[Federal Register Volume 70, Number 131 (Monday, July 11, 2005)]
[Proposed Rules]
[Pages 39870-39904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13338]



[[Page 39869]]

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Part II





Environmental Protection Agency





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40 CFR Parts 60, 85, 89, et al.



Standards of Performance for Stationary Compression Ignition Internal 
Combustion Engines; Proposed Rule

  Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / 
Proposed Rules  

[[Page 39870]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 60, 85, 89, 94, 1039, 1065 and 1068

[OAR-2005-0029, FRL-7934-4]
RIN 2060-AM82


Standards of Performance for Stationary Compression Ignition 
Internal Combustion Engines

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: This action proposes standards of performance for stationary 
compression ignition (CI) internal combustion engines (ICE). These 
standards implement section 111(b) of the Clean Air Act (CAA) and are 
based on the Administrator's determination that stationary CI ICE 
cause, or contribute significantly to, air pollution that may 
reasonably be anticipated to endanger public health or welfare. The 
intended effect of the standards is to require all new, modified, and 
reconstructed stationary CI ICE to use the best demonstrated system of 
continuous emission reduction, considering costs, non-air quality 
health, and environmental and energy impacts, not just with add-on 
controls, but also by eliminating or reducing the formation of these 
pollutants. The proposed standards would reduce nitrogen oxides 
(NOX) by an estimated 38,000 tons per year (tpy), 
particulate matter (PM) by an estimated 3,000 tpy, sulfur dioxide 
(SO2) by an estimated 9,000 tpy, non-methane hydrocarbons 
(NMHC) by an estimated 600 tpy, and carbon monoxide (CO) by an 
estimated 18,000 tpy in the year 2015.

DATES: Comments. Submit comments on or before September 9, 2005, or 30 
days after date of public hearing if later.
    Public Hearing. If anyone contacts us requesting to speak at a 
public hearing by August 1, 2005, a public hearing will be held on 
August 23, 2005.

ADDRESSES: Submit your comments, identified by Docket ID No. OAR-2005-
0029, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the on-line instructions for submitting comments.
     Agency Web site: http://www.epa.gov/edocket. EDOCKET, 
EPA's electronic public docket and comment system, is EPA's preferred 
method for receiving comments. Follow the on-line instructions for 
submitting comments.
     E-mail: Send your comments via electronic mail to [email protected], Attention Docket ID No. OAR-2005-0029.
     Fax: Fax your comments to (202) 566-1741, Attention Docket 
ID No. OAR-2005-0029.
     Mail: Send your comments to: EPA Docket Center (EPA/DC), 
EPA, Mailcode 6102T, 1200 Pennsylvania Ave., NW., Washington, DC 20460, 
Attention Docket ID No. OAR-2005-0029. Please include a total of two 
copies. The EPA requests a separate copy also be sent to the contact 
person identified below (see FOR FURTHER INFORMATION CONTACT). In 
addition, please mail a copy of your comments on the information 
collection provisions to the Office of Information and Regulatory 
Affairs, Office of Management and Budget (OMB), Attn: Desk Officer for 
EPA, 725 17th St., NW., Washington, DC 20503.
     Hand Delivery: Deliver your comments to: EPA Docket Center 
(EPA/DC), EPA West Building, Room B108, 1301 Constitution Ave., NW., 
Washington DC, 20460, Attention Docket ID No. OAR-2005-0029. Such 
deliveries are accepted only during the normal hours of operation (8:30 
a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays), 
and special arrangements should be made for deliveries of boxed 
information.
    Instructions: Direct your comments to Docket ID No. OAR-2005-0029. 
EPA's policy is that all comments received will be included in the 
public docket without change and may be made available online at http://www.epa.gov/edocket, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through EDOCKET, regulations.gov, or e-
mail. The EPA EDOCKET and the Federal regulations.gov Web sites are 
``anonymous access'' systems, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through EDOCKET or regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit EDOCKET on-line or see the Federal Register of May 31, 
2002 (67 FR 38102).
    Public Hearing: If a public hearing is held, it will be held at 
EPA's Campus located at 109 T.W. Alexander Drive in Research Triangle 
Park, NC or alternate site nearby.
    Docket: All documents in the docket are listed in the EDOCKET index 
at http://www.epa.gov/edocket. We also rely on documents in Docket ID 
No. OAR-2003-0012 and incorporate that docket into the record for this 
proposed rule. Although listed in the index, some information is not 
publicly available, i.e., CBI or other information whose disclosure is 
restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the Internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available either electronically in EDOCKET or in hard copy at the 
Docket, EPA/DC, EPA West, Room B102, 1301 Constitution Ave., NW., 
Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 
p.m., Monday through Friday, excluding legal holidays. The telephone 
number for the Public Reading Room is (202) 566-1744, and the telephone 
number for the EPA Docket Center is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Mr. Sims Roy, Combustion Group, 
Emission Standards Division (MD-C439-01), U.S. EPA, Research Triangle 
Park, North Carolina 27711; telephone number (919) 541-5263; facsimile 
number (919) 541-5450; electronic mail address ``[email protected].''

SUPPLEMENTARY INFORMATION: Organization of This Document. The following 
outline is provided to aid in locating information in the preamble.

I. General Information
    A. Does this action apply to me?
    B. What should I consider as I prepare my comments for EPA?
II. Background
III. Summary of the Proposed Rule
    A. What is the source category regulated by the proposed rule?
    B. What are the pollutants regulated by the proposed rule?
    C. What is the best demonstrated technology?
    D. What sources are subject to the proposed rule?
    E. What are the proposed standards?
    F. What are the requirements for sources that are modified or 
reconstructed?

[[Page 39871]]

    G. What are the requirements for demonstrating compliance?
    H. What are the monitoring requirements?
    I. What are the reporting and recordkeeping requirements?
IV. Rationale for Proposed Rule
    A. How did EPA determine the source category for the proposed 
rule?
    B. How did EPA select the pollutants to be regulated?
    C. How did EPA determine the best demonstrated technology?
    D. How did EPA select the affected facility for the proposed 
rule?
    E. How did EPA select the proposed standards?
    F. What are the considerations for modification and 
reconstruction?
    G. How did EPA determine the compliance requirements for the 
proposed rule?
    H. How did EPA select the methods for performance testing?
    I. How were the reporting and recordkeeping requirements 
selected?
V. Summary of Environmental, Energy and Economic Impacts
    A. What are the air quality impacts?
    B. What are the cost impacts?
    C. What are the economic impacts?
    D. What are the non-air health, environmental and energy 
impacts?
VI. Solicitation of Comments and Public Participation
VII. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act of 1995
    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 Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act

I. General Information

A. Does This Action Apply to Me?

    Regulated Entities. Categories and entities potentially regulated 
by this action include:

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                                                          Examples of
           Category              SIC \1\   NAICS \2\  regulated entities
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Any manufacturer that produces       4911       2211  Electric power
 or any industry using a                               generation,
 stationary internal                                   transmission, or
 combustion engine as defined                          distribution.
 in the proposed rule.
                                     8062     622110  Medical and
                                                       surgical
                                                       hospitals.
                                     3621     335312  Motor and
                                                       Generator
                                                       Manufacturing.
                                     3561      33391  Pump and
                                                       Compressor
                                                       Manufacturing.
                                     3548     333992  Welding and
                                                       Soldering
                                                       Equipment
                                                       Manufacturing.
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\1\ Standard Industrial Classification.
\2\ North American Industry Classification System.

This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. To determine whether your engine is regulated by this action, 
you should examine the applicability criteria in Sec.  60.4200 of the 
proposed rule. If you have any questions regarding the applicability of 
this action to a particular entity, consult the person listed in the 
preceding FOR FURTHER INFORMATION CONTACT section.

B. What Should I Consider as I Prepare My Comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through 
EDOCKET, regulations.gov or e-mail. Send or deliver information 
identified as CBI to only the following address: Mr. Sims Roy, c/o 
OAQPS Document Control Officer (Room C404-02), U.S. EPA, Research 
Triangle Park, NC 27711, Attention Docket ID No. OAR-2005-0029. Clearly 
mark the part or all of the information that you claim to be CBI. For 
CBI information in a disk or CD ROM that you mail to EPA, mark the 
outside of the disk or CD ROM as CBI and then identify electronically 
within the disk or CD ROM the specific information that is claimed as 
CBI. In addition to one complete version of the comment that includes 
information claimed as CBI, a copy of the comment that does not contain 
the information claimed as CBI must be submitted for inclusion in the 
public docket. Information so marked will not be disclosed except in 
accordance with procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
    a. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    b. Follow directions. The EPA may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    c. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    d. Describe any assumptions and provide any technical information 
and/or data that you used.
    e. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    f. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    g. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    h. Make sure to submit your comments by the comment period deadline 
identified.
    Docket. The docket number for the proposed NSPS is Docket ID No. 
OAR-2005-0029.
    World Wide Web (WWW). In addition to being available in the docket, 
an electronic copy of the proposed rule is also available on the WWW 
through the Technology Transfer Network Web site (TTN Web). Following 
signature, EPA will post a copy of the proposed rule on the TTN's 
policy and guidance page for newly proposed or promulgated rules at 
http://www.epa.gov/ttn/oarpg. The TTN provides information and 
technology exchange in various areas of air pollution control.

II. Background

    This action proposes new source performance standards (NSPS) that 
would apply to new stationary CI ICE. New source performance standards 
implement section 111(b) of the CAA, and are issued for categories of 
sources which cause, or contribute significantly to, air pollution 
which may reasonably be anticipated to endanger public health or 
welfare. The standards apply to new stationary sources of emissions, 
i.e., sources whose construction, reconstruction, or modification 
begins after a standard for them is proposed. An NSPS requires these 
sources to control emissions to the level achievable by best 
demonstrated technology (BDT), considering costs and any non-air 
quality health and environmental impacts and energy requirements.

[[Page 39872]]

III. Summary of the Proposed Rule

A. What Is the Source Category Regulated by the Proposed Rule?

    Today's proposed standards apply to stationary CI ICE. A stationary 
internal combustion engine means any internal combustion engine, except 
combustion turbines, that converts heat energy into mechanical work and 
is not mobile. Stationary ICE differ from mobile ICE in that a 
stationary internal combustion engine is not a nonroad engine as 
defined at 40 CFR 1068.30, and is not used to propel a motor vehicle or 
a vehicle used solely for competition. Stationary ICE include 
reciprocating ICE, rotary ICE, and other ICE, except combustion 
turbines. A CI engine means a type of stationary internal combustion 
engine that is not a spark ignition (SI) engine. An SI engine means a 
gasoline, natural gas, or liquefied petroleum gas 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. 
Dual-fuel engines in which a liquid fuel (typically diesel fuel) is 
used for CI and gaseous fuel (typically natural gas) is used as the 
primary fuel at an annual average ratio of less than 2 parts diesel 
fuel to 100 parts total fuel on an energy equivalent basis are SI 
engines.

B. What Are the Pollutants Regulated by the Proposed Rule?

    The pollutants to be regulated by the proposed standards are 
NOX, PM, CO, and NMHC. Emissions of sulfur oxides 
(SOX) will also be reduced through the use of lower sulfur 
fuel. Smoke emissions will also be reduced through the implementation 
of the proposed standards. Emissions of hazardous air pollutants (HAP) 
from these engines have been, or will be, regulated in separate 
rulemakings promulgated under section 112.\1\
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    \1\ Emissions of HAP from stationary reciprocating internal 
combustion engines (RICE) located at major sources were the subject 
of a rule published on June 15, 2004 (69 FR 33473). Emissions of HAP 
from other stationary RICE will be the subject of another rulemaking 
that will be promulgated no later than December 20, 2007.
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C. What Is the Best Demonstrated Technology?

1. Background
    Section 111 of the CAA states that a standard of performance 
``means a standard * * * which reflects the degree of emission 
limitation achievable through application of the best system of 
emission reduction which (taking into account the cost of achieving 
such reduction and any nonair quality health and environmental impact 
and energy requirements) the Administrator determines has been 
adequately demonstrated.''
    The following sections provide additional information by 
identifying specific technologies (referred to hereafter as ``BDT'') 
that EPA anticipates to be used to meet the NSPS. It must be noted, 
however, that EPA's proposal is that the best system of emissions 
reduction that has been adequately demonstrated is a set of emissions 
standards, including an averaging, banking and trading program, that 
allows for the use of other potential technologies that meet or exceed 
the standards.
2. Non-Emergency Stationary CI ICE <10 Liters per Cylinder
    The EPA expects there will be few, if any, stationary CI ICE less 
than 50 horsepower (HP). Nevertheless, EPA has established emission 
standards for these engines for the potential few engines less than 50 
HP that may be stationary CI ICE.
    For non-emergency engines less than 25 HP, the technologies that 
are the basis of the proposed standards are expected to be the same as 
the technologies that are the basis for the nonroad diesel engine 
standards in this size range. The basis of the proposed PM standards 
for these engines is a variety of engine-based technologies including 
combustion optimization and different fuel injection strategies. The 
EPA expects that manufacturers of smaller engines may also utilize 
oxidation catalyst control for PM in order to meet the Tier 4 standard 
for nonroad diesel engines. The EPA expects that manufacturers of 
stationary CI ICE less than 25 HP will employ engine-based 
technologies, to meet the proposed NOX for engines less than 
25 HP include advanced in-cylinder technologies and electronic fuel 
systems.
    For non-emergency engines greater than or equal to 25 HP with a 
displacement of less than 10 liters per cylinder, the technology that 
is the basis of the proposed PM standards is catalyzed diesel 
particulate filters (CDPF) used in conjunction with ultra low sulfur 
diesel (ULSD) fuel. The standards for PM that are based on the use of 
CDPF and ULSD start as early as 2011 for some engines, but the schedule 
varies depending on the size of the engine. The CDPF technology is 
capable of reducing PM, CO, and NMHC emissions from stationary CI ICE 
by at least 90 percent. The technology basis of the proposed CO and 
NMHC standards is also CDPF. The technology is currently available but 
requires ULSD in order to achieve these levels of reductions. 
Furthermore, engine manufacturers will require time to incorporate the 
technology on all of their engines. Taking into account when ULSD fuel 
will be fully available and allowing manufacturers time to incorporate 
CDPF technology on their stationary engines, EPA believes that the 
implementation schedule already promulgated for nonroad diesel engines 
is appropriate for the majority of stationary CI ICE as well.
    Prior to the implementation of standards based on the use of CDPF, 
new stationary CI ICE engines will be required to meet standards based 
on the use of technology currently required for nonroad engines. Engine 
manufacturers would be expected to use a variety of engine technologies 
such as combustion optimization and advanced fuel injection controls to 
reduce emissions of PM until ULSD fuel is available in sufficient 
quantities nationwide.
    For NOX emissions from non-emergency engines greater 
than or equal to 75 HP and less than or equal to 750 HP with a 
displacement of less than 10 liters per cylinder, and non-emergency 
generator set (genset) engines greater than 750 HP with a displacement 
of less than 10 liters per cylinder, the technology that is the basis 
of the proposed NOX standards is NOX adsorber. 
The NOX adsorber technology is expected to be able to 
achieve NOX reductions of 90 percent or more when applied to 
stationary CI ICE. The NOX adsorber technology, which has 
been demonstrated in laboratory situations, is currently being 
developed for highway and nonroad engines, and it is expected to be 
available for nonroad and stationary engines approximately in the year 
2011. As with the implementation schedule for CDPF discussed above, EPA 
believes that, taking into account when ULSD fuel will be fully 
available and allowing manufacturers time to incorporate NOX 
adsorber technology on their stationary engines, the implementation 
schedule already promulgated for nonroad diesel engines is appropriate 
for the majority of stationary CI ICE as well.
    For non-emergency engines greater than 750 HP with a displacement 
of less than 10 liters per cylinder that are not genset engines, the 
technologies that are the basis of the proposed NOX 
standards are improved combustion systems and engine-based 
NOX control technologies. For the nonroad diesel engine 
rule, EPA decided to defer a decision on setting

[[Page 39873]]

add-on control based emission standards for NOX for these 
engines to allow time to resolve issues involved with applying 
NOX control technologies to these engines. For stationary CI 
ICE, EPA believes there may be technologies to allow more stringent 
standards for engines greater than 750 HP with a displacement of less 
than 10 liters per cylinder that are not generator sets that could be 
based on the use of aftertreatment-based controls. The EPA is 
requesting comments on whether it should have the same BDT for 
NOX for all non-emergency stationary CI engines greater than 
750 HP with a displacement of less than 10 liters per cylinder.
    Both CDPF and NOX adsorbers require the use of ULSD fuel 
to achieve maximum levels of emission reduction. The EPA recently 
promulgated regulations that require sulfur levels for nonroad diesel 
fuel to be reduced to 500 parts per million (ppm) beginning in late 
2007 and 15 ppm beginning in late 2010.\2\ Based on an analysis of ULSD 
availability EPA conducted for stationary CI ICE affected by the NSPS, 
the EPA believes that ULSD will be available in sufficient supply for 
stationary CI engines affected by the proposed rule. For information on 
EPA's fuel availability analysis, please refer to the docket for the 
proposed rule. For this reason, EPA is proposing that owners and 
operators of stationary CI engines affected by the proposed rule that 
use diesel fuel use only ULSD fuel beginning October 1, 2010. Owners 
and operators that use diesel fuel will be required to only use diesel 
fuel with a sulfur content of 500 ppm or less beginning October 1, 
2007. This is consistent with fuel levels required by the nonroad rule 
for diesel engines. The use of lower sulfur diesel fuel will reduce 
emissions of SO2 and the resulting sulfate PM to the 
atmosphere.
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    \2\ The deadlines are different for refineries, wholesalers, 
retailers, and end users.
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    Prior to the commercial availability of ULSD fuel and 
NOX adsorber technology, non-emergency stationary CI engines 
are expected to use the technologies currently required for nonroad 
engines. The EPA looked at other control techniques such as selective 
catalytic reduction (SCR) for non-emergency engines greater than or 
equal to 75 HP with a displacement of less than 10 liters per cylinder 
that could reduce emissions until ULSD fuel becomes available in 
sufficient quantities for stationary engines and before NOX 
adsorbers are expected to be commercially available for use. No other 
add-on control techniques were identified as BDT. Engine manufacturers 
are currently in the process of developing a variety of engine 
technologies, such as cooled exhaust gas recirculation (EGR), to meet 
the Tier 3 nonroad emission standards for NOX, which are 
phased in starting from 2006 to 2008. These engine technologies are 
determined to be the BDT for stationary CI ICE with a displacement of 
less than 10 liters per cylinder in the Tier 3 timeframe. Engine 
manufacturers have developed engine technologies such as combustion 
optimization and advanced fuel injection controls to meet EPA's Tier 2 
limits for nonroad diesel engines. These engine technologies are also 
being applied to stationary engines.\3\ The EPA believes that these 
technologies are the BDT for the time frame of the Tier 2 standards for 
these engines, except as discussed below for engines manufactured prior 
to the 2007 model year.
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    \3\ An exception to this is stationary engines above 3000 HP 
with a displacement of less than 10 liters per cylinder. These 
engines are not as closely related to nonroad engines of that 
horsepower range as are other stationary engines, and have not 
necessarily been manufactured using similar technologies. Therefore, 
we believe that it will take longer for these engines to be able to 
meet standards equivalent to nonroad engines. We are therefore 
requiring Tier 1 standards (as opposed to Tier 2 standards, which 
nonroad engines of that HP will have to meet) for these engines 
until the 2011 model year.
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    For NOX emissions from engines below 75 HP, EPA has 
determined that the BDT is the variety of engine technologies currently 
being developed and used by engine manufacturers to reduce 
NOX. Examples include cooled EGR, uncooled EGR, and advanced 
in-cylinder technologies relying on electronic fuel systems and 
turbocharging. The EPA does not believe that the catalyst-based 
NOX technologies have matured to a state where we can have 
substantial assurance that such technologies will provide a path for 
compliance for engines in this power category and of this displacement.

3. Pre-2007 Model Year Stationary CI ICE

    The proposed standards require engine manufacturers to meet the 
Tier 2 through Tier 4 nonroad diesel engine standards for their 2007 
model year and later non-emergency stationary CI ICE less than 10 
liters per cylinder. Stationary ICE are almost all manufactured 
products that are designed in advance that cannot change design without 
some lead-time. Given that stationary CI ICE are similar to nonroad 
diesel engines and their emission control strategies would be similar, 
the EPA believes that 18 months from the date of proposal is 
appropriate lead-time for engine manufacturers to meet standards equal 
to those in effect (or coming into effect) for nonroad engines. 
However, because stationary CI ICE were not subject to these emissions 
standards until this rule, the EPA cannot immediately require that 
these engines produce emissions on the same level required for nonroad 
engines. Sufficient lead-time must be provided to allow engine 
manufacturers to modify their production to incorporate these emission 
reduction strategies in all of their stationary CI ICE in order to meet 
the proposed emission standards.
    For pre-2007 model year stationary CI ICE, the BDT was determined 
to be the nonroad Tier 1 emission levels. As explained, engine 
manufacturers will require time to design their engines and incorporate 
the control technologies that are the basis for nonroad diesel engine 
Tiers 2 through 4. Manufacturers will also need time to generate and 
provide the requisite data and other information needed to insure that 
their engines meet these standards. Manufacturers would therefore not 
necessarily be able to meet the Tier 2, Tier 3, and Tier 4 emission 
standards for stationary CI ICE immediately after the rule goes into 
effect. The BDT for these pre-2007 model year engines is therefore the 
Tier 1 standards for nonroad engines, which do not require as 
significant a revision to manufacturing processes as the more stringent 
regulations and which are currently being met by many stationary 
engines. Furthermore, EPA is not requiring engines manufactured prior 
to April 1, 2006 to meet the Tier 1 standards, given that even the less 
substantial requirements needed to meet the Tier 1 standards would be 
extremely difficult to achieve in the immediate near term for engines 
that had not previously been manufactured to meet those standards.
4. Non-Emergency Stationary CI ICE >=10 and <30 Liters per Cylinder
    For non-emergency stationary CI ICE with a displacement of greater 
than or equal to 10 liters per cylinder and less than 30 liters per 
cylinder, the technology that is the basis of the proposed standards is 
the same technology used by manufacturers of new marine CI engines to 
meet the emission standards for those engines. Engines with a 
displacement in this range are generally not used in land-based nonroad 
applications and are significantly different in design from land-based 
nonroad engines. Those engines in this displacement range that are 
currently certified would generally be certified to marine standards, 
not

[[Page 39874]]

land based nonroad standards. The EPA believes these engines are 
similar in design to marine CI engines and is therefore basing the 
proposed standards for non-emergency stationary CI ICE with a 
displacement between 10 and 30 liters per cylinder on the technologies 
that are used to meet the emission standards for marine CI engines. 
These technologies include timing retard, advanced fuel injection 
systems, optimized nozzle geometry, and possibly through rate shaping.
5. Stationary CI ICE With a Displacement >=30 Liters per Cylinder
    For non-emergency stationary CI ICE with a displacement of greater 
than or equal to 30 liters per cylinder, the technology that is the 
basis of the proposed NOX standards is SCR. This technology 
is capable of reducing NOX emissions by 90 percent or more, 
is currently available, and is a well-proven control technology for 
larger stationary CI engines.\4\ The technology that is the basis of 
the proposed PM standards for non-emergency stationary CI ICE with a 
displacement of greater than or equal to 30 liters per cylinder is 
electrostatic precipitators (ESP). The technology is currently 
available and is capable of reducing PM emissions by 60 percent or more 
from stationary CI ICE.
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    \4\ SCR is also a proven technology for smaller engines and may 
be used to meet the NOX standards for those engines. 
However, it was not determined to be the BDT for smaller engines due 
to the expected availability of NOX adsorber, which 
achieves similar reductions to SCR at a lower cost.
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6. Low Sulfur Diesel for All Stationary CI ICE
    For all stationary CI ICE, the use of lower sulfur fuel was 
determined to be the BDT for SOX. Reducing the sulfur 
content in the diesel fuel directly affects the engine-out levels of 
SOX emissions. As mentioned, the proposed rule requires that 
owners and operators that use diesel fuel begin using 500 ppm sulfur 
diesel fuel starting October 1, 2007 and 15 ppm sulfur diesel fuel 
starting October 1, 2010. These fuel requirements are consistent with 
the requirements of the nonroad diesel rule.
7. Emergency Stationary CI ICE
    The EPA also evaluated the BDT for emergency stationary CI ICE. An 
emergency stationary internal combustion engine is defined as any 
stationary internal combustion engine whose operation is limited to 
emergency situations and required testing. Examples include stationary 
ICE used to produce power for critical networks or equipment (including 
power supplied to portions of a facility) when electric power from the 
local utility is interrupted, or stationary ICE used to pump water in 
the case of fire or flood, etc. Examples also include stationary ICE 
used during Federal or State declared disasters and emergencies, and 
simulations of emergencies by Federal, State, or local governments. 
Emergency stationary ICE are allowed to be operated for the purpose of 
maintenance checks and readiness testing, provided that the tests are 
recommended by the manufacturer, the vendor, or the insurance company 
associated with the engine. Required testing of such units is limited 
to 30 hours per year, and owners and operators are required to keep 
records of this information. There is no time limit on the use of 
emergency stationary ICE in emergency situations. The use of add-on 
controls such as CDPF, oxidation catalyst, and NOX adsorber 
could not be justified as BDT due to the cost of the technology 
relative to the emission reduction that would be obtained. This is 
discussed in more detail later in this preamble and in the documents 
supporting the proposal. The EPA, therefore, determined that the engine 
technologies developed by engine manufacturers to meet the Tier 2 and 
Tier 3 nonroad diesel engine standards, and those Tier 4 standards that 
do not require aftertreatment, are the BDT for 2007 model year and 
later emergency stationary CI ICE with a displacement of less than 10 
liters per cylinder. These technologies have been discussed previously 
in this section. As mentioned earlier, stationary CI ICE with a 
displacement between 10 and 30 liters per cylinder are similar to 
marine CI engines, and EPA believes it is appropriate to rely on the 
technologies used to meet Tier 2 emission standards for marine CI 
engines. Therefore, for 2007 model year and later emergency stationary 
CI ICE with a displacement of greater than or equal to 10 and less than 
30 liters per cylinder, the basis for the BDT are the technologies used 
to meet Tier 2 emission standards for marine CI engines.

D. What Sources Are Subject to the Proposed Rule?

    The affected source for the CI internal combustion engine NSPS is 
each stationary CI internal combustion engine whose construction, 
modification or reconstruction commenced after the date the proposed 
rule is published in the Federal Register. The date of construction is 
the date the engine is ordered by the owner or operator. As discussed 
earlier, we are proposing that stationary CI ICE manufactured prior to 
April 1, 2006 that are not fire pump engines will not be subject to 
Tier 1 standards, unless they are modified or reconstructed after the 
date of proposal. Stationary fire pump CI ICE manufactured prior to 
July 1, 2006 will not be subject to Tier 1 standards, unless they are 
modified or reconstructed after the date of proposal.

E. What Are the Proposed Standards?

1. Overview
    The format of the proposed standard is an output-based emission 
standard for PM, NOX, CO, and NMHC in units of emissions 
mass per unit work performed (grams per kilowatt-hour (g/KW-hr)) and 
smoke standards as a percentage. The emission standards are generally 
modeled after EPA's standards for nonroad and marine diesel engines. 
The nonroad diesel engine standards are phased in over several years 
and have Tiers with increasing levels of stringency. The engine model 
year in which the Tiers take effect varies for different size ranges of 
engines. The Tier 1 standards were phased in for nonroad diesel engines 
beginning in 1996 to 2000. The Tier 2 nonroad CI standards are phased 
in starting from 2001 to 2006, and the Tier 3 limits are phased in 
starting from 2006 to 2008. The Tier 3 limits apply for engines greater 
than or equal to 50 and less than or equal to 750 HP only. Tier 4 
limits for nonroad engines are phased in beginning in 2008.
2. Proposed Standards for Engine Manufacturers
    Engine manufacturers must meet the emission standards of the 
proposed rule during the useful life of the engine. a. 2007 Model Year 
and Later Non-Emergency Stationary CI ICE <=3,000 HP and With a 
Displacement <10 Liters per Cylinder. The proposed standards require 
that engine manufacturers certify their 2007 model year and later non-
emergency stationary CI ICE with a maximum engine power less than or 
equal to 3,000 HP and a displacement of less than 10 liters per 
cylinder to the Tier 2 through Tier 4 nonroad diesel engine standards 
as shown in table 1 of this preamble, as applicable, for all 
pollutants, for the same model year and maximum engine power.
BILLING CODE 6560-50-P

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BILLING CODE 6560-50-C
    b. 2007 Model Year and Later Non-Emergency Stationary CI ICE >3,000 
HP and With a Displacement <10 Liters per Cylinder. The proposed 
standards require that engine manufacturers certify their 2007 through 
2010 model year non-emergency stationary CI ICE with a maximum engine 
power greater than 3,000 HP and a displacement of less than 10 liters 
per cylinder to the emission standards shown in table 2 of this 
preamble. For 2011 model year and later non-emergency stationary CI ICE 
with a maximum engine power greater than 3,000 HP and a displacement of 
less than 10 liters per cylinder, manufacturers must certify these 
engines to the Tier 4 nonroad diesel engine standards as shown in table 
1 of this preamble, as applicable, for all pollutants, for the same 
model year and maximum engine power.

 Table 2.--NOX, NMHC, CO, and PM Emission Standards in g/KW-hr (g/HP-hr) for Pre-2007 Model Year Engines With a
   Displacement <10 Liters per Cylinder and 2007-2010 Model Year Engines >3,000 HP and With a Displacement <10
                                               Liters per Cylinder
----------------------------------------------------------------------------------------------------------------
              Maximum engine power                NMHC + NOX       HC          NOX           CO           PM
----------------------------------------------------------------------------------------------------------------
KW<8 (HP<11)...................................   10.5 (7.8)  ...........  ...........    8.0 (6.0)   1.0 (0.75)
8<=KW<19 (11<=HP<25)...........................    9.5 (7.1)  ...........  ...........    6.6 (4.9)  0.80 (0.60)
19<=KW<37 (25<=HP<50)..........................    9.5 (7.1)  ...........  ...........    5.5 (4.1)  0.80 (0.60)
37<=KW<56 (50<=HP<75)..........................  ...........  ...........    9.2 (6.9)  ...........  ...........
56<=KW<75 (75<=HP<100).........................  ...........  ...........    9.2 (6.9)  ...........  ...........
75<=KW<130 (100<=HP<175).......................  ...........  ...........    9.2 (6.9)  ...........  ...........
130<=KW<225 (175<=HP<300)......................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
225<=KW<450 (300<=HP<600)......................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
450<=KW<=560 (600<=HP<=750)....................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
KW>560 (HP>750)................................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
----------------------------------------------------------------------------------------------------------------

    c. 2007 Model Year and Later Non-Emergency Stationary CI ICE with a 
Displacement >=10 and <30 Liters per Cylinder. The proposed standards 
require that engine manufacturers certify their 2007 model year and 
later non-emergency stationary CI ICE with a displacement of greater 
than or equal to 10 liters per cylinder and less than 30 liters per 
cylinder to the certification emission standards for new marine CI 
engines in 40 CFR 94.8, as applicable, for all pollutants, for the same 
displacement and maximum engine power. These emission standards are 
shown in table 3 of this preamble.

  Table 3.--NOX, THC, CO, and PM Emission Standards in g/KW-hr for 2007
 Model Year and Later Stationary CI ICE With a Displacement >=10 and <30
                           Liters per Cylinder
------------------------------------------------------------------------
Engine size--liters per cylinder,
           rated power              THC + NOX        CO           PM
------------------------------------------------------------------------
5.0<=displacement<15.0, All Power          7.8          5.0         0.27
 Levels..........................

[[Page 39878]]

 
15.0<=displacement<20.0, <3,300            8.7          5.0         0.50
 KW..............................
15.0<=displacement<20.0, >=3,300           9.8          5.0         0.50
 KW..............................
20.0<=displacement<25.0, All               9.8          5.0         0.50
 Power Levels....................
25.0<=displacement<30.0, All              11.0          5.0         0.50
 Power Levels....................
------------------------------------------------------------------------

    d. 2007 Model Year and Later Emergency Stationary CI ICE. The 
proposed standards require that manufacturers certify their 2007 model 
year and later emergency stationary CI ICE less than or equal to 3,000 
HP and with a displacement of less than 10 liters per cylinder that are 
not fire pump engines to Tier 2 through Tier 3 nonroad CI engine 
emission standards, and Tier 4 nonroad CI engine standards that do not 
require add-on control, according to the nonroad diesel engine 
schedule. Manufacturers must certify their 2007-2010 model year 
emergency stationary CI ICE greater than 3,000 HP and with a 
displacement less than 10 liters per cylinder that are not fire pump 
engines to the emission standards shown in table 2 of this preamble. 
Manufacturers must certify their 2011 model year and later emergency 
stationary CI ICE that are greater than 3,000 HP and with a 
displacement less than 10 liters per cylinder that are not fire pumps 
to Tier 2 and Tier 3 nonroad CI engine standards, and to Tier 4 nonroad 
CI engine standards that do not require add-on control. Manufacturers 
are required to certify their 2007 model year and later emergency 
stationary CI ICE with a displacement of greater than or equal to 10 
liters per cylinder and less than 30 liters per cylinder to the 
certification emission standards for new marine CI engines in 40 CFR 
94.8. Manufacturers must certify their 2007 model year and later 
emergency fire pumps to the emission standards shown in table 4 of this 
preamble.
3. Proposed Standards for Owners and Operators
    Owners and operators of stationary CI ICE are required to meet the 
emission standards in the proposed rule over the entire life of the 
engine.
    a. Stationary CI ICE With a Displacement <30 Liters per Cylinder. 
Owners and operators that purchase pre-2007 model year stationary CI 
ICE with a displacement of less than 10 liters per cylinder that are 
not fire pump engines must meet the emission standards for pre-2007 
model year engines, which are shown in table 2 of this preamble. Owners 
and operators that purchase pre-2007 model year stationary CI ICE with 
a displacement of greater than or equal to 10 and less than 30 liters 
per cylinder that are not fire pump engines must meet the emissions 
standards in 40 CFR 94.8(a)(1). Section 94.8(a)(1) specifies the 
following NOX limits: 17.0 g/KW-hr (12.7 g/HP-hr) when the 
maximum test speed is less than 130 revolutions per minute (rpm); 45.0 
x N-\0.20\ when maximum test speed is at least 130 but less 
than 2000 rpm, where N is the maximum test speed of the engine in rpm; 
and 9.8 g/KW-hr (7.3 g/HP-hr) when maximum test speed is 2000 rpm or 
more.
    Owners and operators that purchase 2007 model year and later 
stationary CI ICE with a displacement of less than 30 liters per 
cylinder that are not fire pump engines must purchase an engine that is 
certified by the manufacturer according to the provisions of the 
proposed rule.
    b. Stationary CI ICE With a Displacement >=30 Liters per Cylinder. 
Owners and operators of stationary CI ICE with a displacement of 
greater than or equal to 30 liters per cylinder are required to reduce 
NOX emissions by 90 percent or more, or alternatively they 
must limit the emissions of NOX in the stationary CI 
internal combustion engine exhaust to 0.40 grams per KW-hour (0.30 
grams per HP-hour). Owners and operators of stationary CI ICE with a 
displacement of greater than or equal to 30 liters per cylinder are 
also required to reduce PM emissions by 60 percent or more, or 
alternatively they must limit the emissions of PM in the stationary CI 
internal combustion engine exhaust to 0.12 grams per KW-hour (0.09 
grams per HP-hour).
4. Proposed Standards for Manufacturers and Owners and Operators of 
Emergency Stationary Fire Pump Engines
    The proposed rule requires that owners and operators of emergency 
fire pump engines meet the emission standards shown in table 4 of this 
preamble, for all pollutants, for the same model year and maximum 
engine power. Starting with 2007 model year engines, emergency fire 
pumps must be certified to the emission standards shown in table 4 of 
this preamble. Emergency fire pump engines between 50 and 600 HP with a 
rated speed of greater than 2,650 rpm have been given an additional 3 
years to meet the most stringent emission standards. Although the fire 
pump engine manufacturers and installers have indicated that the 
provisions of the proposed rule will not reduce the reliability of fire 
pump engines, we are asking for comments on whether there are any 
concerns regarding fire pump reliability.

     Table 4.--NOX, NMHC, CO, and PM Emission Standards in g/KW-hr (g/HP-hr) for Emergency Fire Pump Engines
----------------------------------------------------------------------------------------------------------------
           Maximum engine power                     Model year(s)           NMHC + NOX       CO           PM
----------------------------------------------------------------------------------------------------------------
KW<8 (HP<11)..............................  2010 and earlier.............   10.5 (7.8)    8.0 (6.0)   1.0 (0.75)
                                            2011+........................    7.5 (5.6)  ...........  0.40 (0.30)
8<=KW<19 (11<=HP<25)......................  2010 and earlier.............    9.5 (7.1)    6.6 (4.9)  0.80 (0.60)
                                            2011+........................    7.5 (5.6)  ...........  0.40 (0.30)
19<=KW<37(25<=HP<50)......................  2010 and earlier.............    9.5 (7.1)    5.5 (4.1)  0.80 (0.60)
                                            2011+........................    7.5 (5.6)  ...........  0.30 (0.22)
37<=KW<56 (50<=HP<75).....................  2010 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)
                                            2011+ a......................    4.7 (3.5)  ...........  0.30 (0.22)
56<=KW<75 (75<=HP<100)....................  2010 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)

[[Page 39879]]

 
                                            2011+ a......................    4.7 (3.5)  ...........  0.40 (0.30)
75<=KW<130 (100<=HP<175)..................  2009 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)
                                            2010+ a......................    4.0 (3.0)  ...........  0.30 (0.22)
130<=KW<225 (175<=HP<300).................  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+ a......................    4.0 (3.0)  ...........  0.20 (0.15)
225<=KW<450 (300<=HP<600).................  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+ a......................    4.0 (3.0)  ...........  0.20 (0.15)
450<=KW<=560 (600<=HP<=750)...............  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+........................    4.0 (3.0)  ...........         0.20
                                                                                                          (0.15)
KW>560 (HP>750)...........................  2007 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2008+........................    6.4 (4.8)  ...........  0.20 (0.15)
 
----------------------------------------------------------------------------------------------------------------
a Emergency fire pump engines with a rated speed of greater than 2,650 rpm are allowed an additional 3 years to
  meet these standards.

5. Fuel Requirements
    In addition to emission standards, the proposed rule requires that 
beginning October 1, 2007, owners and operators of stationary CI ICE 
that use diesel fuel must only use diesel fuel meeting the requirements 
of 40 CFR 80.510(a), which requires that diesel fuel have a maximum 
sulfur content of 500 ppm and either a minimum cetane index of 40 or a 
maximum aromatic content of 35 volume percent. Beginning October 1, 
2010, owners and operators stationary CI ICE that use diesel fuel must 
only use diesel fuel meeting the requirements of 40 CFR 80.510(b), 
which requires that diesel fuel have a maximum sulfur content of 15 ppm 
and either a minimum cetane index of 40 or a maximum aromatic content 
of 35 volume percent. The proposed rule does not contain a standard for 
SO2; the use of low sulfur diesel fuel will result in lower 
emissions of SO2.
    Manufacturers of stationary CI ICE with a displacement of 30 liters 
per cylinder or more indicated that they are able to operate their 
engines on 500 ppm sulfur fuel, but they do not have any experience 
operating their engines on 15 ppm sulfur fuel, and they need to perform 
testing to ensure there are no problems with the lubricity of the ULSD 
fuel. The use of ULSD is not required until the year 2010, which will 
allow adequate time for manufacturers of these large stationary engines 
to test the operation of the engines on ULSD. The EPA does not expect 
that the lubricity of the ULSD will be an issue because additives can 
be added to ULSD to achieve a sufficient lubricity.

F. What Are the Requirements for Sources That Are Modified or 
Reconstructed?

    The proposed standards apply to stationary CI ICE that are modified 
or reconstructed after the date the proposed rule is published in the 
Federal Register. The guidelines for determining whether a source is 
modified or reconstructed are given in 40 CFR 60.14 and 40 CFR 60.15, 
respectively. Stationary CI ICE that are modified or reconstructed must 
meet the emission standards for the model year in which the engine was 
originally new, not the year the engine was modified or reconstructed. 
Therefore, a pre-2007 model year engine modified after 2007 must meet 
the emission standards for pre-2007 model year engines.

G. What Are the Requirements for Demonstrating Compliance?

1. Engine Manufacturers
    Manufacturers of stationary CI ICE must demonstrate compliance with 
the rule, as proposed, by certifying that their 2007 model year and 
later stationary CI ICE meet the emission standards in the rule using 
the certification procedures in subpart B of 40 CFR part 89, subpart C 
of 40 CFR part 94, or subpart C of 40 CFR part 1039, as applicable, and 
must test their engines as specified in those parts. Manufacturers of 
fire pump engines may use the optional test cycle provided in table 4 
of the proposed rule. Manufacturers of certified stationary CI ICE must 
also meet the emission-related warranty requirements of 40 CFR 
1039.120; the provisions in 40 CFR 1039.125 and 40 CFR 1039.130, which 
require the engine manufacturer to provide engine installation and 
maintenance instructions to buyers; the engine labeling requirements in 
40 CFR 1039.135; and the general compliance provisions in 40 CFR part 
1068, or the corresponding provisions of 40 CFR part 89 or 40 CFR part 
94 for engines that would be covered by that part if they were nonroad 
(including marine) engines. After the Tier 4 standards take effect, 
manufacturers of emergency stationary CI ICE that do not meet the 
standards for non-emergency engines must add to each such emergency 
engine a permanent label which states that the engine is for emergency 
use only.
    Engine manufacturers that certify an engine family or families to 
standards under the proposed rule that are identical to standards 
applicable under 40 CFR part 89, 40 CFR part 94, or 40 CFR part 1039 
for that model year may certify any such family that contains both 
nonroad (including marine) and stationary engines as a single engine 
family and/or may include any such family containing stationary engines 
in the averaging, banking and trading (ABT) provisions applicable for 
such engines under those parts.
    EPA has used averaging, banking, and trading often in the context 
of the nonroad engine program. The averaging provisions basically allow 
manufacturers to certify certain engine families to emission levels 
more stringent than required and to certify other engine families to 
levels less stringent than required, as long as the average emission 
levels to which the these engine families are certified are at least 
equal to the appropriate standards. The banking program allow 
manufacturers to generate credits by certifying engine families to more 
stringent standards than required in a particular year and to use such 
credits in later years. The trading provisions allow engine 
manufacturers to trade credits with other engine manufacturers covered 
by the same requirements. The ABT provisions include significant 
restrictions and compliance requirements, including upper limits on the 
level to which any engine family may certify.
    Under the nonroad engine program, the ABT provisions, where 
applied, are important elements in our

[[Page 39880]]

determination of the standards of performance that represent ``the 
greatest degree of emission reduction achievable through the 
application of technology which the Administrator determines will be 
available for the engines * * * to which the standards apply, giving 
appropriate consideration to the cost of applying such technology 
within the period of time available to manufacturers and to noise, 
energy and safety factors * * * '' See Clean Air Act section 213(a)(3) 
and Natural Resources Defense Council v. Thomas, 805 F.2d 410, 425 
(D.C. Cir. 1986) (upholding EPA regulations allowing manufacturers to 
meet emission standards for heavy-duty engines by averaging among 
engine families); see also discussions at 69 FR 38996 (June 29, 2004) 
and 55 FR 30584, 93-99 (July 26, 1990).
    Similarly, we believe that these ABT provisions are essential 
elements in our determination that the proposed standards reflect best 
demonstrated technology. The flexibility provided by the ABT provisions 
allows the manufacturer to adjust its compliance for engine families 
for which coming into compliance with the standards will be 
particularly difficult or costly, without special delays or exceptions 
having to be written into the rule. Emission-credit programs also 
create an incentive for the early introduction of new technology (for 
example, to generate credits in early years to create compliance 
flexibility for later engines), which allows certain engine families to 
act as trailblazers for new technology. This improves the feasibility 
of achieving the standards for the entire population of regulated 
engines. EPA has concluded as a factual matter, as reflected in today's 
proposed rule, that an ABT program, operated at the level of the 
manufacturer, represents the best system of emissions reductions, 
considering all relevant factors.
    We believe the proposed ABT provisions are appropriate for this 
program. The ABT provisions are applicable to engine manufacturers, who 
manufacture numerous engines for use in all areas of the country, as 
opposed to the final owner/operators of the units. These standards will 
apply to hundreds of different engine families that will be used in 
tens of thousands of different engines. The flexibility provided by the 
ABT program is an important instrument for manufacturers to use in 
meeting the stringent standards being proposed in this program 
affecting a large number of engine families. We welcome comments on the 
appropriateness of allowing for averaging, banking and trading under 
this program.
    We are proposing minor revisions to several existing mobile source 
regulations to help incorporate several of these provisions.
    EPA is proposing that manufacturers of stationary CI ICE that are 
seeking certificates of conformity be subject to the same fee 
provisions as those promulgated for comparable land-based and marine 
nonroad engines in EPA's most recent fees rulemaking (see 69 FR 26222, 
May 11, 2004) and be required to comply with the fees rule in the same 
manner as manufacturers already subject to the fees regulations. 
Because EPA will be providing certificates of conformity to stationary 
CI ICE manufacturers and, thus is providing a service or thing of value 
to the manufacturers, the Independent Offices Appropriations Act (31 
U.S.C. 9701) authorizes such a fee collection. Having reviewed the 
recent fees rule for the motor vehicle and engine compliance program, 
and its associated cost study which examined EPA's incurred cost of 
compliance services, we believe that the fees provided in that rule are 
appropriate for the comparable costs of administering the compliance 
program for the engines associated with today's proposed rule. We have 
proposed that these engines are to be subject to the same general 
compliance regime as land-based nonroad CI engines and, for those with 
a displacement greater than 10 liters per cylinder, marine engines 
covered by the existing fees rule. We believe fees for each respective 
request for certification of conformity for stationary CI ICE should 
have the same fee amount as for those engines.
    Under the provisions of the existing fees rule, the initial fees 
for certification applications received in the 2004 and 2005 calendar 
years (for example, $1,822 and $826, respectively, for land-based 
nonroad CI engines and marine engines) are adjusted on an annual basis 
based on several factors, including any changes in the number of 
certificates in the respective fee categories. Thus, the number of 
certificates that EPA issues for the engines covered by today's 
proposed rule will be included in the respective fee categories when 
EPA conducts its annual calculation for the purposes of adjusting fees 
based on the existing regulatory formula. Please note that the fee 
amounts for calendar year 2006 have slightly increased from the fee 
amounts for the 2004 and 2005 calendar year fees. See EPA's Guidance 
Letter CCD-05-05 at http://www.epa.gov/otaq/cert/dearmfr/dearmfr.htm. 
Finally, EPA believes it appropriate to commence the collection of fees 
immediately for each certification of conformity request once the final 
rule becomes effective.
2. Owners and Operators
    All engines and control devices must be installed, configured, 
operated, and maintained according to the specifications and 
instructions provided by the engine manufacturer. Other compliance 
requirements for owners and operators of stationary CI ICE depend on 
the displacement and model year of the engine. Owners and operators of 
pre-2007 model year engines with a displacement less than 30 liters per 
cylinder can demonstrate compliance by purchasing an engine that is 
certified to meet the nonroad emission standards for the model year and 
maximum engine power of the engine. Other information such as 
performance test results for each pollutant for a test conducted on a 
similar engine; data from the engine manufacturer; data from the 
control device vendor; or conducting a performance test can also be 
used to demonstrate compliance with the emission standards. The owner 
or operator may also choose to conduct an initial performance test to 
demonstrate compliance with the emission standards. The records which 
indicate that the engine is complying with the emission standards of 
the proposed rule must be kept on file by the owner or operator of the 
engine and be available for inspection by the enforcing agency. Engine 
manufacturers and/or control device vendors may provide such 
information at the time of sale. Manufacturers that provide such 
information to their customers may also choose to place a label on the 
engine that indicates the engine meets the applicable standards for 
stationary CI ICE under 40 CFR part 60, subpart IIII, as long as the 
label does not violate or otherwise interfere with other labels or 
requirements mandated by other regulations. If the owner or operator 
chooses to conduct a performance test to demonstrate compliance with 
the proposed rule, the test must be conducted according to the in-use 
testing procedures of 40 CFR 1039, subpart F.
    Starting with 2007 model year engines with a displacement of less 
than 30 liters per cylinder, owners and operators are required to 
demonstrate compliance by purchasing an engine certified to meet the 
applicable emission standard for the model year and maximum engine 
power of the engine.
    If in-use testing is conducted, the owner and operator of engines 
with a displacement of less than 30 liters per cylinder would be 
required to meet not-

[[Page 39881]]

to-exceed (NTE) emission standards instead of the standards in tables 1 
and 2 of this preamble. Engines that are complying with the emission 
standards in 40 CFR part 1039 (Tier 4 standards) must not exceed the 
NTE standards for the same model year and maximum engine power as 
required in 40 CFR 1039.101(e) and 40 CFR 1039.102(g)(1), except as 
specified in 40 CFR 1039.104(d). Engines that are complying with the 
emission standards in 40 CFR 89.112 (Tier 2/3 standards), and engines 
that are pre-2007 model year engines must meet the following NTE 
standards:

    NTE = (STD) x (M)

    Where:
NTE = The NTE emission standard for each pollutant.
STD = The certification emission standard specified for each pollutant 
in Table 1 or 2 for the same model year and maximum engine power.
M = 1.25.

    Owners and operators of stationary CI ICE with a displacement of 
greater than or equal to 30 liters per cylinder must conduct an initial 
performance test to demonstrate compliance with the emissions 
reductions requirements, establish operating parameters and monitor 
operating parameters continuously, and conduct annual performance 
tests. The NTE standards do not apply to engines that have a 
displacement of greater than or equal to 30 liters per cylinder. 
Testing conducted on these engines must be performed to demonstrate 
that NOX and PM emission standards are achieved.

H. What Are the Monitoring Requirements?

    Owners and operators of stationary CI ICE that are equipped with 
CDPF must install a backpressure monitor that will notify the operator 
when the high backpressure limit of the engine is approached. All 
emergency stationary CI ICE must have a non-resettable hour meter to 
track the number of hours operated during non-emergencies.

I. What Are the Reporting and Recordkeeping Requirements?

    The owner or operator of non-emergency stationary CI ICE that are 
greater than 3,000 HP or with a displacement of greater than or equal 
to 10 liters per cylinder, and non-emergency stationary CI ICE pre-2007 
model year engines greater than 175 HP and not certified, must submit 
an initial notification. The initial notification must contain 
information identifying the owner or operator, the engine and control 
device, and the fuel used. As mentioned, engines that are not certified 
have various options for demonstrating initial compliance, which would 
be documented in records available on-site. Also, all owners and 
operators must keep records of all information necessary to demonstrate 
compliance with the emission standards such as records of all 
notifications submitted, any maintenance conducted on the engine, any 
performance tests conducted on the engine (or performance tests 
conducted on a similar engine that is used to demonstrate compliance), 
engine manufacturer or control device vendor information, etc. Owners 
and operators of certified engines must keep records of documentation 
from the manufacturer that the engine is certified to meet the emission 
standards. Owners and operators of engines that are equipped with CDPF 
must install a backpressure monitor and are required to maintain 
records of any corrective action taken after the backpressure monitor 
has notified the owner or operator that the backpressure limit is 
approached. These records must be available for viewing upon request by 
the enforcing agency. Owners and operators of emergency engines are not 
required to submit initial notifications. However, these engines must 
have a non-resettable hour meter. Owners and operators of emergency 
engines are required to keep records of their hours of operation in 
non-emergency service. Records of hours of operation during emergencies 
are not required.

IV. Rationale for Proposed Rule

A. How Did EPA Determine the Source Category for the Proposed Rule?

    Under section 111 of the CAA, 42 U.S.C. 7411, the Administrator is 
required to publish, and periodically update, a list of source 
categories that in his or her judgement cause, or contribute 
significantly to, air pollution which may reasonably be anticipated to 
endanger public health or welfare. This list appears in 40 CFR 60.16. 
The list reflects the Administrator's determination that emissions from 
the listed source categories contribute significantly to air pollution 
that may reasonably be anticipated to endanger public health or 
welfare, and it is intended to identify major source categories for 
which standards of performance are to be promulgated.
    The EPA has determined that for purposes of promulgating NSPS 
regulations, the stationary internal combustion engine source category 
should be split into two source categories--CI engines and SI engines. 
The reason for dividing the source category is that EPA will require 
more time to develop a regulation for SI engines than for CI engines. 
At the outset of the proposed rulemaking process, the EPA had more 
information available for CI engines than for SI engines due to other 
regulatory actions and information gathering activities for CI engines 
by EPA, as well as States and groups of States. It will take longer to 
collect and analyze information for SI engines, and EPA will, 
therefore, need more time to develop a regulation for SI engines.

B. How Did EPA Select the Pollutants To Be Regulated?

    New source performance standards are developed under the authority 
of section 111 of the CAA. Emissions of criteria pollutants (those 
pollutants identified under section 110 of the CAA) are generally 
regulated under section 111, while HAP are regulated under section 112 
of the CAA. Emissions from stationary CI ICE contribute significantly 
to air pollution and cause adverse health and welfare effects 
associated with ozone, PM, NOX, SOX, CO, and 
NMHC.
    Nitrogen oxides are listed as criteria pollutants and are regulated 
due to their contribution to the formation of ozone. Nitrogen oxides 
are precursors to ozone formation. Exposure to ozone has been linked to 
health and welfare impacts. Health and welfare risks include impaired 
respiratory function, eye irritation, deterioration of materials such 
as rubber, and necrosis of plant tissue. Nitrogen oxides are one of the 
major pollutants emitted from stationary ICE and stationary ICE are 
considered to cause or contribute significantly to nationwide releases 
of NOX emissions. By reducing emissions of NOX, 
substantial benefits to public health and welfare and the environment 
will be realized.
    Particulate matter is listed as a criteria pollutant and is 
regulated by this action. Emissions of PM lead to adverse health and 
welfare effects. Health effects associated with ambient PM include 
premature mortality, aggravation of respiratory and cardiovascular 
disease, aggravated asthma, and acute respiratory symptoms. By 
controlling the emissions of PM, the risk of areas failing to attain or 
maintain compliance with the National Ambient Air Quality Standards 
(NAAQS) for PM is reduced.
    Sulfur oxides have been identified as criteria pollutants and are 
addressed in the proposed rule through fuel use requirements. Sulfur 
dioxide and sulfate PM are emitted as a result of sulfur in the diesel 
fuel used by stationary CI ICE.

[[Page 39882]]

By controlling the sulfur level in diesel fuel, levels of air pollution 
will be reduced and public health and welfare will be improved. 
Restrictions on fuel use will also assist areas currently in 
nonattainment with the SO2 standard to comply with the NAAQS 
standard for SO2.
    Emissions of NMHC from stationary CI ICE contribute to the 
formation of ozone. In addition, emissions of NMHC include air toxics 
such as benzene, formaldehyde, acetaldehyde, 1,3-butadiene, and 
acrolein. These substances are known or suspected as being human or 
animal carcinogens, or having noncancer health effects such as 
irritation or corrosion of the eyes, nose, throat, and lungs; pulmonary 
and respiratory problems; and dermatitis and sensitization of the skin 
and respiratory tract. Stationary CI ICE contribute to nationwide 
releases of NMHC emissions. Substantial benefits to public health and 
welfare and the environment will be realized by reducing emissions of 
NMHC.
    Carbon monoxide is a criteria pollutant and is considered harmful 
to public health and the environment. Carbon monoxide has been linked 
to increased risk for people with heart disease, reduced visual 
perception, cognitive functions and aerobic capacity, and possible 
fetal effects. Stationary CI engines are major contributors to 
emissions of CO and are considered to contribute to several areas 
failing to attain the NAAQS for CO. Reductions of CO proposed by the 
proposed rule will improve public health and welfare.
    In addition to the health effects described above, pollution from 
stationary diesel engines also significantly contributes to visibility 
effects. Visibility is defined as the degree to which the atmosphere is 
transparent to visible light. Fine particles are the major contributors 
to reduced visibility. By implementing emission standards for 
stationary diesel engines as proposed by the proposed rule, 
improvements in visibility will be experienced.
    Other potential effects associated with these pollutants from 
stationary diesel engines include acid deposition, eutrophication, 
soiling, and material damage. Acid deposition, or acid rain occurs when 
SO2 and NOX are released into the atmosphere and 
react with water, oxygen, and oxidants. Acid rain contributes to damage 
of the environment including damage to trees, lakes, and streams, in 
addition to affecting building materials, accelerating the decay of 
structures. By reducing SO2 and NOX emissions, 
the sulfur and nitrogen acid deposition will also be reduced. 
Eutrophication is the accelerated production of organic matter, 
particularly algae in water bodies. The increased level of algae can 
cause adverse ecological effects, including reduced light and oxygen 
levels, which affect fish, plants, and other organisms that are 
habitants in water bodies. Deposition of airborne particles, which can 
lead to accumulation of particles (soiling) on surfaces can cause 
structural damage by means of corrosion or erosion. The proposed rule 
should decrease the levels of soiling by reducing the level of PM that 
is emitted from stationary diesel engines. The use of CDPF by engines 
affected by the proposed rule will also result in reductions of gaseous 
HAP.

C. How Did EPA Determine the Best Demonstrated Technology?

1. Background
    To determine the BDT for the proposed rule, EPA first analyzed the 
emission control strategies selected for the nonroad CI engine rule. 
The EPA concluded that the level and implementation timing of the 
nonroad CI engine standards are the most challenging that can be 
justified.
    Engine manufacturers have indicated to EPA that, in many cases, 
they do not separately design and manufacture CI engines for stationary 
use. The manufacturers usually sell the same CI engines for use in 
mobile nonroad equipment as those used in stationary applications. 
Emissions from stationary CI ICE would, therefore, tend to decline with 
the implementation of EPA's nonroad diesel engine standards. However, 
there are certain engine classes produced that are not sold into the 
nonroad sector but are strictly used for stationary purposes, in 
particular very large engines. There are also several families of 
stationary engines that have not been modified to meet nonroad 
standards, even for smaller engines. Therefore, there will be certain 
engines that will be used for stationary purposes that have not been 
certified through the nonroad rule.
    The EPA is proposing that stationary engine manufacturers begin 
certifying stationary CI engines to Tier 2 and Tier 3 nonroad CI engine 
levels, or Tier 2 marine CI engine levels, where applicable, starting 
with 2007 model year engines, in order to provide sufficient time for 
these manufacturers to put the certification regime in place for 
stationary engines.
2. Stationary CI ICE With a Displacement <10 Liters per Cylinder
    The Tier 2 and Tier 3 nonroad CI engine standards are based on 
engine-based, as opposed to aftertreatment-based, technologies. 
Technologies being used to meet the Tier 2 limits are combustion 
optimization and advanced fuel injection controls. At the time that the 
Tier 3 limits were promulgated, it was believed that technologies being 
developed for highway diesel engines, especially cooled EGR, would be 
applied to nonroad engines in order to meet the Tier 3 limits. The Tier 
3 limits will be phased in starting in 2006, and EPA has concluded that 
engine manufacturers will use a variety of engine control techniques to 
meet the Tier 3 limits. These techniques include charge air cooling, 
fuel injection rate shaping and multiple injections, injection timing 
retard, EGR, induced mixing/charge motion, control of air-to-fuel 
ratio, and control of oil consumption. Since stationary CI engines are 
similar to nonroad engines, EPA believes that these engine technologies 
used for the Tier 2 and Tier 3 standards are the BDT during the 
timeframe of the Tier 2 and Tier 3 rules for 2007 model year and later 
engines with a displacement of less than 10 liters per cylinder. This 
determination is applicable for both emergency and non-emergency 
engines with a displacement of less than 10 liters per cylinder, since 
the technology is a part of the engine and is the same no matter what 
the engine will be used for.
    In June of 2004, EPA promulgated Tier 4 standards for nonroad 
diesel engines (69 FR 38957), which begin to take effect in a staged 
fashion beginning in 2008. The Tier 4 standards are based on the use of 
advanced emission control technologies for nonroad diesel engines. For 
PM, CO, and NMHC, EPA projects that CDPF is the technology that will 
ultimately be used to meet the nonroad diesel engine emission standards 
for engines greater than or equal to 25 HP and with a displacement less 
than 10 liters per cylinder. Catalyzed diesel particulate filters have 
been demonstrated to achieve reductions of greater than 90 percent for 
PM, CO, and NMHC for stationary CI ICE. The technology requires ULSD 
fuel in order to achieve those levels of reductions. The CDPF 
technology also reduces emissions of gaseous HAP. The EPA did not set 
standards based on the use of CDPF for nonroad diesel engines less than 
25 HP. The PM standards for these small engines are based on the use of 
oxidation catalyst control and engine optimization. The EPA stated that 
the

[[Page 39883]]

reason it did not set more stringent PM standards was due to the cost 
of implementing CDPF on these engines, especially considering the 
prerequisite need for electronic fuel control systems to facilitate 
regeneration. The EPA plans to conduct a technology review for these 
small engines in the future and make a determination at that time if 
more stringent standards are appropriate.
    For the nonroad CI engine NOX Tier 4 emission standards 
for engines greater than or equal to 75 HP, EPA projects that the 
technology that will be used is NOX adsorber, a catalyst 
technology for removing NOX in a lean exhaust environment. 
This technology has been demonstrated to be effective in several 
studies, but is not expected to be used commercially until 2007 at the 
earliest, in part because the technology can only operate effectively 
if the engine is using ULSD fuel. Emissions reductions from 
NOX adsorbers are expected to be greater than 90 percent for 
NOX; however, ULSD fuel is required to achieve these 
reductions. For nonroad engines smaller than 75 HP, EPA did not set 
more stringent standards based on the use of NOX 
aftertreatment because EPA could not determine that NOX 
adsorbers were feasible, considering cost, for these engines.
    Applying NOX adsorbers to all nonroad and stationary 
diesel engines is complex and will require a high level of engine and 
aftertreatment integration. Diesel engines greater than 75 HP and with 
a displacement less than 10 liters per cylinder are similar to highway 
diesel engines, and the implementation of NOX adsorbers on 
highway engines will provide the information on how successful 
integration will be and is key to how the integration process will work 
for nonroad and stationary engines. Experience associated with the 
implementation of advanced controls on smaller nonroad engines (less 
than 75 HP) is significantly less than the experience already developed 
for larger engines. The EPA, therefore, did not set standards based on 
NOX adsorbers for smaller nonroad diesel engines but relied 
on on-engine controls. The EPA plans to conduct a technology review in 
the future for nonroad diesel engines less than 75 HP to assess engine 
and emission control technologies at that point, and it is expected 
that the findings of this review will apply to stationary engines as 
well. Also, the EPA is deferring a decision on setting aftertreatment-
based NOX standards for engines that are larger than 750 HP 
and not used as generator sets. The delay will provide additional time 
to evaluate the technical issues involved in adapting NOX 
adsorber technology to these applications. The Tier 4 NOX 
standard for engines larger than 750 HP not used as generator sets is 
therefore based on proven engine-based NOX control 
technologies, rather than NOX adsorber.
    In addition to the technologies that are the basis for the nonroad 
engine emission standards, EPA evaluated other currently available add-
on emission controls for NOX, CO, NMHC, and PM. Two other 
technologies were identified: SCR for NOX emissions and 
oxidation catalyst for other emissions. Selective catalytic reduction 
can reduce NOX emissions by more than 90 percent, a similar 
level of performance to NOX adsorbers. The cost of SCR is 
significantly higher than for NOX adsorber. In addition, for 
the nonroad emission standards, EPA indicated that it had significant 
concerns with SCR, which is a technology that requires extensive user 
intervention to operate properly and the lack of the urea delivery 
infrastructure that is necessary to support the technology. For the 
nonroad emission standards for diesel engines, EPA concluded that SCR 
is not likely to be available for general use for the timeframe of the 
Tier 4 emission standards. However, EPA did not exclude the possibility 
that certain installations may use SCR to comply with the emission 
standards, but the feasibility and cost analysis for nonroad diesel 
engines was not based on the use of SCR. The EPA believes that the 
conclusions drawn for nonroad diesel engines also apply to stationary 
diesel engines. It is likely that SCR may be applied more to stationary 
engines than nonroad engines; however, the limitations that EPA has 
identified for nonroad diesel engines also affect stationary engines. 
As with nonroad engines, EPA does not preclude the possibility that 
certain installations may rely on the use of SCR to comply with the 
Tier 4 NOX emission standards. For non-emergency stationary 
CI engines with a displacement less than 10 liters per cylinder, the 
EPA, therefore, determined that NOX adsorber is the BDT for 
control of NOX emissions because it achieves similar 
reductions to SCR at a lower cost.
    Oxidation catalysts can achieve the same level of control of CO and 
NMHC as CDPF, but only reduce PM emissions by approximately 20 to 50 
percent when used with 500 ppm sulfur diesel fuel. No other 
technologies were identified for control of PM. The EPA, therefore, 
concluded that for non-emergency stationary CI engines greater than or 
equal to 25 HP and with a displacement less than 10 liters per 
cylinder, CDPF is the BDT for CO, NMHC, and PM because it achieves the 
same CO and NMHC emission reduction as oxidation catalyst and achieves 
a significantly higher PM reduction than oxidation catalyst. The EPA 
could not justify selecting CDPF or oxidation catalyst as the BDT for 
emergency engines due to the cost of aftertreatment compared to the 
amount of pollutant reduced. Further information regarding EPA's 
analysis is presented in a memorandum included in the docket (Docket 
ID. No. OAR-2005-0029).
    For emergency stationary CI engines, the cost of NOX 
adsorber was compared to the amount of NOX that will be 
reduced, and it was determined that the relatively high cost as 
compared to the amount of NOX reduced did not justify the 
selection of NOX adsorber for emergency engines. Emergency 
stationary CI ICE are only operated for a few hours each year and, 
therefore, emissions from these engines are relatively low compared to 
emissions from non-emergency engines. Additional information on EPA's 
analysis is presented in a memorandum included in the docket (Docket 
ID. No. OAR-2005-0029).
3. Stationary CI ICE With a Displacement >=10 and <30 Liters Per 
Cylinder
    Stationary CI ICE with a displacement between 10 and 30 liters per 
cylinder are more similar to marine CI engines than land-based CI 
engines. For stationary CI ICE with a displacement of greater than or 
equal to 10 and less than 30 liters per cylinder, we, therefore, 
believe it is appropriate to rely on the technologies used to meet the 
Tier 1 and 2 emission standards for marine CI engines. Marine CI 
engines of this displacement are categorized as category 2 marine 
engines. More specifically, category 2 means relating to a marine 
engine with a specific engine displacement greater than or equal to 5 
liters per cylinder but less than 30 liters per cylinder. The EPA 
expects that category 2 marine diesel engines will use the same 
technologies that are relied upon for category 1 engines. Category 1 
marine engines are those marine engines that are greater than or equal 
to 37 KW (50 HP) with a displacement of less than 5 liters per 
cylinder. In general, EPA believes that many of the control 
technologies that are expected to be used on nonroad CI engines to meet 
Tier 2 and Tier 3 nonroad CI emission standards and those used on 
locomotives to meet Tier 2 locomotive emission standards, will also be 
used on marine engines since marine engines are derived from land-based 
engines. For category 2 marine engines, EPA expects

[[Page 39884]]

that timing retard, advanced fuel injection systems, optimized nozzle 
geometry, and possibly through rate shaping may be used to meet the 
Tier 2 marine standards. The EPA also anticipates that manufacturers of 
category 2 marine engines will increase the use of electronic engine 
management controls. Additional reductions in NOX, PM, CO, 
and HC can be achieved through electronic controls. Furthermore, the 
EPA expects that category 2 marine engines will be turbocharged and 
aftercooled. The EPA believes the control strategies relied upon to 
meet Tier 1 and 2 marine emission standards will be appropriate for 
stationary CI ICE with a displacement between 10 and 30 liters per 
cylinder and, therefore, chose the technologies anticipated to be used 
to comply with Tier 1 and 2 marine emission standards as the BDT for 
stationary CI ICE of this displacement.
    Though EPA is not proposing aftertreatment-based standards for 
these engines at this time, we are currently reviewing the possibility 
of promulgating more stringent standards for marine engines similar to 
the Tier 4 standards promulgated for land based nonroad CI engines. In 
that context, we will review whether such technologies are appropriate 
for stationary CI ICE with a displacement between 10 and 30 liters per 
cylinder. The NSPS for such engines may, therefore, be revised at that 
time to require more stringent standards in the future.
    For emergency stationary CI ICE with a displacement of greater than 
or equal to 10 and less than 30 liters per cylinder, the basis for the 
BDT are the same technologies as discussed above that are used to 
comply with Tier 2 marine emission standards.
4. Stationary CI ICE With a Displacement >=30 Liters Per Cylinder
    For stationary CI ICE with a displacement of greater than or equal 
to 30 liters per cylinder, EPA evaluated currently available control 
technologies for NOX and PM. The EPA identified SCR and ESP 
as feasible control options for these engines. Selective catalytic 
reduction has been available for several years and is a well-proven 
technology on stationary ICE using diesel fuel. Information provided by 
manufacturers of stationary CI ICE with a displacement of greater than 
or equal to 30 liters per cylinder indicated that the technology is 
capable of reducing NOX emissions by more than 90 percent. 
The EPA considered NOX adsorbers; however, the technology is 
still under development, and its applicability to very large engines is 
unknown. No other technologies were identified for control of 
NOX and SCR was chosen as the BDT for stationary CI ICE with 
a displacement of greater than or equal to 30 liters per cylinder. For 
PM, the EPA chose ESP as the BDT for engines with a displacement at or 
above 30 liters per cylinder. Information provided by manufacturers of 
stationary CI ICE with a displacement of greater than or equal to 30 
liters per cylinder indicated that the technology can reduce PM 
emissions by at least 60 percent on large industrial applications. The 
EPA evaluated CDPF but concluded that the feasibility of applying 
particulate filters to engines of such large displacement, and, in 
turn, also size, has not been shown. This conclusion is consistent with 
information gathered from CDPF control technology vendors who believe 
that it is not possible to apply CDPF to such large engines. No other 
feasible technologies were identified for the control of PM from these 
engines, and ESP was selected as the BDT for PM for engines with a 
displacement greater than or equal to 30 liters per cylinder.

D. How Did EPA Select the Affected Facility for the Proposed Rule?

    The choice of the affected facility for an NSPS is based on the 
Agency's interpretation of section 111 of the CAA. Under section 111, 
the NSPS provisions must apply to any new source owned or operated in 
the United States. The ``new source'' means any stationary source, the 
construction or modification of which is commenced after the 
publication of regulations (or, if earlier, proposed regulations) 
prescribing a standard of performance under this section which will be 
applicable to such source.
    The term ``stationary source'' means any building, structure, 
facility, or installation which emits or may emit any air pollutant. 
Most industrial plants, however, consist of numerous pieces or groups 
of equipment which emit air pollutants, and which might be viewed as 
``sources.'' The EPA uses the term ``affected facility'' to designate 
the equipment, within a particular kind of plant, which is chosen as 
the ``source'' covered by a given standard.
    In choosing the affected facility, the EPA must decide which pieces 
or groups of equipment are the appropriate units for separate emission 
standards in the particular industrial context involved and in light of 
the terms and purpose of CAA section 111. One major consideration in 
this examination is that the use of a broader definition means that 
replacement equipment is less likely to be regulated under the NSPS; 
if, for example, an entire plant was designated as the affected 
facility, no part of the plant would be covered by the standard unless 
the plant as a whole was ``modified.'' Because the purpose of section 
111 is to minimize emissions by the application of the best 
demonstrated control technology (considering cost, other health and 
environmental effects, and energy requirements) at all new and modified 
sources, there is a presumption that a narrower designation of the 
affected facility is appropriate. This ensures that new emission 
sources within plants will be brought under the coverage of the 
standards as they are installed. This presumption can be overcome, 
however, if the Agency concludes that the relevant statutory factors 
(technical feasibility, cost, energy, and other environmental impacts) 
point to a broader definition.
    For the proposed rule, the EPA did not see any reason to use a 
broader definition for the affected facility and has, therefore, 
designated each individual engine as the affected facility. Each engine 
must meet the certification requirements under this rule. A site or 
engine manufacturer with multiple engines could have different 
compliance requirements for each engine, depending on the engine size, 
age, and application. Use of the broader definition of affected source 
could require complex aggregate compliance determinations. The EPA 
feels such complicated compliance determinations to be impractical, 
and, therefore, has decided to adopt a definition which establishes 
each individual engine as the affected source.
    The EPA is regulating engine manufacturers in the proposed rule by 
requiring that they certify their 2007 model year and later stationary 
CI engines to emission standards that have already been promulgated for 
nonroad CI engines, or to the emission standards for marine CI engines 
if the engines have a displacement greater than or equal to 10 liters 
per cylinder and less than 30 liters per cylinder. The vast majority of 
stationary CI engines are consumer products produced in mass 
quantities. The EPA estimates that more than 60,000 stationary CI 
engines will be produced every year starting in 2007 and increasing 
thereafter. For further information on EPA's stationary CI engine 
projection estimates, please refer to the docket for the proposed rule. 
Internal combustion engines have traditionally been regulated through 
the manufacturer for purposes of meeting mobile source regulations and 
manufacturers have years, and decades in many cases, of experience 
complying with such standards. It is infinitely

[[Page 39885]]

simpler, more reliable, and comparatively inexpensive to regulate 
stationary CI engines employing the same regime as for mobile sources 
than to create a new regime based on testing by every owner and 
operator, and it is within our authority for establishing standards of 
performance under CAA section 111 to require manufacturers to meet such 
standards. Section 111(b) provides EPA with authority to promulgate new 
source performance standards and nothing in section 111 prevents EPA 
from applying such new source performance standards to manufacturers, 
where appropriate. The EPA has previously regulated wood stoves under 
section 111 of the CAA using similar procedures (53 FR 5860). The EPA, 
therefore, believes it is appropriate to propose that this section 111 
NSPS be primarily directed at regulating engine manufacturers, rather 
than individual owners and operators.
    The EPA is primarily regulating manufacturers of stationary CI 
engines. However, EPA is also imposing certain requirements on owners 
and operators of stationary CI engines. Starting with 2007 model year 
engines, owners and operators are required to buy certified engines. 
Owners and operators are also required to operate and maintain their 
stationary CI engines and control devices according to the 
manufacturer's instructions and guidelines to ensure that the engine 
functions properly, and that the required emission standards actually 
occur in use.

E. How Did EPA Select the Proposed Standards?

1. Introduction
    The basis for the format of the proposed emission standards is 
primarily the nonroad CI engine rule. The EPA believes that it is 
appropriate to base the standards for most stationary CI engines on the 
nonroad CI engine standards because the design and emissions 
characteristics of the engines are very similar. In fact, engine 
manufacturers have indicated to EPA that in most cases they do not 
separately design and manufacture separate CI engines for stationary 
use. The engine manufacturers often sell the same CI engine for use in 
mobile nonroad equipment as they do for use in stationary applications. 
Most CI engines that are ultimately used in stationary applications are 
designed and built for use in both stationary and nonroad applications. 
All engines built for nonroad applications must be certified to meet 
EPA and California Air Resources Board (CARB) emission standards for 
nonroad mobile sources. However, there are certain engine classes and 
families produced that are not sold into the nonroad sector but are 
strictly used for stationary purposes. These engines would not be 
certified under the nonroad rule for CI engines. However, even for 
engines not currently certified to nonroad standards, these engines are 
very similar in design and in the method of manufacture to comparable 
nonroad land-based, or in the case of engines with displacement above 
10 liters per cylinder, marine-based engines. This is why EPA is 
proposing that stationary engines be certified under the NSPS, 
following the certification protocols specified in the nonroad rules 
for diesel land-based engines, or marine-based engines.
    The proposed standards for stationary CI ICE are output-based 
emission standards and are in units of emissions mass per unit work 
performed (g/KW-hr). The emission standards are phased in over several 
years and have Tiers with increasing levels of stringency. Engines are 
separated into engine power ranges, and some emission standards vary 
between ranges. The basis for this is EPA's analysis of the 
applicability of specific emission control strategies for each power 
range of engines. The Tier 2 and Tier 3 levels are based on the most 
advanced engine-based technologies available for the various engines 
classes in the timeframe of the nonroad diesel engine rulemaking. For 
most engines, the Tier 4 levels represent the emission reductions 
possible from the application of CDPF and NOX adsorbers to 
the expected emission levels for the previous tier engines.
2. Engine Manufacturers
    a. 2007 Model Year and Later Non-Emergency Stationary CI ICE With a 
Displacement <10 Liters per Cylinder. The EPA is proposing that engine 
manufacturers certify their 2007 model year and later stationary CI 
engines with a displacement less than 10 liters per cylinder to the 
certification emission standards for nonroad diesel engines for the 
same model year and maximum engine power for all pollutants. The EPA 
believes this requirement is appropriate and expects that engine 
manufacturers will use advanced engine-based technologies, as 
previously described, such as combustion optimization, advanced fuel 
injection controls, and other engine control technologies, similar to 
the technologies that nonroad engines will rely on, to meet Tier 2 and 
Tier 3 levels, and advanced aftertreatment controls to meet Tier 4 
levels. Engine manufacturers will be required to certify their 
stationary CI engines to the appropriate tiers following the nonroad 
diesel engine schedule.
    The EPA believes that a certification program that starts with 2007 
model year engines will provide engine manufacturers and EPA with 
sufficient time to develop and implement a program to certify 
stationary CI ICE. The program will be based on the certification 
program for nonroad diesel engines for the majority of stationary 
engines.
    The timing of the Tier 4 standards is closely tied to the 
availability of a sufficient amount of ULSD fuel, which is expected to 
be available in sufficient quantities for use in both stationary and 
nonroad engines at the time that the Tier 4 standards take effect for 
the nonroad CI rule. The Tier 4 rulemaking for nonroad diesel engines 
contains a two-step sulfur standard for nonroad diesel fuel. The sulfur 
content in the diesel fuel affects the level of pollution emitted by 
engines, and EPA expects that ULSD fuel will be necessary in order to 
meet the Tier 4 emission standards. Engine manufacturers will want the 
assurance that they will not be liable for emissions from engines that 
do not use the appropriate fuel for the emission control device. 
Similarly to nonroad diesel engines, the emission control technologies 
used on stationary CI engines to meet the Tier 4 limits also must be 
used with ULSD fuel. Therefore, EPA is proposing a diesel fuel standard 
for owners and operators of stationary CI engines that corresponds to 
the requirements for nonroad diesel fuel.
    The earliest nonroad Tier 4 engine standards take effect in model 
year 2008, which is the first full model year for which 500 ppm sulfur 
will be required. The 2008 Tier 4 standards apply only to engines below 
75 HP. Setting Tier 4 standards in 2008 for engines 75 HP and larger 
would not provide a sufficient period of stability (an element of lead 
time) between Tiers 2 and 3, which begin between 2006 and 2008, and 
Tier 4. Phasing in the Tier 4 standards for engines larger than 75 HP 
beginning in 2011 will provide adequate lead time for engine and 
equipment manufacturers, as well as diesel refiners. The Tier 4 
standards are also phased in over time to allow for the orderly 
transfer of technology from the highway sector, and to spread the 
overall workload for engine and equipment manufacturers engaged in 
redesigning a large number and variety of products. The approach of 
implementing Tier 4 standards over years 2011-2013 provides 4 to 6 
years of real world experience with the new technology in

[[Page 39886]]

the highway sector, involving millions of engines.
    The EPA believes that engines in the 175 to 750 HP power range will 
have the most straightforward adaptation of control technologies from 
the highway sector, and, therefore, these engines are subject to the 
Tier 4 standards as soon as ULSD is required, i.e., the 2011 model 
year. The EPA believes that engines 25 to 175 HP or greater than 750 HP 
may require a greater effort to adapt highway engine control 
technologies, and, therefore, the Tier 4 standards for these engines 
begin a year or two later than those for 175 to 750 HP. This phase-in 
of the limits will also spread the redesign workload for engine and 
equipment manufacturers.
    Engines larger than 750 HP have been given more lead time than 
engines in other power categories to fully implement the Tier 4 
standards, due primarily to the relatively long product design cycles 
typical of these high-cost, low-sales volume engines. For these large 
engines, the nonroad engine rule has limits for both genset 
applications and applications other than generator sets. The final Tier 
4 NOX standards for engines other than generator sets are 
less stringent than the final Tier 4 NOX standards for 
generator sets greater than 750 HP and are not based on the use of add-
on control.
    The EPA believes it would be inappropriate in general to require 
Tier 4-level standards for stationary engines earlier (or later) than 
they are required for nonroad engines. As indicated, the technologies 
expected to meet the Tier 4 standards require the use of ULSD fuel, 
which cannot be guaranteed in levels needed to meet the nonroad and 
stationary engine demand before year 2010. Also, the concerns discussed 
above regarding phase-in of the Tier 4 standards for nonroad engines 
are equally true for stationary engines. Additionally, given that 
nonroad and stationary engines are generally built to the same 
specifications, it would be needlessly costly and complicated to 
require different timing for the implementation of the technology for 
the nonroad and stationary sectors.
    However, EPA is requesting comments on one particular issue: 
whether it should apply the generator sets standards for NOX 
for all stationary CI engines greater than 750 HP and with a 
displacement less than 10 liters per cylinder. As noted above, the 
final Tier 4 NOX standards for engines other than generator 
sets are less stringent than the final Tier 4 NOX standards 
for generator sets greater than 750 HP and are not based on the use of 
add-on control. Given that stationary ICE tend generally to be larger 
than nonroad engines, the effect of these less stringent standards may 
be more significant for the stationary engine sector than for the 
nonroad engine sector. Also, given that some of the concern indicated 
in the nonroad rule regarding the ability of these engines to use 
aftertreatment may be related to their mobility, which is obviously not 
relevant for stationary engines, a more stringent standard may be 
appropriate for at least some types of non-generator set stationary 
engines above 750 HP. The EPA believes there may be technologies to 
allow more stringent standards for engines greater than 750 HP and with 
a displacement less than 10 liters per cylinder that are not generator 
sets and is, therefore, requesting public comment on this issue.
    The EPA is proposing that engine manufacturers certify their 2007 
through 2010 model year stationary CI ICE that are greater than 3,000 
HP and less than 10 liters per cylinder in displacement to the emission 
standards shown in table 2 of this preamble, which are essentially Tier 
1 nonroad CI engine standards. Although the nonroad CI engine rule, as 
proposed, requires engines greater than 1,200 HP to meet Tier 2 
emission standards, engine manufacturers indicated to EPA that they are 
unable to certify their stationary engines greater than 3,000 HP to 
Tier 2 emission standards according to the nonroad CI engine schedule, 
which applies to 2006 through 2010 model year engines. Engines greater 
than 3,000 HP with a displacement of less than 10 liters per cylinder 
are rarely used in nonroad applications, according to engine 
manufacturers, and those that are used are substantially different than 
the stationary engines of that size. These stationary engines have not 
been subject to the substantial research and development work needed to 
incorporate nonroad-based technologies. Manufacturers recommended that 
EPA allow manufacturers to meet Tier 1 standards in the interim years 
to allow manufacturers to focus on meeting the more stringent, Tier 4 
emission standards. The EPA believes that the suggestion from engine 
manufacturers is appropriate and is, therefore, proposing that 
stationary CI ICE greater than 3,000 HP and having a displacement less 
than 10 liters per cylinder be certified to the emission standards 
shown in table 2 of this preamble, followed by Tier 4 certification as 
shown in table 1 of this preamble, according to the nonroad CI engine 
schedule. These engines would not be certified to Tier 2 emission 
standards, but would go directly from being certified to Tier 1 
emission standards to being certified to Tier 4 emission standards.
    b. 2007 Model Year and Later Non-Emergency Stationary CI ICE With a 
Displacement >=10 and <30 Liters per Cylinder. The EPA is proposing 
that engine manufacturers who produce 2007 and later model year 
stationary CI ICE with a displacement of greater than or equal to 10 
liters per cylinder and less than 30 liters per cylinder certify their 
engines to the emission standards for new marine CI engines, as 
specified in 40 CFR 94.8. Engines in this displacement range, to the 
extent they are certified to mobile source standards, are generally 
certified to nonroad marine CI engine standards, and some to locomotive 
standards, not to land-based nonroad engine standards. The broadest 
application for engines in this displacement range is in the marine 
market, with sales also in the stationary and locomotive market. The 
engines are also more similar in design to marine engines than to land-
based nonroad engines and are operated differently compared to nonroad 
engines. Additionally, information received from the Engine 
Manufacturers Association (EMA) indicate that the number of stationary 
CI ICE with a displacement of greater than 10 liters per cylinder is 
very small. Only three manufacturers provide engines with such 
displacement to the stationary market and combined sell about eight 
such engines for stationary applications in the United States per year, 
according to EMA. The fraction of new stationary CI ICE of this 
displacement per year is negligible compared to the total number of new 
stationary CI ICE sold per year. The EPA, therefore, believes it is 
appropriate to require manufacturers to certify stationary CI ICE with 
a displacement between 10 and 30 liters per cylinder to the marine 
certification standards.
3. Owners and Operators
    a. Stationary CI ICE With a Displacement <30 Liters per Cylinder. 
Owners and operators that purchase 2007 model year and later engines 
with a displacement of less than 30 liters per cylinder that are not 
emergency fire pump engines must purchase stationary CI engines that 
have been certified to the emission standards in 40 CFR part 89, 40 CFR 
part 94, and 40 CFR part 1039, as applicable, for all pollutants. 
Owners and operators that purchase pre-2007 model year engines with a 
displacement of less than 10 liters per cylinder must purchase 
stationary CI engines that meet the emission standards in table 2 of 
this preamble. These standards are based on the Tier 1

[[Page 39887]]

limits for nonroad CI engines, and they are representative of the 
current emission levels for many stationary CI ICE. Owners and 
operators of pre-2007 model year engines with a displacement of greater 
than or equal to 10 and less than 30 liters per cylinder must meet the 
emission standards in 40 CFR 94.8(a)(1), which are the Tier 1 emission 
standards for marine CI engines.
    If in-use testing is conducted to demonstrate compliance, the owner 
and operator of engines with a displacement less than 30 liters per 
cylinder would be required to meet a less stringent emission standard, 
an NTE standard, which is 25 to 50 percent higher than the otherwise 
applicable emission standards. The EPA believes it is appropriate to 
allow owners and operators to use the NTE standard to help ensure that 
emissions are controlled over the wide range of speed and load 
combinations commonly experienced in-use. The EPA has similar NTE 
standards for nonroad diesel engines, highway heavy-duty diesel 
engines, CI marine engines, and nonroad SI engines.
    b. Stationary CI ICE With a Displacement >=30 liters per cylinder. 
Owners and operators of stationary CI ICE with a displacement of 
greater than or equal to 30 liters per cylinder are required to install 
controls on their engines that will reduce NOX emissions by 
at least 90 percent or limit the emissions of NOX to 0.40 
grams per KW-hour (0.30 grams per HP-hour). Emissions of PM must be 
reduced by at least 60 percent, or alternatively limited to 0.12 grams 
per KW-hour (0.09 grams per HP-hr). Engines of such displacement are 
much larger than nonroad engines and are not currently produced by 
United States engine manufacturers. In addition, these large engines 
tend to operate several thousands of hours per year and at constant 
speed and load as opposed to nonroad engines that normally operate for 
a few hundred hours per year and often at transient conditions. These 
large engines are not produced in mass quantities, and if any, only a 
few may be installed in the United States per year. For these reasons, 
EPA feels it is more appropriate to regulate the owners and operators 
of these engines and is not requiring manufacturers to certify these 
engines. The emission reduction requirement of 90 percent or more for 
NOX is based on the reduction capabilities of SCR. As 
previously mentioned, SCR can reduce NOX emissions by more 
than 90 percent from stationary CI engines. The NOX limit of 
0.40 grams per KW-hr is based on the NOX limits set by both 
the World Bank and the United Kingdom for large diesel engines. Capital 
and operating and maintenance costs associated with SCR are as noted 
high, however, EPA feels the high cost of SCR is justified when 
installed and operated with engines of significantly higher size and 
cost than nonroad and other stationary engines. A facility with such 
large engines will generally have the resources to implement and 
justify expensive add-on controls. Furthermore, power plant facilities 
typically have permit conditions that require significant emissions 
reductions. The requirement of 60 percent PM control or more is based 
on the capabilities of ESP. Information EPA has received from European 
manufacturers show that 60 to 70 percent PM reduction is possible with 
ESP control. The PM emission standard of 0.12 grams per KW-hour is 
based on information provided by vendors of ESP, who indicated that the 
technology is capable of achieving that level for oil-fired combustion 
sources. The EPA believes the emission reduction levels proposed are 
appropriate for engines of high displacement. The EPA did not set 
different limits for emergency engines in this size class because there 
are not expected to be any emergency engines with a displacement above 
30 liters per cylinder.
    c. Emergency Stationary Fire Pump Engines. Owners and operators of 
fire pump engines are required to meet the emission standards shown in 
table 4 of this preamble from July 1, 2006. The EPA is providing 
additional time for fire pumps to meet these emission standards in 
order to take account of the increased lead time needed to manufacture 
and certify fire pump engines to the National Fire Protection 
Association (NFPA) requirements, as discussed below. The EPA is 
providing between 2 to 3 years of additional time for emergency fire 
pumps to reach compliance with the Tier 3 emission standards. As 
previously noted, Tier 4 standards that are based on add-on controls 
are not required for emergency engines, which include emergency fire 
pump engines. The NFPA develops requirements associated with the fire 
protection industry. More specifically, an NFPA specification known as 
NFPA 20 contains standards for installation of stationary fire pumps 
for fire protection. Stationary fire pumps must be certified to NFPA 20 
standards in order to be installed in buildings and must go through an 
extensive process of design and development prior to becoming certified 
to the NFPA requirements. A period of up to 3 years is often necessary 
to develop a stationary CI engine into an emergency fire pump engine 
certified to the necessary NFPA requirements. This period includes time 
the engine manufacturer, as well as the fire pump manufacturer, needs 
to develop a product that not only meets EPA's emission standards 
requirements, but that also meets the requirements of NFPA, if it is to 
be used for fire suppression purposes and life safety. For these 
reasons, EPA believes it is appropriate to allow emergency fire pumps 
an additional 2 to 3 years to demonstrate compliance with the Tier 3 
emission standards. Emergency fire pumps would be required to meet Tier 
3 emission standards starting between the 2008 and 2011 model year, 
depending on the size of the engines, as indicated in table 4 of this 
preamble. High speed fire pump engines (those with a rated speed 
greater than 2,650 rpm) are allowed an additional 3 years to meet the 
Tier 3 standards. Manufacturers of stationary fire pump engines 
indicated that high speed engines are needed for applications where 
engines must run at high speeds to produce a required water pressure, 
and that additional time is needed to produce high speed engines that 
meet the Tier 3 emission levels.

F. What Are the Considerations for Modification and Reconstruction?

    Under the General Provisions for modification (40 CFR 60.14) and 
reconstruction (40 CFR 60.15), facilities that are modified or 
reconstructed after the date of proposal of a standard are subject to 
the standard. An owner or operator of an existing CI engine who is 
planning changes to the engine that could be considered modification or 
reconstruction shall notify the appropriate EPA Regional Office 60 days 
prior to making the changes or commencing construction, as applicable.
1. Modification
    Upon modification of a stationary CI engine, an existing engine 
becomes an affected engine and, therefore, subject to the standard. 
With certain exceptions, any physical or operational change to an 
existing stationary CI engine that would increase the emission rate 
from that engine of any pollutant covered by the standard would be 
considered a modification within the meaning of section 111 of the CAA. 
If a physical or operational change to an existing stationary engine 
would increase emissions from the engine, the owner or operator either 
can take appropriate measures to offset the emission increase within 
the engine such that there is no

[[Page 39888]]

overall net increase in emissions from the engine as a result of the 
physical or operational change, or allow the engine to be classified as 
an affected facility under the modification criteria and, therefore, 
meet the requirements of the NSPS.
    Under the General Provisions to part 60, the following physical or 
operational changes are not considered to be modifications even though 
emissions may increase as a result of the change (see Sec.  60.14(e)):
    (a) Routine maintenance, repair, and replacement (e.g., lubrication 
of mechanical equipment; replacement of pumps, motors, and piping; 
replacement of engine wear parts, such as rings, seals and valves, to 
return an engine to its original operating condition; cleaning of 
equipment);
    (b) An increase in engine power without a capital expenditure (as 
defined in Sec.  60.2);
    (c) An increase in the hours of operation;
    (d) Use of an alternative fuel or raw material if, prior to 
proposal of the standard, the existing engine was designed to 
accommodate that alternative fuel or raw material;
    (e) The addition or use of any system or device whose primary 
function is to reduce air pollutants, except when an emission control 
system is replaced by a system determined by the EPA to be less 
environmentally beneficial; and
    (f) Relocation or change in ownership of the existing engine.
2. Reconstruction
    An existing engine may become subject to NSPS if it is 
reconstructed. Reconstruction is defined in Sec.  60.15 as the 
replacement of the components of an existing engine to the extent that: 
(1) The fixed capital cost of the new components exceeds 50 percent of 
the fixed capital cost required to construct a comparable new engine; 
and (2) it is technically and economically feasible for the engine to 
meet the applicable standards. Because the EPA considers reconstructed 
engines to constitute new construction rather than modification, 
reconstruction determinations are made irrespective of changes in 
emission rates. If the engine is determined to be reconstructed, it 
must comply with all of the provisions of the standards of performance 
applicable to that engine.
    Stationary CI ICE that are modified or reconstructed must meet the 
emission standards for the model year in which the engine was 
originally new, not the year the engine was modified or reconstructed. 
Therefore, a pre-2007 model year engine modified after 2007 must meet 
the emission standards for pre-2007 model year engines.

G. How Did EPA Determine the Compliance Requirements for the Proposed 
Rule?

    Owners and operators of all engines subject to the proposed rule 
are required to operate and maintain their engine and control device 
according to the manufacturer's written instructions.
    The proposed rule requires that 2007 model year and later 
stationary CI engines affected by the NSPS be certified to the nonroad, 
or marine, where applicable, CI engine emission standards. For 
certified engines, the testing done by the manufacturer will serve to 
demonstrate compliance with the emission limitations on an initial and 
ongoing basis until the end of the engine's useful life.
    The EPA specified in the proposed rule that the certification 
testing for emergency fire pump engines can be conducted at the NFPA 
certified nameplate HP of the engine, provided that the engine 
manufacturer can certify that the engine will not be used in any 
application that allows higher HP and provided that the engine is not 
modified following testing. According to emergency fire pump engine 
manufacturers, NFPA 20 requires emergency fire pump engines to have 10 
percent more power capability than the certified nameplate rating of 
the engine. This additional power is never used. Therefore, the EPA 
feels it is appropriate to allow emergency fire pump engines to be 
tested at the nameplate power instead of the maximum engine power. 
Manufacturers of emergency fire pump engines are also allowed to use an 
optional 3-mode test cycle for the certification testing. Emergency 
fire pump engines do not idle and are never operated without load. The 
modes in this test cycle are sufficiently representative of the 
operation of emergency fire pump engines,
    For a pre-2007 model year engine having a displacement less than 30 
liters per cylinder, the owner or operator has various options for 
demonstrating compliance with the emission limitations. These options 
will provide flexibility to the engine owner or operator and provide 
assurance of compliance at a reasonable cost to the owner or operator.
    For owners and operators of stationary CI ICE that have CDPF, a 
backpressure monitor is required to be installed. This monitor will 
notify the owner or operator if the high backpressure limit of the 
engine is approached. The backpressure is an indicator of CDPF 
performance and can alert the owner or operator when it is time to 
clean or perform maintenance on the particulate filter. According to 
CDPF vendors, a backpressure monitor is typically included with the 
CDPF control device. The owner and operator is required to maintain 
records of any corrective action that is taken when the monitor is 
activated indicating a high backpressure. The owner and operator is not 
required to report each occurrence to the EPA, but must maintain 
records of corrective action taken, as indicated, and made available to 
the enforcing agency upon request.
    All owners and operators must keep records of any notifications, 
maintenance conducted on the engine, and compliance materials used to 
indicate that the engine meets the appropriate emission standards. The 
EPA is also requiring that emergency engines install a non-resettable 
hour meter. The owner or operator of the engine is required to keep 
records that document the number of hours the engine is operated for 
non-emergency purposes, but is not required to keep records relating to 
the number of hours operated during emergencies. Requiring 
documentation of the number of hours spent in non-emergency service 
ensures that records are available to the enforcing agency to verify 
that the emergency engine's operation during testing and maintenance is 
limited to 30 hours per year, which is required by the proposed rule. 
The EPA does not feel it is necessary for owners and operators to 
maintain records of operation during emergencies, as operation during 
true emergencies is not limited by the proposed rule. The EPA believes 
that most stationary CI ICE come equipped with an hour meter, and 
expects there to be minimal costs associated with this requirement.
    Owners and operators of stationary CI ICE with a displacement 
greater than or equal to 30 liters per cylinder are required to 
demonstrate compliance by first conducting an initial performance test 
to demonstrate that the emissions reductions requirements are met. 
Then, owners and operators of these engines must establish parameters 
to be monitored on a continuous basis. Finally, owners and operators of 
engines with a displacement at or above 30 liters per cylinder must 
conduct annual performance tests to demonstrate that the reduction 
requirements for NOX and PM are being met. As previously 
discussed in this preamble, engines of this displacement are not 
certified products and the compliance requirements would necessarily 
fall on the owner and operator of the engine.

[[Page 39889]]

The EPA believes it is appropriate to require initial, followed by 
subsequent annual performance testing to demonstrate compliance with 
the proposed rule. Conducting a performance test is the best way to 
ensure that the emission standards are being met. Monitoring parameters 
on a continuous basis will ensure that the engine meets the standards 
at all times.

H. How Did EPA Select the Methods for Performance Testing?

    The proposed NSPS for stationary CI ICE do not require the owners 
or operators to conduct performance tests unless the engine has a 
displacement greater than or equal to 30 liters per cylinder. The EPA 
expects that the majority of engines covered by the proposed NSPS will 
be certified to the nonroad or marine CI engine emission standards. The 
engine manufacturers guarantee that these engines will meet the 
certified emission levels throughout the useful life of the engine. The 
EPA, therefore, does not feel it is necessary to require any 
performance testing. Certain stationary engines will not be certified 
to the nonroad CI standards. For these engines with a displacement less 
than 30 liters per cylinder, EPA is allowing various options for 
demonstrating compliance as previously described. For such engines that 
choose to perform an initial performance test, the performance test 
must be conducted according to the requirements specified in the 
proposed NSPS. These testing requirements are based on the established 
program for testing nonroad CI engines. The enforcing agency may at any 
time at its discretion require that an engine be tested. If so, the 
performance test must be conducted in accordance with the requirements 
EPA has specified in the proposed rule. The EPA believes it is 
appropriate to allow owners and operators of non-certified engines with 
a displacement less than 30 liters per cylinder to use performance test 
results for a test conducted on a similar engine or information from 
the engine manufacturer or control device vendor to demonstrate 
compliance with the emission standards. The allowance applies only to 
owners and operators of pre-2007 model year stationary CI ICE. Starting 
in the 2007 model year, owners and operators are required to purchase 
certified engines. The allowance would, therefore, only affect a 
limited number of engines for a short interim period until certified 
engines are required. Furthermore, allowing owners and operators of 
pre-2007 model year engines to use the information discussed to 
demonstrate compliance minimizes the cost burden that would otherwise 
be associated with each owner and operator conducting a performance 
test to demonstrate compliance. For these reasons, EPA believes the 
allowance is appropriate.
    For stationary CI ICE with a displacement of greater than or equal 
to 30 liters per cylinder, EPA is requiring that owners and operators 
conduct performance testing. The performance tests will ensure that the 
required percent reductions of NOX and PM are achieved. The 
EPA is requiring that the concentration of NOX be measured 
using Method 7E of 40 CFR part 60, appendix A. Method 5 of 40 CFR part 
60, appendix A, must be used to measure the concentration of PM. If the 
percent reduction option is used, the concentration measurements of 
NOX and PM must be taken at the inlet and outlet of the 
control device in order to calculate the emission reduction. The 
proposed rule also requires that owners and operators of stationary CI 
ICE with a displacement of greater than or equal to 30 liters per 
cylinder use Method 1 or 1A for the selection of sampling ports and 
traverse points, Method 3, 3A, or 3B for determining the oxygen or 
carbon dioxide concentration, Method 4 for determining the moisture 
content (if necessary), and Method 19 for emission rates. The EPA feels 
it is appropriate to require owners and operators to use the test 
methods mentioned above when demonstrating compliance with the emission 
reduction requirements of the proposed rule.

I. How Were the Reporting and Recordkeeping Requirements Selected?

    The proposed notification, reporting, and recordkeeping 
requirements are based in part on the General Provisions of 40 CFR part 
60 and represent a reasonable level of reporting and recordkeeping.
    Owners and operators of non-emergency stationary CI ICE that are 
greater than 3,000 HP, greater than or equal to 10 liters per cylinder 
displacement, or pre-2007 model year engines greater than 175 HP and 
not certified, are required to submit an initial notification. The 
initial notification must contain the information described in the 
proposed rule and includes information related to the owner and 
operator, the engine and control device, and fuel used. If the engine 
is certified, the owner and operator must keep records from the 
manufacturer indicating that the engine is certified to meet the 
applicable standards. All owners and operators are also required to 
keep records of all notifications submitted to comply with the proposed 
rule, any maintenance conducted on the engine, records of any 
performance tests conducted used to demonstrate compliance with the 
emission standards, engine manufacturer or control device vendor 
information, operating parameter data that is used to demonstrate 
continuing compliance, and any other information used to demonstrate 
compliance.
    The proposed rule relies primarily on engine certification to 
achieve emission reductions from stationary CI ICE. Certified 
stationary CI engine families must go through rigorous testing and 
approval procedures and are warranted by the engine manufacturer to 
continue to achieve the certified engine emission levels for the useful 
life of the engine. Starting with 2007 model year engines, owners and 
operators will not be able to purchase a stationary CI engine that is 
not certified, except for the very largest engine families that have 
engines with a displacement of 30 liters per cylinder or more, which 
have conventional emission limitations and are not certified. As a 
result, initial notification by the owners and operators will not be 
required for all but the largest certified engines (engines larger than 
2,237 KW (3,000 HP) or with a displacement above 10 liters per 
cylinder) since certified engines have been shown to be able to achieve 
the intended emission limitations and are warranted by the engine 
manufacturer for its useful life. However, EPA is requesting comment on 
whether to require initial notification for smaller engines that are 
still large enough to be of substantial importance to local air quality 
management and not so small and numerous that a notification 
requirement would be a substantial burden on owners and operators, 
particularly private owners and small entities. If a commenter believes 
such notification is appropriate for smaller engines, we ask the 
commenter to address the size at which such notification would be 
appropriate.
    In the transition period, the period between rule proposal and 2007 
model year engines, it is expected that owners and operators of as many 
as 90 percent of the new stationary CI ICE purchased will be able to 
demonstrate that the engine is in an engine family that is certified 
for nonroad CI engine purposes. As a result, and for the same reasons 
as previously discussed for all but the largest certified stationary CI 
engines, an initial notification is not required. For those stationary 
CI engine families where there are no certified nonroad CI engines 
available, an initial notification is required for those stationary CI 
engines that are relatively large and those engines enforcing

[[Page 39890]]

agencies may want to keep track of individually.
    In the transition period, we are proposing that all new stationary 
CI engine families above 175 HP, which are not certified for CI nonroad 
engine use, provide an initial notification. Since we are not proposing 
to require certification for stationary engine families with a 
displacement of 30 liters per cylinder or more, these new engines will 
have to provide an initial notification.
    Owners and operators of stationary CI ICE that have CDPF are 
required to keep records of any corrective action taken after the 
backpressure monitor has activated and notified the owner or operator 
that the backpressure limit has been reached.
    Owners and operators of emergency engines are not required to 
submit an initial notification, but must keep records of the number of 
hours spent during non-emergencies through the use of a non-resettable 
hour meter. The EPA believes that maintaining records of these hours is 
a reasonable requirement and ensures compliance with the 30 hours per 
year limit for operation during maintenance and testing.

V. Summary of Environmental, Energy and Economic Impacts

A. What Are the Air Quality Impacts?

    The proposed rule will reduce NOX emissions from 
stationary CI ICE by an estimated 38,000 tpy, PM emissions by about 
3,000 tpy, NMHC emissions by about 600 tpy, SO2 emissions by 
an estimated 9,000 tpy, and CO emissions by approximately 18,000 tpy in 
the year 2015. Reductions are presented for the year 2015 because it is 
the model year for which certified stationary CI ICE would have to meet 
the final Tier 4 emission standards. The EPA estimates that 
approximately 81,500 stationary CI ICE will be affected by the proposed 
rule in the year 2015. Of these, the EPA estimates that 20 percent are 
used in non-emergency applications. The EPA does not expect there to be 
any stationary CI ICE with a displacement of 30 liters per cylinder or 
more, and, therefore, no emissions or emissions reductions have been 
estimated. A secondary impact of the proposed rule is the reduction of 
HAP that will result from the use of CDPF. The EPA estimates that 
emissions of HAP will be reduced by approximately 93 tons in the year 
2015.

B. What Are the Cost Impacts?

    The total costs of the proposed rule are mostly based on the cost 
associated with purchasing and installing NOX adsorber and 
CDPF controls on non-emergency stationary CI ICE. A smaller portion of 
the total costs are attributed to the cost of reporting and the cost 
for performance testing for a portion of the pre-2007 model year 
engines. The cost of NOX adsorber and CDPF were based on 
information developed for the nonroad rule for diesel engines. The EPA 
does not expect that any stationary CI ICE with a displacement of 30 
cylinders or more would be installed in the U.S. and, therefore, no 
costs have been estimated. However, if stationary CI ICE of such 
displacement are installed, there would be associated notification and 
compliance testing costs. Further information on how EPA estimated the 
total costs of the proposed rule can be found in a memorandum included 
in the docket (Docket ID. No. OAR-2005-0029).
    The total national capital cost for the proposed rule is estimated 
to be approximately $67 million in the year 2015, with a total national 
annual cost of $57 million in the year 2015. The year 2015 is model 
year for which all stationary CI ICE would have to meet the final Tier 
4 emission standards.

C. What Are the Economic Impacts?

    The proposed rule affects new sources of nonroad stationary diesel 
engines as part of generator sets and welding equipment, pump and 
compressor equipment, and irrigation equipment. We performed an 
economic impact analysis, whose methodology is based on that for the 
nonroad diesel engine rule promulgated by the Agency last year, that 
estimates changes in prices and output for affected sources using the 
annual compliance costs estimated for the proposed rule. All estimates 
are for year 2015, since this is the year for which the compliance cost 
impacts are estimated.
    The increases in price estimated for this equipment are the 
following: 2.3 percent--irrigation systems, 4.3 percent--pumps and 
compressors, and 10.0 percent--generator sets and welding equipment. 
While these price increases appear substantial, the corresponding 
reductions in output are quite small. They are: 0.01 percent--
irrigation systems, 0.03 percent--pumps and compressors, and 0.42 
percent--generator sets and welding equipment. The price increases and 
reductions in output were larger for smaller sized engines when 
compared to larger sized ones. These small reductions in output are due 
to limited change in demand from consumers in response to the estimated 
price changes as based on market data utilized in the nonroad rule 
economic impact analysis. The overall total annual social costs, which 
reflect changes in consumer and producer behavior in response to the 
compliance costs, are $39.1 million (2002 dollars) or almost identical 
to the compliance costs.
    The economic impacts are relatively small since the change in 
expected output from affected industries will be quite small. Thus, the 
industries producing the affected engines and the consumers who would 
use these engines will experience little or no impact as a result of 
the proposed rule.
    For more information, please refer to the economic impact analysis 
report that is in the public docket for the proposed rule.

D. What Are the Non-Air Health, Environmental and Energy Impacts?

    The EPA does not anticipate any significant non-air health, 
environmental or energy impacts as a result of the proposed rule.

VI. Solicitation of Comments and Public Participation

    The EPA seeks full public participation in arriving at its final 
decisions, and strongly encourages comments on all aspects of the 
proposed rule from all interested parties. Whenever applicable, full 
supporting data and detailed analysis should be submitted to allow the 
EPA to make maximum use of the comments. The Agency invites all parties 
to coordinate their data collection activities with the EPA to 
facilitate mutually beneficial and cost-effective data submissions.
    Specifically, we request comments on whether we should apply the 
generator standards for NOX for non-emergency stationary ICE 
greater than 750 HP. The proposed standards for non-generators are not 
based on the use of add-on control and are less stringent than the 
proposed standards for generator sets. We believe there may be 
technologies available to allow us to set more stringent standards for 
non-generators and request public comment on this issue.
    We are also requesting comment on the appropriateness of including 
the exemption provisions of 40 CFR 1068.240, which relate to 
replacement engines. We do not necessarily believe that an exemption 
for replacement engines is entirely needed and expect that such an 
exemption would be more appropriate for nonroad engines. Although we do 
not anticipate that stationary engines will require this exemption, we 
are asking the public for comment on this issue. We also ask comment on 
whether the other exemption provisions of that subpart are appropriate 
for stationary engines.

[[Page 39891]]

    We are requesting comment on whether owners and operators of 
stationary ICE with a displacement of 30 liters per cylinder or more 
should be required to use ULSD fuel. As indicated earlier in this 
preamble, we believe that these stationary CI ICE should be able to use 
ULSD fuel, however, we are asking for public comment on this issue.
    We are also requesting comment on the agency's conclusion that the 
best demonstrated technology for the sources regulated under the 
proposed rule includes an ABT program with emissions limitations that 
reflect EPA's understanding of technology. We also invite comments from 
interested parties on our decision that the limitations should be 
applied at the manufacturer level to various product lines.
    Finally, we request public comment on the proposed emission 
standards for stationary CI ICE with a displacement of 30 liters per 
cylinder or greater. We are requesting any PM emissions test data 
available from stationary CI ICE that are using ESP to reduce 
emissions. If you submit PM emissions tests data, please submit the 
full and complete emission test report with these data. The information 
submitted to EPA should include sections describing the stationary CI 
engine and its operation during the test as well as identifying the 
stationary CI engine for purposes of verification, description of the 
emission control device, fuel used, discussion of the test methods 
employed and the quality assurance/quality control procedures followed, 
the raw data sheets, all the calculations, etc.

VII. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), we must 
determine whether a regulatory action is ``significant'' and, 
therefore, subject to review by the Office of Management and Budget 
(OMB) and the requirements of the Executive Order. The Executive Order 
defines ``significant regulatory action'' as one that is likely to 
result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, OMB has notified 
EPA that it considers this a ``significant regulatory action'' within 
the meaning of the Executive Order. EPA has submitted this action to 
OMB for review. Changes made in response to OMB suggestions or 
recommendations will be documented in the public record.

B. Paperwork Reduction Act

    The information collection requirements in the proposed rule have 
been submitted for approval to OMB under the Paperwork Reduction Act, 
44 U.S.C. 3501 et seq. The Information Collection Request (ICR) 
document prepared by EPA has been assigned EPA ICR number 2196.01.
    The information requirements are based on notification, 
recordkeeping, and reporting requirements in the NSPS General 
Provisions (40 CFR part 60, subpart A), which are mandatory for all 
operators subject to national emission standards. These recordkeeping 
and reporting requirements are specifically authorized by section 114 
of the CAA (42 U.S.C. 7414). All information submitted to EPA pursuant 
to the recordkeeping and reporting requirements for which a claim of 
confidentiality is made is safeguarded according to Agency policies set 
forth in 40 CFR part 2, subpart B.
    The proposed rule will require maintenance inspections of the 
control devices but will not require any notifications or reports 
beyond those required by the General Provisions. The recordkeeping 
requirements require only the specific information needed to determine 
compliance.
    The annual monitoring, reporting, and recordkeeping burden for this 
collection (averaged over the first 3 years after the effective date of 
the final rule) is estimated to be 145,000 labor hours per year at a 
total annual cost of $9,593,700. This estimate includes a one-time 
notification, engine certification, and recordkeeping. There are no 
capital/start-up costs associated with the monitoring requirements over 
the 3-year period of the ICR. The operation and maintenance costs for 
the monitoring requirements over the 3-year period of the ICR are 
estimated to be $242,300 per year.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An Agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.
    To comment on the Agency's need for this information, the accuracy 
of the provided burden estimates, and any suggested methods for 
minimizing respondent burden, including the use of automated collection 
techniques, EPA has established a public docket for this rule, which 
includes this ICR, under Docket ID number OAR-2005-0029. Submit any 
comments related to the ICR for this proposed rule to EPA and OMB. See 
Addresses section at the beginning of this notice for where to submit 
comments to EPA. Send comments to OMB at the Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th Street, 
NW., Washington, DC 20503, Attention: Desk Office for EPA. Since OMB is 
required to make a decision concerning the ICR between 30 and 60 days 
after July 11, 2005, a comment to OMB is best assured of having its 
full effect if OMB receives it by August 10, 2005. The final rule will 
respond to any OMB or public comments on the information collection 
requirements contained in this proposal.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act 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 not-for-

[[Page 39892]]

profit enterprises, and small governmental jurisdictions.
    For the purposes of assessing the impacts of the proposed rule on 
small entities, small entity is defined as a small business based on 
the following Small Business Administration small business size 
definitions that are based on employee size: NAICS 335312--Motor and 
Generator Manufacturing--1,000 employees; NAICS 333911--Pump and 
Pumping Equipment Manufacturing--500 employees; NAICS 333912--Air and 
Gas Compressor Manufacturing--500 employees; NAICS 333992--Welding and 
Soldering Equipment Manufacturing--500 employees. In addition, a small 
governmental jurisdiction is defined as a government of a city, county, 
town, school district or special district with a population of less 
than 50,000, and a small organization is defined as 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 proposal on small 
entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. The small 
entities directly regulated by the proposed rule are businesses within 
the NAICS codes mentioned above. There are 104 ultimate parent 
businesses that will be affected by the proposal. Sixty of these 
businesses are small according to the SBA small business size 
standards. Four of these sixty firms will have an annualized compliance 
cost of more than 1 percent of sales associated with meeting the 
requirements of the proposed rule, and one of these four will have an 
compliance cost of more than 3 percent of sales. For more information 
on the small entity impacts, please refer to the economic impact and 
small business analyses in the rulemaking docket.
    Although the proposed rule will not have a significant economic 
impact on a substantial number of small entities, EPA nonetheless tried 
to reduce the impact of the proposed rule on small entities. A majority 
of the affected facilities are primarily small entities (e.g., small 
businesses). When developing the proposed rule, EPA took special steps 
to ensure that the burdens imposed on small entities were reasonable.
    The EPA is including the same provisions for small manufacturers 
and small refiners that the nonroad CI engine rule does. The EPA is 
helping small entities by providing a lead time for the required 
emission standards and fuel requirements. Owners and operators of non-
emergency stationary CI ICE are subject to minimum reporting and owners 
and operators of emergency stationary CI ICE do not have to submit any 
reports. The EPA has also specifically worked with industry to provide 
special provisions for emergency fire pump engine manufacturers, some 
of which are small businesses, to develop a proposed rule that is 
achievable for this segment.
    Following the publication of the promulgated rule, copies of the 
Federal Register notice and, in some cases, background documents are 
mailed to all industries and organizations who have had input during 
the regulation development and to relevant State and local agencies. 
Trade Associations distributed copies of the Federal Register action to 
their members. We continue to be interested in the potential impacts of 
the proposed rule on small entities and welcome comments on issues 
related to such impacts.

D. Unfunded Mandates Reform Act of 1995

    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 by State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more in any 
1 year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires the 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 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.
    The EPA has determined that today's proposed rule does not contain 
a Federal mandate that may result in expenditures of $100 million or 
more for State, local, and tribal governments, in the aggregate, or the 
private sector in any 1 year. Thus, today's proposed rule is not 
subject to the requirements of sections 202 and 205 of the UMRA. In 
addition, EPA has determined that the proposed rule contains no 
regulatory requirements that might significantly or uniquely affect 
small governments because it contains no requirements that apply to 
such governments or impose obligations upon them. Therefore, the 
proposed rule is not subject to the requirements of section 203 of the 
UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999) requires us 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.''
    The proposed rule does not have federalism implications. It will 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. The proposed rule primarily 
affects private industry, and does not impose significant economic 
costs on State or local governments. Thus, Executive Order 13132 does 
not apply to the proposed rule. In the spirit of Executive Order 13132, 
and consistent with EPA policy to promote communications between EPA 
and State and local governments, EPA specifically solicits comment on 
the proposed rule from State and local officials.

[[Page 39893]]

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.''
    The proposed 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. 
Thus, Executive Order 13175 does not apply to the proposed rule.

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

    Executive Order 13045, entitled ``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 we have reason to believe 
may have a disproportionate effect on children. If the regulatory 
action meets both criteria, we must 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.
    We interpret Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Executive Order has 
the potential to influence the regulation. The proposed rule is not 
subject to Executive Order 13045 because it is based on technology 
performance and not on health or safety risks.

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

    The proposed 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 basis 
for this determination is provided below.
    The economic impact analysis (EIA) estimates changes in prices and 
production levels for all energy markets (i.e., petroleum, natural gas, 
electricity, and coal). We also estimate how changes in the energy 
markets will impact other users of energy, with a focus on those that 
would employ the non-emergency stationary CI engines affected by the 
proposed rule. The estimated increase in demand for ultra-low sulfur 
diesel fuel (ULSD) in 2015 (the year for which the impacts of the 
proposed rule are estimated) associated with the proposed rule is 63.2 
million gallons, or 1,505 million barrels for that year. This amount is 
equivalent to 4,123 barrels per day additional demand of ULSD. The 
expected increase in demand for ULSD will not likely be a difficulty 
for refiners to meet in 2015. Hence, no significant adverse effect on 
the supply of this fuel is expected from implementation of the proposed 
rule. All impact estimates for other types of energy are below the 
thresholds that must be evaluated under this Executive Order, and no 
adverse effects are expected to the distribution and use of energy. The 
estimates contained within the EIA thus show that there is no 
significant adverse effect on the supply, distribution, or use of 
energy associated with the proposed rule.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act (NTTAA) of 1995 (Pub. L. 104-113, Section 12(d), 15 U.S.C. 272 
note) directs the EPA to use voluntary consensus standards in their 
regulatory and procurement activities unless to do so would be 
inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, business practices) 
developed or adopted by one or more voluntary consensus bodies. The 
NTTAA directs EPA to provide Congress, through annual reports to the 
OMB, with explanations when an agency does not use available and 
applicable voluntary consensus standards.
    The proposed rule involves technical standards. The EPA cites the 
standard test procedures in 40 CFR part 1039, subpart F, which in turn 
cites the procedures in 40 CFR part 1065, 40 CFR 86.1310 for full flow 
dilution, 40 CFR 89.412 to 418 for raw-gas sampling using steady-state 
tests, 40 CFR 89.112(c) for partial-flow sampling for gaseous emissions 
during steady-state tests, California Regulations for New 1996 and 
Later Heavy-duty Off-Road Diesel Cycle Engines, 40 CFR 89.112 c), 40 
CFR part 86 subpart N (7/1/99), and 40 CFR 86.1309 for nonpetroleum 
diesel fuel. The procedures in 40 CFR part 1065 also allow any CARB or 
International Organization for Standardization (ISO) standard if shown 
to be equivalent. Other test methods cited in the proposed rule are EPA 
Methods 1, 1A, 3, 3A, 3B, 4, 5, and 7E of 40 CFR part 60, appendix A.
    Consistent with the NTTAA, the EPA conducted searches to identify 
voluntary consensus standards in addition to these methods. One 
voluntary consensus standard was found that is potentially applicable 
to the methods cited. This standard is not acceptable as an alternative 
as written, but may be acceptable if minor adjustments are made to the 
procedures. The EPA invites comments on the use of this ISO standard 
for today's proposed rule.
    The voluntary consensus standard ISO 8178-1:1996, ``Reciprocating 
ICE--Exhaust Emission Measurement--Part 1: Test-bed Measurement of 
Gaseous and Particulate Exhaust Emissions,'' is not acceptable as an 
alternative to the test procedures in Sec. Sec.  60.4212 and 60.4213 of 
the proposed rule (specifically 40 CFR 86.1310) for the following 
reasons. Although ISO 8178-1:1996 has many of the features of the EPA 
test procedures, the ISO standard allows the gaseous measurements to be 
made in an undiluted sample whereas the EPA procedures in 40 CFR 
86.1310 require at least one dilution of the sample. The ISO method 
does allow the gaseous measurements to be made during the double 
diluted sampling procedures for particulate matter, but it is not 
required by the ISO method. Also, in the measurement of hydrocarbons, 
the ISO method only specifies that the sample lines are to be 
maintained above 70 [deg]C and advises that the flow capacity of the 
sample lines is used to prevent condensation. In the EPA procedures in 
40 CFR 86.1310, the sample lines must

[[Page 39894]]

be maintained at 191 [deg]C during the hydrocarbon tests to prevent 
condensation.
    Sections 60.4212 and 60.4213 of the proposed rule lists the testing 
methods included in the regulation. Under Sec. Sec.  60.8 and 60.13 of 
subpart A of the General Provisions, a source may apply to EPA for 
permission to use alternative test methods or alternative monitoring 
requirements in place of any required testing methods, performance 
specifications, or procedures.

List of Subjects

40 CFR Part 60

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Intergovernmental relations, Nitrogen oxides, 
Particulate matter, Reporting and recordkeeping requirements.

40 CFR Part 85

    Environmental protection, Imports, Labeling, Motor vehicle 
pollution, Reporting and recordkeeping requirements, Research, 
Warranties.

40 CFR Part 89

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

40 CFR Part 94

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

40 CFR Part 1039

    Environmental protection, Administrative practice and procedure, 
Air pollution control.

40 CFR Part 1065

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

40 CFR Part 1068

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

    Dated: June 29, 2005.
Stephen L. Johnson,
Administrator.

    For the reasons stated in the preamble, title 40, chapter I, part 
60, of the Code of Federal Regulations is proposed to be amended to 
read as follows:

PART 60--[AMENDED]

    1. The authority citation for part 60 continues to read as follows:

    Authority: 42 U.S.C. 7401, et seq.

    2. Part 60 is amended by adding subpart IIII to read as follows:

Subpart IIII--Standards of Performance for Stationary Compression 
Ignition Internal Combustion Engines

Sec.

What This Subpart Covers

60.4200 Am I subject to this subpart?

Emission Standards for Manufacturers

60.4201 What emission standards must I meet for non-emergency 
engines if I am a stationary CI internal combustion engine 
manufacturer?
60.4202 What emission standards must I meet for emergency engines if 
I am a stationary CI internal combustion engine manufacturer?
60.4203 How long must my engines meet the emission standards if I am 
a stationary CI internal combustion engine manufacturer?

Emission Standards for Owners and Operators

60.4204 What emission standards must I meet for non-emergency 
engines if I am an owner or operator of a stationary CI internal 
combustion engine?
60.4205 What emission standards must I meet for emergency engines if 
I am an owner or operator of a stationary CI internal combustion 
engine?
60.4206 How long must I meet the emission standards if I am an owner 
or operator of a stationary CI internal combustion engine?

Fuel Requirements for Owners and Operators

60.4207 What fuel requirements must I meet if I am an owner or 
operator of a stationary CI internal combustion engine?

Other Requirements for Owners and Operators

60.4208 What is the deadline for purchasing stationary CI ICE 
produced in the previous model year?
60.4209 What are the monitoring requirements if I am an owner or 
operator of a stationary CI internal combustion engine?

Compliance Requirements

60.4210 What are my compliance requirements if I am a stationary CI 
internal combustion engine manufacturer?
60.4211 What are my compliance requirements if I am an owner or 
operator of a stationary CI internal combustion engine?

Testing Requirements for Owners and Operators

60.4212 What test methods and other procedures must I use if I am an 
owner or operator of a stationary CI internal combustion engine with 
a displacement of less than 30 liters per cylinder?
60.4213 What test methods and other procedures must I use if I am an 
owner or operator of a stationary CI internal combustion engine with 
a displacement of greater than or equal to 30 liters per cylinder?

Notification, Reports, and Records for Owners and Operators

60.4214 What are my notification, reporting, and recordkeeping 
requirements if I am an owner or operator of a stationary CI 
internal combustion engine?

Special Requirements

60.4215 What requirements must I meet for engines used in Guam, 
American Samoa, or the Commonwealth of the Northern Mariana Islands?

Definitions

60.4216 What definitions apply to this subpart?

Tables to Subpart IIII of Part 60

Table 1 to Subpart IIII of Part 60.--Emission Standards for 
Stationary Pre-2007 Model Year Engines with a displacement of <10 
liters per cylinder and 2007-2010 Model Year Engines >2,237 KW 
(3,000 HP) and with a displacement of <10 liters per cylinder.
Table 2 to Subpart IIII of Part 60.--Emission Standards for 
Stationary Fire Pump Engines
Table 3 to Subpart IIII of Part 60.--Labeling Requirements for New 
Stationary Emergency Engines
Table 4 to Subpart IIII of Part 60.--Optional 3-Mode Test Cycle for 
Stationary Fire Pump Engines
Table 5 to Subpart IIII of Part 60.--Requirements for Performance 
Tests for Stationary CI ICE with a displacement of >=30 liters per 
cylinder

Subpart IIII--Standards of Performance for Stationary Compression 
Ignition Internal Combustion Engines

What This Subpart Covers


Sec.  60.4200  Am I subject to this subpart?

    The provisions of this subpart are applicable to all owners or 
operators of stationary compression ignition (CI) internal combustion 
engines (ICE) that commence construction, modification or 
reconstruction after July 11, 2005 and to manufacturers of 2007 and 
later model year CI ICE. For the purposes of this subpart, the date of 
construction is the date the engine is ordered by the owner or 
operator, except that (a) stationary CI ICE that are not fire pump 
engines and are manufactured prior to April 1, 2006 shall not be 
considered constructed after

[[Page 39895]]

July 11, 2005; and (b) stationary CI ICE that are fire pump engines and 
are manufactured prior to July 1, 2006 shall not be considered 
constructed after July 11, 2005.

Emission Standards for Manufacturers


Sec.  60.4201  What emission standards must I meet for non-emergency 
engines if I am a stationary CI internal combustion engine 
manufacturer?

    (a) Stationary CI internal combustion engine manufacturers must 
certify their 2007 model year and later non-emergency stationary CI ICE 
with a maximum engine power less than or equal to 2,237 kilowatt (KW) 
(3,000 horsepower (HP)) and a displacement of less than 10 liters per 
cylinder to the certification emission standards for new nonroad CI 
engines in 40 CFR 89.112, 40 CFR 89.113, 40 CFR 1039.101, 40 CFR 
1039.102, 40 CFR 1039.104, 40 CFR 1039.105, 40 CFR 1039.107, and 40 CFR 
1039.115, as applicable, for all pollutants, for the same model year 
and maximum engine power.
    (b) Stationary CI internal combustion engine manufacturers must 
certify their 2007 through 2010 model year non-emergency stationary CI 
ICE with a maximum engine power greater than 2,237 KW (3,000 HP) and a 
displacement of less than 10 liters per cylinder to the emission 
standards in table 1 of this subpart, for all pollutants, for the same 
maximum engine power.
    (c) Stationary CI internal combustion engine manufacturers must 
certify their 2011 model year and later non-emergency stationary CI ICE 
with a maximum engine power greater than 2,237 KW (3,000 HP) and a 
displacement of less than 10 liters per cylinder to the certification 
emission standards for new nonroad CI engines in 40 CFR 1039.101, 40 
CFR 1039.102, 40 CFR 1039.104, 40 CFR 1039.105, 40 CFR 1039.107, and 40 
CFR 1039.115, as applicable, for all pollutants, for the same maximum 
engine power.
    (d) Stationary CI internal combustion engine manufacturers must 
certify their 2007 model year and later non-emergency stationary CI ICE 
with a displacement of greater than or equal to 10 liters per cylinder 
and less than 30 liters per cylinder to the certification emission 
standards for new marine CI engines in 40 CFR 94.8, as applicable, for 
all pollutants, for the same displacement and maximum engine power.


Sec.  60.4202  What emission standards must I meet for emergency 
engines if I am a stationary CI internal combustion engine 
manufacturer?

    (a) Stationary CI internal combustion engine manufacturers must 
certify their 2007 model year and later emergency stationary CI ICE 
with a maximum engine power less than or equal to 2,237 KW (3,000 HP) 
and a displacement of less than 10 liters per cylinder that are not 
fire pump engines to the certification emission standards for new 
nonroad CI engines for the same model year and maximum engine power in 
40 CFR 89.112 and 40 CFR 89.113 for all pollutants beginning in model 
year 2007, the first line of table 1 of 40 CFR 1039.101 for all 
pollutants for engines with a maximum engine power less than 19 KW (25 
HP) beginning in the 2015 model year, the second line of table 1 of 40 
CFR 1039.101 for NOX + NMHC and CO for engines with a 
maximum engine power greater than or equal to 19 KW (25 HP) and less 
than 56 KW (75 HP) beginning in the 2015 model year, table 1 of 40 CFR 
1039.102 for all pollutants for engines with a maximum engine power 
less than 19 KW (25 HP) from model years 2008 to 2014, the first line 
of table 2 of 40 CFR 1039.102 for all pollutants for engines with a 
maximum engine power greater than or equal to 19 KW (25 HP) and less 
than 37 KW (50 HP) from model years 2008 to 2014 (2008 and all later 
model years for PM), and the first line of table 3 of 40 CFR 1039.102 
for all pollutants for engines with a maximum engine power greater than 
or equal to 37 KW (50 HP) and less than 56 KW (75 HP) from model years 
2012 to 2014 (2008 and all later model years for PM).
    (b) Stationary CI internal combustion engine manufacturers must 
certify their 2007 through 2010 model year emergency stationary CI ICE 
with a maximum engine power greater than 2,237 KW (3,000 HP) and a 
displacement of less than 10 liters per cylinder that are not fire pump 
engines to the emission standards in table 1 of this subpart, for all 
pollutants, for the same maximum engine power.
    (c) Stationary CI internal combustion engine manufacturers must 
certify their 2011 model year and later emergency stationary CI ICE 
with a maximum engine power greater than 2,237 KW (3,000 HP) and a 
displacement of less than 10 liters per cylinder that are not fire pump 
engines to the certification emission standards for new nonroad CI 
engines for engines of the same model year and maximum engine power in 
40 CFR 89.112 and 40 CFR 89.113 for all pollutants beginning in model 
year 2011.
    (d) Stationary CI internal combustion engine manufacturers must 
certify their 2007 model year and later emergency stationary CI ICE 
with a displacement of greater than or equal to 10 liters per cylinder 
and less than 30 liters per cylinder that are not fire pump engines to 
the certification emission standards for new marine CI engines in 40 
CFR 94.8, as applicable, for all pollutants, for the same displacement 
and maximum engine power.
    (e) Stationary CI internal combustion engine manufacturers must 
certify their 2007 model year and later fire pump stationary CI ICE to 
the emission standards in table 2 of this subpart, for all pollutants, 
for the same model year and maximum engine power.


Sec.  60.4203  How long must my engines meet the emission standards if 
I am a stationary CI internal combustion engine manufacturer?

    Engines manufactured by stationary CI internal combustion engine 
manufacturers must meet the emission standards as required in 
Sec. Sec.  60.4201 and 60.4202 during the useful life of the engines.

Emission Standards for Owners and Operators


Sec.  60.4204  What emission standards must I meet for non-emergency 
engines if I am an owner or operator of a stationary CI internal 
combustion engine?

    (a) Owners and operators that purchase pre-2007 model year non-
emergency stationary CI ICE with a displacement of less than 10 liters 
per cylinder must comply with the emission standards in table 1 of this 
subpart. Owners and operators that purchase pre-2007 model year non-
emergency stationary CI ICE with a displacement of greater than or 
equal to 10 liters per cylinder and less than 30 liters per cylinder 
must comply with the emission standards in 40 CFR 94.8(a)(1).
    (b) Owners and operators that purchase 2007 model year and later 
non-emergency stationary CI ICE with a displacement of less than 30 
liters per cylinder must comply with the emission standards for new CI 
engines in Sec.  60.4201 for their 2007 model year and later stationary 
CI ICE, as applicable.
    (c) Owners and operators of non-emergency stationary CI ICE with a 
displacement of greater than or equal to 30 liters per cylinder must 
meet the requirements in paragraphs (c)(1) and (2) of this section.
    (1) Reduce nitrogen oxides (NOX) emissions by 90 percent 
or more, or limit the emissions of NOX in the stationary CI 
internal combustion

[[Page 39896]]

engine exhaust to 0.40 grams per KW-hour (0.30 grams per HP-hour).
    (2) Reduce particulate matter (PM) emissions by 60 percent or more, 
or limit the emissions of PM in the stationary CI internal combustion 
engine exhaust to 0.12 grams per KW-hour (0.09 grams per HP-hour).


Sec.  60.4205  What emission standards must I meet for emergency 
engines if I am an owner or operator of a stationary CI internal 
combustion engine?

    (a) Owners and operators that purchase pre-2007 model year 
emergency stationary CI ICE with a displacement of less than 10 liters 
per cylinder that are not fire pump engines must comply with the 
emission standards in table 1 of this subpart. Owners and operators 
that purchase pre-2007 model year non-emergency stationary CI ICE with 
a displacement of greater than or equal to 10 liters per cylinder and 
less than 30 liters per cylinder that are not fire pump engines must 
comply with the emission standards in 40 CFR 94.8(a)(1).
    (b) Owners and operators that purchase 2007 model year and later 
emergency stationary CI ICE with a displacement of less than 30 liters 
per cylinder that are not fire pump engines must comply with the 
emission standards for new nonroad CI engines in Sec.  60.4202, for all 
pollutants, for the same model year and maximum engine power for their 
2007 model year and later emergency stationary CI ICE.
    (c) Owners and operators that purchase fire pump engines with a 
displacement of less than 30 liters per cylinder must comply with the 
emission standards in table 2 of this subpart, for all pollutants.
    (d) Owners and operators of emergency stationary CI ICE with a 
displacement of greater than or equal to 30 liters per cylinder must 
meet the requirements in paragraphs (d)(1) and (2) of this section.
    (1) Reduce nitrogen oxides (NOX) emissions by 90 percent 
or more, or limit the emissions of NOX in the stationary CI 
internal combustion engine exhaust to 0.40 grams per KW-hour (0.30 
grams per HP-hour).
    (2) Reduce particulate matter (PM) emissions by 60 percent or more, 
or limit the emissions of PM in the stationary CI internal combustion 
engine exhaust to 0.12 grams per KW-hour (0.09 grams per HP-hour).


Sec.  60.4206  How long must I meet the emission standards if I am an 
owner or operator of a stationary CI internal combustion engine?

    Owners and operators of stationary CI ICE must operate and maintain 
stationary CI ICE that achieve the emission standards as required in 
Sec. Sec.  60.4204 and 60.4205 according to the manufacturer's written 
instructions over the entire life of the engine.

Fuel Requirements for Owners and Operators


Sec.  60.4207  What fuel requirements must I meet if I am an owner or 
operator of a stationary CI internal combustion engine?

    (a) Beginning October 1, 2007, owners and operators of stationary 
CI ICE that use diesel fuel must use diesel fuel that meets the 
requirements of 40 CFR 80.510(a).
    (b) Beginning October 1, 2010, owners and operators of stationary 
CI ICE that use diesel fuel must use diesel fuel that meets the 
requirements of 40 CFR 80.510(b).

Other Requirements for Owners and Operators


Sec.  60.4208  What is the deadline for purchasing stationary CI ICE 
produced in the previous model year?

    (a) Owners and operators may not install pre-2007 model year 
stationary CI ICE after June 30, 2007.
    (b) Owners and operators may not install pre-2008 model year 
stationary CI ICE with a maximum engine power of less than 19 KW (25 
HP) after June 30, 2008.
    (c) Owners and operators may not install pre-2013 model year non-
emergency stationary CI ICE with a maximum engine power of greater than 
or equal to 19 KW (25 HP) and less than 56 KW (75 HP) after June 30, 
2013.
    (d) Owners and operators may not install pre-2012 model year non-
emergency stationary CI ICE with a maximum engine power of greater than 
or equal to 56 KW (75 HP) and less than 130 KW (175 HP) after June 30, 
2012.
    (e) Owners and operators may not install pre-2011 model year non-
emergency stationary CI ICE with a maximum engine power of greater than 
or equal to 130 KW (175 HP) after June 30, 2011, including those above 
560 KW (750 HP).
    (f) Owners and operators may not install pre-2015 model year non-
emergency stationary CI ICE with a maximum engine power of greater than 
or equal to 560 KW (750 HP) after June 30, 2015.
    (g) The requirements of this section do not apply to owners and 
operators of stationary CI ICE that have been modified or 
reconstructed.


Sec.  60.4209  What are the monitoring requirements if I am an owner or 
operator of a stationary CI internal combustion engine?

    (a) If you are an owner or operator of an emergency stationary CI 
internal combustion engine, you must install a non-resettable hour 
meter prior to startup of the engine.
    (b) If you are an owner or operator of a stationary CI internal 
combustion engine equipped with a diesel particulate filter to comply 
with the emission standards in Sec.  60.4204, the diesel particulate 
filter must be installed with a backpressure monitor that notifies the 
owner or operator when the high backpressure limit of the engine is 
approached.

Compliance Requirements


Sec.  60.4210  What are my compliance requirements if I am a stationary 
CI internal combustion engine manufacturer?

    (a) Stationary CI internal combustion engine manufacturers must 
certify their stationary CI ICE with a displacement of less than 10 
liters per cylinder to the emission standards specified in Sec. Sec.  
60.4201(a) through (c) and 60.4202(a) through (c) and (e) using the 
certification procedures required in 40 CFR part 89 subpart B or 40 CFR 
part 1039 subpart C, as applicable, and must test their engines as 
specified in those parts.
    (b) Stationary CI internal combustion engine manufacturers must 
certify their stationary CI ICE with a displacement of greater than or 
equal to 10 liters per cylinder and less than 30 liters per cylinder to 
the emission standards specified in Sec.  60.4201(d) and Sec.  
60.4202(d) using the certification procedures required in 40 CFR part 
94 subpart C, and must test their engines as specified in 40 CFR part 
94.
    (c) Stationary CI internal combustion engine manufacturers must 
also meet the requirements of 40 CFR 1039.120, 40 CFR 1039.125, 40 CFR 
1039.130, 40 CFR 1039.135, or the corresponding provisions of 40 CFR 
part 89 or 40 CFR part 94 for engines that would be covered by that 
part if they were nonroad (including marine) engines. Stationary CI 
internal combustion engine manufacturers must also meet the 
requirements of 40 CFR part 1068. Labels on such engines must refer to 
stationary engines, rather than or in addition to nonroad or marine 
engines, as appropriate.
    (d) An engine manufacturer certifying an engine family or families 
to standards under this subpart that are identical to standards 
applicable under parts 89, 94, or 1039 for that model year may certify 
any such family that

[[Page 39897]]

contains both nonroad (including marine) and stationary engines as a 
single engine family and/or may include any such family containing 
stationary engines in the averaging, banking and trading provisions 
applicable for such engines under those parts.
    (e) Manufacturers of engine families discussed in paragraph (d) of 
this section may meet the labeling requirements referred to in 
paragraph (c) of this section for stationary CI ICE by either adding a 
separate label containing the information required in paragraph (c) of 
this section or by adding the words ``and stationary'' after the word 
``nonroad'' or ``marine,'' as appropriate, to the label.
    (f) Starting with the model years shown in table 3 of this subpart, 
stationary CI internal combustion engine manufacturers must add a 
permanent label stating that the engine is for emergency use only to 
each new emergency stationary CI internal combustion engine greater 
than or equal to 19 KW (25 HP) that meets all the emission standards 
for emergency engines in Sec.  60.4202 but does not meet all the 
emission standards for non-emergency engines in Sec.  60.4201. The 
label must be added according to the labeling requirements specified in 
40 CFR 1039.135(b).
    (g) Manufacturers of fire pump engines may use the test cycle in 
table 4 of this subpart for testing fire pump engines. Fire pump 
engines may test at the National Fire Protection Association (NFPA) 
certified nameplate HP, provided that the engine manufacturer can 
certify that the engine will not be used in any application that allows 
higher HP and provided that the engine is not modified following 
testing.


Sec.  60.4211  What are my compliance requirements if I am an owner or 
operator of a stationary CI internal combustion engine?

    (a) If you are an owner or operator and must comply with the 
emission standards specified in this subpart, you must operate and 
maintain the stationary CI internal combustion engine and control 
device according to the manufacturer's written instructions. You must 
also meet the requirements of 40 CFR part 1068, as they apply to you.
    (b) If you are an owner or operator of a pre-2007 model year 
stationary CI internal combustion engine and must comply with the 
emission standards specified in Sec. Sec.  60.4204(a), 60.4205(a), or 
(c), you must demonstrate compliance according to one of the methods 
specified in paragraphs (b)(1) through (5) of this section.
    (1) Purchasing an engine certified according to 40 CFR part 89 or 
40 CFR part 94, as applicable, for the same model year and maximum 
engine power. The engine must be installed and configured according to 
the manufacturer's specifications.
    (2) Keeping records of performance test results for each pollutant 
for a test conducted on a similar engine. The test must have been 
conducted using the same methods specified in this subpart and these 
methods must have been followed correctly.
    (3) Keeping records of engine manufacturer data indicating 
compliance with the standards.
    (4) Keeping records of control device vendor data indicating 
compliance with the standards.
    (5) Conducting an initial performance test to demonstrate 
compliance with the emission standards according to the requirements 
specified in Sec.  60.4212, as applicable.
    (c) If you are an owner or operator of a 2007 model year and later 
stationary CI internal combustion engine and must comply with the 
emission standards specified in Sec. Sec.  60.4204(b), or 60.4205(b) or 
(c), you must comply by purchasing an engine certified to the emission 
standards in Sec. Sec.  60.4204(b), or 60.4205(b) or (c), as 
applicable, for the same model year and maximum engine power. The 
engine must be installed and configured according to the manufacturer's 
specifications.
    (d) If you are an owner or operator and must comply with the 
emission standards specified in Sec. Sec.  60.4204(c) or 60.4205(d), 
you must demonstrate compliance according to the requirements specified 
in paragraphs (d)(1) through (3) of this section.
    (1) Conducting an initial performance test to demonstrate initial 
compliance with the emission standards as specified in Sec.  60.4213.
    (2) Establishing operating parameters to be monitored continuously 
to ensure the stationary internal combustion engine continues to meet 
the emission standards. The owner or operator must petition the 
Administrator for approval of operating parameters to be monitored 
continuously. The petition must include the information described in 
paragraphs (d)(2)(i) through (v) of this section.
    (i) Identification of the specific parameters you propose to 
monitor continuously;
    (ii) A discussion of the relationship between these parameters and 
NOX and PM emissions, identifying how the emissions of these 
pollutants change with changes in these parameters, and how limitations 
on these parameters will serve to limit NOX and PM 
emissions;
    (iii) A discussion of how you will establish the upper and/or lower 
values for these parameters which will establish the limits on these 
parameters in the operating limitations;
    (iv) A discussion identifying the methods and the instruments you 
will use to monitor these parameters, as well as the relative accuracy 
and precision of these methods and instruments; and
    (v) A discussion identifying the frequency and methods for 
recalibrating the instruments you will use for monitoring these 
parameters.
    (3) For non-emergency engines, conducting annual performance tests 
to demonstrate continuous compliance with the emission standards as 
specified in Sec.  60.4213.
    (e) Emergency stationary ICE may be operated for the purpose of 
maintenance checks and readiness testing, provided that the tests are 
recommended by the manufacturer, the vendor, or the insurance company 
associated with the engine. Maintenance checks and readiness testing of 
such units is limited to 30 hours per year. There is no time limit on 
the use of emergency stationary ICE in emergency situations.

Testing Requirements for Owners and Operators


Sec.  60.4212  What test methods and other procedures must I use if I 
am an owner or operator of a stationary CI internal combustion engine 
with a displacement of less than 30 liters per cylinder?

    Owners and operators of stationary CI ICE with a displacement of 
less than 30 liters per cylinder who conduct performance tests pursuant 
to this subpart must do so according to paragraphs (a) through (d) of 
this section.
    (a) The performance test must be conducted according to the in-use 
testing procedures in 40 CFR part 1039, subpart F.
    (b) Exhaust emissions from stationary CI ICE that are complying 
with the emission standards for new CI engines in 40 CFR part 1039 must 
not exceed the not-to-exceed (NTE) standards for the same model year 
and maximum engine power as required in 40 CFR 1039.101(e) and 40 CFR 
1039.102(g)(1), except as specified in 40 CFR 1039.104(d).
    (c) Exhaust emissions from stationary CI ICE that are complying 
with the emission standards for new CI engines in 40 CFR 89.112 must 
not exceed the NTE numerical requirements, rounded to the same number 
of decimal places as the applicable standard in 40 CFR

[[Page 39898]]

89.112, determined from the following equation:

NTE requirement for each pollutant = (1.25) x (STD) (Eq. 1)


Where:
STD = The standard specified for that pollutant in 40 CFR 89.112.

    (d) Exhaust emissions from stationary CI ICE that are complying 
with the emission standards for pre-2007 model year engines in 
Sec. Sec.  60.4204(a), 60.4205(a), or 60.4205(c) must not exceed the 
NTE numerical requirements, rounded to the same number of decimal 
places as the applicable standard in Sec. Sec.  60.4204(a), 60.4205(a), 
or 60.4205(c), determined from the equation in paragraph (c) of this 
section.


Where:
STD = The standard specified for that pollutant in Sec. Sec.  
60.4204(a), 60.4205(a), or (c).


Sec.  60.4213  What test methods and other procedures must I use if I 
am an owner or operator of a stationary CI internal combustion engine 
with a displacement of greater than or equal to 30 liters per cylinder?

    Owners and operators of stationary CI ICE with a displacement of 
greater than or equal to 30 liters per cylinder must conduct 
performance tests according to paragraphs (a) through (d) of this 
section.
    (a) Each performance test must be conducted according to the 
requirements in Sec.  60.8 and under the specific conditions that this 
subpart specifies in table 5.
    (b) You may not conduct performance tests during periods of 
startup, shutdown, or malfunction, as specified in Sec.  60.8(c).
    (c) You must conduct three separate test runs for each performance 
test required in this section, as specified in Sec.  60.8(f). Each test 
run must last at least 1 hour.
    (d) To determine compliance with the percent reduction requirement, 
you must follow the requirements as specified in paragraphs (d)(1) 
through (3) of this section.
    (1) You must use Equation 2 of this section to determine compliance 
with the percent reduction requirement:
[GRAPHIC] [TIFF OMITTED] TP11JY05.000


Where:

Ci = concentration of NOX or PM at the control 
device inlet,
Co = concentration of NOX or PM at the control 
device outlet, and
R = percent reduction of NOX or PM emissions.

    (2) You must normalize the NOX or PM concentrations at 
the inlet and outlet of the control device to a dry basis and to 15 
percent oxygen (O2) using Equation 3 of this section, or an 
equivalent percent carbon dioxide (CO2) using the procedures 
described in paragraph (d)(3) of this section.
[GRAPHIC] [TIFF OMITTED] TP11JY05.001


Where:

Cadj = Calculated NOX or PM concentration 
adjusted to 15 percent O2.
Cd = Measured concentration of NOX or PM, 
uncorrected.
5.9 = 20.9 percent O2 -15 percent O2, the defined 
O2 correction value, percent.
%O2 = Measured O2 concentration, dry basis, 
percent.

    (3) If pollutant concentrations are to be corrected to 15 percent 
O2 and CO2 concentration is measured in lieu of 
O2 concentration measurement, a CO2 correction 
factor is needed. Calculate the CO2 correction factor as 
described in paragraphs (d)(3)(i) through (iii) of this section.
    (i) Calculate the fuel-specific Fo value for the fuel burned during 
the test using values obtained from Method 19, Section 5.2, and the 
following equation:
[GRAPHIC] [TIFF OMITTED] TP11JY05.002


Where:

Fo = Fuel factor based on the ratio of O2 volume 
to the ultimate CO2 volume produced by the fuel at zero 
percent excess air.
0.209 = Fraction of air that is O2, percent/100.
Fd = Ratio of the volume of dry effluent gas to the gross 
calorific value of the fuel from Method 19, dsm\3\/J (dscf/10\6\ Btu).
Fc = Ratio of the volume of CO2 produced to the gross 
calorific value of the fuel from Method 19, dsm\3\/J (dscf/10\6\ Btu).

    (ii) Calculate the CO2 correction factor for correcting 
measurement data to 15 percent O2, as follows:
[GRAPHIC] [TIFF OMITTED] TP11JY05.003


Where:

XCO2 = CO2 correction factor, percent.
5.9 = 20.9 percent O2 -15 percent O2, the defined 
O2 correction value, percent.

    (iii) Calculate the NOX and PM gas concentrations 
adjusted to 15 percent O2 using CO2 as follows:
[GRAPHIC] [TIFF OMITTED] TP11JY05.004


Where:

Cadj = Calculated NOX or PM concentration 
adjusted to 15 percent O2.
Cd = Measured concentration of NOX or PM, 
uncorrected.
%CO2 = Measured CO2 concentration, dry basis, 
percent.

    (e) To determine compliance with the NOX mass per unit 
output emission limitation, convert the concentration of NOX 
in the engine exhaust using Equation 7 of this section:
[GRAPHIC] [TIFF OMITTED] TP11JY05.005


Where:

ER = Emission rate in grams per KW-hour.
Cadj = Calculated NOX concentration in ppm 
adjusted to 15 percent O2.
1.912x10-3 = conversion constand for ppm NOX to 
grams per standard cubic meter.
Q = Stack gas volumetric flow rate, in standard cubic meter per hour.
T = Time of test run, in hours.
KW-hour = Brake work of the engine, in KW-hour.

    (f) To determine compliance with the PM mass per unit output 
emission limitation, convert the concentration of PM in the engine 
exhaust using Equation 8 of this section:
[GRAPHIC] [TIFF OMITTED] TP11JY05.006


Where:

ER = Emission rate in grams per KW-hour.

[[Page 39899]]

Cadj = Calculated PM concentration in grams per standard 
cubic meter.
Q = Stack gas volumetric flow rate, in standard cubic meter per hour
T = Time of test run, in hours
KW-hour = Energy output of the engine, in KW

Notification, Reports, and Records for Owners and Operators


Sec.  60.4214  What are my notification, reporting, and recordkeeping 
requirements if I am an owner or operator of a stationary CI internal 
combustion engine?

    (a) Owners and operators of non-emergency stationary CI ICE that 
are greater than 2,237 KW (3,000 HP), or have a displacement of greater 
than or equal to 10 liters per cylinder, or are pre-2007 model year 
engines that are greater than 130 KW (175 HP) and not certified must 
meet the requirements of paragraphs (a)(1) and (2) of this section.
    (1) Submit an initial notification as required in Sec.  60.7(a)(1). 
The notification must include the information in paragraphs (a)(1)(i) 
through (v) of this section.
    (i) Name and address of the owner or operator;
    (ii) The address of the affected source;
    (iii) Engine information including make, model, engine family, 
serial number, model year, maximum engine power, and engine 
displacement;
    (iv) Emission control equipment; and
    (v) Fuel used.
    (2) Keep records of the information in paragraphs (a)(2)(i) through 
(iv) of this section.
    (i) All notifications submitted to comply with this subpart and all 
documentation supporting any notification.
    (ii) Maintenance conducted on the engine.
    (iii) If the stationary CI internal combustion is a certified 
engine, documentation from the manufacturer that the engine is 
certified to meet the emission standards.
    (iv) If the stationary CI internal combustion is not a certified 
engine, documentation that the engine meets the emission standards.
    (b) If the stationary CI internal combustion engine is an emergency 
stationary internal combustion engine, the owner or operator is not 
required to submit an initial notification. The owner or operator must 
keep records of the operation of the engine in non-emergency service 
that is recorded through the non-resettable hour meter.
    (c) If the stationary CI internal combustion engine is equipped 
with a diesel particulate filter, the owner or operator must keep 
records of any corrective action taken after the backpressure monitor 
has notified the owner or operator that the high backpressure limit of 
the engine is approached.

Special Requirements


Sec.  60.4215  What requirements must I meet for engines used in Guam, 
American Samoa, or the Commonwealth of the Northern Mariana Islands?

    (a) Stationary CI ICE that are used in Guam, American Samoa, or the 
Commonwealth of the Northern Mariana Islands are required to meet the 
applicable emission standards in Sec.  60.4205. Non-emergency 
stationary CI ICE with a displacement of greater than or equal to 30 
liters per cylinder, must meet the applicable emission standards in 
Sec.  60.4204(c).
    (b) Stationary CI ICE that are used in Guam, American Samoa, or the 
Commonwealth of the Northern Mariana Islands are not required to meet 
the fuel requirements in Sec.  60.4207.

Definitions


Sec.  60.4216  What definitions apply to this subpart?

    As used in this subpart, all terms not defined herein shall have 
the meaning given them in the CAA and in subpart A of this part.
    Combustion turbine means all equipment, including but not limited 
to the turbine, the fuel, air, lubrication and exhaust gas systems, 
control systems (except emissions control equipment), and any ancillary 
components and sub-components comprising any simple cycle combustion 
turbine, any regenerative/recuperative cycle combustion turbine, the 
combustion turbine portion of any cogeneration cycle combustion system, 
or the combustion turbine portion of any combined cycle steam/electric 
generating system.
    Compression Ignition means relating to a type of stationary 
internal combustion engine that is not a spark ignition engine.
    Diesel fuel means any liquid obtained from the distillation of 
petroleum with a boiling point of approximately 150 to 360 degrees 
Celsius. One commonly used form is number 2 distillate oil.
    Diesel particulate filter means an emission control technology that 
reduces PM emissions by trapping the particles in a flow filter 
substrate and periodically removes the collected particles by either 
physical action or by oxidizing (burning off) the particles in a 
process called regeneration.
    Emergency stationary internal combustion engine means any 
stationary internal combustion engine whose operation is limited to 
emergency situations and required testing. Examples include stationary 
ICE used to produce power for critical networks or equipment (including 
power supplied to portions of a facility) when electric power from the 
local utility is interrupted, or stationary ICE used to pump water in 
the case of fire or flood, etc.
    Engine manufacturer means the manufacturer of the engine. See the 
definition of ``manufacturer'' in this section.
    Fire pump engine means an emergency stationary internal combustion 
engine certified to NFPA requirements that is used to provide power to 
pump water for fire suppression or protection.
    Manufacturer has the meaning given in section 216(1) of the Act. In 
general, this term includes any person who manufactures a stationary 
engine for sale in the United States or otherwise introduces a new 
stationary engine into commerce in the United States. This includes 
importers who import stationary engines for resale.
    Maximum engine power means maximum engine power as defined in 40 
CFR 1039.801.
    Model year means either:
    (1) The calendar year in which the engine was originally produced, 
or
    (2) The annual new model production period of the engine 
manufacturer 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. For an 
engine that is converted to a stationary engine after being placed into 
service as a nonroad or other non-stationary engine, model year means 
the calendar year or new model production period in which the engine 
was originally produced.
    Other internal combustion engine means any internal combustion 
engine, except combustion turbines, which is not a reciprocating 
internal combustion engine or rotary internal combustion engine.
    Reciprocating internal combustion engine means any internal 
combustion engine which uses reciprocating motion to convert heat 
energy into mechanical work.
    Rotary internal combustion engine means any internal combustion 
engine which uses rotary motion to convert heat energy into mechanical 
work.
    Spark ignition means relating to a gasoline, natural gas, or 
liquefied petroleum gas fueled engine or any other type of engine with 
a spark plug

[[Page 39900]]

(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. Dual-fuel engines in which a 
liquid fuel (typically diesel fuel) is used for CI and gaseous fuel 
(typically natural gas) is used as the primary fuel at an annual 
average ratio of less than 2 parts diesel fuel to 100 parts total fuel 
on an energy equivalent basis are spark ignition engines.
    Stationary internal combustion engine means any internal combustion 
engine, except combustion turbines, that converts heat energy into 
mechanical work and is not mobile. Stationary ICE differ from mobile 
ICE in that a stationary internal combustion engine is not a nonroad 
engine as defined at 40 CFR 1068.30, and is not used to propel a motor 
vehicle or a vehicle used solely for competition. Stationary ICE 
include reciprocating ICE, rotary ICE, and other ICE, except combustion 
turbines.
    Subpart means 40 CFR part 60, subpart.
    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, whichever comes first. The values for useful life for 
stationary CI ICE with a displacement of less than 10 liters per 
cylinder are given in 40 CFR 1039.101(g). The values for useful life 
for stationary CI ICE with a displacement of greater than or equal to 
10 liters per cylinder and less than 30 liters per cylinder are given 
in 40 CFR 94.9(a).

Tables to Subpart IIII of Part 60

Table 1 to Subpart IIII of Part 60.--Emission Standards for Stationary 
Pre-2007 Model Year Engines With a Displacement of <10 Liters Per 
Cylinder and 2007-2010 Model Year Engines >2,237 KW (3,000 HP) and With 
a Displacement of <10 Liters per Cylinder

    As stated in Sec. Sec.  60.4201(b), 60.4202(b), 60.4204(a), and 
60.4205(a), you must comply with the following emission standards:

----------------------------------------------------------------------------------------------------------------
                                                  Emission standards for stationary pre-2007 model year engines
                                                   with a displacement of <10 liters per cylinder and 2007-2010
                                                 model year engines >2,237 KW (3,000 HP) and with a displacement
                  Engine power                           of <10 liters per cylinder in g/KW-hr (g/HP-hr)
                                                ----------------------------------------------------------------
                                                  NMHC + NOX       HC          NOX           CO           PM
----------------------------------------------------------------------------------------------------------------
KW<8 (HP<11)...................................   10.5 (7.8)  ...........  ...........    8.0 (6.0)   1.0 (0.75)
8<=KW<19 (11<=HP<25)...........................    9.5 (7.1)  ...........  ...........    6.6 (4.9)  0.80 (0.60)
19<=KW<37 (25<=HP<50)..........................    9.5 (7.1)  ...........  ...........    5.5 (4.1)  0.80 (0.60)
37<=KW<56 (50<=HP<75)..........................  ...........  ...........    9.2 (6.9)  ...........  ...........
56<=KW<75 (75<=HP<100).........................  ...........  ...........    9.2 (6.9)  ...........  ...........
75<=KW<130 (100<=HP<175).......................  ...........  ...........    9.2 (6.9)  ...........  ...........
130<=KW<225 (175<=HP<300)......................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
225<=KW<450 (300<=HP<600)......................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
450<=KW<=560 (600<=HP<=750)....................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
KW>560 (HP>750)................................  ...........    1.3 (1.0)    9.2 (6.9)   11.4 (8.5)  0.54 (0.40)
----------------------------------------------------------------------------------------------------------------

Table 2 to Subpart IIII of Part 60.--Emission Standards for Stationary 
Fire Pump Engines

    As stated in Sec. Sec.  60.4202(e) and 60.4205(c), you must 
comply with the following emission standards for stationary fire 
pump engines:

----------------------------------------------------------------------------------------------------------------
                                                                             Emission standards for stationary
                                                                            fire pump engines in g/KW-hr (g/HP-
               Engine power                         Model year(s)                           hr)
                                                                          --------------------------------------
                                                                            NMHC + NOX       CO           PM
----------------------------------------------------------------------------------------------------------------
KW<8 (HP<11)..............................  2010 and earlier.............   10.5 (7.8)    8.0 (6.0)   1.0 (0.75)
                                            2011+........................    7.5 (5.6)  ...........  0.40 (0.30)
8<=KW<19 (11<=HP<25)......................  2010 and earlier.............    9.5 (7.1)    6.6 (4.9)  0.80 (0.60)
                                            2011+........................    7.5 (5.6)  ...........  0.40 (0.30)
19<=KW<37 (25<=HP<50).....................  2010 and earlier.............    9.5 (7.1)    5.5 (4.1)  0.80 (0.60)
                                            2011+........................    7.5 (5.6)  ...........  0.30 (0.22)
37<=KW<56 (50<=HP<75).....................  2010 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)
                                            2011+ \1\....................    4.7 (3.5)  ...........  0.30 (0.22)
56<=KW<75 (75<=HP<100)....................  2010 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)
                                            2011+ \1\....................    4.7 (3.5)  ...........  0.40 (0.30)
75<=KW<130 (100<=HP<175)..................  2009 and earlier.............   10.5 (7.8)    5.0 (3.7)  0.80 (0.60)
                                            2010+ \2\....................    4.0 (3.0)  ...........  0.30 (0.22)
130<=KW<225 (175<=HP<300).................  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+ \3\....................    4.0 (3.0)  ...........  0.20 (0.15)
225<=KW<450 (300<=HP<600).................  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+ \3\....................    4.0 (3.0)  ...........  0.20 (0.15)
450<=KW<= 560 (600<=HP<=750)..............  2008 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)
                                            2009+........................    4.0 (3.0)  ...........  0.20 (0.15)
KW>560 (HP>750)...........................  2007 and earlier.............   10.5 (7.8)    3.5 (2.6)  0.54 (0.40)

[[Page 39901]]

 
                                            2008+........................    6.4 (4.8)  ...........  0.20 (0.15)
 
----------------------------------------------------------------------------------------------------------------
\1\ In model years 2011-2013, manufacturers of fire pump stationary CI ICE with a rated speed of greater than
  2,650 revolutions per minute (rpm) may certify fire pump stationary CI ICE with a rated speed of greater than
  2,650 rpm to the emission limitations for 2010 model year engines.
\2\ In model years 2010-2012, manufacturers of fire pump stationary CI ICE with a rated speed of greater than
  2,650 rpm may certify fire pump stationary CI ICE with a rated speed of greater than 2,650 rpm to the emission
  limitations for 2009 model year engines.
\3\ In model years 2009-2011, manufacturers of fire pump stationary CI ICE with a rated speed of greater than
  2,650 rpm may certify 2009-2011 model year fire pump stationary CI ICE with a rated speed of greater than
  2,650 rpm to the emission limitations for 2008 model year engines.

Table 3 to Subpart IIII of Part 60.--Labeling Requirements for New 
Stationary Emergency Engines

    As stated in Sec.  60.4210(f), you must comply with the 
following labeling requirements for new emergency stationary CI ICE:

------------------------------------------------------------------------
                                          Starting model year engine
                                         manufacturers must label new
           Starting power                stationary emergency engines
                                        according to Sec.   60.4210(f)
------------------------------------------------------------------------
19<=KW<56, (25<=HP<75)..............                                2013
56<=KW<130, (75<=HP<175)............                                2012
KW>=130, (HP>=175)..................                                2011
------------------------------------------------------------------------

Table 4 to Subpart IIII of Part 60.--Optional 3-Mode Test Cycle for 
Stationary Fire Pump Engines

    As stated in Sec.  60.4210(g), manufacturers of fire pump 
engines may use the following test cycle for testing fire pump 
engines:

----------------------------------------------------------------------------------------------------------------
                                                                                      Torque         Weighting
                  Mode No.                             Engine speed \1\            (percent) \2\      factors
----------------------------------------------------------------------------------------------------------------
1..........................................  Rated..............................             100            0.30
2..........................................  Rated..............................              75            0.50
3..........................................  Rated..............................              50           0.20
----------------------------------------------------------------------------------------------------------------
\1\ Engine speed:  2 percent of point.
\2\ Torque: NFPA certified nameplate HP for 100 percent point. All points should be  2 percent of
  engine percent load value.

Table 5 to Subpart IIII of Part 60.--Requirements for Performance Tests 
for Stationary CI ICE With a Displacement of >=30 Liters Per Cylinder

    As stated in Sec.  60.4213, you must comply with the following 
requirements for performance tests for stationary CI ICE with a 
displacement of >=30 liters per cylinder:

----------------------------------------------------------------------------------------------------------------
                                                                                               According to the
            For each              Complying with the       You must              Using             following
                                    requirement to                                               requirements
----------------------------------------------------------------------------------------------------------------
1. Stationary CI Internal         a. Reduce NOX       1. Select the       (1) Method 1 or 1A  (a) Sampling sites
 combustion engine with a          emissions by 90     sampling port       of 40 CFR part      must be located
 displacement of >= 30 liters      percent of more.    location and the    60, appendix A.     at the inlet and
 per cylinder.                                         number of                               outlet of the
                                                       traverse points;                        control device.
                                                      ii. Measure O2 at   (2) Method 3, 3A,   (b) Measurements
                                                       the inlet and       or 3B of 40 CFR     to determine O2
                                                       outlet of the       part 60, appendix   concentration and
                                                       control device;     A.                  moisture must be
                                                                                               made at the same
                                                                                               time as the
                                                                                               measurements for
                                                                                               NOX
                                                                                               concentration.
                                                      iii. If necessary,  (3) Method 4 of 40  (c) Measurements
                                                       measure moisture    CFR part 60,        to determine O2
                                                       content at the      appendix A.         concentration and
                                                       inlet and outlet                        moisture must be
                                                       of the control                          made at the same
                                                       device; and                             time as the
                                                                                               measurements for
                                                                                               NOX
                                                                                               concentration.
                                                      iv. Measure NOX at  (4) Method 7E of    (d) NOX
                                                       the inlet and       40 CFR part 60,     concentration
                                                       outlet of the       appendix A.         must be at 15
                                                       control device.                         percent O2 dry
                                                                                               basis. Results of
                                                                                               this test consist
                                                                                               of the average of
                                                                                               the three 1-hour
                                                                                               or longer runs.

[[Page 39902]]

 
                                  b. Limit the        i. Select the       (1) Method 1 of 1A  (a) if using
                                   concentration of    sampling port       of 40 CFR part      control device,
                                   NOX in the          locations and the   60, appendix A.     the sampling site
                                   stationary CI       number of                               must be located
                                   internal            traverse points;                        at the T the
                                   combustion engine                                           outlet of the
                                   exhaust.                                                    control device.
                                                      ii. Determine the   (2) Method 3, 3A,   (b) Measurements
                                                       O2 concentration    or 3B of 40 CFR     to determine O2
                                                       of the stationary   part 60, Appendix   concentration and
                                                       internal            A.                  moisture must be
                                                       combustion engine                       made at the same
                                                       exhaust at the                          time as the
                                                       sampling port                           measurement for
                                                       location; and                           NOX
                                                                                               concentration.
                                                      iii. If necessary   (3) Method 4 of 40  (c) Measurements
                                                       measure moisture    CFR part 60,        to determine O2
                                                       content of the      appendix A.         concentration and
                                                       stationary                              moisture must be
                                                       internal                                made at the same
                                                       combustion engine                       time as the
                                                       exhaust at the                          measurement for
                                                       sampling port                           NOX
                                                       location; and                           concentration.
                                                      iv. Measure NOX at  (4) Method 7E of    (d) NOX
                                                       the exhaust of      40 CFR part 60,     concentration
                                                       the stationary      appendix A.         must be at 15
                                                       internal                                percent O2 dry
                                                       combustion engine.                      basis. Results of
                                                                                               this test consist
                                                                                               of the average of
                                                                                               the three 1-hour
                                                                                               or longer runs.
                                  c. Reduce PM        i. Select the       (1) Method 1 or 1A  (a) Sampling sites
                                   emissions by 60     sampling port       of 40 CFR part      must be located
                                   percent or more.    location and the    60, appendix A.     at the inlet and
                                                       number of                               outlet of the
                                                       traverse points;                        control device.
                                                      ii. Measure O2 at   (2) Method 3, 3A,   (b) Measurements
                                                       the inlet and       or 3B of 40 CFR     to determine O2
                                                       outlet of the       part 60, appendix   concentration and
                                                       control device;     A.                  moisture must be
                                                                                               made at the same
                                                                                               time as the
                                                                                               measurements for
                                                                                               PM concentration.
                                                      iii. If necessary   (3) Method 4 of 40  (c) Measurements
                                                       measure moisture    CFR part 60,        to determine O2
                                                       content at the      appendix A.         concentration and
                                                       inlet and outlet                        moisture must be
                                                       of the control                          made at the same
                                                       device; and                             time as the
                                                                                               measurements for
                                                                                               PM concentration.
                                                      iv. Measure PM at   (4) Method 5 of 40  (d) PM
                                                       the inlet and       CFR part 60,        concentration
                                                       outlet of the       appendix A.         must be at 15
                                                       control device.                         percent O2 dry
                                                                                               basis. Results of
                                                                                               this test consist
                                                                                               of the average of
                                                                                               the three 1-hour
                                                                                               or longer runs.
                                  d. Limit the        i. Select the       (1) Method 1 or 1A  (a) If using a
                                   concentration of    sampling port       of 40 CFR part      control device,
                                   PM in the           location and the    60, appendix A.     the sampling site
                                   stationary CI       number of                               must be located
                                   internal            traverse points;                        at the outlet of
                                   combustion engine                                           the control
                                   exhaust.                                                    device.
                                                      ii. Determine the   (2) Method 3, 3A    (b) Measurements
                                                       O2 concentration    or 3B of 40 CFR     to determine O2
                                                       of the stationary   part 60, appendix   concentration and
                                                       internal            A.                  moisture must be
                                                       combustion engine                       made at the same
                                                       exhaust at the                          time as the
                                                       sampling port                           measurements for
                                                       location; and                           PM concentration.
                                                      iii. If necessary   (3) Method 4 of 40  (c) Measurements
                                                       measure moisture    CFR part 60,        to determine O2
                                                       content of the      appendix A.         concentration and
                                                       stationary                              moisture must be
                                                       internal                                made at the same
                                                       combustion engine                       time as the
                                                       exhaust at the                          measurements for
                                                       sampling port                           PM concentration.
                                                       location; and
                                                      iv. Measure PM at   (4) Method 5 of 40  (d) PM
                                                       the exhaust of      CFR part 60,        concentration
                                                       the stationary      appendix A.         must be at 15
                                                       internal                                percent O2 dry
                                                       combustion                              basis. Results of
                                                       engine.                                 this test consist
                                                                                               of the average of
                                                                                               the three 1-hour
                                                                                               or longer runs.
----------------------------------------------------------------------------------------------------------------


[[Page 39903]]

PART 85--[AMENDED]

    3. The authority citation for part 85 continues to read as follows:

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

    4. Section 85.2401 is amended by revising paragraphs (a)(6), 
(a)(11), and (a)(12) and adding paragraph (a)(13) to read as follows:


Sec.  85.2401  To whom do these requirements apply?

    (a) * * *
    (6) Nonroad compression-ignition engines (See 40 CFR parts 89 and 
1039)
* * * * *
    (11) Heavy-duty highway gasoline vehicles (evaporative emissions 
certification only) (See 40 CFR part 86);
    (12) Large nonroad spark-ignition engines (engines > 19 kW) (See 40 
CFR part 1048); and
    (13) Stationary internal combustion engines (See 40 CFR part 60, 
subpart IIII).
    5. Section 85.2403 is amended by revising the definition for 
``Federal certificate'' in paragraph (a), revising paragraphs (b)(8) 
and (b)(9), and adding paragraphs (b)(10) and (b)(11) to read as 
follows:


Sec.  85.2403  What definitions apply to this subpart?

    (a) * * *
* * * * *
    Federal certificate is a Certificate of Conformity issued by EPA 
which signifies compliance with emission requirements in any of the 
parts specified in paragraph (b) of this section.
* * * * *
    (b) * * *
    (8) 40 CFR part 1039;
    (9) 40 CFR part 1048;
    (10) 40 CFR part 1051; and
    (11) 40 CFR part 60, subpart IIII.
    6. Section 85.2405 is amended by adding paragraph (e) to read as 
follows:


Sec.  85.2405  How much are the fees?

* * * * *
    (e) Fees for stationary CI internal combustion engine certificate 
requests shall be calculated in the same manner as for NR CI 
certificate requests for engines with a displacement less than 10 
liters per cylinder, and in the same manner as for marine engine 
certificate requests for engines with a displacement greater than or 
equal to 10 liters per cylinder. Fees for certificate requests where 
the certificate would apply to stationary and mobile engines shall be 
calculated in the same manner as fees for the certificate requests for 
the applicable mobile source engines.

PART 89--[AMENDED]

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

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

    8. Section 89.1 is amended by adding paragraph (c) to read as 
follows:


Sec.  89.1  Applicability.

* * * * *
    (c) This part applies as specified in 40 CFR part 60 subpart IIII, 
to compression-ignition engines subject to the standards of 40 CFR part 
60, subpart IIII.
    9. Section 89.115 is amended by adding paragraph (d)(11) to read as 
follows:


Sec.  89.115  Application for certificate.

* * * * *
    (d) * * *
    (11) A statement indicating whether the engine family contains only 
nonroad engines, only stationary engines, or both.
    10. Section 89.201 is revised to read as follows:


Sec.  89.201  Applicability.

    Nonroad compression-ignition engines subject to the provisions of 
subpart A of this part are eligible to participate in the averaging, 
banking, and trading program described in this subpart. As specified in 
40 CFR part 60, subpart IIII, stationary engines certified under this 
part and subject to the standards of 40 CFR part 60 subpart IIII, may 
participate in the averaging, banking, and trading program described in 
this subpart.

PART 94--[AMENDED]

    11. The authority citation for part 94 continues to read as 
follows:

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

    12. Section 94.1 is amended by adding paragraph (d) to read as 
follows:


Sec.  94.1  Applicability.

* * * * *
    (d) This part applies as specified in 40 CFR part 60, subpart IIII, 
to compression-ignition engines subject to the standards of 40 CFR part 
60, subpart IIII.
    13. Section 94.301 is revised to read as follows:


Sec.  94.301  Applicability.

    Marine engine families subject to the standards of subpart A of 
this part are eligible to participate in the certification averaging, 
banking, and trading program described in this subpart. The provisions 
of this subpart apply to manufacturers of new engines that are subject 
to the emission standards of Sec.  94.8. As specified in 40 CFR part 
60, subpart IIII, stationary engines certified under this part and 
subject to the standards of 40 CFR part 60, subpart IIII, may 
participate in the averaging, banking, and trading program described in 
this subpart.

PART 1039--[AMENDED]

    14. The authority citation for part 1039 continues to read as 
follows:

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

    15. Section 1039.1 is amended by revising paragraph (c) to read as 
follows:


Sec.  1039.1  Does this part apply for my engines?

* * * * *
    (c) The definition of nonroad engine in 40 CFR 1068.30 excludes 
certain engines used in stationary applications. These engines may be 
required by subpart IIII of 40 CFR part 60 to comply with some of the 
provisions of this part 1039; otherwise, these engines are only 
required to comply with the requirements in Sec.  1039.20. In addition, 
the prohibitions in 40 CFR 1068.101 restrict the use of stationary 
engines for nonstationary purposes unless they are certified under this 
part 1039.
* * * * *
    16. Section 1039.20 is amended by revising paragraphs (a) and 
adding paragraph (c) to read as follows:


Sec.  1039.20  What requirements from this part apply to excluded 
stationary engines?

* * * * *
    (a) You must add a permanent label or tag to each new engine you 
produce or import that is excluded under Sec.  1039.1(c) as a 
stationary engine and is not required by 40 CFR 60, subpart IIII, to 
meet the requirements of this part 1039. 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) Secure it to a part of the engine needed for normal operation 
and not normally requiring replacement.
    (3) Make sure it is durable and readable for the engine's entire 
life.
    (4) Write it in English.
    (5) Follow the requirements in Sec.  1039.135(g) regarding 
duplicate labels if the engine label is obscured in the final 
installation.
* * * * *
    (c) Stationary engines required by 40 CFR 60, subpart IIII, to meet 
the requirements of this part 1039 must meet the labeling requirements 
of 40 CFR Sec.  60.4210.
    17. Section 1039.205 is amended by revising paragraph (v) to read 
as follows:

[[Page 39904]]

Sec.  1039.205  What must I include in my application?

* * * * *
    (v) State whether your certification is intended to include engines 
used in stationary applications. State whether your certification is 
limited for certain engines. If this is the case, describe how you will 
prevent use of these engines in applications for which they are not 
certified. This applies for engines such as the following:
    (1) Constant-speed engines.
    (2) Engines used for transportation refrigeration units that you 
certify under the provisions of Sec.  1039.645.
    (3) Hand-startable engines certified under the provisions of Sec.  
1039.101(c).
    (4) Engines above 560 kW that are not certified to emission 
standards for generator-set engines.
* * * * *
    18. Section 1039.705 is amended by revising paragraph (c) to read 
as follows:


Sec.  1039.705  How do I generate and calculate emission credits?

* * * * *
    (c) In your application for certification, base your showing of 
compliance on projected production volumes for engines whose point of 
first retail sale is in the United States. As described in Sec.  
1039.730, compliance with the requirements of this subpart is 
determined at the end of the model year based on actual production 
volumes for engines whose point of first retail sale is in the United 
States. Do not include any of the following engines to calculate 
emission credits:
    (1) Engines exempted under subpart G of this part or under 40 CFR 
part 1068.
    (2) Exported engines.
    (3) Engines not subject to the requirements of this part, such as 
those excluded under Sec.  1039.5.
    (4) Engines in families that include only stationary engines, 
except for engines in families certified to standards that are 
identical to standards applicable under this part 1039 to nonroad 
engines of the same type for the same model year.
    (5) Any other engines, where we indicate elsewhere in this part 
1039 that they are not to be included in the calculations of this 
subpart.

PART 1065--[AMENDED]

    19. The authority citation for part 1065 continues to read as 
follows:

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

    20. Section 1065.1 is amended by adding paragraph (a)(5) to read as 
follows:


Sec.  1065.1  Applicability

    (a) * * *
    (5) Stationary compression-ignitions engines certified using the 
provisions of 40 CFR part 1039, as indicated under 40 CFR part 60, 
subpart IIII, the standard-setting part for these engines.

PART 1068--[AMENDED]

    21. The authority citation for part 1068 continues to read as 
follows:

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

    22. Section 1068.1 is amended by adding paragraph (a)(4) to read as 
follows:


Sec.  1068.1  Does this part apply to me?

    (a) * * *
    (4) Stationary compression-ignitions engines certified under 40 CFR 
part 60, subpart IIII.
* * * * *
    23. Section 1068.310 is amended by revising paragraph (b) to read 
as follows:


Sec.  1068.310  What are the exclusions for imported engines?

* * * * *
    (b) Stationary engines. The definition of nonroad engine in 40 CFR 
1068.30 does not include certain engines used in stationary 
applications. Such engines may be subject to the standards of 40 CFR 
part 60. Engines that are excluded from the definition of nonroad 
engine in this part and not subject to the standards of 40 CFR part 60 
are not subject to the restrictions on imports in Sec.  1068.301(b), 
but only if they are properly labeled. Section 1068.101 restricts the 
use of stationary engines for non-stationary purposes.
* * * * *
[FR Doc. 05-13338 Filed 7-8-05; 8:45 am]
BILLING CODE 6560-50-P