[Federal Register Volume 69, Number 7 (Monday, January 12, 2004)]
[Proposed Rules]
[Pages 1836-1837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-457]



  Federal Register / Vol. 69, No. 7 / Monday, January 12, 2004 / 
Proposed Rules  

[[Page 1836]]


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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 90

[AMS-FRL-7605-9]
RIN 2060-AL88


Amendments to the Phase 2 Requirements for Spark-Ignition Nonroad 
Engines at or Below 19 Kilowatts

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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

SUMMARY: EPA adopted Phase 2 requirements for spark-ignition nonroad 
handheld engines at or below 19 kilowatts in April 2000. The Phase 2 
requirements are being phased-in between 2002 and 2007. Based on 
initial experience with the Phase 2 program for handheld engines, we 
are proposing several amendments intended to provide additional 
compliance flexibility to engine manufacturers to smooth the transition 
to the Phase 2 requirements. The proposed amendments contain two 
revisions intended to increase flexibility in the averaging, banking, 
and trading program as it applies to handheld engines. First, the 
credit discounts and credit bonuses would be eliminated from the 
program. Second, manufacturers would be allowed to carry limited credit 
deficits during the phase-in period (through 2007) provided the 
deficits are made up within a set period of time. The proposed 
amendments also contain minor changes to the certification requirements 
intended to help manufacturers respond in a more efficient manner to 
unexpected variations in emission levels from production engines while 
still achieving the required emission objectives.
    We are publishing in the ``Rules and Regulations'' section of 
today's Federal Register a direct final rule that will amend the Phase 
2 requirements as noted above without further EPA action unless we 
receive adverse comment. We have explained our reasons for today's 
action in detail in the preamble to the direct final rule. The 
interested reader is encouraged to review that document for a full 
explanation of all provisions and an explanation of the data and 
rationale supporting these changes. If we receive adverse comment, we 
will withdraw the pertinent amendments, sections, or paragraphs of the 
direct final rule prior to its effective date, and will address all 
public comments in a subsequent final rule based on this proposed rule. 
We will not institute a second comment period on this action. Any 
parties interested in commenting must do so at this time.

DATES: Comments must be received by February 11, 2004. Request for a 
public hearing must be received by January 27, 2004. If we receive a 
request for a public hearing, we will publish information related to 
the timing and location of the hearing and the timing of a deadline for 
the submission of rebuttal and supplementary information.

ADDRESSES: Comments: All comments and materials relevant to this action 
should be submitted to Public Docket No. OAR-2003-0195 at the following 
address by the date indicated under DATES above. Materials relevant to 
this rulemaking are in Public Dockets A-96-55 and OAR-2003-0195 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 Air Docket by telephone at (202) 566-1742 
and by facsimile at (202) 566-1741. You may be charged a reasonable fee 
for photocopying docket materials, as provided in 40 CFR part 2.
    Comments may also be submitted electronically, by facsimile, or 
through hand delivery/courier. Follow the detailed instructions as 
provided in the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Philip Carlson, Assessment and 
Standards Division, e-mail [email protected], voice-mail (734) 
214-4636.

SUPPLEMENTARY INFORMATION: 

I. General Information

A. Regulated Entities

    This action will affect companies and persons that manufacture, 
sell, or import into the United States spark-ignition nonroad handheld 
engines at or below 19 kilowatts. Affected categories and entities 
include the following:

------------------------------------------------------------------------
                                        NAICS
               Category                  Code    Examples of potentially
                                         \a\        affected entities
------------------------------------------------------------------------
Industry.............................   333112  Lawn & Garden Equipment
                                                 Manufacturers.
Industry.............................   336618  Other Engine Equipment
                                                 Manufacturers.
------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS)

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

B. How Can I Get Copies of This Document and Send Comments?

    See the direct final rule EPA has published in the ``Rules and 
Regulations'' section of today's Federal Register for information about 
accessing these documents. The direct final rule also includes detailed 
instructions for sending comments to EPA.

II. Summary of Rule

    This proposed rule contains amendments to the Phase 2 requirements 
for spark-ignition nonroad engines at or below 19 kilowatts. The 
amendments have arisen from initial experience with the Phase 2 
requirements for handheld engines that began in 2002 and are intended 
to provide additional compliance flexibility to manufacturers as they 
complete the transition to Phase 2 technologies over the next few 
years. For additional discussion of these amendments, see the direct 
final rule EPA has published in the ``Rules and Regulations'' section 
of today's Federal Register. This proposed rule incorporates by 
reference all the reasoning, explanation, and regulatory text from the 
direct final rule.

III. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    This proposed rule is not a significant regulatory action as it 
merely amends previously adopted requirements for handheld engines to 
provide additional compliance flexibility to manufacturers in meeting 
the Phase 2 requirements. There are no new costs associated with this 
proposed rule. A Final Regulatory Support Document was prepared in 
connection with the original Phase 2 regulations for handheld engines 
as promulgated on April 25, 2000 (65 FR 24268) and we have no reason to 
believe that our analysis in the original rulemaking is inadequate. The 
relevant analysis is available in the docket for the Phase 2 rulemaking 
(A-96-55) and at the following internet address: http://www.epa.gov/otaq/equip-ld.htm. The original action was submitted to the Office of 
Management and Budget for review under Executive Order 12866. See the 
direct final rule EPA has published in the ``Rules and Regulations'' 
section of today's Federal

[[Page 1837]]

Register for a more extensive discussion of Executive Order 12866.

B. Paperwork Reduction Act

    This proposed rule does not include any new collection 
requirements. The information collection requirements (ICR) for the 
original Phase 2 rulemaking (65 FR 24268, April 25, 2000) were approved 
on September 21, 2001 by the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

C. Regulatory Flexibility Analysis

    The RFA generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice and comment 
rulemaking requirements under the Administrative Procedure Act or any 
other statute unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Small entities include small businesses, small organizations, and small 
governmental jurisdictions.
    For purposes of assessing the impacts of this rule on small 
entities, a small entity is defined as: (1) A small business with fewer 
than 1,000 employees, consistent with 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.
    After considering the economic impacts of today's proposed rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. This 
proposed rule will not impose any new requirements on small entities. 
This proposed rule merely amends the previously adopted Phase 2 
requirements for handheld engines to provide additional compliance 
flexibility to engine manufacturers, including small entities, and 
would relieve regulatory burden.

D. Unfunded Mandates Reform Act

    This proposed 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 no federal mandates that may result in expenditures of more 
than $100 million to the private sector in any single year. This 
proposed rule merely amends the previously adopted Phase 2 requirements 
for handheld engines to provide additional compliance flexibility to 
engine manufacturers. The requirements of UMRA therefore do not apply 
to this action. See the direct final rule EPA has published in the 
``Rules and Regulations'' section of today's Federal Register for a 
more extensive discussion of UMRA policy.

E. Executive Order 13132: Federalism

    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. This proposed rule merely amends 
the previously adopted Phase 2 requirements for handheld engines to 
provide additional compliance flexibility to engine manufacturers. See 
the direct final rule EPA has published in the ``Rules and 
Regulations'' section of today's Federal Register for a more extensive 
discussion of Executive Order 13132.

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

    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. 
This rule does 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. This proposed rule merely 
amends the previously adopted Phase 2 requirements for handheld engines 
to provide additional compliance flexibility to engine manufacturers. 
Thus, Executive Order 13175 does not apply to this rule. See the direct 
final rule EPA has published in the ``Rules and Regulations'' section 
of today's Federal Register for a more extensive discussion of 
Executive Order 13175.

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

    This rule is not subject to the Executive Order because it is not 
economically significant, and does not involve decisions on 
environmental health or safety risks that may disproportionately affect 
children. See the direct final rule EPA has published in the ``Rules 
and Regulations'' section of today's Federal Register for a more 
extensive discussion of Executive Order 13045.

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. This 
proposed rule merely amends the previously adopted Phase 2 requirements 
for handheld engines to provide additional compliance flexibility to 
engine manufacturers.

I. National Technology Transfer and Advancement Act

    This rule does not involve technical standards. This proposed rule 
merely amends the previously adopted Phase 2 requirements for handheld 
engines to provide additional compliance flexibility to engine 
manufacturers. Thus, we have determined that the requirements of the 
NTTAA do not apply. See the direct final rule EPA has published in the 
``Rules and Regulations'' section of today's Federal Register for a 
more extensive discussion of NTTAA policy.

J. Statutory Authority

    The statutory authority for this action comes from sections 202, 
203, 204, 205, 206, 207, 208, 209, 213, 215, 216, and 301(a) of the 
Clean Air Act as amended (42 U.S.C. 7521, 7522, 7523, 7524, 7525, 7541, 
7542, 7543, 7547, 7549, 7550, and 7601(a)). This action is a rulemaking 
subject to the provisions of Clean Air Act section 307(d). See 42 
U.S.C. 7606(d)(1).

List of Subjects in 40 CFR Part 90

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

    Dated: December 23, 2003.
Michael O. Leavitt,
Administrator.
[FR Doc. 04-457 Filed 1-9-04; 8:45 am]
BILLING CODE 6560-50-P