Title 40—Protection of Environment--Volume 1
PART 1068—GENERAL COMPLIANCE PROVISIONS FOR HIGHWAY, STATIONARY, AND NONROAD PROGRAMS
§ 1068.265   Provisions for engines/equipment conditionally exempted from certification.
In some cases, exempted engines may need to meet alternate emission standards as a condition of the exemption. For example, replacement engines exempted under § 1068.240 in many cases need to meet the same standards as the engines they are replacing. The standard-setting part may similarly exempt engines/equipment from all certification requirements, or allow us to exempt engines/equipment from all certification requirements for certain cases, but require the engines/equipment to meet alternate standards. In these cases, all the following provisions apply:
(a) Your engines/equipment must meet the alternate standards we specify in (or pursuant to) the exemption section, and all other requirements applicable to engines/equipment that are subject to such standards.
(b) You need not apply for and receive a certificate for the exempt engines/equipment. However, you must comply with all the requirements and obligations that would apply to the engines/equipment if you had received a certificate of conformity for them unless we specifically waive certain requirements.
(c) You must have emission data from test engines/equipment using the appropriate procedures that demonstrate compliance with the alternate standards unless the engines/equipment are identical in all material respects to engines/equipment that you have previously certified to standards that are the same as, or more stringent than, the alternate standards. Note that “engines/equipment that you have previously certified” does not include any engines/equipment initially covered by a certificate that was later voided or otherwise invalidated, or engines/equipment that we have determined did not fully conform to the regulations.
(d) See the provisions of the applicable exemption for labeling instructions, including those related to the compliance statement and other modifications to the label otherwise required in the standard-setting part. If we do not identify specific labeling requirements for an exempted engine, you must meet the labeling requirements in the standard-setting part, with the following exceptions:
(1) Modify the family designation by eliminating the character that identifies the model year.
(2) We may also specify alternative language to replace the compliance statement otherwise required in the standard-setting part.
(e) You may not generate emission credits for averaging, banking, or trading with engines/equipment meeting requirements under the provisions of this section.
(f) Keep records to show that you meet the alternate standards as follows:
(1) If your exempted engines/equipment are identical to previously certified engines/equipment, keep your most recent application for certification for the certified family.
(2) If you previously certified a similar family, but have modified the exempted engines/equipment in a way that changes them from their previously certified configuration, keep your most recent application for certification for the certified family, a description of the relevant changes, and any test data or engineering evaluations that support your conclusions.
(3) If you have not previously certified a similar family, keep all the records we specify for the application for certification and any additional records the standard-setting part requires you to keep.
(g) We may require you to send us an annual report of the engines/equipment you produce under this section.
§ 1068.301   General provisions for importing engines/equipment.
(a) This subpart applies to you if you import into the United States engines or equipment subject to EPA emission standards or equipment containing engines subject to EPA emission standards.
(b) In general, engines/equipment that you import must be covered by a certificate of conformity unless they were built before emission standards started to apply. This subpart describes the limited cases where we allow importation of exempt or excluded engines/equipment. If an engine has an exemption from exhaust emission standards, you may import the equipment under the same exemption. Imported engines/equipment that are exempt or excluded must have a label as described in the specific exemption or exclusion. If the regulation does not include specific labeling requirements, apply a label meeting the requirements of § 1068.45 that identifies your corporate name and describes the basis for the exemption or exclusion.
(c) U.S. Customs and Border Protection may prevent you from importing engines or equipment if you do not meet the requirements of this subpart. In addition, U.S. Customs and Border Protection regulations may contain other requirements for engines/equipment imported into the United States (see 19 CFR Chapter I).
(d) Complete the appropriate EPA declaration before importing any engines or equipment. These forms may be submitted and stored electronically and are available on the Internet at http://www.epa.gov/OTAQ/imports/ or by phone at 734-214-4100. Importers must keep these records for five years and make them available promptly upon request.
(e) The standard-setting part may define uncertified engines/equipment to be “new” upon importation, whether or not they have already been placed into service. This may affect how the provisions of this subpart apply for your engines/equipment. (See the definition of “new” and other relevant terms in the standard-setting part.)
§ 1068.305   How do I get an exemption or exclusion for imported engines/equipment?
(a) You must meet the requirements of the specific exemption or exclusion you intend to use, including any labeling requirements that apply, and complete the appropriate declaration form described in § 1068.301(d).
(b) If we ask for it, prepare a written request in which you do the following:
(1) Give your name, address, and telephone number.
(2) Give the engine/equipment owner's name, address, and telephone number.
(3) Identify the make, model, identification number, and original production year of all engines/equipment.
(4) Identify which exemption or exclusion in this subpart allows you to import nonconforming engines/equipment and describe how your engine/equipment qualifies.
(5) Tell us where you will keep your engines/equipment if you might need to store them until we approve your request.
(6) Authorize us to inspect or test your engines/equipment as the Clean Air Act allows.
(c) We may ask for more information.
(d) You may import the nonconforming engines/equipment you identify in your request if you get prior written approval from us. U.S. Customs and Border Protection may require you to present the approval letter. We may temporarily or permanently approve the exemptions or exclusions, as described in this subpart.
§ 1068.310   Exclusions for imported engines/equipment.
If you show us that your engines/equipment qualify under one of the paragraphs of this section, we will approve your request to import such excluded engines/equipment. You must have our approval before importing engines/equipment under paragraph (a) of this section. You may, but are not required, to request our approval to import the engines/equipment under paragraph (b) through (d) of this section. Qualifying engines/equipment are excluded as follows:
(a) Nonroad engines/equipment used solely for competition. Nonroad engines/equipment that you demonstrate will be used solely for competition are excluded from the restrictions on imports in § 1068.301(b), but only if they are properly labeled. See the standard-setting part for provisions related to this demonstration that may apply. Section 1068.101(b)(4) prohibits anyone from using these excluded engines/equipment for purposes other than competition. We may waive the labeling requirement or allow a removable label for engines/equipment that are being temporarily imported for one or more specific competition events.
(b) Stationary engines. The definition of nonroad engine in § 1068.30 does not include certain engines used in stationary applications. Such engines (and equipment containing 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 are not required to be certified to standards under 40 CFR part 60 are not subject to the restrictions on imports in § 1068.301(b), but only if they are properly labeled and there is clear and convincing evidence that each engine will be used in a stationary application (see paragraph (2)(iii) of the definition of “Nonroad engine”). Section 1068.101 restricts the use of stationary engines for non-stationary purposes unless they are certified under 40 CFR part 60 to the same standards that would apply to nonroad engines for the same model year.
(c) Hobby engines. The standard-setting parts exclude engines used in reduced-scale models of vehicles that are not capable of transporting a person.
(d) Other engines/equipment. The standard-setting parts may exclude engines/equipment used in certain applications. For example, engines used in aircraft are generally excluded. Engines/equipment used in underground mining are excluded if they are regulated by the Mine Safety and Health Administration.
(e) Labeling. For engines/equipment imported under paragraph (a) or (b) of this section, you must add a permanent label, consistent with § 1068.45, with at least the following items unless the standard-setting part includes other specific labeling requirements or we approve alternate label language that is more accurate for your engine/equipment:
(1) Include the heading “EMISSION CONTROL INFORMATION”.
(2) Include your full corporate name and trademark.
(3) State the engine displacement (in liters or cubic centimeters). We may also require that you include maximum engine power. If the engine's power is not established, state the approximate power.
(4) State: “THIS ENGINE IS EXEMPT FROM THE REQUIREMENTS OF [identify the part referenced in § 1068.1(a) that would otherwise apply], AS PROVIDED IN [identify the paragraph authorizing the exemption (for example, “40 CFR 1068.310(a)”)]. INSTALLING THIS ENGINE IN ANY DIFFERENT APPLICATION MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.”
§ 1068.315   Permanent exemptions for imported engines/equipment.
We may approve a permanent exemption from the restrictions on imports under § 1068.301(b) under the following conditions:
(a) National security exemption. You may import an engine or piece of equipment under the national security exemption in § 1068.225.
(b) Manufacturer-owned engine/equipment exemption. You may import manufacturer-owned engines/equipment, as described in § 1068.215.
(c) Replacement engine exemption. You may import a nonconforming replacement engine as described in § 1068.240. To use this exemption, you must be a certificate holder for a family we regulate under the same part as the replacement engine.
(d) Extraordinary circumstances exemption. You may import a nonconforming engine or piece of equipment if we grant hardship relief as described in § 1068.245.
(e) Small-volume manufacturer exemption. You may import a nonconforming engine or piece of equipment if we grant hardship relief for a small-volume manufacturer, as described in § 1068.250.
(f) Equipment-manufacturer hardship exemption. You may import a nonconforming engine if we grant an exemption for the transition to new or revised emission standards, as described in § 1068.255.
(g) [Reserved]
(h) Identical configuration exemption. Unless specified otherwise in the standard-setting part, you may import nonconforming engines/equipment if they are identical in all material respects to certified engines/equipment produced by the same manufacturer, subject to the following provisions:
(1) You must meet all the following criteria:
(i) You have owned the engines/equipment for at least six months.
(ii) You agree not to sell, lease, donate, trade, or otherwise transfer ownership of the engines/equipment for at least five years. The only acceptable way to dispose of the engines/equipment during this five-year period is to destroy or export them.
(iii) You use data or evidence sufficient to show that the engines/equipment are in a configuration that is identical in all material respects to engines/equipment the original manufacturer has certified to meet emission standards that apply at the time the manufacturer finished assembling or modifying the engines/equipment in question. If you modify the engines/equipment to make them identical, you must completely follow the original manufacturer's written instructions.
(2) We will tell you in writing if we find the information insufficient to show that the engines/equipment are eligible for the identical configuration exemption. We will then not consider your request further until you address our concerns.
§ 1068.325   Temporary exemptions for imported engines/equipment.
You may import engines/equipment under certain temporary exemptions, subject to the conditions in this section. We may ask U.S. Customs and Border Protection to require a specific bond amount to make sure you comply with the requirements of this subpart. You may not sell or lease one of these exempted engines/equipment while it is in the United States except as specified in this section or § 1068.201(i). You must eventually export the engine/equipment as we describe in this section unless it conforms to a certificate of conformity or it qualifies for one of the permanent exemptions in § 1068.315 or the standard-setting part.
(a) Exemption for repairs or alterations. You may temporarily import nonconforming engines/equipment solely for repair or alteration, subject to our advance approval as described in paragraph (j) of this section. You may operate the engine/equipment in the United States only as necessary to repair it, alter it, or ship it to or from the service location. Export the engine/equipment directly after servicing is complete, or confirm that it has been destroyed.
(b) Testing exemption. You may temporarily import nonconforming engines/equipment for testing if you follow the requirements of § 1068.210, subject to our advance approval as described in paragraph (j) of this section. You may operate the engines/equipment in the United States only as needed to perform tests. The testing exemption expires one year after you import the engine/equipment unless we approve an extension. The engine/equipment must be exported before the exemption expires. You may sell or lease the engines/equipment consistent with the provisions of § 1068.210.
(c) Display exemption. You may temporarily import nonconforming engines/equipment for display if you follow the requirements of § 1068.220, subject to our advance approval as described in paragraph (j) of this section. The display exemption expires one year after you import the engine/equipment, unless we approve your request for an extension. The engine/equipment must be exported (or destroyed) by the time the exemption expires or directly after the display concludes, whichever comes first.
(d) Export exemption. You may temporarily import nonconforming engines/equipment to export them, as described in § 1068.230. Label the engine/equipment as described in § 1068.230. You may sell or lease the engines/equipment for operation outside the United States consistent with the provisions of § 1068.230.
(e) Diplomatic or military exemption. You may temporarily import nonconforming engines/equipment if you represent a foreign government in a diplomatic or military capacity. U.S Customs and Border Protection may require that you show your written confirmation from the U.S. State Department that you qualify for the diplomatic or military exemption or a copy of your orders for military duty in the United States. We will rely on the State Department or your military orders to determine when your diplomatic or military status expires, at which time you must export your exempt engines/equipment.
(f) Delegated-assembly exemption. You may import a nonconforming engine for final assembly under the provisions of § 1068.261. You may sell or lease the engines/equipment consistent with the provisions of § 1068.261.
(g) Exemption for partially complete engines. The following provisions apply for importing partially complete engines and used engines that become new as a result of importation:
(1) You may import a partially complete engine by shipping it from one of your facilities to another under the provisions of § 1068.260(c) if you also apply a removable label meeting the requirements of § 1068.45 that identifies your corporate name and states that the engine is exempt under the provisions of § 1068.325(g).
(2) You may import an engine if another company already has a certificate of conformity and will be modifying the engine to be in its final certified configuration or a final exempt configuration if you meet the labeling and other requirements of § 1068.262. If you are importing a used engine that becomes new as a result of importation, you must meet all the requirements that apply to original engine manufacturers under § 1068.262. You may sell or lease the engines consistent with the provisions of § 1068.262.
(h)-(i) [Reserved]
(j) Approvals. For the exemptions in this section requiring our approval, you must send a request to the Designated Compliance Officer before importing the engines/equipment. We will approve your request if you meet all the applicable requirements and conditions. If another section separately requires that you request approval for the exemption, you may combine the information requirements in a single request. Include the following information in your request:
(1) Identify the importer of the engine/equipment and the applicable postal address, e-mail address, and telephone number.
(2) Identify the engine/equipment owner and the applicable postal address, e-mail address, and telephone number.
(3) Identify the engine/equipment by model number (or name), serial number, and original production year.
(4) Identify the specific regulatory provision under which you are seeking an exemption.
(5) Acknowledge that EPA enforcement officers may conduct inspect 88ions or testing as allowed under the Clean Air Act.
(6) Include any additional information we specify for demonstrating that you qualify for the exemption.
§ 1068.335   Penalties for violations.
(a) All imported engines/equipment. Unless you comply with the provisions of this subpart, importation of nonconforming engines/equipment violates sections 203 and 213(d) of the Clean Air Act (42 U.S.C. 7522 and 7547(d)). You may then have to export the engines/equipment, pay civil penalties, or both. U.S. Customs and Border Protection may seize unlawfully imported engines and equipment.
(b) Temporarily imported engines/equipment. If you do not comply with the provisions of this subpart for a temporary exemption under § 1068.325, you may forfeit the total amount of the bond in addition to the sanctions we identify in paragraph (a) of this section. We will consider an engine or piece of equipment to be exported if it has been destroyed or delivered to U.S. Customs and Border Protection for export or other disposition under applicable Customs laws and regulations. EPA or U.S. Customs and Border Protection may offer you a grace period to allow you to export temporarily exempted engines/equipment without penalty after the exemption expires.
§ 1068.360   Restrictions for assigning a model year to imported engines and equipment.
This section includes limitations on assigning a model year to engines and equipment that are imported in a year later than the model year in which they were manufactured, except as specified in paragraph (e) of this section.
(a) The term “model year” is defined in each of the standard-setting parts. These definitions may vary slightly to address the different categories of engines and equipment. Except as specified in paragraphs (b) and (c) of this section, the emission standards and other emission-related requirements that apply for an imported engine or piece of equipment are determined by the model year as defined in the applicable standard-setting part and the provisions of 40 CFR 1068.105(a).
(b) This paragraph (b) applies for the importation of engines and equipment that have not been placed into service, where the importation occurs in any calendar year that is more than one year after the named model year of the engine or equipment when emission control requirements applying to current engines are different than for engines or equipment in the named model year, unless they are imported under special provisions for Independent Commercial Importers as allowed under the standard-setting part. Regardless of what other provisions of this subchapter U specify for the model year of the engine or equipment, such engines and equipment are deemed to have an applicable model year no more than one year earlier than the calendar year in which they are imported. For example, a new engine identified as a 2007 model-year product that is imported on January 31, 2010 will be treated as a 2009 model-year engine; the same engine will be treated as a 2010 model-year engine if it is imported any time in calendar year 2011.
(c) If you claim that an engine or piece of equipment is not subject to standards—or is subject to standards less stringent than those currently in place—based on its original manufacture date because it has already been placed into service, you must provide clear and convincing evidence that it has already been placed into service. Such evidence must generally include, but not be limited to, documentary evidence of purchase and maintenance history and visible wear that is consistent with the reported manufacture date. Importing products for resale or importing more than one engine or piece of equipment at a time would generally require a greater degree of evidence under this paragraph (c). If you do not satisfactorily demonstrate that the engine or equipment has already been placed into service, the provisions of paragraph (b) of this section apply.
(d) Nothing in this section should be interpreted to allow circumvention of the requirements of this part by mis-stating or mis-labeling the model year of engines or equipment. For example, this section does not permit engines imported in the same year that they are manufactured to be treated as an engine manufactured in the previous year. To verify compliance with the provisions of this section, we may require you to verify the original manufacture date of the engine or equipment based on manufacturing records, title-transfer documents, service records, or other documentation.
(e) If all the current emission control requirements are the same as in the named model year, the provisions of this section do not apply.
§ 1068.401   What is a selective enforcement audit?
(a) We may conduct or require you as a certificate holder to conduct emission tests on production engines/equipment in a selective enforcement audit. This requirement is independent of any requirement for you to routinely test production-line engines/equipment. Where there are multiple entities meeting the definition of manufacturer, we may require manufacturers other than the certificate holder to conduct or participate in the audit as necessary. For products subject to equipment-based standards, but tested using engine-based test procedures, this subpart applies to the engines and/or the equipment, as applicable. Otherwise this subpart applies to engines for products subject to engine-based standards and to equipment for products subject to equipment-based standards.
(b) If we send you a signed test order, you must follow its directions and the provisions of this subpart. We may tell you where to test the engines/equipment. This may be where you produce the engines/equipment or any other emission testing facility. You are responsible for all testing costs whether the testing is conducted at your facility or another facility.
(c) If we select one or more of your families for a selective enforcement audit, we will send the test order to the person who signed the application for certification or we will deliver it in person.
(d) If we do not select a testing facility, notify the Designated Compliance Officer within one working day of receiving the test order where you will test your engines/equipment.
(e) You must do everything we require in the audit without delay. We may suspend or revoke your certificate of conformity for the affected engine families if you do not fulfill your obligations under this subpart.
§ 1068.405   What is in a test order?
(a) In the test order, we will specify the following things:
(1) The family we have identified for testing. We may also specify individual configurations.
(2) The engine/equipment assembly plant, storage facility, or (if you import the engines/equipment) port facility from which you must select engines/equipment.
(3) The procedure for selecting engines/equipment for testing, including a selection rate.
(4) The test procedures, duty cycles, and test points, as appropriate, for testing the engines/equipment to show that they meet emission standards.
(b) We may state that we will select the test engines/equipment.
(c) We may identify alternate families or configurations for testing in case we determine the intended engines/equipment are not available for testing or if you do not produce enough engines/equipment to meet the minimum rate for selecting test engines/equipment.
(d) We may include other directions or information in the test order.
(e) We may ask you to show us that you meet any additional requirements that apply to your engines/equipment (closed crankcases, for example).
(f) In anticipation of a potential audit, you may give us a list of your preferred families and the corresponding assembly plants, storage facilities, or (if you import the engines/equipment) port facilities from which we should select engines/equipment for testing. The information would apply only for a single model year so it would be best to include this information in your application for certification. If you give us this list before we issue a test order, we will consider your recommendations, but we may select different engines/equipment.
(g) If you also do routine production-line testing with the selected family in the same time period, the test order will tell you what changes you might need to make in your production-line testing schedule.
§ 1068.410   How must I select and prepare my engines/equipment?
(a) Selecting engines/equipment. Select engines/equipment as described in the test order. If you are unable to select test engines/equipment this way, you may ask us to approve an alternate plan as long as you make the request before you start selecting engines/equipment.
(b) Assembling engines/equipment. Produce and assemble test engines/equipment using your normal production and assembly process for that family.
(1) Notify us directly if you make any change in your production, assembly, or quality control processes that might affect emissions between the time you receive the test order and the time you finish selecting test engines/equipment.
(2) If you do not fully assemble engines/equipment at the specified location, we will describe in the test order how to select components to finish assembling the engines/equipment. Assemble these components onto the test engines/equipment using your documented assembly and quality control procedures.
(c) Modifying engines/equipment. Once an engine or piece of equipment is selected for testing, you may adjust, repair, prepare, or modify it or check its emissions only if one of the following is true:
(1) You document the need for doing so in your procedures for assembling and inspecting all your production engines/equipment and make the action routine for all the engines/equipment in the family.
(2) This subpart otherwise allows your action.
(3) We approve your action in advance.
(d) Engine/equipment malfunction. If an engine/equipment malfunction prevents further emission testing, ask us to approve your decision to either repair the engine or delete it from the test sequence.
(e) Setting adjustable parameters. Before any test, we may adjust or require you to adjust any adjustable parameter to any setting within its physically adjustable range.
(1) [Reserved]
(2) We may make or specify adjustments within the physically adjustable range by considering their effect on emission levels. We may also consider how likely it is that someone will make such an adjustment with in-use engines/equipment.
(f) Stabilizing emission levels. (1) Before you test production-line engines/equipment for exhaust emission, you may operate the engine/equipment to stabilize the exhaust emission levels. Using good engineering judgment, operate your engines/equipment in a way that represents the way production engines/equipment will be used. You may operate each engine or piece of equipment for no more than the greater of two periods:
(i) 50 hours.
(ii) The number of hours you operated your emission-data engine/equipment for certifying the family (see 40 CFR part 1065, subpart E).
(2) Use good engineering judgment and follow the standard-setting part to stabilize equipment for evaporative emissions, where appropriate.
(g) Damage during shipment. If shipping the engine/equipment to a remote facility for testing under a selective enforcement audit makes necessary an adjustment or repair, you must wait until after the initial emission test to do this work. We may waive this requirement if the test would be impossible or unsafe or if it would permanently damage the engine/equipment. Report to us, in your written report under § 1068.450, all adjustments or repairs you make on test engines/equipment before each test.
(h) Shipping engines/equipment. If you need to ship engines/equipment to another facility for testing, make sure the test engines/equipment arrive at the test facility within 24 hours after being selected. You may ask that we allow more time if you are unable to do this.
(i) Retesting after invalid tests. You may retest an engine or piece of equipment if you determine an emission test is invalid under the standard-setting part. Explain in your written report reasons for invalidating any test and the emission results from all tests. If you retest an engine or piece of equipment and, within ten days after testing, ask to substitute results of the new tests for the original ones, we will answer within ten days after we receive your information.
(j) Retesting after reaching a fail decision. You may retest your engines/equipment once a fail decision for the audit has been reached based on the first test on each engine or piece of equipment under § 1068.420(c). You may test each engine or piece of equipment up to a total of three times, but you must perform the same number of tests on each engine or piece of equipment. You may further operate the engine/equipment to stabilize emission levels before testing, subject to the provisions of paragraph (f) of this section. We may approve retesting at other times if you send us a request with satisfactory justification.
§ 1068.415   How do I test my engines/equipment?
(a) Use the test procedures specified in the standard-setting part for showing that your engines/equipment meet emission standards. The test order will give further testing instructions.
(b) If no test cells are available at a given facility, you may make alternate testing arrangements with our approval.
(c) Test at least two engines/equipment in each 24-hour period (including void tests). However, for engines with maximum engine power above 560 kW, you may test one engine per 24-hour period. If you request and justify it, we may approve a lower testing rate.
(d) For exhaust emissions, accumulate service on test engines/equipment at a minimum rate of 6 hours per engine or piece of equipment during each 24-hour period; however, service accumulation to stabilize an engine's emission levels may not take longer than eight days. The first 24-hour period for service accumulation begins when you finish preparing an engine or piece of equipment for testing. The minimum service accumulation rate does not apply on weekends or holidays. We may approve a longer stabilization period or a lower service accumulation rate if you request and justify it. We may require you to accumulate hours more rapidly than the minimum rate, as appropriate. Plan your service accumulation to allow testing at the rate specified in paragraph (c) of this section. Select operation for accumulating operating hours on your test engines/equipment to represent normal in-use operation for the family.
(e) Test engines/equipment in the same order you select them.
§ 1068.420   How do I know when my engine family fails an SEA?
(a) A failed engine or piece of equipment is one whose final deteriorated test results exceed an applicable emission standard for any regulated pollutant.
(b) Continue testing engines/equipment until you reach a pass decision for all pollutants or a fail decision for one pollutant, as described in paragraph (c) of this section.
(c) You reach a pass decision for the SEA requirements when the number of failed engines/equipment is less than or equal to the pass decision number in Appendix A to this subpart for the total number of engines/equipment tested. You reach a fail decision for the SEA requirements when the number of failed engines/equipment is greater than or equal to the fail decision number in Appendix A to this subpart for the total number of engines/equipment you test. An acceptable quality level of 40 percent is the basis for the pass or fail decision.
(d) Consider test results in the same order as the engine/equipment testing sequence.
(e) If you reach a pass decision for one pollutant, but need to continue testing for another pollutant, we will not use these later test results for the pollutant with the pass decision as part of the SEA.
(f) Appendix A to this subpart lists multiple sampling plans. Use the sampling plan for the projected sales volume you reported in your application for the audited family.
(g) We may choose to stop testing after any number of tests.
(h) If we test some of your engines/equipment in addition to your own testing, we may decide not to include your test results as official data for those engines/equipment if there is substantial disagreement between your testing and our testing. We will reinstate your data as valid if you show us that we made an error and your data are correct.
(i) If we rely on our test data instead of yours, we will notify you in writing of our decision and the reasons we believe your facility is not appropriate for doing the tests we require under this subpart. You may request in writing that we consider your test results from the same facility for future testing if you show us that you have made changes to resolve the problem.
§ 1068.425   What happens if one of my production-line engines/equipment exceeds the emission standards?
(a) If one of your production-line engines/equipment fails to meet one or more emission standards (see § 1068.420), the certificate of conformity is automatically suspended for that engine or piece of equipment. You must take the following actions before your certificate of conformity can cover that engine or piece of equipment:
(1) Correct the problem and retest the engine/equipment to show it complies with all emission standards.
(2) Include in your written report a description of the test results and the remedy for each engine or piece of equipment (see § 1068.450).
(b) You may ask for a hearing relative to the suspended certificate of conformity for the failing engine/equipment as specified in subpart G of this part.
§ 1068.430   What happens if a family fails an SEA?
(a) We may suspend your certificate of conformity for a family if it fails the SEA under § 1068.420. The suspension may apply to all facilities producing engines/equipment from a family even if you find noncompliant engines/equipment only at one facility.
(b) We will tell you in writing if we suspend your certificate in whole or in part. We will not suspend a certificate until at least 15 days after the family fails the SEA. The suspension is effective when you receive our notice.
(c) You may ask for a hearing as described in subpart G of this part up to 15 days after we suspend the certificate for a family. If we agree that we used erroneous information in deciding to suspend the certificate before a hearing is held, we will reinstate the certificate.
§ 1068.435   May I sell engines/equipment from a family with a suspended certificate of conformity?
You may sell engines/equipment that you produce after we suspend the family's certificate of conformity only if one of the following occurs:
(a) You test each engine or piece of equipment you produce and show it complies with emission standards that apply.
(b) We conditionally reinstate the certificate for the family. We may do so if you agree to recall all the affected engines/equipment and remedy any noncompliance at no expense to the owner if later testing shows that engines/equipment in the family still do not comply.
§ 1068.440   How do I ask EPA to reinstate my suspended certificate?
(a) Send us a written report asking us to reinstate your suspended certificate. In your report, identify the reason for the SEA failure, propose a remedy, and commit to a date for carrying it out. In your proposed remedy include any quality control measures you propose to keep the problem from happening again.
(b) Give us test data from production engines/equipment showing that engines/equipment in the remedied family comply with all the emission standards that apply.
§ 1068.445   When may EPA revoke my certificate under this subpart and how may I sell these engines/equipment again?
(a) We may revoke your certificate for a family in the following cases:
(1) You do not meet the reporting requirements under this subpart.
(2) Your family fails an SEA and your proposed remedy to address a suspended certificate is inadequate to solve the problem or requires you to change the engine/equipment's design or emission control system.
(b) To sell engines/equipment from a family with a revoked certificate of conformity, you must modify the family and then show it complies with the applicable requirements.
(1) If we determine your proposed design change may not control emissions for the engine/equipment's full useful life, we will tell you within five working days after receiving your report. In this case we will decide whether production-line testing will be enough for us to evaluate the change or whether you need to do more testing.
(2) Unless we require more testing, you may show compliance by testing production-line engines/equipment as described in this subpart.
(3) We will issue a new or updated certificate of conformity when you have met these requirements.
§ 1068.450   What records must I send to EPA?
(a) Within 30 days of the end of each audit, send us a report with the following information:
(1) Describe any facility used to test production-line engines/equipment and state its location.
(2) State the total U.S.-directed production volume and number of tests for each family.
(3) Describe your test engines/equipment, including the family's identification and the engine/equipment's model year, build date, model number, identification number, and number of hours of operation before testing for each test engine or piece of equipment.
(4) Identify where you accumulated hours of operation on the engines/equipment and describe the procedure and schedule you used.
(5) Provide the test number; the date, time and duration of testing; test procedure; initial test results before and after rounding; final test results; and final deteriorated test results for all tests. Provide the emission figures for all measured pollutants. Include information for both valid and invalid tests and the reason for any invalidation.
(6) Describe completely and justify any nonroutine adjustment, modification, repair, preparation, maintenance, or test for the test engine/equipment if you did not report it separately under this subpart. Include the results of any emission measurements, regardless of the procedure or type of equipment.
(7) Report on each failed engine or piece of equipment as described in § 1068.425.
(b) We may ask you to add information to your written report, so we can determine whether your new engines/equipment conform to the requirements of this subpart.
(c) An authorized representative of your company must sign the following statement: We submit this report under Sections 208 and 213 of the Clean Air Act. Our testing conformed completely with the requirements of 40 CFR part 1068. We have not changed production processes or quality-control procedures for the family in a way that might affect the emission control from production engines/equipment. All the information in this report is true and accurate to the best of my knowledge. I know of the penalties for violating the Clean Air Act and the regulations. (Authorized Company Representative)
(d) Send reports of your testing to the Designated Compliance Officer using an approved information format. If you want to use a different format, send us a written request with justification for a waiver.
(e) We may post test results on publicly accessible databases and we will send copies of your reports to anyone from the public who asks for them, consistent with § 1068.11.
§ 1068.455   What records must I keep?
(a) We may review your records at any time so it is important to keep required information readily available. Organize and maintain your records as described in this section.
(b) Keep paper records for testing under this subpart for one full year after you complete all the testing required for the selective enforcement audit. For additional storage, you may use any format or media.
(c) Keep a copy of the written reports described in § 1068.450.
(d) Keep the following additional records:
(1) The names of supervisors involved in each test.
(2) The name of anyone who authorizes adjusting, repairing, preparing, or modifying a test engine/equipment and the names of all supervisors who oversee this work.
(3) If you shipped the engine/equipment for testing, the date you shipped it, the associated storage or port facility, and the date the engine/equipment arrived at the testing facility.
(4) Any records related to your audit that are not in the written report.
(5) A brief description of any significant events during testing not otherwise described in the written report or in this section.
(e) If we ask, you must give us projected or actual production for a family. Include each assembly plant if you produce engines/equipment at more than one plant.
(f) We may ask you to keep or send other information necessary to implement this subpart.
§ 1068.501   How do I report emission-related defects?
This section addresses the certificate holder's responsibility to investigate and report emission-related defects in design, materials, or workmanship. The provisions of this section do not limit your liability under this part or the Clean Air Act. For example, selling an engine/equipment that does not conform to your application for certification is a violation of § 1068.101(a)(1) independent of the requirements of this section. The requirements of this section apply separately to each certificate holder if there is more than one certificate holder for the equipment.
(a) General provisions. As a certifying manufacturer, you must investigate in certain circumstances whether engines/equipment that have been introduced into U.S. commerce under your certificate have incorrect, improperly installed, or otherwise defective emission-related components or systems. This includes defects in design, materials, or workmanship. You must also send us reports as specified by this section.
(1) This section addresses defects for any of the following emission-related components or systems containing the following components:
(i) Electronic control units, aftertreatment devices, fuel-metering components, EGR-system components, crankcase-ventilation valves, all components related to charge-air compression and cooling, and all sensors associated with any of these components.
(ii) For engines and equipment subject to evaporative emission standards, fuel tanks, fuel caps, and fuel lines and connectors.
(iii) Any other component whose primary purpose is to reduce emissions.
(iv) Any other component whose failure would commonly increase emissions of any regulated pollutant without significantly degrading engine/equipment performance.
(2) The requirements of this section relate to defects in any of the components or systems identified in paragraph (a)(1) of this section if the defects might affect any of the parameters or specifications in Appendix II of this part or might otherwise affect the emissions of any regulated pollutant.
(3) For the purposes of this section, defects do not include damage to emission-related components or systems (or maladjustment of parameters) caused by owners improperly maintaining or abusing their engines/equipment.
(4) The requirements of this section do not apply to emission control information labels. Note however, that § 1068.101(a)(1) prohibits the sale of engines/equipment without proper labels, which also applies to misprinted labels.
(5) You must track the information specified in paragraph (b)(1) of this section. You must assess this data at least every three months to evaluate whether you exceed the thresholds specified in paragraphs (e) and (f) of this section. Where thresholds are based on a percentage of engines/equipment in the family, use actual U.S.-directed production volumes for the whole model year when they become available. Use projected production figures until the actual production figures become available. You are not required to collect additional information other than that specified in paragraph (b)(1) of this section before reaching a threshold for an investigation specified in paragraph (e) of this section.
(6) You may ask us to allow you to use alternate methods for tracking, investigating, reporting, and correcting emission-related defects. In your request, explain and demonstrate why you believe your alternate system will be at least as effective in the aggregate in tracking, identifying, investigating, evaluating, reporting, and correcting potential and actual emissions-related defects as the requirements in this section. In this case, provide all available data necessary to demonstrate why an alternate system is appropriate for your engines/equipment and how it will result in a system at least as effective as that required under this section.
(7) If we determine that emission-related defects result in a substantial number of properly maintained and used engines/equipment not conforming to the regulations of this chapter during their useful life, we may order you to conduct a recall of your engines/equipment (see § 1068.505).
(8) Send all reports required by this section to the Designated Compliance Officer.
(9) This section distinguishes between defects and possible defects. A possible defect exists anytime there is an indication that an emission-related component or system might have a defect, as described in paragraph (b)(1) of this section.
(b) Investigation of possible defects. Investigate possible defects as follows:
(1) If the number of engines/equipment that have a possible defect, as defined by this paragraph (b)(1), exceeds a threshold specified in paragraph (e) of this section, you must conduct an investigation to determine if an emission-related component or system is actually defective. You must classify an engine/equipment component or system as having a possible defect if any of the following sources of information shows there is a significant possibility that a defect exists:
(i) A warranty claim is submitted for the component, whether this is under your emission-related warranty or any other warranty.
(ii) Your quality-assurance procedures suggest that a defect may exist.
(iii) You receive any other information for which good engineering judgment would indicate the component or system may be defective, such as information from dealers, field-service personnel, equipment manufacturers, hotline complaints, in-use testing, or engine diagnostic systems.
(2) If the number of shipped replacement parts for any individual component is high enough that good engineering judgment would indicate a significant possibility that a defect exists, you must conduct an investigation to determine if it is actually defective. Note that this paragraph (b)(2) does not require data-tracking or recording provisions related to shipment of replacement parts.
(3) Your investigation must be prompt, thorough, consider all relevant information, follow accepted scientific and engineering principles, and be designed to obtain all the information specified in paragraph (d) of this section.
(4) Your investigation needs to consider possible defects that occur only within the useful life period, or within five years after the end of the model year, whichever is longer.
(5) You must continue your investigation until you are able to show that there is no emission-related defect or you obtain all the information specified for a defect report in paragraph (d) of this section.
(6) If a component with a possible defect is used in additional families or model years, you must investigate whether the component may be defective when used in these additional families or model years, and include these results in any defect report you send under paragraph (c) of this section.
(7) If your initial investigation concludes that the number of engines/equipment with a defect is fewer than any of the thresholds specified in paragraph (f) of this section, but other information later becomes available that may show that the number of engines/equipment with a defect exceeds a threshold, then you must resume your investigation. If you resume an investigation, you must include the information from the earlier investigation to determine whether to send a defect report.
(c) Reporting defects. You must send us a defect report in either of the following cases:
(1) Your investigation shows that the number of engines/equipment with a defect exceeds a threshold specified in paragraph (f) of this section. Send the defect report within 21 days after the date you identify this number of defective engines/equipment. See paragraph (h) of this section for reporting requirements that apply if the number of engines/equipment with a defect does not exceed any of the thresholds in paragraph (f) of this section.
(2) You know there are emission-related defects for a component or system in a number of engines/equipment that exceeds a threshold specified in paragraph (f) of this section, regardless of how you obtain this information. Send the defect report within 21 days after you learn that the number of defects exceeds a threshold. Send us an updated defect report anytime you have significant additional information.
(d) Contents of a defect report. Include the following information in a defect report:
(1) Your corporate name and a person to contact regarding this defect.
(2) A description of the defect, including a summary of any engineering analyses and associated data, if available.
(3) A description of the engines/equipment that have the defect, including families, models, and range of production dates.
(4) An estimate of the number and percentage of each class or category of affected engines/equipment that have the defect, and an explanation of how you determined this number. Describe any statistical methods you used under paragraph (g)(6) of this section.
(5) An estimate of the defect's impact on emissions, with an explanation of how you calculated this estimate and a summary of any emission data demonstrating the impact of the defect, if available.
(6) A description of your plan for addressing the defect or an explanation of your reasons for not believing the defects must be addressed.
(e) Thresholds for conducting a defect investigation. You must begin a defect investigation based on the following number of engines/equipment that may have the defect:
(1) For engines/equipment with maximum engine power at or below 560 kW:
(i) For families with annual production below 500 units: 50 or more engines/equipment.
(ii) For families with annual production from 500 to 50,000 units: more than 10.0 percent of the total number of engines/equipment in the family.
(iii) For families with annual production from 50,000 to 550,000 units: more than the total number of engines/equipment represented by the following equation:
(iv) For families with annual production above 550,000 units: 25,000 or more engines/equipment.
(2) For engines/equipment with maximum engine power greater than 560 kW:
(i) For families with annual production below 250 units: 25 or more engines/equipment.
(ii) For families with annual production at or above 250 units: more than 10.0 percent of the total number of engines/equipment in the family.
(f) Thresholds for filing a defect report. You must send a defect report based on the following number of engines/equipment that have the defect:
(1) For engines/equipment with maximum engine power at or below 560 kW:
(i) For families with annual production below 1,000 units: 20 or more engines/equipment.
(ii) For families with annual production from 1,000 to 50,000 units: more than 2.0 percent of the total number of engines/equipment in the family.
(iii) For families with annual production from 50,000 to 550,000 units: more than the total number of engines/equipment represented by the following equation:
(iv) For families with annual production above 550,000 units: 6,000 or more engines/equipment.
(2) For engines/equipment with maximum engine power greater than 560 kW:
(i) For families with annual production below 150 units: 10 or more engines/equipment.
(ii) For families with annual production from 150 to 750 units: 15 or more engines/equipment.
(iii) For families with annual production above 750 units: more than 2.0 percent of the total number of engines/equipment in the family.
(g) How to count defects. (1) Track defects separately for each model year and family as much as possible. If information is not identifiable by model year or family, use good engineering judgment to evaluate whether you exceed a threshold in paragraph (e) or
(f) of this section. Consider only your U.S.-directed production volume.
(2) Within a family, track defects together for all components or systems that are the same in all material respects. If multiple companies separately supply a particular component or system, treat each company's component or system as unique.
(3) For engine-based standards, if a possible defect is not attributed to any specific part of the engine, consider the complete engine a distinct component for evaluating whether you exceed a threshold in paragraph (e) of this section. For equipment-based standards, if a possible defect is not attributed to any specific part of the equipment, consider the complete piece of equipment a distinct component for evaluating whether you exceed a threshold in paragraph (e) of this section.
(4) If you correct defects before they reach the ultimate purchaser as a result of your quality-assurance procedures, count these against the investigation thresholds in paragraph (e) of this section unless you routinely check every engine or piece of equipment in the family. Do not count any corrected defects as actual defects under paragraph (f) of this section.
(5) Use aggregated data from all the different sources identified in paragraph (b)(1) of this section to determine whether you exceed a threshold in paragraphs (e) and (f) of this section.
(6) If information is readily available to conclude that the possible defects identified in paragraph (b)(1) of this section are actual defects, count these toward the reporting thresholds in paragraph (f) of this section.
(7) During an investigation, use appropriate statistical methods to project defect rates for engines/equipment that you are not otherwise able to evaluate. For example, if 75 percent of the components replaced under warranty are available for evaluation, it would be appropriate to extrapolate known information on failure rates to the components that are unavailable for evaluation. Take steps as necessary to prevent bias in sampled data. Make adjusted calculations to take into account any bias that may remain.
(h) Investigation reports. Once you trigger an investigation threshold under paragraph (e) of this section, you must report your progress and conclusions. In your reports, include the information specified in paragraph (d) of this section, or explain why the information is not relevant. Send us the following reports:
(1) While you are investigating, send us mid-year and end-of-year reports to describe the methods you are using and the status of the investigation. Send these status reports no later than June 30 and December 31 of each year.
(2) If you find that the number of components or systems with an emission-related defect exceeds a threshold specified in paragraph (f) of this section, send us a report describing your findings within 21 days after the date you reach this conclusion.
(3) If you find that the number of components or systems with an emission-related defect does not exceed any of the thresholds specified in paragraph (f) of this section, send us a final report supporting this conclusion. For example, you may exclude warranty claims that resulted from misdiagnosis and you may exclude defects caused by improper maintenance, improper use, or misfueling. Send this report within 21 days after the date you reach this conclusion.
(i) Future production. If you identify a design or manufacturing defect that prevents engines/equipment from meeting the requirements of this part, you must correct the defect as soon as possible for future production of engines/equipment in every family affected by the defect. This applies without regard to whether you are required to conduct a defect investigation or submit a defect report under this section.
§ 1068.505   How does the recall program work?
(a) If we make a determination that a substantial number of properly maintained and used engines/equipment within a given class or category do not conform to the regulations of this chapter during their useful life, you must submit a plan to remedy the nonconformity of your engines/equipment. We will notify you of our determination in writing. Our notice will identify the class or category of engines/equipment affected and describe how we reached our conclusion. If this happens, you must meet the requirements and follow the instructions in this subpart. You must remedy at your expense all engines/equipment that experienced the nonconformity during the useful life in spite of being properly maintained and used, as described in § 1068.510(a)(7), regardless of their age or extent of service accumulation at the time of repair. You may not transfer this expense to a dealer (or equipment manufacturer for engine-based standards) through a franchise or other agreement.
(b) You may ask for a hearing if you disagree with our determination (see subpart G of this part).
(c) Unless we withdraw the determination of noncompliance, you must respond to it by sending a remedial plan to the Designated Compliance Officer. We will designate a date by which you must send us the remedial plan; the designated date will be no sooner than 45 days after we notify you, and no sooner than 30 days after a hearing.
(d) Once you have sold engines/equipment to the ultimate purchaser, we may inspect or test the engines/equipment only if the purchaser permits it, or if state or local inspection programs separately provide for it.
(e) You may ask us to allow you to conduct your recall differently than specified in this subpart, consistent with section 207(c) of the Clean Air Act (42 U.S.C. 7541(c)).
(f) You may do a voluntary recall under § 1068.535 unless we have made the determination described in § 1068.535(a).
(g) For purposes of recall, “owner” means someone who owns an engine or piece of equipment affected by a remedial plan.
§ 1068.510   How do I prepare and apply my remedial plan?
(a) In your remedial plan, describe all of the following:
(1) The class or category of engines/equipment to be recalled, including the number of engines/equipment involved and the model year or other information needed to identify the engines/equipment.
(2) The modifications, alterations, repairs, corrections, adjustments, or other changes you will make to correct the affected engines/equipment.
(3) A brief description of the studies, tests, and data that support the effectiveness of the remedy you propose to use.
(4) The instructions you will send to those who will repair the engines/equipment under the remedial plan.
(5) How you will determine the owners' names and addresses.
(6) How you will notify owners; include a copy of any notification letters.
(7) The proper maintenance or use you will specify, if any, as a condition to be eligible for repair under the remedial plan. Describe how these specifications meet the provisions of paragraph (e) of this section. Describe how the owners should show they meet your conditions.
(8) The steps owners must take for you to do the repair. You may set a date or a range of dates, specify the amount of time you need, and designate certain facilities to do the repairs.
(9) Which company (or group) you will assign to do or manage the repairs.
(10) If your employees or authorized warranty agents will not be doing the work, state who will and describe their qualifications.
(11) How you will ensure an adequate and timely supply of parts.
(12) The effect of proposed changes on fuel consumption, driveability, and safety of the engines/equipment you will recall; include a brief summary of the information supporting these conclusions.
(13) How you intend to label the engines/equipment you repair and where you will place the label on the engine/equipment (see § 1068.515).
(b) We may require you to add information if it is needed to evaluate your remedial plan.
(c) We may require you to test the proposed repair to show it will remedy the noncompliance.
(d) Use all reasonable means to locate owners. We may require you to use government or commercial registration lists to get owners' names and addresses so your notice will be effective.
(e) The maintenance or use that you specify as a condition for eligibility under the remedial plan may include only things you can show would cause noncompliance. Do not require use of a component or service identified by brand, trade, or corporate name unless we approved this approach with your original certificate of conformity. Also, do not place conditions on who maintained the engine/equipment.
(f) We may require you to adjust your repair plan if we determine owners would be without their engines or equipment for an unreasonably long time.
(g) We will tell you in writing within 15 days of receiving your remedial plan whether we have approved or disapproved it. We will explain our reasons for any disapproval.
(h) Begin notifying owners within 15 days after we approve your remedial plan. If we hold a hearing, but do not change our position about the noncompliance, you must begin notifying owners within 60 days after we complete the hearing unless we specify a later deadline.
§ 1068.515   How do I mark or label repaired engines/equipment?
(a) Attach a label to engines/equipment you repair under the remedial plan. At your discretion, you may label or mark engines/equipment you inspect but do not repair. Designate the specific recall campaign on the label.
(b) Make the label from a durable material suitable for its planned location. Make sure no one can remove the label without destroying or defacing it.
(c) Identify the facility where you repaired or inspected the engine/equipment on the label, or keep records of this information for each vehicle and give it to us if we ask for it.
(d) We may waive or modify the labeling requirements if we determine they are overly burdensome.
§ 1068.520   How do I notify affected owners?
(a) Notify owners by first class mail or e-mail unless we say otherwise. We may require you to use certified mail. Include the following in your notice:
(1) State: “The U.S. Environmental Protection Agency has determined that your engine/equipment may be emitting pollutants in excess of the federal emission standards as defined in Title 40 of the Code of Federal Regulations. These emission standards were established to protect the public health or welfare from air pollution.”
(2) State that you (or someone you designate) will repair these engines/equipment at your expense.
(3) If we approved maintenance and use conditions in your remedial plan, state that you will make these repairs only if owners show their engines/equipment meet the conditions for proper maintenance and use. Describe these conditions and how owners should prove their engines/equipment are eligible for repair.
(4) Describe the components your repair will affect and say generally how you will repair the engines/equipment.
(5) State that the engine/equipment, if not repaired, may fail an emission inspection test if state or local law requires one.
(6) Describe any adverse effects on its performance or driveability that would be caused by not repairing the engine/equipment.
(7) Describe any adverse effects on the functions of other components that would be caused by not repairing the engine/equipment.
(8) Specify the date you will start the repairs, the amount of time you will need to do them, and where you will do them. Include any other information owners may need to know.
(9) Allow for the owner to inform you using one of the following methods if they have sold the engine/equipment:
(i) Send a self-addressed card that owners can mail back to you; include a space for owners to write the name and address of a buyer.
(ii) Provide owners with a toll-free number and an e-mail address or Web site they can use to identify the name and address of a buyer.
(10) State that owners should call you at a phone number you give to report any difficulty in obtaining repairs.
(11) State: “To ensure your full protection under the emission warranty on your [engine/equipment] by federal law, and your right to participate in future recalls, we recommend you have your [engine/equipment] serviced as soon as possible. We may consider your not servicing it to be improper maintenance.”
(b) We may require you to add information to your notice or to send more notices if we determine this is reasonable and necessary to ensure an effective recall.
(c) You may not in any communication with owners or dealers say or imply that your noncompliance does not exist or that it will not degrade air quality.
§ 1068.525   What records must I send to EPA?
(a) Send us a copy of all communications related to the remedial plan you sent to dealers and others doing the repairs. Mail or e-mail us the information at the same time you send it to others.
(b) From the time you begin to notify owners, send us a report within 25 days of the end of each calendar quarter. Send reports for six consecutive quarters or until all the engines/equipment are inspected, whichever comes first. In these reports, identify the following:
(1) The range of dates you needed to notify owners.
(2) The total number of notices sent.
(3) The number of engines/equipment you estimate fall under the remedial plan (explain how you determined this number).
(4) The cumulative number of engines/equipment you inspected under the remedial plan.
(5) The cumulative number of these engines/equipment you found needed the specified repair.
(6) The cumulative number of these engines/equipment you have repaired.
(7) The cumulative number of engines/equipment you determined to be unavailable due to exportation, theft, retirement, or other reasons (specify).
(8) The cumulative number of engines/equipment you disqualified for not being properly maintained or used.
(c) If your estimated number of engines/equipment falling under the remedial plan changes, change the estimate in your next report and add an explanation for the change.
(d) We may ask for more information.
(e) We may waive reporting requirements or adjust the reporting schedule.
(f) If anyone asks to see the information in your reports, we will follow the provisions of § 1068.10 for handling confidential information.
§ 1068.530   What records must I keep?
We may review your records at any time so it is important that you keep required information readily available. Keep records associated with your recall campaign for five years after you send the last report we require under § 1068.525(b). Organize and maintain your records as described in this section.
(a) Keep a paper copy of the written reports described in § 1068.525.
(b) Keep a record of the names and addresses of owners you notified. For each engine or piece of equipment, state whether you did any of the following:
(1) Inspected the engine/equipment.
(2) Disqualified the engine/equipment for not being properly maintained or used.
(3) Completed the prescribed repairs.
(c) You may keep the records in paragraph (b) of this section in any form we can inspect, including computer databases.
§ 1068.535   How can I do a voluntary recall for emission-related problems?
If we have made a determination that a substantial number of properly maintained and used engines/equipment do not conform to the regulations of this chapter during their useful life, you may not use a voluntary recall or other alternate means to meet your obligation to remedy the noncompliance. Thus, this section applies only if you learn that your family does not meet the requirements of this chapter and we have not made such a determination.
(a) To do a voluntary recall under this section, first send the Designated Compliance Officer a plan, following the guidelines in § 1068.510. Within 15 days, we will send you our comments on your plan.
(b) Once we approve your plan, start notifying owners and carrying out the specified repairs. Make reasonable efforts to carry out the recall as quickly as possible.
(c) From the time you start the recall campaign, send us a report within 25 days of the end of each calendar quarter, following the guidelines in § 1068.525(b). Send reports for six consecutive quarters or until all the engines/equipment are inspected, whichever comes first.
(d) Keep your reports and the supporting information as described in § 1068.530.
§ 1068.601   Overview.
The regulations of this chapter involve numerous provisions that may result in EPA making a decision or judgment that you may consider adverse to your interests. For example, our decisions might require you to pay penalties, or you might consider that our decisions will limit your business activities or put you at a competitive disadvantage. As specified in the regulations in this chapter, this might involve an opportunity for an informal hearing or a formal hearing that follows specific procedures and is directed by a Presiding Officer. The regulations in this chapter generally specify when we would hold a hearing. In limited circumstances, we may grant a request for a hearing related to adverse decisions regarding regulatory provisions for which we do not specifically describe the possibility of asking for a hearing.
(a) If you request a hearing regarding our decision to assess administrative penalties under § 1068.125, we will hold a formal hearing according to the provisions of 40 CFR 22.1 through 22.32 and 22.34.
(b) For other issues where the regulation allows for a hearing in response to an adverse decision, you may request an informal hearing as described in § 1068.650. Sections 1068.610 through 1068.630 describe when and how to request an informal hearing under various circumstances.
(c) The time limits we specify are calendar days and include weekends and holidays, except that a deadline falling on a Saturday, Sunday, or a federal holiday is understood to move to the next business day. Your filing will be considered timely based on the following criteria relative to the specified deadline:
(1) The postmarked date for items sent by U.S. mail must be on or before the specified date.
(2) The ship date for items sent from any location within the United States by commercial carriers must be on or before the specified date.
(3) Items sent by mail or courier from outside the United States must be received by the specified date.
(4) The time and date stamp on an email message must be at or before 5:00 p.m. on the specified date (in either the source or destination time zone).
(5) The time and date stamp on faxed pages must be at or before 5:00 p.m. on the specified date (in either the source or destination time zone).
(6) Hand-delivered items must be received by the appropriate personnel by 3:00 p.m. on the specified date.
(d) See the standard-setting part for additional information. If the standard-setting part specifies any provisions that are contrary to those described in this subpart, the provisions of the standard-setting part apply instead of those described in this subpart.
§ 1068.610   Request for hearing—suspending, revoking, or voiding a certificate of conformity.
(a) You may request an informal hearing as described in § 1068.650 if you disagree with our decision to suspend, revoke, or void a certificate of conformity.
(b) If you request a hearing regarding the outcome of a testing regimen with established evaluation criteria, such as selective enforcement audits or routine production-line testing, we will hold a hearing limited to the following issues that are relevant to your circumstances:
(1) Whether tests were conducted in accordance with applicable regulations.
(2) Whether test equipment was properly calibrated and functioning.
(3) Whether specified sampling procedures were followed to select engines/equipment for testing.
(4) Whether there is a basis for determining that the problems identified do not apply for engines/equipment produced at plants other than the one from which engines/equipment were selected for testing.
(c) You must send your hearing request in writing to the Designated Compliance Officer no later than 30 days after we notify you of our decision to suspend, revoke, or void your certificate, or by some later deadline we specify. If the deadline passes, we may nevertheless grant you a hearing at our discretion.
(d) Your hearing request must include the following information:
(1) Identify the classes or categories of engines/equipment that will be the subject of the hearing.
(2) State briefly which issues you will raise at the hearing for each affected class or category of engines/equipment.
(3) Specify why you believe the hearing will conclude in your favor for each of the issues you will raise.
(4) Summarize the evidence supporting your position on each of the issues you will raise and include any supporting data.
(e) We will approve your request for an informal hearing if we find that your request raises a substantial factual issue in the decision we made that, if addressed differently, could alter the outcome of that decision.
§ 1068.615   Request for hearing—denied application for certification, automatically suspended certificate, and determinations related to certification.
(a) You may request an informal hearing as described in § 1068.650 if we deny your application for a certificate of conformity, if your certificate of conformity is automatically suspended under the regulations, or if you disagree with determinations we make as part of the certification process. For example, you might disagree with our determinations regarding adjustable parameters under § 1068.50 or regarding your good engineering judgment under § 1068.5.
(b) You must send your hearing request in writing to the Designated Compliance Officer no later than 30 days after we notify you of our decision, or by some later deadline we specify. If the specified deadline passes, we may nevertheless grant you a hearing at our discretion.
(c) Your hearing request must include the information specified in § 1068.610(d).
(d) We will approve your request for an informal hearing if we find that your request raises a substantial factual issue in the decision we made that, if addressed differently, could alter the outcome of that decision.
§ 1068.620   Request for hearing—recall.
(a) You may request an informal hearing as described in § 1068.650 if you disagree with our decision to order a recall.
(b) You must send your hearing request in writing to the Designated Compliance Officer no later than 45 days after we notify you of our decision, or by some later deadline we specify. If the specified deadline passes, we may nevertheless grant you a hearing at our discretion.
(c) Your hearing request must include the information specified in § 1068.610(d).
(d) We will approve your request for an informal hearing if we find that your request raises a substantial factual issue in the decision we made that, if addressed differently, could alter the outcome of that decision.
§ 1068.625   Request for hearing—nonconformance penalties.
(a) You may request an informal hearing as described in § 1068.650 if you disagree with our determination of compliance level or penalty calculation or both. The hearing will address only whether the compliance level or penalty was determined in accordance with the regulations.
(b) Send a request for a hearing in writing to the Designated Compliance Officer within the following time frame, as applicable:
(1) No later than 15 days after we notify you that we have approved a nonconformance penalty under this subpart if the compliance level is in the allowable range of nonconformity.
(2) No later than 15 days after completion of the Production Compliance Audit if the compliance level exceeds the upper limit.
(3) No later than 15 days after we notify you of an adverse decision for all other cases.
(c) If you miss the specified deadline in paragraph (b) of this section, we may nevertheless grant you

a hearing at our discretion.
(d) Your hearing request must include the information specified in § 1068.610(d).
(e) We will approve your request for an informal hearing if we find that your request raises a substantial factual issue in the decision we made that, if addressed differently, could alter the outcome of that decision.
§ 1068.630   Request for hearing—allowable maintenance.
(a) Any manufacturer may request an informal hearing as described in § 1068.650 in response to our decision to identify allowable maintenance associated with new technology as part of the certification process.
(b) You must send your hearing request in writing to the Designated Compliance Officer no later than 30 days after we publish our decision in the Federal Register. If the deadline passes, we may nevertheless grant you a hearing at our discretion.
(c) Your hearing request must include the information specified in § 1068.610(d).
(d) We will approve your request for an informal hearing if we find that your request raises a substantial factual issue in the decision we made that, if addressed differently, could alter the outcome of that decision.
§ 1068.650   Procedures for informal hearings.
(a) The following provisions apply for arranging the hearing:
(1) After granting your request for an informal hearing, we will designate a Presiding Officer for the hearing.
(2) The Presiding Officer will select the time and place for the hearing. The hearing must be held as soon as practicable for all parties involved.
(3) The Presiding Officer may require that all argument and presentation of evidence be concluded by a certain date after commencement of the hearing.
(b) The Presiding Officer will establish a paper or electronic hearing record, which may be made available for inspection. The hearing record includes, but is not limited to, the following materials:
(1) All documents relating to the application for certification, including the certificate of conformity itself, if applicable.
(2) Your request for a hearing and the accompanying supporting data.
(3) Correspondence and other data relevant to the hearing.
(4) The Presiding Officer's written decision regarding the subject of the hearing, together with any accompanying material.
(c) You may appear in person or you may be represented by counsel or by any other representative you designate.
(d) The Presiding Officer may arrange for a prehearing conference, either in response to a request from any party or at his or her own discretion. The Presiding Officer will select the time and place for the prehearing conference. The Presiding Officer will summarize the results of the conference and include the written summary as part of the record. The prehearing conference may involve consideration of the following items:
(1) Simplification of the issues.
(2) Stipulations, admissions of fact, and the introduction of documents.
(3) Limitation of the number of expert witnesses.
(4) Possibility of reaching an agreement to resolve any or all of the issues in dispute.
(5) Any other matters that may aid in expeditiously and successfully concluding the hearing.
(e) Hearings will be conducted as follows:
(1) The Presiding Officer will conduct informal hearings in an orderly and expeditious manner. The parties may offer oral or written evidence; however, the Presiding Officer may exclude evidence that is irrelevant, immaterial, or repetitious.
(2) Witnesses will not be required to testify under oath; however, the Presiding Officer must make clear that 18 U.S.C. 1001 specifies civil and criminal penalties for knowingly making false statements or representations or using false documents in any matter within the jurisdiction of EPA or any other department or agency of the United States.
(3) Any witness may be examined or cross-examined by the Presiding Officer, by you, or by any other parties.
(4) Written transcripts must be made for all hearings. Anyone may purchase copies of transcripts from the reporter.
(f) The Presiding Officer will make a final decision with written findings, conclusions and supporting rationale on all the substantial factual issues presented in the record. The findings, conclusions, and written decision must be provided to the parties and made a part of the record.