......................................  Intermediate test speed........           10          3.0         0.10
7.......................................  Idle...........................            0          3.0        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.

    (2) 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:

 
                  Table 2 of Sec.   1048.505--5-Mode Duty Cycle for Constant-Speed Engines \1\
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                                          time in     Weighting
                Mode No.                            Engine speed            Torque \2\      mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1.......................................  Maximum test...................          100          3.0         0.05
2.......................................  Maximum test...................           75          3.0         0.25
3.......................................  Maximum test...................           50          3.0         0.30

[[Page 68363]]

 
4.......................................  Maximum test...................           25          3.0         0.30
5.......................................  Maximum test...................           10          3.0        0.10
----------------------------------------------------------------------------------------------------------------
\1\ This duty cycle is analogous to the D2 cycle specified in ISO 8178-4.
\2\ The percent torque is relative to the maximum torque at maximum test 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.
    (4) Use only the duty cycle specified in paragraph (a)(2) of this 
section for all severe-duty engines.
    (5) Use the 2-mode duty cycle described in the following table for 
high-load engines instead of the other duty cycles in this paragraph 
(a):

                     Table 3 of Sec.   1048.505--2-Mode Duty Cycle for High-Load Engines \1\
----------------------------------------------------------------------------------------------------------------
                                                                                          Minimum
                                                                                          time in     Weighting
                Mode No.                            Engine speed            Torque \2\      mode       factors
                                                                                         (minutes)
----------------------------------------------------------------------------------------------------------------
1.......................................  Maximum test...................          100          3.0         0.50
2.......................................  Maximum test...................           75          3.0        0.50
----------------------------------------------------------------------------------------------------------------
\1\ This duty cycle is derived from the D1 cycle specified in ISO 8178-4.
\2\ The percent torque is relative to the maximum torque at maximum test speed.

    (b) If we test an engine to confirm that it meets the duty-cycle 
emission standards, we will use the steady-state 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 at the idle-stop position.
    (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 wide-
open throttle.
    (e) See 40 CFR part 1065 for detailed specifications of tolerances 
and calculations.
    (f) In the normal test sequence described in 40 CFR part 1065, 
subpart F, steady-state testing generally follows the transient test. 
For those cases where we do not require transient testing, perform the 
steady-state test after an appropriate warm-up period, consistent with 
good engineering judgment.


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 to show that the engine meets the transient emission standards 
in Sec.  1048.101(a):
    (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 transient duty cycle that applies 
for that engine family.
    (c) Warm up the test engine as follows:
    (1) Operate the engine 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. For severe-duty 
engines, this engine warm-up procedure may include up to 15 minutes of 
operation over the appropriate duty cycle.
    (2) If the engine was already operating before a test, use good 
engineering judgment to let the engine cool down enough so measured 
emissions during the next test will accurately represent those from an 
engine starting at room temperature. For example, if an engine starting 
at room temperature warms up enough in three minutes to start closed-
loop operation and achieve full catalyst activity, then minimal engine 
cooling is necessary before starting the next test.
    (3) You are not required to measure emissions while the engine is 
warming up. However, you must design your emission-control system to 
start working as soon as possible after engine starting. In your 
application for certification, describe how your engine meets this 
objective (see Sec.  1048.205(b)).


Sec.  1048.515  Field-testing procedures.

    (a) This section describes the procedures to determine whether 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 (b) of 
this section defines the limits of what we will consider normal engine 
operation and ambient conditions. Use the test procedures we specify in 
Sec.  1048.501, except for the provisions we specify in this section. 
Measure emissions with one of the following procedures:
    (1) Remove the selected engines for testing in a laboratory. You 
can use an engine dynamometer to simulate normal operation, as 
described in this section.
    (2) Test the selected engines while they remain installed in the 
equipment. In 40 CFR part 1065, subpart J, we describe the equipment 
and sampling methods for testing engines in the field. Use fuel meeting 
the specifications of 40 CFR 1065.210 or a fuel typical of what you 
would expect the engine to use in service.
    (b) An engine's emissions may not exceed the levels we specify in 
Sec.  1048.101(c) for any continuous sampling period of at least 120 
seconds

[[Page 68364]]

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 maximum brake 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 engines that qualify for the alternate Tier 2 emission 
standards in Sec.  1048.101(d), 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 80.0 and 103.3 kPa (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 40 CFR part 1068 and the 
requirements of the Act. 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 and requirements 
regarding your new nonroad 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) Do 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) Demonstrate that fewer than 50 percent of the engine model's 
total sales, from all companies, are used in nonroad applications.
    (4) The engine must have the label we require under 40 CFR part 86.
    (5) 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's emission control information 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).
    (6) The original and supplemental labels must be readily visible 
after the engine is installed in the equipment or, if the equipment 
obscures the engine's emission control information label, the equipment 
manufacturer must attach duplicate labels, as described in 40 CFR 
1068.105.
    (7) 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.''.
    (d) 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 40 CFR 1068.101.
    (e) If you are the original engine 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). You may include the 
data in your application for certification or in your letter requesting 
the exemption.
    (f) If you are the original engine 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.
    (g) The engine exempted under this section must meet 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 engine manufacturer's 
specifications (see Sec.  1048.605(c)(2)).
    (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 maximum brake power of 30 kW or less.
    (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.
    (b) The only requirements or prohibitions from this part that apply 
to an engine that meets the criteria in paragraph (a) of this section 
are in this section.

[[Page 68365]]

    (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 40 CFR 1068.101.
    (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 
maximum brake power at or below 19 kW.


Sec.  1048.620  What are the provisions for exempting large engines 
fueled by natural gas?

    (a) If an engine meets all the following criteria, it is exempt 
from the requirements of this part:
    (1) The engine must operate solely on natural gas.
    (2) The engine must have maximum brake power 250 kW or higher.
    (3) The engine must be in an engine family that has a valid 
certificate of conformity showing that it meets emission standards for 
engines of that power rating under 40 CFR part 89.
    (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 40 CFR 1068.101.
    (d) Engines exempted under this section are subject to all the 
requirements affecting engines under 40 CFR part 89. The requirements 
and restrictions of 40 CFR part 89 apply to anyone manufacturing these 
engines, anyone manufacturing equipment that uses these engines, and 
all other persons in the same manner as if these were nonroad diesel 
engines.
    (e) You may request an exemption under this section by submitting 
an application for certification for the engines under 40 CFR part 89.


Sec.  1048.625  What special provisions apply to engines using 
noncommercial fuels?

    If you are unable to meet this part's requirements with engines 
using noncommercial fuels (such as unrefined natural gas released by 
oil wells), the following provisions apply for those engines:
    (a) Create a separate engine family.
    (b) Disregard the limits on adjustable parameters in Sec.  
1048.115(e), but make sure the engines meet emission standards with 
normal settings when the engine is using fuel meeting the 
specifications of 40 CFR part 1065, subpart C.
    (c) Add the following information to the emission control 
information label specified in Sec.  1048.135:
    (1) Include instructions describing how to adjust the engine to 
operate in a way that maintains the effectiveness of the emission-
control system.
    (2) State: ``THIS ENGINE IS CERTIFIED TO OPERATE IN APPLICATIONS 
USING NONCOMMERCIAL FUEL. USING IT IN AN APPLICATION INVOLVING ONLY 
COMMERCIAL FUELS MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL 
PENALTY.''.
    (d) Keep records to document the destinations and quantities of 
engines produced under this section.

Subpart H--[Reserved]

Subpart I--Definitions and Other Reference Information


Sec.  1048.801  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. You may ask us to 
exclude a parameter that is difficult to access if it cannot be 
adjusted to affect emissions without significantly degrading 
performance, or if you otherwise show us that it will not be adjusted 
in a way that affects emissions during 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 has the meaning we give in 40 CFR 1051.801.
    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.
    Blue Sky Series engine means an engine meeting the requirements of 
Sec.  1048.140.
    Brake power means the usable power output of the engine, not 
including power required to operate fuel pumps, oil pumps, or coolant 
pumps.
    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 (6405-
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 means the manufacturer of the engine. See the 
definition of ``manufacturer'' in this section.
    Fuel system means all components involved in transporting, 
metering, and mixing the fuel from the fuel tank to the

[[Page 68366]]

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 in 40 CFR 1068.5.
    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.
    High-load engine means an engine for which the engine manufacturer 
can provide clear evidence that operation below 75 percent of maximum 
load in it's final application will be rare.
    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 40 CFR 1065.515.
    Manufacturer has the meaning given in section 216(1) of the Act. In 
general, this term includes any person who manufactures an engine, 
vehicle, or piece of equipment for sale in the United States or 
otherwise introduces a new nonroad engine into commerce in the United 
States. This includes importers who import engines, equipment, or 
vehicles for resale.
    Marine engine means an engine that someone installs or intends to 
install on a marine vessel. There are two kinds of marine engines:
    (1) Propulsion marine engine means a marine engine that moves a 
vessel through the water or directs the vessel's movement.
    (2) Auxiliary marine engine means a marine engine not used for 
propulsion.
    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 brake power means the maximum brake power an engine 
produces at maximum test speed.
    Maximum test speed has the meaning we give in 40 CFR 1065.515.
    Maximum test torque has the meaning we give in 40 CFR 1065.1001.
    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)).
    (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. This installation 
date is based on the time that final assembly of the equipment is 
complete (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 engine 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 40 CFR 85.1703(a). 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. This kind of 
vehicle might commonly be thought of as ``brand new.'' In the case of 
this paragraph (1), 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. In 
this case, the engine is no longer a motor vehicle engine and becomes a 
``new nonroad engine''. 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. For example, this would apply to a stationary engine that is 
no longer used in a stationary application.
    (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. This generally includes installation of used engines in 
new equipment.
    (5) An imported nonroad engine covered by a certificate of 
conformity issued under this part, where someone other than the 
original engine

[[Page 68367]]

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. This 
addresses uncertified engines and vehicles that have been placed into 
service in other countries and that someone seeks to import into the 
United States. Importation of this kind of new nonroad engine (or 
vehicle containing such an engine) is generally prohibited by 40 CFR 
part 1068.
    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.
    Noncommercial fuel means a fuel that is not marketed or sold as a 
commercial product. For example, this includes methane produced and 
released from landfills or oil wells.
    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 or equipment that 
includes nonroad engines.
    Nonroad engine has the meaning given in 40 CFR 1068.30. 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 has the meaning we give in 40 CFR 1051.801. 
(Note: highway motorcycles are regulated under 40 CFR part 86.)
    Oxides of nitrogen has the meaning given it in 40 CFR part 1065
    Placed into service means used for its intended purpose.
    Point of first retail sale means the location at which the retail 
sale occurs. This generally means a dealership.
    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 E29-02 (incorporated 
by reference in Sec.  1048.810), 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.
    Severe-duty application includes concrete saws, concrete pumps, and 
any other application where an engine manufacturer can provide clear 
evidence that the majority of installations need air-cooled engines as 
a result of operation in a severe-duty environment.
    Severe-duty engine means an engine from an engine family in which 
the majority of engines are installed in severe-duty applications.
    Small-volume engine manufacturer means a company with fewer than 
200 employees. This includes any employees working for parent or 
subsidiary companies.
    Snowmobile has the meaning we give in 40 CFR 1051.801.
    Spark-ignition means relating to a gasoline-fueled engine or any 
other 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 40 
CFR 1068.30). 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. If you move a stationary engine 
anytime in its life after it has been in place for at least a full 
year, it becomes a nonroad engine subject to emission standards unless 
it stays at the new location for a full year.
    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.
    Tier 1 means relating to the emission standards and other 
requirements that apply beginning with the 2004 model year.
    Tier 2 means relating to the emission standards and other 
requirements that apply beginning with the 2007 model year.
    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

[[Page 68368]]

U.S. Virgin Islands, and the Trust Territory of the Pacific Islands.
    Upcoming model year means for an engine family the model year after 
the one currently in production.
    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 United 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 nonroad engine is 
required to comply with all applicable emission standards. See Sec.  
1048.101(g).
    Variable-speed engine means an engine that is not a constant-speed 
engine.
    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.
    Wide-open throttle means maximum throttle opening. Unless this is 
specified at a given speed, it refers to maximum throttle opening at 
maximum speed. For electronically controlled or other engines with 
multiple possible fueling rates, wide-open throttle also means the 
maximum fueling rate at maximum throttle opening under test conditions.


Sec.  1048.805  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.
cc cubic centimeters.
CFR Code of Federal Regulations.
cm centimeter.
CO carbon monoxide.
CO2 carbon dioxide.
EPA Environmental Protection Agency.
g/kW-hr grams per kilowatt-hour.
HC hydrocarbon.
ISO International Organization for Standardization.
kPa kilopascals.
kW kilowatts.
LPG liquefied petroleum gas.
m meters.
MIL malfunction-indicator light.
mm Hg millimeters of mercury.
NMHC nonmethane hydrocarbons.
NOX oxides of nitrogen (NO and NO2).
psi pounds per square inch of absolute pressure.
psig pounds per square inch of gauge pressure.
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.  1048.810  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 the U.S. EPA, Air and Radiation 
Docket and Information Center, 1301 Constitution Ave., NW., Room B102, 
EPA West Building, Washington, DC 20460 or the Office of the Federal 
Register, 800 N. Capitol St., NW., 7th Floor, Suite 700, Washington, 
DC.
    (a) ASTM material. Table 1 of Sec.  1048.810 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. Anyone may purchase copies of these materials 
from the American Society for Testing and Materials, 100 Barr Harbor 
Dr., West Conshohocken, PA 19428. Table 1 follows:

               Table 1 of Sec.   1048.810.--ASTM Materials
------------------------------------------------------------------------
                                                              Part 1048
                  Document number and name                    reference
------------------------------------------------------------------------
ASTM E29-02, Standard Practice for Using Significant Digits     1048.801
 in Test Data to Determine Conformance with Specifications.
------------------------------------------------------------------------

    (b) SAE material. Table 2 of Sec.  1048.810 lists material from the 
Society of Automotive Engineering 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. Anyone may purchase copies of these materials from the Society of 
Automotive Engineers, 400 Commonwealth Drive, Warrendale, PA 15096. 
Table 2 follows:

               Table 2 of Sec.   1048.810.--SAE Materials
------------------------------------------------------------------------
                                                              Part 1048
                  Document number and name                    reference
------------------------------------------------------------------------
SAE J1930, Electrical/Electronic Systems Diagnostic Terms,      1048.135
 Definitions, Abbreviations, and Acronyms, May 1998........
------------------------------------------------------------
SAE J2260, Nonmetallic Fuel System Tubing with One or More      1048.105
 Layers, November 1996.....................................
------------------------------------------------------------------------

    (c) ISO material. Table 3 of Sec.  1048.810 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. Anyone may purchase copies of these materials from the 
International Organization for Standardization, Case Postale 56, CH-
1211 Geneva 20, Switzerland. Table 3 follows:

[[Page 68369]]



               Table 3 of Sec.   1048.810.--ISO Materials
------------------------------------------------------------------------
                                                              Part 1048
                  Document number and name                    reference
------------------------------------------------------------------------
ISO 9141-2 Road vehicles--Diagnostic systems--Part 2: CARB      1048.110
 requirements for interchange of digital information,
 February 1994.............................................
------------------------------------------------------------
ISO 14230-4 Road vehicles--Diagnostic systems--Keyword          1048.110
 Protocol 2000--Part 4: Requirements for emission-related
 systems, June 2000........................................
------------------------------------------------------------------------

Sec.  1048.815  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 40 CFR 2.204.


Sec.  1048.820  How do I request a hearing?

    See 40 CFR part 1068, subpart G, for information related to 
hearings.

Appendix I to Part 1048--Large Spark-ignition (SI) Transient 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        torque
                                                (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

[[Page 68370]]

 
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
169.........................................       93            20
170.........................................       93            20
171.........................................       93            18
172.........................................       93            19
173.........................................       93            19
174.........................................       93            16
175.........................................       93            16
176.........................................       93            16
177.........................................       93            18
178.........................................       93            21
179.........................................       93            20
180.........................................       93            20
181.........................................       93            17
182.........................................       93            19
183.........................................       93            17
184.........................................       93            18
185.........................................       93            16
186.........................................       93            16
187.........................................       93            16
188.........................................       93            17
189.........................................       93            16
190.........................................       93            17
191.........................................       93            18
192.........................................       93            17
193.........................................       93            16
194.........................................       93            17
195.........................................       93            17
196.........................................       93            22
197.........................................       93            19
198.........................................       93            19
199.........................................       95            21
200.........................................       95            16
201.........................................       95            12
202.........................................       95            10
203.........................................       96             8
204.........................................       96             7
205.........................................       95             7
206.........................................       96             7
207.........................................       95             6
208.........................................       96             6
209.........................................       96             6
210.........................................       88             6
211.........................................       89            48
212.........................................       93            34
213.........................................       93            27
214.........................................       93            26
215.........................................       93            25
216.........................................       93            22
217.........................................       93            23
218.........................................       93            21
219.........................................       93            21
220.........................................       93            23
221.........................................       93            23
222.........................................       93            23
223.........................................       93            23
224.........................................       93            23
225.........................................       93            22
226.........................................       93            22
227.........................................       93            24
228.........................................       93            23
229.........................................       93            23
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
333.........................................       95             7
334.........................................       95             6
335.........................................       95             6
336.........................................       95             6
337.........................................       87             6
338.........................................       57             6
339.........................................       58             6
340.........................................       58             6
341.........................................       58             6
342.........................................       58             6
343.........................................       58             6
344.........................................       58             6
345.........................................       58             6
346.........................................       58             6
347.........................................       58             6
348.........................................       58             6
349.........................................       58             6
350.........................................       58             6
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

[[Page 68371]]

 
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
385.........................................       93            25
386.........................................       94            28
387.........................................       93            23
388.........................................       93            23
389.........................................       93            25
390.........................................       93            23
391.........................................       93            20
392.........................................       93            19
393.........................................       93            24
394.........................................       93            20
395.........................................       93            18
396.........................................       93            21
397.........................................       95            22
398.........................................       96            16
399.........................................       96            12
400.........................................       95            10
401.........................................       96             9
402.........................................       95             8
403.........................................       96             7
404.........................................       96             7
405.........................................       96             6
406.........................................       96             6
407.........................................       95             6
408.........................................       91             6
409.........................................       58             6
410.........................................       58             6
411.........................................       58             6
412.........................................       58             6
413.........................................       58             6
414.........................................       58             6
415.........................................       58             6
416.........................................       58             6
417.........................................       58             6
418.........................................       58             6
419.........................................       58             6
420.........................................       58             6
421.........................................       58             6
422.........................................       58             6
423.........................................       58             6
424.........................................       58             6
425.........................................       58             6
426.........................................       58             6
427.........................................       58             6
428.........................................       58             6
429.........................................       58             6
430.........................................       58             6
431.........................................       58             6
432.........................................       58             6
433.........................................       58             6
434.........................................       58             6
435.........................................       58             6
436.........................................       58             6
437.........................................       58             6
438.........................................       58             6
439.........................................       58             6
440.........................................       58             6
441.........................................       58             6
442.........................................       58             6
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
481.........................................       95             7
482.........................................       96             7
483.........................................       96             6
484.........................................       96             6
485.........................................       95             6
486.........................................       85             6
487.........................................       56            74
488.........................................       93            52
489.........................................       93            42
490.........................................       93            36
491.........................................       93            35
492.........................................       93            33
493.........................................       93            38
494.........................................       93            40
495.........................................       93            29
496.........................................       93            23
497.........................................       93            23
498.........................................       93            24
499.........................................       93            24
500.........................................       93            20
501.........................................       93            19
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
542.........................................       93            41
543.........................................       93            33
544.........................................       93            26
545.........................................       93            21
546.........................................       93            20
547.........................................       93            17
548.........................................       93            16
549.........................................       93            17
550.........................................       93            16
551.........................................       93            14
552.........................................       93            16
553.........................................       93            15
554.........................................       93            14
555.........................................       93            16
556.........................................       93            15
557.........................................       93            14
558.........................................       93            13
559.........................................       93            14
560.........................................       93            14
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
578.........................................       93            23

[[Page 68372]]

 
579.........................................       93            19
580.........................................       93            21
581.........................................       93            20
582.........................................       93            20
583.........................................       93            20
584.........................................       93            18
585.........................................       93            18
586.........................................       93            21
587.........................................       93            19
588.........................................       93            21
589.........................................       93            19
590.........................................       93            19
591.........................................       93            18
592.........................................       93            18
593.........................................       93            17
594.........................................       93            16
595.........................................       93            16
596.........................................       93            15
597.........................................       93            16
598.........................................       93            19
599.........................................       93            52
600.........................................       93            45
601.........................................       95            39
602.........................................       95            39
603.........................................       95            39
604.........................................       95            39
605.........................................       94            30
606.........................................       95            30
607.........................................       95            29
608.........................................       95            24
609.........................................       94            30
610.........................................       95            28
611.........................................       94            25
612.........................................       94            29
613.........................................       95            32
614.........................................       95            33
615.........................................       95            44
616.........................................       99            37
617.........................................       98            27
618.........................................       98            19
619.........................................       98            13
620.........................................       98            11
621.........................................       98             9
622.........................................       98             7
623.........................................       98             7
624.........................................       98             6
625.........................................       98             6
626.........................................       98             6
627.........................................       98             5
628.........................................       69             6
629.........................................       49             5
630.........................................       51             5
631.........................................       51             5
632.........................................       51             5
633.........................................       51             6
634.........................................       51             6
635.........................................       51             6
636.........................................       51             6
637.........................................       51             5
638.........................................       51             5
639.........................................       51             5
640.........................................       51             5
641.........................................       51             6
642.........................................       51             6
643.........................................       51             6
644.........................................       51             6
645.........................................       51             5
646.........................................       51             6
647.........................................       51             5
648.........................................       51             6
649.........................................       51             5
650.........................................       96            35
651.........................................       95            29
652.........................................       95            26
653.........................................       95            31
654.........................................       95            34
655.........................................       95            29
656.........................................       95            29
657.........................................       95            30
658.........................................       95            24
659.........................................       95            19
660.........................................       95            23
661.........................................       95            21
662.........................................       95            22
663.........................................       95            19
664.........................................       95            18
665.........................................       95            20
666.........................................       94            60
667.........................................       95            48
668.........................................       95            39
669.........................................       95            36
670.........................................       95            27
671.........................................       95            22
672.........................................       95            19
673.........................................       95            22
674.........................................       95            19
675.........................................       94            17
676.........................................       95            27
677.........................................       95            24
678.........................................       98            19
679.........................................       98            19
680.........................................       98            14
681.........................................       98            11
682.........................................       98             9
683.........................................       98             8
684.........................................       98             7
685.........................................       98             6
686.........................................       98             6
687.........................................       98             6
688.........................................       98             6
689.........................................       98             5
690.........................................       81             5
691.........................................       49             5
692.........................................       78            48
693.........................................       95            37
694.........................................       95            31
695.........................................       94            32
696.........................................       94            34
697.........................................       95            29
698.........................................       95            25
699.........................................       94            26
700.........................................       95            28
701.........................................       95            27
702.........................................       94            28
703.........................................       95            30
704.........................................       95            27
705.........................................       95            26
706.........................................       95            27
707.........................................       95            25
708.........................................       95            26
709.........................................       95            25
710.........................................       95            23
711.........................................       95            20
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
741.........................................       95            36
742.........................................       95            36
743.........................................       95            30
744.........................................       95            26
745.........................................       95            27
746.........................................       95            22
747.........................................       95            18
748.........................................       95            19
749.........................................       95            25
750.........................................       94            25
751.........................................       95            21
752.........................................       95            22
753.........................................       95            27
754.........................................       95            27
755.........................................       95            27
756.........................................       95            24
757.........................................       94            20
758.........................................       94            23
759.........................................       94            26
760.........................................       95            25
761.........................................       95            25
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
775.........................................       98             6
776.........................................       95            61
777.........................................       94            51
778.........................................       95            40
779.........................................       94            35
780.........................................       94            36
781.........................................       94            32
782.........................................       95            24
783.........................................       94            19
784.........................................       94            19
785.........................................       95            19
786.........................................       95            19
787.........................................       94            18
788.........................................       94            20
789.........................................       94            23
790.........................................       94            22
791.........................................       95            23
792.........................................       94            20
793.........................................       94            18
794.........................................       95            16

[[Page 68373]]

 
795.........................................       95            17
796.........................................       94            16
797.........................................       94            16
798.........................................       94            17
799.........................................       94            18
800.........................................       94            21
801.........................................       95            21
802.........................................       94            19
803.........................................       95            18
804.........................................       94            19
805.........................................       95            22
806.........................................       95            21
807.........................................       95            19
808.........................................       94            20
809.........................................       94            22
810.........................................       94            22
811.........................................       94            22
812.........................................       95            23
813.........................................       94            22
814.........................................       95            22
815.........................................       95            19
816.........................................       95            16
817.........................................       95            14
818.........................................       95            18
819.........................................       95            18
820.........................................       94            20
821.........................................       94            22
822.........................................       94            19
823.........................................       95            18
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

[[Page 68374]]

 
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
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--Large Spark-ignition (SI) Composite Transient 
Cycle

    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        torque
                                                (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

[[Page 68375]]

 
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
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

[[Page 68376]]

 
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
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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 Which engines are excluded or exempted 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?
1051.25 What requirements apply when installing certified engines in 
recreational vehicles?
Subpart B--Emission Standards and Related Requirements
1051.101 What emission standards and other requirements must my 
vehicles meet?
1051.103 What are the exhaust emission standards for snowmobiles?
1051.105 What are the exhaust emission standards for off-highway 
motorcycles?
1051.107 What are the exhaust emission standards for all-terrain 
vehicles (ATVs) and offroad utility vehicles?
1051.110 What evaporative emission standards must my vehicles meet?
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 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 What must I include in 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 or to change an FEL?
1051.230 How do I select engine families?
1051.235 What emission testing must I perform for my application for 
a certificate of conformity?
1051.240 How do I demonstrate that my engine family complies with 
exhaust emission standards?
1051.245 How do I demonstrate that my engine family complies with 
evaporative emission standards?
1051.250 What records must I keep and make available to EPA?
1051.255 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 fails the production-
line testing requirements?
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 fails the production-line 
requirements?
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?

[[Page 68381]]

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 [Reserved]
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?
1051.510 What special provisions apply for testing ATV engines? 
[Reserved]
1051.515 How do I test my fuel tank for permeation emissions?
1051.520 How do I perform exhaust durability testing?
Subpart G--Compliance Provisions
1051.601 What compliance provisions apply to vehicles and engines 
subject to this part?
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 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 obtain an exemption for competition 
recreational vehicles?
1051.625 What special provisions apply to unique snowmobile designs 
for small-volume manufacturers?
1051.630 What special provisions apply to unique snowmobile designs 
for all manufacturers?
1051.635 What provisions apply to new manufacturers that are small 
businesses?
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 keep?
1051.730 What information must I report?
1051.735 Are there special averaging provisions for snowmobiles?
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 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:
    (1) Snowmobiles.
    (2) Off-highway motorcycles.
    (3) All-terrain vehicles (ATVs).
    (4) Offroad utility vehicles with engines with displacement less 
than or equal to 1000 cc, maximum brake power less than or equal to 30 
kW, and maximum vehicle speed of 25 miles per hour or higher. Offroad 
utility vehicles that are subject to this part are subject to the same 
requirements as ATVs. This means that any requirement that applies to 
ATVs also applies to these offroad utility vehicles, without regard to 
whether the regulatory language mentions offroad utility vehicles.
    (b) [Reserved]
    (c) As noted in subpart G of this part, 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.
    (d) You need not follow this part for vehicles you produce before 
the 2006 model year, unless you certify voluntarily. See Sec. Sec.  
1051.103 through 1051.110, Sec.  1051.145, and the definition of 
``model year'' in Sec.  1051.801 for more information about the timing 
of the requirements.
    (e) The requirements of this part begin to apply when a vehicle is 
new. See the definition of ``new'' in Sec.  1051.801 for more 
information. In some cases, vehicles or engines that have been 
previously used may be considered ``new'' for the purposes of this 
part.
    (f) See Sec. Sec.  1051.801 and 1051.805 for definitions and 
acronyms that apply to this part. The definition section contains 
significant regulatory provisions and it is very important that you 
read them.


Sec.  1051.5  Which engines are excluded or exempted 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 you 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 five things:
    (1) Meet the emission standards and other requirements in subpart B 
of this part.
    (2) Perform preproduction emission tests.
    (3) Apply for certification (see subpart C of this part).
    (4) Do routine emission testing on production vehicles or engines 
as required by subpart D of this part.
    (5) Follow our instructions throughout this part.
    (c) Subpart F of this part describes how to test your engines or 
vehicles (including references to other parts) and 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 actions and penalties for manufacturers and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exemptions and exclusions for certain vehicles and engines.

[[Page 68382]]

    (4) Importing vehicles and engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for 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 vehicle 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, the vehicles 
must meet the applicable emission standards (including evaporative 
emission standards) with the engines installed in the appropriate 
vehicles. You must prepare installation instructions as described in 
Sec.  1051.130 and use good engineering judgment so that the engines 
will meet emission standards after proper installation in the vehicle.
    (d) Identify and label engines you produce under this section 
consistent with the requirements of Sec.  1051.135. On the emission 
control information label, identify the manufacturing date of the 
engine rather than the vehicle.
    (e) You may not use the provisions of this section to circumvent or 
reduce the stringency of this part's standards or other requirements.
    (f) If you certify under paragraph (a)(1) of this section, you may 
ask us to allow you to perform production-line testing on the engine. 
If you certify under paragraph (a)(2) of this section, use good 
engineering judgment to ensure that these engines are produced in the 
same manner as the engines you produce for your vehicles, so that your 
production-line testing results under subpart D of this part would 
apply to them.


Sec.  1051.25  What requirements apply when installing certified 
engines in recreational vehicles?

    (a) If you manufacture recreational vehicles with engines certified 
under Sec.  1051.20, you need not also certify the vehicle under this 
part. The vehicle must nevertheless meet emission standards with the 
engine installed.
    (b) You must follow the engine manufacturer's emission-related 
installation instructions, as described in Sec.  1051.135 and 40 CFR 
1068.105. For example, you must use a fuel system that meets the 
permeation requirements of this part, consistent with the engine 
manufacturer's instructions.
    (c) If you install the engine in a way that makes the engine's 
emission control information label hard to read during normal engine 
maintenance, you must place a duplicate label on the vehicle, as 
described in 40 CFR 1068.105.

Subpart B--Emission Standards and Related Requirements


Sec.  1051.101  What emission standards and other requirements must my 
vehicles meet?

    (a) You must show that your vehicles meet the following:
    (1) The applicable exhaust emission standards in Sec.  1051.103, 
Sec.  1051.105, or Sec.  1051.107.
    (i) For snowmobiles, see Sec.  1051.103.
    (ii) For off-highway motorcycles, see Sec.  1051.105.
    (iii) For all-terrain vehicles and offroad utility vehicles subject 
to this part, see Sec.  1051.107.
    (2) The evaporative emission standards in Sec.  1051.110.
    (3) All the requirements in Sec.  1051.115.
    (b) The certification regulations in subpart C of this part 
describe how you make this showing.
    (c) These standards and requirements apply to all testing, 
including production-line and in-use testing, as described in subparts 
D and E of this part.
    (d) Other sections in this subpart describe other requirements for 
manufacturers such as labeling or warranty requirements.
    (e) It is important that you read Sec.  1051.145 to determine if 
there are other interim requirements or interim compliance options that 
apply for a limited time.
    (f) As is described in Sec.  1051.1(a)(4), offroad utility vehicles 
that are subject to this part are subject to the same requirements as 
ATVs.


Sec.  1051.103  What are the exhaust emission standards for 
snowmobiles?

    (a) Apply the exhaust emission standards in this section by model 
year. Measure emissions with the snowmobile test procedures in subpart 
F of this part.
    (1) 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 (an engine family 
meets emission standards even if its family emission limit is higher 
than the standard, as long as you show that the whole averaging set of 
applicable engine families meet the applicable emission standards using 
emission credits, and the vehicles within the family meet the family 
emission limit). Table 1 also shows the maximum value you may specify 
for a family emission limit, as follows:

                                    Table 1 of Sec.   1051.103.--Exhaust Emission Standards for Snowmobiles (g/kW-hr)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Emission standards           Maximum allowable family emission limits
               Phase                       Model year         Phase-in  --------------------------------------------------------------------------------
                                                             (percent)        HC         HC+NOX         CO           HC         HC+NOX          CO
--------------------------------------------------------------------------------------------------------------------------------------------------------
Phase 1............................  2006.................           50          100  ...........          275  ...........  ...........  ..............
------------------------------------
Phase 1............................  2007-2009............          100          100  ...........          275  ...........  ...........  ..............
------------------------------------
Phase 2............................  2010 and 2011........          100           75  ...........          275  ...........  ...........  ..............
------------------------------------
Phase 3............................  2012 and later.......          100           75        (\1\)        (\1\)          150          165             400
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ See Sec.   1051.103(a)(2).


[[Page 68383]]

    (2) For Phase 3, the HC+NOX and CO standards are defined 
by a functional relationship. Choose your corporate average 
HC+NOX and CO standards for each model year according to the 
following criteria:
    (i) Prior to production, select the HC+NOX standard and 
CO standard (specified as g/kW-hr) so that the combined percent 
reduction from baseline emission levels is greater than or equal to 100 
percent; that is, that the standards comply with the following 
equation:
[GRAPHIC] [TIFF OMITTED] TR08NO02.007

    (ii) Your corporate average HC+NOX standard may not be 
higher than 90 g/kW-hr.
    (iii) Your corporate average CO standard may not be higher than 275 
g/kW-hr.
    (iv) You may use the averaging and banking provisions of subpart H 
of this part to show compliance with these HC+NOX and CO 
standards in this paragraph (a)(2). You may modify your selection of 
the HC+NOX and CO standards at the end of the model year 
under paragraph (a)(2)(i) of this section. You must comply with these 
final corporate average emission standards.
    (b) Apply the exhaust emission standards in this section for 
snowmobiles using each type of fuel specified in 40 CFR part 1065, 
subpart C, for which they are designed to operate. 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.
    (c) Your snowmobiles must meet emission standards over their full 
useful life (Sec.  1051.240 describes how to use deterioration factors 
to show this). The minimum useful life is 8,000 kilometers, 400 hours 
of engine operation, or five calendar years, whichever comes first. You 
must specify a longer useful life in terms of kilometers and hours for 
the engine family if the average service life of your vehicles is 
longer than the minimum value, as follows:
    (1) Except as allowed by paragraph (c)(2) of this section, your 
useful life (in kilometers and hours) may not be less than either of 
the following:
    (i) Your projected operating life from advertisements or other 
marketing materials for any vehicles in the engine family.
    (ii) Your basic mechanical warranty for any engines in the engine 
family.
    (2) Your useful life may be based on the average service life of 
vehicles in the engine family if you show that the average service life 
is less than the useful life required by paragraph (c)(1) of this 
section, but more than the minimum useful life (8,000 kilometers or 400 
hours of engine operation). In determining the actual average service 
life of vehicles in an engine family, we will consider all available 
information and analyses. Survey data is allowed but not required to 
make this showing.


Sec.  1051.105  What are the exhaust emission standards for off-highway 
motorcycles?

    (a) Apply the exhaust emission standards in this section by model 
year. Measure emissions with the off-highway motorcycle test procedures 
in subpart F of this part.
    (1) 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 the HC+NOX and/or CO 
standards (an engine family meets emission standards even if its family 
emission limit is higher than the standard, as long as you show that 
the whole averaging set of applicable engine families meet the 
applicable emission standards using emission credits, and the vehicles 
within the family meet the family emission limit). The phase-in values 
specify the percentage of your U.S.-directed production that must 
comply with the emission standards for those model years. Calculate 
this compliance percentage based on a simple count of production units 
within the engine family. Table 1 follows:

           Table 1 of Sec.   1051.105.--Exhaust Emission Standards for Off-Highway Motorcycles (g/km)
----------------------------------------------------------------------------------------------------------------
                                                                 Emission standards     Maximum allowable family
                                                   Phase-in  --------------------------      emission limits
            Phase                 Model year      (percent)                            -------------------------
                                                                 HC+NOX         CO         HC+NOX         CO
----------------------------------------------------------------------------------------------------------------
Phase 1......................  2006............           50          2.0           25         20.0           50
                              -------------------
                               2007 and later..          100          2.0           25         20.0           50
----------------------------------------------------------------------------------------------------------------

    (2) For model years 2007 and later you may choose to certify all of 
your off-highway motorcycles to an HC+NOX standard of 4.0 g/
km and a CO standard of 35 g/km, instead of the standards listed in 
paragraph (a)(1) of this section. To certify to the standards in this 
paragraph (a)(2), you must comply with the following provisions:
    (i) You may not request an exemption for any off-highway 
motorcycles under Sec.  1051.620
    (ii) At least ten percent of your off-highway motorcycles for the 
model year must have four of the following features:
    (A) The absence of a headlight or other lights.
    (B) The absence of a spark arrestor.
    (C) The absence of manufacturer warranty.
    (D) Suspension travel greater than 10 inches.
    (E) Engine displacement greater than 50 cc.
    (F) The absence of a functional seat.
    (iii) You may use the averaging and banking provisions of subpart H 
of this part to show compliance with this HC+NOX standard, 
but not this CO standard. If you use the averaging or banking 
provisions to show compliance, your FEL for HC+NOX may not 
exceed 8.0 g/km for any engine family. You may not use the trading 
provisions of subpart H of this part.
    (3) You may certify off-highway motorcycles with engines that have 
total

[[Page 68384]]

displacement of 70 cc or less to the exhaust emission exhaust standards 
in Sec.  1051.615 instead of certifying them to the exhaust emission 
standards of this section.
    (b) Apply the exhaust emission standards in this section for off-
highway motorcycles using each type of fuel specified in 40 CFR part 
1068, subpart C, for which they are designed to operate. You must meet 
the numerical emission standards for hydrocarbons in this section based 
on the following types of hydrocarbon emissions for off-highway 
motorcycles powered by the following fuels:
    (1) Gasoline- and LPG-fueled off-highway motorcycles: THC 
emissions.
    (2) Natural gas-fueled off-highway motorcycles: NMHC emissions.
    (3) Alcohol-fueled off-highway motorcycles: THCE emissions.
    (c) Your off-highway motorcycles must meet emission standards over 
their full useful life (Sec.  1051.240 describes how to use 
deterioration factors to show this). The minimum useful life is 10,000 
kilometers or five years, whichever comes first. You must specify a 
longer useful life for the engine family in terms of kilometers if the 
average service life of your vehicles is longer than the minimum value, 
as follows:
    (1) Except as allowed by paragraph (c)(2) of this section, your 
useful life (in kilometers) may not be less than either of the 
following:
    (i) Your projected operating life from advertisements or other 
marketing materials for any vehicles in the engine family.
    (ii) Your basic mechanical warranty for any engines in the engine 
family.
    (2) Your useful life may be based on the average service life of 
vehicles in the engine family if you show that the average service life 
is less than the useful life required by paragraph (c)(1) of this 
section, but more than the minimum useful life (10,000 kilometers). In 
determining the actual average service life of vehicles in an engine 
family, we will consider all available information and analyses. Survey 
data is allowed but not required to make this showing.


Sec.  1051.107  What are the exhaust emission standards for all-terrain 
vehicles (ATVs) and offroad utility vehicles?

    This section specifies the exhaust emission standards that apply to 
ATVs. As is described in Sec.  1051.1(a)(4), offroad utility vehicles 
that are subject to this part are subject to these same standards.
    (a) Apply the exhaust emission standards in this section by model 
year. Measure emissions with the ATV test procedures in subpart F of 
this part.
    (1) 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 
(an engine family meets emission standards even if its family emission 
limit is higher than the standard, as long as you show that the whole 
averaging set of applicable engine families meet the applicable 
emission standards using emission credits, and the vehicles within the 
family meet the family emission limit). Table 1 also shows the maximum 
value you may specify for a family emission limit. The phase-in values 
in the table specify the percentage of your total U.S.-directed 
production that must comply with the emission standards for those model 
years. Calculate this compliance percentage based on a simple count of 
production units within the engine family. This applies to your total 
production of ATVs and offroad utility vehicles that are subject to the 
standards of this part; including both ATVs and offroad utility 
vehicles subject to the standards of this section and ATVs and offroad 
utility vehicles certified to the standards of other sections in this 
part 1051 (such as Sec.  1051.615, but not including vehicles certified 
under other parts in this chapter (such as 40 CFR part 90). Table 1 
follows:

                     Table 1 of Sec.   1051.107.--Exhaust Emission Standards for ATVs (g/km)
----------------------------------------------------------------------------------------------------------------
                                                                 Emission standards     Maximum allowable family
                                                   Phase-in  --------------------------      emission limits
            Phase                 Model year      (percent)                            -------------------------
                                                                 HC+NOX         CO         HC+NOX         CO
----------------------------------------------------------------------------------------------------------------
Phase 1......................  2006............           50          1.5           35         20.0           50
                               2007 and later..          100          1.5           35         20.0           50
----------------------------------------------------------------------------------------------------------------

    (2) You may certify ATVs with engines that have total displacement 
of less than 100 cc to the exhaust emission exhaust standards in Sec.  
1051.615 instead of certifying them to the exhaust emission standards 
of this section.
    (b) Apply the exhaust emission standards in this section for ATVs 
using each type of fuel specified in 40 CFR 1065, subpart C for which 
they are designed to operate. 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.
    (c) Your ATVs must meet emission standards over their full useful 
life (Sec.  1051.240 describes how to use deterioration factors to show 
this). The minimum useful life is 10,000 kilometers, 1000 hours of 
engine operation, or five years, whichever comes first. You must 
specify a longer useful life for the engine family in terms of 
kilometers and hours if the average service life of your vehicles is 
longer than the minimum value, as follows:
    (1) Except as allowed by paragraph (c)(2) of this section, your 
useful life (in kilometers) may not be less than either of the 
following:
    (i) Your projected operating life from advertisements or other 
marketing materials for any vehicles in the engine family.
    (ii) Your basic mechanical warranty for any engines in the engine 
family.
    (2) Your useful life may be based on the average service life of 
vehicles in the engine family if you show that the average service life 
is less than the useful life required by paragraph (c)(1) of this 
section, but more than the minimum useful life (10,000 kilometers or 
1,000 hours of engine operation). In determining the actual average 
service life of vehicles in an engine family, we will consider all 
available information and analyses. Survey data is allowed but not 
required to make this showing.


Sec.  1051.110  What evaporative emission standards must my vehicles 
meet?

    All of your new vehicles must meet the emission standards of this 
section over their full useful life, as specified in this section. Note 
that Sec.  1051.245 allows you to use design-based certification 
instead of generating new emission data.

[[Page 68385]]

    (a) Beginning with the 2008 model year, permeation emissions from 
your vehicle's fuel tank(s) may not exceed 1.5 grams per square-meter 
per day when measured with the test procedures for tank permeation in 
subpart F of this part. You may use the averaging, banking, and trading 
provisions of subpart H of this part to show compliance.
    (b) Beginning with the 2008 model year, permeation emissions from 
your vehicle's fuel lines may not exceed 15 grams per square-meter per 
day when measured with the test procedures for fuel-line permeation in 
subpart F of this part. Use the inside diameter of the hose to 
determine the surface area of the hose.


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 throughout their 
useful life.
    (b) Emission sampling capability. Produce all your vehicles to 
allow sampling of exhaust emissions in the field without damaging the 
vehicle. Show in your application for certification how this can be 
done in a way that prevents diluting the exhaust sample with ambient 
air. To do this, you might simply allow for extending the exhaust pipe 
by 20 cm; you might also install sample ports in the exhaust 
(downstream of any aftertreatment devices).
    (c) Adjustable parameters. If your vehicles have adjustable 
parameters, they must meet all the requirements of this part for any 
adjustment in the physically adjustable range. Note that parameters 
that control the air-fuel ratio may be treated separately under 
paragraph (d) of this section.
    (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). 
Examples include carburetor jets and needles. In the case of carburetor 
jets and needles, 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 size and needle 
configuration as a function of atmospheric conditions).
    (2) This adjustable range (specified in paragraph (d)(1) of this 
section) 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:
    (A) The air-fuel ratio that would result from operating the vehicle 
as you produce it at the specified test conditions. This paragraph 
(d)(2)(ii)(A) does not apply if you produce the vehicle with an 
unjetted carburetor so that the vehicle must be jetted by the dealer or 
operator.
    (B) The air-fuel ratio of the engine when you do durability 
testing.
    (C) The richest air-fuel ratio that you recommend to your customers 
for the applicable ambient conditions.
    (3) If the air-fuel ratio of your vehicle is adjusted primarily by 
changing the carburetor jet size and/or needle configuration, you may 
submit your recommended jetting chart instead of the range of air-fuel 
ratios required by paragraph (d)(1) of this section if the following 
criteria are met:
    (i) Good engineering judgment indicates that vehicle operators 
would not have an incentive to operate the vehicle with richer air-fuel 
ratios than recommended.
    (ii) The chart is based on use of a fuel that is equivalent to the 
specified test fuel(s). As an alternative you may submit a chart based 
on a representative in-use fuel if you also provide instructions for 
converting the chart to be applicable to the test fuel(s).
    (iii) The chart is specified in units that are adequate to make it 
practical for an operator to keep the vehicle properly jetted during 
typical use. For example, charts that specify jet sizes based on 
increments of temperature smaller than 20[deg]F (11.1[deg]C) or 
increments of altitude less than 2000 feet would not meet this 
criteria. Temperature ranges must overlap by at least 5[deg]F 
(2.8[deg]C).
    (iv) You follow the jetting chart for durability testing.
    (v) You do not produce your vehicles with jetting richer than the 
jetting chart recommendation for the intended vehicle use.
    (4) 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. If we 
allow you to submit your recommended jetting chart instead of the range 
of air-fuel ratios required by paragraph (d)(1) of this section, adjust 
the engine to the richest specification within the jetting chart for 
the test conditions, unless we specify a leaner setting. We may not 
specify a setting leaner than that described in paragraph (d)(2)(i) of 
this section.
    (e) Prohibited controls. 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. For example, this would apply if the engine emits a 
noxious or toxic substance it would otherwise not emit that contributes 
to such an unreasonable risk.
    (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. There are no noise standards specified in this 
part 1051. See 40 CFR Chapter I, Subchapter G, to determine if your 
vehicle must meet noise emission standards under another part our 
regulations.


Sec.  1051.120  What warranty requirements apply to me?

    (a) General requirements. You must warrant to the ultimate buyer 
that the new engine meets two conditions:
    (1) It is designed, built, and equipped to conform at the time of 
sale with the requirements of this part.
    (2) It is free from defects in materials and workmanship that may 
keep it from meeting these requirements.
    (b) Warranty period. Your emission-related warranty must be valid 
for at least 50 percent of the vehicle's

[[Page 68386]]

minimum useful life in kilometers or at least 30 months, whichever 
comes first. You may offer an emission-related 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 a vehicle has no odometer, base warranty periods in this paragraph 
(b) only on the vehicle's age (in years).
    (c) Components covered. The emission-related warranty must cover 
components whose failure would increase an engine's emissions, 
including electronic controls, fuel injection (for liquid or gaseous 
fuels), exhaust-gas recirculation, aftertreatment, or any other system 
you develop to control emissions. We generally consider replacing or 
repairing other components to be the owner's responsibility.
    (d) Scheduled maintenance. You may schedule emission-related 
maintenance for a component named in paragraph (c) of this section, 
subject to the restrictions of Sec.  1051.125. You are not required to 
cover this scheduled maintenance under your warranty if the component 
meets either of the following criteria:
    (1) The component was in general use on similar engines, and was 
subject to scheduled maintenance, before January 1, 2000.
    (2) Failure of the component would clearly degrade the engine's 
performance enough that the operator would need to repair or replace 
it.
    (e) Limited applicability. You may deny warranty claims under this 
section if the operator caused the problem, as described in 1068.115 of 
this chapter. You may ask us to allow you to exclude from your 
emission-related warranty certified vehicles that have been used 
significantly for competition, especially certified motorcycles that 
meet at least four of the criteria in Sec.  1051.620(b)(1).
    (f) Aftermarket parts. As noted in Sec.  1068.101 of this chapter, 
it is a violation of the Act to manufacture a vehicle part if one of 
its main effects is to reduce the effectiveness of the vehicle's 
emission controls. 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.  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. Critical emission-
related maintenance includes any adjustment, cleaning, repair, or 
replacement of air-induction, fuel-system, or ignition components, 
aftertreatment devices, pulse-air valves, exhaust gas recirculation 
systems, crankcase ventilation valves, sensors, or electronic control 
units. This may also include any other component whose only purpose is 
to reduce emissions or whose failure will increase emissions without 
significantly degrading engine performance. You may schedule critical 
emission-related maintenance on these components if you meet the 
following conditions:
    (1) You may ask us to approve critical emission-related maintenance 
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.
    (3) You may not schedule critical emission-related maintenance 
within the minimum useful life period for aftertreatment devices, 
pulse-air valves, fuel injectors, oxygen sensors, electronic control 
units, superchargers, or turbochargers.
    (b) Recommended additional maintenance. You may recommend, but not 
require, any additional amount of maintenance on the components listed 
in paragraph (a) of this section. However, you must make it clear that 
these maintenance steps are not necessary to keep the emission-related 
warranty valid. If operators do the maintenance specified in paragraph 
(a) of this section, but not the recommended additional maintenance, 
this does not allow you to disqualify them from in-use testing or deny 
a warranty claim.
    (c) Special maintenance. You may specify more frequent maintenance 
to address problems related to special situations such as substandard 
fuel or atypical engine operation. You may not perform this special 
maintenance during service accumulation or durability testing.
    (d) Noncritical emission-related maintenance. For engine parts not 
listed in paragraph (a) of this section, you may schedule any amount of 
emission-related 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.
    (e) Maintenance that is not emission-related. For maintenance 
unrelated to emission controls, you may schedule any amount of 
inspection or maintenance. You may also take these inspection or 
maintenance steps during service accumulation on your test vehicles or 
engines. This might include adding engine oil or adjusting chain 
tension, clutch position, or tire pressure.
    (f) 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. 
Your instructions may not require any component or service identified 
by brand, trade, or corporate name. Also, do not directly or indirectly 
condition your warranty on a requirement that the vehicle be serviced 
by your franchised dealers or any other service establishments with 
which you have a commercial relationship. You may disregard the 
requirements in this paragraph (f) 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 engine buyer written instructions for 
installing it consistent with the requirements of this part. Include 
all information necessary to ensure that engines installed this way 
will meet emission standards.
    (b) These instructions must have the following information:
    (1) Include the heading: ``Emission-related installation 
instructions''.

[[Page 68387]]

    (2) State: ``Failing to follow these instructions when installing a 
certified engine in a recreational vehicle may violate federal law (40 
CFR 1068.105(b)), and subject you 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 comply with the evaporative 
emission standards in Sec.  1051.110.
    (5) 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.
    (6) Describe any other instructions to make sure the installed 
engine will operate according to any design specifications you describe 
in your application for certification.
    (7) State: ``If you install the engine in a way that makes the 
engine's emission control information label hard to read during normal 
engine maintenance, you must place a duplicate label on the vehicle, as 
described in 40 CFR 1068.105.''.
    (c) You do not need installation instructions for engines you 
install in your own vehicles.


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

    Each of your vehicles must have three labels: a vehicle 
identification number as described in paragraph (a) of this section, an 
emission control information label as described in paragraphs (b) 
through (e) of this section, and a consumer information label as 
described in paragraph (g) of this section.
    (a) Assign each production vehicle a unique identification number 
and permanently and legibly affix, stamp, or engrave it on the vehicle.
    (b) At the time of manufacture, add a permanent label identifying 
the emission controls for each vehicle. This is the vehicle's 
``emission control information label.'' To meet labeling requirements, 
do the following 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 
vehicle's entire life.
    (3) Secure it to a part of the vehicle (or engine) needed for 
normal operation and not normally requiring replacement.
    (4) Write it in block letters in English.
    (5) Attach the label in a location where it can be easily read.
    (c) On your label, do these 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 (incorporated by 
reference in 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 emission control 
information 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 maximum brake 
power. You do not need to include the engine's displacement and power 
on the emission control information label if the vehicle is permanently 
labeled with a unique model name that corresponds to a specific 
displacement/power configuration.
    (10) State the engine's useful life if it is different than the 
minimum value.
    (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) 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 emission 
control information label. If you produce an engine or vehicle that we 
exempt from the requirements of this part, see subpart G of this part 
and 40 CFR part 1068, subparts C and D, for more label information.
    (e) Some engines may not have enough space for an emission control 
information label with all the required information. In this case, you 
may omit the information required in paragraphs (c)(3), (c)(4), and 
(c)(5) 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) Label every vehicle certified under this part with a removable 
hang-tag showing its emission characteristics relative to other models. 
The label should be attached securely to the vehicle before it is 
offered for sale in such a manner that it would not be accidentally 
removed prior to sale. Use the applicable equations of this paragraph 
(g) to determine the normalized emission rate (NER) from the FEL for 
your vehicle. If the vehicle is certified without using the averaging 
provisions of subpart H, use the final deteriorated emission level. 
Round the resulting normalized emission rate for your vehicle to the 
nearest whole number. We may specify a standardized format for labels. 
At a minimum, the tag should include: The manufacturer's name, vehicle 
model name, engine description (500 cc two-stroke with DFI), the NER, 
and a brief explanation of the scale (for example, note that 0 is the 
cleanest and 10 is the least clean).
    (1) For snowmobiles, use the following equation:

NER = 16.61 x log(2.667 x HC + CO) - 38.22

Where:
    HC and CO are the cycle-weighted FELs (or emission rates) for 
hydrocarbons and carbon monoxide in g/kW-hr.

    (2)(i) For off-highway motorcycles with HC+NOX emissions 
less than or equal to 2.0 g/km, use the following equation:

(NER = 2.500 x (HC + NOX)

Where:
    HC +NOX is the FEL (or the sum of the cycle-weighted 
emission rates) for hydrocarbons and oxides of nitrogen in g/km.

    (ii) For off-highway motorcycles with HC+NOX emissions 
greater than 2.0 g/km, use the following equation:

NER = 5.000 x log(HC + NOX) + 3.495

Where:
    HC +NOX is the FEL (or the sum of the cycle-weighted 
emission rates) for hydrocarbons and oxides of nitrogen in g/km.

    (3)(i) For ATVs with HC+NOX emissions less than or equal 
to 1.5 g/km, use the following equation:

NER = 3.333 x (HC + NOX)

Where:
    HC +NOX is the FEL (or the sum of the cycle-weighted 
emission rates) for hydrocarbons and oxides of nitrogen in g/km.

    (ii) For ATVs with HC+NOX emissions greater than 1.5 g/
km, use the following equation:

NER = 4.444 x log(HC + NOX) + 4.217

Where:
    HC +NOX is the FEL (or the sum of the cycle-weighted 
emission rates) for hydrocarbons and oxides of nitrogen in g/km.

[[Page 68388]]

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. Contact us before 2006 if you intend to use 
these provisions.
    (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, only 50 
percent of the models you produce (instead of all of the models you 
produce) must meet emission standards in the first two years they apply 
to you as a small-volume manufacturer, as described in paragraph (a)(1) 
of this section. For example, this alternate phase-in allowance would 
allow small-volume snowmobile manufacturers to comply with the Phase 1 
exhaust standards by certifying 50 percent of their snowmobiles in 
2008, 50 percent of their snowmobiles in 2009, and 100 percent in 2010.
    (3) Your vehicles for model years before 2011 may be exempt from 
the exhaust standards of this part if you meet the following 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) 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) Demonstrate that fewer than 50 percent of the engine model's 
total sales, from all companies, are used in recreational vehicles 
regulated under this part.
    (4) All vehicles certified or exempted under this paragraph (a) 
must be labeled according to our specifications. The label must include 
the following:
    (i) The heading ``EMISSION CONTROL INFORMATION''.
    (ii) Your full corporate name and trademark.
    (iii) A description of the provisions under which the vehicle is 
either exempted or certified.
    (iv) Other information that we specify to you in writing.
    (b) Optional emission standards for ATVs. To meet ATV standards for 
model years before 2009, 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.  1051.107. 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.  1051.107(a). You may also not 
exchange credits between engine families certified to the standards for 
engines above 225 cc and engine families certified to the standards for 
engines below 225 cc. The phase-in percentages in the table specify the 
percentage of your U.S.-directed production that must comply with the 
emission standards for those model years. Table 1 follows:

               Table 1 of Sec.   1051.145.--Optional Exhaust Emission Standards for ATVs (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                                              Emission standards       Maximum
                                                                          --------------------------  allowable
                                                                                                        family
         Engine displacement                Model year          Phase-in                               emission
                                                               (percent)      HC+NOX         CO         limits
                                                                                                    ------------
                                                                                                        HC+NOX
----------------------------------------------------------------------------------------------------------------
                                      2006..................           50         16.1          400         32.2
                                     -------------------------
<225 cc.............................  2007 and 2008.........          100         16.1          400         32.2
                                     -------------------------
                                      2006..................           50         13.4          400         26.8
                                     -------------------------
=225 cc..................  2007 and 2008.........          100         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
----------------------------------------------------------------------------------------------------------------
                                                                    Torque
                                                 Engine speed     (percent of
                   Mode No.                      (percent of     maximum test   Minimum time in     Weighting
                                                 maximum test   torque at test   mode (minutes)      factors
                                                    speed)          speed)
----------------------------------------------------------------------------------------------------------------
1............................................              85        100                   5.0             0.09
----------------------------------------------
2............................................              85         75                   5.0             0.20

[[Page 68389]]

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

    (3) For ATVs certified to the standards in this paragraph (b) use 
the following equation to determine the normalized emission rate 
required by Sec.  1051.135(g):

NER = 9.898 x log(HC + NOX - 4.898

Where:
    HC +NOX is the sum of the cycle-weighted emission 
rates for hydrocarbons and oxides of nitrogen in g/kW-hr.

    (c) Production-line testing. Vehicles certified to the Phase 1 or 
Phase 2 standards in Sec.  1051.103, or the Phase 1 standards in 
Sec. Sec.  1051.105 or 1051.107 are exempt from the production-line 
testing requirements of subpart D of this part if they are certified 
without participating in the emission averaging, banking and trading 
program described in Subpart H of this part.
    (d) Phase-in flexibility. For model years before 2014, if you make 
a good faith effort to comply, but fail to meet the sales requirements 
of this part during a phase-in period for new standards, or fail to 
meet the average emission standards, we may approve an alternative 
remedy to offset the emission reduction deficit using future emission 
credits under this part. To apply for this, you must:
    (1) Submit a plan during the certification process for the first 
model year of the phase-in showing how you project to meet the sales 
requirement of the phase-in.
    (2) Notify us less than 30 days after you determine that you are 
likely to fail to comply with the sales requirement of the phase-in.
    (3) Propose a remedy that will achieve equivalent or greater 
emission reductions compared to the specified phase-in requirements, 
and that will offset the deficit within one model year.
    (e) Snowmobile testing. You may use the raw sampling procedures 
described in 40 CFR part 91, subparts D and E, for emission testing of 
snowmobiles for model years prior to 2010. For later model years, you 
may use these procedures if you show that they produce emission 
measurements equivalent to the otherwise specified test procedures.
    (f) Early credits. Snowmobile manufacturers may generate early 
emission credits in one of the following ways, by certifying some or 
all of their snowmobiles prior to 2006. Credit generating snowmobiles 
must meet all other applicable requirements of this part. No early 
credits may be generated by off-highway motorcycles or ATVs.
    (1) You may certify one or more snowmobile engine families to FELs 
(HC and CO) below the numerical level of the Phase 2 standards prior to 
the date when compliance with the Phase 1 standard is otherwise 
required. Credits are calculated relative to the Phase 2 standards. 
Credits generated under this paragraph (f)(1) may be used at any time 
before 2012.
    (2) You may certify a snowmobile engine family to FELs (HC and CO) 
below the numerical level of the Phase 1 standards prior to the date 
when compliance with the Phase 1 standard is otherwise required. 
Credits are calculated relative to the Phase 1 standards. Credits 
generated under this paragraph (f)(2) may only be used for compliance 
with the Phase 1 standards. You may generate credits under this 
paragraph (f)(2) without regard to whether the FELs are above or below 
the numerical level of the Phase 2 standards.
    (g) Pull-ahead option for permeation emissions. Manufacturers 
choosing to comply with an early tank permeation standard of 3.0 g/
m\2\/day prior to model year 2008 may be allowed to delay compliance 
with the 1.5 g/m\2\/day standard, for an equivalent number of tanks, 
subject to the following provisions:
    (1) Pull-ahead tanks meeting the 3.0 g/m\2\/day standard must be 
certified and must meet all applicable requirements other than those 
limited to compliance with the exhaust standards.
    (2) Tanks for which compliance with the 1.5 g/m\2\/day standard is 
delayed must meet the 3.0 g/m\2\/day standard.
    (3) You may delay compliance with the 1.5 g/m\2\/day standard for 
one tank for one year for each tank-year of credit generated early.
    (4) You may not use credits for a tank that is larger than the tank 
from which you generated the credits.

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.  1051.255).
    (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  What must I include in my application?

    In your application, do all the following things unless we ask you 
to send us less information:
    (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). List vehicle configurations 
and model names that are included in the engine family.
    (b) Explain how the emission-control systems operate.
    (1) Describe in detail all the system components for controlling 
exhaust emissions, including auxiliary emission-control devices and all 
fuel-system components you will install on 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

[[Page 68390]]

detailed calibrations for components unless we ask for them.
    (2) Describe the evaporative emission controls.
    (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) Describe how you operated the engine or vehicle prior to 
testing, including the duty cycle and the number of engine operating 
hours used to stabilize emission levels, and any scheduled maintenance 
you performed.
    (f) List the specifications of the test fuels to show that they 
fall within the required ranges.
    (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 information label.
    (k) Present emission data to show that you meet emission standards.
    (1) Present exhaust emission data for HC, NOX (as 
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 from part 
1065, subpart C, of this chapter on which you intend for vehicles in 
the engine family to operate (for example, gasoline, liquefied 
petroleum gas, methanol, or natural gas). If we specify more than one 
grade of any fuel type (for example, a summer grade and winter grade of 
gasoline), you only need to submit test data for one grade, unless the 
regulations of this part explicitly specify otherwise for your vehicle.
    (2) Present evaporative test data for HC to show your vehicles meet 
the evaporative emission standards we specify in subpart B of this 
part. Show these figures before and after applying deterioration 
factors for each vehicle or engine, where applicable. If you did not 
perform the testing, identify the source of the test data.
    (3) Note that Sec.  1051.235 and 1051.245 allows you to submit an 
application in certain cases without new emission data.
    (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.
    (2) The intended physically adjustable range, including production 
tolerances if they affect the range.
    (3) The limits or stops used to establish adjustable ranges.
    (4) The air-fuel ratios or jet chart 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.
    (q) Include estimates of U.S.-directed production volumes.
    (r) Show us how to modify your production vehicles to measure 
emissions in the field (see Sec.  1051.115).
    (s) 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)(1) through (5). Decisions made under this section are 
considered to be preliminary approval. We will generally not disapprove 
applications under Sec.  1051.215(b)(1) through (5) where we have given 
you preliminary approval, unless we find new and substantial 
information supporting a different decision.
    (a) If you request preliminary approval related to the upcoming 
model year or the model year after that, we will make a ``best-
efforts'' attempt to make the appropriate determinations as soon as 
possible. We will generally not provide preliminary approval related to 
a future model year more than two years ahead of time.
    (b) If we have published general guidance that serves as our 
determination for your situation, you may consider that to be 
preliminary approval.


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 deny your application (that is, determine that we cannot 
approve it without revision) if the engine family does not meet the 
requirements of this part or the Act. For example:
    (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 you did not appropriately select the useful 
life as specified in Sec.  1051.103(c), Sec.  1051.105(c), or Sec.  
1051.107(c), we will require you to lengthen it.
    (3) If we determine you did not appropriately select deterioration 
factors under Sec.  1051.240(c), we will require you to revise them.
    (4) If your proposed emission control information 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 what the problem is, and what needs to be corrected.
    (c) If we determine your application is complete and shows that the 
engine family meets all the requirements of this part and the Act, 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 emission-
related maintenance instructions in a way that could affect emissions. 
In your request, describe the proposed changes to the maintenance 
instructions.
    (a) If you are decreasing the specified level of maintenance, you 
may distribute the new maintenance instructions to your customers 30 
days after we receive your request, unless we disapprove your request. 
We may approve a shorter time or waive this requirement.
    (b) If your requested change would not decrease the specified level 
of

[[Page 68391]]

maintenance, you may distribute the new maintenance instructions 
anytime after you send your request.
    (c) If you are correcting or clarifying your maintenance 
instructions or if you are changing instructions for maintenance 
unrelated to emission controls, the requirements of this section do not 
apply.


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

    (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.
    (3) Modify an FEL for an engine family, as described in paragraph 
(f) of this section.
    (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 the time at which you send us your request (for example, the day 
you mail your request). If we determine that the affected vehicles do 
not meet applicable requirements, we will require you to cease 
production of the vehicles and to recall and correct the vehicles at no 
expense to the owner. If you choose to produce vehicles under this 
paragraph, we will consider that to be consent to recall all vehicles 
that we determine do not meet applicable standards and other 
requirements and to remedy the nonconformity at no expense to the 
owner.
    (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 to do this. 
You may give us an engineering evaluation instead of test data if we 
agree that you can address our questions without test data.
    (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).
    (f) You may ask to change your FEL in the following cases:
    (1) You may ask to raise your FEL for your engine family after the 
start of production. You must use the higher FEL for the entire family 
to calculate your average emission level under subpart H of this part. 
In your request, you must demonstrate that you will still be able to 
comply with the applicable average emission standards as specified in 
subparts B and H of this part.
    (2) You may ask to lower the FEL for your engine family after the 
start of production only when you have test data from production 
vehicles indicating that your vehicles comply with the lower FEL. You 
may create a separate subfamily with the lower FEL. Otherwise, you must 
use the higher FEL for the family to calculate your average emission 
level under subpart H of this part.
    (3) If you change the FEL during production, you must include the 
new FEL on the emission control information label for all vehicles 
produced after the change.


Sec.  1051.230  How do I select engine families?

    (a) Divide your product line into families of vehicles that you 
expect to 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 the same 
in all of the following aspects:
    (1) The combustion cycle.
    (2) The cooling system (water-cooled vs. air-cooled).
    (3) Configuration of the fuel system (for example, port fuel 
injection vs. carburetion).
    (4) Method of air aspiration.
    (5) The number, location, volume, and composition of catalytic 
converters.
    (6) Type of fuel.
    (7) The number, arrangement, and approximate bore diameter of 
cylinders.
    (8) Evaporative emission controls.
    (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 this under normal circumstances, 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) Location or size of intake and exhaust valves or ports.
    (3) Configuration of the combustion chamber.
    (4) Cylinder stroke or actual bore diameter.
    (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 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 appropriately define engine families by the 
method in this section, we will define them based on features related 
to emission characteristics.
    (f) You may ask us to create separate families for exhaust 
emissions and evaporative emissions. If we do this, list both families 
on the emission control information label.


Sec.  1051.235  What emission testing must I perform for my application 
for a certificate of conformity?

    This section describes the emission testing you must perform to 
show compliance with the emission standards in subpart B of this part 
during certification.
    (a) Test your emission-data vehicles using the procedures and 
equipment specified in subpart F of this part. Where specifically 
required or allowed, test the engine instead of the vehicle. For 
evaporative emissions, test the fuel system components separate from 
the vehicle.
    (b) Select from each engine family a test vehicle or engine, and a 
fuel system for each fuel type with a configuration that 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 use previously generated emission data in the following 
cases:
    (1) You may submit emission data for equivalent engine families 
from previous years instead of doing new tests, but only if the data 
show that the test vehicle or engine would meet all the requirements 
for the latest vehicle or engine models. We may require you to

[[Page 68392]]

do new emission testing if we believe the latest vehicle or engine 
models could be substantially different from the previously tested 
vehicle or engine.
    (2) You may submit emission data for equivalent engine families 
performed to show compliance with other standards (such as California 
standards) instead of doing new tests, but only if the data show that 
the test vehicle or engine would meet all of this part's requirements.
    (3) You may submit evaporative emission data measured by a fuel 
system supplier. We may require you to verify that the testing was 
conducted in accordance with the applicable regulations.
    (d) We may choose to measure emissions from any of your test 
vehicles or engines (or other vehicles or engines in the engine 
family).
    (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 normal production 
tolerances for anything not covered by Sec.  1051.115(c) and (d) of 
this section.
    (e) If you are a small-volume manufacturer, you may certify by 
design on the basis of preexisting exhaust emission data for similar 
technologies and other relevant information, and in accordance with 
good engineering judgment. In those cases, you are not required to test 
your vehicles.
    This is called ``design-certification'' or ``certifying by 
design.'' To certify by design, you must show that the technology used 
on your engines is sufficiently similar to the previously tested 
technology that a person reasonably familiar with emission-control 
technology would believe that your engines will comply with the 
emission standards.
    (f) For fuel tanks that are certified based on permeability 
treatments for plastic fuel tanks, you do not need to test each engine 
family. However, you must use good engineering judgment to determine 
permeation rates for the tanks. This requires that more than one fuel 
tank be tested for each set of treatment conditions. You may not use 
test data from a given tank for any other tanks that have thinner 
walls. You may, however, use test data from a given tank for other 
tanks that have thicker walls. This applies to both low-hour (i.e., 
baseline testing) and durability testing. Note that Sec.  1051.245 
allows you to use design-based certification instead of generating new 
emission data.


Sec.  1051.240  How do I demonstrate that my engine family complies 
with exhaust emission standards?

    (a) For certification, your engine family is considered to be in 
compliance with the numerical exhaust 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 
significant figures) 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 that we establish. Apply the deterioration 
factors as follows:
    (1) For vehicles that use aftertreatment technology, such as 
catalytic converters, the exhaust 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 
exhaust 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 emission standard. 
Compare the rounded emission levels to the emission standard for each 
test vehicle.


Sec.  1051.245  How do I demonstrate that my engine family complies 
with evaporative emission standards?

    (a) For certification, your engine family is considered in 
compliance with the evaporative emission standards in subpart B of this 
part if you do either of the following:
    (1) You have test results showing permeation emission levels from 
the fuel tanks and fuel lines in the family are at or below the 
standards in Sec.  1051.110 throughout the useful life.
    (2) You comply with the design specifications in paragraph (e) of 
this section.
    (b) Your engine family does not comply if any fuel tank or fuel 
line representing that family has test results showing emission levels 
above the standards.
    (c) To compare emission levels with the emission standards, apply 
deterioration factors (to three significant figures) to the measured 
emission levels. The deterioration factor is a number that shows the 
relationship between emissions at the end of useful life and at the 
low-hour test point. For permeation emissions, the deterioration factor 
is the difference between evaporative emissions at the end of useful 
life and evaporative 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.
    (1) Section 1051.515 specifies how to test your fuel tanks 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 that we establish. Apply the 
deterioration factors as follows:
    (i) Calculate the deterioration factor from emission tests 
performed before and after the durability tests described in Sec.  
1051.515(c) and using good engineering judgment. The durability tests 
described in Sec.  1051.515(c) represent the minimum requirements for 
determining a deterioration factor. You may not use a deterioration 
factor that is less than the difference between evaporative emissions 
before and after

[[Page 68393]]

the durability tests described in Sec.  1051.515(c).
    (ii) Do not apply the deterioration factor to test results for 
tanks that have already undergone these durability tests.
    (2) Determine the deterioration factor for fuel lines using good 
engineering judgment.
    (d) After adjusting the emission levels for deterioration, round 
them to the same number of decimal places as the emission standard. 
Compare the rounded emission levels to the emission standard for each 
test vehicle.
    (e) You may demonstrate for certification that your engine family 
complies with the evaporative emission standards by demonstrating that 
you use the following control technologies:
    (1) For certification to the standards specified in Sec.  
1051.110(a) with the control technologies shown in the following table:

   Table 1 of Sec.   1051.245.--Design-certification Technologies for
                       Controlling Tank Permeation
------------------------------------------------------------------------
   If the tank permeability control     Then you may design-certify with
          technology is . . .            a tank emission level of . . .
------------------------------------------------------------------------
(i) A metal fuel tank with no non-      1.5 g/m 2/day.
 metal gaskets or with gaskets made
 from a low-permeability material 1.
(ii) A metal fuel tank with non-metal   1.5 g/m 2/day.
 gaskets with an exposed surface area
 of 1000 mm 2 or less.
------------------------------------------------------------------------
\1\ Permeability of 10 g/m 2/day or less according to ASTM D 814-95
  (incorporated by reference in Sec.   1051.810).

    (2) For certification to the standards specified in Sec.  
1051.110(b) with the control technologies shown in the following table:

   Table 2 of Sec.   1051.245.--Design-certification Technologies for
                    Controlling Fuel-line Permeation
------------------------------------------------------------------------
                                        Then you may design-certify with
 If the fuel-line permeability control   a fuel line permeation emission
     technology is . . . jennifer                level of . . .
------------------------------------------------------------------------
(i) Hose meeting Category 1 permeation  15 g/m2/day.
 specifications in SAE J2260
 (incorporated by reference in Sec.
 1051.810).
---------------------------------------
(ii) Hose meeting the R11-A or R12      15 g/m2/day.
 permeation specifications in SAE J30
 (incorporated by reference in Sec.
 1051.810).
------------------------------------------------------------------------

    (3) We may establish additional design certification options where 
we find that new test data demonstrate that the use of other technology 
designs will ensure compliance with the applicable emission standards.


Sec.  1051.250  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.
    (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 or other 
applicable test procedures regulations, 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 routine data from 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.  1051.255  When may EPA deny, revoke, or void my certificate of 
conformity?

    (a) We may deny your application for certification if your engine 
family fails to comply with emission standards or other requirements of 
the regulation or the Act. Our decision may be based on any information 
available to us showing you do not meet emission standards or other 
requirements, including any testing that we conduct under paragraph (g) 
of this section. 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 intentionally 
submitted false or incomplete information.
    (e) We may void your certificate for any family certified to an FEL 
above the allowable average if you fail to show in your end-of-year 
report that your average emission levels are below the

[[Page 68394]]

applicable standards in subpart B of this part, or that you have 
sufficient credits to offset a credit deficit for the model year.
    (f) 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.
    (g) We may conduct confirmatory testing of your vehicles as part of 
certification. We may deny your application for certification or revoke 
your certificate if your vehicles fail to comply with emission 
standards or other requirements during confirmatory testing.

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 the requirements of this part or you do not fulfill your 
obligations under this subpart (see Sec. Sec.  1051.325 and 1051.340).
    (c) Other requirements apply to vehicles and engines that you 
produce. Other regulatory provisions authorize us to suspend, revoke, 
or void your certificate of conformity, or order recalls for engines 
families without regard to whether they have passed these production-
line testing requirements. The requirements of this subpart do not 
affect our ability to do selective enforcement audits, as described in 
part 1068 of this chapter. Individual vehicles and engines in families 
that pass these production-line testing requirements must also conform 
to all applicable regulations of this part and 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 subpart'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 pass the production-line testing requirements 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 any number of model years. 
In determining whether to approve your request, we may consider the 
number of vehicles or engines that have failed the emission tests.
    (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.
    (g) The requirements of this subpart do not apply to engine 
families certified under the provisions of Sec.  1051.630.


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 only 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.
    (3) We may adjust the air-fuel ratio within the adjustable range 
specified in Sec.  1051.115(d).
    (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 the emission-data vehicle used 
for certifying the engine family (see 40 CFR part 1065, subpart E, or 
the applicable regulations governing how you should prepare your test 
vehicle or engine).
    (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, you may ask 
us to substitute results of the new tests for the original ones. You 
must ask us within ten days of testing. We will generally 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 test period. 
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). If your 
annual production period is less than 12 months long, define your test 
periods by dividing your annual production period into approximately 
equal segments of 70 to 125 calendar days.
    (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.

[[Page 68395]]

    (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 (and other regulated pollutants). The 
required sample size is the greater of these calculated values. Use the 
following equation:
[GRAPHIC] [TIFF OMITTED] TR08NO02.008


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 (or family emission limit, if applicable).
[sigma] = 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, [sigma], for the test sample 
using the following formula:
[GRAPHIC] [TIFF OMITTED] TR08NO02.009


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-
percent confidence coefficient.
    (f) Distribute the remaining vehicle or engine tests evenly 
throughout the rest of the year. 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 CO (or 
other regulated pollutants) 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. For example, if N = 3.1 after the third test, 
the sample-size calculation does not allow you to stop testing.
    (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.
    (5) You choose to declare that the engine family fails the 
requirements of this subpart. (h) If the sample-size calculation allows 
you to stop testing for a pollutant, you must continue measuring 
emission levels of that pollutant for any additional tests required 
under this section. However, you need not continue making the 
calculations specified in this section for that pollutant. This 
paragraph does not affect the requirements in section Sec.  1051.320.
    (i) 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 fails the 
production-line testing requirements?

    This section describes the pass-fail criteria for the production-
line testing requirements. We apply this criteria on an engine family 
basis. See Sec.  1051.320 for the requirements that apply to individual 
vehicles or engines that fail a production-line test. (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)).
    (b) Construct the following CumSum Equation for each engine family 
for HC, NOX (or HC+NOX), and CO emissions (and 
other regulated pollutants):
[GRAPHIC] [TIFF OMITTED] TR08NO02.010


Where:
Ci = The current CumSum statistic.
Ci-1 = The previous CumSum statistic. For the first test, 
the CumSum statistic is 0 (i.e. C1 = 0).
Xi = The current emission test result for an individual 
vehicle or engine.
STD = Emission standard.

    (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.

[[Page 68396]]

    (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 [sigma].
    (g) If the CumSum statistic exceeds the Action Limit in two 
consecutive tests, the engine family fails the production-line testing 
requirements of this subpart. Tell us within ten working days if this 
happens. You may request to amend the application for certification to 
raise the FEL of the engine family at this point if you meet the 
requirements of Sec.  1051.225(f).
    (h) If you amend the application for certification for an engine 
family under 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 request to amend the application for certification to 
raise the FEL of the entire engine family at this point (see Sec.  
1051.225).


Sec.  1051.325  What happens if an engine family fails the production-
line requirements?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails 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 fails. 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 (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.
    (d) Section 1051.335 specifies steps you must take to remedy the 
cause of the production-line failure. All the vehicles you have 
produced since the end of the last test period are presumed 
noncompliant and should be addressed in your proposed remedy. We may 
require you to apply the remedy to engines produced earlier if we 
determine that the cause of the failure is likely to have affected the 
earlier engines.
    (e) You may request to amend the application for certification to 
raise the FEL of the engine family before or after we suspend your 
certificate if you meet the requirements of Sec.  1051.225(f).


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.  1051.315 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 for the engine family, 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 comply with the requirements of 
this subpart 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?

    Do all the following things unless we ask you to send us less 
information:
    (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.

[[Page 68397]]

    (9) Report on each failed vehicle or engine as described in Sec.  
1051.320.
    (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 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. See Sec.  1051.815 for information on how we treat 
information you consider confidential.


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.
    (7) Any information specified in Sec.  1051.345 that you do not 
include in your written reports.
    (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 rated brake power, 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 [Reserved]

Subpart F--Test Procedures


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

    This section describes test procedures that you use to show 
compliance with the requirements of this part. See Sec.  1051.235 to 
determine when testing is required for certification. See subpart D of 
this part for the production-line testing requirements.
    (a) Snowmobiles. 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.  1051.103. 
Measure HC, NOX (as applicable), CO, and CO2 
emissions using the dilute sampling procedures in part 1065 of this 
chapter. For steady-state testing, you may use raw-gas sampling methods 
(such as those described in 40 CFR part 91), provided they have been 
shown to produce measurements equivalent to the dilute sampling methods 
specified in part 1065 of this chapter. Use the duty cycle in Sec.  
1051.505.
    (b) Motorcycles and ATVs. 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.  
1051.105 or Sec.  1051.107. Measure HC, NOX, CO, and 
CO2. If we allow you to certify ATVs based on engine 
testing, use the equipment, procedures, and duty cycle described or 
referenced in that section that allows engine testing. For motorcycles 
with engine displacement at or below 169 cc and all ATVs, use the 
driving schedule in paragraph (c) of Appendix I to 40 CFR part 86. For 
all other motorcycles use the driving schedule in paragraph (b) of 
Appendix I to part 86. With respect to vehicle-speed governors, test 
motorcycles and ATVs in their ungoverned configuration, unless we 
approve in advance testing in a governed configuration. We will only 
approve testing in a governed configuration if you can show that the 
governor is permanently installed on all production vehicles and is 
unlikely to be removed in-use. With respect to engine-speed governors, 
test motorcycles and ATVs in their governed configuration.
    (c) Permeation testing. (1) Use the equipment and procedures 
specified in Sec.  1051.515 to measure fuel tank permeation emissions.
    (2) Prior to permeation testing of fuel hose, the hose must be 
preconditioned by filling the hose with the fuel specified in (d)(3) of 
this section, sealing the openings, and soaking the hose for 4 weeks at 
23 [deg]C+/-5[deg] C. To measure fuel-line permeation emissions, use 
the equipment and procedures specified in SAE J30 (incorporated by 
reference in Sec.  1051.810). The measurements must be performed at 23 
[deg] C using the fuel specified in paragraph (d)(3) of this section.
    (d) Fuels. Use the fuels meeting the following specifications:
    (1) Exhaust. 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.
    (2) Fuel Tank Permeation. (i) For the preconditioning soak 
described in Sec.  1051.515(a)(1) and fuel slosh durability test 
described in Sec.  1051.515(c)(4), use the fuel specified in Table 1 of 
Sec.  1065.210 of this chapter blended with 10 percent ethanol by 
volume. As an alternative, you may use Fuel CE10, which is Fuel C as 
specified in ASTM D 471-98 (incorporated by reference in Sec.  
1051.810) blended with 10 percent ethanol by volume.
    (ii) For the permeation measurement test in Sec.  1051.515(b), use 
the fuel specified in Table 1 of Sec.  1065.210 of this chapter. As an 
alternative, you may use the fuel specified in paragraph (d)(2)(i) of 
this section.
    (3) Fuel Hose Permeation. Use the fuel specified in Table 1 of 
Sec.  1065.210 of this chapter blended with 10 percent ethanol by 
volume for permeation testing of fuel lines and tanks. As an 
alternative, you may use Fuel CE10, which is Fuel C as specified in 
ASTM D 471-98

[[Page 68398]]

(incorporated by reference in Sec.  1051.810) blended with 10 percent 
ethanol by volume.
    (e) Special procedures for engine testing. (1) You may use special 
or alternate procedures, as described in Sec.  1065.10 of this chapter.
    (2) 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.
    (f) Special procedures for vehicle testing. (1) You may use special 
or alternate procedures, as described in paragraph (f)(3) of this 
section.
    (2) We may reject data you generate using alternate procedures if 
later testing with the otherwise specified procedures shows 
contradictory emission data.
    (3)(i) The test procedures specified for vehicle testing are 
intended to produce emission measurements equivalent to those that 
would result from measuring emissions during in-use operation using the 
same vehicle configuration. If good engineering judgment indicates that 
use of the procedures in this part for a vehicle would result in 
measurements that are not representative of in-use operation of that 
vehicle, 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 or other requirements, we will specify changes to 
the procedures. In your notification to us, you should recommend 
specific changes you think are necessary.
    (ii) 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.
    (iii) 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.
    (iv) You may ask to use special test procedures if your vehicle 
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.


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 the following Table:

                         Table 1 of Sec.   1051.505.--5-Mode Duty Cycle for Snowmobiles
----------------------------------------------------------------------------------------------------------------
                                                                      Torque
                                                   Engine speed     (percent of
                                                    (percent of    maximum test    Minimum time      Weighting
                                                   maximum test      torque at        in mode         factors
                                                      speed)       maximum test      (minutes)
                                                                      speed)
----------------------------------------------------------------------------------------------------------------
Mode number:
    1...........................................             100             100             3.0            0.12
-------------------------------------------------
    2...........................................              85              51             3.0            0.27
-------------------------------------------------
    3...........................................              75              33             3.0            0.25
-------------------------------------------------
    4...........................................              65              19             3.0            0.31
-------------------------------------------------
    5...........................................            Idle               0             3.0            0.05
----------------------------------------------------------------------------------------------------------------

    (b) During idle mode, operate the engine with the following 
parameters:
    (1) Hold the speed within your specifications.
    (2) Keep the throttle at the idle-stop position.
    (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 wide-
open throttle.
    (d) Ambient temperatures during testing must be between 20 [deg]C 
and 30 [deg]C (68 [deg]F and 86 [deg]F), or other representative test 
temperatures, as specified in paragraph (g) of this section.
    (e) See part 1065 of this chapter for detailed specifications of 
tolerances and calculations.
    (f) You may test snowmobiles at ambient temperatures below 20 
[deg]C or using intake air temperatures below 20 [deg]C if you show 
that such testing complies with Sec.  1065.10(c)(1) of this chapter. 
You must get our approval before you begin the emission testing. For 
example, the following approach would be appropriate to show that such 
testing complies with Sec.  1065.10(c)(1) of this chapter:
    (1) Using good engineering judgment, instrument a representative 
snowmobile built with a representative engine from the family being 
tested with an appropriate temperature measuring device located in the 
intake air plenum where fuel spitback is not likely to occur.
    (2) Choose a time and location with the following weather 
conditions: windspeed less than 10 knots, no falling precipitation, air 
temperature between -20 [deg]C and 0 [deg]C (-4 [deg]F and 32 [deg]F).
    (3) Operate the snowmobile until its engine reaches a steady 
operating temperature.
    (4) Operate the snowmobile on a level surface free of other vehicle 
traffic. Operate the snowmobile at each specified engine speed 
corresponding to each mode in the emissions test specific to the engine 
being tested. When readings are stable, record the temperature in the 
intake air plenum

[[Page 68399]]

and the ambient temperature. Calculate the temperature difference 
between the air in the plenum and the ambient air for each mode.
    (5) Calculate the nominal intake air test temperature for each test 
mode as -10 [deg]C (14 [deg]F) plus the temperature difference for the 
corresponding mode determined in (g)(4) of this section.
    (6) Before the emissions test, select the appropriate carburetor 
jetting for -10 [deg]C (14 [deg]F) conditions according to the jet 
chart. For each mode, maintain the inlet air temperature within 5 
[deg]C of the corresponding modal temperature calculated in (g)(5) of 
this section.
    (7) Adjust other operating parameters to be consistent with 
operation at -10 [deg]C (14 [deg]F). For example, this may require that 
you modify the engine cooling system used in the laboratory to make its 
performance representative of cold-temperature operation.


Sec.  1051.510  What special provisions apply for testing ATV engines? 
[Reserved]


Sec.  1051.515  How do I test my fuel tank for permeation emissions?

    Measure permeation emissions by weighing a sealed fuel tank before 
and after a temperature-controlled soak.
    (a) Preconditioning. To precondition your fuel tank, follow these 
five steps:
    (1) Fill the tank with the fuel specified in Sec.  
1051.501(d)(2)(i), seal it, and allow it to soak at 28 +/-5 [deg]C for 
20 weeks. Alternatively, the tank may be soaked for a shorter period of 
time at a higher temperature if you can show that the hydrocarbon 
permeation rate has stabilized.
    (2) Determine the fuel tank's internal surface area in square-
meters accurate to at least three significant figures. You may use less 
accurate estimates of the surface area if you make sure not to 
overestimate the surface area.
    (3) Fill the fuel tank with the test fuel specified in Sec.  
1051.501(d)(2)(ii) to its nominal capacity. If you fill the tank inside 
the temperature-controlled room or enclosure, do not spill any fuel.
    (4) Allow the tank and its contents to equilibrate to 28+/-2 
[deg]C.
    (5) Seal the fuel tank using nonpermeable fittings, such as metal 
or TeflonTM.
    (b) Test run. To run the test, follow these nine steps for a tank 
that was preconditioned as specified in paragraph (a) of this section:
    (1) Weigh the sealed fuel tank and record the weight to the nearest 
0.1 grams. (You may use less precise weights as long as the difference 
in mass from the start of the test to the end of the test has at least 
three significant figures.)
    (2) Carefully place the tank within a ventilated temperature-
controlled room or enclosure. Do not spill any fuel.
    (3) Close the room or enclosure and record the time.
    (4) Ensure that the measured temperature in the room or enclosure 
is 28+/-2 [deg]C.
    (5) Leave the tank in the room or enclosure for 2 to 4 weeks, 
consistent with good engineering judgment (based on the permeation 
rate). Do not stop soaking before 4 weeks unless you know that you can 
measure the weight loss during the test to at least three significant 
figures earlier.
    (6) Hold the temperature of the room or enclosure to 28+/-2 [deg]C; 
measure and record the temperature at least daily.
    (7) At the end of the soak period, weigh the sealed fuel tank and 
record the weight to the nearest 0.1 grams. (You may use less precise 
weights as long as the difference in mass from the start of the test to 
the end of the test has at least three significant figures.)
    (8) Subtract the weight of the tank at the end of the test from the 
weight of the tank at the beginning of the test; divide the difference 
by the internal surface area of the fuel tank. Divide this g/m \2\ 
value by the number of test days (using at least three significant 
figures) to calculate the g/m \2\/day emission rate. Example: If a tank 
with an internal surface area of 1.51 m \2\ weighed 31882.3 grams at 
the beginning of the test and weighed 31760.2 grams after soaking for 
25.03 days, then the g/m \2\/day emission rate would be: (31882.3 g-
31760.2 g)/1.51 m \2\/25.03 days = 3.23 g/m \2\/day.
    (9) Round your result to the same number of decimal places as the 
emission standard.
    (c) Durability testing. You normally need to perform a separate 
durability demonstration for each substantially different combination 
of treatment approaches and tank materials. Perform these 
demonstrations before an emission test by taking the following steps, 
unless you can use good engineering judgment to apply the results of 
previous durability testing with a different fuel system. You can 
determine a deterioration factor by measuring emissions on a tank after 
these durability tests if you previously tested the same tank before 
the durability tests (but after the preconditioning step described in 
paragraph (a) of this section). For the purposes of deterioration 
factor determination, the permeation tests before and after the 
durability testing must be performed on the fuel specified in Sec.  
1051.501 (d)(2)(i). You may ask to exclude any of the following 
durability tests if you can clearly demonstrate that it does not affect 
the emissions from your fuel tank.
    (1) Perform a pressure test by sealing the tank and cycling it 
between +2.0 psig and -0.5 psig and back to +2.0 psig for 10,000 cycles 
at a rate 60 seconds per cycle.
    (2) Perform a sunlight-exposure test by exposing the tank to an 
ultraviolet light of at least 0.40 W-hr/m \2\/min on the tank surface 
for 15 hours per day for 4 weeks. Alternatively, the fuel tank may be 
exposed to direct natural sunlight for an equivalent period of time, as 
long as you ensure that the tank is exposed to at least 450 daylight 
hours.
    (3) Perform a slosh test by filling the tank to 40 percent of its 
capacity with the fuel specified in Sec.  1051.501(d)(2)(i) and rocking 
it at a rate of 15 cycles per minute until you reach one million total 
cycles.
    Use an angle deviation of +15[deg] to -15[deg] from level. This 
test must be performed at a temperature of 28[deg]C +/-5[deg] C.
    (4) Following the durability testing, the fuel tank must be soaked 
(as described in paragraph (a) of this section) to ensure that the 
permeation rate is stable. The period of slosh testing and the period 
of ultraviolet testing (if performed with fuel in the tank consistent 
with paragraph (a)(1) of this section) may be considered to be part of 
this soak, provided that the soak begins immediately after the slosh 
testing. To determine the final permeation rate, drain and refill the 
tank with fresh fuel, and repeat the test run (as described in 
paragraph (b) of this section) immediately after this soak period.
    (d) Flow chart. The following figure presents a flow chart for the 
permeation testing described in this section, showing full test 
procedure with durability testing, as well as the simplified test 
procedure with an applied deterioration factor:

BILLING CODE 6560-50-P

[[Page 68400]]

[GRAPHIC] [TIFF OMITTED] TR08NO02.016

BILLING CODE 6560-50-C


Sec.  1051.520  How do I perform exhaust durability testing?

    This section applies for durability testing to determine 
deterioration factors for exhaust emissions. Small-volume manufacturers 
may omit durability testing if they use 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 vehicle 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 perform critical emission-related maintenance during 
durability testing, consistent with Sec.  1051.125(a). You may not 
perform any other emission-related maintenance during durability 
testing.
    (d) Use a linear least-squares fit of your test data for each 
pollutant to calculate your deterioration factor.
    (e) You may ask us to allow you to use other testing methods to 
determine deterioration factors, consistent with good engineering 
judgment.

[[Page 68401]]

Subpart G--Compliance Provisions


Sec.  1051.601  What compliance provisions apply to vehicles and 
engines subject to this part?

    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 and the 
requirements of the Act. The compliance provisions in this subpart 
apply only to the vehicles and engines 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 program?

    (a) You may ask for an exemption under this section if you are the 
manufacturer of an engine certified under the motor-vehicle program or 
the Large Spark-ignition program. See Sec.  1051.610 if you are not the 
engine manufacturer.
    (b)(1) 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.
    (2) If the 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.  1068.101 of this chapter.
    (3) 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.
    (c) If you meet all the following criteria regarding your engine, 
the vehicle using the engine is exempt under this section:
    (1) The vehicle is produced using an engine or incomplete vehicle 
covered by a valid certificate of conformity under 40 CFR part 86 or 
part 1048.
    (2) No changes are made to the certified engine or vehicle that we 
could reasonably expect to increase any of its regulated emissions. For 
example, if any of the following changes are made to the engine, it 
does not qualify for this exemption:
    (i) Any fuel system or evaporative system parameters are changed 
from the certified configuration (this does not apply to refueling 
emission controls).
    (ii) Any other emission-related components are changed.
    (iii) The engine cooling system is modified or assembled so that 
temperatures or heat rejection rates are outside the original engine's 
specified ranges.
    (3) The engine must have the emission control information label we 
require under 40 CFR part 86 or part 1048.
    (4) You must demonstrate that fewer than 50 percent of the engine 
model's total sales, from all companies, are used in recreational 
vehicles.
    (d) If you manufacture 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 control information 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's emission control information 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 installation (month and year).
    (3) Make sure the original and supplemental labels are readily 
visible after the engine is installed in the vehicle or, if the vehicle 
obscures the engine's emission control information label, 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 we request it, you must send us emission test data on the 
applicable recreational duty cycle(s). You may include the data in your 
application for certification under 40 CFR part 86 or part 1048, or in 
your letter requesting the exemption. We will generally not ask you for 
these data under normal circumstances, especially when they are more 
readily available from another source.


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 without certifying it 
under this part by using a certified motor vehicle engine, or Large SI 
engine. This section does not apply if you manufacture the engine 
yourself; see Sec.  1051.605. In order to produce recreational vehicles 
under this section, you must meet all of the following criteria:
    (1) The engine or vehicle is certified to 40 CFR part 86 or part 
1048.
    (2) The engine is not adjusted outside the certifying 
manufacturer's specifications (see Sec.  1051.605(c)(2)).
    (3) The engine or vehicle is not modified in any way that may 
affect its emission control. This does not apply to refueling emission 
controls.
    (4) The vehicle is labeled consistent with paragraph (c) of this 
section.
    (b)(1) 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.  1051.605.
    (2) If the vehicles do not meet the criteria listed in Sec.  
1051.605(c) and 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.  1068.101 of this chapter.
    (3) 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.
    (c)(1) Make sure the original emission control information label is 
intact after assembly in the vehicle.
    (2) Add a permanent supplemental label to the vehicle in a position 
where it will be clearly visible. In this emission control information 
label, do the following:
    (i) Include the heading: ``Recreational Vehicle Emission Control 
Information''.
    (ii) Include your full corporate name and trademark.

[[Page 68402]]

    (iii) State: ``THIS ENGINE WAS ADAPTED FOR RECREATIONAL USE WITHOUT 
AFFECTING ITS EMISSION CONTROLS.''.
    (iv) State the date you finished installation (month and year).
    (3) 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.''.
    (d) If you build recreational vehicles under this section, we may 
require (as a condition of the exemption) that you comply with the 
emission-related warranty and recall responsibilities of this part.
    (e) If you build a recreational vehicle using a motor vehicle 
engine that was certified as part of a vehicle-based engine family, we 
may require you to certify under this part instead of granting you an 
exemption under this part. If we do this, we may allow you to submit an 
abbreviated application for certification to show that you comply with 
the requirements of this part. You may reference the information in the 
original motor vehicle application.


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

    (a) You may certify ATVs with engines that have total displacement 
of less than 100 cc to the following emission exhaust standards instead 
of certifying them to the exhaust emission standards of subpart B of 
this part:
    (1) 25.0 g/kW-hr HC+NOX, with an FEL cap of 40.0 g/kW-hr 
HC+NOX.
    (2) 500 g/kW-hr CO.
    (b) You may certify off-highway motorcycles with engines that have 
total displacement of 70 cc or less to the following emission exhaust 
standards instead of certifying them to the exhaust emission standards 
of subpart B of this part:
    (1) 16.1 g/kW-hr HC+NOX, with an FEL cap of 32.2 g/kW-hr 
HC+NOX.
    (2) 519 g/kW-hr CO.
    (c) You may use the averaging, banking, and trading provisions of 
subpart H of this part to show compliance with this HC+NOX 
standards (an engine family meets emission standards even if its family 
emission limit is higher than the standard, as long as you show that 
the whole averaging set of applicable engine families meet the 
applicable emission standards using emission credits, and the vehicles 
within the family meet the family emission limit). You may not use 
averaging to meet the CO standards of this section.
    (d) Measure emissions by testing the engine on a dynamometer with 
the steady-state duty cycle described in Table 1 of this section.
    (1) 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.
    (2) For the full-load operating mode, operate the engine at wide-
open throttle.
    (3) See part 1065 of this chapter for detailed specifications of 
tolerances and calculations.
    (4) Table 1 follows:

                     Table 1 of Sec.   1051.615.--6-Mode Duty Cycle for Recreational Engines
----------------------------------------------------------------------------------------------------------------
                                                                      Torque
                                                   Engine speed     (percent of    Minimum time
                                                    (percent of    maximum test       in mode        Weighting
                                                   maximum test   torque at test     (minutes)        factors
                                                      speed)          speed)
----------------------------------------------------------------------------------------------------------------
Mode number:
    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
----------------------------------------------------------------------------------------------------------------

    (e) All other requirements and prohibitions of this part apply to 
these engines and vehicles.


Sec.  1051.620  When may a manufacturer obtain an exemption for 
competition recreational vehicles?

    (a) We may grant you an exemption from the standards and 
requirements of this part for a new recreational vehicle on the grounds 
that it is to be used solely for competition. The provisions of this 
part other than those in this section do not apply to recreational 
vehicles that we exempt for use solely for competition.
    (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), (b)(2), and (c) of this section. Exemptions granted 
under this section are good for only one model year and you must 
request renewal for each subsequent model year. We will not approve 
your renewal request if we determine the vehicles will not be used 
solely for competition.
    (1) Off-highway motorcycles. Motorcycles that are marketed and 
labeled as only for competitive use and that meet at least four of the 
criteria listed in paragraphs (b)(1)(i) through (vi) 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.
    (vi) The absence of a functional seat. (For example, a seat less 
with than 30 square inches of seating surface would

[[Page 68403]]

generally not be considered a functional seat).
    (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 engine may not be displayed for sale 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 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 for small-volume manufacturers?

    (a) If you are a small-volume manufacturer, we may permit you to 
produce up to 600 snowmobiles per year that are certified to less 
stringent emission standards than those in Sec.  1051.103, as long as 
you meet all the conditions and requirements in this section.
    (b) 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.  1051.103, 
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.
    (c) You must give us other relevant information if we ask for it.
    (d) 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.''.
    (e) 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.
    (f) 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.
    (g) 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.
    (h) You may not include snowmobiles you produce under this section 
in any averaging, banking, or trading calculations under Subpart H of 
this part.
    (i) You must meet all the requirements of this part, except as 
noted in this section.


Sec.  1051.630  What special provisions apply to unique snowmobile 
designs for all manufacturers?

    (a) We may permit you to produce up to 600 snowmobiles per year 
that are certified to the FELs listed in this section without new test 
data, as long as you meet all the conditions and requirements in this 
section.
    (b) You may certify these snowmobiles with FELs of 560 g/kW-hr for 
CO and 270 g/kW-hr for HC (using the normal certification procedures).
    (c) The emission levels described in this section are intended to 
represent worst-case emission levels. You may not certify snowmobiles 
under this section if good engineering judgment indicates that they 
have emission rates higher than these levels.
    (d) Include snowmobiles you produce under this section in your 
averaging calculations under Subpart H of this part.
    (e) You must meet all the requirements of this part, unless the 
regulations of this part specify otherwise.


Sec.  1051.635  What provisions apply to new manufacturers that are 
small businesses?

    (a) If you are a small business (as defined by the Small Business 
Administration) that manufactures recreational vehicles, but does not 
otherwise qualify for the small-volume manufacturer provisions of this 
part, you may ask us to designate you to be a small-volume 
manufacturer. You may do this whether you began manufacturing 
recreational vehicles before, during, or after 2002.
    (b) We may set other reasonable conditions that are consistent with 
the intent of this section and the Act. For example, we may place sales 
limits on companies that we designate to be small-volume manufacturers 
under 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 purposes 
of certification as described in this subpart to show compliance with 
the 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). If you cannot 
show in your end-of-year report 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, 
we may void the certificates for all families certified to FELs above 
the allowable average. (b) The following averaging set restrictions 
apply:
    (1) You may not average together engine families that are certified 
to different standards. You may, however, use banked credits that were 
generated relative to different standards, except as prohibited by 
paragraphs (b)(2) and (3) of this section, paragraph (e) of this 
section, or by other provisions in this part. For example, you may not 
average together within a model year off-highway motorcycles that are 
certified to the standards in Sec.  1051.105(a)(1) and Sec.  
1051.105(a)(2); but you may use banked credits generated by off-highway 
motorcycles that are certified to the standards in Sec.  1051.105(a)(1) 
to show compliance with the standards in Sec.  1051.105(a)(2) in a 
later model year, and vice versa.
    (2) There are separate averaging, banking, and trading programs for 
snowmobiles, ATVs, and off-highway motorcycles. You may not average or 
exchange banked or traded credits from engine families of one type of 
vehicle with those from engine families of another type of vehicle.
    (3) You may not average or exchange banked or traded credits with 
other engine families if you use fundamentally different measurement 
procedures for the different engine families (for example, ATVs 
certified to

[[Page 68404]]

chassis-based vs. engine-based standards). This paragraph (b)(3) does 
not restrict you from averaging together engine families that use test 
procedures that we determine provide equivalent emission results.
    (4) You may not average or exchange banked or traded exhaust 
credits with evaporative credits, or vice versa.
    (c) The definitions of Subpart I of this part apply to this 
subpart. The following definitions also apply:
    (1) Average standard means a standard that allows you comply by 
averaging all your vehicles under this part. See subpart B of this part 
to determine which standards are average standards.
    (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.
    (4) Family emission limit (FEL) has the meaning given in it in 
Sec.  1051.801.
    (5) Reserved credits means credits you have generated that we have 
not yet verified in reviewing the end-of-year report.
    (6) Seller means the entity that provides credits during a trade.
    (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 U.S.-directed 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 
U.S.-directed 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 we verify them in reviewing the end-of-year 
report.


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 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 
requirement sof 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) For exhaust emissions:
    (i) Calculate the average emission level as:
    [GRAPHIC] [TIFF OMITTED] TR08NO02.011
    

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.

    (ii) Use U.S.-directed production projections for initial 
certification, and actual U.S.-directed production volumes to determine 
compliance at the end of the model year.
    (2) For vehicles that have standards expressed as g/kW-hr and a 
useful life in km, convert the useful life to kW-hr based on the 
maximum power output observed over the emission test and an assumed 
vehicle speed of 30 km/hr as follows: UL (kW-hr) = UL (km) x Maximum 
Test Power (kW)/30 km/hr. (Note: It is not necessary to include a load 
factor, since credit exchange is not allowed between vehicles certified 
to g/kW-hr standards and vehicles certified to g/km standards.)
    (3) For evaporative permeation standards expressed as g/
m2/day, use the useful life value in years multiplied by 
365.24, and calculate the average emission level as:
[GRAPHIC] [TIFF OMITTED] TR08NO02.012


[[Page 68405]]


Where:
Productioni = The number of vehicles in the engine family 
times the average internal surface area of the vehicles' fuel tanks.

    (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] TR08NO02.013

    (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] TR08NO02.014

Sec.  1051.725  What information must I keep?

    (a) Maintain and keep five types of properly organized and indexed 
records for each engine family:
    (1) Model year and EPA engine family.
    (2) FEL.
    (3) Useful life.
    (4) Projected U.S.-directed production volume for the model year.
    (5) Actual U.S.-directed 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) Keep a copy of all of the information you send us under Sec.  
1051.730.
    (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 each of 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 received traded credits) to offset the 
deficit.
    (2) Detailed calculations of projected emission credits (zero, 
positive, or negative) based on U.S.-directed production projections. 
If you project a credit deficit, state the source of credits needed to 
offset the credit deficit.
    (b) At the end of each model year, send an end-of-year report.
    (1) Your report must include three things:
    (i) Calculate in detail your average emission level and any 
emission credits (positive, or negative) based on actual U.S.-directed 
production volumes.
    (ii) If your average emission level is above the allowable average 
standard, demonstrate that you have the credits needed to offset the 
credit deficit. If you cannot demonstrate that you have the credits at 
the time you submit your end-of-year report, we may void the 
certificates for all families certified to FELs above the allowable 
average.
    (iii) If your average emission level is below the allowable average 
standard, state whether you will reserve the credits for banking.
    (2) Base your U.S.-directed production volumes on the point of 
first retail sale. You may consider distributors to be the point of 
first retail sale if all their engines are sold to ultimate buyers in 
the United States.
    (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 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 error in   the discovery occurs within    restore the credits for your use.
 your end-of-year report that           180 days of receipt.
 increases your credit balance.
--------------------------------------
(ii) You discover an error in your     the discovery occurs within    restore the credits for your use.
 report that increases your credit      180 days of receipt.
 balance.
--------------------------------------
(iii) We or you discover and error in  the discovery occurs more      do not restore the credits for your use.
 your report that increases your        than 180 days after receipt.
 credit balance.
--------------------------------------
(iv) We discover an error in your      at any time after receipt....  reduce your credit balance
 report that reduces 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

[[Page 68406]]

your credit balance to zero within 90 days of when we notify you, we 
may void the certificates for all families certified to FELs above the 
allowable average.
    (c) Within 90 days of any credit trade, you must send the 
Designated Officer a report of the trade that includes three types of 
information:
    (1) The corporate names of the buyer, seller, and any brokers.
    (2) Copies of contracts related to credit trading 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.


Sec.  1051.735  Are there special averaging provisions for snowmobiles?

    For snowmobiles, you may only use credits for the same phase or set 
of standards against which they were generated, except as allowed by 
this section.
    (a) Restrictions. (1) You may not use any Phase 1 or Phase 2 
credits for Phase 3 compliance.
    (2) You may not use Phase 1 HC credits for Phase 2 HC compliance. 
However, because the Phase 1 and Phase 2 CO standards are the same, you 
may use Phase 1 CO credits for compliance with the Phase 2 CO 
standards.
    (b) Special credits for next phase of standards. You may choose to 
generate credits early for banking for purposes of compliance with 
later phases of standards as follows:
    (1) If your corporate average emission level at the end of the 
model year exceeds the applicable (current) phase of standards (without 
the use of traded or previously banked credits), you may choose to 
redesignate some of your snowmobile production to a calculation to 
generate credits for a future phase of standards. To generate credits 
the snowmobiles designated must have an FEL below the emission level of 
that set of standards. This can be done on a pollutant specific basis.
    (2) Do not include the snowmobiles that you redesignate in the 
final compliance calculation of your average emission level for the 
otherwise applicable (current) phase of standards. Your average 
emission level for the remaining (non-redesignated) snowmobiles must 
comply with the otherwise applicable (current) phase of standards.
    (3) Include the snowmobiles that you redesignate in a separate 
calculation of your average emission level for redesignated engines. 
Calculate credits using this average emission level relative to the 
specific pollutant in the future phase of standards. These credits may 
be used for compliance with the future standards.
    (4) For generating early Phase 3 credits, you may generate credits 
for HC+NOX or CO separately as described:
    (i) To determine if you qualify to generate credits in accordance 
with paragraphs (b)(1) through (3) of this section, you must meet the 
credit trigger level. For HC+NOX this value is 62 g/kW-hr 
(which would be the HC+NOX standard that would result from 
inputting the highest allowable CO standard (275 g/kW-hr) into the 
Phase 3 equation). For CO the value is 200 g/kW-hr (which would be the 
CO standard that would result from inputting the highest allowable 
HC+NOX standard (90 g/kW-hr) into the Phase 3 equation).
    (ii) HC+NOX and CO credits for Phase 3 are calculated 
relative to the 62 g/kW-hr and 200 g/kW-hr values, respectively.
    (5) Credits can also be calculated for Phase 3 using both sets of 
standards. Without regard to the trigger level values, if your net 
emission reduction for the redesignated averaging set exceeds the 
requirements of Phase 3 in Sec.  1051.103 (using both HC+NOX 
and CO in the Phase 3 equation in Sec.  1051.103), then your credits 
are the difference between the Phase 3 reduction requirement of that 
section and your calculated value.

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. You may ask us to 
exclude a parameter that is difficult to access if it cannot be 
adjusted to affect emissions without significantly degrading 
performance, or if you otherwise show us that it will not be adjusted 
in use in a way that affect emissions
    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 land-based or amphibious nonroad 
vehicle that meets the criteria listed in paragraph (1) of this 
definition; or, alternatively, the criteria of paragraph (2) of this 
definition but not the criteria of paragraph (3) of this definition.
    (1) Vehicles designed to travel on four low pressure tires, having 
a seat designed to be straddled by the operator and handlebars for 
steering controls, and intended for use by a single operator and no 
other passengers are all-terrain vehicles.
    (2) Other all-terrain vehicles have three or more wheels and one or 
more seats, are designed for operation over rough terrain, and are 
intended primarily for transportation. Golf carts generally do not meet 
these criteria since they are generally not designed for operation over 
rough terrain.
    (3) Vehicles that meet the definition of ``offroad utility 
vehicle'' in this section are not all-terrain vehicles. However, Sec.  
1051.1(a) specifies that some offroad utility vehicles are required to 
meet the same requirements as all-terrain 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. For example, 
an accelerator pump would be considered an auxiliary emission-control 
device.
    Brake power means the usable power output of the engine not 
including power required to operate fuel pumps, oil pumps, or coolant 
pumps.
    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.

[[Page 68407]]

    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 (6405-
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.
    Evaporative means relating to fuel emissions that result from 
permeation of fuel through the fuel system materials and from 
ventilation of the fuel system.
    Family emission limit (FEL) means an emission level declared by the 
manufacturer to serve in place of an emission standard for 
certification under the emission-credit program in subpart H of this 
part. The family emission limit must be expressed to the same number of 
decimal places as the emission standard it replaces.
    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 that import for resale.
    Maximum brake power means the maximum brake power of an engine at 
test conditions.
    Maximum test power means the maximum brake power of an engine at 
maximum test speed.
    Maximum test speed has the meaning we give in Sec.  1065.515 of 
this chapter
    Maximum test torque means the torque output observed at wide-open 
throttle 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 vehicles, model year means the calendar year in which 
the engine is installed in the new nonroad vehicle. This installation 
date is based on the time that final assembly of the vehicle is 
complete (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. This kind of 
vehicle might commonly be thought of as ``brand new.'' In the case of 
this paragraph (1), 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. In 
this case, the engine ceases being a motor vehicle engine and becomes a 
``new nonroad engine''. 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 or exempt under 
1051.620, where that engine is installed in a piece of equipment for 
which these exclusions or exemptions do not apply. The engine is no 
longer new when it is placed into nonroad service. For example, this 
would apply to a competition vehicle that is no longer used solely for 
competition.
    (4) An engine not covered by paragraphs (1) through (3) of this

[[Page 68408]]

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. This generally includes installation of used engines in 
new vehicles.
    (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. This addresses uncertified engines and vehicles that have 
been placed into service in other countries and that someone seeks to 
import into the United States. Importation of this kind of new nonroad 
engine or vehicle is generally prohibited by part 1068 of this chapter.
    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 engines, or to vehicles or 
equipment that include nonroad engines.
    Nonroad engine has the meaning given in Sec.  1068.30 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.)
    Offroad utility vehicle means a nonroad vehicle that has four or 
more wheels, seating for two or more persons, is designed for operation 
over rough terrain, and has either a rear payload 350 pounds or more or 
seating for six or more passengers. Vehicles intended primarily for 
recreational purposes that are not capable of transporting six 
passengers (such as dune buggies) are not offroad utility vehicles. 
(Note: Sec.  1051.1(a) specifies that some offroad utility vehicles are 
required to meet the requirements that apply for all-terrain vehicles.)
    Oxides of nitrogen has the meaning given it in 40 CFR part 1065.
    Phase 1 means relating to Phase 1 standards of Sec. Sec.  1051.103, 
1051.105, or 1051.107, or other Phase 1 standards specified in subpart 
B of this part.
    Phase 2 means relating to Phase 2 standards of Sec.  1051.103, or 
other Phase 2 standards specified in subpart B of this part.
    Phase 3 means relating to Phase 3 standards of Sec.  1051.103, or 
other Phase 3 standards specified in subpart B of this part.
    Physically adjustable range means the entire range over which an 
engine parameter can be adjusted, except as modified by Sec.  
1051.115(c). For parts described in Sec.  1051.115(d), ``physically 
adjustable range'' means the adjustable range defined in that 
paragraph.
    Placed into service means used for its intended purpose.
    Point of first retail sale means the location at which the retail 
sale occurs. This generally means a dealership.
    Recreational means, for purposes of this part, relating to 
snowmobiles, all-terrain vehicles, off-highway motorcycles, and other 
vehicles that 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 E29-02 (incorporated 
by reference in 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 that sold motorcycles 
or ATVs before 2003 and had annual U.S.-directed production of no more 
than 5,000 off-road motorcycles and ATVs (combined number) in 2002 and 
all earlier calendar years. 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 that sold snowmobiles before 
2003 and had annual U.S.-directed production of no more than 300 
snowmobiles in 2002 and all earlier model years. For manufacturers 
owned by a parent company, the limit applies to the production of the 
parent company and all of its subsidiaries.
    (3) A manufacturer that we designate to be a small-volume 
manufacturer under Sec.  1051.635.
    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 gasoline-fueled engine, or any 
other 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.
    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

[[Page 68409]]

Commonwealth of the Northern Mariana Islands, Guam, American Samoa, the 
U.S. Virgin Islands, and the Trust Territory of the Pacific Islands.
    Upcoming model year means for an engine family the model year after 
the one currently in production.
    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 United States.
    Useful life means the period during which a vehicle is required to 
comply with all applicable emission standards, specified as a number of 
kilometers, hours, and/or calendar years. It must be at least as long 
as both of the following:
    (1) The expected average service life before the vehicle is 
remanufactured or retired from service.
    (2) The minimum useful life value.
    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.
    Wide-open throttle means maximum throttle opening. Unless this is 
specified at a given speed, it refers to maximum throttle opening at 
maximum speed. For electronically controlled or other engines with 
multiple possible fueling rates, wide-open throttle also means the 
maximum fueling rate at maximum throttle opening under test conditions.


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

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

[deg]--degrees.
ASTM--American Society for Testing and Materials.
ATV--all-terrain vehicle.
cc--cubic centimeters.
cm--centimeter.
C--Celsius.
CO--carbon monoxide.
CO2--carbon dioxide.
EPA--Environmental Protection Agency.
F--Fahrenheit.
g--grams.
g/gal/day--grams per gallon per test day.
g/m2/day--grams per meter-square per test day.
Hg--mercury.
hr--hours.
km--kilometer.
kW--kilowatt.
LPG--liquefied petroleum gas.
m--meters.
mm--millimeters.
mW--milliwatts.
NMHC--nonmethane hydrocarbons.
NOX--oxides of nitrogen (NO and NOX).
psig--pounds per square inches of gauge pressure.
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 the U.S. EPA, Air and Radiation 
Docket and Information Center, 1301 Constitution Ave., NW., Room B102, 
EPA West Building, Washington, DC 20460 or the 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. Anyone may purchase copies of these materials 
from the American Society for Testing and Materials, 100 Barr Harbor 
Dr., West Conshohocken, PA 19428. Table 1 follows:

               Table 1 of Sec.   1051.810.--ASTM Materials
------------------------------------------------------------------------
                                                               Part 1051
                  Document number and name                     reference
------------------------------------------------------------------------
ASTM D471-98, Standard Test Method for Rubber Property-         1051.501
 Effect of Liquids..........................................
-------------------------------------------------------------
ASTM D814-95 (reapproved 2000), Standard Test Method for        1051.245
 Rubber Property-Vapor Transmission of Volatile Liquids.....
-------------------------------------------------------------
ASTM E29-02, Standard Practice for Using Significant Digits     1051.801
 in Test Data to Determine Conformance with Specifications..
------------------------------------------------------------------------

    (b) SAE material. Table 2 of Sec.  1051.810 lists material from the 
Society of Automotive Engineering 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. Anyone may purchase copies of these materials from the Society of 
Automotive Engineers, 400 Commonwealth Drive, Warrendale, PA 15096. 
Table 2 follows:

               Table 2 of Sec.   1051.810.--SAE Materials
------------------------------------------------------------------------
                                                               Part 1051
                  Document number and name                     reference
------------------------------------------------------------------------
SAE J30, Fuel and Oil Hoses, June 1998......................   1051.245,
                                                                1051.501
-------------------------------------------------------------
SAE J1930, Electrical/Electronic Systems Diagnostic Terms,      1051.135
 Definitions, Abbreviations, and Acronyms, May 1998.........
-------------------------------------------------------------
SAE J2260, Nonmetallic Fuel System Tubing with One or More      1051.245
 Layers, November 1996......................................
------------------------------------------------------------------------

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 hearing?

    See 40 CFR part 1068, subpart G, for information related to 
hearings.

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.
1065.105 Dynamometer and engine equipment specifications.
1065.110 Exhaust gas sampling system; spark-ignition (SI) engines.

[[Page 68410]]

1065.115 Exhaust gas sampling system; compression-ignition engines. 
[Reserved]
1065.120 Raw sampling. [Reserved]
1065.125 Analyzers (overview/general response characteristics).
1065.130 Hydrocarbon analyzers.
1065.135 NOX analyzers.
1065.140 CO and CO2 analyzers.
1065.145 Smoke meters. [Reserved]
1065.150 Flow meters.
1065.155 Temperature and pressure sensors.
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 International calibration standards.
1065.310 CVS calibration. [Reserved]
1065.315 Torque calibration.
Subpart E--Engine Selection, Preparation, and Service Accumulation
1065.401 Selecting a test engine.
1065.405 Preparing and servicing a test engine.
1065.410 Service limits for stabilized test engines.
1065.415 Durability demonstration.
Subpart F--Running an Emission Test
1065.501 Overview of the engine dynamometer test procedures.
1065.510 Engine mapping procedures.
1065.515 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
1065.801 Applicability.
1065.805 Sampling system.
1065.810 Calculations.
Subpart J--Field Testing
1065.901 Applicability.
1065.905 General provisions.
1065.910 Measurement accuracy and precision.
1065.915 Equipment specifications for SI engines.
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
1065.1001 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) Vehicles that we regulate under 40 CFR part 1051 (i.e., 
recreational SI vehicles) that are regulated based on engine testing. 
See 40 CFR part 1051 to determine which vehicles may be certified based 
on engine test data.
    (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 a manufacturer, but it applies 
equally to anyone who does testing for you, and to us when we conduct 
testing to determine if you meet emission standards.
    (d) Paragraph (a) of this section identifies the parts of the CFR 
that define emission standards and other requirements for particular 
types of engines. In this part 1065, we refer to each of these other 
parts generically as the ``standard-setting part.'' For example, 40 CFR 
part 1051 is always the standard-setting part for snowmobiles. Follow 
the standard-setting part if it differs from this part.
    (e) For equipment subject to this part and regulated under 
equipment-based or vehicle-based standards, interpret the term 
``engine'' in this part to include equipment and vehicles(see 40 CFR 
1068.30).


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 generally 
not required for spark-ignition engines. See the standard-setting part 
to determine which provisions in this part may not apply. Before using 
this part's procedures, read 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 measure emissions while the warmed-up engine operates over 
a steady-state schedule, a transient schedule, or both?
    (3) What are the speed and load points of the test cycle(s)?
    (4) Which exhaust constituents do I need to measure?
    (5) Does testing require full-flow dilute sampling? Is raw sampling 
acceptable? Is partial-flow dilute sampling acceptable?
    (6) Do any unique specifications apply for test fuels?
    (7) What maintenance steps may I do before or between tests on an 
emission-data engine?
    (8) Do any unique requirements apply to stabilizing emission levels 
on a new engine?
    (9) Do any unique requirements apply to testing conditions, such as 
ambient temperatures or pressures?
    (10) Are there special emission standards that affect engine 
operation and ambient conditions?
    (11) Are there different emission standards that apply to field 
testing under normal operation?
    (b) The following table shows how this part divides testing 
specifications into subparts:

------------------------------------------------------------------------
                                       Describes these specifications or
           This subpart...                       procedures...
------------------------------------------------------------------------
Subpart A...........................  General provisions for test
                                       procedures.
-------------------------------------
Subpart B...........................  Equipment for testing.
-------------------------------------
Subpart C...........................  Fuels and analytical gases for
                                       testing.

[[Page 68411]]

 
-------------------------------------
Subpart D...........................  How to calibrate test equipment.
-------------------------------------
Subpart E...........................  How to prepare engines for
                                       testing, including service
                                       accumulation.
-------------------------------------
Subpart F...........................  How to test for emissions.
-------------------------------------
Subpart G...........................  How to calculate emission levels
                                       from measured data.
-------------------------------------
Subpart H...........................  [Reserved].
-------------------------------------
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
                                       apply 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 changing the procedures will 
result in more representative measurements and 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.
    (3) You may ask to use alternate procedures that produce 
measurements equivalent to those from the specified procedures. If you 
send us a written request showing your procedures are equivalent, and 
we agree that they are equivalent, we will allow you to use them. You 
may not use an alternate procedure until we approve them, either by: 
telling you directly that you may use this procedure; or issuing 
guidance to all manufacturers, which 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 under the specified procedures (for example, your 
engine cannot operate on the specified transient cycle). In this case, 
tell us in writing why you cannot satisfactorily test your engines 
using this part's procedures and ask to use a different approach. We 
will approve your special test procedures if we determine 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) The standard-setting part 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) Generally, you must test an engine while operating it on a 
laboratory dynamometer over a prescribed sequence. (Subpart J of this 
part describes 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) or similar units for comparison to emission 
standards. If the applicable emission standards are expressed as g/bhp-
hr, references in this part to kW should generally be interpreted to 
mean horsepower.


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 of 20-30[deg] C (68-86[deg] F), ambient pressures 
of 600-775 mm Hg, and any ambient humidity level.
    (b) Follow the standard-setting part for ambient conditions when 
testing to determine compliance with not-to-exceed or other off-cycle 
emission standards.
    (c) For engine testing in a laboratory, you may heat, cool, and/or 
dehumidify the dilution air before it enters the CVS.
    (d) For engine testing in a laboratory, if the barometric pressure 
observed while generating the maximum-torque curve changes by more than 
25 mm Hg from the value measured when you started mapping, you must 
remap the engine. Also, 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 
(see Sec.  1065.510).

Subpart B--Equipment and Analyzers


Sec.  1065.101  Overview.

    This subpart describes equipment and analyzers for measuring 
emissions. Subpart D of this part describes how to calibrate these 
devices and subpart C of this part defines the accuracy and purity 
specifications of analytical gases.


Sec.  1065.105  Dynamometer and engine equipment specifications.

    (a) The engine dynamometer system must be able to control engine 
torque and speed simultaneously over the applicable test cycles within 
the accuracies specified in Sec.  1065.530. If your dynamometer cannot 
meet the accuracy requirements in Sec.  1065.530, you must get our 
approval before using it. For transient testing, issue command set 
points for engine torque and speed at 5 Hz or greater (10 Hz 
recommended). Record feedback engine torque and speed at least once 
every second during the test. In addition to these general 
requirements, make sure your engine or dynamometer's readout signals 
for speed and torque meet the following accuracies for all testing:
    (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.

[[Page 68412]]

    (2) Engine flywheel torque readout must meet one of the two 
following standards for accuracy:
    (i) Within +/-3 percent of the NIST true value torque (as defined 
in Sec.  1065.315).
    (ii) The following accuracies:

------------------------------------------------------------------------
                                               Engine flywheel torque
   If the full-scale torque value is...       readout 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 (such as 
armature current) to measure torque if you can show that the engine 
flywheel torque during the test cycle conforms to paragraph (b)(2) of 
this section. Your measurements must compensate for increased or 
decreased flywheel torque because of the armature's inertia during 
accelerations and decelerations in the test cycle.
    (b) To verify that the test engine has followed the test cycle 
correctly, collect the dynamometer or engine readout signals for speed 
and torque so you can statistically correlate the engine's actual 
performance with the test cycle (see Sec.  1065.530). Normally, to do 
this, you would convert analog signals from the dynamometer or engine 
into digital values for computer storage, but all conversions must meet 
two criteria:
    (1) Speed values used to evaluate cycles must be accurate to within 
2 percent of the readout value for dynamometer or engine speed.
    (2) Engine flywheel torque values used to evaluate cycles must be 
accurate to within 2 percent of the readout value for dynamometer or 
engine flywheel torque.
    (c) You may combine the tolerances in paragraphs (a) and (b) of 
this section if you use the root mean square (RMS) method and refer 
accuracies of the RMS values to absolute-standard or NIST true values.
    (1) Speed values used to evaluate cycles 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 to evaluate cycles must be 
accurate to within +/-3.6 percent of NIST true values, as determined in 
Sec.  1065.315.


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. (If the standard-setting part requires 
determination of THCE or NMHCE for your engine, then see subpart I of 
this part for additional requirements.) Under the constant-volume 
sampler (CVS) concept, you must measure the total volume of the mixture 
of exhaust and dilution air and collect a continuously proportioned 
volume of sample for analysis. You must control flow rates so that the 
ratio of sample flow to CVS flow remains constant. You then determine 
the mass emissions from the sample concentration and total flow over 
the test period.
    (1) Do not let the CVS or dilution air inlet system artificially 
lower exhaust system backpressure. To verify proper backpressures, 
measure pressure in the raw exhaust immediately upstream of the inlet 
to the CVS. Continuously measure and compare the static pressure of the 
raw exhaust observed during a transient cycle--with and without the CVS 
operating. Static pressure measured with the CVS system operating must 
remain within +/-5 inches of water (1.2 kPa) of the static pressure 
measured when disconnected from the CVS, at identical moments in the 
test cycle. (Note: We will use sampling systems that can maintain the 
static pressure to within +/-1 inch of water (0.25 kPa) if your 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 installing an uncharacterized 
CVS, adding an unknown inlet restriction on the dilution air, or 
otherwise altering the system).
    (2) The system for measuring temperature (sensors and readout) must 
have an accuracy and precision of +/-3.4[deg] F (+/-1.9[deg] C). The 
temperature measuring system for a CVS without a heat exchanger must 
respond within 1.50 seconds to 62.5 percent of a temperature change (as 
measured in hot silicone oil). For a CVS with a heat exchanger, there 
is no specific requirement for response time.
    (3) The system for measuring pressure (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 keep water 
from condensing in the system. You may dehumidify the dilution air 
before it enters the CVS. You also may heat or cool the air if three 
conditions exist:
    (i) The air (or air plus exhaust gas) temperature does not exceed 
250[deg] F (121[deg] C).
    (ii) You calculate the CVS flow rate necessary to prevent water 
condensation based on the lowest temperature in the CVS before 
sampling. (We recommend insulating the CVS system when you use heated 
dilution air.)
    (iii) The dilution ratio is high enough to prevent condensation in 
bag samples as they cool to room temperature.
    (5) Bags for collecting dilution air and exhaust samples must be 
big enough for samples to flow freely.
    (6) The general CVS sample system consists of a dilution air filter 
(optional) and mixing assembly, cyclone particulate separator 
(optional), a sample line for the bag sample or other sample lines a 
dilution tunnel, and associated valves and sensors for pressure and 
temperature. Except for the system to sample hydrocarbons from two-
stroke engines, the temperature of the sample lines must be more than 
3[deg] C above the mixture's maximum dew point and less than 121[deg] 
C. We recommend maintaining them at 113 +/- 8[deg] C. For the 
hydrocarbon sampling system with two-stroke engines, the temperature of 
the sample lines should be maintained at 191 +/- 11[deg] C. A general 
schematic of the SI sampling system is shown in Figure 1065.110-1, 
which follows:

BILLING CODE 6560-50-P

[[Page 68413]]

[GRAPHIC] [TIFF OMITTED] TR08NO02.017

BILLING CODE 6460-50-C
    (b) Steady-state testing. Constant proportional sampling is 
required throughout transient testing, but is not required throughout 
steady-state testing.

[[Page 68414]]

Steady-state testing requires that you draw a proportional sample for 
each test mode, but you may sample in different proportions for 
different test modes, as long as you know the ratio of the sample flow 
to total flow during each test mode. This allowance means that you may 
use simpler flow control systems for steady-state testing than are 
shown in Figure 1065.110-1 of this section.
    (c) Configuration variations. Since various configurations can 
produce equivalent results, you need not conform exactly to the 
drawings in this subpart. You may use other components--such as 
instruments, valves, solenoids, pumps and switches--to provide more 
information and coordinate the components' functions. Based on good 
engineering judgment, you may exclude other components that are not 
needed to maintain accuracy on some systems.
    (d) CFV-CVS component description. The flow characteristics of a 
Critical-Flow Venturi, Constant-Volume Sampler (CFV-CVS) are governed 
by the principles of fluid dynamics associated with critical flow. The 
CFV system is commonly called a constant-volume system (CVS) even 
though the mass flow varies. More properly, they are constant-
proportion sampling systems, because small CFVs in each of the sample 
lines maintains proportional sampling while temperatures vary. This CFV 
maintains the mixture's flow rate at choked flow, which is inversely 
proportional to the square root of the gas temperature, and the system 
computes the actual flow rate continuously. Because pressures and 
temperatures are the same at all venturi inlets, the sample volume is 
proportional to the total volume. The CFV-CVS sample system uses 
critical flow venturis for the bag sample or other sample lines (these 
are shown in the figure as flow control valves) and a critical flow 
venturi for the dilution tunnel. All venturis must be maintained at the 
same temperature.
    (e) EFC-CVS component description. The electronic flow control-CVS 
(EFC-CVS) system for sampling is identical to the CFV system described 
in paragraph (b) of this section, except that it adds electronic flow 
controllers (instead of sampling venturis), a subsonic venturi and an 
electronic flow controller for the CVS (instead of the critical flow 
venturi), metering valves, and separate flow meters (optional) to 
totalize sample flow volumes. The EFC sample system must conform to the 
following requirements:
    (1) The system must meet all the requirements in paragraph (b) of 
this section.
    (2) The ratio of sample flow to CVS flow must not vary by more than 
+/-5 percent from the test's setpoint.
    (3) Sample flow totalizers must meet the accuracy specifications in 
Sec.  1065.150. You may obtain total volumes from the flow controllers, 
with our advance approval, if you can show they meet these accuracies.
    (f) Component description, PDP-CVS. The positive-displacement pump-
CVS (PDP-CVS) system for sampling is identical to the CFV system 
described in paragraph (b) of this section, except for the following 
changes:
    (1) Include a heat exchanger.
    (2) Use positive-displacement pumps for the CVS flow and sampling-
system flow. You do not need sampling venturis or a venturi for the 
dilution tunnel. All pumps must operate at a constant flow rate.
    (3) All pumps must operate at a nominally constant temperature. 
Maintain the gas mixture's temperature--measured at a point just ahead 
of the positive-displacement pump (and after the heat exchanger for the 
main CVS pump)--within +/-10[deg] F (+/-5.6[deg] C) of the average 
operating temperature observed during the test. (You may estimate the 
average operating temperature from the temperatures observed during 
similar tests.) The system for measuring temperature (sensors and 
readout) must have an accuracy and precision of +/-3.4[deg] F (1.9[deg] 
C), and response time consistent with good engineering judgment.
    (g) Mixed systems. You may combine elements of paragraphs (d), (e), 
and (f) consistent with good engineering judgment. For example, you may 
control the CVS flow rate using a CFV, and control sample flow rates 
using electronic flow controllers.


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


Sec.  1065.120  Raw sampling. [Reserved]


Sec.  1065.125  Analyzers (overview/general response characteristics).

    (a) General. The following sections and subparts describe the 
specifications for analyzers and analytical equipment:
    (1) The analyzers for measuring hydrocarbon, NOX, CO, 
and CO2 emission concentrations are specified in Sec.  
1065.130 through Sec.  1065.140.
    (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 at or above 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 at or above 80 percent 
of full scale.
    (c) Precision and noise. Analyzers must meet the following 
characteristics for precision and noise:
    (1) Precision 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 this paragraph 
(c)(1), we define precision as 2.5 times the standard deviation of 10 
repetitive responses to a given calibration or span gas.
    (2) Peak-to-peak response to zero and calibration or span gases 
over any 10-second period must be no more than 2 percent of full-scale 
chart deflection on all ranges used.
    (d) Drift. Analyzers must meet specifications for zero-response and 
span drift.
    (1) The zero-response drift during one hour must be less than 2 
percent of full-scale chart deflection on the lowest range used. Zero-
response is the mean response, including noise, to a zero-gas during a 
30-second interval.
    (2) The span drift during one hour must be less than 2 percent of 
full-scale chart deflection on the lowest range used. Span is the 
difference between the span-response and the zero-response. Span-
response is the mean response, including noise, to a span gas during a 
30-second interval.
    (e) Calibration. See subpart D of this part for specifications to 
calibrate analyzers.


Sec.  1065.130  Hydrocarbon analyzers.

    This section describes the requirements for flame ionization 
detectors (FIDs) used to measure hydrocarbons.
    (a) Fuel the FID with a mixture of hydrogen in helium and calibrate 
it using propane.
    (b) If you use a heated FID (required only for diesels and two-
stroke, spark-ignition engines), keep the temperature 191 +/-11[deg] 
C).

[[Page 68415]]

    (c) Use an overflow sampling system for heated continuous FIDs. (In 
an overflow system excess zero gas or span gas spills out of the probe 
when you are doing zero or span checks.)
    (d) Do not premix the FID fuel and burner air.
    (e) Make sure the FID meets accuracy and precision specifications 
in ISO 8178-1 (incorporated by reference in Sec.  1065.1010).


Sec.  1065.135  NOX analyzers.

    This section describes the requirements for chemiluminescent 
detectors (CLD) used to measure NOX. Good engineering 
practice may require the use of other detectors.
    (a) A CLD must meet the following requirements:
    (1) Make sure your CLD meets the accuracy and precision 
specifications in ISO 8178-1 (incorporated by reference in Sec.  
1065.1010).
    (2) The NO to NO2 converter must have an efficiency of 
at least 90 percent.
    (3) Use an overflow sampling system for continuous CLDs. (In an 
overflow system excess zero gas or span gas spills out of the probe 
when you are doing zero or span checks.)
    (4) You do not need a heated CLD to test spark-ignition engines.
    (b) Using CLDs is generally acceptable even though they measure 
only NO and NO2, since conventional engines do not emit 
significant amounts of other NOX species.


Sec.  1065.140  CO and CO2 analyzers.

    This section describes the requirements for non-dispersive infrared 
absorption detectors (NDIR) to measure CO and CO2.
    (a) The NDIR must meet the applicable accuracy and precision 
specifications of ISO 8178-1 (incorporated by reference in Sec.  
1065.1010).
    (b) The NDIR must meet the applicable quench and interference 
requirements of ISO 8178-1 (incorporated by reference in Sec.  
1065.1010).


Sec.  1065.145  Smoke meters. [Reserved]


Sec.  1065.150  Flow meters.

    (a) Flow meters must have accuracy and precision of +/-2 percent of 
point or better and be traceable to NIST standards.
    (b) You may correct flow measurements for temperature or pressure, 
if your temperature and pressure measurements have accuracy and 
precision of +/-2 percent of point or better (absolute).


Sec.  1065.155  Temperature and pressure sensors.

    (a) Except where we specify otherwise in this part, must meet the 
applicable accuracy and precision specifications of ISO 8178-1 
(incorporated by reference in Sec.  1065.1010).
    (b) Use good engineering judgment to design and operate your 
temperature and pressure measuring systems to minimize delays in 
response time and avoid hysteresis.

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 
directs otherwise. 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) that we do not specify in this subpart, we will allow 
you to test with fuel representing 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) We may allow you to use other test fuels (for example, 
California Phase 2 gasoline) if they do not affect the demonstration of 
compliance.


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


Sec.  1065.210  Test fuel specifications for gasoline.

    Gasoline used as a test fuel must meet the following 
specifications:
    (a) Unless the standard-setting part requires testing with fuel 
appropriate for low temperatures, use gasoline test fuels meeting the 
specifications in the following table:

                   Table 1 of Sec.   1065.210.--General Test-Fuel Specifications for Gasoline
----------------------------------------------------------------------------------------------------------------
                  Item                              Procedure \1\                         Value \1\
----------------------------------------------------------------------------------------------------------------
Distillation Range:
    1. Initial boiling point, [deg]C....  ASTM D 86-01                       23.9-35.0\2\
-----------------------------------------
    2. 10% point, [deg]C................  ASTM D 86-01                       48.9-57.2
-----------------------------------------
    3.50% point, [deg]C.................  ASTM D 86-01                       93.3-110.0
-----------------------------------------
    4. 90% point, [deg]C................  ASTM D 86-01                       148.9-162.8
-----------------------------------------
    5. End point, [deg]C (maximum)......  ASTM D 86-01                       212.8.
-----------------------------------------
Hydrocarbon composition:
    1. Olefins, volume %................  ASTM D 1319-02                     10 maximum
-----------------------------------------
    2. Aromatics, volume %..............  ASTM D 1319-02                     35 maximum
-----------------------------------------
    3. Saturates........................  ASTM D 1319-02                     Remainder
-----------------------------------------
Lead (organic), g/liter.................  ASTM D 3237-97                     0.013 maximum
-----------------------------------------
Phosphorous, g/liter....................  ASTM D 3231-02                     0.0013 maximum

[[Page 68416]]

 
-----------------------------------------
Sulfur, weight %........................  ASTM D 1266-98                     0.008 maximum
-----------------------------------------
Volatility (Reid Vapor Pressure), kPa...  ASTM D 323-99a                     60.0 to 63.4.\2,3\
----------------------------------------------------------------------------------------------------------------
\1\All ASTM standards are incorporated by reference in Sec.   1065.1010.
\2\For testing at altitudes above 1 219 m, the specified volatility range is 52 to 55 kPa (7.5 to 8.0) and the
  specified initial boiling point range is 23.9[deg] to 40.6[deg] C.
\3\For testing unrelated to evaporative emissions, the specified range is 55 to 63 kPa (8.0 to 9.1 psi).

    (b) If the standard-setting part requires testing with fuel 
appropriate for low temperatures, use gasoline test fuels meeting the 
specifications in the following table:

               Table 2 of Sec.   1065.210.--Low-Temperature Test-Fuel Specifications for Gasoline
----------------------------------------------------------------------------------------------------------------
                  Item                              Procedure \1\                         Value \1\
----------------------------------------------------------------------------------------------------------------
Distillation Range:
    1. Initial boiling point, [deg]C....  ASTM D 86-01                       24.4-35.6.
-----------------------------------------
    2. 10% point, [deg]C................  ASTM D 86-01                       36.7-47.8.
-----------------------------------------
    3. 50% point, [deg]C................  ASTM D 86-01                       81.7-101.1.
-----------------------------------------
    4. 90% point, [deg]C................  ASTM D 86-01                       157.8-174.4.
-----------------------------------------
    5. End point, [deg]C (maximum)......  ASTM D 86-01                       211.7.
-----------------------------------------
Hydrocarbon composition:
    1. Olefins, volume %................  ASTM D 1319-02                     17.5 maximum.
-----------------------------------------
    2. Aromatics, volume %..............  ASTM D 1319-02                     30.4 maximum.
-----------------------------------------
    3. Saturates........................  ASTM D 1319-02                     Remainder.
-----------------------------------------
Lead (organic), g/liter.................  ASTM D 3237-97                     0.013 maximum.
-----------------------------------------
Phosphorous, g/liter....................  ASTM D 3231-02                     0.005 maximum.
-----------------------------------------
Sulfur, weight %........................  ASTM D 1266-98                     0.08 maximum.
-----------------------------------------
Volatility (Reid Vapor Pressure), kPa...  ASTM D 323-99a                     11.2--11.8 psi.
----------------------------------------------------------------------------------------------------------------
\1\All ASTM standards are incorporated by reference in Sec.   1065.1010.

    (c) Use gasoline test fuel with octane values that represent 
commercially available fuels for the appropriate application.


Sec.  1065.215  Test fuel specifications for natural gas.

    (a) Natural gas used as a test fuel must meet the specifications in 
the following table:

                      Table 1 of Sec.   1065.215.--Test-Fuel Specifications for Natural Gas
----------------------------------------------------------------------------------------------------------------
                  Item                               Procedure\1\                   Value  (mole percent)
----------------------------------------------------------------------------------------------------------------
1. Methane..............................  ASTM D 1945-96                     87.0 minimum.
2. Ethane...............................  ASTM D 1945-96                     5.5 maximum.
3. Propane..............................  ASTM D 1945-96                     1.2 maximum.
4. Butane...............................  ASTM D 1945-96                     0.35 maximum.
5. Pentane..............................  ASTM D 1945-96                     0.13 maximum.
6. C6 and higher........................  ASTM D 1945-96                     0.1 maximum.
7. Oxygen...............................  ASTM D 1945-96                     1.0 maximum.
8. Inert gases (sum of CO2 and N2)......  ASTM D 1945-96                     5.1 maximum.
----------------------------------------------------------------------------------------------------------------
\1\All ASTM standards are incorporated by reference in Sec.   1065.1010.

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

[[Page 68417]]

Sec.  1065.220  Test fuel specifications for liquefied petroleum gas.

    (a) Liquefied petroleum gas used as a test fuel must meet the 
specifications in the following table:

                Table 1 of Sec.   1065.220.--Test-Fuel Specifications for Liquefied Petroleum Gas
----------------------------------------------------------------------------------------------------------------
               Item                         Procedure \1\                              Value
----------------------------------------------------------------------------------------------------------------
1. Propane........................  ASTM D 2163-91                85.0 vol. percent minimum.
-----------------------------------
2. Vapor pressure at 38[deg] C....  ASTM D 1267-02 or 2598-02     14 bar maximum.
                                     \2\
-----------------------------------
3. Volatility residue (evaporated   ASTM D 1837-02                -38[deg] C maximum.
 temp., 35[deg] C).
-----------------------------------
4. Butanes........................  ASTM D 2163-91                5.0 vol. percent maximum.
-----------------------------------
5. Butenes........................  ASTM D 2163-91                2.0 vol. percent maximum.
-----------------------------------
6. Pentenes and heavier...........  ASTM D 2163-91                0.5 vol. percent maximum.
-----------------------------------
7. Propene........................  ASTM D 2163-91                10.0 vol. percent maximum.
-----------------------------------
8. Residual matter (residue on      ASTM D 2158-02                0.05 ml maximum pass.\3\
 evap. of 100 ml oil stain
 observ.).
-----------------------------------
9. Corrosion, copper strip........  ASTM D 1838-91                No. 1 maximum.
-----------------------------------
10. Sulfur........................  ASTM D 2784-98                80 ppm maximum.
-----------------------------------
11. Moisture content..............  ASTM D 2713-91                pass.
----------------------------------------------------------------------------------------------------------------
\1\ All ASTM standards are incorporated by reference in Sec.   1065.1010.
\2\ If these two test methods yield different results, use the results from ASTM D 1267-02.
\3\ The test fuel must not yield a persistent oil ring when you add 0.3 ml of solvent residue mixture to a
  filter paper in 0.1 ml increments and examine it in daylight after two minutes (see ASTM D 2158-02).

    (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 you use to comply with this part must be 
commercially available and represent 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'' shown in the following 
table:

                                            Table 1 of Sec.   1065.250.--Concentration Limits for Pure Gases
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Maximum contaminant concentrations
             Gas type              -------------------------------------------------------------------------------------------       Oxygen content
                                        Organic carbon        Carbon monoxide         Carbon dioxide       Nitric oxide (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 Zero-    1 ppmC...............  1 ppm................  400 ppm..............  0.1 ppm.............  18-21%.
 Grade Air.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (b) Fuel for flame ionization detectors. Use a hydrogen-helium 
mixture as the fuel. Make sure the mixture contains 40 +/- 2 percent 
hydrogen and no more than 1 ppmC of organic carbon or 400 ppm of 
CO2.
    (c) Calibration and span gases. Apply the following provisions to 
calibration and span gases:
    (1) Use the following gas mixtures, as applicable, for calibrating 
and spanning your analytical instruments:
    (i) Propane in purified synthetic air. You may ask us to allow you 
to use propane in purified nitrogen for high concentrations of propane.
    (ii) CO in purified nitrogen.
    (iii) NO and NO2 in purified nitrogen (the amount of 
NO2 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

[[Page 68418]]

within two percent of true concentration, where true concentration 
refers to NIST gas standards, or other gas standards we have approved. 
Record concentrations of calibration gas as volume percent or volume 
ppm.
    (3) You may use gases for species other than those in paragraph 
(c)(1) of this section (such as methanol in air gases used to determine 
response factors), 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. 
Show this by measuring quarterly with a precision of +/-2 percent (two 
standard deviations) or by using another method we approve. You may 
take 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. Make sure the mixing device produces a 
concentration of blended calibration gases that is accurate to within 
+/- 1.5 percent. To do so, you must know the concentration of primary 
gases used for blending 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 
instrument's span value with the span gas connected directly to it. 
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. Gases to check oxygen interference 
are mixtures of oxygen, nitrogen, and propane. The oxygen concentration 
must be 20-22 percent and the propane concentration must be 50-90 
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, but make 
the actual frequency consistent with good engineering judgment. We may 
establish other guidelines as appropriate. Calibrate following 
specifications in one of three sources:
    (a) Recommendations from the manufacturer of the analyzers or 
equipment.
    (b) 40 CFR part 86, subpart F or subpart N.
    (c) 40 CFR part 90, subparts D and E, as applicable.


Sec.  1065.305  International calibration standards.

    (a) You may ask to use international standards for calibration.
    (b) You need not ask for approval to use standards that have been 
shown to be traceable to NIST standards.


Sec.  1065.310 CVS calibration.  [Reserved]


Sec.  1065.315  Torque calibration.

    You must use one of two techniques to calibrate torque: the lever-
arm dead-weight or the transfer technique. You may use other techniques 
if you show they are equally accurate. 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 
distance along a lever arm, corrected for the lever arm's hanging 
torque.
    (a) The lever-arm dead-weight technique involves placing known 
weights at a known horizontal distance from the torque-measuring 
device's center of rotation. You need two types of equipment:
    (1) Calibration weights. This technique requires at least six 
calibration weights for each range of torque-measuring device used. 
Equally space the weights and make sure each one is traceable to NIST 
weights. You also may use weights certified by a U.S. state 
government's bureau of weights and measures. If your laboratory is 
outside the U.S., see Sec.  1065.305 for information about using non-
NIST standards. You may account for effects of changes in gravitational 
constant at the test site.
    (2) Lever arm. This technique also requires a lever arm at least 20 
inches long. Make sure the horizontal distance from the torque-
measurement device's centerline to the point where you apply the weight 
is accurate to within +/-0.10 inches. You must balance the arm or know 
its hanging torque to within +/-0.1 ft-lbs.
    (b) The transfer technique involves calibrating a master load cell 
(dynamometer case load cell). You may calibrate the master load cell 
with known calibration weights at known horizontal distances. Or you 
may use a hydraulically actuated, precalibrated, master load cell and 
then transfer this calibration to the device that measures the flywheel 
torque. The transfer technique involves three main steps:
    (1) Precalibrate a master load cell or calibrate it following 
paragraph (a)(1) of this section. Use known weights traceable to NIST 
with the lever arms specified in paragraph (b)(2) of this section. Run 
or vibrate the dynamometer during this calibration to reduce static 
hysteresis.
    (2) Use lever arms at least 20 inches long. The horizontal 
distances from the master load cell's centerline to the dynamometer's 
centerline and to the point where you apply weight or force must be 
accurate to within +/-0.10 inches. Balance the arms or know their net 
hanging torque to within +/-0.1 ft-lbs.
    (3) Transfer calibration from the case or master load cell to the 
torque-measuring device with the dynamometer operating at a constant 
speed. Calibrate the torque-measurement device's readout to the master 
load cell's torque readout at a minimum of six loads spaced about 
equally across the full useful ranges of both measurement devices. 
(Good engineering practice requires that both devices have about the 
same useful ranges of torque measurement.) Transfer the calibration so 
it meets the accuracy requirements in Sec.  1065.105(a)(2) for readouts 
from the torque-measurement device.

Subpart E--Engine Selection, Preparation, and Service Accumulation


Sec.  1065.401  Selecting a test engine.

    While all engine configurations within a certified engine family 
must comply with the applicable standards in the standard-setting part, 
you are not required to test each configuration for certification.
    (a) Select for testing according to the following guidance the 
engine configuration within the engine family that is most likely to 
exceed an emission standard:
    (1) Test the engine that we specify, whether we do this through 
general guidance or give you specific instructions.
    (2) If we do not tell you which engine to test, follow any 
instructions in the standard-setting part.
    (3) If we do not tell you which engine to test and the standard-
setting part does

[[Page 68419]]

not include specifications for selecting test engines, use good 
engineering judgment to select the engine configuration within the 
engine family that is most likely to exceed an emission standard.
    (b) In the absence of other information, the following 
characteristics are appropriate to consider when selecting the engine 
to test:
    (1) Maximum fueling rates.
    (2) Maximum in-use engine speed (governed or ungoverned, as 
applicable).
    (3) Highest sales volume.
    (c) We may select any engine configuration within the engine family 
for our testing.


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 to your recommended oil and filter changes 
for newly produced engines, or to idle-speed adjustments.
    (d) Select engine operation for accumulating operating hours on 
your test engines to represent normal in-use 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 the 
standard-setting part specifies.
    (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 adjusting, repairing, 
removing, disassembling, cleaning, or replacing the test engine. We may 
approve routine maintenance that is not scheduled such as maintaining 
the proper oil level.
    (1) We may approve other 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 
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 otherwise in advance, you may not use 
equipment, instruments, or tools to identify bad engine components 
unless you specify they should be used for scheduled maintenance on 
production engines. In this case, if they are not generally available, 
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 the engine 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 take it apart, you may no longer use it as a test 
engine.


Sec.  1065.415  Durability demonstration.

    If the standard-setting part requires durability testing, you must 
accumulate service in a way that represents how you expect the engine 
to operate in use. You may accumulate service hours using an 
accelerated schedule, such as through continuous operation.
    (a) Maintenance. The following limits apply to the maintenance that 
we allow you to do on test engine:
    (1) You may perform scheduled maintenance that you recommend to 
operators, but only if it is consistent with the standard-setting 
part's restrictions.
    (2) You may perform 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 it apart, you may no longer use it as a test 
engine.
    (b) Emission measurements. You must measure emissions following two 
main requirements:
    (1) Perform emission tests to determine deterioration factors 
consistent with good engineering judgment. Evenly space any tests 
between the first and last test points throughout the durability 
period.
    (2) Perform emission tests following the provisions of this part 
and the standard-setting part.

Subpart F--Running an Emission Test


Sec.  1065.501  Overview of the engine dynamometer test procedures.

    (a) The engine dynamometer test procedure measures 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):
    (1) Either a cold-start cycle (where you measure emissions) or a 
warm-up cycle (where you do not measure emissions).
    (2) A hot-start transient test (some test cycles may omit engine 
starting from the ``hot-start'' cycle).
    (3) A steady-state test.
    (b) Measure power using the dynamometer's feedback signals for 
torque and speed. The power measurement produces a brake kilowatt-hour 
value that allows you to calculate brake-specific emissions (see 
Subpart G of this part).
    (c) Prepare engines for testing consistent with Sec.  1065.10(c)(1) 
and according to the following provisions:
    (1) When you test an engine or operate it for service accumulation, 
use the complete engine with all emission-control devices installed and 
functioning.
    (2) Install the fan for any air-cooled engine (if applicable).
    (3) You may install accessories such as an oil cooler, alternators, 
and air compressors or simulate their loading if they are typical of 
in-use operation. Apply this loading during all testing operations, 
including mapping.
    (4) You may install a production-type starter on the engine.
    (5) Cool the engine in a way that will maintain its operating 
temperatures including the intake air, oil, water temperatures about 
the same as they would be during normal operation. You may use 
auxiliary fans if necessary. You may use rust inhibitors and 
lubrication additives, up to the levels that the additive manufacturer 
recommends.

[[Page 68420]]

You may also use antifreeze mixtures and other coolants typical of 
those approved for use by the manufacturer.
    (6) Use representative exhaust and air-intake systems. Make sure 
the exhaust restriction is 80 to 100 percent of the recommended maximum 
specified exhaust restriction and the air inlet restriction is between 
that of a clean filter and the maximum restriction specification. As 
the manufacturer, you are liable for emission compliance from the 
minimum in-use restrictions to the maximum restrictions you specify for 
that particular engine.


Sec.  1065.510  Engine mapping procedures.

    (a) Torque map. Map your engine's torque while it is 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. Make sure the speed ranges at least from the 
warm no-load idle speed to 105 percent of the maximum test speed. 
Because you determine the maximum test speed from the torque map, you 
may have to perform a preliminary torque map to determine the full 
mapping range. You may perform this preliminary torque map while the 
engine warms up. To map the engine, do the following things in 
sequence:
    (1) Warm up the engine so oil and water temperatures (on an 
absolute scale such as the Kelvin scale) vary by less than two percent 
for two minutes; or until the thermostat opens if the engine-coolant 
system includes a thermostat.
    (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, keep the 
engine at minimum speed for at least 15 seconds. Record the average 
torque during the last 5 seconds.
    (5) In increments of 100+/-20 rpm, 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. You may use larger 
increments for engines with maximum test speed over 4000 rpm, as long 
as you include at least 40 points and space them evenly.
    (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) Torque map with continual engine speed sweep. In place of 
paragraphs (a)(1) through (a)(4) of this section, you may do a 
continual sweep of engine speed. While operating at wide-open throttle, 
increase the engine speed at an average rate of 8+/-1 rpm/sec over the 
full speed range. You may use higher sweeping rates for naturally-
aspirated engines, in accordance with good engineering judgment. 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. You may use other mapping techniques if you 
believe those in paragraphs (a) and (b) of this section are unsafe or 
unrepresentative for any engine or engine family. 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 this 
section's mapping techniques for reasons of safety or 
representativeness. In no case, however, may you use descending 
continual sweeps of engine speed for governed or turbocharged engines.
    (d) Replicate tests. You need not map an engine before every test, 
but you do need to remap the engine in any of the following situations:
    (1) Good engineering judgment determines that an unreasonable 
amount of time has passed since the last map.
    (2) The barometric pressure before the test begins has changed more 
than 25 mm Hg from the average barometric pressure observed during the 
map.
    (3) The engine has undergone physical changes or recalibration that 
might affect its performance.
    (e) Power map. Where applicable, generate a power map using the 
procedures this section specifies for torque maps. You may generate the 
power map directly or convert the torque map to a power map using 
engine speeds. The power map is also called a lug curve.
    (f) Cycles based only on torque/power at maximum test speed. If the 
applicable test cycle for your engine does not require map information 
for engine speeds other than the maximum test speed, you may make the 
following simplifications:
    (1) You need not perform the entire torque or power map, as long as 
you map the engines for speeds between 75 and 105 percent of the 
maximum test speed.
    (2) You need not remap an engine according to paragraph (d) of this 
section. You need only verify the maximum torque or power at maximum 
test speed.


Sec.  1065.515  Test cycle generation.

    (a) Denormalizing test cycles. The standard-setting parts establish 
the applicable test cycles consisting of second-by-second 
specifications for normalized torque and speed for transient cycles, or 
modal specifications for normalized torque and speed (or power and 
speed) for steady-state cycles. You must denormalize these values to 
get actual torque and speed for your engine.
    (1) Torque is normalized to a maximum-torque value. Check the 
standard-setting part to see if it is normalized based on the maximum 
torque at the given speed or based on the maximum torque for all 
speeds. To denormalize the torque values in the cycle, use the engine's 
maximum-torque point or its torque map (Sec.  1065.510 describes how to 
generate the torque map).
    (2) Power is normalized to a maximum-power value. Check the 
standard-setting part to see if it is normalized based on the maximum 
power at the given speed or based on the maximum power for all speeds. 
To denormalize the power values in the cycle, use the engine's maximum-
power point or its power map (Sec.  1065.510 describes how to generate 
the power map).
    (3) To denormalize speed, use the following equation:

Actual engine speed = (0.01) x (%engine speed) x (Maximum test speed--
warm idle speed) + warm idle speed

    (4) Paragraph (d) of this section describes how to calculate 
maximum test speed.
    (b) Example of denormalizing a test points. For an engine with 
maximum test speed of 3800 rpm and warm idle speed of 600 rpm, 
denormalize the following test point: percent engine speed = 43, 
percent torque = 82.
    (1) Calculate actual engine speed. The following equation applies 
for this example:

Actual engine speed = (0.01) x (43) x (3800-600) + 600 = 1976 rpm.

    (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. The resulting actual torque is 294 
ft-lbs.
    (c) Cold-start enhancement devices. If an engine has a properly 
operating automatic enhancement device for cold starts, let it override 
the zero-percent speed specified in the test cycles.
    (d) Maximum test speed. For constant-speed engines, maximum test 
speed is the same as the engine's maximum operating speed in use. 
Maximum test speed for variable-speed engines occurs on the lug curve 
at the

[[Page 68421]]

point farthest from the origin on a plot of power vs. speed. To find 
this speed, follow three main 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] TR08NO02.015

    (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.
    (e) Intermediate test speed. Determine intermediate test speed with 
the following provisions:
    (1) If peak torque speed is 60 to 75 percent of the maximum test 
speed, the intermediate speed point is at that same speed.
    (2) If peak torque speed is less than 60 percent of the 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 the maximum 
test speed, the intermediate speed point is at 75 percent of maximum 
test speed.


Sec.  1065.520  Engine starting, restarting, and shutdown.

    Unless the standard-setting part specifies otherwise, follow the 
steps in this section to start and shut down the test engine:
    (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. Use the 
dynamometer to crank (or motor) the engine at the typical in-use 
cranking speed with a fully charged battery (nominal speed +/-10 
percent), accelerating the engine to cranking speed in the same time it 
would take with a starter motor (nominal +/-0.5 seconds). Stop motoring 
by the dynamometer within one second of starting the engine. The 
cycle's free-idle period begins when you determine that the engine has 
started.
    (1) If the engine does not start after 15 seconds of cranking, stop 
cranking and determine the reason it failed to start. While diagnosing 
the problem, turn off the device that measures gas flow (or revolution 
counter) on the constant-volume sampler (and all integrators when 
measuring emissions continuously). Also, turn off the constant-volume 
sampler or disconnect the exhaust tube from the tailpipe. If failure to 
start is an operational error, reschedule the engine for testing (this 
may require soaking the engine if the test requires a cold-start).
    (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 
correct it in less than 30 minutes 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 you cannot restart the engine, the test is void.
    (b) Engine stalling. Respond to engine stalling as follows:
    (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 at any other time, 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 check for leaks as necessary.
    (b) If you are using bag samples, connect evacuated sample-
collection bags to the collection system for the dilute exhaust and 
dilution air sample.
    (c) Attach the CVS to the engine's exhaust system any time before 
starting the CVS.
    (d) Start the CVS (if not already started), the sample pumps, the 
engine cooling fans, and the data-collection system. Before the test 
begins, preheat the CVS's heat exchanger (if used) and the heated 
components of any continuous sampling systems to designated operating 
temperatures.
    (e) Adjust the sample flow rates to the desired levels and set to 
zero the devices in the CVS that measure gas flow. The venturi design 
fixes the sample flow rate in a CFV-CVS.
    (f) Start the engine if engine starting is not part of the test 
cycle, as 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 complete, analyze 
the bag samples.


Sec.  1065.530  Test cycle validation criteria.

    (a) Steady-state emission testing. Make sure your engine's speeds 
and loads stay within +/-2 percent of the set point during the sampling 
period.
    (b) Transient emission testing performed by EPA. Emission tests 
must meet the specifications of this paragraph (b). Otherwise, they do 
not comply with the test cycle requirements of the standard-setting 
part, unless we determine the cause of the failure to meet these 
specifications is related to the engine rather than the test equipment.
    (1) Shifting feedback signals. The time lag between the feedback 
and reference-cycle values may bias results. To reduce this effect, you 
may advance or delay the entire sequence of engine-speed and torque-
feedback signals with respect to the reference sequence for speed and 
torque. If you shift the feedback signals, you must shift speed and 
torque the same amount in the same direction.
    (2) Calculating brake kilowatt-hour emissions. Calculate brake 
kilowatt-hour emissions for each pair of feedback values recorded for 
engine speed and torque. Also calculate the reference brake kilowatt-
hour for each pair of reference values for engine speed and torque. 
Calculate to five significant figures.
    (3) Performing regression-line analysis. Perform regression 
analysis to calculate validation statistics as follows:
    (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


[[Page 68422]]


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 (r\2\) for each regression line.
    (iii) For a valid test, make sure the feedback cycle's integrated 
brake kilowatt-hour is within 5 percent of the reference cycle's 
integrated brake kilowatt-hour. Also, ensure that the slope, intercept, 
standard error, and coefficient of determination meet the criteria in 
the following table (you may delete individual points from the 
regression analyses, consistent with good engineering judgment):

                  Table 1 of Sec.   1065.530.--Statistical Criteria for Validating Test Cycles
----------------------------------------------------------------------------------------------------------------
                                                Speed                    Torque                   Power
----------------------------------------------------------------------------------------------------------------
1. Slope of the regression line (m)..  0.980 to 1.020.........  0.880 to 1.030.........  0.880 to 1.030.
--------------------------------------
2. Y intercept of the regression line  [verbarlm]b[verbarlm]    [verbarlm]b[verbarlm]    [verbarlm]b[verbarlm]
 (b).                                   <= 40 rpm.               <= 5.0 percent of        <= 3.0 percent of
                                                                 maximum torque from      maximum torque from
                                                                 power map.               power map.
--------------------------------------
3. 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.
--------------------------------------
4. Coefficient of determination        r\2\ = 0.970  r\2\ = 0.900  r\2\ =
 (r\2\).                                                                                  0.900.
----------------------------------------------------------------------------------------------------------------

    (c) Transient testing performed by manufacturers. Emission tests 
that meet the specifications of paragraph (b) of this section satisfy 
the standard-setting part's requirements for test cycles. You may ask 
to use a dynamometer that cannot meet those specifications, consistent 
with good engineering practice. We will approve your request as long as 
using the alternate dynamometer does not affect your ability to show 
that you comply with all applicable emission standards.

Subpart G--Data Analysis and Calculations


Sec.  1065.601  Overview.

    This subpart describes how to use the responses on the analyzers 
and other meters to calculate final gram per kilowatt-hour emission 
rates.

    Note: Volume and density values used in these calculations are 
generally corrected to standard conditions of 20[deg]C and 101.3 
kPa.)

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 speed, 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.

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; if necessary, repeat the procedure in paragraphs 
(a) and (b) of this section.
    (d) Check flow rates and pressures.
    (e) Measure HC, CO, CO2, 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, as follows:

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 is:

Emission rate = (total dilute exhaust flow volume)(ppm)(density 
factor)/10\6\
    Mx = (Vmix)(Ci)(fdi)/
10\6\
Where:

Mx = Mass emission rate in g/test segment.
Vmix = Total dilute exhaust flow volume flow in m\3\ per 
test segment corrected to 20[deg]C and 101.3 kPa.
    Ci = The concentration of species i, in ppm or ppmC, 
corrected for background

[[Page 68423]]

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/m\3\ for THC, 1913 g/m\3\ for NOX, and 1164 g/
m\3\ for CO.

    (2) The equation to calculate Ci is:

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 (kW-hr) done during the emissions 
sampling period of each segment or mode.
    (d) Calculate emissions in g/kW-hr by dividing the mass emission 
rate (g/test segment) by the total brake work for the test segment.
    (e) Apply deterioration factors or other adjustment factors to the 
brake-specific emission rate in paragraph (e) as specified in the 
standard-setting part.

Subpart H--Particulate Measurements [Reserved]

Subpart I--Testing With Oxygenated Fuels


Sec.  1065.801  Applicability.

    (a) This subpart applies for testing with oxygenated fuels. Except 
where specified otherwise in the standard-setting part, compliance with 
this subpart is not required for fuels that contain less than 25 
percent oxygenated compounds by volume. For example, you generally 
would not need to follow the requirements of this subpart for tests 
performed using a fuel that was 10 percent ethanol and 90 percent 
gasoline, but you would need to follow these requirements for tests 
performed using a fuel that was 85 percent ethanol and 15 percent 
gasoline.
    (b) This subpart specifies sampling procedures and calculations 
that are different than those used for non-oxygenated fuels. The other 
test procedures of this part apply for testing with oxygenated fuels.


Sec.  1065.805  Sampling system.

    (a) Use the sampling procedures specified in 40 CFR part 86 for 
methanol and formaldehyde to measure alcohols and aldehydes in the 
exhaust. This requires the following:
    (1) Bubbling a sample of the exhaust through water to collect the 
alcohols.
    (2) Passing a sample of the exhaust through cartridges impregnated 
with 2,4-dinitrophenylhydrazine to measure aldehydes.
    (b) Use good engineering judgment to measure other oxygenated 
compounds in the exhaust.


Sec.  1065.810  Calculations.

    (a) THCE emissions. (1) Calculate THCE emissions as the sum of the 
mass of the nonoxygenated hydrocarbons in the exhaust and the carbon-
equivalent mass of each measured oxygenated species in the exhaust.
    (2) Calculate carbon-equivalent mass of each measured oxygenated 
species from the following equation:

 Carbon equivalent = 13.8756 x MOC/MWPC
Where:

    MOC is the mass of the oxygenated compound in the exhaust, and MWPC 
is the molecular weight of compound per carbon atom of compound.
    (b) NMHCE emissions. Calculate NMHCE emissions as either:
    (1) The sum of the mass of the nonoxygenated nonmethane 
hydrocarbons in the exhaust and the carbon-equivalent mass of each 
measured oxygenated species in the exhaust.
    (2) THCE minus the mass of methane in the exhaust.
    (c) Sample calculation. (1) Assume the following emissions for a 
test: 40.00 grams of nonoxygenated hydrocarbons, 100.00 grams of 
ethanol, and 10.00 grams of acetaldehyde, and 1.00 gram of 
formaldehyde.
    (2) The carbon-equivalent of the masses of oxygenated compounds 
are:
    (i) 13.8756 x 100.00/(46.068/2) = 60.24 grams of ethanol.
    (ii) 13.8756 x 10.00/(44.052/2) = 6.30 grams of acetaldehyde.
    (iii) 13.8756 x 1.00/(30.026) = 0.46 grams of formaldehyde.
    (3) THCE = 40.00 + 60.24 + 6.30 + 0.46 = 107.00 grams per test.

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. For example, part 1048 of this chapter specifies 
emission standard to be used for in-use tests conducted in accordance 
with the provisions of this part. Unless this subpart is specifically 
mentioned in the standard-setting part, compliance with the provisions 
of this subpart is not required.


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 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 0.97 to 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 
Sec. Sec.  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 Sec. Sec.  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-

[[Page 68424]]

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.  1065.945.
    (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) Mass 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 require more than 10 seconds 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. For 
residence time delays between 1 and 10 seconds, you must correct the 
measurements to be consistent with the data for engine speed, torque, 
and air intake. You may also correct other measurements with less than 
delays less than 1 second.
    (d) You may insert the sample probes and sensors into the exhaust 
pipe, or mount them in an exhaust extension that is connected to the 
exhaust pipe with negligible leaking. Place the sample probes and 
sensors close enough 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.
    (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 time marks 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 
applicable 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 
standard m\3\/hr (volume and density values used in these calculations 
are corrected to standard conditions of 20 [deg]C and 101.3 kPa.). 
Calculate exhaust volumetric flow rate from the following equation:

Exhaust volumetric flow rate = (intake air mass flow rate)(1+mass fuel/
air ratio)/(density of exhaust)

    (1) If you do not know the instantaneous density of the exhaust, 
use the minimum density of the exhaust that occurs over the course of 
the test, corrected to standard conditions.
    (2) For gasoline-fueled engines designed to be operated at 
stoichiometric fuel/air ratios, you may assume that the density of the 
exhaust is 1202 g/m\3\ at standard conditions of 20 [deg]C and 101.3 
kPa.
    (3) For LPG-fueled engines designed to be operated at 
stoichiometric fuel/air ratios, you may assume that the density of the 
exhaust is 1175 g/m\3\ at standard conditions of 20 [deg]C and 101.3 
kPa.
    (4) For CNG-fueled engines designed to be operated at 
stoichiometric fuel/air ratios, you may assume that the density of the 
exhaust is 1149 g/m\3\ at standard conditions of 20 [deg]C and 101.3 
kPa.
    (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. 
Verify for each engine before testing that the sensor accurately reads 
the idle intake air flow rate based on measured manifold temperature 
(TM) and pressure PM). Use the following 
equation:


[[Page 68425]]


    Intake air flow = (displacement)(rpm)(volumetric 
efficiency)(PM/101.3 kPa)(293.15 K/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 be 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 be 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 the true value. You can demonstrate compliance with this accuracy 
requirement using steady-state laboratory 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.  1065.1001  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 speed, 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.
    Brake power has the meaning given in the standard-setting part. If 
it is not defined in the standard-setting part, brake power means the 
usable power output of the engine not including power required to 
operate fuel pumps, oil pumps, or coolant pumps.
    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 Programs Group (6405-
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.
    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.
    Equipment-based or vehicle-based means relating to programs that 
require that a piece of equipment of vehicle be certified, rather than 
only the engine.
    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.
    Fuel type means a general category of fuels such as gasoline or 
LPG. There can be multiple grades within a single type of fuel, such as 
summer-grade gasoline and winter-grade gasoline.
    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.
    Idle speed means the lowest engine speed with zero load.

    Note:  Warm idle speed is the idle speed of a warmed-up 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 that import 
engines for resale.
    Maximum test torque means:

[[Page 68426]]

    (1) For throttled engines, the torque output observed at wide-open 
throttle at a given speed.
    (2) For non-throttled engines, 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 compounds containing only nitrogen and 
oxygen. Oxides of nitrogen are expressed quantitatively as if the NO is 
in the form of NO2 (assume a molecular weight for all oxides 
of nitrogen equivalent to that of NO2). This correction is 
included in the equations specified for calculating NOX 
emissions.
    Oxygenated fuel means a fuel that is comprised of oxygen-containing 
compound, such as ethanol or methanol. Generally, testing engines that 
use oxygenated fuels requires the use of the sampling methods in 
subpart I of this part. However, you should read the standard-setting 
part and subpart I of this part to determine which sampling methods to 
use.
    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 introduce into 
commerce the affected engines. This does not apply to engines you no 
longer possess.
    Scheduled maintenance means maintenance (i.e., 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.
    Span means to adjust an instrument so that it gives a proper 
response to a calibration standard that represents between 75 and 100 
percent of the maximum value in the instrument range (e.g. a span gas).
    Spark-ignition means relating to a gasoline-fueled engine or other 
engines 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 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 an 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.
    Wide-open throttle means maximum throttle opening for throttled 
engines. Unless this is specified at a given speed, it refers to 
maximum throttle opening at maximum speed. For electronically 
controlled or other engines with multiple possible fueling rates, wide-
open throttle also means the maximum fueling rate at maximum throttle 
opening under test conditions.
    Zero means to adjust an instrument so that it gives a proper 
response to a blank calibration standard (e.g. zero-grade air).


Sec.  1065.1005  Symbols, acronyms, and abbreviations.

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

[deg] degrees.
'' inches.
ASTM American Society for Testing and Materials.
C Celsius.
cc cubic centimeters.
CFR Code of Federal Regulations.
CFV critical-flow venturi.
CI compression-ignition.
CLD chemiluminescent detector.
CO carbon monoxide.
CO2 carbon dioxide.
CVS constant-volume sampler.
DF deterioration factor.
F Fahrenheit.
EFC electronic flow control.
EPA Environmental Protection Agency.
ft feet.
FID flame ionization detector.
g/kW-hr grams per kilowatt-hour.
g/liter grams per liter.
g/m\3\ grams per cubic meter.
Hz hertz.
IBP initial boiling point.
ISO International Organization for Standardization.
kPa kilopascal.
lbs. pounds.
LPG liquefied petroleum gas.
m meters.
ml milliliters.
mm Hg millimeters of mercury.
NDIR nondispersive infrared.
NIST National Institute for Standards and Testing.
NMHC nonmethane hydrocarbons.
NMHCE nonmethane hydrocarbon equivalent.
NO nitric oxide.
NO2 nitrogen dioxide.
NOX oxides of nitrogen (NO and NO2).
O2 oxygen.
PDP positive-displacement pump.
ppm parts per million.
ppmC parts per million carbon.
RMS root-mean square.
rpm revolutions per minute.
sec seconds.
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 the U.S. EPA, Air and Radiation 
Docket and Information Center, 1301 Constitution Ave., NW., Room B102, 
EPA West Building, Washington, DC 20460 or the Office of the Federal 
Register, 800 N. Capitol St., NW., 7th Floor, Suite 700, Washington, 
DC.
    (a) ASTM material. Table 1 of Sec.  1065.1010 lists material from 
the American Society for Testing and

[[Page 68427]]

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. Anyone may purchase copies 
of these materials from the American Society for Testing and Materials, 
100 Barr Harbor Dr., West Conshohocken, PA 19428. Table 1 follows:

              Table 1 of Sec.   1065.1010.--ASTM Materials
------------------------------------------------------------------------
                                                             Part 1065
                Document number and name                     reference
------------------------------------------------------------------------
ASTM D 86-01, Standard Test Method for Distillation of          1065.210
 Petroleum Products at Atmospheric Pressure.............
---------------------------------------------------------
ASTM D 323-99a, Standard Test Method for Vapor Pressure         1065.210
 of Petroleum Products (Reid Method)....................
---------------------------------------------------------
ASTM D 1266-98, Standard Test Method for Sulfur in              1065.210
 Petroleum Products (Lamp Method).......................
---------------------------------------------------------
ASTM D 1319-02, Standard Test Method for Hydrocarbon            1065.210
 Types in Liquid Petroleum Products by Fluorescent
 Indicator Adsorption...................................
---------------------------------------------------------
ASTM D 1267-02, Standard Test Method for Gage Vapor             1065.220
 Pressure of Liquefied Petroleum (LP) Gases (LP-Gas
 Method)................................................
---------------------------------------------------------
ASTM D 1837-02, Standard Test Method for Volatility of          1065.220
 Liquefied Petroleum (LP) Gases.........................
---------------------------------------------------------
ASTM D 1838-91 (Reapproved 2001), Standard Test Method          1065.220
 for Copper Strip Corrosion by Liquefied Petroleum (LP)
 Gases..................................................
---------------------------------------------------------
ASTM D 1945-96 (Reapproved 2001), Standard Test Method          1065.215
 for Analysis of Natural Gas by Gas Chromatography......
---------------------------------------------------------
ASTM D 2158-02, Standard Test Method for Residues in            1065.220
 Liquefied Petroleum (LP) Gases.........................
---------------------------------------------------------
ASTM D 2163-91 (Reapproved 1996), Standard Test Method          1065.220
 for Analysis of Liquefied Petroleum (LP) Gases and
 Propene Concentrates by Gas Chromatography.............
---------------------------------------------------------
ASTM D 2598-02, Standard Practice for Calculation of            1065.220
 Certain Physical Properties of Liquefied Petroleum (LP)
 Gases from Compositional Analysis......................
---------------------------------------------------------
ASTM D 2713-91 (Reapproved 2001), Standard Test Method          1065.220
 for Dryness of Propane (Valve Freeze Method)...........
---------------------------------------------------------
ASTM D 2784-98, Standard Test Method for Sulfur in              1065.220
 Liquefied Petroleum Gases (Oxy-Hydrogen Burner or Lamp)
---------------------------------------------------------
ASTM D 3231-02, Standard Test Method for Phosphorus in          1065.210
 Gasoline...............................................
---------------------------------------------------------
ASTM D 3237-97, Standard Test Method for Lead in                1065.210
 Gasoline By Atomic Absorption Spectroscopy.............
------------------------------------------------------------------------

    (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. Anyone may purchase copies of these materials from the 
International Organization for Standardization, Case Postale 56, CH-
1211 Geneva 20, Switzerland. Table 2 follows:

               Table 2 of Sec.   1065.1010.--ISO Materials
------------------------------------------------------------------------
          Document number and name               Part 1065  reference
------------------------------------------------------------------------
ISO 8178-1, Reciprocating internal           1065.130, 1065.135,
 combustion engines--Exhaust emission         1065.140, 1065.155.
 measurement--Part 1: Test-bed measurement
 of gaseous and particulate exhaust
 emissions, 1996.
------------------------------------------------------------------------

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 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 information must I give to EPA?
1068.30 What definitions apply to this part?
1068.35 What symbols, acronyms, and abbreviations does this part 
use?

[[Page 68428]]

Subpart B--Prohibited Actions 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 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 and Exclusions
1068.201 Does EPA exempt or exclude any engines from the prohibited 
acts?
1068.210 What are the provisions for exempting test engines?
1068.215 What are the provisions for exempting manufacturer-owned 
engines?
1068.220 What are the provisions for exempting display engines?
1068.225 What are the provisions for exempting engines for national 
security?
1068.230 What are the provisions for exempting engines for export?
1068.235 What are the provisions for exempting engines used solely 
for competition?
1068.240 What are the provisions for exempting new replacement 
engines?
1068.245 What temporary provisions address hardship due to unusual 
circumstances?
1068.250 What are the provisions for extending compliance deadlines 
for small-volume manufacturers under hardship?
1068.255 What are the provisions for exempting engines for hardship 
for equipment manufacturers and secondary engine 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 How do I import engines to modify for other applications?
1068.335 What are the penalties for violations?
Subpart E--Selective Enforcement Auditing
11068.401 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 fails an SEA?
1068.425 What happens if one of my production-line engines exceeds 
the emission standards?
1068.430 What happens if an engine family fails an SEA?
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--Reporting Defects and Recalling Engines
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--Hearings
1068.601 What are the procedures for hearings?
Appendix I to Part 1068--Emission-Related Components
Appendix II to Part 1068--Emission-Related 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 
(including owners, operators, parts manufacturers, and persons 
performing maintenance):
    (1) Large nonroad spark-ignition engines we regulate under 40 CFR 
part 1048.
    (2) Recreational SI engines and vehicles that we regulate under 40 
CFR part 1051 (such as snowmobiles and off-highway motorcycles).
    (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.  1068.30).
    (d) Paragraph (a)(1) of this section identifies the parts of the 
CFR that define emission standards and other requirements for 
particular types of engines and vehicles. This part 1068 refers to each 
these other parts generically as the ``standard-setting part.'' For 
example, 40 CFR part 1051 is always the standard-setting part for 
snowmobiles. 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 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

[[Page 68429]]

(c) of this section and explain our reasons for them.
    (e) If you disagree with our conclusions, you may file a request 
for a 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?

    (a) 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.
    (b) The regulations in this part and in the standard-setting part 
have specific requirements describing how to get EPA approval before 
you take specific actions. These regulations also allow us to waive 
some specific requirements. For provisions or flexibilities that we 
address frequently, we may choose to provide detailed guidance in 
supplemental compliance instructions for manufacturers. Such 
instructions will generally state how they relate to the need for pre-
approval. Unless we explicitly state so, you should not consider full 
compliance with the instructions to be equivalent to EPA approval.


Sec.  1068.20  May EPA enter my facilities for inspections?

    (a) We may inspect your engines, testing, manufacturing processes, 
engine storage facilities (including port facilities for imported 
engines or other relevant facilities), or records, as authorized by the 
Act, 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 authorized by the Act. 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 information must I give to EPA?

    If you are subject to the requirements of this part, we may require 
you to give us information to evaluate your compliance with any 
regulations that apply, as authorized by the Act. This includes the 
following things:
    (a) You must provide the information we require in this chapter.
    (b) You must establish and maintain records, perform tests, make 
reports and provide additional information that we may reasonably 
require under section 208 of the Act. This also applies to engines we 
exempt from emission standards.


Sec.  1068.30  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.
    Aircraft means any vehicle capable of sustained air travel above 
treetop heights.
    Certificate holder means a 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 
(6405-J), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave., 
Washington, DC 20460.
    Emission-related defect means a defect in design, materials or 
workmanship (in an emission control device or vehicle component or 
system) that affects an emission-related component, parameter, or 
specification that is identified in Appendix I or Appendix II of this 
part.
    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 means the manufacturer that is subject to the 
certification requirements of the standard-setting part. For vehicles/
equipment subject to this part and regulated under vehicle/equipment-
based standards, the term engine manufacturer in this part includes 
vehicles/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 (such as a vehicle) for sale or use in the United States.
    Manufacturer has the meaning given in section 216(1) of the Act. In 
general,

[[Page 68430]]

this term includes any person who manufactures an engine or vehicle for 
sale in the United States or otherwise introduces a new engine or 
vehicle into commerce in the United States. This includes importers 
that import new engines or new equipment into the United States for 
resale. It also includes secondary engine manufacturers.
    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) 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 and security personnel 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.
    Reasonable technical basis means information that would lead a 
person familiar with engine design and function to reasonably believe a 
conclusion, related to compliance with the requirements of this part. 
For example, it would be reasonable to believe that parts performing 
the same function as the original parts (and to the same degree) would 
control emissions to the same degree as the original parts.
    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)). For example, the standard-setting part for non-
recreational spark-ignition engines over 19 kW is part 1048 of this 
chapter.
    Ultimate purchaser means the first person who in good faith buys a 
new 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.
    We (us, our) means the Administrator of the Environmental 
Protection Agency and any authorized representatives.


Sec.  1068.35  What symbols, acronyms, and abbreviations does this part 
use?

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

$ U.S. dollars.
CFR Code of Federal Regulations.
EPA Environmental Protection Agency.
U.S. United States.
U.S.C. United States Code.

Subpart B--Prohibited Actions and Related Requirements


Sec.  1068.101  What general actions does this regulation prohibit?

    This section specifies actions that are prohibited and the maximum 
civil penalties that we can assess for each violation. The maximum 
penalty values listed in paragraphs (a) and (b) of this section are 
shown for calendar year 2002. As described in paragraph (e) of this 
section, maximum penalty limits for later years are set forth in 40 CFR 
part 19.
    (a) The following prohibitions and requirements 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.  1068.240. We may assess a civil penalty up to 
$31,500 for each engine in violation.
    (2) This chapter requires you to record certain types of 
information to show that you meet our standards. You must comply with 
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 must give us the required reports or information without 
delay. Failure to comply with the requirements of this paragraph is 
prohibited. We may assess a civil penalty up to $31,500 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 must perform the 
tests we require (or have the tests done for you). Failure to perform 
this testing is prohibited. We may assess a civil penalty up to $31,500 
for each day in violation.

[[Page 68431]]

    (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, we may assess a civil penalty up to $31,500 for each engine in 
violation. For anyone else, we may assess a civil penalty up to $3,150 
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. We may 
assess a civil penalty up to $3,150 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.  1068.30. We may assess a civil penalty up to 
$31,500 for each day in violation.
    (4) For an uncertified engine or piece of equipment that is 
excluded or exempted 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. We may assess a 
civil penalty up to $31,500 for each day in violation.
    (5) You may not import an uncertified engine or piece of equipment 
if it is defined to be new in the standard-setting part, and it would 
have been subject to standards had it been built in the United States. 
We may assess a civil penalty up to $31,500 for each day in violation. 
Note the following:
    (i) The definition of new is broad for imported engines; 
uncertified engines and equipment (including used engines and 
equipment) are generally considered to be new when imported.
    (ii) Engines that were originally manufactured before applicable 
EPA standards were in effect are generally not subject to emission 
standards.
    (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 manufacturers (including importers) and 
others under this chapter.
    (e) The maximum penalty values listed in paragraphs (a) and (b) of 
this section are shown for calendar year 2002. Maximum penalty limits 
for later years may be adjusted based on the Consumer Price Index. The 
specific regulatory provisions for changing the maximum penalties, 
published in 40 CFR part 19, reference the applicable U.S. Code 
citation on which the prohibited action is based. The following table 
is shown here for informational purposes:

  Table 1 of Sec.   1068.101.--Legal Citation for Specific Prohibitions for Determining Maximum Penalty Amounts
----------------------------------------------------------------------------------------------------------------
   Part 1068 regulatory citation of        General description of        U.S. Code citation for Clean Air Act
          prohibited action                     prohibition                            authority
----------------------------------------------------------------------------------------------------------------
Sec.   1068.101(a)(1)................  Introduction into commerce of  42 U.S.C. 7522(a)(1)
                                        an uncertified product.
--------------------------------------
Sec.   1068.101(a)(1)................  Failure to provide             42 U.S.C. 7522(a)(2)
                                        information.
--------------------------------------
Sec.   1068.101(a)(3)................  Denying access to facilities.  42 U.S.C. 7522(a)(2)
--------------------------------------
Sec.   1068.101(b)(1)................  Tampering with emission        42 U.S.C. 7522(a)(3)
                                        controls by a manufacturer
                                        or dealer.
                                       Tampering with emission
                                        controls by someone other
                                        than a manufacturer or
                                        dealer.
--------------------------------------
Sec.   1068.101(b)(2)................  Sale or use of a defeat        42 U.S.C. 7522(a)(3)
                                        device.
--------------------------------------
Sec.   1068.101(b)(3)................  Mobile use of a stationary     42 U.S.C. 7522(a)(1)
                                        engine.
--------------------------------------
Sec.   1068.101(b)(4)................  Noncompetitive use of an       42 U.S.C. 7522(a)(1)
                                        uncertified engine that is
                                        exempted for competition.
--------------------------------------
Sec.   1068.101(b)(5)................  Importation of an uncertified  42 U.S.C. 7522(a)(1)
                                        product.
----------------------------------------------------------------------------------------------------------------

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.

[[Page 68432]]

    (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. It is a violation of the Act for anyone to manufacture 
an engine or vehicle part if one of its main effects is to reduce the 
effectiveness of the emission controls. See Sec.  1068.101(b)(2).
    (b) Certifying aftermarket parts. As the manufacturer or rebuilder 
of an aftermarket engine part, you may--but are not required to--
certify according to Sec.  85.2114 of this chapter that using the part 
will not cause engines to fail to meet emission standards. Whether you 
certify or not, however, you must keep any information showing how your 
parts or service affect emissions.
    (c) Compliance with standards. We may test engines or equipment to 
investigate compliance with emission standards. We may also require the 
manufacturer to do this testing.
    (d) Defeat devices. We may test engines or equipment to investigate 
potential defeat devices. We may also require the 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. It is a violation 
of the Act for anyone to make, install or use defeat devices. See Sec.  
1068.101(b)(2) and the standard-setting part.
    (e) Warranty and maintenance. Owners may make warranty claims 
against the 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. See the standard-setting 
part for specific requirements. It is a violation of the Act for anyone 
to disable emission controls. See Sec.  1068.101(b)(1) and the 
standard-setting part.


Sec.  1068.115  When must manufacturers honor emission-related warranty 
claims?

    Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a)) requires 
certifying manufacturers to warrant to purchasers that their engines 
are designed, built, and equipped to conform at the time of sale to the 
applicable regulations for their full useful life, including a warranty 
that the engines are free from defects in materials and workmanship 
that would cause an engine to fail to conform to the applicable 
regulations during the specified warranty period. This section codifies 
the warranty requirements of section 207(a) without intending to limit 
these requirements.
    (a) As a certifying manufacturer, you may deny warranty claims for 
failures that have been caused by the owner's or operator's improper 
maintenance or use. For example, you would not need to honor warranty 
claims for failures that have been directly caused by the operator's 
abuse of an engine or the operator's use of the engine in a manner for 
which it was not designed, and are not attributable to you in any way.
    (b) As a certifying 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.


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 recordkeeping requirements in paragraphs 
(j) and (k) of this section apply only to businesses.
    (b) The term ``rebuilding'' refers to a rebuild of an engine or 
engine system, including a major overhaul in which you replace the 
engine's pistons or 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 the 
engine's systems for fuel metering or electronic control so that it 
significantly increases the service life of the engine. For these 
provisions, rebuilding may or may not involve removing the engine from 
the equipment. Rebuilding does not normally include the following:
    (1) Scheduled emission-related maintenance that the standard-
setting part allows during the useful life period (such as replacing 
fuel injectors).
    (2) Unscheduled maintenance that occurs commonly within the useful 
life period. For example, replacing a water pump is not rebuilding.
    (c) For maintenance or service that is not rebuilding, you may not 
make changes that might increase emissions, but you do not need to keep 
any records.
    (d) If you rebuild an engine or engine system, 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. For example, it would be reasonable to believe that 
parts performing the same function as the original parts (and to the 
same degree) would control emissions to the same degree as 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.

[[Page 68433]]

    (e) 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.
    (f) 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.
    (g) 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.
    (h) 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), unless you have 
a reasonable technical basis for believing they do not need 
replacement.
    (i) 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.
    (j) 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.
    (4) Identify any emission-related codes or signals you responded to 
and reset.
    (k) 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 these 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.
    (vii) Such other matters as justice may require.
    (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 
$250,000 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, or if the limit is 
adjusted under 40 CFR part 19. 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). The Administrator may 
compromise or remit, with or without conditions, any administrative 
penalty that may be imposed under this section.
    (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 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 not add civil penalties unless 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.

[[Page 68434]]

Subpart C--Exemptions and Exclusions


Sec.  1068.201  Does EPA exempt or exclude 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.  1068.235). In addition, see 
Sec.  1068.1 and the standard-setting parts to determine if other 
engines are excluded from some or all of the regulations in this 
chapter.
    (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. You may ask us to 
approve wording on the emission label different than we specify in this 
subpart if it is more appropriate for your engine.
    (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.
    (h) You may ask us to modify the administrative requirements for 
the exemptions described in this subpart. We may approve your request 
if we determine that such approval is consistent with the intent of 
this part. For example, waivable administrative requirements might 
include some reporting requirements, but would not include any 
eligibility requirements or use restrictions.
    (i) If you want to take an action with respect to an exempted or 
excluded engine that is prohibited by the exemption or exclusion, such 
as selling it, you need to certify the engine. We will issue a 
certificate of conformity if you send us an application for 
certification showing that you meet all the applicable requirements 
from the standard-setting part. Also, in some cases, it may be 
sufficient to modify the engine as needed to make it identical to 
engines already covered by a certificate. Make sure these engines have 
emission control information labels that accurately describe their 
status.


Sec.  1068.210  What are the provisions for exempting test engines?

    (a) We may exempt engines that are not exempted under other 
sections of this part that you will 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:
    (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. The exemption does not take effect 
until we receive the signed letter or memorandum from you. 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 (as 
applicable), 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.''.
    (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.  1068.215  What are the provisions for exempting manufacturer-
owned engines?

    (a) You are eligible for the exemption for manufacturer-owned 
engines only 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

[[Page 68435]]

the engine or whom to contact for further information.
    (iv) 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 display engines?

    (a) Anyone may request an exemption for display engines.
    (b) A nonconforming display engine will be exempted if it is used 
only for displays in the interest of a business or the general public. 
This exemption does not apply to engines displayed for private use or 
any other purpose we determine is inappropriate for a display 
exemption.
    (c) You may operate the exempted engine, but only if we approve 
specific operation that is part of the display.
    (d) You may sell or lease the exempted engine only with our advance 
approval; you may not use it to generate revenue.
    (e) 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 1068.220 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (f) We may set other conditions for approval of this exemption.


Sec.  1068.225  What are the provisions for exempting engines for 
national security?

    (a) You are eligible for the exemption for national security only 
if you are a 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.  1068.230  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 
1068.230 FROM U.S. EMISSION STANDARDS AND RELATED REQUIREMENTS.''.


Sec.  1068.235  What are the provisions for exempting engines used 
solely for competition?

    (a) New engines you produce that are used solely for competition 
are generally excluded from emission standards. See the standard-
setting parts for specific provisions where applicable.
    (b) 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.
    (c) If you modify an engine under this exemption, you must destroy 
the original emission 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.


Sec.  1068.240  What are the provisions for exempting new replacement 
engines?

    (a) You are eligible for the exemption for new replacement engines 
only 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 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.
    (c) If the old engine was not certified to any emission standards 
under this chapter, clearly label the replacement engine with the 
following language:

    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 
reflecting when standards began to apply to engines of that size and 
type] IS A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.

    (d) If the old engine was certified to emission standards less 
stringent than those in effect when you produce the replacement engine, 
clearly label the replacement engine with the following language:

    THIS ENGINE DOES NOT COMPLY WITH CURRENT 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 
reflecting when the earlier tier of emission standards began to 
apply to the old engine] IS A VIOLATION OF FEDERAL LAW SUBJECT TO 
CIVIL PENALTY.


Sec.  1068.245  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 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.

[[Page 68436]]

    (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.
    (f) Add a permanent, legible label, written in block letters in 
English, to a readily visible part of each engine exempted under this 
section. 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.''.


Sec.  1068.250  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 of engines produced by other 
companies, show that you attempted to find a manufacturer capable of 
supplying complying products as soon as you became aware of the 
applicable requirements, but were unable to do so.
    (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 fully with the applicable 
regulations in this chapter.
    (3) Describe your efforts to raise capital to comply with 
regulations in this chapter (this may not apply for importers).
    (4) Identify the engineering and technical steps you have taken or 
plan to take to comply with regulations in this chapter.
    (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.
    (j) We will approve extensions of up to one year. We may review and 
revise an extension as reasonable under the circumstances.
    (k) Add a permanent, legible label, written in block letters in 
English, to a readily visible part of each engine exempted under this 
section. 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 1068.250 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.


Sec.  1068.255  What are the provisions for exempting engines for 
hardship for equipment manufacturers and secondary engine 
manufacturers?

    This section describes how, in unusual circumstances, we may exempt 
certain engines to prevent a hardship to an equipment manufacturer or a 
secondary engine manufacturer. This section does not apply to products 
that are subject to vehicle-based emission standards.
    (a) Equipment exemption. As an equipment manufacturer, you may ask 
for approval to produce exempted equipment for up to 12 months. We will 
generally limit this to the first year that new or revised emission 
standards apply. Send the Designated Officer a written request for an 
exemption before you are in violation. In your request, you must 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 under this paragraph (a) if you manufacture 
the engine you need for your own equipment or if complying engines are 
available from other engine manufacturers that could be used in your 
equipment, unless we allow it elsewhere in this chapter. We may impose 
other conditions, including provisions to recover the lost 
environmental benefit. In determining whether to grant the exemptions, 
we will consider all relevant factors, including the following:
    (1) The number of engines to be exempted.
    (2) The size of your company and your ability to endure the 
hardship.

[[Page 68437]]

    (3) The amount of time you had to redesign your equipment to 
accommodate a complying engine.
    (4) Whether there was any breach of contract by an engine supplier.
    (5) The potential for market disruption.
    (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 1068.255 
FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (c) Secondary engine manufacturers. As a secondary engine 
manufacturer, you may ask for approval to produce exempted engines 
under this section for up to one year. We may require you to certify 
your engines to compliance levels above the emission standards that 
apply. For example, if you need an exemption from a second tier of 
standards, we may require you to meet the standards that applied to 
earlier model years.
    (1) For the purpose of this section, a secondary engine 
manufacturer is a manufacturer that produces an engine by modifying an 
engine that is made by a different manufacturer for a different type of 
application. This includes, for example, automotive engines converted 
for use in industrial applications, or land-based engines converted for 
use in marine applications. This applies whether the secondary engine 
manufacturer is modifying a complete or partially complete engine and 
whether the engine was previously certified to emission standards or 
not. To be a secondary engine manufacturer, you must not be controlled 
by the manufacturer of the base engine (or by an entity that also 
controls the manufacturer of the base engine). In addition, equipment 
manufacturers that substantially modify engines become secondary engine 
manufacturers. For the purpose of this definition, ``substantially 
modify'' means changing an engine in a way that could change its 
emission characteristics.
    (2) The provisions in paragraph (a) of this section that apply to 
equipment manufacturers requesting an exemption apply equally to you, 
except that you may manufacture the engines. Before we can approve the 
exemption under this section, you must commit to a plan to make up the 
lost environmental benefit.
    (i) If you produce uncertified engines under this exemption, we 
will calculate the lost environmental benefit based on our best 
estimate of uncontrolled emission rates for your engines.
    (ii) If you produce engines under this exemption that are certified 
to a compliance level less stringent than the emission standards that 
would otherwise apply, we will calculate the lost environmental benefit 
based on the compliance level you select for your engines.
    (3) The labeling requirements in paragraph (b) of this section 
apply to your exempted engines; however, if you certify engines to 
specific compliance levels, state on the label the compliance levels 
that apply to each engine.

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) Complete the appropriate EPA declaration form before importing 
any nonconforming engine. These forms are available on the Internet at 
http://www.epa.gov/OMS/imports/ or by phone at 202-564-9660.
    (b) If we ask for it, 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.
    (c) We may ask for more information.
    (d) 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.
    (e) Make sure the engine meets any labeling requirements that 
apply.


Sec.  1068.310  What are the exclusions for imported engines?

    Emission standards do not apply to excluded engines that you 
import. If you show us that your engines qualify under one of the 
paragraphs of this section, we will approve your request to import 
excluded engines. You must have our approval to import an engine under 
paragraph (a) of this section. You may, but are not required to request 
our approval for the other exclusions in this section. The following 
engines are excluded:
    (a) Engines used solely for competition. Engines you use solely for 
competition are excluded. The standard-setting part may set special 
provisions for the manufacture, sale, or import of engines used solely 
for competition. Section 1068.101(b)(4) prohibits using these excluded 
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.  1068.30. Section 1068.101(b)(3) prohibits using these engines for 
other purposes.
    (c) Other engines. The standard-setting parts may exclude engines 
used in certain applications. For example, engines used in aircraft, 
underground mining, and hobby vehicles are generally excluded.

[[Page 68438]]

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 import engine under the 
national security exemption in Sec.  1068.225.
    (b) Manufacturer-owned engine exemption. You may import a 
manufacturer-owned engine, as described in Sec.  1068.215.
    (c) Replacement engine exemption. You may import a nonconforming 
replacement engine as described in Sec.  1068.240. 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.  
1068.245.
    (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.  1068.255.
    (f) Identical configuration exemption. You may import a 
nonconforming engine if it is identical to certified engines produced 
by the same manufacturer, 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 (g) of this section. 
During this period, 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.
    (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) Ancient engine exemption. If you are not the original engine 
manufacturer, you may import a nonconforming engine that is subject to 
a standard-setting part and 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. If 
the engine's rated power is not established, state the approximate 
power rating accurately enough to allow a detemination of which 
stanadards would otherwise apply.
    (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. Section 1068.330 specifies an 
additional temporary exemption allowing you to import certain engines 
you intend to sell or lease.
    (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.  
1068.210. 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.  1068.220. 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.  1068.230. You may operate 
the engine in the United States only as needed to prepare it for 
export. Label the engine as described in Sec.  1068.230.
    (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.

[[Page 68439]]

Sec.  1068.330  How do I import engines to modify for other 
applications?

    This section allows you to import engines in configurations 
different than their final configuration. This exemption is temporary, 
as described in paragraph (d) of this section.
    (a) This section applies in the following cases:
    (1) You import a partially complete engine with the intent to 
manufacture complete engines for which you have either a certificate of 
conformity or an exemption that allows you to sell completed engines.
    (2) You import an uncertified complete engine with the intent to 
modify it for installation in an application different than its 
otherwise intended application (for example, you import a land-based 
engine to modify it for a marine application). In this case, to qualify 
for an exemption under this section, you need either a certificate of 
conformity or an exemption that allows you to sell completed engines.
    (3) You import a complete or partially complete engine to modify 
for an application for which emission standards do not apply.
    (b) You may request this exemption in an application for 
certification. Otherwise, send your request to the Designated Officer. 
Your request must include:
    (1) The name of the supplier of the partially complete engine, or 
the original manufacturer of the complete engine.
    (2) A description of the certificate or exemption that will apply 
to the engines in the final configuration, or an explanation why a 
certificate or exemption is not needed.
    (3) A brief description of how and where final assembly will be 
completed.
    (4) An unconditional statement that the engines will comply with 
all applicable regulations in their final configuration.
    (c) 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.
    (d) These provisions are intended only to allow you to import 
engines in the specific circumstances identified in this section, so 
any exemption under this section expires when you complete the assembly 
of the engine in its final configuration. If the engine in its final 
configuration is subject to emission standards, then it must be covered 
by a certificate or a different exemption before you introduce it into 
commerce.


Sec.  1068.335  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 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 apply 
only 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,

[[Page 68440]]

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 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 specified in the standard-setting part 
for showing that your engines meet emission standards. The test order 
will give further testing instructions.
    (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 
within the engine family 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 fails an SEA?

    (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 for the SEA requirements 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 for the SEA requirements 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 subpart G of this part).


Sec.  1068.430  What happens if an engine family fails an SEA?

    (a) We may suspend your certificate of conformity for an engine 
family if it fails the SEA 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

[[Page 68441]]

part. We will not suspend a certificate until at least 15 days after 
the engine family fails the SEA. 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 subpart G of this part). 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 engines in the engine family still do 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 the SEA failure, 
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 showing that engines 
in the remedied engine family comply 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 an SEA 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:
    (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. Ourtesting 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:

[[Page 68442]]



                                      Table A-1.--Sampling Plan Code Letter
----------------------------------------------------------------------------------------------------------------
                                                                          Minimum number of tests      Maximum
              Projected engine family sales                Code letter ----------------------------   number of
                                                               \1\         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
                                                     -------------------------------------------------------------------------------------------------------------------------------------------
                       Stage a                        Pass             i>            i>            i>            i>            i>            i>            i>            i>            i>
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1...................................................
-----------------------------------------------------
2...................................................
-----------------------------------------------------
3...................................................            0
-----------------------------------------------------
4...................................................  ............  ............            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
-----------------------------------------------------
8...................................................            2             7             2             7             2             7             2             7             2             8
-----------------------------------------------------
9...................................................            3             7             2             8             2             8             2             8             2             8
-----------------------------------------------------
10..................................................            3             8             3             8             3             8             3             9             3             9
-----------------------------------------------------
11..................................................            4             8             3             8             3             9             3             9             3             9
-----------------------------------------------------
12..................................................            4             9             4             9             4             9             4            10             4            10
-----------------------------------------------------
13..................................................            5             9             5            10             4            10             4            10             4            10
-----------------------------------------------------
14..................................................            5            10             5            10             5            10             5            11             5            11
-----------------------------------------------------
15..................................................            6            10             6            11             5            11             5            11             5            11
-----------------------------------------------------
16..................................................            6            10             6            11             6            12             6            12             6            12
-----------------------------------------------------
17..................................................            7            10             7            12             6            12             6            12             6            12
-----------------------------------------------------
18..................................................            8            10             7            12             7            13             7            13             7            13
-----------------------------------------------------
19..................................................            8            10             8            13             8            13             7            13             7            13
-----------------------------------------------------
20..................................................            9            10             8            13             8            14             8            14             8            14
-----------------------------------------------------
21..................................................  ............  ............            9            14             9            14             8            14             8            14
-----------------------------------------------------
22..................................................  ............  ............           10            14             9            15             9            15             9            15
-----------------------------------------------------
23..................................................  ............  ............           10            15            10            15            10            15             9            15
-----------------------------------------------------
24..................................................  ............  ............           11            15            10            16            10            16            10            16
-----------------------------------------------------
25..................................................  ............  ............           11            16            11            16            11            16            11            16
-----------------------------------------------------
26..................................................  ............  ............           12            16            11            17            11            17            11            17
-----------------------------------------------------
27..................................................  ............  ............           12            17            12            17            12            17            12            17
-----------------------------------------------------
28..................................................  ............  ............           13            17            12            18            12            18            12            18
-----------------------------------------------------
29..................................................  ............  ............           14            17            13            18            13            18            13            19
-----------------------------------------------------
30..................................................  ............  ............           16            17            13            19            13            19            13            19
-----------------------------------------------------
31..................................................  ............  ............  ............  ............           14            19            14            19            14            20
-----------------------------------------------------
32..................................................  ............  ............  ............  ............           14            20            14            20            14            20

[[Page 68443]]

 
-----------------------------------------------------
33..................................................  ............  ............  ............  ............           15            20            15            20            15            21
-----------------------------------------------------
34..................................................  ............  ............  ............  ............           16            21            15            21            15            21
-----------------------------------------------------
35..................................................  ............  ............  ............  ............           16            21            16            21            16            22
-----------------------------------------------------
36..................................................  ............  ............  ............  ............           17            22            16            22            16            22
-----------------------------------------------------
37..................................................  ............  ............  ............  ............           17            22            17            22            17            23
-----------------------------------------------------
38..................................................  ............  ............  ............  ............           18            22            18            23            17            23
-----------------------------------------------------
39..................................................  ............  ............  ............  ............           18            22            18            23            18            24
-----------------------------------------------------
40..................................................  ............  ............  ............  ............           21            22            19            24            18            24
-----------------------------------------------------
41..................................................  ............  ............  ............  ............  ............  ............           19            24            19            25
-----------------------------------------------------
42..................................................  ............  ............  ............  ............  ............  ............           20            25            19            26
-----------------------------------------------------
43..................................................  ............  ............  ............  ............  ............  ............           20            25            20            26
-----------------------------------------------------
44..................................................  ............  ............  ............  ............  ............  ............           21            26            21            27
-----------------------------------------------------
45..................................................  ............  ............  ............  ............  ............  ............           21            27            21            27
-----------------------------------------------------
46..................................................  ............  ............  ............  ............  ............  ............           22            27            22            28
-----------------------------------------------------
47..................................................  ............  ............  ............  ............  ............  ............           22            27            22            28
-----------------------------------------------------
48..................................................  ............  ............  ............  ............  ............  ............           23            27            23            29
-----------------------------------------------------
49..................................................  ............  ............  ............  ............  ............  ............           23            27            23            29
-----------------------------------------------------
50..................................................  ............  ............  ............  ............  ............  ............           26            27            24            30
-----------------------------------------------------
51..................................................  ............  ............  ............  ............  ............  ............  ............  ............           24            30
-----------------------------------------------------
52..................................................  ............  ............  ............  ............  ............  ............  ............  ............           25            31
-----------------------------------------------------
53..................................................  ............  ............  ............  ............  ............  ............  ............  ............           25            31
-----------------------------------------------------
54..................................................  ............  ............  ............  ............  ............  ............  ............  ............           26            32
-----------------------------------------------------
55..................................................  ............  ............  ............  ............  ............  ............  ............  ............           26            32
-----------------------------------------------------
56..................................................  ............  ............  ............  ............  ............  ............  ............  ............           27            33
-----------------------------------------------------
57..................................................  ............  ............  ............  ............  ............  ............  ............  ............           27            33
-----------------------------------------------------
58..................................................  ............  ............  ............  ............  ............  ............  ............  ............           28            33
-----------------------------------------------------
59..................................................  ............  ............  ............  ............  ............  ............  ............  ............           28            33
-----------------------------------------------------
60                                                    ............  ............  ............  ............  ............  ............  ............  ............           32           33
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Stage refers to the cumulative number of engines tested.

Subpart F--Reporting Defects and Recalling Engines


Sec.  1068.501  How do I report engine defects?

    (a) General provisions. As an engine manufacturer, you must 
investigate in certain circumstances whether emission-related 
components are defective and send us reports as specified by this 
section.
    (1) The term emission-related component includes those components 
listed in Appendix I of this part. For the purposes of this section, 
complete engines shall also be considered an emissions-related 
component. It also includes factory settings of emission-related 
parameters and specifications listed in Appendix II of this part.
    (2) For the purposes of this section, defects do not include damage 
to emission-related components (or maladjustment of parameters) caused 
by owners improperly maintaining or abusing their engine.
    (3) You must track the information specified in paragraph (b)(1) of 
this section. You are not required to collect additional information 
other than that specified in paragraph (b)(1) of this section before 
reaching the threshold for an investigation specified in paragraph (e) 
of this section.
    (4) You may ask us to allow you to use alternate methods for 
tracking, investigating, reporting, and correcting emission-related 
defects. In your request, explain and demonstrate why you believe your 
alternate system will be at least as effective in tracking, 
identifying, investigating, evaluating, reporting, and correcting 
potential and actual emissions-related defects as the requirements in 
this section.
    (5) If we determine that emission-related defects result in a 
substantial number of properly maintained and used engines not 
conforming to the regulations of this chapter during their

[[Page 68444]]

useful life, we may order you to conduct a recall of your engines (see 
Sec.  1068.505).
    (6) Send the defect reports and status reports required by this 
section to the Designated Officer.
    (b) Investigation of possible defects. If the number of engines 
that possibly have a defect, as defined by paragraph (b)(1) of this 
section, exceed the thresholds specified in paragraph (e) of this 
section, you must conduct an investigation to determine if an emission-
related component is actually defective.
    (1) You must track warranty claims, parts shipments, and the other 
information specified in paragraph (b)(1)(iii) of this section. You 
must classify an engine as possibly having a defective component if any 
of the following is true:
    (i) A warranty claim is submitted for the component, whether this 
is under your emission-related warranty or any other warranty.
    (ii) You ship a replacement component other than for normally 
scheduled maintenance during the useful life of the engine.
    (iii) You receive any other information indicating the component 
may be defective, such as information from dealers or hot line 
complaints.
    (2) Your investigation must be prompt, thorough, consider all 
relevant information, follow scientific and engineering principles, and 
be designed to obtain all the information specified in paragraph (d) of 
this section.
    (3) Your investigation only needs to consider defects that occur 
within the useful life period, or within five years after the end of 
the model year, whichever is longer.
    (4) You must continue your investigation until you are able to 
obtain all the information specified for a defect report in paragraph 
(d) of this section. Send us an updated defect report anytime you have 
significant additional information.
    (5) If a component believed to be defective is used in additional 
engine families or model years, you must investigate whether the 
component or part is defective when used in these additional engine 
families or model years, and include these results as part of your 
defect report.
    (6) If your initial investigation concludes that the number of 
engines with a defect is fewer than the thresholds specified in 
paragraph (f) of this section, but other information becomes available 
that may show that the number of engines with a defect exceeds these 
thresholds, then you must resume your investigation. If you resume an 
investigation, you must include the information from the earlier 
investigation to determine whether to send a defect report.
    (c) Reporting defects. You must send us a defect report in either 
of the following cases:
    (1) Your investigation shows that the number of engines with a 
defect exceeds the thresholds specified in paragraph (f) of this 
section. Send the defect report within 15 days after the date you 
identify this number of defective engines.
    (2) You know a defective emission-related component exists in a 
number of engines that exceeds the thresholds specified in paragraph 
(f) of this section, regardless of how you obtain this information. 
Send the defect report within 15 days after you learn that the number 
of defects exceeds one of these thresholds.
    (d) Contents of a defect report. Include the following information 
in a defect report:
    (1) Your corporate name and a person to contact regarding this 
defect.
    (2) A description of the defect, including a summary of any 
engineering analyses and associated data, if available.
    (3) A description of the engines that may have the defect, 
including engine families, models, and range of production dates. Note 
that you must address all model years for the engines, not just the 
model year for which you triggered the reporting requirement.
    (4) An estimate of the number and percentage of each class or 
category of affected engines that have or may have the defect, and an 
explanation of how you determined this number.
    (5) An estimate of the defect's impact on emissions, with an 
explanation of how you calculated this estimate and a summary of any 
emission data demonstrating the impact of the defect, if available.
    (6) A description of your plan for addressing the defect or an 
explanation of your reasons for not believing the defects must be 
remedied.
    (e) Thresholds for conducting a defect investigation. Unless the 
standard-setting part specifies otherwise, you must begin a defect 
investigation based on the following threshold values:
    (1) For engine with rated power under 560 kW:
    (i) When the component is a catalytic converter (or other 
aftertreatment device), if the number of engines in an engine family 
that may have the defect exceeds 2 percent of the total number of 
engines in the engine family or 2,000 engines, whichever is less.
    (ii) When the emission-related component is anything but a 
catalytic converter (or other aftertreatment device), if the number of 
engines in an engine family that may have the defect exceeds 4 percent 
of the total number of engines in the engine family or 4,000 engines, 
whichever is less.
    (2) For engine with rated power greater than or equal to 560 kW, if 
the number of engines in an engine family that may have the defect 
exceeds 1 percent of the total number of engines in the engine family 
or 5 engines, whichever is greater.
    (f) Thresholds for filing a defect report. You must send a defect 
report based on the following threshold values:
    (1) For engine with rated power under 560 kW:
    (i) When the component is a catalytic converter (or other 
aftertreatment device), if the number of engines in an engine family 
that has the defect exceeds 0.125 percent of the total number of 
engines in the engine family or 125 engines, whichever is less.
    (ii) When the emission-related component is anything but a 
catalytic converter (or other aftertreatment device), if the number of 
engines in an engine family that has the defect exceeds 0.250 percent 
of the total number of engines in the engine family or 250 engines, 
whichever is less.
    (2) For engine with rated power greater than or equal to 560 kW, if 
the number of engines in an engine family that has the defect exceeds 
0.5 percent of the total number of engines in the engine family or 2 
engines, whichever is greater.
    (g) How to count defects. In most cases, you may track defects 
separately for each model year and engine family. For families with 
annual U.S.-directed production volumes under 5,000 engines, you may 
apply the percentage thresholds in paragraphs (e) and (f) of this 
section on the basis of multiple model years, for engines using the 
same emission-related components. To determine whether you exceed the 
investigation threshold in paragraph (e) of this section, count defects 
that you correct before they reach the ultimate purchaser. Do not count 
these corrected defects to determine whether you exceed the reporting 
threshold in paragraph (f) of this section.
    (h) Status reports. You must send us a mid-year or end-of-year 
status report if you concluded an investigation during the previous six 
months without filing a defect report or if you have an unresolved 
investigation at the end of the six-month period. Include the 
information specified in paragraph (c) of this section, or explain why 
the information is not relevant. Send these

[[Page 68445]]

status reports no later than June 30 and December 31 of each year.
    (i) Future production. If you identify a design or manufacturing 
defect that prevents engines from meeting the requirements of this 
part, you must correct the defect as soon as possible for any future 
production for engines in every family affected by the defect. This 
applies without regard to whether you are required to conduct a defect 
investigation or submit a defect report under this section.


Sec.  1068.505  How does the recall program work?

    (a) If we make a determination that a substantial number of 
properly maintained and used engines do not conform to the regulations 
of this chapter during their useful life, you must submit a plan to 
remedy the nonconformity of your engines. We will notify you of our 
determination 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 subpart G of this part).
    (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 hearing.
    (d) 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.
    (e) You may ask us to allow you to conduct your recall differently 
than specified in this subpart, consistent with section 207(c) of the 
Act.


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 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 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 or 
defacing 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 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 any adverse effects on its performance or driveability 
that would be caused by not repairing the engine.
    (7) Describe any adverse effects on the functions of other engine 
components that would be caused by not repairing the engine.

[[Page 68446]]

    (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?

    If we have made a determination that a substantial number of 
properly maintained and used engines do not conform to the regulations 
of this chapter during their useful life, you may not use a voluntary 
recall or other alternate means to meet your obligation to remedy the 
noncompliance. Thus, this section only applies where you learn that 
your engine family does not meet the requirements of this chapter and 
we have not made such a determination.
    (a) To do a voluntary recall under this section, 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 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--Hearings


Sec.  1068.601  What are the procedures for hearings?

    If we agree to hold a hearing related to our decision to order a 
recall under Sec.  1068.505, we will hold the hearing according to the 
provisions of 40 CFR 85.1807. For any other issues, you may request an 
informal hearing, as described in 40 CFR 86.1853-01.

Appendix I to Part 1068--Emission-Related Components

    This appendix specifies emission-related components that we 
refer to for describing such things as emission-related defects or 
requirements related to rebuilding engines.

I. Emission-related components include any engine parts related to 
the following systems:
    1. Air-induction system.
    2. Fuel system.
    3. Ignition system.
    4. Exhaust gas recirculation systems.
II. The following parts are also considered emission-related 
components:
    1. Aftertreatment devices.
    2. Crankcase ventilation valves.
    3. Sensors.
    4. Electronic control units.
III. Emission-related components also include any other part whose 
only purpose is to reduce emissions or whose failure will increase 
emissions without significantly degrading engine performance.
IV. We also consider the emission-control information label to be an 
emission-related component.

Appendix II to Part 1068--Emission-Related Parameters and 
Specifications

    This appendix specifies emission-related parameters and 
specifications that we refer to for describing such things as 
emission-related defects or requirements related to rebuilding 
engines.

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 top-dead center 
or bottom-dead center).
    b. Valve closing--intake exhaust (degrees from top-dead center 
or bottom-dead center).

[[Page 68447]]

    c. Valve overlap (degrees).
    5. Ports--two stroke engines (intake and/or exhaust).
    a. Flow area.
    b. Opening timing (degrees from top-dead center or bottom-dead 
center).
    c. Closing timing (degrees from top-dead center or bottom-dead 
center).
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.
    3. Temperature control system calibration.
    4. Maximum allowable inlet air restriction.
III. Fuel System.
    1. General.
    a. Engine idle speed.
    b. Engine idle mixture.
    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 for 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 for 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 for 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--thermostat calibration.
VI. Exhaust System--maximum allowable back pressure.
VII. System for Controlling Exhaust Emissions.
    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. System for Controlling Crankcase Emissions.
    1. Control parameters and calibrations.
    2. Valve calibrations.
IX. Auxiliary Emission Control Devices (AECD).
    1. Control parameters and calibrations.
    2. Component calibration(s).
X. System for Controlling Evaporative Emissions.
    1. Control parameters and calibrations.
    2. Fuel tank.
    a. Volume.
    b. Pressure and vacuum relief settings.
XI. Warning Systems Related to Emission Controls.
    1. Control parameters and calibrations.
    2. Component calibrations.

[FR Doc. 02-23801 Filed 11-7-02; 8:45 am]
BILLING CODE 6560-50-P