56968 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

1 Diesel-cycle engines, referred to simply as

‘‘diesel engines’’ in this document, may also be

referred to as compression-ignition (or CI) engines.

These engines typically operate on diesel fuel, but

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 9, 86, and 89

[AMS–FRL–6155–3]

RIN 2060–AF76

Control of Emissions of Air Pollution

From Nonroad Diesel Engines

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: In this action, EPA is

finalizing new emission standards for

nonroad diesel engines. The affected

engines are used in most land-based

nonroad equipment and some marine

applications. The emission reductions

resulting from the new standards will

translate into significant, long-term

improvements in air quality in many

areas of the U.S. For engines in this

large category of pollution sources, the

standards for oxides of nitrogen and

particulate matter emissions will be

reduced by up to two-thirds from

current standards. Overall, this program

will provide much-needed assistance to

states facing ozone and particulate air

quality problems, which are causing a

range of adverse health effects for their

citizens, especially in terms of

respiratory impairment and related

illnesses.

In compliance with the Paperwork

Reduction Act, this document

announces that the information

collection requirements contained in

this rule were approved by the Office of

Management and Budget.

DATES: The amendments to 40 CFR Parts

86 and 89 are effective December 22,

1998. The amendments to 40 CFR Part

9 are effective October 23, 1998. The

incorporation by reference of certain

publications listed in the regulations is

approved by the Director of the Federal

Register as of December 22, 1998.

ADDRESSES: Materials relevant to this

rule, including the Final Regulatory

Impact Analysis are contained in Public

Docket A–96–40, located at room M–

1500, Waterside Mall (ground floor),

U.S. Environmental Protection Agency,

401 M Street, S.W., Washington, DC

20460. The docket may be inspected

from 8:00 a.m. until 5:30 p.m., Monday

through Friday. A reasonable fee may be

charged by EPA for copying docket

materials.

For further information on electronic

availability of this final rulemaking, see

SUPPLEMENTARY INFORMATION below.

FOR FURTHER INFORMATION CONTACT:

Alan Stout, U.S. EPA, Engine Programs

and Compliance Division, (734) 214–

4805; stout.alan@epamail.epa.gov.

SUPPLEMENTARY INFORMATION:

Regulated Entities

Entities potentially regulated by this

action are those that manufacture or

introduce into commerce new

compression-ignition nonroad engines,

vehicles, or equipment, and entities that

rebuild or remanufacture nonroad

compression-ignition engines. Regulated

categories and entities include:

Category Examples of regulated entities

Industry Manufacturers of new nonroad diesel engines and equipment.

Industry Rebuilders and remanufacturers of

nonroad diesel engines.

This list 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 particular activities may be

regulated by this action, the reader

should carefully examine the

regulations, especially the applicability

criteria in 40 CFR 89.1, and the existing

regulatory language in 40 CFR Part 89.

Questions regarding the applicability of

this action to a particular entity may be

directed to the person listed in FOR

FURTHER INFORMATION CONTACT.

Obtaining Electronic Copies of the

Regulatory Documents

The preamble, regulatory language

and Final Regulatory Impact Analysis

(Final RIA) are also available

electronically from the EPA Internet

Web site. This service is free of charge,

except for any cost already incurred for

internet connectivity. An electronic

version of this final rule is made

available on the day of publication on

the primary Web site listed below. The

EPA Office of Mobile Sources also

publishes Federal Register actions and

related documents on the secondary

Web site listed below.

1. http://www.epa.gov/docs/fedrgstr/

EPA-AIR/ (either select desired date

or use Search feature)

2. http://www.epa.gov/OMSWWW/

(look in What’s New or under the

specific rulemaking topic)

Please note that due to differences

between the software used to develop

the document and the software into

which the document may be

downloaded, changes in format, page

length, etc., may occur.

Table of Contents

I. Introduction

II. Content of the Final Rule

A. Emission Standards and Related

Provisions

B. Test Procedures

C. Durability

D. Averaging, Banking, and Trading

E. Flexibility for Equipment Manufacturers

F. Flexibility for Post-Manufacture

Marinizers

G. Control of Crankcase Emissions

H. Control of Smoke

I. Voluntary Low-Emitting Engine Program

J. Technical Amendments

III. 2001 Review and Ensuring Emissions

Control In Use

A. 2001 Review

B. Ensuring Emissions Control In Use

IV. Technological Feasibility

V. Projected Impacts

A. Environmental Impacts

B. Economic Impacts

C. Cost-Effectiveness

VI. Public Participation

VII. Administrative Requirements

A. Administrative Designation and

Regulatory Analysis

B. Regulatory Flexibility Act

C. Paperwork Reduction Act

D. Unfunded Mandates Reform Act

E. Congressional Review Act

F. National Technology Transfer and

Advancement Act

G. Protection of Children

H. Enhancing Intergovernmental

Partnerships

I. Consultation and Coordination With

Indian Tribal Governments

VIII. Statutory Authority

I. Introduction

Air pollution continues to represent a

serious threat to the health and wellbeing of millions of Americans and a

large burden to the U.S. economy.

Mobile source emission control

programs, however, have a history of

technological success that have made a

very large contribution to reducing

exposure to ambient air pollution. On

June 17, 1994, the Environmental

Protection Agency (EPA) made an

affirmative determination under section

213(a)(2) of the Clean Air Act that

nonroad engines are significant

contributors to ambient ozone or carbon

monoxide (CO) levels in more than one

nonattainment area (59 FR 31306, June

17, 1994). In the same notice, EPA also

made a determination under section

213(a)(4) that other emissions from

compression-ignition (CI) nonroad

engines rated at or above 37 kilowatts

(kW), specifically emissions of

particulate matter (PM) and smoke,

cause or contribute to air pollution that

may reasonably be anticipated to

endanger public health or welfare. Also

in the June 1994 final rule, EPA set a

first phase of emission standards (‘‘Tier

1 standards’’) for nonroad diesel engines

rated 37 kW and above.1, 2 In the Notice
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56969

other fuels may also be used. This contrasts with

otto-cycle engines (also called spark-ignition or SI

engines), which typically operate on gasoline.

2This rulemaking is based on metric units. With

the exception of engine power ratings, English units

are included parenthetically throughout the

preamble. The conversion of engine power ratings

is included in Table 1, but is not repeated in the

rest of the document.

3See also, ‘‘Nonroad Engine and Vehicle

Emission Study—Report and Appendices,’’ EPA–

21A–201, November 1991 (available in Air Docket

A–96–40).

of Proposed Rulemaking (NPRM) for

this final rule (September 24, 1997, 62

FR 50152), EPA extended the finding

under 213(a)(4) to CI nonroad engines

rated under 37 kW. A more detailed

discussion of the history of emission

control programs for nonroad engines

and other mobile sources is included in

the preamble to the proposal for this

rule.

In the NPRM, EPA estimated the

contribution of nonroad diesel engines

for comparison with other emission

sources. For 1996, these engines were

estimated to represent about 27 percent

of mobile source emissions of oxides of

nitrogen (NOX) and 13 percent of total

NOX emissions. EPA estimates that

these engines currently contribute about

48 percent of the directly emitted PM

from mobile sources and 16 percent of

total controllable PM emissions. In

addition to directly emitted PM, EPA

estimates that NOX emissions cause a

significant additional amount of PM in

the form of secondary nitrate particles.

On average nationwide, this indirect PM

represents an additional contribution to

PM equal to about 30 percent of the total

directly emitted PM tonnage. EPA

projections also indicate that without

further emission controls, the already

significant contribution of nonroad

diesels to NOX and PM will increase in

the future. Chapter 5 of the Final

Regulatory Impact Analysis (Final RIA)

presents more complete estimates of

emissions from all land-based nonroad

diesel engines and marine diesel

engines rated under 37 kW.3

This final rule is the result of several

years of activity focused on reducing

diesel engine emissions in the U.S. In

1994 and 1995, states and

environmental groups encouraged EPA

to adopt more stringent emission

standards for highway and nonroad

diesel engines to address the need for

national pollution reduction measures

to improve air quality in many urban

areas. In response, EPA initiated

discussions with engine manufacturers

and other interested parties regarding

future emission controls for these

engines. EPA subsequently finalized

new emission standards for heavy-duty

highway engines starting with the 2004

model year (October 21, 1997 62 FR

54695) and proposed the emission

requirements for nonroad diesel engines

that are finalized in this document

(September 24, 1997, 62 FR 50152).

This document finalizes a new set of

emission standards for all nonroad

diesel engines, except for locomotive

engines, engines used in underground

mining equipment, and marine engines

rated at or above 37 kW. This rule

includes first-ever EPA emission

standards for emissions from diesel

engines rated under 37 kW. The

emission reductions resulting from

these engines will be a major step in

reducing the human health and

environmental impacts of ground-level

ozone and particulate matter. Emissions

from other nonroad engines not covered

by this final rule are being addressed in

other EPA rulemakings.

As EPA has pursued the emission

reductions needed to meet air quality

goals, an important consideration has

been harmonization with standards for

nonroad engines adopted or under

consideration in California, Europe, and

elsewhere in the world. The goal of

harmonization has been a major impetus

and an important factor in the

development of this rule. The principal

goal of harmonization efforts, avoiding

widespread duplicative design

configurations, has been addressed in

finalizing these emission standards.

While some differences remain between

EPA’s final rule and the proposal

established in Europe, EPA plans to

continue its harmonization work with

governments in Europe and in other

countries. One major area in which a

coordinated effort is being pursued is

the development of a more effective

particulate emission control program,

including the evaluation and possible

modification of the certification test

cycle, as discussed in Section III.

Based on the information presented in

the preamble to the proposed rule and

in the Final RIA, EPA believes the new

standards are technologically feasible

and otherwise appropriate under the

Act. Nonetheless, it is clear that a

significant amount of research and

development will be needed on the part

of engine manufacturers and others to

comply with the new standards.

Accordingly, EPA intends to review the

feasibility of some of the standards

finalized in this document by 2001, as

described in Section III.

II. Content of the Final Rule

This rulemaking includes a

comprehensive program to reduce

emissions from nonroad diesel engines

and equipment. The program as

finalized consists of stringent new

emission standards, requirements to

ensure that engines maintain their level

of emission performance as they age,

provisions providing compliance

flexibility to engine and equipment

manufacturers, and a voluntary program

to encourage the introduction of lowemitting engines.

A. Emission Standards and Related

Provisions

EPA is finalizing new emission

standards for PM, CO, and nonmethane

hydrocarbons (NMHC) and NOX

combined, covering all nonroad diesel

engines except for locomotives, engines

used in underground mining

equipment, and large (rated at or above

37 kW) engines used in marine

applications. Engines not included in

this rulemaking are or will be addressed

by other federal programs. EPA is

finalizing a set of emission standards

that vary in level and implementation

date, depending on the rated power of

the engine and other factors. The

Agency believes that the standards

finalized in this document are

consistent with the Clean Air Act

requirement that standards represent the

‘‘greatest degree of emission reduction

achievable’’ given the criteria specified

by the Act (see Section IV below).

1. Emission Standards

In general, new emission standards

for engines rated between 37 and 560

kW are finalized in two tiers, building

on the phase-in schedule adopted in

1994 in the Tier 1 rule. Table 1 lists the

range of standards for the different

power categories, including all the tiers

of standards with the affected model

years. These standards approximate the

degree of control anticipated from

existing standards covering engines

used in heavy-duty diesel highway

vehicles, with appropriate consideration

of differences in the sizes and

operational characteristics of the

engines and in the organization of the

industries. Specifically, the first set of

new standards (Tier 2) generally parallel

the emission standards that apply

beginning with 1998 model year

highway engines (58 FR 15781, March

24, 1993). The second set of new

standards (Tier 3) parallel standards that

apply beginning with 2004 highway

engines (October 21, 1997, 62 FR

54695). The standards for engines rated

at or above 37 kW become effective in

the 2001 to 2006 time frame for Tier 2

levels and 2006 to 2008 for Tier 3 levels.

BILLING CODE 6560–50–P
56970 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

BILLING CODE 6560–50–C
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56971

4 ‘‘Summary and Analysis of Comments on the

Notice of Proposed Rulemaking for Emission

Standards and Test Procedures for Methanol-Fueled

Vehicles and Engines,’’ EPA, January 1989.

The standards finalized in this

document for engines rated under 37

kW are the first EPA emission standards

for these engines. The Tier 1 standards

will be phased in by power category

beginning in 1999, with Tier 2 standards

phased in by power category beginning

in 2004. Tier 3 standards are not being

set for these engines, or for engines

rated over 560 kW, in this rule.

In power categories for which Tier 3

standards are finalized, the Agency has

chosen not to include more stringent

PM standards. As discussed in Section

III below, EPA has a number of reasons

for deferring the establishment of a Tier

3 PM control program at this time, but

is actively working toward this goal.

The Agency believes that Tier 3 PM

standards will be more appropriately

discussed in the context of the

improved technical understanding that

will exist by the time of the 2001

feasibility review, also discussed in

Section III.

EPA will maintain the current smoke

standards for nonroad diesel engines

rated at or above 37 kW and will extend

the applicability of these standards to

nonroad diesel engines rated under 37

kW, except 1-cylinder engines and

marine propulsion engines. In addition,

constant-speed engines are being

exempted from smoke regulations. This

is discussed in detail in Section II.H.

2. Related Provisions

a. Definition of Compression-Ignition.

The requirements of 40 CFR Part 89

apply to all compression-ignition

engines. Most current compressionignition engines burn diesel fuel and

operate over the conventional diesel

cycle, which generally allows

interchangeable use of the terms

‘‘compression-ignition,’’ ‘‘diesel-cycle,’’

and ‘‘diesel.’’ Some of these engines,

however, can be modified to operate on

other fuels such as natural gas or

liquefied petroleum gas. Because these

engines do not clearly fall into existing

engine categories, EPA proposed a

definition for nonroad compressionignition engines that follows from

definitions established for highway

engines. The proposed definition

focuses on the engine cycle, rather than

the ignition mechanism, with the

presence of a throttle as an indicator to

distinguish between diesel-cycle and

otto-cycle operation. Use of a throttle to

regulate power (not just to maintain

smooth low-load operation) corresponds

with otto-cycle operation. Regulating

power by controlling the fuel supply in

lieu of a throttle corresponds with lean

combustion and diesel-cycle operation.

This language allows the possibility that

a natural gas-fueled engine equipped

with a sparkplug will be considered a

compression-ignition engine, but EPA

continues to believe that the proposed

definition is the best way to segregate

these engines. Nonroad engines fueled

by natural gas could then fall under

emission standards for nonroad diesel

engines, finalized in this document, or

for nonroad spark-ignition engines,

which are currently under development.

The supporting documentation for

EPA’s introduction of emission

standards for methanol-fueled engines

provides a more complete consideration

of the different technologies involved

and lays out a rationale for this

conclusion.4 To allow adequate time to

certify engines that may be affected, this

definition will take effect beginning

January 1, 2000.

b. Hobby Engines. Many extremely

small engines used to power model

airplanes, model boats, and other such

hobby equipment qualify as nonroad

compression ignition engines. EPA is

not establishing an emission standard

for these small hobby engines at this

time. These engines are designed and

operated very differently than larger

engines used in other applications. The

Agency is not aware of information

about these engines that would allow an

assessment of the feasibility of the

proposed standards, or help to establish

feasible alternative standards, taking

into consideration the factors relevant

under section 213(a)(3) of the Act. Also,

it is not clear whether such small

engines could be appropriately and

consistently tested with existing

equipment, or, if so, whether any of the

test cycles described below would

adequately represent the in-use

operation of these engines. Furthermore,

EPA could not realistically impose the

proposed useful life requirements or the

warranty and maintenance interval

provisions on these engines given their

limited durability and frequent

adjustment by the user. It should be

noted that these engines have a low

average annual hours of usage and an

extremely low power output, and

therefore contribute very little to the

emissions inventory.

Although there are many

distinguishing features of this hobby

class of engines, the comments received

on the proposal indicate that percylinder displacement provides an

adequate and simple basis for

distinguishing this class from other

types of engines. Even though the

Agency lacks the information that

would allow a precise determination of

the displacement level above which the

proposed standards can be considered

feasible, a displacement of 50 cubic

centimeters per cylinder is well above

the displacement level that is typical of

this class of engines, and well below

that of the smallest engines outside this

group. Therefore, the final rule excludes

engines with a displacement of less than

50 cubic centimeters per cylinder from

the emissions standards in Part 89.

c. NMHC Measurement. EPA in this

final rule changes from a measurement

of total hydrocarbons to nonmethane

hydrocarbons. There is, however, no

standardized method for measuring

methane in diesel engine exhaust.

Therefore, EPA will allow

manufacturers to develop and use their

own procedure to analyze nonmethane

hydrocarbons, with prior approval from

EPA, or measure total hydrocarbons and

subtract 2 percent from the measured

hydrocarbon mass to correct for

methane.

d. Selective Enforcement Audits. In

the Tier 1 rule, the Agency adopted a

program of Selective Enforcement

Audits (SEAs) to ensure that actual

production engines meet the emissions

standards. The Agency is not making

changes to this program. However,

recognizing that engine manufacturers

will be required to undertake significant

engineering challenges in relatively

short time frames in order to meet the

Tier 2 and Tier 3 standards adopted in

this rulemaking, including the challenge

of stabilizing initial production

variability, EPA will only impose SEAs

during the first year in which a standard

is in effect for those engine families

where strong evidence exists that SEA

failure would be likely.

B. Test Procedures

The standards finalized in this

document are based on the use of EPA’s

existing steady-state (modal) test

procedures. In addition, new steadystate test cycles are specified for

constant-speed engines, marine

propulsion engines, and engines rated

under 19 kW. The Agency and the

industry are working to better

understand the sensitivity of nonroad

diesel engine emissions to the test cycle,

as discussed in Section III. The

following sections describe EPA’s

selection of various test cycles and fuel

specifications.

1. Test Cycles

Compliance with emission standards

is determined by measuring emissions

while operating engines over a

prescribed test cycle. The final rule,

following the practice established in the
56972 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

5For a description of the development of the D2

cycle, see ‘‘Exhaust Emission Testing of Diesel

Engines for Industrial Applications,’’ (Docket A–

96–40, item II-D–26).

Tier 1 rule, specifies a cycle that is

nominally the same as the International

Organization for Standards (ISO) 8178

C1 test cycle as the principle test cycle

for measuring emissions from most

engines. Additional cycles are defined

for specific engine types. Engines that

are limited by design to constant-speed

operation will be subject to testing using

a test cycle equivalent to the ISO 8178

D2 cycle. This cycle, which omits idle

and intermediate-speed modes from the

C1 cycle, is representative of engines

such as generators, which are designed

never to run at these omitted speeds.5

Because of the more limited range of

engine operation in the D2 cycle,

manufacturers must ensure that engines

certified with data generated with the

D2 cycle are used exclusively in

constant-speed applications.

Accordingly, these engines must

include labeling information indicating

this limited emission certification.

For variable-speed engines rated

under 19 kW, EPA is specifying a test

cycle that is equivalent to the ISO 8178

G2 cycle. The G2 cycle includes the

same modes as the D2 cycle and adds

a mode for operation at idle. The G2 and

D2 cycles also have different weighting

factors for the various modes. The G2

cycle was developed to represent the

operation of small diesel engines used

primarily at rated speed, such as in

lawn and garden applications,

generators, pumps, welders, and air

compressors. EPA is specifying a test

cycle equivalent to the ISO 8178 E3

cycle for testing propulsion marine

engines rated under 37 kW. The E3

cycle, which consists of engine

operation at four different engine speeds

and four different loads, was developed

by ISO to represent the operation of

propulsion marine engines, and has

been supported by an Agency

investigation. Auxiliary marine engines

subject to this rule (i.e., engines

installed on a marine vessel, but not

used for propulsion) will be tested using

the either G2, C1, or D2 test cycles,

consistent with the constraints

described above for the counterpart

land-based nonroad engines.

Finally, EPA will generally allow

manufacturers to use the C1 test cycle

to generate certification data for engines

otherwise required to use the D2 or G2

test cycle. EPA will also allow

manufacturers to use the C1 test cycle

to generate certification data for

propulsion marine engines where such

engines are included in a land-based

engine family. In each of these cases in

which the manufacturer elects to use the

C1 cycle, EPA would retain its ability to

test using the respective G2, D2, or E3

test cycle, but would also be able to test

using the C1 test cycle. Additional

discussion of EPA plans for further

evaluation and development of

appropriate test cycles is provided in

Section III.

2. Test Fuel

Section 206(h) of the Clean Air Act

requires that test fuels be representative

of in-use conditions. Therefore EPA is

updating the specifications for the

sulfur content in diesel test fuels to

make them more representative of inuse fuels. EPA is finalizing test fuel

specifications with a sulfur specification

of 0.03 to 0.40 weight-percent (wt%),

which covers the range of sulfur levels

observed for most in-use fuels. The final

sulfur specifications are slightly

different from that proposed (0.05 to 0.5

wt%), because EPA believes the final

specification more appropriately covers

the range of sulfur levels found in the

majority of in-use fuels. Manufacturers

will be free to test using any fuel within

this range. Thus, they will be able to

harmonize their nonroad test fuel with

either on-highway testing (<0.05 wt%)

or with European testing (0.1 to 0.2

wt%). Testing conducted by EPA would

use test fuels typical of in-use fuels.

At this time, EPA believes that the

average sulfur level of diesel fuel being

used in current nonroad engines is on

the order of 0.2 wt%. In order to provide

manufacturers with some certainty

regarding how EPA will implement its

test fuel policy, the Agency is including

a regulatory provision specifying that it

will use test fuels with sulfur levels no

greater than 0.20 wt% when it performs

testing of Tier 1 engines and Tier 2

engines rated at or above 37 kW. EPA

is not applying this provision to Tier 3

engines or Tier 2 engines rated under 37

kW because those standards do no take

effect for some time, and EPA has no

basis for determining what the

properties of in-use fuels for these

engines will be. Moreover, EPA has not

determined that it would be an

appropriate long-term policy to specify

a narrow range for the sulfur

specification. This would be especially

true for engines utilizing catalytic

aftertreatment to reduce particulate

emissions. Such engines may comply

with the emission standards when

tested using a moderately low sulfur

fuel, but have much higher particulate

emissions when using a higher sulfur

fuel with a sulfur level between 0.3 and

0.4 wt%. Although not addressing it at

this time, EPA intends to examine test

fuels for Tier 3 engines and Tier 2

engines rated under 37 kW in its 2001

feasibility review.

In the 1994 final rule, EPA allowed

manufacturers to test for certification of

PM emission levels using the low-sulfur

test fuel specified by the California Air

Resources Board (California ARB) for

nonroad diesel engines, with a

maximum sulfur content of 0.05 wt%.

EPA’s objective was to minimize any

difference from the protocol previously

established for California, because EPA

finalized PM standards for engines rated

over 130 kW only in response to

industry’s request to adopt California’s

PM standard, which was not considered

technology-forcing. Under those

previous regulations, testing with

federal test fuel involved an optional

adjustment of measured PM levels to

account for the higher PM emissions

associated with the higher fuel sulfur

content.

Effective with the Tier 2 standards

(and Tier 1 standards for engines rated

under 37 kW), EPA is eliminating the

particulate adjustment factor for test

fuels with different sulfur levels. Such

an adjustment, while potentially

appropriate for an initial, modest

particulate emission control program for

a newly regulated industry, is not

appropriate as a long-term policy. EPA

is now establishing PM standards that

will require meaningful reductions from

all sizes of engines used nationwide.

The Clean Air Act requires EPA to

ensure that the test procedure, including

fuel specifications, adequately represent

in-use operation. Moreover, EPA has

significant concerns regarding the

accuracy of the previously used

adjustment factor equation, which was

based on limited data. However, even if

more complete data were available, it

would not be possible for a single

adjustment factor equation to accurately

predict the effect of different sulfur

levels on particulate emissions for each

engine model. This is because the effect

of sulfur levels on particulate emissions

can vary significantly from engine

family to engine family, especially for

engines with and without

aftertreatment.

EPA recognizes that the sulfur level of

test fuels has an effect on the stringency

of the standards, and that the

elimination of the particulate

adjustment factor has the effect of

making the particulate standards more

stringent than they otherwise would

have been. Using the calculated

adjustment to PM emission levels for

fuel sulfur finalized in 1994, the

difference between 0.20 and 0.05 wt%

would result in an adjustment on the

order of 0.03 grams per kilowatt-hour (g/
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56973

6 ICF Incorporated, ‘‘Industry Characterization:

Nonroad Heavy Duty Diesel Engine Rebuilders,’’

prepared for U.S. Environmental Protection Agency,

Contract 68–C5–0010, WAN 102, January 3, 1997,

(Docket A–96–40, item II–A–02).

kW-hr) (0.02 grams per horsepowerhour (g/hp-hr)) in PM emission levels.

(Testing for NOX, NMHC, CO, and

smoke is not affected, since the 1994

final rule already specified that federal

test fuel was appropriate without

adjustment for measuring emissions of

those pollutants.) However, EPA has

considered this effect in making its

determination that the standards being

adopted in this rulemaking are feasible.

C. Durability

To achieve the full benefit of the

emissions standards, programs are

necessary to encourage manufacturers to

design and build engines with durable

emission controls and encourage the

proper maintenance and repair of

engines throughout their lifetime. The

goal is for engines to maintain good

emission performance throughout their

in-use operation.

When the Tier 1 standards for engines

rated at or above 37 kW were developed,

deterioration was not expected to be a

problem for two reasons. First, the Tier

1 standards were not considered by EPA

to be technology forcing. Second, the

focus was on NOX control and NOX

emissions performance was thought not

to deteriorate for these engines. As a

result, there are few requirements in the

current regulations that address

deterioration concerns for nonroad

diesel engines. As tighter standards are

put into place, EPA believes that it

becomes necessary to adopt measures to

address concerns about possible in-use

emission performance degradation.

EPA is making some changes to the

existing durability program, as the new

standards are phased in, to help ensure

that engines meet applicable standards

in use. The specific areas of the

durability program that are being

focused on here are useful life, warranty

period, deterioration factors, allowable

maintenance intervals, and rebuilding

requirements.

1. Useful Life

Currently, nonroad diesel engines

rated at or above 37 kW are defined, for

emission control purposes, to have a

useful life of 8,000 hours or 10 years,

whichever occurs first. The in-use

testing liability period is currently 6,000

hours or 7 years, whichever occurs first.

Based on a study performed for EPA,

this is representative of the average time

until first rebuild for the majority of

nonroad diesel engines.6 EPA is making

no changes to these requirements.

EPA is adopting a shorter useful life

and liability period for engines rated

under 37 kW than for larger engines.

Based on EPA’s current understanding,

these smaller engines have a shorter life

expectancy. Also, engines rated under

37 kW that operate constantly at high

speeds (at or above 3000 revolutions per

minute (rpm)) and very small engines

(those rated under 19 kW) have a shorter

life expectancy than other small

engines. As a result, EPA has adjusted

the useful lives and liability periods for

these engines accordingly. Table 2

presents the specified useful lives and

in-use testing liability periods being

adopted.

TABLE. 2—USEFUL LIFE AND RECALL TESTING PERIODS

Power rating Rated engine speed

Useful life Recall testing period

Hours Years Hours Years

<19 kW ................................ All .................................................................................... 3,000 5 2,250 4

19–37 kW ............................ Constant speed engines @≥3,000 rpm .......................... 3,000 5 2,250 4

All others ......................................................................... 5,000 7 3,750 5

Liability periods were based on the

ratio of useful life and liability periods

established for engines rated at or above

37 kW. The purpose of having liability

periods that are shorter than the useful

lives is to ensure that engines used in

recall testing are not statistical outliers

with poor emissions durability.

However, if a recall were ordered, all

engines in that family would be subject

to the recall regardless of their age.

2. Warranty Period

Tied to the useful life is the minimum

warranty period imposed by the Clean

Air Act on manufacturers of nonroad

engines. Currently, the minimum

warranty period for nonroad diesel

engines rated at or above 37 kW is 3,000

hours or 5 years of use, whichever

occurs first. EPA is extending this

minimum warranty period to most

engines rated between 19 and 37 kW;

however, for engines under 19 kW and

for 19 to 37 kW constant speed engines

rated at 3000 rpm and above, EPA is

specifying a warranty period of 1,500

hours or 2 years, whichever occurs first.

The shorter warranty requirement for

these engines is due to their shorter

useful lives.

3. Deterioration Factors

In the Tier 1 nonroad engine rule,

EPA did not require manufacturers to

accumulate operating time on durability

data engines or to generate deterioration

factors for engine certification because

that rule focused on modest reductions

in NOX emissions, requiring emission

control technologies that were not

expected to deteriorate. Analysis of

highway engine data at that time led

EPA to conclude that heavy-duty diesel

engines do not generally produce more

NOX emissions as they get older. EPA

believes that this stability of emission

control can be attributed to the fact that

diesel engine manufacturers have met

emission standards through internal

improvements to the engine and fuel

systems, rather than relying on

aftertreatment and other devices that

would be more susceptible to in-use

degradation. In fact, engine

deterioration in current technology

nonroad diesel engines could result in

lower NOX emission levels due to a loss

in cylinder compression.

As NOX, NMHC, and PM standards

are made more stringent and nonroad

diesel engine manufacturers introduce

new technologies solely for emission

control purposes, such as aftertreatment,

sophisticated fuel delivery controls, and

exhaust gas recirculation (EGR), longterm emissions performance becomes a

greater concern. In addition, emission

deterioration characteristics are not well

known for aftertreatment, EGR, and

other more sophisticated emission

control strategies.

EPA will require the application of

deterioration factors (DFs) to all engines

covered by this rule. The DF is a factor

applied to the certification emission test

data to represent emissions at the end of

the useful life of the engine. Separate

DFs apply to each measured pollutant,

except that a combined NMHC + NOX

DF applies to engines that do not use

aftertreatment devices, consistent with

the form of the standard. Consistent
56974 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

with the approach taken in other EPA

programs, decreasing emissions of one

pollutant over time would not be

allowed to offset increasing emissions of

the other pollutant in this combined DF.

Currently, DFs are required for highway

heavy-duty engines but are only

required for nonroad diesel engines

rated at or above 37 kW if engines use

aftertreatment technologies.

Deterioration factors for those engines

are to be determined by the engine

manufacturers in accordance with good

engineering practices. EPA has not set a

specified procedure. The deterioration

factors are nevertheless subject to EPA

approval.

It is not EPA’s intent to force a great

deal of data gathering on engines using

established technology for which the

manufacturers have the experience to

develop appropriate DFs. New DF

testing may not be needed where

sufficient data already exists. EPA’s

main interest is that technologies with

unproven durability in nonroad

applications, such as EGR, are

demonstrated to meet emission

requirements throughout their useful

lives. However, because this rule creates

a program that will introduce new

standards and new technologies over

many years, the DF requirement is being

finalized for all engines so that EPA can

be sure that reasonable methods are

being used to ascertain the capability of

engines to meet standards throughout

their useful lives. This DF program will

allow EPA to act in the traditional role

of establishing emission performance

standards, rather than putting EPA in a

position in which it would appear to be

prejudging the durability of specific

technologies and designs.

Similar to the provisions for highway

engines, EPA will allow the nonroad

engine manufacturers the flexibility of

using durability emission data from a

similar engine that has either been

certified to the same standard or for

which all of the data applicable for

certification has been submitted. In

addition, EPA is extending this

flexibility to allow deterioration data

from highway engines to be used for

similar nonroad engine families.

EPA is especially concerned that an

unnecessarily burdensome durability

demonstration not be required for

engines using established technology for

which the manufacturers have the

experience to determine appropriate

deterioration factors. In these cases, EPA

will allow nonroad engine

manufacturers to perform an analysis,

based on good engineering practices, in

place of actual service accumulation.

For instance, in the case where no

durability data exists for a certain

engine but both smaller and larger

engines using similar technology have

been shown not to deteriorate for NOX

in use, it would be possible to build a

case showing no NOX deterioration for

that engine. EPA is allowing engines to

be considered as using established

technologies if they do not meet the Tier

3 emission standards, unless they use

EGR or aftertreatment devices. In

addition, manufacturers of engines that

do meet the Tier 3 standards but have

technologies similar to those employed

in Tier 2 designs may also rely on

engineering analysis in lieu of actual

service accumulation, with prior EPA

approval.

Because there may be insufficient

time for manufacturers of engines rated

below 37 kW to verify DFs before the

Tier 1 compliance dates, the Agency is

allowing manufacturers to specify DFs

for these engines in model years 1999

and 2000 based on good engineering

judgement using reasonably available

information. Any requests for carryover

of these models into the 2001 model

year would need to include justification

of DFs under the new requirements.

4. Allowable Maintenance Intervals

Manufacturers are currently required

to furnish the ultimate purchaser of

each new nonroad engine with written

instructions for the maintenance needed

to ensure proper functioning of the

emission control system. Generally,

manufacturers require the owners to

perform this maintenance as a condition

of their emission warranties. Further,

the performance of maintenance would

be considered during any in-use recall

testing conducted by the Agency.

For the engines covered in this action,

EPA believes that there is a need to limit

the minimum maintenance intervals

specified by the manufacturers, to

ensure that the technologies employed

are practical in use. Because the actual

maintenance intervals for nonroad

engines are likely to be similar to

highway engines, EPA proposed

maintenance requirements parallel

those for highway engines (40 CFR

86.094–25).

There are two aspects to the

implementation of allowable

maintenance interval requirements. The

first relates to the maintenance

instructions specified by manufacturers

in users manuals. The second concerns

how often maintenance has been or will

be performed on engines undergoing

testing to verify compliance with

emission standards. Ideally these would

be consistent. However, due to concerns

about the need for more frequent

maintenance in the severe operating

environments that nonroad engines

sometimes operate in, EPA is focusing

its allowable maintenance interval

requirements on testing performed by

manufacturers to demonstrate

compliance. This testing would not, of

course, occur in severe operating

environments. Manufacturers have a

business incentive to avoid specifying

overly frequent maintenance in user

manuals, and so EPA is not, at this time,

insisting that the intervals be reflected

in user manuals. In addition,

manufacturers may adopt shorter

intervals for engines rated below 19 kW

and 19 to 37 kW constant speed engines

rated at 3000 rpm and above, subject to

EPA approval. Subject to these

modifications, the Agency is finalizing

the proposed allowable maintenance

interval requirements.

The following minimum intervals are

being adopted for adjustment, cleaning,

repair, or replacement of various

components:

At 1,500 hours, and 1,500-hour

intervals thereafter:

1. EGR related filters and coolers

2. Positive crankcase ventilation valve

3. Fuel injector tips (cleaning only)

At 3,000 hours, and 3,000-hour

intervals thereafter for engines rated

under 130 kW or 4,500-hour intervals

thereafter for engines rated over 130 kW:

1. Fuel injectors

2. Turbocharger

3. Electronic engine control unit and its

associated sensors and actuators

4. PM trap or trap-oxidizer system

5. EGR system (including all related

control valves and tubing)

6. Catalytic convertor

7. Any other add-on emissions-related

component

Add-on emission-related components

are those whose sole or primary purpose

is to reduce emissions or whose failure

will significantly degrade emission

control, yet not significantly affect the

performance of the engine.

In addition, EPA is defining the

following components as critical

emission-related components:

1. Catalytic convertor

2. Electronic engine control unit and its

associated sensors and actuators

3. EGR system (including all related

filters, coolers, control valves and

tubing)

4. Positive crankcase ventilation valve

5. PM trap or trap-oxidizer system

6. Any other add-on emissions-related

component

If maintenance is scheduled on

critical emission-related components inuse, EPA requires that the manufacturer

show the reasonable likelihood that the

maintenance will, in fact, be performed
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56975

in use. The regulations list options for

this demonstration, including showing

that performance would degrade

without maintenance, providing survey

data showing that the maintenance is

performed, using a visible signal system,

offering free maintenance, and other

methods approved by the

Administrator. These special provisions

do not apply to critical emission-related

components for which no maintenance

is specified over the useful life of the

engine.

5. Rebuilding Requirements

In this action, EPA is addressing two

concerns regarding the rebuilding of

nonroad diesel engines, both related to

new emission-related components that

may be added to the engine to meet the

new standards. First, EPA is concerned

that during engine rebuilding, there may

not be an incentive to check and repair

emission controls that do not affect

engine performance. Second, EPA is

concerned that there may be an

incentive to rebuild engines to an older

configuration due to real or perceived

performance penalties associated with

technologies that would be used to meet

the standards finalized in this

document. Such practices would likely

result in a loss in emission control.

EPA is requiring that parties involved

in the process of rebuilding or

remanufacturing engines (which may

include the removal of the engine,

rebuilding, assembly, reinstallation and

other acts associated with engine

rebuilding) must follow the provisions

listed below to avoid tampering with the

engine and emission controls. The

applicability for these provisions is

based on the date the engine was

originally built. The rebuild

requirements only apply to engines

subject to the new standards being

established in this rule.

(1) During engine rebuilding, parties

involved must have a reasonable

technical basis for knowing that the

rebuilt engine is equivalent, from an

emissions standpoint, to a certified

configuration (i.e., tolerances,

calibrations, and specifications), and

must identify the model year(s) of the

resulting engine configuration. This

allows for a rebuilder who is unable to

identify the original certified

configuration to rebuild the engine to

any certified configuration.

(2) When an engine is being rebuilt

and remains installed or is reinstalled in

the same piece of equipment, it must be

rebuilt to a configuration of the same or

later model year as the original engine.

When an engine is being replaced, the

replacement engine must be an engine

of (or rebuilt to) a certified configuration

that is equivalent, from an emissions

standpoint, to the engine being

replaced. This allows for rebuilt engine

configurations that, although of a

different model year than the original

engine, were designed for the same tier

of emission standards. If the

replacement engine is new, it must also

meet the requirements of 40 CFR

89.1003(b)(7), discussed in section II.E.3

below.

(3) At the time of rebuild, emissionrelated codes or signals from on-board

monitoring systems may not be erased

or reset without diagnosing and

responding appropriately to the

diagnostic codes. Diagnostic systems

must be free of all such codes when the

rebuilt engines are returned to service.

Further, such signals may not be

rendered inoperative during the

rebuilding process.

(4) When conducting an in-frame

rebuild or the installation of a rebuilt

engine, all emission-related components

not otherwise addressed by the above

provisions must be checked and

cleaned, repaired, or replaced where

necessary, following manufacturer

recommended practices.

Under this final rule, any person or

entity engaged in the process, in whole

or part, of rebuilding engines who fails

to comply with the above provisions

may be liable for tampering. Parties are

responsible for the activities over which

they have control and as such there may

be more than one responsible party for

a single engine in cases where different

parties perform different tasks during

the engine rebuilding process (e.g.,

engine rebuild, full engine assembly,

installation). EPA has included no

certification or in-use emissions

requirements for the rebuilder or engine

owner in this final rule.

EPA has adopted modest

recordkeeping requirements that EPA

believes are in line with customary

business practices. The records must be

kept by persons involved in the process

of nonroad engine rebuilding or

remanufacturing and shall include the

best available information on the total

operating hours at time of rebuild and

a list of the work performed on the

engine and related emission control

systems, including a list of replacement

parts used, engine parameter

adjustments, design element changes,

and work performed as described in

item (4) of the rebuild provisions above.

EPA now requires that such records be

kept for two years after the engine is

rebuilt.

Under this final rule, parties are

required to keep the information for two

years but are allowed to use whatever

format or system they choose, provided

that the information can be readily

understood by an EPA enforcement

officer. EPA will not require that parties

keep information that they do not have

access to as part of normal business

practice. In cases where it is customary

practice to keep records for engine

families rather than specific engines,

where the engines within that family are

being rebuilt or remanufactured to an

identical configuration, such

recordkeeping practices should be

satisfactory. Rebuilders may use records

such as build lists, parts lists, and

engineering parameters of the engine

families being rebuilt rather than

keeping information on individual

engines, provided that each engine is

rebuilt in the same way to those

specifications.

D. Averaging, Banking, and Trading

In this final rule, EPA is replacing the

existing nonroad engine averaging,

banking, and trading (ABT) program

with a comprehensive new program.

EPA believes the revised program is an

important element in making the

stringent emissions standards adopted

in this final rule appropriate with regard

to technological feasibility, lead time,

and cost. The revised ABT program is

intended to enhance the flexibility

offered to engine manufacturers that

will be needed in transitioning their

entire product lines to meet the

stringent NMHC + NOX standards and

the PM standards being adopted. The

ABT program also encourages the early

introduction of cleaner engines, thus

securing earlier emission benefits. It

should be noted that as part of the 2001

feasibility review described earlier, the

Agency plans to reassess the

appropriateness of the averaging,

banking, and trading provisions

applicable to nonroad diesel engines

and modify the provisions if deemed

necessary.

The revised ABT program will apply

to all nonroad diesel engines subject to

Part 89. The following discussion of the

revised ABT provisions is divided into

two sections. The first section describes

the provisions for engines rated at or

above 37 kW. The second section

describes the provisions for those

engines rated under 37 kW, including

land-based and marine engines, both of

which are currently unregulated by

EPA.

1. Revised Program for Engines Rated at

or Above 37 kW

The following section is divided into

two subsections and describes the

revised ABT program for engines at or

above 37 kW. The first subsection

describes the general provisions
56976 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

applicable to all engines. The second

subsection describes several provisions

specific to engines certified to the

existing Tier 1 standards for engines at

or above 37 kW.

a. General Provisions. Beginning with

the Tier 2 standards, the form of the

standard changes from separate

hydrocarbon and NOX standards to a

combined NMHC + NOX standard.

Therefore, once the Tier 2 standards

take effect, credits will be based on

combined NMHC + NOX values. In the

Tier 2 time frame, NMHC + NOX credits

will be generated against the Tier 2

standards, which vary from 6.4 to 7.5 g/

kW-hr (4.8 to 5.6 g/hp-hr), depending on

the power rating of the engine. In the

Tier 3 time frame, NMHC + NOX credits

will be generated against the Tier 3

standards, which vary from 4.0 to 4.7 g/

kW-hr (3.0 to 3.5 g/hp-hr), depending on

the power rating of the engine.

The existing Tier 1 ABT program for

nonroad engines does not cover PM

emissions. Beginning with the

introduction of Tier 2 engines, EPA is

including PM emissions in the ABT

program in order to provide

manufacturers with greater flexibility in

complying with the new PM standards.

(As described later, EPA is allowing the

early banking of PM credits from Tier 1

engines.) All PM credits will be

generated against the Tier 2 standards

until EPA adopts subsequent PM

standards. Because EPA is including

both NMHC + NOX and PM in the ABT

program and given the tradeoff between

NOX and PM emissions, manufacturers

will not be allowed to generate credits

against the applicable standard for one

pollutant while using credits against the

applicable standard for another

pollutant on the same engine family.

EPA is setting upper limits to the

family emission limit (FEL) values that

may be declared under the new

standards. EPA is adopting an NMHC +

NOX FEL upper limit of 10.5 g/kW-hr

(7.9 g/hp-hr) for engines at or above 130

kW certified in the Tier 2 time frame.

For Tier 2 engines at or above 37 kW

and less than 130 kW, EPA is adopting

a NMHC + NOX FEL upper limit of 11.5

g/kW-hr (8.6 g/hp-hr). For Tier 3 engine

families, the NMHC + NOX FEL upper

limits are the Tier 2 NMHC + NOX

standards for the same power category

of engines.

For PM, EPA is adopting a PM FEL

upper limit of 0.54 g/kW-hr (0.40 g/hphr) for engines at or above 130 kW

certified in the Tier 2 time frame.

Engines at or above 37 kW and less than

130 kW will have a PM FEL upper limit

of 1.2 g/kW-hr (0.9 g/hp-hr) for Tier 2

engines. (EPA is not adopting a PM FEL

upper limit beyond Tier 2 because EPA

is not adopting Tier 3 PM standards at

this time.)

There are several other provisions

EPA is adopting for the revised ABT

program. EPA is replacing the three year

credit life provision of the existing ABT

program with no limit on credit life. In

addition, EPA is eliminating the ‘‘buy

high/sell low’’ power conversion factor

provision of the existing ABT

regulations and replacing it with a salesweighted average power value. EPA is

including an adjustment in the

calculation of credits for the useful life

of the engine. (The existing ABT

program does not include any

adjustment for useful life to the credit

calculations.) EPA is also allowing

manufacturers to include engines

certified to meet the State of California’s

standards in the revised ABT program

because the California ARB is expected

to adopt the same standards for their

nonroad compression-ignition engine

control program.

In a similar manner to the existing

ABT provisions for Tier 1 engines at or

above 37 kW, EPA is not requiring any

discounting of credits from Tier 2 or

Tier 3 engines with this final

rulemaking. EPA plans to monitor the

emission levels of engines and the use

of the ABT program over the next few

years. EPA will take this information

into account and plans to reassess the

appropriateness of not having any

discounting of credits from Tier 2 and

Tier 3 engines as part of the 2001

feasibility review.

Finally, EPA has decided not to

finalize two ABT provisions discussed

in the proposal for this rule. First, as

discussed later in the equipment

manufacturer flexibility section, EPA is

not adopting the proposed provision

that would have given engine

manufacturers the option to trade the

NMHC + NOX and PM credits generated

by their engines to equipment

manufacturers. This is discussed further

in Section II.E of this final rule. Second,

EPA is not adopting a restriction which

would have limited the use of PM

credits to the power category in which

the credits were generated. As with the

existing Tier 1 ABT program, credits

may be exchanged across all power

categories at or above 37 kW. (As

described below, there are some

restrictions on the trading of credits for

engines below 37 kW and trading

credits between land-based applications

and marine applications.)

b. Special Provisions for Tier 1

Engines. As described above, EPA is

replacing the existing ABT program

with a comprehensive new program.

Based on EPA’s experience with Tier 1

certification and because of

implementation differences between the

existing Tier 1 provisions and the newly

adopted Tier 2 and later provisions,

EPA is adopting two changes that will

specifically affect engines certified to

the existing Tier 1 standards. First, EPA

is adopting a methodology for

calculating NOX credits earned from

Tier 1 engines that can be used for

showing compliance with the Tier 2

NMHC + NOX standards. Second, EPA

is allowing engine manufacturers to

bank early PM credits from Tier 1

engines that can be used once the newly

adopted Tier 2 standards take effect.

The changes noted in the general

provisions discussion above, including

the unlimited life, use of average power

for credit calculations, and useful life

adjustment, will also apply to engines

certified to the existing Tier 1 standards.

With regard to the generation of NOX

credits from engines certified to the

existing Tier 1 standards, EPA will

continue to allow manufacturers to earn

NOX credits, but not NMHC + NOX

credits. The NOX credits earned on

engines certified to the existing Tier 1

standards can be used to show

compliance with the current Tier 1 NOX

standard or the newly adopted Tier 2

NMHC + NOX standards. However, due

to concerns over the potential to delay

the Tier 3 standards with credits earned

from Tier 1 engines, the NOX credits

earned on engines certified to the

existing Tier 1 standards cannot be used

to show compliance with the newly

adopted Tier 3 NMHC + NOX standards.

With regard to the calculation of NOX

credits from Tier 1 engines that are to

be banked or traded and subsequently

used for Tier 2 NMHC + NOX

compliance, EPA is requiring that the

value of the NOX credits be discounted

unless the engine on which the credits

were earned is below the applicable Tier

1 standard by a specified amount. EPA

believes this requirement is appropriate

due to concerns that manufacturers

could potentially earn significant NOX

credits from their current Tier 1 engines

and delay compliance with the Tier 2

standards, and also to encourage the

pull-ahead of newer and cleaner

technologies. (Credits from Tier 1

engines that are to be used to show

compliance for other Tier 1 engines, are

not required to be discounted.) EPA is

adopting a trigger mechanism to

distinguish between Tier 1 engine

families which are eligible for no

adjustment and those families which

must be adjusted. For engine families

certified with a NOX FEL at or below 8.0

g/kW-hr (6.0 g/HP-hr), no discount will

be applied to any NOX credits. For

engine families certified at a NOX FEL

above the 8.0 g/kW-hr trigger in the Tier
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56977

1 time frame, the value of the NOX

credits will be discounted by 35

percent.

With regard to PM credit generation,

EPA is allowing early banking of PM

credits from Tier 1 engines as soon as

this final rule becomes effective. Under

the revised program, the number of PM

credits generated will be calculated

against the Tier 2 standards and may

only be used to show compliance once

the Tier 2 PM standards take effect.

Neither the trigger nor the credit

discounting concept described above for

Tier 1 NOX credits, will apply to PM

credits.

EPA requested comment on some

additional limitations regarding the use

of credits generated from Tier 1 engines.

EPA is not adopting a provision that

would apply a surcharge to NOX credits

used by a manufacturer to certify more

than 20 percent of its fleet. EPA is also

not adopting any limit on the number of

years a manufacturer may earn early PM

credits from Tier 1 engines.

2. Program for Engines Rated Under 37

kW

As noted earlier, EPA is adopting

standards for engines rated under 37

kW. These engines are currently

unregulated by EPA. Therefore, the

existing ABT program did not apply to

such engines. EPA is adopting

provisions to include both land-based

and marine engines rated under 37 kW

in the revised ABT program. A number

of issues have been addressed for these

engines, including credit generation,

credit life, credit calculation, trading

across power categories, credit exchange

between land-based and marine

applications, and a special multi-year

averaging and banking program. The

following section addresses each of

these issues.

With regard to credit generation, EPA

is making credits available for both

NMHC + NOX emissions and for PM

emissions as soon as the standards

become effective. Because many of the

engines below 19 kW use indirect

injection technology, which tends to

low-emitting, EPA is requiring that all

credits generated from engines rated

under 19 kW be calculated against the

Tier 2 standards, even prior to the Tier

2 time frame. This requirement applies

for both NMHC + NOX credits and PM

credits. For engines rated at or above 19

kW and less than 37 kW, where direct

injection engines are more common,

EPA is requiring that all engines

generate credits against the applicable

standards.

For Tier 1 engines below 37 kW, EPA

is adopting FEL upper limits of 16.0 g/

kW-hr (12.0 g/hp-hr) for NMHC + NOX

and 1.2 g/kW-hr (0.9 g/hp-hr) for PM.

These levels are based on existing

California ARB standards for nonroad

diesel engines rated under 19 kW. The

FEL upper limits for the Tier 2

standards are the Tier 1 standards.

With regard to credit life, EPA is

adopting the unlimited life provisions

for engines rated under 37 kW, as

described earlier for engines rated at or

above 37 kW, with one exception.

Because of concerns over the amount of

credits manufacturers could earn on

indirect injection engines under the

newly adopted Tier 1 standards and the

potential for significant delay in

implementation of the Tier 2 standards,

EPA is requiring that all credits

generated prior to the Tier 2 time frame

on engines rated under 19 kW expire at

the end of 2007.

With respect to credit generation and

usage calculations, EPA is requiring that

manufacturers use the sales-weighted

average power for engines rated under

37 kW, as described earlier for engines

rated at or above 37 kW. The inclusion

of useful life in the calculation of

credits, as described earlier, will also

apply to the revised ABT program for

engines rated under 37 kW.

With respect to trading across power

categories, EPA is adopting two

restrictions on such trading because of

concerns regarding excessive credit

generation by low-emitting indirect

injection engines. First, EPA will not

allow manufacturers to use credits

generated on engines rated under 19 kW

to demonstrate compliance for engines

rated at or above 19 kW. Second, EPA

is prohibiting manufacturers from

trading credits earned on indirect

injection engines rated at or above 19

kW to other manufacturers. (This

restriction applies to engines at or above

37 kW as well.) Under this second

restriction, a manufacturer would still

be allowed to use such credits for

averaging or banking purposes with

other engines rated at or above 19 kW

that the manufacturer produces itself.

As part of the 2001 feasibility review

described earlier, the Agency plans to

reassess the appropriateness of these

restrictions and modify them as

appropriate.

With respect to the exchange of

credits across applications, EPA is

adopting provisions that will prohibit

manufacturers from using credits

generated on land-based engines to

demonstrate compliance for marine

engines. EPA is concerned that

manufacturers making engines used in

both marine and land-based

applications could effectively trade out

of the marine portion of the program

giving them a competitive advantage

over small marinizers who only sell

marine engines. EPA will, however,

allow manufacturers to use credits

generated on marine engines to

demonstrate compliance for land-based

applications.

Finally, EPA is adopting a special

four-year averaging and banking

program for engines rated under 37 kW

due to the short lead time before the

Tier 1 standards begin to apply. The

program would apply separately to

engines rated under 19 kW and to

engines rated at or above 19 kW and less

than 37 kW. Under the special program,

manufacturers will be allowed to create

a negative balance of credits for the first

two years the Tier 1 standards apply.

This negative balance will have to be

eliminated by the end of the fourth year

after the Tier 1 standards become

applicable along with a ten percent

penalty for any negative balance of

credits carried over from one year to the

next. Under this special program,

manufacturers will not be allowed to

use emission credits obtained through

trading with other engine manufacturers

to offset their negative credit balances.

The manufacturer must offset their

negative balances within positive

credits generated from their own

engines.

E. Flexibility for Equipment

Manufacturers

In implementing the new standards,

EPA desires to avoid unnecessary

hardship for equipment manufacturers

(sometimes referred to as original

equipment manufacturers or OEMs),

who install diesel engines in their

products. There is concern that engine

suppliers may not always provide

adequate lead time for the equipment

redesigns needed to accommodate

engine design changes such as mounting

locations and heat rejection loads. For

some OEMs, even timely information on

the new engine designs may not be

sufficient because of the sheer volume

of redesign work needed to change

diverse product offerings with limited

engineering staffs.

In response to these concerns, the

Agency is including in this final rule an

OEM transition program to provide

equipment manufacturers with some

control of the transition process to new

standards. The design of this program is

based on extensive discussions with

involved parties prior to the proposal,

on recommendations made in the report

of the panel convened for this rule

under the Small Business Regulatory

Enforcement Fairness Act of 1996
56978 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

7 ‘‘Final Report of the SBREFA Small Business

Advocacy Review Panel for Control of Emissions of

Air Pollution from Nonroad Diesel Engines’’, May

23, 1997 (available in Air Docket A–96–40).

8Section 89.1003(a)(6) has been revised in the

final rule to clarify that certificates of conformity

will not be required for engines and equipment

manufactured in compliance with the flexibility

provisions of the rule. See ‘‘Revision of Prohibited

Acts Regulatory Text,’’ EPA memorandum from

Charles Moulis to Docket A–96–40, August 26,

1998.

(SBREFA),7 and on written comments

received on the proposal. It represents

an effort on the part of the Agency to

accommodate the flexibility needs of an

extremely diverse industry without

introducing competitive advantages,

and while maintaining the

environmental benefit sought in the

standard-setting program.

The OEM transition program consists

of four major elements, each directed at

a specific need. Although they involve

certain planning and recordkeeping

responsibilities if taken advantage of, all

of these elements are voluntary. An

OEM has the option to continue to do

business as under the current

regulations, subject to the prohibited

acts provisions of 40 CFR Part 89,

Subpart K.8 The elements of the

program are a percent-of-production

allowance, a small-volume allowance,

continuance of the Tier 1 allowance to

use up existing inventories of engines,

and availability of hardship relief. Each

of these is discussed in detail below.

One element of the proposed program

that is not being finalized is a provision

for OEMs to obtain and use ABT

program credits. The ABT provision is

not being finalized because it would

likely be little used and would greatly

complicate the ABT program. It should

be noted that OEMs may achieve a

similar benefit by working to have their

engine suppliers directly obtain and

retire ABT credits in order to produce

more previous-tier engines for the OEM.

Further explanation of this decision is

provided in the Summary and Analysis

of Comments for this final rule.

Another proposed program element

that is being approached differently

concerns an expanded exemption

allowance for farm and logging

equipment. EPA’s rationale for limiting

special treatment to farm and logging

equipment was not supported by

commenters, even those who were

likely to benefit from it. Commenters

identified a wide range of other

applications and special situations that

involved the same or comparable

considerations as those related to farm

and logging applications. As described

further in the Percent-of-Production

Allowance discussion below, EPA is

therefore allowing expanded flexibility

for all applications equally, not just for

farm and logging equipment.

1. Percent-of-Production Allowance

Each equipment manufacturer may

install engines not certified to new

emission standards in a limited

percentage of machines produced for

the U.S. market. This percentage applies

separately to each power category and is

expressed as a cumulative percentage of

80 percent over the 7 years beginning

when the Tier 2 standard first applies in

the category (Tier 1 for power categories

under 37 kW). No exemptions are

allowed after the seventh year. For

example, an OEM may exempt 40

percent of its 1999 production of

machines that use engines rated

between 19 and 37 kW, 30 percent of its

2000 production, and 10 percent of its

2001 production. If the same OEM were

to produce machines using engines

rated between 8 and 19 kW, a separate

cumulative percentage allowance of 80

percent would apply to these machines

during the seven years beginning in

2000.

The Agency recognizes that the 80

percent exemption allowance, were it to

be used to its maximum extent by all

OEMs, would bring about the

introduction of cleaner engines several

months later than would have occurred

if the new standards were to be fully

implemented on their effective dates.

However, the Agency notes too that the

allowance is truly that—an allowance to

be tapped as needed to assist OEMs in

dealing with implementation problems

that might arise. EPA is aware that many

engine designs being planned for the

new standards will fit the equipment

with little change. Also, the desire of

engine manufacturers to avoid

producing two engine designs that, from

an applications perspective, are

redundant, will prompt them to change

over to the new designs as quickly as

they can accommodate their customers’

needs. Although there is no way of

knowing at this time how many

exempted engines will be produced, the

Agency believes it will be substantially

less than the allowance. Moreover, the

OEM flexibility program has been

integrated with the standard-setting

process from the beginning of this

rulemaking, and as such it is a key

factor in enabling the initiation of new

standards according to the adopted

schedule.

Machines that use engines built before

the standard goes into effect need not be

included in the exemption count.

Engines that produce emissions at

higher levels than the standards, but for

which the engine manufacturer uses

ABT program credits to demonstrate

compliance, count as complying

engines. In power categories above 37

kW, the exempted engines must comply

with Tier 1 standards. In power

categories below 37 kW, the exempted

engines may be uncertified.

The Agency has expanded the

percent-of-production allowance from

the proposed level because numerous

commenters pointed out that there are

applications other than farm and logging

equipment for which the proposed

allowance is inadequate. The Agency

reviewed these comments and

concluded that some additional

flexibility is warranted to meet the

requirements of paragraph 213(a)(3) of

the Clean Air Act calling for the

‘‘greatest degree of emission reduction

achievable’’ given certain criteria,

including ‘‘the cost of applying such

technology within the time available to

manufacturers’’. The Agency is also

convinced by the comments and its own

review of equipment redesign

challenges that the need for this

flexibility is widespread across the

regulated power bands. For example,

many smaller engines must fit into very

compact equipment packages for which

cost considerations are paramount; farm

equipment predominates in the

medium-size power bands; and the

largest engines are typically used in

very low sales-volume equipment

models, for which aggressive redesign

schedules may be costly or impossible.

This approach is superior to

attempting to identify all applications

and situations deserving of special

treatment and either assigning

individual allowances to them or

granting exemptions on a request basis,

because it maintains the proposal’s

focus on giving OEMs long-range

control over how they use their assigned

pool of exemptions for their products

affected by each new set of standards,

rather than on dictating category-bycategory or model-by-model allowances.

It also serves the goal of avoiding

unnecessary complexity by avoiding the

need for numerous equipment category

definitions and exemption ‘‘account’’

calculations, a goal that was supported

by several commenters.

The choice of a cumulative percent

allowance of 80 percent is based on the

Agency’s best estimate of the degree of

flexibility needed to meet the

requirements of the Clean Air Act. EPA

believes the 80 percent allowance

responds to the need for flexibility

identified by commenters while

ensuring approximately the same level

of emission reductions originally

proposed. EPA has examined the impact

on environmental benefits of the

combination of changes being finalized
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56979

for this program, including this

expanded allowance for all equipment

and the decision to treat agricultural

equipment as part of this pool. Although

the actual impact will depend on the

degree to which the industry takes

advantage of the flexibility provisions,

the Agency has determined that the net

effect will be roughly equivalent to the

impact of the proposed program. The

Summary and Analysis of Comments

document and the Final RIA provide

additional information regarding this

decision and its net environmental

impact.

2. Small Volume Allowance

The percent-of-production approach

described above may provide little

benefit to small businesses focused on a

small number of equipment models.

Therefore EPA is allowing equipment

manufacturers to exceed the percent-ofproduction allowances described above

during the same years affected by the

allowance program for general

applications, provided they limit the

number of exempted engines used in

each power category to 700 total over

the 7 years, and to 200 in any one year.

In addition, manufacturers making use

of this provision must limit exempted

engines to a single engine family (or to

a single manufacturer for engines rated

under 37 kW) in each power category.

These restrictions are considered

necessary to maintain the intent of this

provision—helping small businesses

with limited product offerings—rather

than giving bigger exemption

allowances for larger OEMs who can

effectively use the percent-ofproduction provisions.

3. Existing Inventory Allowance and

Replacement Engines

The Tier 1 rule for engines rated at or

above 37 kW included a provision for

OEMs to continue to use uncertified

engines built prior to the effective date

of Tier 1 standards, until uncertified

engine inventories are depleted. It also

prohibited purposeful stockpiling of

uncertified engines. EPA is extending

this provision to the Tier 1-to-Tier 2 and

Tier 2-to-Tier 3 transitions, as well as to

the under 37 kW engines. The existing

provision that provides an exception to

the Tier 1 compliance regulations for

the sale of replacement engines is also

being extended to engines covered by

this action. In extending this provision,

the Agency is requiring that engines

built to replace certified engines be

identical in all material respects to an

engine of a previously certified

configuration that is of the same or later

model year as the engine being replaced.

The term ‘‘identical in all material

respects’’ allows for minor differences

that would not reasonably be expected

to affect emissions.

4. Hardship Relief Provision

EPA is providing a safety valve

provision whereby an OEM that does

not make its own engines could obtain

limited additional relief by providing

evidence that, despite its best efforts, it

cannot meet the implementation dates,

even with the OEM transition program

provisions outlined above. Such a

situation might occur if an engine

supplier without a major business

interest in the OEM were to change or

drop an engine model very late in the

implementation process. This concept

was put forward for consideration in

this rulemaking by the Small Business

Advocacy Review Panel convened

under SBREFA, as a means of

addressing small business concerns.

Comments received on the proposal,

however, have convinced the Agency

that these concerns are not limited to

small businesses.

Appeals for hardship relief must be

made in writing, must be submitted

before the earliest date of

noncompliance, must include evidence

that failure to comply was not the fault

of the OEM (such as a supply contract

broken by the engine supplier), and

must include evidence that serious

economic hardship to the company will

result if relief is not granted. The

Agency intends work with the applicant

to ensure that all other remedies

available under the flexibility

provisions are exhausted before granting

additional relief, and would limit the

period of relief to no more than one

year. Furthermore, applications for

hardship relief will only be accepted

during the first year after the effective

date of an applicable new emission

standard.

To avoid the creation of a selffulfilling prophecy, by which the very

existence of this provision prompts

engine manufacturers to delay engine

developments, the Agency wishes to

make clear that it expects this provision

to be rarely used. Each granting of relief

would be treated as a separate

agreement with no prior guarantee of

success, and with the inclusion of

measures, agreed to in writing by the

OEM, for recovering the lost

environmental benefit.

5. Enforcement and Recordkeeping

Requirements

Engine manufacturers will be allowed

to continue to build and sell the engines

needed to meet the market demand

created by the OEM transition program,

provided they receive written assurance

from the engine purchasers that such

engines are being procured for this

purpose. Engine manufacturers who

participate in this program will be

required to annually provide

information on the number of such

engines produced and on who they are

provided to, in order to help EPA

prevent abuse of the program.

OEMs choosing to take advantage of

the allowances must: (1) keep records of

the production of all pieces of

equipment excepted under the

allowance provisions for at least two

full years after the final year in which

allowances are available for each power

category; (2) include in such records the

serial and model numbers and dates of

production of equipment and installed

engines, rated power of each engine,

and the calculations used to verify that

the allowances have not been exceeded

in each power category; and (3) make

these records available to the Agency

upon request. The Agency intends to

conduct only limited audits of these

records, and expects that scrutiny by the

OEMs of their competitors’ products

will help identify potential candidates

for audits.

Secondary manufacturers who modify

or relabel and resell new equipment

already introduced into commerce

would be subject to the regulations in

the same way as independent dealers

and distributors. These regulations

primarily concern tampering. EPA’s

desire to limit the number of machines

using noncomplying engines is therefore

satisfied by regulation of the original

equipment manufacturers who install

the engine into the machine, such that

the secondary manufacturers do not

need exemption allowances. They may

sell as many machines with

noncomplying engines as they are

legally able to obtain.

All entities that are under the control

of a common entity, and that meet the

definition of a nonroad vehicle or

nonroad equipment manufacturer, must

be considered together for the purposes

of applying exemption allowances. This

provides certain benefits for the purpose

of pooling exemptions but also

precludes the abuse of the small volume

allowances that would exist if

companies could treat each operating

unit as a separate OEM.

EPA recognizes that the OEM

transition program may involve a

certain amount of complexity and

administrative burden that was not

present for OEMs under the Tier 1 rule,

which limited the compliance options

for OEMs. However, this program is

entirely voluntary and manufacturers

wishing to implement the new

standards in the same manner as for the
56980 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

9U.S. Environmental Protection Agency, Office of

Mobile Sources, NEVES, Appendix I, Chapter 4,

November 1991 (available in Air Docket A–96–40).

Tier 1 regulations are free to do so. The

Agency intends to develop guidance to

assist OEMs in taking advantage of these

provisions, but also intends to fully

enforce the regulations in order to

ensure a fair implementation process

that achieves the environmental benefit

sought in setting new standards.

F. Flexibility for Post-Manufacture

Marinizers

Post-manufacture marinizers (PMMs)

produce marine engines by modifying

engines purchased from other

manufacturers. They are therefore

subject to both the engine

manufacturer’s concern about certifying

engines to the standards and the OEM’s

concern about timely delivery of

redesigned engines from their engine

suppliers.

EPA recognizes that the potential

unavailability of certified base engines

may make it difficult for PMMs to

comply with the proposed emission

control program, since they may not be

able to obtain base engines in time to

adjust their marinization process,

especially considering that most of the

marine engines affected by this rule are

subject to standards beginning in 1999.

Based on these concerns, EPA has

determined that the proposed emission

standards would not be feasible for

PMMs who produce marine engines

under 37 kW without some flexibility

provisions beyond those available in the

ABT program. As a result EPA is

finalizing two additional flexibility

provisions for PMMs.

First, the OEM flexibility provisions

discussed above are being extended to

PMMs, as proposed. Second, provided

they inform EPA in writing before the

date Tier 1 standards would take effect,

PMMs may elect to delay the effective

dates applicable to marine engines

under 37 kW for one year, instead of

using the OEM flexibility provisions.

PMMs may not take advantage of both

the delayed effective date provision and

the OEM flexibility provisions.

Although it provides a substantial

boost in certainty to PMMs, the optional

1-year delay provision will have a very

small environmental impact. This is

because: (1) the marine engines under

37 kW produced by PMMs are a very

small part of the total nonroad diesel

engine production, (2) these engines

produce relatively low emissions due to

their small size and low usage

characteristics, and (3) the total number

of engines potentially exempted under

this flexibility provision is not much

greater than that possible under the

exemption allowance provisions.

G. Control of Crankcase Emissions

Crankcase gases are those exhaust

gases that discharge (blowby) into the

crankcase via the clearance between the

piston and the cylinder wall. On most

engines (those engines with open

crankcases), these gases eventually

escape from the crankcase into the

atmosphere. Some manufacturers

produce engines that route crankcase

vapors to the air intake system of the

equipment; such a design is called a

closed crankcase. This method, also

called positive crankcase ventilation,

recirculates blowby gases through a

valve back to the intake manifold to be

burned in the combustion chamber.9

Since 1985, closed crankcases have

been required in naturally aspirated

(non-turbocharged) highway diesel

engines (45 FR 4136, January 21, 1980).

Turbocharged engines have not been

required to have crankcase emission

controls due to concerns related to

problems associated with the durability

and effectiveness of turbocharger and

aftercooler components which can be

affected by recycling gases containing

particulate matter and corrosive gases.

EPA is extending the closed crankcase

requirement to nonroad engines,

including the exemption for

turbocharged diesel engines. Many

naturally aspirated nonroad engines are

already equipped with this technology;

for those nonroad engine models still

manufactured with open crankcases,

EPA expects that closed-crankcase

technology will be readily transferable.

EPA has included the cost of closing

crankcases in the analysis of the costs of

complying with the new standards. EPA

had originally proposed to apply the

closed crankcase requirement to some

Tier 1 engines, but has now decided to

apply it only Tier 2 and later naturally

aspirated engines because of lead-time

concerns. This delay will not have a

major environmental impact because it

is short, directed at a small segment of

the engine market, and confined to a

minor emission source relative to

exhaust emissions.

EPA will also allow manufacturers to

comply with this requirement by

routing the crankcase emissions into the

exhaust. Manufacturers choosing this

option would effectively be required to

reduce their engine-out exhaust

emissions further than other

manufacturers that choose to route the

crankcase emissions into the engine

intake. It is important to note that this

optional approach will require that the

engine (and equipment) be designed so

that the routing would occur under all

in-use conditions. Manufacturers using

this approach will be required to modify

their deterioration factors to account for

increases over time in crankcase

emissions. EPA will also consider using

this approach in the future for

controlling crankcase emissions from

turbocharged engines, which are

currently uncontrolled. The advantage

of this approach is that allows

manufacturers the flexibility to either

route crankcase emissions into the

engine intake, thereby combusting the

crankcase emissions of hydrocarbons

and CO, or to route the emissions into

the exhaust (where they would be

measured as part of the exhaust

emissions) and to reduce the total

exhaust emissions using other means.

H. Control of Smoke

1. Standards and Procedures

In 1994, EPA finalized smoke

standards for nonroad diesel engines

rated at or above 37 kW. The specified

measurement method and calculations

are from 40 CFR Part 86, Subpart I,

which was developed for highway

engines. EPA is making no major

changes to the smoke emission

standards and procedures currently in

place.

EPA is extending the smoke standards

to diesel engines rated under 37 kW,

bringing these engines under the same

regulatory framework as the larger

engines. While these new standards may

lead to lower smoke levels from some

engines, the principal intent of setting

standards is to prevent increased levels

of smoke as engines are redesigned to

comply with Tier 2 and Tier 3 standards

for gaseous and particulate emissions.

The same numerical standards apply to

the small engines. With minor

exceptions, the same procedure,

equipment, and calculation methods are

also specified for these engines.

In applying the smoke standards and

procedures to engines rated under 37

kW, EPA has chosen to exempt onecylinder engines. EPA believes that

operation and testing of these engines is

unique in ways that would need to be

addressed before applying smoke

standards. For example, one-cylinder

engines operating on the specified test

procedure produce puffs of smoke that

may make the smoke measurement

erratic. EPA is therefore postponing the

regulation of smoke from these onecylinder engines until a later

rulemaking. The Agency believes the air

quality impact of this postponement

will be minimal because the large

majority of one-cylinder diesel engines

are used in generator sets and other
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56981

steady-state applications, which rarely

experience acceleration modes—the

principal focus of smoke standards. In a

similar manner, because two-cylinder

engines operating on the specified test

procedure may also produce puffs of

smoke that would make the smoke

measurement erratic, though to a lesser

degree than single-cylinder engines,

EPA will permit manufacturers the

option of testing two-cylinder engines

with a preconditioned muffler of the

type used in the field. Such an engine

configuration is the same as that found

in use, and thus will ensure meaningful

control of in-use smoke, even though

instantaneous smoke emissions may be

flattened out somewhat, resulting in

potentially reduced levels of measured

smoke. Engines with more than two

cylinders will continue to be tested

without a muffler, which is a ‘‘worst

case’’ condition.

EPA is also slightly modifying the

exhaust pipe diameter specifications

found in 40 CFR Part 86, Subpart I. The

previous specifications called for a 2

inch (5 centimeters (cm)) inside

diameter exhaust pipe for testing any

engine rated under 101 horsepower (hp)

maximum (75 kW), and a 5 inch (13 cm)

inside diameter exhaust pipe for the

testing any engine with a rated power of

301 hp (225 kW) or greater. In this

action, the Agency is specifying that

engines rated between 50 and 100 hp

(37 and 75 kW) be tested with a 2 inch

(5 cm) inside diameter exhaust pipe,

while engines rated under 50 hp (37

kW) should be tested with an exhaust

pipe of 1.5 inches (3.8 cm). EPA is also

specifying that all engines rated over

500 hp (373 kW) should be tested with

an exhaust pipe of 6 inches (15.2 cm).

EPA is not establishing smoke

requirements for propulsion marine

diesel engines rated under 37 kW. EPA

has concluded that the existing smoke

test procedures are not appropriate for

small propulsion marine engines. The

Agency believes that the small

environmental risks associated with

smoke emissions from such engines do

not justify the creation of special smoke

test procedures for them at this time.

EPA expects to reconsider this issue in

the future at the same time that it

reconsiders other smoke issues. Finally,

EPA is dropping smoke requirements for

constant speed engines until a smoke

test becomes available for these engines,

because the current smoke test cannot

effectively be performed on them. The

Agency believes the air quality impact

will be minimal because these engines

do not often experience acceleration

modes, which are the principal focus of

smoke standards.

2. Future Reconsideration of Smoke

Issues

An International Standards

Organization committee (ISO TC70/

SC8/WG1) has been developing a smoke

test procedure specifically for nonroad

engines. The EPA and regulated

industry recognize the value of

harmonized test procedures and

standards limits. However, this ISO

procedure has not been finalized and

thus is not included in this rulemaking.

EPA has analyzed the draft ISO

procedure (8178–9) and concluded that

most of its elements would be

appropriate for adoption. Thus, the

Agency expects that it will adopt the

ISO smoke measurement procedure after

it is finalized. At that time EPA may

also reconsider the issues related to the

use of mufflers, single-cylinder and twocylinder engines, constant speed

engines, marine engines and standard

exhaust pipe diameters. It is important

to note that the ISO 8178–9 smoke

emissions test procedure is very

different from the procedure specified

in Subpart I of Part 86. As a

consequence , if EPA adopts the ISO

8178–9 procedure, then it will also need

to revise the numerical limit values to

be associated with the ISO procedure.

EPA believes the appropriate numerical

standard that should be associated with

ISO 8178–9 peak measurements is likely

to be within the range of 20 to 30

percent opacity. It is important to note,

however, that this is only a preliminary

estimate.

EPA also expects to give future

consideration to the need for an in-use

smoke test. Some state governments

have expressed a desire for a smoke

regulatory program that would enable

them to test in-use nonroad engines in

a manner that would permit action

against gross emitters of smoke. The

main elements of such a program would

be a certification smoke requirement for

new engines, EPA guidance for state inuse smoke control programs (including

an in-use smoke test procedure and

accompanying limit values), and a

means by which the data from the two

programs could be related. The current

smoke test procedure from Part 86,

Subpart I, does not provide data

comparable to the most practical in-use

smoke test procedure (a snap

acceleration with measured opacity).

Based on the current draft ISO 8178–9

certification smoke test procedure, EPA

believes the future ISO test will provide

the desired linkage.

I. Voluntary Low-Emitting Engine

Program

Officials representing certain cities,

states, or regions in the U.S. have

expressed interest in developing

incentive programs to encourage the use

of engines that go beyond federal

emission standards. EPA also would

like to encourage manufacturers to

initiate demonstration projects to prove

out these technologies in areas where

there is a particular need for superior

emission controls. EPA is therefore

finalizing a set of voluntary standards

that may be used to earn a designation

as a ‘‘Blue Sky Series’’ low-emitting

engine. The program, if successful, will

lead to the introduction and more

widespread use of these low-emission

technologies. Possible incentives to

encourage production of these engines

are described below.

Central to the purpose of the

voluntary standards is the need to

demonstrate superior control of

particulate emissions. Because of the

sensitivity of particulate emissions to

test cycles, as described in Section III,

testing on a transient cycle is an

important element of the program for

Blue Sky Series engines. EPA has begun

work toward developing transient test

cycles for nonroad equipment, but there

is not yet any established or proven

nonroad transient cycle. The highway

test cycle, while not developed for

nonroad engine operation, would result

in a significant degree of control for

nonroad equipment. EPA has therefore

specified the highway transient test

cycle to evaluate emission levels

relative to the voluntary standards. If

EPA adopts a transient test for certifying

nonroad engines in the future, the

Agency will accordingly re-evaluate the

test cycle and standards for Blue Sky

Series engines.

To best align with future emission

standards, Tier 3 emission levels, where

applicable, were chosen as the best level

for defining Blue Sky Series engines.

This represents a reduction of

approximately 40 percent beyond the

Tier 2 NMHC + NOX levels. For PM

emissions and for engines with no Tier

3 standards, a calculated level

corresponding to a 40 percent reduction

beyond Tier 2 levels will be used to

qualify as a Blue Sky Series engine (see

Table 3).

TABLE 3.—VOLUNTARY EMISSION

STANDARDS IN G/KW-HR (G/HP-HR)

Rated brake

power (kW) NMHC+NOX PM

kW<8 ................... 4.6 0.48

(3.4) (0.36)
56982 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

10 ‘‘Justification for Amendments to 40 CFR Part

89,’’ EPA memorandum from Greg Orehowsky to

Docket A–96–40, August 21, 1997.

TABLE 3.—VOLUNTARY EMISSION

STANDARDS IN G/KW-HR (G/HPHR)—Continued

Rated brake

power (kW) NMHC+NOX PM

8≤kW<19 ............. 4.5 0.48

(3.4) (0.36)

19≤kW<37 ........... 4.5 0.36

(3.4) (0.27)

37≤kW<75 ........... 4.7 0.24

(3.5) (0.18)

75≤kW<130 ......... 4.0 0.18

(3.0) (0.13)

130≤kW≤560 ....... 4.0 0.12

(3.0) (0.09)

kW>560 ............... 3.8 0.12

(2.8) (0.09)

Blue Sky Series engines need to meet

all the requirements that would

otherwise be applicable to Tier 2

engines. This would include allowable

maintenance, warranty, useful life,

rebuild, and deterioration factor

provisions. Manufacturers must

demonstrate compliance with the CO

standard by comparing the emission

levels generated on the highway test

cycle with the numerical value of the

CO standard for the applicable tier of

nonroad engines for that model year.

Manufacturers must also demonstrate

compliance with applicable smoke

standards.

Repeating the certification process to

develop and submit test data to make a

highway engine available for nonroad

use adds a significant hurdle to engines

expected to sell in low volumes for

nonroad applications. Under the Blue

Sky Series engine program,

manufacturers with highway-certified

engines may waive the testing

requirements for obtaining nonroad

certification. This includes the need to

comply with the provisions related to

the durability of emission controls. EPA,

however, needs to ensure that engine

designs are not tailored to the transient

cycle with much higher emissions on a

steady-state cycle. To accommodate

this, EPA retains the ability to conduct

in-use testing to verify that engines are

operating in steady-state modes with

substantially the same level of emission

control. EPA will therefore require that

NOX and PM emissions be no more than

20 percent higher on the appropriate

nonroad steady-state test cycle

compared with the highway test cycle.

This is intended to provide relief for

development testing needed to protect

against in-use liability, while preventing

any active strategies designed

specifically for the transient test cycle at

the expense of controlling emissions

during steady-state operation. For

evaluation of the performance of one of

these engines in steady-state operation

at any point in an engine’s useful life,

the Agency intends to conduct paired

data generated on both the appropriate

steady-state test cycle and the highway

transient test cycle.

The Blue Sky Series program begins

immediately upon promulgation and

continues through the 2004 model year.

EPA will evaluate the program to

determine if it should be continued for

2005 and later engines, and if so, what

changes are needed to reflect the

transition to Tier 3 emission standards.

This evaluation will be considered as

part of the 2001 feasibility review. The

experience gained with these engines

and the Tier 3 resolution of certification

test cycles and PM standards will factor

into this evaluation.

The Agency sees substantial potential

for users and state and local

governments to establish these incentive

programs. For example, the increasing

public concern about the effects of

diesel engine emissions on health raises

the possibility that some construction

companies will purchase Blue Sky

Series engines to protect its workers or

the public from localized emissions,

especially if benefits can also be gained

in employee or public relations, such as

with highly visible projects in polluted

city centers. Similarly, a mining

company could select these lowemitting engines for underground

applications to minimize miners’

exposure to exhaust pollutants. A state

or local government may be able to add

incentives for companies committing to

rely on Blue Sky Series engines in

contract bidding on publicly funded

construction projects in nonattainment

areas. Some farmers may be willing to

pay more for equipment with the

cleaner engines to lower their field

exposure to engine exhaust pollutants.

In some of these applications,

alternative fuels may be readily

available, possibly even providing a cost

savings compared to diesel fuel.

The Agency is concerned that

incentive programs not lead to a net

detriment to the environment through

the double-counting of benefits. Also,

manufacturers have indicated that the

potential to participate in an averaging,

banking, and trading program would not

be an important factor leading to the

development of Blue Sky Series engines.

EPA has therefore concluded that

manufacturers choosing to sell an

engine with the Blue Sky Series

designation will not generate averaging,

banking, and trading credits for

demonstrating compliance with EPA

programs. Other groups are then free to

design credit programs without concern

for any double-counting or other

unintended effect of overlapping

programs.

J. Technical Amendments

This final rule contains technical

amendments to the certification and

emission test procedures previously

adopted for nonroad diesel engines (40

CFR Part 89). The most significant

changes are highlighted here; a

complete description of the technical

amendments is detailed in a

memorandum to the docket.10

EPA is adding definitions of rated

speed and intermediate speed. Rated

speed is defined as the maximum full

load speed for governed engines and

speed of maximum horsepower for

ungoverned engines. The definition for

intermediate speed was based on peak

torque speed and limits intermediate

speed to 60 to 75 percent of rated speed.

The maximum full load speed is the

highest speed with an advertised power

greater than zero. EPA is linking full

load governed speed to advertisements

at this time since no adequate language

has been developed that mathematically

defines full load governed speed as a

point on the torque or power curve.

Power curves in manufacturer’s

advertisements typically end at the

governed speed. EPA believes that

manufacturers will continue to advertise

the full range of power of its engine.

Manufacturers would therefore not set

rated speed at less than full load

governed speed. It is unlikely that

manufacturers will advertise powers

beyond the full load governed speed,

since a manufacturer cannot guarantee

power beyond this point. EPA is

applying the new definitions to Tier 1,

as well as Tier 2 and 3 programs.

However, to avoid unnecessarily

burdensome recertification, EPA is not

requiring manufacturers to use the new

definitions for Tier 1 engines certified

prior to January 1, 1999. Engine families

that are certified prior to January 1, 1999

may carry over certification under the

old definitions into subsequent Tier 1

model years. All Tier 2 engines must

meet the definitions for rated and

intermediate speeds.

Engines are grouped into families that

are expected to have similar emissions

characteristics throughout their useful

lives. EPA’s regulations list a number of

characteristics which distinguish engine

families. EPA is concerned that the

phasing in of the new standards by

power categories, which is intended as

an aid to implementation, may actually

increase manufacturers’ costs without a
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56983

11The current control program for PM and all

other pollutants includes an emissions standard

and related emissions test procedure. For control of

PM, as well as other regulated pollutants, an engine

may not be equipped with a defeat device, defined

as a device, system, or element of design which

senses operation outside normal emission test

conditions and reduces emission control

effectiveness, including any auxiliary emission

control device (AECD) that reduces the

effectiveness of the emission control system under

conditions which may reasonably be expected to be

encountered in normal operation and use unless the

conditions are included in the test procedure (40

CFR 89.107). Manufacturers must provide a detailed

description of all auxiliary emissions control

devices when they apply for certification (40 CFR

89.115(d)(2)). The defeat device prohibition is

designed to ensure that proper control of emissionrelated engine parameters is maintained during

engine operation that is not substantially

represented in the certification test cycle. Electronic

controls may be considered an AECD, and subject

to the defeat device provision.

significant emissions benefit in the

situation where an engine family

marginally straddles a power category

cutpoint, and therefore must be split.

This is especially of concern for Tier 1

engines below 37 kW because of the

short lead time provided for the

certification of these engines, and

because this group is comprised of 3

rather narrow power bands. Therefore,

EPA is allowing the creation of Tier 1

engine families that straddle the power

band cutpoints at 8, 19, and 37 kW,

subject to EPA approval. To avoid

potential abuse of this provision by a

manufacturer attempting to take

advantage of the least stringent emission

standards applicable to the engines in

the family, such grouping will be

allowed only if: (1) most of the engine

family’s sales in each year are from

engines with rated power in the power

band with which the engine family is

certified, and (2) all power ratings in the

engine family that are not within the

power band with which the engine

family is certified are within 10 percent

of one of the two power levels that

define this power band. The limitations

would not apply if the emission

standards for the power band in which

the engine family is being certified are

at least as stringent as those of the

power band that the included engines

would otherwise be in. EPA may extend

this provision beyond Tier 1 in a future

action, but first wishes to examine its

effectiveness over time in providing

sufficient flexibility without leading to

abuse.

The amendments change the criteria

for test engine selection. Test engine

selection is no longer based on

maximum fuel per stroke at maximum

power, but is now based primarily on

the highest fuel per stroke at peak

torque and secondarily on the highest

fuel per stroke at rated speed.

The calibration requirements for the

gaseous emission measurement

analyzers are modified in various ways.

The requirements for measurement

accuracy below fifteen percent of full

scale are revised to include a specific

number of gas concentrations at the low

end of the calibration curve. Also,

calibration requirements are simplified

to allow laboratories to calibrate only

one analyzer range and still ensure

accurate measurements. Additional

changes to calibration requirements for

other equipment are described in the

Summary and Analysis of Comments

document.

Other modifications relate to the test

sequence and calculation of emission

results. A ‘‘mode’’ is defined and the

procedure for dealing with void modes

is included. The equations used to

calculate emissions during raw

sampling are corrected. The

amendments also correct errors in the

currently listed equations and include

new equations that were mistakenly

omitted.

III. 2001 Review and Ensuring

Emissions Control In Use

A. 2001 Review

Over the next several years, EPA will

be actively engaged in programs to

evaluate technology developments and

progress toward meeting the new

standards. This process will involve

engine research programs, coordination

with the involved industries, and active

interaction with other stakeholders.

This effort will culminate in a special

review, to be concluded in 2001, to

reassess the appropriateness of the Tier

2 standards for engines rated under 37

kW and the Tier 3 standards for engines

rated between 37 and 560 kW. The

review will also include proposal and

adoption of appropriate Tier 3 standards

for PM. In addition to reviewing

whether or not the new standards are

technologically feasible and otherwise

appropriate under the Clean Air Act, the

Agency will examine the need for

equipment redesign due to the new

standards and will take appropriate

action if significant adverse impacts on

the nonroad equipment industry are

identified.

Before making a final decision in this

review, EPA intends to issue a proposal

and offer an opportunity for public

comment on whether the standards

under review are technologically

feasible for implementation according to

the proposed schedule, and are

otherwise appropriate under the Act.

Any changes to certification test

procedures or Tier 3 PM standards

would also be proposed in that

document. Following the close of the

comment period, EPA intends to issue

a final Agency decision under section

307 of the Act.

If, based on the information collected

for the 2001 feasibility review, EPA

finds the emission standards are not

appropriate under the Act, EPA will

propose changes to the program,

possibly including adjustments to the

levels of the standards. Consistent with

the Statement of Principles, the adjusted

standards may be more or less stringent

than those already established or the

schedule could be adjusted. For

example, progress to date in the design

of low-emitting heavy-duty highway

diesel engines has been encouraging,

and EPA believes that this progress may

benefit designs of large nonroad diesel

engines as well, due to the many

similarities in these classes of engines.

Therefore, the Agency believes that by

2001 it may well be appropriate to

consider moving the standards for equal

to or greater than 300 horsepower

engines forward in time, and so expects

to consider this issue in the 2001

feasibility review. Any change to the

specified certification test procedure,

including the possible adoption of a

transient test cycle, will be factored into

the evaluation of the appropriateness of

the numerical standards. The standards

finalized in this document will stay in

effect unless revised by subsequent

rulemaking procedure.

The review may include other topics

as well. Some topics identified in this

rulemaking that the Agency plans to

review are test fuel sulfur specifications,

ABT provisions, Blue Sky Series engine

standards, established technologies for

deterioration factor determinations, and

engine family designations.

B. Ensuring Emissions Control In Use

Key among EPA activities directed

toward completing the 2001 feasibility

review are those related to adoption of

a more effective PM control program for

nonroad diesel engines.11 The

establishment of a more effective

program will be informed not just by

progress in engine designs but also by

studies currently being performed by

the Agency and by others on the

relationship between diesel PM

emissions and various health problems.

Establishing an appropriate test cycle

is critical to the success of a more

effective PM control program. Testing

an engine for emissions consists of

exercising it over a duty cycle of speeds

and loads using an engine

dynamometer. The test cycle used to

measure emissions should represent

operation typical of actual operation in

the field. A test procedure that does not
56984 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

12 ‘‘Final Regulatory Impact Analysis: Control of

Emissions of Air Pollution from Highway HeavyDuty Engines,’’ U.S. EPA, September 16, 1997

(Docket A–95–27).

adequately represent in-use operation

might not lead to, on average, the level

of control in use set by the emission

standards. A test procedure that does

reflect real world operating conditions

will drive engine designers to develop

technologies that achieve in-use control

corresponding to the emission

standards. EPA has addressed such

concerns in the past; for example, the

highway heavy-duty engine test cycles

were changed to address transient

operation (45 FR 4136, January 21,

1980) and, more recently, EPA has

revised the test cycle for light-duty

vehicles (61 FR 54852, October 22,

1996).

EPA has concerns that the current test

cycle does not adequately reflect

transient operation, and, therefore, will

not lead to the level of average in-use

emission control reflected by the PM

standard. PM emissions, like NOX

emissions, depend somewhat on engine

load characteristics that can be modeled

in the steady-state test, but are most

sensitive to the degree of transient

engine operation. Most nonroad engines

are used in applications that are largely

transient in nature. Even equipment

such as pumps and generators, that

operate mostly at constant engine

speeds, may depart from steady-state

operation due to variation in engine

loads over time. EPA believes that the

Tier 2 PM emission standards, with the

current steady-state test, will produce

some degree of in-use emissions control

from nonroad engines, especially from

engines that typically operate at a

constant speed. The level of control

from the many nonroad engines that

frequently operate in more transient

modes, however, is less certain,

especially in an engine design era

involving stringent PM and NOX

standards and electronic engine

controls, as is likely to be the case in

Tier 3. Therefore, EPA is moving

forward with developing a transient

component to the nonroad engine test

cycle to control the transient element of

PM emissions generation; this

component would supplement the

steady-state test.

EPA has an additional concern that

goes beyond choosing an appropriate

test cycle. EPA has observed at times

that manufacturers may tailor the design

of their engines to narrowly meet the

requirements of the emission test. This

concern applies not just to PM

emissions but to other pollutants such

as NOX and hydrocarbons, as well. The

current nonroad test cycle, with a

limited combination of steady-state

speeds and loads, does not include

some of the operating modes that are

commonly experienced in the field. In

fact, any single prescribed test cycle,

although advantageous for test result

repeatability and predictability, may not

ensure that engine manufacturers design

robust emission controls that achieve

good control in use. This concern is

increased with the advent of electronic

controls, which greatly increases the

level of sophistication available to

manufacturers in controlling emissions

levels over the full range of engine

operation. To address this and other

concerns, in the Tier 1 rulemaking EPA

adopted the prohibition on defeat

devices (see footnote 11), which the

Agency intends to implement for all

tiers of standards. EPA may also

supplement existing regulations through

changes in its nonroad diesel engine

program to better control in-use

emissions, in a manner that will ensure

effective in-use emissions control

without unduly increasing

manufacturers’ testing burden and

certification uncertainty.

Although the Agency intends to

establish its Tier 3 PM standards and a

transient test cycle in the context of the

2001 feasibility review, other activities

such as its investigation of in-use

operation emissions, including possible

regulatory action, may proceed on an

earlier schedule. The concerns

described above about in-use emissions

apply to the pre-Tier 3 as well as the

Tier 3 standards, and the Agency

believes that prompt action in this area

is appropriate. The two efforts discussed

above, development of a transient test

cycle for PM control and adoption of

supplemental measures to better control

in-use emissions, have the same overall

focus—achieving effective control of

emissions in the real world. As a result,

the need for a separate transient test

cycle may be eliminated if the measures

EPA adopts to better control in-use

emissions prove adequate for control of

PM in use.

IV. Technological Feasibility

The emission standards finalized in

this document apply to a broad range of

diesel engines used in a wide variety of

nonroad applications. Section 213 (a)(3)

of the Clean Air Act calls for EPA to

establish standards that provide for the

‘‘greatest degree of emission reduction

achievable through the application of

technology which the Administrator

determines will be available for the

engines or vehicles to which such

standards apply, giving appropriate

consideration to the cost of applying

such technology within the period of

time available to manufacturers and to

noise, energy, and safety factors

associated with the application of such

technology.’’ EPA has concluded, as

described in the Final RIA, that the new

standards will have no significant

negative effect on noise, energy, or

safety.

Because the emission standards for

nonroad diesel engines are based largely

on the standards for highway engines

and rely on the evaluation of

technologies for complying with the

standards for highway engines, the

discussion of technological feasibility in

the highway engine rulemaking is

central to supporting the feasibility of

the new standards for nonroad engines.

This analysis of diesel engine

technologies is contained in Chapter 4

of the Final RIA for the highway

rulemaking. 12 This analysis is

considered and applied to nonroad

engines in Chapter 3 of the Final RIA for

this rulemaking.

The level and implementation timing

of the standards finalized in this

document are the most challenging that

can be justified. Engine manufacturers

will need to use the available lead time

to develop the necessary emission

control technologies, including transfer

of technology from highway engines.

This development effort will require not

only achieving the targeted emission

levels, but also ensuring that each

engine will meet all performance and

emission requirements over its useful

life. The emission standards clearly

represent major reductions compared

with current emission levels.

Emission control technology for diesel

engines is in a period of rapid

development in response to the range of

emission standards anticipated for the

years ahead. This effort will need to

continue to meet the requirements of

this final rule. However, the emission

targets are set in the framework of a long

lead time with various flexibility

provisions, which provide

manufacturers the time they will need

to apply emission control technology

developments to nonroad engines. Also,

the experience gained in response to

EPA’s emission standards for highway

engines will be invaluable in meeting

the comparable requirements for

nonroad engines. Because the

technology development for highway

engines will to a large extent constitute

basic research of diesel engine

combustion, this effort will also benefit

manufacturers that produce no highway

engines.

On the basis of information currently

available, EPA believes that it is feasible

for nonroad diesel engine manufacturers
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56985

to meet the standards finalized in this

document within the specified time

frame, using combinations of the

technological approaches discussed in

the Final RIA. In addition, EPA believes

that the flexibilities incorporated into

this final rule will permit nonroad

vehicle and equipment manufacturers to

respond to engine changes in an orderly

way. For both industries, EPA expects

that meeting these requirements will

pose a significant challenge. As

described above, EPA plans to assess, as

part of the 2001 feasibility review, the

appropriateness of the Tier 3 standards,

and the Tier 2 standards for engines

rated under 37 kW.

V. Projected Impacts

A. Environmental Impacts

To assess the environmental impact of

the new emission standards, EPA has

used a draft version of the new

NONROAD model, developed by EPA

for predicting emissions from nonroad

equipment. Chapter 5 of the Final RIA

contains a thorough discussion of the

methodology used to project the

emission inventories and emission

reductions from nonroad equipment

covered by the new standards. The

reader is directed to the RIA for more

information on the environmental

impact of this final rule.

The amount of growth experienced in

the nonroad market will have a

significant impact on the emission

inventories and emission reductions

expected from the new emission

standards. For this environmental

impact analysis, EPA has examined the

impact of the emission standards under

two different growth scenarios. (The

growth rates used in the nonroad

modeling are compounded growth

rates.) The first scenario uses growth

rates based on information developed by

the Bureau of Economic Analysis (BEA).

The BEA growth rates, which are

prospective, are based on a variety of

economic indicators and vary by

nonroad segment (i.e., agriculture,

construction, etc.). The BEA growth

rates typically range from one to two

percent per year. Based on trends in

historical nonroad equipment sales,

trends in nonroad fuel usage, and the

continuing strong performance of the

U.S. economy, EPA believes that the

BEA growth rates may underestimate

the future growth of the nonroad

market. Therefore, EPA has also

modeled the impact of the new

standards using information on nonroad

equipment population from a database

developed by Power Systems Research

(PSR). The growth rates based on a

retrospective analysis of 1989 to 1996

PSR equipment population data result

in typically higher growth rates

compared to the BEA information. EPA

believes the results from the two growth

scenarios serve to bracket the expected

environmental impact of the standards.

The following discussion of

environmental impacts presents the

results from both the BEA growth

scenario and the PSR growth scenario.

EPA modeled the impact of the new

standards for NOX, NMHC, and PM

emissions. The modeling inputs

conservatively assume that equipment

manufacturers take full advantage of the

flexibility provisions described earlier.

EPA did not model the impacts of

standards on CO because CO emissions

from nonroad diesel equipment are a

very small portion of the overall CO

inventory and the standards are not

expected to have a significant impact on

CO levels.

Because of the uncertainties about the

degree to which the steady-state test

procedure will control PM emissions in

use, especially from the many nonroad

engines that frequently operate in

transient modes, EPA cannot be certain

that any assessment of expected PM

emission reductions made at this time

will be completely accurate.

Nevertheless, EPA has attempted to

make a reasonable estimate of these

reductions by assuming that engines

will certify at the level of the new

emission standards, and applying EPA’s

best current estimates of adjustment

factors for in-use PM emission levels, as

reflected in the NONROAD model.

These factors and other assumptions in

the model are still under review, and

will continue to be improved in the

future as new information becomes

available. The baseline levels used in

this analysis are consistent with the

position taken in the Tier 1 rule that no

PM benefits are claimed from the Tier

1 PM standard. EPA believes that this

approach provides a reasonable estimate

of PM benefits from the new standards

but actual benefits could vary

significantly from these levels.

Based on the results of the modeling,

the expected emission benefits from the

new standards are quite substantial.

Tables 4, 5, and 6 contain the

nationwide NOX, NMHC, and PM

inventories, respectively, under the

baseline scenario, which assumes only

the current Tier 1 standards are in

effect, and under the control scenario,

which assumes the new standards take

effect. (The PM reductions contained in

Table 6 are direct PM and do not

include secondary PM benefits, which

are described below.) By 2020, the

emission reductions due to the new

standards exceed 50 percent for both

NOX and NMHC, and 40 percent for PM.

All percentages are calculated relative to

the baseline inventories, which assumes

only the current Tier 1 standards are in

effect.

TABLE 4.—NO2 EMISSIONS INVENTORY FROM NONROAD DIESEL ENGINES

[Short tons]

Calendar year

PSR growth rates BEA growth rates

With current

standards

With new

standards

With current

standards

With new

standards

2000 .................................................................................................................. 2,932,000 2,916,000 2,740,000 2,727,000

2010 .................................................................................................................. 3,787,000 2,576,000 2,827,000 1,954,000

2020 .................................................................................................................. 5,445,000 2,689,000 3,005,000 1,463,000

TABLE 5.—NMHC EMISSIONS INVENTORY FROM NONROAD DIESEL ENGINES

[Short tons]

Calendar year

PSR growth rates BEA growth rates

With current

standards

With new

standards

With current

standards

With new

standards

2000 .................................................................................................................. 361,000 350,000 337,000 328,000
56986 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

13 ‘‘Benefits of Mobile Source NOX Related

Particulate Matter Reductions,’’ Systems

Applications International, EPA Contract No. 68–

C5–0010, WAN 1–8, October 1996 (available in Air

Docket A–96–40).

TABLE 5.—NMHC EMISSIONS INVENTORY FROM NONROAD DIESEL ENGINES—Continued

[Short tons]

Calendar year

PSR growth rates BEA growth rates

With current

standards

With new

standards

With current

standards

With new

standards

2010 .................................................................................................................. 419,000 256,000 301,000 193,000

2020 .................................................................................................................. 619,000 258,000 317,000 138,000

TABLE 6.—PM EMISSIONS INVENTORY FROM NONROAD DIESEL ENGINES

[Short tons]

Calendar year

PSR growth rates BEA growth rates

With current

standards

With new

standards

With current

standards

With new

standards

2000 .................................................................................................................. 294,000 292,000 271,000 269,000

2010 .................................................................................................................. 410,000 270,000 295,000 195,000

2020 .................................................................................................................. 604,000 338,000 315,000 170,000

In addition to the effect of the new

emission standards on direct PM

emissions noted above, the standards

are expected to reduce the

concentrations of secondary PM.

Secondary PM is formed when NOX

reacts with ammonia in the atmosphere

to yield ammonium nitrate particulate.

Systems Applications International,

under contract with EPA, evaluated the

effect of the NOX reductions on the

formation of nitrate particulate.13 The

report concluded that, as a national

average, each 100 tons of NOX reduction

will result in about 4 tons of secondary

PM reduction. This conversion rate

varies from region to region, and is

greatest in the West. EPA estimates that

the approximately 2.8 million tons per

year of NOX reduction projected in 2020

resulting from this final rule (assuming

PSR growth rates) will result in a

national average of about 110,000 tons

per year reduction in secondary PM.

This level of secondary PM reduction is

equivalent to about 40 percent of the

projected direct PM reductions

determined from Table 6 (based on PSR

growth rates).

As discussed below in section V.B,

some technology upgrades associated

with this program may have been

introduced absent the changes in

emission standards. Any emission

reductions that would normally have

occurred with improvements in

technology should not be considered in

determining the benefits and cost

effectiveness of new emission standards.

However, EPA believes that as

manufacturers modernize and improve

the technologies used on nonroad

engines, they are faced with many

choices on how to employ the new

technologies to the greatest advantage

for their customers. Many times, in the

absence of requirements to meet tighter

emission standards, the manufacturer

will design the parameters of a new

technology, or similarly, redesign the

existing engine, to minimize fuel

consumption or some other desirable

trait, while not taking advantage of the

emissions control capability of the new

technology. Because none of these

technologies leads to inherently lower

emissions, EPA has not made any

adjustments to the emission reduction

or cost-effectiveness calculations to

account for emission benefits that

would have occurred independent of

the new standards.

B. Economic Impacts

In assessing the economic impact of

changing the emission standards, EPA

has made a best estimate of the

combination of technologies that an

engine manufacturer might use to meet

the new standards at an acceptable cost.

EPA published detailed cost estimates

with the proposed rule, which has been

extensively revised based on

information received during the public

comment period. The principal change

incorporated into the analysis for the

final rule is the inclusion of estimated

costs for adding or improving

turbocharging and aftercooler systems.

The substantial additional costs for

these technologies are offset to a great

degree by the expected savings from

reduced fuel consumption. These and

other changes to the estimated economic

impact analysis are described in the

Summary and Analysis of Comments.

While equipment manufacturers bear

no responsibility for meeting emission

standards, they will need to make

changes in the design of their

equipment models to accommodate the

new engines. EPA’s treatment of the

impacts of the new emission standards

therefore includes an analysis of costs

for equipment manufacturers. Full

details of EPA’s cost and costeffectiveness analyses can be found in

Chapters 4 and 6 of the Final RIA.

Estimated cost increases are broken

into purchase price and total life-cycle

operating costs. The incremental

purchase price for new engines and

equipment is comprised of variable

costs (for hardware and assembly time)

and fixed costs (for research and

development (R&D), retooling, and

certification). Total operating costs

include any expected increases in

maintenance or fuel consumption. Cost

estimates based on these projected

technology packages represent an

expected incremental cost of engines as

they begin to comply with new emission

standards. Costs in subsequent years are

projected to decrease due to several

factors, as described below. Separate

projected costs were derived for engines

and equipment used in six different

ranges of rated power; costs were

developed for engines near the middle

of the listed ranges. All costs are

presented in 1995 dollars. Life-cycle

costs have been discounted to the year

of sale using a discount rate of 7

percent.

1. Engine Technologies

The following discussion provides a

brief description of those technologies
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56987

EPA projects will be needed to comply

with the new emission standards. In

some cases it is difficult to make a

distinction between technologies

needed to reduce emissions for

compliance with emission standards

and those technologies that offer other

benefits for improved fuel economy,

power density, and other aspects of

engine performance. EPA believes that

without new emission standards,

manufacturers would continue research

on and eventually deploy many

technological upgrades to improve

engine performance or more costeffectively control emissions.

Modifications to fuel injection systems

and the introduction of electronic

controls are expected to continue,

regardless of any change in emission

standards, to improve engine

performance. Some further development

with a focus on NOX, HC, and PM

emissions will nevertheless play an

important role in achieving emission

reduction targets.

Because several technology upgrades

have benefits that go beyond reducing

emissions, a difficulty in assessing the

impact of new emission standards is

establishing the appropriate technology

baseline from which to make

projections. Ideally, the analysis would

establish the mix of technologies that

manufacturers would have introduced

absent the changes in emission

standards, then make a projection for

any additional changes in hardware or

calibration required to comply with

those standards. The costs of those

projected technology and calibration

changes would then most accurately

quantify the impact of setting new

emission standards. While it is difficult

to take into account the effect of ongoing

technology development, EPA believes

that assessing the full cost of the

anticipated technologies as an impact of

the new emission standards would

inappropriately exclude from

consideration the observed benefits for

engine performance, fuel consumption,

and durability. Short of having

sufficient data to predict the future with

a reasonable degree of confidence, EPA

faces the need to devise an alternate

approach to quantifying the true impact

of the new emission standards. EPA

believes the observed value of

performance improvements in the field

justifies the use of a discount based on

equal weighting of emission and nonemission benefits of those technologies

which clearly have substantial nonemission benefits, namely electronic

controls, fuel injection changes,

turbocharging, and engine

modifications. For some or all of these

technologies, a greater value for the nonemission benefits could likely be

justified.

A variety of technological

improvements are projected for

complying with the multiple tiers of

new emission standards. Selecting these

technology packages requires extensive

engineering analysis and judgment. The

fact that manufacturers have nearly a

full decade before implementation of

the most challenging of the new

standards ensures that technologies will

develop significantly before reaching

production. This ongoing development

will lead to reduced costs in three ways.

First, research will lead to enhanced

effectiveness for individual

technologies, allowing manufacturers to

use simpler packages of emission

control technologies than would be

predicted given the current state of

development. Similarly, the continuing

effort to improve the emission control

technologies will include innovations

that allow lower-cost production.

Finally, manufacturers will focus

research efforts on any potential

drawbacks, such as increased fuel

consumption or maintenance costs,

attempting to minimize or overcome any

negative effects.

A combination of technology

upgrades are anticipated as a result of

the new emission standards.

Modifications to basic engine design

features, such as piston bowl shape and

engine block and head geometry, can

improve intake air characteristics and

distribution during combustion.

Manufacturers are expected to introduce

electronic controls on most engines

rated at or above 37 kW. Advanced fuelinjection techniques and hardware will

allow designers to modify various fuel

injection parameters for higher pressure,

further rate shaping, and some split

injection. For Tier 3 standards, EPA

expects that many engines will see

further fuel injection improvements and

will incorporate a moderate degree of

cooled exhaust gas recirculation. Details

of the mix of technologies included in

the cost analysis can be found in

Chapter 4 of the Final RIA.

While the following analysis projects

a relatively uniform emission control

strategy for designing the different

categories of engines, this should not

suggest that EPA expects a single

combination of technologies will be

used by all manufacturers. In fact,

depending on basic engine emission

characteristics, EPA expects that control

technology packages will gradually be

fine-tuned to different applications.

Furthermore, EPA expects

manufacturers to use averaging,

banking, and trading programs as a

means to deploy varying degrees of

emission control technologies on

different engines. EPA nevertheless

believes that the projections presented

here provide a cost estimate

representative of the different

approaches manufacturers may

ultimately take.

2. Engine Costs

The projected costs of these new

technologies for meeting the new

standards are itemized in the Final RIA

and summarized in Table 7. For the Tier

1 standards for engines rated under 37

kW, estimated costs vary widely. Those

engines that already operate with

emissions low enough to meet the Tier

1 standards will bear costs only for

certifying the engine, or about $10 per

engine. For the remaining one-third of

engines expected to need reduced

emissions, adding engine modifications

leads to total costs of around $90. The

anticipated increase in operating costs

will similarly be focused on the

minority of engines that need design

improvements, totaling about $130 in

net present value (npv) over the lifetime

of those engines. The calculated salesweighted composite increase in both the

purchase price and the operating costs

for all engines rated under 37 kW is less

than $50.

TABLE 7.—PROJECTED UNIT COSTS—ENGINES

Cost category Year of

production

Power (kW)

0–37 37–75 75–130 130–450 450–560 560+

Tier 1

Incremental purchase price ................ 1 ....................... $34 .................... .................... .................... .................... ....................

Life-cycle Operating Costs (npv) ....... All ..................... 44 .................... .................... .................... .................... ....................
56988 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

14 ‘‘Engine Price (On-Highway and Nonroad) &

Life-cycle Cost Methodology,’’ memorandum from

Thomas Uden, ICF, Inc. to Alan Stout, U.S. EPA,

March 21, 1997 (available in Air Docket A–96–40).

15 ‘‘Learning Curves in Manufacturing,’’ Linda

Argote and Dennis Epple, Science, February 23,

1990, Vol. 247, pp. 920–924 (available in Air Docket

A–96–40).

TABLE 7.—PROJECTED UNIT COSTS—ENGINES—Continued

Cost category Year of

production

Power (kW)

0–37 37–75 75–130 130–450 450–560 560+

Tier 2

Incremental purchase price ................ 1 ....................... 72 $124 $425 $464 $1,355 $683

Life-cycle Operating Costs (npv) ....... All ..................... 44 59 ¥147 ¥262 ¥1,347 0

Tier 3

Incremental purchase price ................ 1 ....................... .................... 240 511 758 1,858 ....................

6 ....................... .................... 120 297 435 535 ....................

Life-cycle Operating Costs (npv) ....... All ..................... .................... 97 ¥652 ¥826 ¥1,212 ....................

Tier 2 standards, which apply to the

full range of power ratings, involve

higher estimated cost impacts. The set

of technologies anticipated for Tier 2

engines include varying degrees of

engine modifications, improved fuel

injection, electronic controls,

turbocharging, aftercooling, and exhaust

gas recirculation. A small increase in

operating costs is expected for engines

rated between 37 and 75 kW, but for

other engines operating costs are

expected to remain unchanged or in

some cases to decrease as a result of

charge air cooling, as described in the

Final RIA. The price of engines rated

under 75 kW is expected to increase by

about $100. Engines rated between 75

and 450 kW will likely see cost

increases between $400 and $500, while

larger engines may see price increases

approaching or exceeding $1,000. The

projected cost of compliance with Tier

3 standards entails increases from Tier

2 costs that follow a similar pattern to

the increases for Tier 2 standards,

though the Tier 3 standards apply only

to engines rated between 37 and 560

kW.

Characterizing these estimated costs

in the context of their fraction of the

total purchase price and life-cycle

operating costs is helpful in gauging the

economic impact of the new standards.

ICF conducted a study to characterize

the range of current engine costs.14

Although the incremental cost

projections in Table 7 increase

dramatically with increasing power

rating, they in fact represent a

comparable price change relative to the

total price of the engine. The estimated

cost increases for all engines are at most

13 percent of estimated engine prices

(after typical discounts and rebates).

Moreover, the cost savings described

below further reduce the projected

impact of the new emission standards;

long-term cost increases are expected to

be 8 percent of total engine price or less.

For the long term, EPA has identified

two principal factors that would cause

the estimated incremental costs to

decrease over time. First, since fixed

costs are assumed to be recovered over

a fixed period, these costs disappear

from the analysis after they have been

fully recovered. This has a most striking

effect on the projected costs for engines

rated over 450 kW, for which the much

higher projected costs are dominated by

fixed costs. Second, the analysis

incorporates the expectation that

manufacturers will apply ongoing

research to making emission controls

more effective and less costly over time.

Research in the costs of manufacturing

has consistently shown that as

manufacturers gain experience in

production, they are able to apply

innovations to simplify machining and

assembly operations, use lower cost

materials, and reduce the number or

complexity of component parts.15 The

analysis incorporates the effects of this

learning curve by projecting that the

variable costs of producing the lowemitting engines decreases by 20

percent starting with the third year of

production and by reducing variable

costs again by 20 percent starting with

the sixth year of production. Table 7

lists the projected costs for each

category of engine, including the set of

numbers that illustrate the projected

reduction in long-term costs for Tier 3

engines.

3. Equipment Costs

In addition to the costs directly

associated with engines that are

redesigned to meet new standards, costs

may also result from the need to

redesign the nonroad equipment in

which these engines are used. Such

redesigns could occur if the engine has

a different shape or heat rejection rate,

or is no longer made available in the

configuration previously used. Based on

their experience with the Tier 1

standards set in 1994, equipment

manufacturers have told EPA that the

main barrier to accommodating

complying engines is the late delivery of

such engines by engine manufacturers,

which cuts into the lead time that

equipment manufacturers need to

properly redesign their equipment.

Thus, attempts were made in

developing this rulemaking to provide

compliance flexibility to help

equipment manufacturers avoid

business disruptions resulting from the

changes associated with new emission

standards.

In addition, the Tier 3 emission

standards and implementation dates for

engines rated at or above 37 kW and

Tier 2 emission standards and

implementation dates for engines rated

under 37 kW are based on the premise

that no significant equipment redesign

beyond that required to accommodate

engines meeting the previous tier of

standards will be required to

accommodate the new engines.

Equipment manufacturers may, of

course, choose to spread equipment

redesigning over the time frame for both

first and second tiers of standards. This

analysis accounts for this flexibility by

projecting one major redesign for each

equipment model, spreading the costs of

this redesign over both tiers of

standards. For each tier of standards,

EPA projects that equipment

manufacturers will have sufficient

opportunity to accommodate complying

engines and to market their product.

EPA will consider the potential for

multiple design changes to equipment

models during the 2001 Feasibility

Review.

In assessing the economic impact of

the new emission standards, EPA has

made a best estimate of the

modifications to equipment that relate
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56989

to packaging (installing engines in

equipment engine compartments),

power train (torque curve), and heat

rejection effects of the new complying

engines. The incremental purchase price

for new engines is comprised of fixed

costs (for R&D and retooling) and

variable costs (for new or modified

components). In its analysis, EPA

attributes all changes in operating costs

(i.e., additional maintenance and fuel

economy benefit or penalty) to the cost

estimates for engines. After a new

standard takes effect, projected

equipment costs in subsequent years

would be reduced for the same reasons

as described in the engine cost section

above. Separate projected costs were

determined for equipment using the

same ranges of power ratings used

above. Full details of EPA’s equipment

cost analysis can be found in Chapter 4

of the Final RIA.

a. Projected Equipment Changes. As

described earlier, the amount of time

that an equipment manufacturer has to

integrate a new engine into a piece of

equipment is of critical importance.

These manufacturers have experienced

that late engine delivery may prevent

them from adequately engineering their

equipment designs, resulting in the

need for various improvised changes. In

this case, the costs associated with the

engine change would be for fabricated

components and other hardware

changes more than for engineering time.

In contrast, with adequate lead time, an

equipment manufacturer can invest

enough engineering time to design

around the new engine, usually with

minimal increase in hardware costs.

Depending on the degree of change

required, sales volumes, and other

factors, actual costs in either of these

scenarios may be comparable. EPA’s

analysis follows the latter scenario,

emphasizing engineering time over

hardware costs.

The biggest change anticipated for

equipment redesign is in changing the

engine compartments to accommodate

the physical changes to engines,

especially for those engines that add airto-air aftercoolers. The costs for engine

development and the principal

hardware components (radiator and

plumbing) associated with air-to-air

aftercooling are included as costs to the

engines, as described above. What

remains to be quantified for equipment

manufacturers is then the effort to make

space for the larger engine system and

to integrate the engine into the overall

functioning of the equipment. Extensive

engineering time is allocated to this

effort. In addition, significant costs are

included for new, added, or improved

materials that may be required, such as

brackets, hoses, gaskets, or sheet metal.

b. Projected Equipment Costs. The

costs of the projected equipment

changes resulting from the new

standards are itemized in the Final RIA

and summarized in Table 8. For the Tier

1 emission standards that apply to

equipment with engines rated under 37

kW, the estimated composite cost

increase is $24 per piece of equipment.

As described in the section on engine

costs above, this estimate is based on

the determination that many of the

engines for this range of equipment

already operate with emissions low

enough to meet the Tier 1 standards.

TABLE 8.—PROJECTED UNIT COSTS

Tier

Power (kW)

0–37 37–75 75–130 130–450 450–560 560+

TIER 1

Equipment ......................................................................... $24 .................... .................... .................... .................... ....................

Total Engine and Equipment ............................................ 59 .................... .................... .................... .................... ....................

TIER 2

Equipment ......................................................................... 8 $125 $441 $340 $1,315 $404

Total Engine and Equipment ............................................ 80 250 867 804 2,670 1,087

TIER 3: Short-Term

Equipment ......................................................................... .................... 42 147 113 439 ....................

Total Engine and Equipment ............................................ .................... 282 658 872 2,296 ....................

TIER 3: Long-Term

Equipment ......................................................................... .................... 3 4 5 7 ....................

Total Engine and Equipment ............................................ .................... 122 301 440 543 ....................

For Tier 2 standards, the relatively

low equipment costs for equipment

rated under 75 kW reflect the higher

sales volume of this range. The highest

projected cost of $1315 for equipment

utilizing engines rated between 450 and

560 kW demonstrates that high unit

equipment costs are due to amortizing

large fixed costs over small sales

volumes. These large fixed costs result

from the effort to accommodate air-to-air

aftercooling. Equipment with engines

rated over 560 kW are expected to

require less redesign, and have

correspondingly lower costs, since no

changes in aftercooling are anticipated

for these models as a result of Tier 2

emission standards.

The projected incremental cost of

complying with Tier 3 standards are

lower than that for Tier 2 standards,

because EPA expects most of the

significant changes to equipment

designs will occur for Tier 2 standards.

For Tier 3 standards, projected

equipment costs range from $42 to $439.

As discussed in the section on engine

costs above, characterizing both these

estimated incremental equipment and

engine costs in the context of their

fraction of the total equipment purchase

price is useful for evaluating the

economic impact of the new standards.

EPA collected quoted retail (list) prices

on several equipment pieces to

characterize the range of current

equipment prices. The combined

incremental costs estimated for

equipment and engines together for all

power ranges are almost all under 2

percent of list prices, while many are

well below 1 percent.

Furthermore, as described in the

section on engine costs above, the cost

savings from full amortization of fixed

costs and application of a learning curve

further reduce the projected cost impact

of the new standards. Table 8 shows the

projected equipment costs for each

category of equipment, including the

long-term cost projections for complying

with Tier 3 standards. The table also

presents the combined costs estimated
56990 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

for equipment and engines (excluding

changes to operating costs).

4. Aggregate Costs to Society

The above analysis presents unit cost

estimates for each power category. With

current data for equipment sales for

each category and projections for the

future, these costs can be translated into

a total projected cost to the nation for

the new emission standards in any year.

Accounting for the projected favorable

impact of the new standards on

operating costs, primarily from fuel

savings in larger engines, would

produce negative aggregate costs (net

economic gains) in future years.

However, because it is difficult to

accurately assess the fuel economy

impacts of hardware changes and the

degree to which these savings would

have developed in the absence of new

emission standards, EPA has

conservatively chosen to present

aggregate costs to society without

factoring in the expected changes in

operating costs. Using only the

increased purchase prices leads to

aggregate costs of about $5 million in

the first year the new standards apply,

increasing to a peak of about $550

million in 2010 as increasing numbers

of engines become subject to the new

standards. The following years show

declining aggregate costs as the per-unit

cost of compliance decreases, resulting

in a minimum aggregate cost of about

$390 million in 2017. After 2017, stable

engine costs applied to a slowly growing

market lead to slowly increasing

aggregate costs.

As described earlier, EPA developed

the cost and cost-effectiveness analyses

by attributing half of the cost of certain

technologies to benefits unrelated to

emission control. To analyze the

sensitivity of the cost analysis to this

assumption, EPA estimated unit costs

by attributing the full cost of these

technologies to the new emission

standards. EPA then estimated the effect

of these increased costs on the 20-year

costs to society. Assigning the full cost

of technology as an to the emission

control program, the 20-year fleetwide

discounted cost is estimated to be $4.4

billion, approximately $1.2 billion

higher than calculated using the base

case. Similarly, the resulting 20-year

annualized fleetwide costs are $411

million per year, approximately $115

million higher than the base case

results.

EPA also developed alternative cost

figures to test the sensitivity of

distributing fixed costs over worldwide

production of nonroad engines and

equipment. Because some countries are

not expected to adopt harmonized

emission standards in the foreseeable

future, manufacturers could choose to

distribute fixed costs over a subset of

foreign sales. Since it is very difficult to

quantify sales volumes for individual

countries for all the companies that

participate in the U.S. market, EPA

made the simplifying assumption that

fixed costs could be distributed over

only half of engines sold into other

countries. Distributing costs over this

smaller number of engines leads to a 20-

year fleetwide discounted cost of $3.6

billion, approximately $0.4 billion

higher than the base case results. The

corresponding 20-year annualized

fleetwide costs are $339 million per

year, approximately $40 million higher

than the base case results.

C. Cost-Effectiveness

EPA has estimated the costeffectiveness (i.e., the cost per ton of

emission reduction) of the Tier 1, Tier

2 and Tier 3 standards for the same

power categories of nonroad equipment

highlighted earlier in this section.

Chapter 6 of the Final RIA contains a

more detailed discussion of the costeffectiveness analysis.

As described above in the preceding

section, the projected cost of complying

with the new standards will vary by

power category and model year.

Therefore, the cost-effectiveness will

also vary from model year to model

year. For comparison purposes, the

discounted costs (including increased

engine costs and equipment costs),

emission reductions (in short tons), and

cost-effectiveness of the NMHC + NOX

standards are shown in Table 9 for the

same model years discussed in the

preceding section. EPA believes this is

a conservative estimate because EPA

assumed for the sake of this analysis

that all of the increased costs presented

earlier were attributable to NMHC +

NOX control and none of the costs were

attributed to PM control. NOX

reductions represent approximately 90

percent of the total NMHC + NOX

emission reductions expected from the

new standards. In addition, the costs

presented in Table 9 do not include the

expected effect on operating costs over

the lifetime of the equipment. EPA

expects the operating costs to offset

much, if not all, of the increased engine

and equipment costs presented in Table

9 for engines above 75 kW due to

expected improvements in fuel

economy for engines meeting the new

standards.

TABLE 9.—COST-EFFECTIVENESS OF THE NEW NMHC+NOX STANDARDS

Standard Power (kW) Year of

production

Discounted

engine and

equipment

cost

Discounted

lifetime

NMHC+NOX

reductions

(tons)

Discounted

lifetime

cost-effectiveness per

ton

Tier 1 ..................................................................................................... 0–37 1 $59 0.20 $300

Tier 2 ..................................................................................................... 0–37 1 80 0.04 2,090

...................... 6 35 ..................... 910

37–75 1 249 0.49 510

75–130 1 867 1.02 850

130–450 1 804 1.82 440

450–560 1 2,670 7.68 350

>560 1 1,087 9.83 110

...................... 6 1,025 ..................... 100

Tier 3 ..................................................................................................... 37–75 1 282 0.51 560

...................... 6 160 ..................... 320

75–130 1 658 0.82 800

...................... 6 442 ..................... 540

130–450 1 872 1.46 600

...................... 6 545 ..................... 380

450–560 1 2,296 5.91 390

...................... 6 1,991 ..................... 340
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56991

Weighting the projected cost and

emission benefit numbers presented

above by the populations of the

individual power categories, EPA

calculated the cost-effectiveness of the

new NMHC + NOX standards for the

entire nonroad diesel engine fleet. Table

10 contains the resulting fleet-wide costeffectiveness results for the Tier 2 and

Tier 3 standards. The sensitivity

analyses described in Section V.B.4.

above would affect cost-effectiveness

calculations in the same way as

described for fleetwide total costs. The

Appendix to the Final RIA includes

cost-effectiveness results for the

sensitivity analysis in which full costs

are attributed to emissions control.

TABLE 10.—FLEET-WIDE COST-EFFECTIVENESS OF THE NEW NONROAD

NMHC+NOX STANDARDS

Standard

Discounted

lifetime

cost-effectiveness per

ton

Tier 2 ......................................... $600

Tier 3—Short term .................... 650

Tier 3—Long term ..................... 410

For comparison to other PM control

strategies, EPA has also analyzed the

cost-effectiveness of the new standards

by very conservatively assuming that

half of the increased costs were

attributable to PM control. Such a fleetwide discounted lifetime costeffectiveness represents the highest

figure that could be expected for costeffectiveness of the new standards and

was calculated to provide an indication

of the upper bound of PM costeffectiveness values. The resulting fleetwide discounted lifetime costeffectiveness of the Tier 1 and Tier 2 PM

standards is approximately $2,300 per

ton.

In an effort to evaluate the costeffectiveness of the NMHC + NOX

controls for nonroad engines, EPA has

summarized the cost-effectiveness

results for four other recent EPA mobile

source rulemakings that required

reductions in NOX (or NMHC + NOX)

emissions. The heavy-duty vehicle

portion of the Clean Fuel Fleet Vehicle

Program yielded a cost-effectiveness of

approximately $1,500/ton of NOX, Phase

II of the Reformulated Gasoline Program

yielded approximately $5,000/ton of

NOX, the most recent NMHC + NOX

standards for highway heavy-duty diesel

engines yielded a cost-effectiveness of

$100–$600/ton of NMHC + NOX, and

the newly adopted standards for

locomotive engines yielded a costeffectiveness of $160–$250/ton of NOX.

The cost-effectiveness of the new NMHC

+ NOX standards for nonroad diesel

engines presented above are more

favorable than the cost-effectiveness of

both the clean fuel fleet vehicle program

and reformulated gasoline. The costeffectiveness of the new NMHC + NOX

standards for nonroad diesel engines is

comparable to the cost-effectiveness of

the most recent NMHC + NOX standards

for heavy-duty highway diesel engines

and slightly less favorable than the costeffectiveness of the locomotive

standards.

EPA has also summarized the costeffectiveness results for two other recent

EPA mobile source rulemakings that

required reductions in PM emissions.

The cost-effectiveness of the most recent

urban bus engine PM standard was

estimated to be $10,000–$16,000/ton

and the cost-effectiveness of the urban

bus retrofit/rebuild program was

estimated to be approximately $25,000/

ton. The PM cost-effectiveness of the

new emission standards presented

above are more favorable than either of

the urban bus programs.

In addition to the benefits of reducing

ozone within and transported into urban

ozone nonattainment areas, the NOX

reductions from the new standards are

expected to have beneficial impacts

with respect to crop damage, secondary

particulate formation, acid deposition,

eutrophication, visibility, and forests, as

described earlier. Because of the

difficulty of quantifying the monetary

value of these societal benefits, the costeffectiveness values presented do not

assign any numerical value to these

additional benefits. However, based on

an analysis of existing studies that have

estimated the value of such benefits in

the past, the Agency believes that the

actual monetary value of the multiple

environmental and public health

benefits produced by large NOX

reductions similar to those projected

under this final rule will likely be

greater than the estimated compliance

costs.

VI. Public Participation

A wide variety of interested parties

participated in the rulemaking process

that culminates with this final rule. This

process provided several opportunities

for public comment over a period of

more than two years. An Advance

Notice of Proposed Rulemaking

(ANPRM) (60 FR 45580, August 31,

1995) announced EPA’s intention to

address emissions from nonroad diesel

engines, and a Supplemental ANPRM

(62 FR 199, January 2, 1997) detailed the

framework for a proposed rule.

Comments received during this period

were considered in the development of

the NPRM and are discussed in that

document. These comments included

information received from small

businesses as a part of the multi-agency

Small Business Advocacy Review Panel

process which was completed prior to

the NPRM and is described below under

the discussion of the Regulatory

Flexibility Act. The formal comment

period and public hearing associated

with the NPRM provided another

opportunity for public input. EPA has

also met with a variety of stakeholders

at various points in the process,

including environmental organizations,

engine manufacturers, equipment

manufacturers, and states.

EPA has prepared a detailed

Summary and Analysis of Comments

document which describes the

comments received on the NPRM and

presents the Agency’s response to each

of these comments. The Summary and

Analysis of Comments document is

available in the docket for this rule and

on the Office of Mobile Sources internet

home page.

VII. Administrative Requirements

A. Administrative Designation and

Regulatory Analysis

Under Executive Order 12866, the

Agency must assess whether this

regulatory action is ‘‘significant’’ and

therefore subject to Office of

Management and Budget (OMB) review

and the requirements of the Executive

Order (58 FR 51735, Oct. 4, 1993). The

order defines ‘‘significant regulatory

action’’ as any regulatory action 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, EPA has determined that

this rulemaking is a ‘‘significant

regulatory action’’ because the new

standards and other regulatory

provisions, if implemented, are

expected to have an annual effect on the

economy in excess of $100 million. A
56992 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

Final RIA has been prepared and is

available in the docket associated with

this rulemaking. This action was

submitted to OMB for review as

required by Executive Order 12866. Any

written comments from OMB and any

EPA response to OMB comments are in

the public docket for this rulemaking.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act, 5

U.S.C. 601–612, was amended by the

Small Business Regulatory Enforcement

Fairness Act of 1996 (SBREFA), Pub. L.

104–121, to ensure that concerns

regarding small entities are adequately

considered during the development of

new regulations that affect them. In

response to the provisions of this

statute, EPA identified industries that

would be subject to this rulemaking and

provided information to and received

comment from small entities and

representatives of small entities in these

industries prior to the formal proposal

of the program. Small entities submitted

written comments on the January, 1997

Supplemental Advance Notice of

Proposed Rulemaking and oral

comments at an informal workshop in

Chicago. From these and other

interactions, EPA developed a list of

potential provisions that might offer

flexibility to small entities while

meeting air quality goals.

The Agency convened a Small

Business Advocacy Review Panel under

section 609(b) of the Regulatory

Flexibility Act. The Panel distributed

the list of potential flexibility provisions

to the identified small entity contacts

for further comment and held a

teleconference which led to further

improvement of the flexibility options.

The Panel then received additional

written comments on potential options.

Based on suggestions from small entities

before and after the convening of the

Panel, the Panel identified a set of five

flexibility provisions to address small

business concerns which it

recommended to the Agency for

proposal in the rule. As detailed in

Chapter 4 of the Final RIA, the five

recommended provisions were the

following: (1) flexibility for equipment

manufacturers to aggregate and use

exemption allowances on a schedule

that best suited their needs, (2)

equivalent flexibility for manufacturers

of equipment using small engines as for

those using larger engines, (3) provision

for equipment manufacturers to

purchase credits in the averaging,

banking, and trading program and to use

those credits to exempt more

equipment, (4) dropping of the

requirement that the small volume

allowance be restricted to a single

equipment model, and (5) adoption of a

hardship relief provision. Subsequently,

EPA incorporated all five recommended

provisions into the Notice of Proposed

Rulemaking. Subsequently, EPA

incorporated all five recommended

provisions into the Notice of Proposed

Rulemaking.

After evaluating additional comments

received on the proposed regulatory

alternatives, EPA is adopting some of

the provisions as they were

recommended by the Panel as well as

alternative flexibility provisions. The

Agency is adopting the first two

provisions, although by removing a

special broader exemption for farming

and logging equipment and instead

increasing the allowances available to

manufacturers of all types of equipment,

the benefit to most small entities will

actually be greater than under the

proposed program. EPA is also adopting

the fifth provision, establishing

hardship relief.

The Agency agreed with commenters

who said that the third provision,

allowing equipment manufacturers to

purchase ABT program credits, would

not likely provide significant relief to

equipment manufacturers while adding

the complexity of credit accounting and

recordkeeping. This provision was not

finalized. The fourth provision was

adopted in a revised form, expanding

the small volume allowance to multiple

equipment models while establishing

limitations to prevent widespread use of

this provision by larger companies for

whom this allowance is not intended.

The Agency believes that, taken as a

whole, the flexibility provisions

established in this final rule provide

small businesses with at least the same

and probably greater flexibility

compared to the set of provisions

recommended by the Panel, while

meeting the Agency’s air quality goals.

These provisions represent a very

significant mitigation of the economic

impacts on small equipment

manufacturers compared to the impacts

that might otherwise have occurred if

small businesses had not been

consulted. The final set of flexibility

provisions and EPA’s rationale for

adopting these provisions are discussed

in detail in Section II.E above and in the

Summary and Analysis of Comments

document.

EPA prepared an Initial Regulatory

Flexibility Analysis which analyzed the

economic impacts of the proposed rule

on small companies and discussed

related issues. EPA has now prepared a

Final Regulatory Flexibility Analysis,

which is incorporated in Chapter 4

(Economic Impact) of the Final

Regulatory Impact Analysis associated

with this final rule. The Final

Regulatory Flexibility Analysis presents

the Agency’s final assessments of the

impacts this rule is likely to have on

small entities.

The Final Regulatory Flexibility

Analysis incorporates comments

received related to the Initial Regulatory

Flexibility Analysis and reassesses the

impact of the regulations on small

entities. As did the Initial document, the

Final Regulatory Flexibility Analysis

analyzes the four separate but related

industries that will be subject to this

proposed rule and that contain small

businesses as defined by regulations of

the Small Business Administration

(SBA): nonroad diesel engine

manufacturing, manufacturing of

nonroad diesel equipment, postmanufacturer marinizing of diesel

engines, and the rebuilding or

remanufacturing of diesel nonroad

engines. A detailed economic analysis

was conducted only for equipment

manufacturers, for several reasons. First,

there is only one manufacturer of diesel

engines affected by the proposed rule

that meets SBA’s small business criteria,

and this small engine manufacturer

would have impacts from the proposal

that are similar to those impacts

experienced by large nonroad engine

manufacturers as described elsewhere in

this final rule. Second, marinizers are

expected to experience impacts similar

to those of nonroad equipment

manufacturers since changes made by

the original engine manufacturers might

require changes in the parts and process

involved in marinization. Finally,

engine rebuilders/remanufacturers will

not be significantly economically

impacted, since the provisions of this

final rule for these entities does not

require a substantial change to their

current practices.

As described above in Section II, this

rule includes flexibility provisions for

equipment manufacturers (both large

and small manufacturers). The Final

Regulatory Flexibility Analysis

concludes that the final rule, with its

compliance flexibility provisions, will

result in an estimated 11 percent of

small equipment manufacturers having

annual compliance costs greater than 1

percent of their sales revenues. Also, an

estimated 7 percent of small equipment

manufacturers would experience a

compliance cost impact greater than 3

percent of sales revenues. EPA believes

the effects of the flexibility provisions

are conservatively estimated, in part

because the hardship relief provisions

and the more generous exemption

allowances finalized in this rule were

not taken into account in the analysis.

EPA considers the flexibility provisions
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56993

put in place by this rule to be a very

effective way of minimizing significant

economic impacts on small equipment

manufacturers consistent with the

Agency’s air quality objectives.

C. Paperwork Reduction Act

The Paperwork Reduction Act, 44

U.S.C. 3501 et seq., requires agencies to

submit for OMB review and approval,

federal requirements and activities that

result in the collection of information

from ten or more persons. Information

collection requirements may include

reporting, labeling, and recordkeeping

requirements. Federal agencies may not

impose penalties on persons who fail to

comply with collections of information

that do not display a currently valid

OMB control number.

The information collection

requirements in this final rule have been

approved by OMB without comment

under the Paperwork Reduction Act,

except for the requirement that engine

manufacturers’ annual reports include

information on engines produced for the

equipment manufacturer flexibility

program, discussed above in section

II.E.5. This requirement was not

included in the Information Collection

Request (ICR) submitted to OMB

because it was not formally proposed by

EPA in the NPRM. This reporting

requirement was, however, put forth in

the NPRM for comment, and is being

adopted in the final rule based on

further analysis and consideration of

comments received. EPA plans to

submit a separate ICR for this

requirement. The following ICR

documents have been prepared by EPA:

EPA ICR No. Title OMB

control No.

0011.09 ............................... Selective Enforcement Auditing and recordkeeping requirements for on-highway HDE, nonroad

compression ignition engines, and on-highway light-duty vehicles and Light duty trucks.

2060–0604

0095.10 ............................... Pre-certification and testing exemption reporting and recordkeeping requirements ......................... 2060–0007

0282.10 ............................... Emission Defect Information and Voluntary Emission recall reports ................................................. 2060–0048

1684.04 ............................... Compression Ignition Non-Road Engine Certification Application ..................................................... 2060–0104

1695.03 ............................... Amendment to the Information Collection Request Emission Standards for New Nonroad SparkIgnition Engines.2060–0104

1826.01 ............................... Information collection for equipment manufacturer flexibility ............................................................. 2060–0369

The Information Collection Requests

(ICR) were subject to public notice and

comment prior to OMB approval and, as

a result, EPA finds that there is ‘‘good

cause’’ under section 553(b) of the

Administrative Procedures Act (5 U.S.C.

553 (b)) to include these information

collection requirements in 40 CFR Part

9 without additional notice and

comment. EPA received various

comments on the rulemaking provisions

covered by the ICRs, but no comments

on the paperwork burden or other

information in the ICRs. All comments

that were submitted to EPA are

considered in the Summary and

Analysis of Comments, which can be

found in the docket (A–96–40). A copy

of any of the submitted ICR documents

may be obtained from Sandy Farmer,

OPPE Regulatory Information Division,

U.S. Environmental Protection Agency

(2137), 401 M St., S.W., Washington, DC

20460, or by calling (202) 260–2740.

D. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

federal agencies to assess the effects of

their regulatory actions on state, local,

and tribal governments and the private

sector. Under section 202 of the UMRA,

EPA generally must prepare a written

statement, including a cost-benefit

analysis, for proposed and final rules

with ‘‘federal mandates’’ that may result

in expenditures to state, local, and tribal

governments, in the aggregate, or to the

private sector, of $100 million or more

for any one year. Before promulgating

an EPA rule for which a written

statement is needed, section 205 of the

UMRA generally requires EPA to

identify and consider a reasonable

number of regulatory alternatives and

adopt the least costly, most costeffective, or least burdensome

alternative that achieves the objectives

of the rule. The provisions of section

205 do not apply when they are

inconsistent with applicable law.

Moreover, section 205 allows EPA to

adopt an alternative other than the least

costly, most cost-effective, or least

burdensome alternative if the

Administrator publishes with the final

rule an explanation of why that

alternative was not adopted. Before EPA

establishes any regulatory requirements

that may significantly or uniquely affect

small governments, including tribal

governments, it must have developed

under section 203 of the UMRA a small

government agency plan. The plan must

provide for notifying potentially

affected small governments, enabling

officials of affected small governments

to have meaningful and timely input in

the development of EPA regulatory

proposals with significant federal

intergovernmental mandates, and

informing, educating, and advising

small governments on compliance with

the regulatory requirements.

This final rule contains no federal

mandates (under the regulatory

provisions of Title II of the UMRA) for

state, local, or tribal governments. The

rule imposes no enforceable duties on

any of these governmental entities.

Nothing in the final program will

significantly or uniquely affect small

governments. EPA has determined that

this rule contains federal mandates that

may result in expenditures of $100

million or more in any one year for the

private sector. EPA believes that the

proposed program represents the least

costly, most cost-effective approach to

achieve the air quality goals of the rule.

The cost-benefit analysis required by

UMRA is contained in the Final RIA.

The reader is directed to Section VII.A

for further information regarding these

analyses.

E. Congressional Review Act

The Congressional Review Act, 5

U.S.C. 801 et seq., as added by the Small

Business Regulatory Enforcement

Fairness Act of 1996, generally provides

that before a rule may take effect, the

agency promulgating the rule must

submit a rule report, which includes a

copy of the rule, to each House of the

Congress and to the Comptroller General

of the United States. EPA will submit a

report containing this rule and other

required information to the U.S. Senate,

the U.S. House of Representatives, and

the Comptroller General of the United

States prior to publication of the rule in

the Federal Register. This rule is a

‘‘major rule’’ as defined by 5 U.S.C.

804(2).

F. National Technology Transfer and

Advancement Act

Section 12(d) of the National

Technology Transfer and Advancement

Act of 1995 (‘‘NTTAA’’), Public Law

104–113, section 12(d) (15 U.S.C. 272
56994 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

note) directs EPA to use voluntary

consensus standards in its regulatory

activities unless doing so would be

inconsistent with applicable law or

otherwise impractical. Voluntary

consensus standards are technical

standards (e.g., materials specifications,

test methods, sampling procedures, and

business practices) that are developed or

adopted by voluntary consensus

standards bodies. The NTTAA directs

EPA to provide Congress, through OMB,

explanations when the Agency decides

not to use available and applicable

voluntary consensus standards.

This final rule involves technical

standards. While commenters suggested

the use of ISO 8178 test procedures for

measuring emissions, the Agency has

decided not to rely on these ISO

procedures in this rulemaking. The

Agency has determined that these

procedures would be impracticable

because they rely too heavily on

reference testing conditions. Because

the test procedures in these regulations

need to represent in-use operation

typical of operation in the field, they

must be based on a range of ambient

conditions. EPA has determined that the

ISO procedures are not broadly usable

in their current form, and therefore

cannot be adopted by reference. EPA

has instead chosen to continue to rely

on the procedures outlined in 40 CFR

Part 89. EPA is hopeful that future ISO

test procedures will be developed that

are usable for the broad range of testing

needed, and that such procedures could

then be adopted by reference. EPA also

expects that any development of revised

test procedures will be done in

accordance with ISO procedures and in

a balanced manner and thus include the

opportunity for involvement of a range

of interested parties (potentially

including parties such as industry, EPA,

state governments, and environmental

groups) so that the resulting procedures

can represent these different interests.

G. Protection of Children

Executive Order 13045, entitled

‘‘Protection of Children from

Environmental Health Risks and Safety

Risks’’ (62 FR 19885, April 23, 1997),

applies to a rule that is determined to

be ‘‘economically significant,’’ as

defined under Executive Order 12866, if

the environmental health or safety risk

addressed by the rule has a

disproportionate effect on children. For

these rules, the Agency 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 considered by the Agency.

This final rule is not subject to

Executive Order 13045, because this

rule does not involve decisions on

environmental health or safety risks that

may disproportionately affect children.

H. Enhancing Intergovernmental

Partnerships

Under Executive Order 12875, EPA

may not issue a regulation that is not

required by statute and that creates a

mandate upon a State, local or tribal

government, unless the Federal

government provides the funds

necessary to pay the direct compliance

costs incurred by those governments. If

the mandate is unfunded, EPA must

provide to the Office of Management

and Budget a description of the extent

of EPA’s prior consultation with

representatives of affected State, local

and tribal governments, the nature of

their concerns, copies of any written

communications from the governments,

and a statement supporting the need to

issue the regulation. In addition,

Executive Order 12875 requires EPA to

develop an effective process permitting

elected officials and other

representatives of State, local and tribal

governments ‘‘to provide meaningful

and timely input in the development of

regulatory proposals containing

significant unfunded mandates.’’

This rule will be implemented at the

federal level and imposes compliance

obligations only on private industry.

The rule thus creates no mandate on

State, local or tribal governments, nor

does it impose any enforceable duties

on these entities. Accordingly, the

requirements of Executive Order 12875

do not apply to this rule.

I. Consultation and Coordination With

Indian Tribal Governments

Under Executive Order 13084, EPA

may not issue a regulation that is not

required by statute, that significantly or

uniquely affects the communities of

Indian tribal governments, and that

imposes substantial direct compliance

costs on those communities, unless the

Federal government provides the funds

necessary to pay the direct compliance

costs incurred by the tribal

governments. If the mandate is

unfunded, EPA must provide to the

Office of Management and Budget, in a

separately identified section of the

preamble to the rule, a description of

the extent of EPA’s prior consultation

with representatives of affected tribal

governments, a summary of the nature

of their concerns, and a statement

supporting the need to issue the

regulation. In addition, Executive Order

13084 requires EPA to develop an

effective process permitting elected and

other representatives of Indian tribal

governments ‘‘to provide meaningful

and timely input in the development of

regulatory policies on matters that

significantly or uniquely affect their

communities.’’

This rule does not significantly or

uniquely affect the communities of

Indian tribal governments. As noted

above, this rule will be implemented at

the federal level and imposes

compliance obligations only on private

industry. Accordingly, the requirements

of Executive Order 13084 do not apply

to this rule.

VIII. Statutory Authority

In accordance with section 213(a) of

the Clean Air Act, 42 U.S.C. 7547(a),

EPA conducted a study of emissions

from nonroad engines, vehicles, and

equipment in 1991. Based on the results

of that study, EPA determined that

emissions of NOX, volatile organic

compounds (including hydrocarbons),

and CO from nonroad engines and

equipment contribute significantly to

ozone and CO concentrations in more

than one nonattainment area. See 59 FR

31306, June 17, 1994. Given this

determination, section 213(a)(3) of the

Act requires EPA to promulgate (and

from time to time revise) emissions

standards for those classes or categories

of new nonroad engines, vehicles, and

equipment that in EPA’s judgment cause

or contribute to such air pollution. EPA

has determined that the engines

regulated under this final rule ‘‘cause or

contribute’’ to such air pollution. See 59

FR 31306, June 17, 1994.

Where EPA determines that other

emissions from new nonroad engines,

vehicles, or equipment significantly

contribute to air pollution that may

reasonably be anticipated to endanger

public health or welfare, section

213(a)(4) authorizes EPA to establish

(and from time to time revise) emission

standards from those classes or

categories of new nonroad engines,

vehicles, and equipment that EPA

determines cause or contribute to such

air pollution. In the June 1994 final rule,

EPA made this determination for

emissions of PM and smoke from

nonroad engines in general and for CI

nonroad engines rated at or above 37

kW. This rule extends the same findings

to nonroad diesel engines rated under

37 kW.

List of Subjects

40 CFR Part 9

Environmental protection, Reporting

and recordkeeping requirements.
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56995

40 CFR Part 86

Administrative practice and

procedure, Confidential business

information, Labeling, Motor vehicle

pollution, Reporting and recordkeeping

requirements.

40 CFR Part 89

Environmental protection,

Administrative practice and procedure,

Confidential business information,

Diesel fuel, Imports, Incorporation by

reference, Motor vehicle pollution,

Reporting and recordkeeping

requirements, Research, Warranties.

Dated: August 27, 1998.

Carol M. Browner,

Administrator.

For the reasons set out in the

preamble, title 40, chapter I, parts 9, 86,

and 89 of the Code of Federal

Regulations are amended as set forth

below.

PART 9—[AMENDED]

1. The authority citation for part 9

continues to read as follows:

Authority: 7 U.S.C. 135 et seq., 136–136y;

15 U.S.C. 2001, 2003, 2005, 2006, 2601–2671;

21 U.S.C. 331j, 346a, 348; 31 U.S.C. 9701; 33

U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318,

1321, 1326, 1330, 1342 1344, 1345 (d) and

(e), 1361; E.O. 11735, 38 FR 21243, 3 CFR,

1971–1975 Comp. p. 973; 42 U.S.C. 241,

242b, 243, 246, 300f, 300g, 300g–1, 300g–2,

300g–3, 300g–4, 300g–5, 300g–6, 300j–1,

300j–2, 300j–3, 300j–4, 300j–9, 1857 et seq.,

6901–6992k, 7401–7671q, 7542, 9601–9657,

11023, 11048.

2. Section 9.1 is amended in the table

by removing the center heading

‘‘Control of Emissions From New and

In-Use Nonroad Engines’’ and the

entries under that center heading and

adding a new center heading and entries

in numerical order to read as follows:

§ 9.1 OMB approvals under the Paperwork

Reduction Act.

* * * * *

40 CFR citation OMB control

No.

* * * * *

Control of Emissions From New and InUse Nonroad Compression-Ignition Engines

89.1 ....................................... 2060–0124

89.2 ....................................... 2060–0124

89.114–89.120 ...................... 2060–0287

89.122–89.127 ...................... 2060–0287

89.129 ................................... 2060–0287

89.203–89.207 ...................... 2060–0287

89.209–89.211 ...................... 2060–0287

89.304–89.331 ...................... 2060–0287

89.404–89.424 ...................... 2060–0287

89.505–89.512 ...................... 2060–0064

40 CFR citation OMB control

No.

89.603–89.605 ...................... 2060–0095

89.607–89.610 ...................... 2060–0095

89.611 ................................... 2060–0007,

2060–0095

89.612 ................................... 2060–0095

89.801–89.803 ...................... 2060–0048

89.903 ................................... 2060–0124

89.905–89.911 ...................... 2060–0007

* * * * *

PART 86—CONTROL OF EMISSIONS

FROM NEW AND IN-USE HIGHWAY

VEHICLES AND ENGINES

3. The heading of part 86 is revised

as set forth above.

4. The authority citation for part 86

continues to read as follows:

Authority: 42 U.S.C. 7401–7671(q).

5. Section 86.884–8 is amended by

revising the table in paragraph (c)(4) to

read as follows:

§ 86.884–8 Dynamometer and engine

equipment.

* * * * *

(c) * * *

(4) * * *

Maximum rated horsepower

Exhaust

pipe

diameter

(inches)

HP>50 ....................................... 1.5

50≤HP>100 ............................... 2.0

100≤HP>200 ............................. 3.0

200≤HP>300 ............................. 4.0

300≤HP>500 ............................. 5.0

HP≤5006.0.

* * * * *

PART 89—CONTROL OF EMISSIONS

FROM NEW AND IN-USE NONROAD

COMPRESSION-IGNITION ENGINES

6. The heading of part 89 is revised

as set forth above.

7. The authority citation for part 89

continues to read as follows:

Authority: Sections 202, 203, 204, 205,

206, 207, 208, 209, 213, 215, 216, and 301(a)

of the Clean Air Act, as amended (42 U.S.C.

7521, 7522, 7523, 7524, 7525, 7541, 7542,

7543, 7547, 7549, 7550, and 7601(a)).

8. The following sections are

redesignated as set forth in the

following table:

Old

designation

New

designation

89.101–96 ................................. 89.101

89.102–96 ................................. 89.102

89.103–96 ................................. 89.103

89.104–96 ................................. 89.104

89.105–96 ................................. 89.105

Old

designation

New

designation

89.106–96 ................................. 89.106

89.107–96 ................................. 89.107

89.108–96 ................................. 89.108

89.109–96 ................................. 89.109

89.110–96 ................................. 89.110

89.111–96 ................................. 89.111

89.112–96 ................................. 89.112

89.113–96 ................................. 89.113

89.114–96 ................................. 89.114

89.115–96 ................................. 89.115

89.116–96 ................................. 89.116

89.117–96 ................................. 89.117

89.118–96 ................................. 89.118

89.119–96 ................................. 89.119

89.120–96 ................................. 89.120

89.121–96 ................................. 89.121

89.122–96 ................................. 89.122

89.123–96 ................................. 89.123

89.124–96 ................................. 89.124

89.125–96 ................................. 89.125

89.126–96 ................................. 89.126

89.127–96 ................................. 89.127

89.128–96 ................................. 89.128

89.129–96 ................................. 89.129

89.201–96 ................................. 89.201

89.202–96 ................................. 89.202

89.203–96 ................................. 89.203

89.204–96 ................................. 89.204

89.205–96 ................................. 89.205

89.206–96 ................................. 89.206

89.207–96 ................................. 89.207

89.208–96 ................................. 89.208

89.209–96 ................................. 89.209

89.210–96 ................................. 89.210

89.211–96 ................................. 89.211

89.212–96 ................................. 89.212

89.301–96 ................................. 89.301

89.302–96 ................................. 89.302

89.303–96 ................................. 89.303

89.304–96 ................................. 89.304

89.305–96 ................................. 89.305

89.306–96 ................................. 89.306

89.307–96 ................................. 89.307

89.308–96 ................................. 89.308

89.309–96 ................................. 89.309

89.310–96 ................................. 89.310

89.311–96 ................................. 89.311

89.312–96 ................................. 89.312

89.313–96 ................................. 89.313

89.314–96 ................................. 89.314

89.315–96 ................................. 89.315

89.316–96 ................................. 89.316

89.317–96 ................................. 89.317

89.318–96 ................................. 89.318

89.319–96 ................................. 89.319

89.320–96 ................................. 89.320

89.321–96 ................................. 89.321

89.322–96 ................................. 89.322

89.323–96 ................................. 89.323

89.324–96 ................................. 89.324

89.325–96 ................................. 89.325

89.326–96 ................................. 89.326

89.327–96 ................................. 89.327

89.328–96 ................................. 89.328

89.329–96 ................................. 89.329

89.330–96 ................................. 89.330

89.331–96 ................................. 89.331

89.401–96 ................................. 89.401

89.402–96 ................................. 89.402

89.403–96 ................................. 89.403

89.404–96 ................................. 89.404

89.405–96 ................................. 89.405

89.406–96 ................................. 89.406
56996 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

Old

designation

New

designation

89.407–96 ................................. 89.407

89.408–96 ................................. 89.408

89.409–96 ................................. 89.409

89.410–96 ................................. 89.410

89.411–96 ................................. 89.411

89.412–96 ................................. 89.412

89.413–96 ................................. 89.413

89.414–96 ................................. 89.414

89.415–96 ................................. 89.415

89.416–96 ................................. 89.416

89.417–96 ................................. 89.417

89.418–96 ................................. 89.418

89.419–96 ................................. 89.419

89.420–96 ................................. 89.420

89.421–96 ................................. 89.421

89.422–96 ................................. 89.422

89.423–96 ................................. 89.423

89.424–96 ................................. 89.424

89.425–96 ................................. 89.425

89.501–96 ................................. 89.501

89.502–96 ................................. 89.502

89.503–96 ................................. 89.503

89.504–96 ................................. 89.504

89.505–96 ................................. 89.505

89.506–96 ................................. 89.506

89.507–96 ................................. 89.507

89.508–96 ................................. 89.508

89.509–96 ................................. 89.509

89.510–96 ................................. 89.510

89.511–96 ................................. 89.511

89.512–96 ................................. 89.512

89.513–96 ................................. 89.513

89.514–96 ................................. 89.514

89.515–96 ................................. 89.515

89.516–96 ................................. 89.516

89.601–96 ................................. 89.601

89.602–96 ................................. 89.602

89.603–96 ................................. 89.603

89.604–96 ................................. 89.604

89.605–96 ................................. 89.605

89.606–96 ................................. 89.606

89.607–96 ................................. 89.607

89.608–96 ................................. 89.608

89.609–96 ................................. 89.609

89.610–96 ................................. 89.610

89.611–96 ................................. 89.611

89.612–96 ................................. 89.612

89.613–96 ................................. 89.613

9. In part 89, all internal section

references are revised as indicated in

the above redesignation table.

Subpart A—[Amended]

10. Section 89.1 is amended by

revising paragraphs (a) and (b)(4), by

removing the word ‘‘and’’ at the end of

paragraph (b)(3), and adding paragraph

(b)(5), to read as follows:

§ 89.1 Applicability.

(a) This part applies to nonroad

compression-ignition engines.

(b) * * *

(4) Engines used in marine vessels as

defined in the General Provisions of the

United States Code, 1 U.S.C. 3 , if those

engines have a rated power at or above

37 kW; and

(5) Engines with a per cylinder

displacement of less than 50 cubic

centimeters.

11. Section 89.2 is amended by

revising the definition of Nonroad

vehicle or nonroad equipment

manufacturer, removing the definition

of Nonroad compression-ignition engine

and adding new definitions in

alphabetical order to read as follows:

§ 89.2 Definitions.

* * * * *

Auxiliary marine diesel engine means

a marine diesel engine that is not a

propulsion marine diesel engine.

Blue Sky Series engine means a

nonroad engine meeting the

requirements of § 89.112(f).

* * * * *

Compression-ignition means relating

to a type of engine with operating

characteristics significantly similar to

the theoretical Diesel combustion cycle.

The non-use of a throttle to regulate

intake air flow for controlling power

during normal operation is indicative of

a compression-ignition engine. This

definition is applicable beginning

January 1, 2000.

Constant-speed engine means an

engine that is governed to operate only

at rated speed.

Crankcase emissions means airborne

substances emitted to the atmosphere

from any portion of the engine

crankcase ventilation or lubrication

systems.

* * * * *

Exhaust gas recirculation means an

emission control technology that

reduces emissions by routing exhaust

gases that had been exhausted from the

combustion chamber(s) back into the

engine to be mixed with incoming air

prior to or during combustion. The use

of valve timing to increase the amount

of residual exhaust gas in the

combustion chamber(s) that is mixed

with incoming air prior to or during

combustion is not considered to be

exhaust gas recirculation for the

purposes of this part.

* * * * *

Full load governed speed is the

maximum full load speed as specified

by the manufacturer in the sales and

service literature and certification

application. This speed is the highest

engine speed with an advertised power

greater than zero.

* * * * *

Intermediate speed means peak

torque speed if peak torque speed

occurs from 60 to 75 percent of rated

speed. If peak torque speed is less than

60 percent of rated speed, intermediate

speed means 60 percent of rated speed.

If peak torque speed is greater than 75

percent of rated speed, intermediate

speed means 75 percent of rated speed.

Marine diesel engine means a

compression-ignition engine that is

intended to be installed on a vessel.

* * * * *

Nonroad vehicle or nonroad

equipment manufacturer means any

person engaged in the manufacturing or

assembling of new nonroad vehicles or

equipment or importing such vehicles

or equipment for resale, or who acts for

and is under the control of any such

person in connection with the

distribution of such vehicles or

equipment. A nonroad vehicle or

equipment manufacturer does not

include any dealer with respect to new

nonroad vehicles or equipment received

by such person in commerce. A nonroad

vehicle or equipment manufacturer does

not include any person engaged in the

manufacturing or assembling of new

nonroad vehicles or equipment who

does not install an engine as part of that

manufacturing or assembling process.

All nonroad vehicle or equipment

manufacturing entities that are under

the control of the same person are

considered to be a single nonroad

vehicle or nonroad equipment

manufacturer.

* * * * *

Post-manufacture marinizer means a

person who produces a marine diesel

engine by substantially modifying a

certified or uncertified complete or

partially complete engine, and is not

controlled by the manufacturer of the

base engine or by an entity that also

controls the manufacturer of the base

engine. For the purpose of this

definition, ‘‘substantially modify’’

means changing an engine in a way that

could change engine emission

characteristics.

* * * * *

Propulsion marine diesel engine

means a marine diesel engine that is

intended to move a vessel through the

water or direct the movement of a

vessel.

Rated speed is the maximum full load

governed speed for governed engines

and the speed of maximum horsepower

for ungoverned engines.

Specific emissions means emissions

expressed on the basis of observed brake

power, using units of g/kW-hr. Observed

brake power measurement includes

accessories on the engine if these

accessories are required for running an

emission test (except for the cooling

fan). When it is not possible to test the

engine in the gross conditions, for

example, if the engine and transmission

form a single integral unit, the engine
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56997

may be tested in the net condition.

Power corrections from net to gross

conditions will be allowed with prior

approval of the Administrator.

* * * * *

Tier 1 engine means an engine subject

to the Tier 1 emission standards listed

in § 89.112(a).

Tier 2 engine means an engine subject

to the Tier 2 emission standards listed

in § 89.112(a).

Tier 3 engine means an engine subject

to the Tier 3 emission standards listed

in § 89.112(a).

* * * * *

U.S.-directed production volume

means the number of nonroad

equipment, vehicle, or marine diesel

engine units produced by a

manufacturer for which the

manufacturer has reasonable assurance

that sale was or will be made to ultimate

purchasers in the United States.

* * * * *

Vessel has the meaning given to it in

1 U.S.C. 3.

12. Section 89.3 is amended by

adding new acronyms in alphabetical

order to read as follows:

§ 89.3 Acronyms and abbreviations.

* * * * *

EGR Exhaust gas recirculation.

* * * * *

NMHC Nonmethane hydrocarbon.

* * * * *

PM Particulate matter.

* * * * *

THC Total hydrocarbon.

* * * * *

§ 89.4 [Removed and Reserved]

13. Remove and reserve § 89.4.

14. Section 89.6 is amended by

revising the last sentence in paragraph

(b)(1) introductory text and the table in

paragraph (b)(1) to read as follows:

§ 89.6 Reference materials.

* * * * *

(b) * * *

(1) * * * Copies of these materials

may be obtained from American Society

for Testing and Materials, 100 Barr

Harbor Drive, West Conshohocken, PA

19428–2959.

Document number and name 40 CFR part 89 reference

ASTM D86–97:

‘‘Standard Test Method for Distillation of Petroleum Products at Atmospheric Pressure’’ ..................................... Appendix A to Subpart D.

ASTM D93–97:

‘‘Standard Test Methods for Flash Point by Pensky-Martens Closed Cup Tester’’ ............................................... Appendix A to Subpart D.

ASTM D129–95:

‘‘Standard Test Method for Sulfur in Petroleum Products (General Bomb Method)’’ ............................................. Appendix A to Subpart D.

ASTM D287–92:

‘‘Standard Test Method for API Gravity of Crude Petroleum and Petroleum Products’’ (Hydrometer Method) .... Appendix A to Subpart D

ASTM D445–97:

‘‘Standard Test Method for Kinematic Viscosity of Transparent and Opaque Liquids (the Calculation of Dynamic Viscosity)’’.Appendix A to Subpart D.

ASTM D613–95:

‘‘Standard Test Method for Cetane Number of Diesel Fuel Oil’’ ............................................................................ Appendix A to Subpart D.

ASTM D1319–98:

‘‘Standard Test Method for Hydrocarbon Types in Liquid Petroleum Products by Fluorescent Indicator Adsorption’’.Appendix A to Subpart D.

ASTM D2622–98:

‘‘Standard Test Method for Sulfur in Petroleum Products by Wavelength Dispersive X-ray Fluorescence Spectrometry’’.Appendix A to Subpart D.

ASTM D5186–96:

‘‘Standard Test Method for ‘‘Determination of the Aromatic Content and Polynuclear Aromatic Content of Diesel Fuels and Aviation Tubine Fuels By Supercritical Fluid Chromatography’’.Appendix A to Subpart D.

ASTM E29–93a:

‘‘Standard Practice for Using Significant Digits in Test Data to Determine Conformance with Specifications’’ .... 89.120; 89.207; 89.509.

* * * * *

Subpart B—[Amended]

15. The newly designated § 89.102 is

amended by revising the section

heading and paragraph (a) and adding

new paragraphs (c), (d), (e), (f), (g), and

(h) to read as follows:

§ 89.102 Effective dates, optional

inclusion, flexibility for equipment

manufacturers.

(a) This subpart applies to all engines

described in § 89.101 with the following

power rating and manufactured after the

following dates:

(1) Less than 19 kW and

manufactured on or after January 1,

2000;

(2) Greater than or equal to 19 kW but

less than 37 kW and manufactured on

or after January 1, 1999;

(3) Greater than or equal to 37 kW but

less than 75 kW and manufactured on

or after January 1, 1998;

(4) Greater than or equal to 75 kW but

less than 130 kW and manufactured on

or after January 1, 1997;

(5) Greater than or equal to 130 kW

but less than or equal to 560 kW and

manufactured on or after January 1,

1996;

(6) Greater than 560 kW and

manufactured on or after January 1,

2000.

* * * * *

(c) Engines meeting the voluntary

standards described in § 89.112(f) may

be designated as Blue Sky Series

engines through the 2004 model year.

(d) Implementation flexibility for

equipment and vehicle manufacturers

and post-manufacture marinizers.

Nonroad equipment and vehicle

manufacturers and post-manufacture

marinizers may take any of the

otherwise prohibited actions identified

in § 89.1003(a)(1) with respect to

nonroad equipment and vehicles and

marine diesel engines, subject to the

requirements of paragraph (e) of this

section. The following allowances apply

separately to each engine power

category subject to standards under

§ 89.112:

(1) Percent-of-production allowances.

(i) Equipment rated at or above 37 kW.

For nonroad equipment and vehicles

with engines rated at or above 37 kW,

a manufacturer may take any of the

actions identified in § 89.1003(a)(1) for

a portion of its U.S.-directed production

volume of such equipment and vehicles

during the seven years immediately

following the date on which Tier 2

engine standards first apply to engines
56998 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

used in such equipment and vehicles,

provided that the seven-year sum of

these portions in each year, as expressed

as a percentage for each year, does not

exceed 80, and provided that all such

equipment and vehicles or equipment

contain Tier 1 engines;

(ii) Equipment rated under 37 kW. For

nonroad equipment and vehicles and

marine diesel engines with engines

rated under 37 kW, a manufacturer may

take any of the actions identified in

§ 89.1003(a)(1) for a portion of its U.S.-

directed production volume of such

equipment and vehicles during the

seven years immediately following the

date on which Tier 1 engine standards

first apply to engines used in such

equipment and vehicles, provided that

the seven-year sum of these portions in

each year, as expressed as a percentage

for each year, does not exceed 80.

(2) Small volume allowances. A

nonroad equipment or vehicle

manufacturer or post-manufacture

marinizer may exceed the production

percentages in paragraph (d)(1) of this

section, provided that in each regulated

power category the manufacturer’s total

of excepted nonroad equipment and

vehicles and marine diesel engines:

(i) Over the years in which the

percent-of-production allowance applies

does not exceed 100 units times the

number of years in which the percentof-production allowance applies; and

(ii) Does not exceed 200 units in any

year; and

(iii) Does not use engines from more

than one engine family, or, for excepted

equipment vehicles, and marine diesel

engines using engines not belonging to

any engine family, from more than one

engine manufacturer.

(3) Inclusion of previous-tier engines.

Nonroad equipment and vehicles and

marine diesel engines built with

previous tier or noncertified engines

under the existing inventory provisions

of § 89.1003(b)(4) need not be included

in determining compliance with

paragraphs (d)(1) and (d)(2) of this

section.

(e) Recordkeeping and calculation to

verify compliance. The following shall

apply to nonroad equipment or vehicle

manufacturers and post-manufacture

marinizers who produce excepted

equipment or vehicles or marine diesel

engines under the provisions of

paragraph (d) of this section:

(1) For each power category in which

excepted nonroad equipment or

vehicles or marine diesel engines are

produced, a calculation to verify

compliance with the requirements of

paragraph (d) of this section shall be

made by the nonroad equipment or

vehicle manufacturer or postmanufacture marinizer. This calculation

shall be made no later than December 31

of the year following the last year in

which allowances are used, and shall be

based on actual production information

from the subject years. If both the

percent-of-production and small volume

allowances have been exceeded, then

the manufacturer is in violation of

section 203 of the Act and § 89.1003,

except as provided under paragraphs (f)

and (h) of this section.

(2) A nonroad equipment or vehicle

manufacturer or post-manufacture

marinizer shall keep records of all

nonroad equipment and vehicles and

marine diesel engines excepted under

the provisions of paragraph (d) of this

section, for each power category in

which exceptions are taken. These

records shall include equipment and

engine model numbers, serial numbers,

and dates of manufacture, and engine

rated power. In addition, the

manufacturer shall keep records

sufficient to demonstrate the

verifications of compliance required in

paragraph (e)(1) of this section. All

records shall be kept until at least two

full years after the final year in which

allowances are available for each power

category, and shall be made available to

EPA upon request.

(f) Hardship relief. Nonroad

equipment and vehicle manufacturers

and post-manufacture marinizers may

take any of the otherwise prohibited

actions identified in § 89.1003(a)(1) if

approved by the Administrator, and

subject to the following requirements:

(1) Application for relief must be

submitted to the Engine Programs and

Compliance Division of the EPA in

writing prior to the earliest date in

which the applying manufacturer would

be in violation of § 89.1003. The

manufacturer must submit evidence

showing that the requirements for

approval have been met.

(2) The applying manufacturer must

not be the manufacturer of the engines

used in the equipment for which relief

is sought. This requirement does not

apply to post-manufacture marinizers.

(3) The conditions causing the

impending violation must not be

substantially the fault of the applying

manufacturer.

(4) The conditions causing the

impending violation must be such that

the applying manufacturer will

experience serious economic hardship if

relief is not granted.

(5) The applying manufacturer must

demonstrate that no allowances under

paragraph (d) of this section will be

available to avoid the impending

violation.

(6) Any relief granted must begin

within one year after the

implementation date of the standard

applying to the engines being used in

the equipment, or to the marine diesel

engines, for which relief is requested,

and may not exceed one year in

duration.

(7) The Administrator may impose

other conditions on the granting of relief

including provisions to recover the lost

environmental benefit.

(g) Allowance for the production of

engines. Engine manufacturers may take

any of the otherwise prohibited actions

identified in § 89.1003(a)(1) with regard

to uncertified engines or Tier 1 engines,

as appropriate, if the engine

manufacturer has received written

assurance from the equipment

manufacturer that the engine is required

to meet the demand for engines created

under paragraph (d), (f), or (h) of this

section.

(h) Alternative Flexibility for PostManufacture Marinizers. Postmanufacture marinizers may elect to

delay the effective date of the Tier 1

standards in § 89.112 for marine diesel

engines rated under 37 kW by one year,

instead of using the provisions of

paragraphs (d) and (f) of this section.

Post-manufacture marinizers wishing to

take advantage of this provision must

inform the Director of the Engine

Programs and Compliance Division of

their intent to do so in writing before

the date that the standards would

otherwise take effect.

16. The newly designated § 89.104 is

amended by revising paragraphs (a), (b),

and (c) to read as follows:

§ 89.104 Useful life, recall, and warranty

periods.

(a) The useful life is based on the

rated power and rated speed of the

engine.

(1) For all engines rated under 19 kW,

and for constant speed engines rated

under 37 kW with rated speeds greater

than or equal to 3,000 rpm, the useful

life is a period of 3,000 hours or five

years of use, whichever first occurs.

(2) For all other engines rated at or

above 19 kW and under 37 kW, the

useful life is a period of 5,000 hours or

seven years of use, whichever first

occurs.

(3) For all engines rated at or above 37

kW, the useful life is a period of 8,000

hours of operation or ten years of use,

whichever first occurs.

(b) Engines are subject to recall testing

for a period based on the rated power

and rated speed of the engines.

However, in a recall, engines in the

subject class or category would be
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 56999

subject to recall regardless of actual

years or hours of operation.

(1) For all engines rated under 19 kW,

and for constant speed engines rated

under 37 kW with rated speeds greater

than or equal to 3,000 rpm, the engines

are subject to recall testing for a period

of 2,250 hours or four years of use,

whichever first occurs.

(2) For all other engines rated at or

above 19 kW and under 37 kW, the

engines are subject to recall for a period

of 3,750 hours or five years of use,

whichever first occurs.

(3) For all engines rated at or above 37

kW, the engines are subject to recall for

a period of 6,000 hours of operation or

seven years of use, whichever first

occurs.

(c) The warranty periods for

warranties imposed by the Clean Air

Act and § 89.1007 for all engines rated

under 19 kW, and for constant speed

engines rated under 37 kW with rated

speeds greater than or equal to 3,000

rpm, are 1,500 hours of operation or two

years of use, whichever first occurs. For

all other engines, the warranty periods

for warranties imposed by the Clean Air

Act and § 89.1007 are 3,000 hours of

operation or five years of use, whichever

first occurs.

* * * * *

17. The newly designated § 89.109 is

revised to read as follows:

§ 89.109 Maintenance instructions and

minimum allowable maintenance intervals.

(a) The manufacturer must furnish or

cause to be furnished to the ultimate

purchaser of each new nonroad engine

subject to standards under this part

written instructions for the maintenance

needed to ensure proper functioning of

the emission control system. Paragraphs

(b) through (h) of this section do not

apply to Tier 1 engines with rated

power at or above 37 kW.

(b) Maintenance performed on

equipment, engines, subsystems or

components used to determine exhaust

emission deterioration factors is

classified as either emission-related or

nonemission-related and each of these

can be classified as either scheduled or

unscheduled. Further, some emissionrelated maintenance is also classified as

critical emission-related maintenance.

(c) This paragraph (c) specifies

emission-related scheduled

maintenance for purposes of obtaining

durability data for nonroad engines. The

maintenance intervals specified below

are minimum intervals:

(1) All emission-related scheduled

maintenance for purposes of obtaining

durability data must occur at the same

or longer hours of use intervals as those

specified in the manufacturer’s

maintenance instructions furnished to

the ultimate purchaser of the engine

under paragraph (a) of this section. This

maintenance schedule may be updated

as necessary throughout the testing of

the engine, provided that no

maintenance operation is deleted from

the maintenance schedule after the

operation has been performed on the

test equipment or engine.

(2) Any emission-related maintenance

which is performed on equipment,

engines, subsystems, or components

must be technologically necessary to

ensure in-use compliance with the

emission standards. The manufacturer

must submit data which demonstrate to

the Administrator that all of the

emission-related scheduled

maintenance which is to be performed

is technologically necessary. Scheduled

maintenance must be approved by the

Administrator prior to being performed

or being included in the maintenance

instructions provided to the purchasers

under paragraph (a) of this section.

(i) The Administrator may require

longer maintenance intervals than those

listed in paragraphs (c)(3) and (c)(4) of

this section where the listed intervals

are not technologically necessary.

(ii) The Administrator may allow

manufacturers to specify shorter

maintenance intervals than those listed

in paragraphs (c)(3) and (c)(4) of this

section where technologically necessary

for engines rated under 19 kW, or for

constant speed engines rated under 37

kW with rated speeds greater than or

equal to 3,000 rpm.

(3) The adjustment, cleaning, repair,

or replacement of items listed in

paragraphs (c)(3)(i) through (c)(3)(iii) of

this section shall occur at 1,500 hours

of use and at 1,500-hour intervals

thereafter.

(i) Exhaust gas recirculation systemrelated filters and coolers.

(ii) Positive crankcase ventilation

valve.

(iii) Fuel injector tips (cleaning only).

(4) The adjustment, cleaning and

repair of items in paragraphs (c)(4)(i)

through (c)(4)(vii) of this section shall

occur at 3,000 hours of use and at 3,000-

hour intervals thereafter for nonroad

compression-ignition engines rated

under 130 kW, or at 4,500-hour intervals

thereafter for nonroad compressionignition engines rated at or above 130

kW.

(i) Fuel injectors.

(ii) Turbocharger.

(iii) Electronic engine control unit and

its associated sensors and actuators.

(iv) Particulate trap or trap-oxidizer

system (including related components).

(v) Exhaust gas recirculation system

(including all related control valves and

tubing) except as otherwise provided in

paragraph (c)(3)(i) of this section.

(vi) Catalytic convertor.

(vii) Any other add-on emissionrelated component (i.e., a component

whose sole or primary purpose is to

reduce emissions or whose failure will

significantly degrade emission control

and whose function is not integral to the

design and performance of the engine).

(d) Scheduled maintenance not

related to emissions which is reasonable

and technologically necessary (e.g., oil

change, oil filter change, fuel filter

change, air filter change, cooling system

maintenance, adjustment of idle speed,

governor, engine bolt torque, valve lash,

injector lash, timing, lubrication of the

exhaust manifold heat control valve,

etc.) may be performed on durability

vehicles at the least frequent intervals

recommended by the manufacturer to

the ultimate purchaser, (e.g., not the

intervals recommended for severe

service).

(e) Adjustment of engine idle speed

on emission data engines may be

performed once before the low-hour

emission test point. Any other engine,

emission control system, or fuel system

adjustment, repair, removal,

disassembly, cleaning, or replacement

on emission data vehicles shall be

performed only with advance approval

of the Administrator.

(f) Equipment, instruments, or tools

may not be used to identify

malfunctioning, maladjusted, or

defective engine components unless the

same or equivalent equipment,

instruments, or tools will be available to

dealerships and other service outlets

and:

(1) Are used in conjunction with

scheduled maintenance on such

components; or

(2) Are used subsequent to the

identification of a vehicle or engine

malfunction, as provided in paragraph

(e) of this section for emission data

engines; or

(3) Specifically authorized by the

Administrator.

(g) All test data, maintenance reports,

and required engineering reports shall

be compiled and provided to the

Administrator in accordance with

§ 89.124.

(h)(1) The components listed in

paragraphs (h)(1)(i) through (h)(1)(vi) of

this section are defined as critical

emission-related components.

(i) Catalytic converter.

(ii) Electronic engine control unit and

its associated sensors and actuators.

(iii) Exhaust gas recirculation system

(including all related filters, coolers,

control valves, and tubing).
57000 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(iv) Positive crankcase ventilation

valve.

(v) Particulate trap or trap-oxidizer

system.

(vi) Any other add-on emissionrelated component (i.e., a component

whose sole or primary purpose is to

reduce emissions or whose failure will

significantly degrade emission control

and whose function is not integral to the

design and performance of the engine).

(2) All critical emission-related

scheduled maintenance must have a

reasonable likelihood of being

performed in use. The manufacturer

must show the reasonable likelihood of

such maintenance being performed inuse. Critical emission-related scheduled

maintenance items which satisfy one of

the conditions defined in paragraphs

(h)(2)(i) through (h)(2)(vi) of this section

will be accepted as having a reasonable

likelihood of being performed in use.

(i) Data are presented which establish

for the Administrator a connection

between emissions and vehicle

performance such that as emissions

increase due to lack of maintenance,

vehicle performance will

simultaneously deteriorate to a point

unacceptable for typical operation.

(ii) Survey data are submitted which

adequately demonstrate to the

Administrator with an 80 percent

confidence level that 80 percent of such

engines already have this critical

maintenance item performed in-use at

the recommended interval(s).

(iii) A clearly displayed visible signal

system approved by the Administrator

is installed to alert the equipment

operator that maintenance is due. A

signal bearing the message

‘‘maintenance needed’’ or ‘‘check

engine,’’ or a similar message approved

by the Administrator, shall be actuated

at the appropriate usage point or by

component failure. This signal must be

continuous while the engine is in

operation and not be easily eliminated

without performance of the required

maintenance. Resetting the signal shall

be a required step in the maintenance

operation. The method for resetting the

signal system shall be approved by the

Administrator. The system must not be

designed to deactivate upon the end of

the useful life of the engine or

thereafter.

(iv) A manufacturer may desire to

demonstrate through a survey that a

critical maintenance item is likely to be

performed without a visible signal on a

maintenance item for which there is no

prior in-use experience without the

signal. To that end, the manufacturer

may in a given model year market up to

200 randomly selected vehicles per

critical emission-related maintenance

item without such visible signals, and

monitor the performance of the critical

maintenance item by the owners to

show compliance with paragraph

(h)(2)(ii) of this section. This option is

restricted to two consecutive model

years and may not be repeated until any

previous survey has been completed. If

the critical maintenance involves more

than one engine family, the sample will

be sales weighted to ensure that it is

representative of all the families in

question.

(v) The manufacturer provides the

maintenance free of charge, and clearly

informs the customer that the

maintenance is free in the instructions

provided under paragraph (a) of this

section.

(vi) The manufacturer uses any other

method which the Administrator

approves as establishing a reasonable

likelihood that the critical maintenance

will be performed in-use.

(3) Visible signal systems used under

paragraph (h)(2)(iii) of this section are

considered an element of design of the

emission control system. Therefore,

disabling, resetting, or otherwise

rendering such signals inoperative

without also performing the indicated

maintenance procedure is a prohibited

act.

18. The newly designated § 89.110 is

amended by removing ‘‘and’’ at the end

of paragraph (b)(9), by adding a

semicolon at the end of paragraph

(b)(10), and by adding new paragraphs

(b)(11) and (b)(12) to read as follows:

§ 89.110 Emission control information

label.

* * * * *

(b) * * *

(11) Engines belonging to an engine

family that has been certified as a

constant-speed engine using the test

cycle specified in Table 2 of appendix

B to subpart E of this part must contain

the statement on the label: ‘‘constantspeed only’’; and

(12) Engines meeting the voluntary

standards described in § 89.112(f)(1) to

be designated as Blue Sky Series

engines must contain the statement on

the label: ‘‘Blue Sky Series’’.

* * * * *

19. The newly designated § 89.112 is

amended by revising paragraphs (a), (b),

and (d), and adding new paragraphs (e)

and (f) to read as follows:

§ 89.112 Oxides of nitrogen, carbon

monoxide, hydrocarbon, and particulate

matter exhaust emission standards.

(a) Exhaust emission from nonroad

engines to which this subpart is

applicable shall not exceed the

applicable exhaust emission standards

contained in Table 1, as follows:

BILLING CODE 6560–50–P
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BILLING CODE 6560–50–C
57002 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(b) Exhaust emissions of oxides of

nitrogen, carbon monoxide,

hydrocarbon, and nonmethane

hydrocarbon are measured using the

procedures set forth in subpart E of this

part.

* * * * *

(d) In lieu of the NOX standards,

NMHC + NOX standards, and PM

standards specified in paragraph (a) of

this section, manufacturers may elect to

include engine families in the averaging,

banking, and trading program, the

provisions of which are specified in

subpart C of this part. The manufacturer

must set a family emission limit (FEL)

not to exceed the levels contained in

Table 2. The FEL established by the

manufacturer serves as the standard for

that engine family. Table 2 follows:

BILLING CODE 6560–50–P

BILLING CODE 6560–50–C
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57003

(e) Naturally aspirated nonroad

engines to which this subpart is

applicable shall not discharge crankcase

emissions into the ambient atmosphere,

unless such crankcase emissions are

permanently routed into the exhaust

and included in all exhaust emission

measurements. This provision applies to

all Tier 2 engines and later models. This

provision does not apply to engines

using turbochargers, pumps, blowers, or

superchargers for air induction.

(f) The following paragraphs define

the requirements for low-emitting Blue

Sky Series engines:

(1) Voluntary standards. Engines may

be designated ‘‘Blue Sky Series’’ engines

through the 2004 model year by meeting

the voluntary standards listed in Table

3, which apply to all certification and

in-use testing, as follows:

TABLE 3.—VOLUNTARY EMISSION

STANDARDS (G/KW-HR)

Rated Brake

Power (kW) NMHC+NOX PM

kW<8 ....................... 4.6 0.48

8≤kW<19 ................. 4.5 0.48

19≤kW<37 ............... 4.5 0.36

37≤kW<75 ............... 4.7 0.24

75≤kW<130 ............. 4.0 0.18

130≤kW≤560 ........... 4.0 0.12

kW>560 ................... 3.8 0.12

(2) Additional standards. Blue Sky

Series engines are subject to all

provisions that would otherwise apply

under this part, except as specified in

paragraph (f)(3) of this section.

(3) Test procedures. NOX, NMHC, and

PM emissions are measured using the

procedures set forth in 40 CFR part 86,

subpart N, in lieu of the procedures set

forth in subpart E of this part. CO

emissions may be measured using the

procedures set forth either in 40 CFR

part 86, subpart N, or in Subpart E of

this part. Manufacturers may use an

alternate procedure to demonstrate the

desired level of emission control if

approved in advance by the

Administrator. Engines meeting the

requirements to qualify as Blue Sky

Series engines must be capable of

maintaining a comparable level of

emission control when tested using the

procedures set forth in paragraph (c) of

this section and subpart E of this part.

The numerical emission levels

measured using the procedures from

subpart E of this part may be up to 20

percent higher than those measured

using the procedures from 40 CFR part

86, subpart N, and still be considered

comparable.

20. The newly designated § 89.113 is

amended by revising paragraph (b) and

adding new paragraph (c) to read as

follows:

§ 89.113 Smoke emission standard.

* * * * *

(b) Opacity levels are to be measured

and calculated as set forth in 40 CFR

part 86, subpart I. Notwithstanding the

provisions of 40 CFR part 86, subpart I,

two-cylinder nonroad engines may be

tested using an exhaust muffler that is

representative of exhaust mufflers used

with the engines in use.

(c) The following engines are exempt

from the requirements of this section:

(1) Single-cylinder engines;

(2) Propulsion marine diesel engines;

and

(3) Constant-speed engines.

21. The newly designated § 89.114 is

amended by revising the section

heading, paragraph (a) and the heading

of paragraph (b) to read as follows:

§ 89.114 Special and alternate test

procedures.

(a) Special test procedures. The

Administrator may, on the basis of

written application by a manufacturer,

establish special test procedures other

than those set forth in this part, for any

nonroad engine that the Administrator

determines is not susceptible to

satisfactory testing under the specified

test procedures set forth in subpart E of

this part or 40 CFR part 86, subpart I.

(b) Alternate test procedures. * * *

22. The newly designated § 89.116 is

amended by adding a new paragraph (e)

to read as follows:

§ 89.116 Engine families.

* * * * *

(e)(1) This paragraph (e) applies only

to the placement of Tier 1 engines with

power ratings under 37 kW into engine

families. The provisions of paragraphs

(a) through (d) of this section also apply

to these engines. The power categories

referred to in this paragraph (e) are

those for which separate standards or

implementation dates are described in

§ 89.112.

(2) A manufacturer may place engines

with power ratings in one power

category into an engine family

comprised of engines with power

ratings in another power category, and

consider all engines in the engine family

as being in the latter power category for

the purpose of determining compliance

with the standards and other

requirements of this part, subject to

approval in advance by the

Administrator and the following

restrictions:

(i) The engines that have power

ratings outside the engine family’s

power category must constitute less

than half of the engine family’s sales in

each model year for which the engine

family grouping is made; and

(ii) The engines that have power

ratings outside the engine family’s

power category must have power ratings

that are within ten percent of either of

the two power levels that define the

engine family’s power category.

(3) The restrictions described in

paragraphs (e)(2)(i) and (e)(2)(ii) of this

section do not apply if the emissions

standards and other requirements of this

part are at least as stringent for the

engine family’s power category as those

of the other power categories containing

engines in the engine family.

23. The newly designated § 89.117 is

amended by revising paragraph (a) and

adding a new paragraph (d) to read as

follows:

§ 89.117 Test fleet selection.

(a) The manufacturer must select for

testing, from each engine family, the

engine with the most fuel injected per

stroke of an injector, primarily at the

speed of maximum torque and

secondarily at rated speed.

* * * * *

(d) For establishing deterioration

factors, the manufacturer shall select the

engines, subsystems, or components to

be used to determine exhaust emission

deterioration factors for each enginefamily control system combination.

Engines, subsystems, or components

shall be selected so that their emission

deterioration characteristics are

expected to represent those of in-use

engines, based on good engineering

judgment.

24. The newly designated § 89.118 is

amended by revising the section

heading and adding new introductory

text and a new paragraph (e) to read as

follows:

§ 89.118 Deterioration factors and service

accumulation.

This section applies to service

accumulation used to determine

deterioration factors and service

accumulation used to condition test

engines. Paragraphs (a) and (b) of this

section apply only for service

accumulation used to condition test

engines. Paragraph (e) of this section

applies only for service accumulation

used to determine deterioration factors.

Paragraphs (c) and (d) of this section

apply for all service accumulation

required by this part.

* * * * *

(e) This paragraph (e) describes

service accumulation and alternative

requirements for the purpose of

developing deterioration factor.
57004 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(1) Service accumulation on engines,

subsystems, or components selected by

the manufacturer under § 89.117(d). The

manufacturer shall describe the form

and extent of this service accumulation

in the application for certification.

(2) Determination of exhaust emission

deterioration factors. The manufacturer

shall determine the deterioration factors

in accordance with the applicable

provisions of this part based on service

accumulation and related testing,

according to the manufacturer’s

procedures, except as provided in

paragraph (e)(3) of this section.

(3) Alternatives to service

accumulation and testing for the

determination of a deterioration factor.

A written explanation of the

appropriateness of using an alternative

must be included in the application for

certification.

(i) Carryover and carryacross of

durability emission data. In lieu of

testing an emission data or durability

data engine selected under § 89.117(d),

a manufacturer may, with Administrator

approval, use exhaust emission

deterioration data on a similar engine

for which certification to the same

standard has previously been obtained

or for which all applicable data required

under § 89.124 has previously been

submitted. This data must be submitted

in the application for certification.

(ii) Use of on-highway deterioration

data. In the case where a manufacturer

produces a certified on-highway engine

that is similar to the nonroad engine to

be certified, deterioration data from the

on-highway engine may be applied to

the nonroad engine. This application of

deterioration data from an on-highway

engine to a nonroad engine is subject to

Administrator approval, and the

determination of whether the engines

are similar must be based on good

engineering judgment.

(iii) Engineering analysis for

established technologies. (A) In the case

where an engine family uses established

technology, an analysis based on good

engineering practices may be used in

lieu of testing to determine a

deterioration factor for that engine

family, subject to Administrator

approval.

(B) Engines for which the certification

levels are not at or below the Tier 3

NMHC+NOX standards described in

§ 89.112 are considered established

technology, except as provided in

paragraph (e)(3)(iii)(D) of this section.

(C) Manufacturers may petition the

Administrator to consider an engine

with a certification level below the Tier

3 NMHC+NOX standards as established

technology. This petition must be based

on proof that the technology used is not

significantly different than that used on

engines that have certification levels

that are not below the Tier 3

NMHC+NOX levels.

(D) Engines using exhaust gas

recirculation or aftertreatment are

excluded from the provision set forth in

paragraphs (e)(3)(iii)(A) through

(e)(3)(iii)(C) of this section.

(E) The manufacturer shall provide a

written statement to the Administrator

that all data, analyses, test procedures,

evaluations, and other documents, on

which the deterioration factor is based,

are available to the Administrator upon

request.

(iv) Interim provision for engines

rated under 37 kW. For model year 1999

and 2000 engines rated under 37 kW,

manufacturers may determine

deterioration factors based on good

engineering judgement and reasonably

available information. The manufacturer

must maintain and provide to the

Administrator, if requested, all

information used to determine

deterioration factors for these engines.

25. The newly designated § 89.119 is

amended by revising paragraph (d) to

read as follows:

§ 89.119 Emission tests.

* * * * *

(d) The provisions of this paragraph

(d) apply only to Tier 1 nonroad engines

without exhaust aftertreatment rated at

or above 37 kW.

(1) Particulate emission

measurements from Tier 1 nonroad

engines without exhaust aftertreatment

rated at or above 37 kW may be adjusted

to a sulfur content of 0.05 weight

percent.

(2) Adjustments to the particulate

measurement shall be made using the

following equation:

PMadj=PM-[BSFC × 0.0917 × (FSF–

0.0005)]

Where:

PMadj=adjusted measured PM level [g/

Kw-hr].

PM=measured weighted PM level [g/

Kw-hr].

BSFC=measured brake specific fuel

consumption [G/Kw-hr].

FSF=fuel sulfur weight fraction.

(3) Where a manufacturer certifies

using test fuel with a sulfur content less

than or equal to 0.050 weight percent,

EPA shall not use emission data

collected using test fuel with a sulfur

content greater than 0.050 weight

percent to determine compliance with

the Tier 1 PM standards.

(4) Where a manufacturer certifies

using test fuel with a sulfur content

greater than 0.050 weight percent, EPA

shall not use emission data collected

using test fuel with a sulfur content

greater than 0.050 weight percent to

determine compliance with the Tier 1

PM standards, unless EPA adjusts the

PM measurement using the equation

specified in paragraph (d)(2) of this

section.

26. The newly designated § 89.120 is

amended by revising paragraph (c) and

adding paragraph (e) to read as follows:

§ 89.120 Compliance with emission

standards.

* * * * *

(c) For each nonroad engine family,

except Tier 1 engine families with rated

power at or above 37 kW that do not

employ aftertreatment, a deterioration

factor must be determined and applied.

(1) The applicable exhaust emission

standards (or family emission limits, as

appropriate) for nonroad compressionignition engines apply to the emissions

of engines for their useful life.

(2) [Reserved]

(3)(i) This paragraph (c)(3) describes

the procedure for determining

compliance of an engine with emission

standards (or family emission limits, as

appropriate), based on deterioration

factors supplied by the manufacturer.

The NMHC + NOX deterioration factors

shall be established based on the sum of

the pollutants, except as provided in

paragraph (c)(3)(iv) of this section.

When establishing deterioration factors

for NMHC + NOX, a negative

deterioration (emissions decrease from

the official emissions test result) for one

pollutant may not offset deterioration of

the other pollutant.

(ii) Separate emission deterioration

factors, determined by the manufacturer

according to the requirements of

§ 89.118, shall be provided in the

certification application for each enginesystem combination. Separate

deterioration factors shall be established

for each regulated pollutant, except that

a combined NMHC + NOX deterioration

factor shall be established for

compression-ignition nonroad engines

not utilizing aftertreatment technology.

For smoke testing, separate deterioration

factors shall also be established for the

acceleration mode (designated as ‘‘A’’),

the lugging mode (designated as ‘‘B’’),

and peak opacity (designated as ‘‘C’’).

(iii) Compression-ignition nonroad

engines not utilizing aftertreatment

technology (e.g., particulate traps). For

CO, NMHC + NOX, and particulate, the

official exhaust emission results for

each emission data engine at the

selected test point shall be adjusted by

addition of the appropriate deterioration

factor. However, if the deterioration

factor supplied by the manufacturer is
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57005

less than zero, it shall be zero for the

purposes of this paragraph (c)(3)(iii).

(iv) Compression-ignition nonroad

engines utilizing aftertreatment

technology (e.g., particulate traps). For

CO, NMHC + NOX, and particulate, the

official exhaust emission results for

each emission data engine at the

selected test point shall be adjusted by

multiplication by the appropriate

deterioration factor. Separate NMHC

and NOX deterioration factors shall be

applied to the results for these

pollutants prior to combining the

results. If the deterioration factor

supplied by the manufacturer is less

than one, it shall be one for the

purposes of this paragraph (c)(3)(iv).

(v) For acceleration smoke (‘‘A’’),

lugging smoke (‘‘B’’), and peak opacity

(‘‘C’’), the official exhaust emission

results for each emission data engine at

the selected test point shall be adjusted

by the addition of the appropriate

deterioration factor. However if the

deterioration supplied by the

manufacturer is less than zero, it shall

be zero for the purposes of this

paragraph (c)(3)(v).

(vi) The emission values to compare

with the standards (or family emission

limits, as appropriate) shall be the

adjusted emission values of paragraphs

(c)(3)(iii) through (v) of this section,

rounded to the same number of

significant figures as contained in the

applicable standard in accordance with

ASTM E29–93a, for each emission data

engine. This procedure has been

incorporated by reference at § 89.6.

(4) Every test engine of an engine

family must comply with all applicable

standards (or family emission limits, as

appropriate), as determined in

paragraph (c)(3)(vi) of this section,

before any engine in that family will be

certified.

* * * * *

(e) For the purposes of setting an

NMHC + NOX certification level or FEL,

one of the following options shall be

used for the determination of NMHC for

an engine family. The manufacturer

must declare which option is used in its

application for certification of that

engine family.

(1) The manufacturer may assume that

up to two percent of the measured THC

is methane (NMHC = 0.98 × THC).

(2) The manufacturer may measure

NMHC emissions using a method

approved by the Administrator prior to

the start of testing. This option allows

the determination of NMHC emissions

by subtracting measured methane

emissions from measured THC

emissions.

27. The newly designated § 89.124 is

amended by adding paragraph (a)(3) to

read as follows:

§ 89.124 Record retention, maintenance,

and submission.

(a) * * *

(3) Information required to be kept by

the manufacturer in § 89.118(e)(3) for

alternatives to service accumulation and

testing for the determination of a

deterioration factor.

* * * * *

28. The newly designated § 89.125 is

amended by revising paragraph (b) to

read as follows:

§ 89.125 Production engines, annual

report.

* * * * *

(b) The manufacturer must annually,

within 30 days after the end of the

model year, notify the Administrator of

the number of engines produced by

engine family, by gross power, by

displacement, by fuel system, and, for

engines produced under the provision

of § 89.102(g), by engine model and

purchaser (or shipping destination for

engines used by the engine

manufacturer), or by other categories as

the Administrator may require.

29. The newly designated § 89.126 is

amended by revising paragraph (c) to

read as follows:

§ 89.126 Denial, revocation of certificate of

conformity.

* * * * *

(c) If a manufacturer knowingly

commits an infraction specified in

paragraph (b)(1) or (b)(4) of this section,

knowingly commits any other

fraudulent act which results in the

issuance of a certificate of conformity,

or fails to comply with the conditions

specified in § 89.203(d), § 89.206(c),

§ 89.209(c) or § 89.210(g), the

Administrator may deem such

certificate void ab initio.

* * * * *

30. A new § 89.130 is added to

subpart B to read as follows:

§ 89.130 Rebuild practices.

(a) The provisions of this section are

applicable to engines subject to the

standards prescribed in § 89.112 and are

applicable to the process of engine

rebuilding (or rebuilding a portion of an

engine or engine system). This section

does not apply to Tier 1 engines rated

at or above 37 kW. The process of

engine rebuilding generally includes

disassembly, replacement of multiple

parts due to wear, and reassembly, and

also may include the removal of the

engine from the vehicle and other acts

associated with rebuilding an engine.

(b) When rebuilding an engine,

portions of an engine, or an engine

system, there must be a reasonable

technical basis for knowing that the

resultant engine is equivalent, from an

emissions standpoint, to a certified

configuration (i.e., tolerances,

calibrations, specifications), and the

model year(s) of the resulting engine

configuration must be identified. A

reasonable basis would exist if:

(1) Parts installed, whether the parts

are new, used, or rebuilt, are such that

a person familiar with the design and

function of motor vehicle engines would

reasonably believe that the parts

perform the same function with respect

to emission control as the original parts;

and

(2) Any parameter adjustment or

design element change is made only:

(i) In accordance with the original

engine manufacturer’s instructions; or

(ii) Where data or other reasonable

technical basis exists that such

parameter adjustment or design element

change, when performed on the engine

or similar engines, is not expected to

adversely affect in-use emissions.

(c) When an engine is being rebuilt

and remains installed or is reinstalled in

the same equipment, it must be rebuilt

to a configuration of the same or later

model year as the original engine. When

an engine is being replaced, the

replacement engine must be an engine

of (or rebuilt to) a certified configuration

that is equivalent, from an emissions

standpoint, to the engine being

replaced.

(d) At time of rebuild, emissionrelated codes or signals from on-board

monitoring systems may not be erased

or reset without diagnosing and

responding appropriately to the

diagnostic codes, regardless of whether

the systems are installed to satisfy

requirements in § 89.109 or for other

reasons and regardless of form or

interface. Diagnostic systems must be

free of all such codes when the rebuilt

engine is returned to service. Such

signals may not be rendered inoperative

during the rebuilding process.

(e) When conducting a rebuild

without removing the engine from the

equipment, or during the installation of

a rebuilt engine, all critical emissionrelated components listed in 40 CFR

part 86, subpart B, not otherwise

addressed by paragraphs (b) through (d)

of this section must be checked and

cleaned, adjusted, repaired, or replaced

as necessary, following manufacturer

recommended practices.

(f) Records shall be kept by parties

conducting activities included in

paragraphs (b) through (e) of this

section. The records shall include at
57006 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

minimum the hours of operation at time

of rebuild, a listing of work performed

on the engine, and emission-related

control components including a listing

of parts and components used, engine

parameter adjustments, emission-related

codes or signals responded to and reset,

and work performed under paragraph

(e) of this section.

(1) Parties may keep records in

whatever format or system they choose

as long as the records are

understandable to an EPA enforcement

officer or can be otherwise provided to

an EPA enforcement officer in an

understandable format when requested.

(2) Parties are not required to keep

records of information that is not

reasonably available through normal

business practices including

information on activities not conducted

by themselves or information that they

cannot reasonably access.

(3) Parties may keep records of their

rebuilding practices for an engine family

rather than on each individual engine

rebuilt in cases where those rebuild

practices are followed routinely.

(4) Records must be kept for a

minimum of two years after the engine

is rebuilt.

Subpart C—[Amended]

31. The newly designated § 89.203 is

revised to read as follows:

§ 89.203 General provisions.

(a) The averaging, banking, and

trading programs for NOX, NMHC+NOX,

and PM emissions from eligible nonroad

engines are described in this subpart.

Participation in these programs is

voluntary.

(b) Requirements for Tier 1 engines

rated at or above 37 kW. (1) A nonroad

engine family is eligible to participate in

the averaging, banking, and trading

program for NOX emissions and the

banking and trading program for PM

emissions if it is subject to regulation

under subpart B of this part with certain

exceptions specified in paragraph (b)(2)

of this section. No averaging, banking,

and trading program is available for

meeting the Tier 1 HC, CO, or smoke

emission standards specified in subpart

B of this part. No averaging program is

available for meeting the Tier 1 PM

emission standards specified in subpart

B of this part.

(2) Nonroad engines may not

participate in the averaging, banking,

and trading programs if they are

exported or are sold as Blue Sky Series

engines as described in § 89.112(f).

Nonroad engines certified on a special

test procedure under § 89.114(a), may

not participate in the averaging, banking

and trading programs unless the

manufacturer has requested that the

engines be included in the averaging,

banking, and trading programs at the

time the request for the special test

procedure is made and has been granted

approval by the Administrator for

inclusion in the averaging, banking, and

trading programs.

(3) A manufacturer may certify one or

more nonroad engine families at NOX

family emission limits (FELs) above or

below the Tier 1 NOX emission

standard, provided the summation of

the manufacturer’s projected balance of

all NOX credit transactions in a given

model year is greater than or equal to

zero, as determined under § 89.207(a). A

manufacturer may certify one or more

nonroad engine families at PM FELs

below the Tier 2 PM emission standard

that will be applicable to those engine

families.

(i) FELs for NOX may not exceed the

Tier 1 upper limit specified in

§ 89.112(d).

(ii) An engine family certified to an

FEL is subject to all provisions specified

in this part, except that the applicable

FEL replaces the emission standard for

the family participating in the

averaging, banking, and trading

program.

(iii) A manufacturer of an engine

family with a NOX FEL exceeding the

Tier 1 NOX emission standard must

obtain NOX emission credits sufficient

to address the associated credit shortfall

via averaging, banking, or trading.

(iv) An engine family with a NOX FEL

below the applicable Tier 1 standard

may generate emission credits for

averaging, banking, trading, or a

combination thereof. An engine family

with a PM FEL below the Tier 2

standard that will be applicable to that

engine family may generate emission

credits for banking, trading, or a

combination thereof. Emission credits

may not be used to offset an engine

family’s emissions that exceed its

applicable FEL. Credits may not be used

to remedy nonconformity determined by

a Selective Enforcement Audit (SEA) or

by recall (in-use) testing. However, in

the case of an SEA failure, credits may

be used to allow subsequent production

of engines for the family in question if

the manufacturer elects to recertify to a

higher FEL.

(4) NOX credits generated in a given

model year may be used to address

credit shortfalls with other engines

during that model year or in any

subsequent model year except as noted

under paragraph (b)(5)(ii) of this section.

PM credits may be used to address

credit shortfalls with Tier 2 and later

engines greater than or equal to 37 kW

and Tier 1 and later engines less than 37

kW and greater than or equal to 19 kW.

Credits generated in one model year

may not be used for prior model years.

(5) The following provisions apply to

the use of Tier 1 NOX credits for

showing compliance with the Tier 2 or

Tier 3 NMHC+NOX standards.

(i) A manufacturer may use NOX

credits from engines subject to the Tier

1 NOX standard to address NMHC+NOX

credit shortfalls with engines in the

same averaging set subject to Tier 1

NMHC+NOX or Tier 2 NMHC+NOX

emission standards.

(ii) A manufacturer may not use NOX

credits from engines subject to the Tier

1 standards to address NMHC+NOX

credit shortfalls with engines subject to

the Tier 3 NMHC+NOX emission

standards.

(c) Requirements for Tier 2 and later

engines rated at or above 37 kW and

Tier 1 and later engines rated under 37

kW.

(1) A nonroad engine family is eligible

to participate in the averaging, banking,

and trading programs for NMHC+NOX

emissions and PM emissions if it is

subject to regulation under subpart B of

this part with certain exceptions

specified in paragraph (c)(2) of this

section. No averaging, banking, and

trading program is available for meeting

the CO or smoke emission standards

specified in subpart B of this part.

(2) Nonroad engines may not

participate in the averaging, banking,

and trading programs if they are

exported or are sold as Blue Sky Series

engines as described in § 89.112(f).

Nonroad engines certified on a special

test procedure under § 89.114(a), may

not participate in the averaging, banking

and trading programs unless the

manufacturer has requested that the

engines be included in the averaging,

banking, and trading programs at the

time the request for the special test

procedure is made and has been granted

approval by the Administrator for

inclusion in the averaging, banking, and

trading programs.

(3)(i) A manufacturer may certify one

or more nonroad engine families at FELs

above or below the applicable

NMHC+NOX emission standard and PM

emission standard, provided the

summation of the manufacturer’s

projected balance of all NMHC+NOX

credit transactions and the summation

of the manufacturer’s projected balance

of all PM credit transactions in a given

model year in a given averaging set is

greater than or equal to zero, as

determined under § 89.207(b).

(A) FELs for NMHC+NOX and FELs

for PM may not exceed the upper limits

specified in § 89.112(d).
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57007

(B) An engine family certified to an

FEL is subject to all provisions specified

in this part, except that the applicable

FEL replaces the emission standard for

the family participating in the

averaging, banking, and trading

program.

(C) A manufacturer of an engine

family with an FEL exceeding the

applicable emission standard must

obtain emission credits sufficient to

address the associated credit shortfall

via averaging, banking, or trading,

within the restrictions described in

§ 89.204(c) and § 89.206(b)(4).

(D) An engine family with an FEL

below the applicable standard may

generate emission credits for averaging,

banking, trading, or a combination

thereof. Emission credits may not be

used to offset an engine family’s

emissions that exceed its applicable

FEL. Credits may not be used to remedy

nonconformity determined by a

Selective Enforcement Audit (SEA) or

by recall (in-use) testing. However, in

the case of an SEA failure, credits may

be used to allow subsequent production

of engines for the family in question if

the manufacturer elects to recertify to a

higher FEL.

(ii)(A) In lieu of generating credits

under paragraph (c)(3)(i) of this section,

a manufacturer may certify one or more

nonroad engine families rated under 37

kW at family emission limits (FELs)

above or below the applicable

NMHC+NOX emission standard and PM

emission standard. The summation of

the manufacturer’s projected balance of

all NMHC+NOX credit transactions and

the summation of the manufacturer’s

projected balance of all PM credit

transactions in a given model year, as

determined under § 89.207(b), are each

allowed to be less than zero. Separate

calculations shall be required for the

following two categories of engines:

engines rated under 19 kW and engines

rated at or above 19 kW and under 37

kW.

(B) For each calendar year a negative

credit balance exists as of December 31,

a penalty equal to ten percent of the

negative credit balance as of December

31 of the calendar year shall be added

to the negative credit balance. The

resulting negative credit balance shall

be carried into the next calendar year.

(C) For engines rated under 19 kW, a

manufacturer will be allowed to carry

over a negative credit balance until

December 31, 2003. For engines rated at

or above 19 kW and under 37 kW, a

manufacturer will be allowed to carry

over a negative credit balance until

December 31, 2002. As of these dates,

the summation of the manufacturer’s

projected balance of all NMHC+NOX

credit transactions and the summation

of the manufacturer’s projected balance

of all PM credit transactions must each

be greater than or equal to zero.

(D) FELs for NMHC+NOX and FELs

for PM may not exceed the upper limits

specified in § 89.112(d).

(E) An engine family certified to an

FEL is subject to all provisions specified

in this part, except that the applicable

NMHC+NOX FEL or PM FEL replaces

the NMHC+NOX emission standard or

PM emission standard for the family

participating in the averaging and

banking program.

(F) A manufacturer of an engine

family with an FEL exceeding the

applicable emission standard must

obtain emission credits sufficient to

address the associated credit shortfall

via averaging or banking. The exchange

of emission credits generated under this

program with other nonroad engine

manufacturers in trading is not allowed.

(G) An engine family with an FEL

below the applicable standard may

generate emission credits for averaging,

banking, or a combination thereof.

Emission credits may not be used to

offset an engine family’s emissions that

exceed its applicable FEL. Credits may

not be used to remedy nonconformity

determined by a Selective Enforcement

Audit (SEA) or by recall (in-use) testing.

However, in the case of an SEA failure,

credits may be used to allow subsequent

production of engines for the family in

question if the manufacturer elects to

recertify to a higher FEL.

(4)(i) Except as noted in paragraphs

(c)(4)(ii), (c)(4)(iii), and (c)(4)(iv) of this

section, credits generated in a given

model year may be used during that

model year or used in any subsequent

model year. Except as allowed under

paragraph (c)(3)(ii) of this section,

credits generated in one model year may

not be used for prior model years.

(ii) Credits generated from engines

rated under 19 kW prior to the

implementation date of the applicable

Tier 2 standards, shall expire on

December 31, 2007.

(iii) Credits generated from engines

rated under 19 kW under the provisions

of paragraph (c)(3)(ii) shall expire on

December 31, 2003.

(iv) Credits generated from engines

rated at or above 19 kW and under 37

kW under the provisions of paragraph

(c)(3)(ii) of this section shall expire on

December 31, 2002.

(5) Except as provided in paragraph

(b)(3) of this section, engine families

may not generate credits for one

pollutant while also using credits for

another pollutant in the same model

year.

(d) Manufacturers must demonstrate

compliance under the averaging,

banking, and trading programs for a

particular model year within 270 days

of the end of the model year. Except as

allowed under paragraph (c)(3)(ii) of

this section, manufacturers that have

certified engine families to FELs above

the applicable emission standards and

do not have sufficient emission credits

to offset the difference between the

emission standards and the FEL for such

engine families will be in violation of

the conditions of the certificate of

conformity for such engine families. The

certificates of conformity may be voided

ab initio under § 89.126(c) for those

engine families.

32. The newly designated § 89.204 is

revised to read as follows:

§ 89.204 Averaging.

(a) Requirements for Tier 1 engines

rated at or above 37 kW. A manufacturer

may use averaging to offset an emission

exceedance of a nonroad engine family

caused by a NOX FEL above the

applicable emission standard. NOX

credits used in averaging may be

obtained from credits generated by

another engine family in the same

model year, credits banked in a previous

model year, or credits obtained through

trading.

(b) Requirements for Tier 2 and later

engines rated at or above 37 kW and

Tier 1 and later engines rated under 37

kW. A manufacturer may use averaging

to offset an emission exceedance of a

nonroad engine family caused by an

NMHC+NOX FEL or a PM FEL above the

applicable emission standard. Credits

used in averaging may be obtained from

credits generated by another engine

family in the same model year, credits

banked in previous model years that

have not expired, or credits obtained

through trading. The use of credits shall

be within the restrictions described in

paragraph (c) of this section,

§ 89.206(b)(4) and § 89.203(b)(5)(ii).

(c) Averaging sets for emission credits.

The averaging and trading of NOX

emission credits, NMHC + NOX

emission credits, and PM emissions

credits will only be allowed between

engine families in the same averaging

set. The averaging sets for the averaging

and trading of NOX emission credits,

NMHC + NOX emission credits, and PM

emission credits for nonroad engines are

defined as follows:

(1) Eligible engines rated at or above

19 kW, other than marine diesel

engines, constitute an averaging set.

(2) Eligible engines rated under 19

kW, other than marine diesel engines,

constitute an averaging set.
57008 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(3) Marine diesel engines rated at or

above 19 kW constitute an averaging set.

Emission credits generated from marine

diesel engines rated at or above 19 kW

may be used to address credit shortfalls

for eligible engines rated at or above 19

kW other than marine diesel engines.

(4) Marine diesel engines rated under

19 kW constitute an averaging set.

Emission credits generated from marine

diesel engines rated under 19 kW may

be used to address credit shortfalls for

eligible engines rated under 19 kW other

than marine diesel engines.

33. The newly designated § 89.205 is

revised to read as follows:

§ 89.205 Banking.

(a) Requirements for Tier 1 engines

rated at or above 37 kW. (1) A

manufacturer of a nonroad engine

family with a NOX FEL below the

applicable standard for a given model

year may bank credits in that model

year for use in averaging and trading in

any subsequent model year.

(2) A manufacturer of a nonroad

engine family may bank NOX credits up

to one calendar year prior to the

effective date of mandatory certification.

Such engines must meet the

requirements of subparts A, B, D, E, F,

G, H, I, J, and K of this part.

(3)(i) A manufacturer of a nonroad

engine family may bank PM credits from

Tier 1 engines under the provisions

specified in § 89.207(b) for use in

averaging and trading in the Tier 2 or

later timeframe.

(ii) Such engine families are subject to

all provisions specified in subparts A, B,

D, E, F, G, H, I, J, and K of this part,

except that the applicable PM FEL

replaces the PM emission standard for

the family participating in the banking

and trading program.

(b) Requirements for Tier 2 and later

engines rated at or above 37 kW and

Tier 1 and later engines rated under 37

kW. (1) A manufacturer of a nonroad

engine family with an NMHC + NOX

FEL or a PM FEL below the applicable

standard for a given model year may

bank credits in that model year for use

in averaging and trading in any

following model year.

(2) For engine rated under 37 kW, a

manufacturer of a nonroad engine

family may bank credits prior to the

effective date of mandatory certification.

Such engines must meet the

requirements of subparts A, B, D, E, F,

G, H, I, J, and K of this part.

(c) A manufacturer may bank actual

credits only after the end of the model

year and after EPA has reviewed the

manufacturer’s end-of-year reports.

During the model year and before

submittal of the end-of-year report,

credits originally designated in the

certification process for banking will be

considered reserved and may be

redesignated for trading or averaging in

the end-of-year report and final report.

(d) Credits declared for banking from

the previous model year that have not

been reviewed by EPA may be used in

averaging or trading transactions.

However, such credits may be revoked

at a later time following EPA review of

the end-of-year report or any subsequent

audit actions.

34. The newly designated § 89.206 is

revised to read as follows:

§ 89.206 Trading.

(a) Requirements for Tier 1 engines

rated at or above 37 kW. (1) A nonroad

engine manufacturer may exchange

emission credits with other nonroad

engine manufacturers within the same

averaging set in trading.

(2) Credits for trading can be obtained

from credits banked in a previous model

year or credits generated during the

model year of the trading transaction.

(3) Traded credits can be used for

averaging, banking, or further trading

transactions within the restrictions

described in § 89.204(c).

(b) Requirements for Tier 2 and later

engines rated at or above 37 kW and

Tier 1 and later engines rated under 37

kW. (1) A nonroad engine manufacturer

may exchange emission credits with

other nonroad engine manufacturers

within the same averaging set in trading.

(2) Credits for trading can be obtained

from credits banked in previous model

years that have not expired or credits

generated during the model year of the

trading transaction.

(3) Traded credits can be used for

averaging, banking, or further trading

transactions within the restrictions

described in § 89.204(c) and paragraph

(b)(4) of this section.

(4) Emission credits generated from

engines rated at or above 19 kW

utilizing indirect fuel injection may not

be traded to other manufacturers.

(c) In the event of a negative credit

balance resulting from a transaction,

both the buyer and the seller are liable,

except in cases deemed involving fraud.

Certificates of all engine families

participating in a negative trade may be

voided ab initio under § 89.126(c).

35. The newly designated § 89.207 is

revised to read as follows:

§ 89.207 Credit calculation.

(a) Requirements for calculating NOX

credits from Tier 1 engines rated at or

above 37 kW. (1) For each participating

engine family, emission credits (positive

or negative) are to be calculated

according to one of the following

equations and rounded, in accordance

with ASTM E29–93a, to the nearest onehundredth of a megagram (Mg). This

ASTM procedure has been incorporated

by reference (see § 89.6). Consistent

units are to be used throughout the

equation.

(i) For determining credit availability

from all engine families generating

credits: Emission credits = (Std¥FEL) ×

(Volume) × (AvgPR) × (UL) ×

(Adjustment) × (10¥6)

(ii) For determining credit usage for

all engine families requiring credits to

offset emissions in excess of the

standard:

Emission credits = (Std¥FEL) ×

(Volume) × (AvgPR) × (UL) × (10¥6)

Where:

Std = the applicable Tier 1 NOX nonroad

engine emission standard, in grams per

kilowatt-hour.

FEL = the NOX family emission limit for the

engine family in grams per kilowatthour.

Volume = the number of nonroad engines

eligible to participate in the averaging,

banking, and trading program within the

given engine family during the model

year. Engines sold to equipment or

vehicle manufacturers under the

provisions of § 89.102(g) shall not be

included in this number. Quarterly

production projections are used for

initial certification. Actual applicable

production/sales volume is used for endof-year compliance determination.

AvgPR = the average power rating of all of

the configurations within an engine

family, calculated on a sales-weighted

basis, in kilowatts.

UL = the useful life for the engine family, in

hours.

Adjustment = a one-time adjustment, as

specified in paragraph (a)(2) of this

section, to be applied to Tier 1 NOX

credits to be banked or traded for

determining compliance with the Tier 1

NOX standards or Tier 2 NOX+NMHC

standards specified in subpart B of this

part. Banked credits traded in a

subsequent model year will not be

subject to an additional adjustment.

Banked credits used in a subsequent

model year’s averaging program will not

have the adjustment restored.

(2) If an engine family is certified to

a NOX FEL of 8.0 g/kW-hr or less, an

Adjustment value of 1.0 shall be used in

the credit generation calculation

described in paragraph (a)(1)(i) of this

section. If an engine family is certified

to a NOX FEL above 8.0 g/kW-hr, an

Adjustment value of 0.65 shall be used

in the credit generation calculation

described in paragraph (a)(1)(i) of this

section. If the credits are to be used by

the credit-generating manufacturer for

averaging purposes in the same model

year in which they are generated, an

Adjustment value of 1.0 shall be used

for all engines regardless of the level of
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57009

the NOX FEL. If the credits are to be

banked by the credit-generating

manufacturer and used in a subsequent

model year for another Tier 1 engine

family, an Adjustment value of 1.0 shall

be used for all engines regardless of the

level of the NOX FEL.

(b) Requirements for calculating

NMHC + NOX Credits from Tier 2 and

later engines rated at or above 37 kW

and Tier 1 and later engines rated under

37 kW and PM credits from all engines.

(1) For each participating engine family,

NOX + NMHC emission credits and PM

emission credits (positive or negative)

are to be calculated according to one of

the following equations and rounded, in

accordance with ASTM E29–93a, to the

nearest one-hundredth of a megagram

(Mg). This procedure has been

incorporated by reference (see § 89.6).

Consistent units are to be used

throughout the equation.

(i) For determining credit availability

from all engine families generating

credits:

Emission credits = (Std-FEL) x (Volume)

x (AvgPR) x (UL) x (10–6)

(ii) For determining credit usage for

all engine families requiring credits to

offset emissions in excess of the

standard:

Emission credits = (Std-FEL) x (Volume)

x (AvgPR) x (UL) x (10–6)

Where:

Std = the current and applicable

nonroad engine emission standard,

in grams per kilowatt-hour, except

for PM calculations where it is the

applicable nonroad engine Tier 2

PM emission standard, and except

for engines rated under 19 kW

where it is the applicable nonroad

engine Tier 2 emission standard, in

grams per kilowatt-hour. (Engines

rated under 19 kW participating in

the averaging and banking program

provisions of § 89.203(c)(3)(ii) shall

use the Tier 1 standard for credit

calculations.)

FEL = the family emission limit for the

engine family in grams per kilowatthour.

Volume = the number of nonroad

engines eligible to participate in the

averaging, banking, and trading

program within the given engine

family during the model year.

Engines sold to equipment or

vehicle manufacturers under the

provisions of § 89.102(g) shall not

be included in this number.

Quarterly production projections

are used for initial certification.

Actual applicable production/sales

volume is used for end-of-year

compliance determination.

AvgPR = the average power rating of all

of the configurations within an

engine family, calculated on a salesweighted basis, in kilowatts.

UL = the useful life for the given engine

family, in hours.

36. The newly designated § 89.208 is

revised to read as follows:

§ 89.208 Labeling.

For all nonroad engines included in

the averaging, banking, and trading

programs, the family emission limits to

which the engine is certified must be

included on the label required in

§ 89.110.

37. The newly designated § 89.209 is

amended by revising paragraph (a) to

read as follows:

§ 89.209 Certification.

(a) In the application for certification

a manufacturer must:

(1) Declare its intent to include

specific engine families in the

averaging, banking, and trading

programs.

(2) Submit a statement that the

engines for which certification is

requested will not, to the best of the

manufacturer’s belief, cause the

manufacturer to have a negative credit

balance when all credits are calculated

for all the manufacturer’s engine

families participating in the averaging,

banking, and trading programs, except

as allowed under § 89.203(c)(3)(ii).

(3) Declare the applicable FELs for

each engine family participating in

averaging, banking, and trading.

(i) The FELs must be to the same

number of significant digits as the

emission standard for the applicable

pollutant.

(ii) In no case may the FEL exceed the

upper limits prescribed in § 89.112(d).

(4) Indicate the projected number of

credits generated/needed for this family;

the projected applicable production/

sales volume, by quarter; and the values

required to calculate credits as given in

§ 89.207.

(5) Submit calculations in accordance

with § 89.207 of projected emission

credits (positive or negative) based on

quarterly production projections for

each participating family.

(6)(i) If the engine family is projected

to have negative emission credits, state

specifically the source (manufacturer/

engine family or reserved) of the credits

necessary to offset the credit deficit

according to quarterly projected

production, or, if the engine family is to

be included in the provisions of

§ 89.203(c)(3)(ii), state that the engine

family will be subject to those

provisions.

(ii) If the engine family is projected to

generate credits, state specifically

(manufacturer/engine family or

reserved) where the quarterly projected

credits will be applied.

* * * * *

38. The newly designated § 89.210 is

amended by revising paragraphs (b) and

(c) to read as follows:

§ 89.210 Maintenance of records.

* * * * *

(b) The manufacturer of any nonroad

engine family that is certified under the

averaging, banking, and trading

programs must establish, maintain, and

retain the following adequately

organized and indexed records for each

such family:

(1) EPA engine family;

(2) Family emission limits (FEL);

(3) Power rating for each

configuration tested;

(4) Projected applicable production/

sales volume for the model year; and

(5) Actual applicable production/sales

volume for the model year.

(c) Any manufacturer producing an

engine family participating in trading

reserved credits must maintain the

following records on a quarterly basis

for each engine family in the trading

program:

(1) The engine family;

(2) The actual quarterly and

cumulative applicable production/sales

volume;

(3) The values required to calculate

credits as given in § 89.207;

(4) The resulting type and number of

credits generated/required;

(5) How and where credit surpluses

are dispersed; and

(6) How and through what means

credit deficits are met.

* * * * *

39. The newly designated § 89.211 is

amended by revising paragraphs (a) and

(c) to read as follows:

§ 89.211 End-of-year and final reports.

(a) End-of-year and final reports must

indicate the engine family, the actual

applicable production/sales volume, the

values required to calculate credits as

given in § 89.207, and the number of

credits generated/required.

Manufacturers must also submit how

and where credit surpluses were

dispersed (or are to be banked) and/or

how and through what means credit

deficits were met. Copies of contracts

related to credit trading must be

included or supplied by the broker, if

applicable. The report shall include a

calculation of credit balances to show

that the summation of the

manufacturer’s use of credits results in

a credit balance equal to or greater than

zero, except as allowed under

§ 89.203(c)(3)(ii). Manufacturers

participating under the program
57010 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

described in § 89.203(c)(3)(ii) shall

include the NMHC + NOX credit balance

and the PM credit balance as of

December 31 of that calendar year.

* * * * *

(c)(1) End-of-year reports must be

submitted within 90 days of the end of

the model year to: Director, Engine

Programs and Compliance Division

(6405-J), U.S. Environmental Protection

Agency, 401 M Street S.W., Washington,

DC 20460.

(2) Final reports must be submitted

within 270 days of the end of the model

year to: Director, Engine Programs and

Compliance Division (6405-J), U.S.

Environmental Protection Agency, 401

M Street S.W., Washington, DC 20460.

* * * * *

40. The newly designated § 89.212 is

revised to read as follows:

§ 89.212 Notice of opportunity for hearing.

Any voiding of the certificate under

§§ 89.203(d), 89.206(c), 89.209(c) or

89.210(g) will be made only after the

manufacturer concerned has been

offered an opportunity for a hearing

conducted in accordance with §§ 89.512

and 89.513 and, if a manufacturer

requests such a hearing, will be made

only after an initial decision by the

Presiding Officer.

Subpart D—[Amended]

41. The newly designated § 89.302 is

revised to read as follows:

§ 89.302 Definitions.

The definitions in subpart A of this

part apply to this subpart. For terms not

defined in this part, the definitions in

40 CFR part 86, subparts A, D, I, and N,

apply to this subpart.

42. The newly designated § 89.304 is

amended by revising paragraph (c) to

read as follows:

§ 89.304 Equipment required for gaseous

emissions; overview.

* * * * *

(c) Analyzers used are a nondispersive infrared (NDIR) absorption

type for carbon monoxide and carbon

dioxide analysis; a heated flame

ionization (HFID) type for hydrocarbon

analysis; and a chemiluminescent

detector (CLD) or heated

chemiluminescent detector (HCLD) for

oxides of nitrogen analysis. Sections

89.309 through 89.324 set forth a full

description of analyzer requirements

and specifications.

43. The newly designated § 89.307 is

amended by revising paragraphs (b)(7)

and (b)(8) to read as follows:

§ 89.307 Dynamometer calibration.

* * * * *

(b) * * *

(7) The measured torque must be

within either 2 percent of point or 1

percent of the engine maximum torque

of the calculated torque.

(8) If the measured torque is not

within the above requirements, adjust or

repair the system. Repeat steps in

paragraphs (b)(1) through (b)(6) of this

section with the adjusted or repaired

system.

* * * * *

44. The newly designated § 89.308 is

amended by revising paragraph (b) to

read as follows:

§ 89.308 Sampling system requirements

for gaseous emissions.

* * * * *

(b) If water is removed by

condensation, the sample gas

temperature shall be monitored within

the water trap or the sample dewpoint

shall be monitored downstream. In

either case, the indicated temperature

shall not exceed 7°C.

45. The newly designated § 89.309 is

amended by removing and reserving

paragraph (a)(3) and revising paragraphs

(a)(4)(iii), (a)(5)(i)(C), and (a)(5)(i)(D) to

read as follows:

§ 89.309 Analyzers required for gaseous

emissions.

(a) * * *

(3) [Reserved]

(4) * * *

(iii) The FID oven must be capable of

maintaining temperature within 5.5°C of

the set point.

* * * * *

(5) * * *

(i) * * *

(C) For raw analysis, an ice bath or

other cooling device located after the

NOX converter (optional for dilute

analysis).

(D) A chemiluminescent detector

(CLD or HCLD).

* * * * *

46. The newly designated § 89.310 is

amended by revising paragraphs (a)(1)

and (c) to read as follows:

§ 89.310 Analyzer accuracy and

specifications.

(a) * * *

(1) Response time. As necessary,

measure and account for the response

time of the analyzer.

* * * * *

(c) Emission measurement accuracy—

Bag sampling. (1) Good engineering

practice dictates that exhaust emission

sample analyzer readings below 15

percent of full-scale chart deflection

should generally not be used.

(2) Some high resolution read-out

systems, such as computers, data

loggers, and so forth, can provide

sufficient accuracy and resolution below

15 percent of full scale. Such systems

may be used provided that additional

calibrations of at least 4 non-zero

nominally equally spaced points, using

good engineering judgement, below 15

percent of full scale are made to ensure

the accuracy of the calibration curves. If

a gas divider is used, the gas divider

must conform to the accuracy

requirements specified in § 89.312(c).

The procedure in paragraph (c)(3) of this

section may be used for calibration

below 15 percent of full scale.

(3) The following procedure shall be

followed:

(i) Span the analyzer using a

calibration gas meeting the accuracy

requirements of § 89.312(c), within the

operating range of the analyzer, and at

least 90% of full scale.

(ii) Generate a calibration over the full

concentration range at a minimum of 6,

approximately equally spaced, points

(e.g. 15, 30, 45, 60, 75, and 90 percent

of the range of concentrations provided

by the gas divider). If a gas divider or

blender is being used to calibrate the

analyzer and the requirements of

paragraph (c)(2) of this section are met,

verify that a second calibration gas

between 10 and 20 percent of full scale

can be named within 2 percent of its

certified concentration.

(iii) If a gas divider or blender is being

used to calibrate the analyzer, input the

value of a second calibration gas (a span

gas may be used for the CO2 analyzer)

having a named concentration between

10 and 20 percent of full scale. This gas

shall be included on the calibration

curve. Continue adding calibration

points by dividing this gas until the

requirements of paragraph (c)(2) of this

section are met.

(iv) Fit a calibration curve per

§ 89.319 through § 89.322 for the full

scale range of the analyzer using the

calibration data obtained with both

calibration gases.

* * * * *

47. The newly designated § 89.312 is

amended by removing and reserving

paragraph (b)(2), revising paragraphs

(c)(2), (d), and (f) and adding a new

paragraph (g) to read as follows:

§ 89.312 Analytical gases.

* * * * *

(b) * * *

(2) [Reserved].

(c) * * *

(2) Mixtures of gases having the

following chemical compositions shall

be available:

(i) C3H8 and purified synthetic air ;

(ii) C3H8 and purified nitrogen

(optional for raw measurements);
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57011

(iii) CO and purified nitrogen;

(iv) NOX and purified nitrogen (the

amount of NO2 contained in this

calibration gas must not exceed 5

percent of the NO content);

(v) CO2 and purified nitrogen.

* * * * *

(d) Oxygen interference check gases

shall contain propane with 350 ppmC

±75 ppmC hydrocarbon. The three

oxygen interference gases shall contain

21% ± 1% O2, 10% ± 1% O2, and

5% ± 1% O2. The concentration value

shall be determined to calibration gas

tolerances by chromatographic analysis

of total hydrocarbons plus impurities or

by dynamic blending. Nitrogen shall be

the predominant diluent with the

balance oxygen.

* * * * *

(f) Hydrocarbon analyzer burner air.

The concentration of oxygen for raw

sampling must be within 1 mole percent

of the oxygen concentration of the

burner air used in the latest oxygen

interference check (%O2I). If the

difference in oxygen concentration is

greater than 1 mole percent, then the

oxygen interference must be checked

and, if necessary, the analyzer adjusted

to meet the %O2I requirements. The

burner air must contain less than 2

ppmC hydrocarbon.

(g) Gases for the methane analyzer

shall be single blends of methane using

air as the diluent.

48. The newly designated § 89.314 is

amended by revising paragraphs (a) and

(b) to read as follows:

§ 89.314 Pre-and post-test calibration of

analyzers.

* * * * *

(a) The calibration is checked by

using a zero gas and a span gas whose

nominal value is between 75 percent

and 100 percent of full-scale, inclusive,

of the measuring range.

(b) After the end of the final mode, a

zero gas and the same span gas will be

used for rechecking. As an option, the

zero and span may be rechecked at the

end of each mode or each test segment.

The analysis will be considered

acceptable if the difference between the

two measuring results is less than 2

percent of full scale.

§ 89.316 [Amended]

49. The newly designated § 89.316 is

amended by removing and reserving

paragraph (b).

50. The newly designated § 89.317 is

amended by revising paragraphs (g), (h),

and (k) to read as follows:

§ 89.317 NOX converter check.

* * * * *

(g) Turn on the NOX generator O2 (or

air) supply and adjust the O2 (or air)

flow rate so that the NO indicated by the

analyzer is about 10 percent less than

indicated in paragraph (f) of this

section. Record the concentration of NO

in this NO+O2 mixture.

(h) Switch the NOX generator to the

generation mode and adjust the

generation rate so that the NO measured

on the analyzer is 20 percent of that

measured in paragraph (f) of this

section. There must be at least 10

percent unreacted NO at this point.

Record the concentration of residual

NO.

* * * * *

(k) Turn off the NOX generator O2 (or

air) supply. The analyzer will now

indicate the NOX in the original NO-inN2 mixture. This value should be no

more than 5 percent above the value

indicated in paragraph (f) of this

section.

* * * * *

51. The newly designated § 89.318 is

amended by revising paragraphs (c)(2)

heading, (c)(2)(i) and (c)(2)(iv) to read as

follows:

§ 89.318 Analyzer interference checks.

* * * * *

(c) * * *

(2) NOx analyzer water quench check.

(i) This check applies to wet

measurements only. An NO span gas

having a concentration of 80 to 100

percent of full scale of a normal

operating range shall be passed through

the CLD (or HCLD) and the response

recorded as D. The NO span gas shall

then be bubbled through water at room

temperature and passed through the

CLD (or HCLD) and the analyzer

response recorded as AR. Determine and

record the bubbler absolute operating

pressure and the bubbler water

temperature. (It is important that the NO

span gas contains minimal NO2

concentration for this check. No

allowance for absorption of NO2 in

water has been made in the following

quench calculations. This test may be

optionally run in the NO mode to

minimize the effect of any NO2 in the

NO span gas.)

* * * * *

(iv)(A) The maximum raw or dilute

exhaust water vapor concentration

expected during testing (designated as

Wm) can be estimated from the CO2

span gas (or as defined in the equation

in this paragraph and designated as A)

criteria in paragraph (c)(1) of this

section and the assumption of a fuel

atom H/C ratio of 1.8:1 as:

Wm(%)=0.9×A(%)

Where:

A = maximum CO2 concentration

expected in the sample system

during testing.

(B) Percent water quench shall not

exceed 3 percent and shall be calculated

by:

%Water Quench = 100 D1× − ×

AR

D

Wm

1 1Z

52. The newly designated § 89.319 is

amended by revising paragraphs (b)(1),

(b)(2), (c), (d) heading, (d) introductory

text, (d)(2), and (d)(6) to read as follows:

§ 89.319 Hydrocarbon analyzer calibration.

* * * * *

(b) * * *

(1) Follow good engineering practices

for initial instrument start-up and basic

operating adjustment using the

appropriate fuel (see § 89.312(e)) and

zero-grade air.

(2) Optimize the FID’s response on the

most common operating range. The

response is to be optimized with respect

to fuel pressure or flow. Efforts shall be

made to minimize response variations to

different hydrocarbon species that are

expected to be in the exhaust. Good

engineering judgment is to be used to

trade off optimal FID response to

propane-in-air against reductions in

relative responses to other

hydrocarbons. A good example of

trading off response on propane for

relative responses to other hydrocarbon

species is given in Society of

Automotive Engineers (SAE) Paper No.

770141, ‘‘Optimization of Flame

Ionization Detector for Determination of

Hydrocarbon in Diluted Automotive

Exhausts’’; author Glenn D. Reschke. It

is also required that the response be set

to optimum condition with respect to

air flow and sample flow. Heated Flame

Ionization Detectors (HFIDs) must be at

their specified operating temperature.

One of the following procedures is

required for FID or HFID optimization:

(i) The procedure outlined in Society

of Automotive Engineers (SAE) paper

No. 770141, ‘‘Optimization of a Flame

Ionization Detector for Determination of

Hydrocarbon in Diluted Automotive

Exhausts’’; author, Glenn D. Reschke.

This procedure has been incorporated

by reference at § 89.6.

(ii) The HFID optimization procedures

outlined in 40 CFR part 86, subpart D.

(iii) Alternative procedures may be

used if approved in advance by the

Administrator.

(iv) The procedures specified by the

manufacturer of the FID or HFID.

* * * * *

(c) Initial and periodic calibration.

Prior to introduction into service, after

any maintenance which could alter
57012 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

calibration, and monthly thereafter, the

FID or HFID hydrocarbon analyzer shall

be calibrated on all normally used

instrument ranges using the steps in this

paragraph (c). Use the same flow rate

and pressures as when analyzing

samples. Calibration gases shall be

introduced directly at the analyzer,

unless the ‘‘overflow’’ calibration option

of 40 CFR part 86, subpart N, for the

HFID is taken. New calibration curves

need not be generated each month if the

existing curve can be verified as

continuing to meet the requirements of

paragraph (c)(3) of this section.

(1) Adjust analyzer to optimize

performance.

(2) Zero the hydrocarbon analyzer

with zero-grade air.

(3) Calibrate on each used operating

range with propane-in-air (dilute or raw)

or propane-in-nitrogen (raw) calibration

gases having nominal concentrations

starting between 10–15 percent and

increasing in at least six incremental

steps to 90 percent (e.g., 15, 30, 45, 60,

75, and 90 percent of that range) of that

range. The incremental steps are to be

spaced to represent good engineering

practice. For each range calibrated, if

the deviation from a least-squares bestfit straight line is 2 percent or less of the

value at each data point, concentration

values may be calculated by use of a

single calibration factor for that range. If

the deviation exceeds 2 percent at each

non-zero data point and within ±0.3

percent of full scale on the zero, the

best-fit non-linear equation which

represents the data to within these

limits shall be used to determine

concentration.

(d) Oxygen interference optimization

(required for raw). Choose a range where

the oxygen interference check gases will

fall in the upper 50 percent. Conduct

the test, as outlined in this paragraph,

with the oven temperature set as

required by the instrument

manufacturer. Oxygen interference

check gas specifications are found in

§ 89.312(d).

* * * * *

(2) Span the analyzer with the 21%

oxygen interference gas specified in

§ 89.312(d).

* * * * *

(6) Calculate the percent of oxygen

interference (designated as percent O2I)

for each mixture in paragraph (d)(4) of

this section.

percent O2I = ((B–C) × 100)/B

Where:

A = hydrocarbon concentration (ppmC)

of the span gas used in paragraph

(d)(2) of this section.

B = hydrocarbon concentration (ppmC)

of the oxygen interference check

gases used in paragraph (d)(4) of

this section.

C = analyzer response (ppmC) = A/D;

where

D = (percent of full-scale analyzer

response due to A) × (percent of

full-scale analyzer response due to

B).

* * * * *

53. The newly designated § 89.320 is

amended by revising paragraph (c) to

read as follows:

§ 89.320 Carbon monoxide analyzer

calibration.

* * * * *

(c) Initial and periodic calibration.

Prior to its introduction into service,

after any maintenance which could alter

calibration, and every two months

thereafter, the NDIR carbon monoxide

analyzer shall be calibrated. New

calibration curves need not be generated

every two months if the existing curve

can be verified as continuing to meet the

requirements of paragraph (c)(3) of this

section.

(1) Adjust the analyzer to optimize

performance.

(2) Zero the carbon monoxide

analyzer with either zero-grade air or

zero-grade nitrogen.

(3) Calibrate on each used operating

range with carbon monoxide-in-N2

calibration gases having nominal

concentrations starting between 10 and

15 percent and increasing in at least six

incremental steps to 90 percent (e.g., 15,

30, 45, 60, 75, and 90 percent) of that

range. The incremental steps are to be

spaced to represent good engineering

practice. For each range calibrated, if

the deviation from a least-squares bestfit straight line is 2 percent or less of the

value at each non-zero data point and

within ± 0.3 percent of full scale on the

zero, concentration values may be

calculated by use of a single calibration

factor for that range. If the deviation

exceeds these limits, the best-fit nonlinear equation which represents the

data to within these limits shall be used

to determine concentration.

* * * * *

54. The newly designated § 89.321 is

amended by revising paragraph (c) to

read as follows:

§ 89.321 Oxides of nitrogen analyzer

calibration.

* * * * *

(c) Initial and periodic calibration.

Prior to its introduction into service,

after any maintenance which could alter

calibration, and monthly thereafter, the

chemiluminescent oxides of nitrogen

analyzer shall be calibrated on all

normally used instrument ranges. New

calibration curves need not be generated

each month if the existing curve can be

verified as continuing to meet the

requirements of paragraph (c)(3) of this

section. Use the same flow rate as when

analyzing samples. Proceed as follows:

(1) Adjust analyzer to optimize

performance.

(2) Zero the oxides of nitrogen

analyzer with zero-grade air or zerograde nitrogen.

(3) Calibrate on each normally used

operating range with NO-in-N2

calibration gases with nominal

concentrations starting at between 10

and 15 percent and increasing in at least

six incremental steps to 90 percent (e.g.,

15, 30, 45, 60, 75, and 90 percent) of

that range. The incremental steps are to

be spaced to represent good engineering

practice. For each range calibrated, if

the deviation from a least-squares bestfit straight line is 2 percent or less of the

value at each non-zero data point and

within ± 0.3 percent of full scale on the

zero, concentration values may be

calculated by use of a single calibration

factor for that range. If the deviation

exceeds these limits, the best-fit nonlinear equation which represents the

data to within these limits shall be used

to determine concentration.

* * * * *

55. The newly designated § 89.322 is

amended by revising paragraph (a) to

read as follows:

§ 89.322 Carbon dioxide analyzer

calibration.

(a) Prior to its introduction into

service, after any maintenance which

could alter calibration, and bi-monthly

thereafter, the NDIR carbon dioxide

analyzer shall be calibrated on all

normally used instrument ranges. New

calibration curves need not be generated

each month if the existing curve can be

verified as continuing to meet the

requirements of paragraph (a)(3) of this

section. Proceed as follows:

(1) Follow good engineering practices

for instrument start-up and operation.

Adjust the analyzer to optimize

performance.

(2) Zero the carbon dioxide analyzer

with either zero-grade air or zero-grade

nitrogen.

(3) Calibrate on each normally used

operating range with carbon dioxide-inN2 calibration or span gases having

nominal concentrations starting

between 10 and 15 percent and

increasing in at least six incremental

steps to 90 percent (e.g., 15, 30, 45, 60,

75, and 90 percent) of that range. The

incremental steps are to be spaced to

represent good engineering practice. For

each range calibrated, if the deviation

from a least-squares best-fit straight line

is 2 percent or less of the value at each
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57013

non-zero data point and within ± 0.3

percent of full scale on the zero,

concentration values may be calculated

by use of a single calibration factor for

that range. If the deviation exceeds these

limits, the best-fit non-linear equation

which represents the data to within

these limits shall be used to determine

concentration.

* * * * *

56. The newly designated § 89.324 is

revised to read as follows:

§ 89.324 Calibration of other equipment.

(a) Other test equipment used for

testing shall be calibrated as often as

required by the instrument

manufacturer or necessary according to

good practice.

(b) If a methane analyzer is used, the

methane analyzer shall be calibrated

prior to introduction into service and

monthly thereafter:

(1) Follow the manufacturer’s

instructions for instrument startup and

operation. Adjust the analyzer to

optimize performance.

(2) Zero the methane analyzer with

zero-grade air.

(3) Calibrate on each normally used

operating range with CH4 in air with

nominal concentrations starting

between 10 and 15 percent and

increasing in at least six incremental

steps to 90 percent (e.g., 15, 30, 45, 60,

75, and 90 percent) of that range. The

incremental steps are to be spaced to

represent good engineering practice. For

each range calibrated, if the deviation

from a least-squares best-fit straight line

is 2 percent or less of the value at each

non-zero data point and within ± 0.3

percent of full scale on the zero,

concentration values may be calculated

by use of a single calibration factor for

that range. If the deviation exceeds these

limits, the best-fit non-linear equation

which represents the data to within

these limits shall be used to determine

concentration.

57. The newly designated § 89.328 is

amended by revising paragraphs (b)(1)

and (b)(2) to read as follows:

§ 89.328 Inlet and exhaust restrictions.

* * * * *

(b) * * *

(1) Equip the test engine with an air

inlet system presenting an air inlet

restriction within 5 percent of the upper

limit at maximum air flow, as specified

by the engine manufacturer for a clean

air cleaner. A system representative of

the installed engine may be used. In

other cases a test shop system may be

used.

(2) The exhaust backpressure must be

within 5 percent of the upper limit at

maximum declared power, as specified

by the engine manufacturer. A system

representative of the installed engine

may be used. In other cases a test shop

system may be used.

58. The newly designated § 89.330 is

amended by revising paragraph (b)(2)

and adding paragraph (b)(3) to read as

follows:

§ 89.330 Lubricating oil and test fuels.

* * * * *

(b) Test fuels. * * *

(2) Use petroleum fuel meeting the

specifications in Table 4 in Appendix A

of this subpart, or substantially

equivalent specifications approved by

the Administrator, for exhaust emission

testing. The grade of diesel fuel used

must be commercially designated as

‘‘Type 2–D’’ grade diesel fuel and

recommended by the engine

manufacturer.

(3) Testing of Tier 1 engines rated

under 37 kW or Tier 2 engines rated at

or above 37 kW that is conducted by the

Administrator shall be performed using

test fuels that meet the specifications in

Table 4 in Appendix A of this subpart

and that have a sulfur content no higher

than 0.20 weight percent.

* * * * *

59–63. Tables 1 through 4 of

Appendix A to subpart D are revised

and Table 5 is removed to read as

follows:

Appendix A To Subpart D—Tables

TABLE 1.—ABBREVIATIONS USED IN

SUBPART D

CLD ...... Chemiluminescent detector.

CO ........ Carbon monoxide.

CO2 ...... Carbon dioxide.

HC ........ Hydrocarbons.

HCLD ... Heated chemiluminescent detector.

HFID ..... Heated flame ionization detector.

GC ........ Gas chromatograph.

NDIR .... Non-dispersive infra-red analyzer.

NIST ..... National Institute for Standards

and Testing.

NO ........ Nitric Oxide.

NO2 ...... Nitrogen Dioxide.

NOX ...... Oxides of nitrogen.

O2 ......... Oxygen.

TABLE 2.—SYMBOLS USED IN SUBPARTS D AND E

Symbol Term Unit

conc .................. Concentration (ppm by volume) ........................................................................................................................ ppm

f ......................... Engine specific parameter considering atmospheric conditions

FFCB .................. Fuel specific factor for the carbon balance calculation

FFD .................... Fuel specific factor for exhaust flow calculation on dry basis

FFH .................... Fuel specific factor representing the hydrogen to carbon ratio

FFW ................... Fuel specific factor for exhaust flow calculation on wet basis

FR ..................... Rate of fuel consumed ...................................................................................................................................... g/h

GAIRW ............... Intake air mass flow rate on wet basis .............................................................................................................. kg/h

GAIRD ................ Intake air mass flow rate on dry basis .............................................................................................................. kg/h

GEXHW .............. Exhaust gas mass flow rate on wet basis ......................................................................................................... kg/h

GFuel .................. Fuel mass flow rate ........................................................................................................................................... kg/h

H ....................... Absolute humidity (water content related to dry air) ......................................................................................... g/kg

i ......................... Subscript denoting an individual mode

KH ..................... Humidity correction factor

L ........................ Percent torque related to maximum torque for the test mode .......................................................................... %

mass ................. Pollutant mass flow ............................................................................................................................................ g/h

nd,i ..................... Engine speed (average at the i’th mode during the cycle) ............................................................................... 1/min

Ps ...................... Dry atmospheric pressure ................................................................................................................................. kPa

Pd ...................... Test ambient saturation vapor pressure at ambient temperature ..................................................................... kPa

P ....................... Observed brake power output uncorrected ....................................................................................................... kW

PAUX ................. Declared total power absorbed by auxiliaries fitted for the test ........................................................................ kW

PM ..................... Maximum power measured at the test speed under test conditions ................................................................ kW

Pi ...................... Pi = PM,i + PAUX,i

PB ..................... Total barometric pressure (average of the pre-test and post-test values) ....................................................... kPa

Pv ...................... Saturation pressure at dew point temperature .................................................................................................. kPa
57014 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

TABLE 2.—SYMBOLS USED IN SUBPARTS D AND E—Continued

Symbol Term Unit

Ra ...................... Relative humidity of the ambient air .................................................................................................................. %

S ....................... Dynamometer setting ......................................................................................................................................... kW

T ....................... Absolute temperature at air inlet ....................................................................................................................... K

Tbe ..................... Air temperature after the charge air cooler (if applicable) (average) ................................................................ K

Tclout .................. Coolant temperature outlet (average) ............................................................................................................... K

TDd .................... Absolute dewpoint temperature ......................................................................................................................... K

Td,i ..................... Torque (average at the i’th mode during the cycle) .......................................................................................... N-m

TSC .................... Temperature of the intercooled air .................................................................................................................... K

Tref. .................... Reference temperature ...................................................................................................................................... K

VEXHD ................ Exhaust gas volume flow rate on dry basis ...................................................................................................... m3/h

VAIRW ................ Intake air volume flow rate on wet basis ........................................................................................................... m3/h

PB ..................... Total barometric pressure .................................................................................................................................. kPa

VEXHW ............... Exhaust gas volume flow rate on wet basis ...................................................................................................... m3/h

WF .................... Weighing factor

WFE .................. Effective weighing factor

TABLE 3.—MEASUREMENT ACCURACY AND CALIBRATION FREQUENCY

No. Item Calibration accuracy 1 Calibration frequency

1 ............... Engine speed ............................................... ± 2% ............................................................. 30 days.

2 ............... Torque .......................................................... Larger of ± 2% of point or ± 1% of engine

maximum.

30 days.

3 ............... Fuel consumption (raw measurement) ........ ± 2% of engine maximum ............................ 30 days.

4 ............... Air consumption (raw measurement) ........... ± 2% of engine maximum ............................ As required.

5 ............... Coolant temperature .................................... ±2°K .............................................................. As required.

6 ............... Lubricant temperature .................................. ±2°K .............................................................. As required.

7 ............... Exhaust backpressure .................................. ± 1.0% of engine maximum ......................... As required.

8 ............... Inlet depression ............................................ 1.0% of engine maximum ............................ As required.

9 ............... Exhaust gas temperature ............................. ±15°K ............................................................ As required.

10 ............. Air inlet temperature (combustion air) ......... ±2°K .............................................................. As required.

11 ............. Atmospheric pressure .................................. ± 0.5% .......................................................... As required.

12 ............. Humidity (combustion air) (g of H2O/Kg of

dry air).

± 0.5 ............................................................. As required.

13 ............. Fuel temperature .......................................... ±2°K .............................................................. As required.

14 ............. Temperature with regard to dilution tunnel .. ±2°K .............................................................. As required.

15 ............. Dilution air humidity (g of H2O/Kg of dry air) ± 0.5 ............................................................. As required.

16 ............. HC analyzer ................................................. ± 2% ............................................................. Monthly or as required.

17 ............. CO analyzer ................................................. ± 2% ............................................................. Once per 60 days or as required.

18 ............. NOX analyzer ............................................... ± 2% ............................................................. Monthly or as required.

19 ............. Methane analyzer ......................................... ± 2% ............................................................. Monthly or as required.

20 ............. NOX converter efficiency check ................... 90% .............................................................. Monthly.

21 ............. CO2 analyzer ................................................ ± 2% ............................................................. Once per 60 days or as required.

1All accuracy requirements pertain to the final recorded value which is inclusive of the data acquisition system.

TABLE 4.—FEDERAL TEST FUEL SPECIFICATIONS

Item Procedure (ASTM) 1 Value

(type 2–D)

Cetane ................................................................................................................................ D613–95 ................................................... 40–48

Distillation Range:

IBP, °C ......................................................................................................................... D86–97 ..................................................... 171–204

10% point, °C .............................................................................................................. 86–97 ........................................................ 204–238

50% point, °C .............................................................................................................. 86–97 ........................................................ 243–282

90% point, °C .............................................................................................................. 86–97 ........................................................ 293–332

EP, °C .......................................................................................................................... 86–97 ........................................................ 321–366

Gravity, API ................................................................................................................. D287–92 ................................................... 32–37

Total Sulfur, %mass ........................................................................................................... D129–95 or D2622–98 ............................. 0.03—0.40

Hydrocarbon composition:

Aromatics, %vol ........................................................................................................... D1319–98 or D5186–96 ........................... 2 10

Paraffins, Naphthenes, Olefins ........................................................................................... D1319–98 ................................................. (3)

Flashpoint, °C (minimum) ................................................................................................... D93–97 ..................................................... 54

Viscosity @ 38°C, Centistokes ........................................................................................... D445–97 ................................................... 2.0–3.2

1All ASTM procedures in this table have been incorporated by reference. See § 89.6. 2 Minimum.

3 Remainder.
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57015

Subpart E—[Amended]

64. The newly designated § 89.401 is

amended by revising paragraph (b) to

read as follows:

§ 89.401 Scope; applicability.

* * * * *

(b) Exhaust gases, either raw or dilute,

are sampled while the test engine is

operated using the appropriate test cycle

on an engine dynamometer. The exhaust

gases receive specific component

analysis determining concentration of

pollutant, exhaust volume, the fuel flow

(raw analysis), and the power output

during each mode. Emissions are

reported as grams per kilowatt hour (g/

kW-hr).

* * * * *

65. The newly designated § 89.402 is

revised to read as follows:

§ 89.402 Definitions.

The definitions in subpart A of this

part apply to this subpart. For terms not

defined in this part, the definitions in

40 CFR part 86, subparts A, D, I, and N,

apply to this subpart.

66. The newly designated § 89.404 is

amended by revising paragraph (b) and

removing paragraph (e) to read as

follows:

§ 89.404 Test procedure overview.

* * * * *

(b) The test is designed to determine

the brake-specific emissions of

hydrocarbons, carbon monoxide, oxides

of nitrogen, and particulate matter. For

more information on particulate matter

sampling see § 89.112(c). The test cycles

consist of various steady-state operating

modes that include different

combinations of engine speeds and

loads. These procedures require the

determination of the concentration of

each pollutant, exhaust volume, the fuel

flow (raw analysis), and the power

output during each mode. The measured

values are weighted and used to

calculate the grams of each pollutant

emitted per kilowatt hour (g/kW-hr).

* * * * *

67. The newly designated § 89.405 is

amended by revising paragraphs (d), (e),

and (f) to read as follows:

§ 89.405 Recorded information.

* * * * *

(d) Test data; pre-test.

(1) Date and time of day.

(2) Test number.

(3) Intermediate speed and rated

speed as defined in § 89.2 and

maximum observed torque for these

speeds.

(4) Recorder chart or equivalent.

Identify the zero traces for each range

used, and span traces for each range

used.

(5) Air temperature after and pressure

drop across the charge air cooler (if

applicable) at maximum observed

torque and rated speed.

(e) Test data; modal.

(1) Recorder chart or equivalent.

Identify for each test mode the emission

concentration traces and the associated

analyzer range(s). Identify the start and

finish of each test.

(2) Observed engine torque.

(3) Observed engine rpm.

(4) Record engine torque and engine

rpm continuously during each mode

with a chart recorder or equivalent

recording device.

(5) Intake air flow (for raw mass flow

sampling method only) and depression

for each mode.

(6) Engine intake air temperature at

the engine intake or turbocharger inlet

for each mode.

(7) Mass fuel flow (for raw sampling)

for each mode.

(8) Engine intake humidity.

(9) Coolant temperature outlet.

(10) Engine fuel inlet temperature at

the pump inlet.

(f) Test data; post-test.

(1) Recorder chart or equivalent.

Identify the zero traces for each range

used and the span traces for each range

used. Identify hangup check, if

performed.

(2) Total number of hours of operation

accumulated on the engine.

68. The newly designated § 89.406 is

amended by revising paragraphs (b) and

(c)(1) to read as follows:

§ 89.406 Pre-test procedures.

* * * * *

(b) Replace or clean the filter elements

and then vacuum leak check the system

per § 89.316(a). Allow the heated

sample line, filters, and pumps to reach

operating temperature.

(c) * * *

(1) Check the sample-line

temperatures (see § 89.309(a)(4)(ii) and

(a)(5)(i)(A)).

* * * * *

69. The newly designated § 89.407 is

amended by revising paragraphs (a), (c),

and (d)(2) to read as follows:

§ 89.407 Engine dynamometer test run.

(a) Measure and record the

temperature of the air supplied to the

engine, the fuel temperature, the intake

air humidity, and the observed

barometric pressure during the sampling

for each mode. The fuel temperature

shall be less than or equal to 43C during

the sampling for each mode.

* * * * *

(c) The following steps are taken for

each test:

(1) Install instrumentation and sample

probes as required.

(2) Perform the pre-test procedure as

specified in § 89.406.

(3) Read and record the general test

data as specified in § 89.405(c).

(4) Start cooling system.

(5) Precondition (warm up) the engine

in the following manner:

(i) For variable-speed engines:

(A) Operate the engine at idle for 2 to

3 minutes;

(B) Operate the engine at

approximately 50 percent power at the

peak torque speed for 5 to 7 minutes;

(C) Operate the engine at rated speed

and maximum horsepower for 25 to 30

minutes;

(ii) For constant-speed engines:

(A) Operate the engine at minimum

load for 2 to 3 minutes;

(B) Operate the engine at 50 percent

load for 5 to 7 minutes;

(C) Operate the engine at maximum

load for 25 to 30 minutes;

(iii) Optional. It is permitted to

precondition the engine at rated speed

and maximum horsepower until the oil

and water temperatures are stabilized.

The temperatures are defined as

stabilized if they are maintained within

2 percent of point on an absolute basis

for 2 minutes. The engine must be

operated a minimum of 10 minutes for

this option. This optional procedure

may be substituted for the procedure in

paragraph (c)(5)(i)or (c)(5)(ii) of this

section;

(iv) Optional. If the engine has been

operating on service accumulation for a

minimum of 40 minutes, the service

accumulation may be substituted for the

procedure in paragraphs (c)(5)(i)

through (iii) of this section.

(6) Read and record all pre-test data

specified in § 89.405(d).

(7) Start the test cycle (see § 89.410)

within 20 minutes of the end of the

warmup. (See paragraph (c)(13) of this

section.) A mode begins when the speed

and load requirements are stabilized to

within the requirements of § 89.410(b).

A mode ends when valid emission

sampling for that mode ends. For a

mode to be valid, the speed and load

requirements must be maintained

continuously during the mode.

Sampling in the mode may be repeated

until a valid sample is obtained as long

the speed and torque requirements are

met.

(8) Calculate the torque for any mode

with operation at rated speed.

(9) During the first mode with

intermediate speed operation, if

applicable, calculate the torque

corresponding to 75 and 50 percent of

the maximum observed torque for the

intermediate speed.
57016 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(10) Record all modal data specified

in § 89.405(e) during a minimum of the

last 60 seconds of each mode.

(11) Record the analyzer(s) response

to the exhaust gas during the a

minimum of the last 60 seconds of each

mode.

(12) Test modes may be repeated, as

long as the engine is preconditioned by

running the previous mode. In the case

of the first mode of any cycle,

precondition according to paragraph

(c)(5) of this section.

(13) If a delay of more than 20

minutes, but less than 4 hours, occurs

between the end of one mode and the

beginning of another mode,

precondition the engine by running the

previous mode. If the delay exceeds 4

hours, the test shall include

preconditioning (begin at paragraph

(c)(2) of this section).

(14) The speed and load points for

each mode are listed in Tables 1 through

4 of Appendix B of this subpart. The

engine speed and load shall be

maintained as specified in § 89.410(b).

(15) If at any time during a test mode,

the test equipment malfunctions or the

specifications in paragraph (c)(14) of

this section are not met, the test mode

is void and may be aborted. The test

mode may be restarted by

preconditioning with the previous

mode.

(16) Fuel flow and air flow during the

idle load condition may be determined

just prior to or immediately following

the dynamometer sequence, if longer

times are required for accurate

measurements.

(d) * * *

(2) Each analyzer range that may be

used during a test mode must have the

zero and span responses recorded prior

to the execution of the test. Only the

zero and span for the range(s) used to

measure the emissions during the test

are required to be recorded after the

completion of the test .

* * * * *

70. The newly designated § 89.408 is

amended by revising paragraph (e) to

read as follows:

§ 89.408 Post-test procedures.

* * * * *

(e) For a valid test, the zero and span

checks performed before and after each

test for each analyzer must meet the

following requirements:

(1) The span drift (defined as the

change in the difference between the

zero response and the span response)

must not exceed 3 percent of full-scale

chart deflection for each range used.

(2) The zero response drift must not

exceed 3 percent of full-scale chart

deflection.

71. The newly designated § 89.410 is

amended by revising paragraphs (a), (b),

and (c) to read as follows:

§ 89.410 Engine test cycle.

(a) Emissions shall be measured using

one of the test cycles specified in Tables

1 through 4 of Appendix B of this

subpart, subject to the provisions of

paragraphs (a)(1) through (a)(4) of this

section. These cycles shall be used to

test engines on a dynamometer.

(1) The 8-mode test cycle described in

Table 1 of Appendix B of this subpart

shall be used for all engines, except

constant speed engines, engines rated

under 19 kW, and propulsion marine

diesel engines.

(2) The 5-mode test cycle described in

Table 2 of Appendix B of this subpart

shall be used for constant-speed engines

as defined in § 89.2. Any engine

certified under this test cycle must meet

the labeling requirements of

§ 89.110(b)(11).

(3) The 6-mode test cycle described in

Table 3 of Appendix B of this subpart

shall be used for variable speed engines

rated under 19 kW.

(4) Notwithstanding the provisions of

paragraphs (a)(1) through (a)(3) of this

section, the 4-mode test cycle described

in Table 4 of Appendix B of this subpart

shall be used for propulsion marine

diesel engines.

(5) Notwithstanding the provisions of

paragraphs (a)(1) through (a)(4) of this

section:

(i) Manufacturers may use the 8-mode

test cycle described in Table 1 of

Appendix B of this subpart for:

(A) Constant speed engines, or

variable speed engines rated under 19

kW; or

(B) Propulsion marine diesel engines,

provided the propulsion marine diesel

engines are certified in an engine family

that includes primarily non-marine

diesel engines, and the manufacturer

obtains advance approval from the

Administrator.

(ii) The Administrator may use the 8-

mode test cycle specified in Table 1 of

Appendix B of this subpart during

testing of any engine which was

certified based on emission data

collected from that test cycle.

(b) During each non-idle mode, hold

the specified load to within 2 percent of

the engine maximum value and speed to

within ±2 percent of point. During each

idle mode, speed must be held within

the manufacturer’s specifications for the

engine, and the throttle must be in the

fully closed position and torque must

not exceed 5 percent of the peak torque

value of mode 5.

(c) For any mode except those

involving either idle or full-load

operation, if the operating conditions

specified in paragraph (b) of this section

cannot be maintained, the

Administrator may authorize deviations

from the specified load conditions. Such

deviations shall not exceed 10 percent

of the maximum torque at the test

speed. The minimum deviations above

and below the specified load necessary

for stable operation shall be determined

by the manufacturer and approved by

the Administrator prior to the test run.

* * * * *

72. The newly designated § 89.411 is

amended by revising paragraphs (d)(5)

and (e)(5) to read as follows:

§ 89.411 Exhaust sample procedure—

gaseous components.

* * * *

(d) * * *

(5) Zero and span each range to be

used on each analyzer operated prior to

the beginning of the test cycle. The span

gases shall have a concentration

between 75 and 100 percent of full-scale

chart deflection. The flow rates and

system pressures shall be approximately

the same as those encountered during

sampling. The HFID analyzer shall be

zeroed and spanned either through the

overflow sampling system or through

the analyzer port.

* * * * *

(e) * * *

(5) If the difference between the

readings obtained greater than or equal

to 2 percent of full scale deflection,

clean the sample probe and the sample

line.

* * * * *

73. The newly designated § 89.412 is

amended by revising paragraph (c)(3)

and removing and reserving paragraph

(g)(1) to read as follows:

§ 89.412 Raw gaseous exhaust sampling

and analytical system description.

* * * * *

(c) * * *

(3) The location of optional valve V16

may not be greater than 61 cm from the

sample pump.

* * * * *

(g) * * *

(1) [Reserved].

* * * * *

74. The newly designated § 89.413 is

amended by revising paragraph (d) and

removing paragraph (e) to read as

follows:

§ 89.413 Raw sampling procedures.

* * * * *

(d) All gaseous heated sampling lines

shall be fitted with a heated filter to

extract solid particles from the flow of

gas required for analysis. The sample
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57017

line for CO and CO2 analysis may be

heated or unheated.

75. The newly designated § 89.414 is

amended by revising paragraph (a) to

read as follows:

§ 89.414 Air flow measurement

specifications.

(a) The air flow measurement method

used must have a range large enough to

accurately measure the air flow over the

engine operating range during the test.

Overall measurement accuracy must be

± 2 percent of the maximum engine

value for all modes. The Administrator

must be advised of the method used

prior to testing.

* * * * *

76. The newly designated § 89.415 is

revised to read as follows:

§ 89.415 Fuel flow measurement

specifications.

The fuel flow rate measurement

instrument must have a minimum

accuracy of 2 percent of the engine

maximum fuel flow rate. The

controlling parameters are the elapsed

time measurement of the event and the

weight or volume measurement.

77. The newly designated § 89.418 is

amended by revising paragraphs (b), (c),

(d), (f) introductory text, (f)(1), and (g)

and the table in paragraph (e) to read as

follows:

§ 89.418 Raw emission sampling

calculations.

* * * * *

(b) The exhaust gas flow rate GEXHW

and VEXHW shall be determined for each

mode.

(1) For measurements using the mass

flow method, see § 89.416(a).

(2) For measurements using the fuel

consumption and exhaust gas

concentrations method, use the

following equations:

G G G H

EXHW fuel aird = + + 











 

 1  1000

Where:

G G

fla H aird

fuel = =

× − 







( )

Mass Fuel Measured

Gairw 1

1000

( ) . ( / ) ( )

( ) ( ) ( )

.

( )

( )

( )

fla

fla

X

DCO

X

DHC

X

DHC

X

K

DCO

X

K

DHC

X

stoich = +

− 



 



 − 



 



 + − 



 



 −





 





























+ −

− 



 



4 77 1 4

1

2 10 10 4

1

10

0 75

10

1

1

10

6 6 6

6 6

α

α α



























( ) . ( / )fla M M

Stoich

c H = +

+

α

13818 1 4 α

X DCO DCO DHC= + + 2

2 6 6 10 10 10

K = 3.5

(3) Humidity values may be

calculated from either one of the

following equations:

H R p

p p R

a d

R d a

= × ×

− × × ( ) −

6 22

10 2

.

or

H

P

P P

v

B v

= ×

( ) −

622

(c) When applying GEXHW, the

measured ‘‘dry’’ concentration shall be

corrected to a wet basis, if not already

measured on a wet basis. This section is

applicable only for measurements made

on raw exhaust gas. Correction to a wet

basis shall be according to the following

formula:

ConcWET = Kw × ConcDRY

Where: KW is determined according to

the equations in paragraph (c)(1) or

(c)(2) of this section.

(1) For measurements using the mass

flow method (see § 89.416(a)):

K F G

G W FH K fuel

aird

= − × W1





 



1  −

Where:

F ALF

G

G

for di FH

fuel

aird

= × ×

+













0 1448 1

1

. esel fuel only

ALF = Hydrogen mass percentage of fuel = 1.008

12.01+1.008

 for CH1.8

×

×

× =

α

α

100 1312 . fuel

α = H/C mole ratio of the fuel.

(2) For measurements using the fuel consumption and exhaust gas concentrations method (see § 89.416(b)):

K

DCO DCO

W W1 = K

+ × × = 



 





− 1

1 18 0 005

104 2 . .
57018 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

Where:

K H

H W1 = ×+ ×

1 608

1000 1 608

.

.

(d) As the NOX emission depends on

intake air conditions, the NOX

concentration shall be corrected for

intake air temperature and humidity

with the factor Kh given in the following

formula. For engines operating on

alternative combustion cycles, other

correction formulas may be used if they

can be justified or validated. The

formula follows:

K

H H = − −

1

1 0 0182 10 71 . ( . )

(e) * * *

Gas u v w conc.

NOX .................................................................................................................. 0.001587 0.00205 0.00205 ppm.

CO .................................................................................................................... 0.000966 0.00125 0.00125 ppm.

HC ..................................................................................................................... 0.000478 0.000618 ppm.

CO2 ................................................................................................................... 15.19 19.64 19.64 percent.

NOTE: The given coefficients u, v, and w are calculated for 273.15 °K (0 °C) and 101.3 kPa. In cases where the reference conditions vary from

those stated, an error may occur in the calculations.

(f) The following equations may be

used to calculate the coefficients u, v,

and w in paragraph (e) of this section for

other conditions of temperature and

pressure:

(1) For the calculation of u, v, and w

for NOX (as NO2), CO, HC (in paragraph

(e) of this section as CH1.80), CO2, and

O2:

Where:

w = 4.4615.10¥5 × M if conc. in ppm

w = 4.4615.10¥1 × M if conc. in percent

v = w

u = w/ρAir

M = Molecular weight

ρAir = Density of dry air at 273.15 °K (0

°C), 101.3 kPa = 1.293 kg/m3

* * * * *

(g)(1) The emission shall be calculated

for all individual components in the

following way where power at idle is

equal to zero:

individualgas =

gi

i=1

i=n

( ) ×

( ) ×

∑

∑

=

=

WF

P WF

i

i i

i

i n

1

(2) The weighting factors and the

number of modes (n) used in the

calculation in paragraph (g)(1) of this

section are according to § 89.410.

78. The newly designated § 89.420 is

amended by revising paragraph (a)

introductory text to read as follows:

§ 89.420 Background sample.

(a) Background samples are produced

by continuously drawing a sample of

dilution air during the exhaust

collection phase of each test cycle

mode.

* * * * *

79. The newly designated § 89.422 is

amended by revising the table in

paragraph (d)(3) to read as follows:

§ 89.422 Dilute sampling procedures—CVS

calibration.

* * * * *

(d) * * *

(3) * *

CALIBRATION DATA MEASUREMENTS

Parameter Symbol Units Tolerances

Barometric pressure (corrected) ...................................................... PB kPa (Inches Hg) ........................................ 0.034 (0.01).

Air temperature, flowmeter ............................................................... ETI deg.C (deg.F) ........................................... 0.14 (0.25).

Pressure depression upstream of LFE ............................................ EPI kPa(Inches H2O) ....................................... 0.012 (0.05).

Pressure drop across LFE matrix .................................................... EDP kPa (Inches H2O) ..................................... 0.001 (0.005).

Air flow .............................................................................................. Qs m3/min. (Ft3/min) ....................................... 0.5 pct.

CFV inlet depression ........................................................................ PPI kPa (Inches Hg) ........................................ 0.055 (0.016).

CFV outlet pressure ......................................................................... PPO kPa (Inches Hg) ........................................ 0.17 (0.05).

Temperature at venturi inlet ............................................................. Tv deg.C (deg.F) ........................................... 0.28 (0.5)

Specific gravity of manometer fluid .................................................. Sp.Gr ................................................................... (1.75 oil).

* * * *

§ 89.423 [Removed and Reserved]

80. Remove and reserve the newly

designated § 89.423.

81. The newly designated § 89.424 is

amended by revising paragraphs (a),

(d)(6), and (e), and the definition for M 1

in the CO2e equation in paragraph (d)(3)

to read as follows:

§ 89.424 Dilute emission sampling

calculations.

(a) The final reported emission test

results are computed by use of the

following formula:

A

WF

P WF

WM

i

i i

i

i n =

( ) ×

( ) ×

∑

∑

=

=

gi

i=1

i=n

1

Where:

Awm = Weighted mass emission level

(HC, CO, CO2, PM, or NOX) in g/

kW-hr.

gi = Mass flow in grams per hour, =

grams measured during the mode

divided by the sample time for the

mode.

WFi = Effective weighing factor.

Pi = Power measured during each mode

(Power set = zero for the idle mode).

* * * * *

(d) * * *

(3) * * *

M 1 = Fuel mass consumed during the

mode.

* * * * *

(6) Measured ‘‘dry’’ concentrations

shall be corrected to a wet basis, if not

already measured on a wet basis. This

section is applicable only for

measurements made on dilute exhaust

gas. Correction to a wet basis shall be

according to the following formula:

ConcWET = KW × ConcDRY

Where: KW is determined according to

the equation in paragraph (d)(6)(i) or

(d)(6)(ii), of this section.

(i) For wet CO2 measurement:
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57019

K CO conc wet w w = − K  ×





 1 − 200

2

1

α % ( )

(ii) For dry CO2 measurement:

K

K

CO conc dry w

W1 = ( ) −

+

×





















1

1

200

α 2% ( )

(iii) For the equations in paragraph

(d)(6)(i) and (d)(6)(ii) of this section, the

following equation applies:

K

H DF H DF

H DF H DF

w

d a

d a

1

1 608 1 1 1

1000 1 608 1 1 1 =

× × − [ ] ( ) + × ( )

+ × × − { } [ ] ( ) + × ( )

+

.

.

Where: Ha and Hd are the grams of

water per kilogram of dry air; as

illustrated in the following equations:

H R p

p p R d

d d

B d d

= × ×

− × × ( ) −

6 22

10 2

.

H R p

p p R a a a

B a a

= × ×

− × × ( ) −

6 22

10 2

.

(e) The final modal reported brakespecific fuel consumption (bsfc) shall be

computed by use of the following

formula:

bsfc M

kW hr = −

Where:

bsfc = brake-specific fuel consumption

for a mode in grams of fuel per

kilowatt-hour (kW-hr).

M = mass of fuel in grams, used by the

engine during a mode.

kW-hr = total kilowatts integrated with

respect to time for a mode.

* * * * *

§ 89.425 [Removed and Reserved]

82. Remove and reserve the newly

designated § 89.425.

83–87. Appendix B to Subpart E of

part 89 is revised to read as follows:

Appendix B To Subpart E of Part 89—

Tables

TABLE 1.—8-MODE TEST CYCLE FOR VARIABLE-SPEED ENGINES

Test segment Mode number Engine speed 1

Observed

torque 2

(percent of

max. observed)

Minimum

time in

mode (minutes)

Weighting

factors

1 ................................................. 1 ................................................ Rated ........................................ 100 5.0 0.15

1 ................................................. 2 ................................................ Rated ........................................ 75 5.0 0.15

1 ................................................. 3 ................................................ Rated ........................................ 50 5.0 0.15

1 ................................................. 4 ................................................ Rated ........................................ 10 5.0 0.10

2 ................................................. 5 ................................................ Int .............................................. 100 5.0 0.10

2 ................................................. 6 ................................................ Int .............................................. 75 5.0 0.10

2 ................................................. 7 ................................................ Int .............................................. 50 5.0 0.10

2 ................................................. 8 ................................................ Idle ............................................ 0 5.0 0.15

1Engine speed (non-idle): ± 2 percent of point. Engine speed (idle): Within manufacturer’s specifications. Idle speed is specified by the manufacturer. 2Torque (non-idle): Throttle fully open for 100 percent points. Other non-idle points: ± 2 percent of engine maximum value. Torque (idle): Throttle fully closed. Load less than 5 percent of peak torque.

TABLE 2.—5-MODE TEST CYCLE FOR CONSTANT-SPEED ENGINES

Mode number Engine1 Speed

Observed

torque 2

(percent of

max. observed)

Minimum

time in

mode (minutes)

Weighting

factors

1 ............................................................................ Rated .................................................................... 100 5.0 0.05

2 ............................................................................ Rated .................................................................... 75 5.0 0.25

3 ............................................................................ Rated .................................................................... 50 5.0 0.30

4 ............................................................................ Rated .................................................................... 25 5.0 0.30

5 ............................................................................ Rated .................................................................... 10 5.0 0.10

1Engine speed: ±2 percent of point. 2Torque: Throttle fully open for 100 percent point. Other points: ± 2 percent of engine maximum value.
57020 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

TABLE 3.—6-MODE TEST CYCLE FOR ENGINES RATED UNDER 19 KW

Mode number Engine speed 1

Observed

torque 2

(percent of

max. observed)

Minimum

time in

mode (minutes)

Weighting

factors

1 ............................................................................ Rated .................................................................... 100 5.0 0.09

2 ............................................................................ Rated .................................................................... 75 5.0 0.20

3 ............................................................................ Rated .................................................................... 50 5.0 0.29

4 ............................................................................ Rated .................................................................... 25 5.0 0.30

5 ............................................................................ Rated .................................................................... 10 5.0 0.07

6 ............................................................................ Idle ........................................................................ 0 5.0 0.05

1Engine speed (non-idle): ± 2 percent of point. Engine speed (idle): Within manufacturer’s specifications. Idle speed is specified by the manufacturer. 2Torque (non-idle): Throttle fully open for operation at 100 percent point. Other nonidle points: ± 2 percent of engine maximum value. Torque

(idle): Throttle fully closed. Load less than 5 percent of peak torque.

TABLE 4.—4-MODE TEST CYCLE FOR PROPULSION MARINE DIESEL ENGINES

Mode number

Engine

speed 1 (percent of max.

observed)

Observed

power 2 (percent of max.

observed)

Minimum time

in mode (minutes)

Weighting factors

1 ........................................................................................................................ 100 100 5.0 0.20

2 ........................................................................................................................ 91 75 5.0 0.50

3 ........................................................................................................................ 80 50 5.0 0.15

4 ........................................................................................................................ 63 25 5.0 0.15

1Engine speed: ± 2 percent of point. 2Power: Throttle fully open for operation at 100 percent point. Other points: ± 2 percent of engine maximum value.

Subpart F—[Amended]

88. The newly designated § 89.505 is

amended by revising paragraph (e) to

read as follows:

§ 89.505 Maintenance of records;

submittal of information.

* * * * *

(e) All reports, submissions,

notifications, and requests for approvals

made under this subpart are addressed

to: Director, Engine Programs and

Compliance Division (6405–J), U.S.

Environmental Protection Agency, 401

M Street SW, Washington, DC 20460.

89. The newly designated § 89.506 is

amended by revising paragraph (g) to

read as follows:

§ 89.506 Right of entry and access.

* * * * *

(g) A manufacturer is responsible for

locating its foreign testing and

manufacturing facilities in jurisdictions

where local law does not prohibit an

EPA enforcement officer(s) or EPA

authorized representative(s) from

conducting the entry and access

activities specified in this section. EPA

will not attempt to make any

inspections which it has been informed

that local foreign law prohibits.

90. The newly designated § 89.509 is

amended by revising paragraphs (a) and

(b) to read as follows.

§ 89.509 Calculation and reporting of test

results.

(a) Initial test results are calculated

following the applicable test procedure

specified in § 89.508(a). The

manufacturer rounds these results, in

accordance with ASTM E29–93a, to the

number of decimal places contained in

the applicable emission standard

expressed to one additional significant

figure. This procedure has been

incorporated by reference. See § 89.6.

(b) Final test results are calculated by

summing the initial test results derived

in paragraph (a) of this section for each

test engine, dividing by the number of

tests conducted on the engine, and

rounding in accordance with the

procedure specified in paragraph (a) of

this section to the same number of

decimal places contained in the

applicable standard expressed to one

additional significant figure.

* * * * *

91. The newly designated § 89.512 is

amended by revising paragraph (b) to

read as follows.

§ 89.512 Request for public hearing.

* * * * *

(b) The manufacturer’s request must

be filed with the Administrator not later

than 15 days after the Administrator’s

notification of the decision to suspend

or revoke, unless otherwise specified by

the Administrator. The manufacturer

must simultaneously serve two copies of

this request upon the Director of the

Engine Programs and Compliance

Division and file two copies with the

Hearing Clerk of the Agency. Failure of

the manufacturer to request a hearing

within the time provided constitutes a

waiver of the right to a hearing.

Subsequent to the expiration of the

period for requesting a hearing as of

right, the Administrator may, at her or

his discretion and for good cause

shown, grant the manufacturer a hearing

to contest the suspension or revocation.

* * * * *

92. The newly designated § 89.513 is

amended by revising paragraph (e)(2) to

read as follows.

§ 89.513 Administrative procedures for

public hearing.

* * * * *

(e) Filing and service. * * *

(2) To the maximum extent possible,

testimony will be presented in written

form. Copies of written testimony will

be served upon all parties as soon as

practicable prior to the start of the

hearing. A certificate of service will be

provided on or accompany each

document or paper filed with the

Hearing Clerk. Documents to be served

upon the Director of the Engine

Programs and Compliance Division

must be sent by registered mail to:

Director, Engine Programs and

Compliance Division (6405–J), U.S.

Environmental Protection Agency, 401
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57021

M Street SW., Washington, DC 20460.

Service by registered mail is complete

upon mailing.

* * * * *

Subpart G—[Amended]

93. The newly designated § 89.602 is

amended by revising the definition for

‘‘Fifteen working day hold period’’ to

read as follows:

§ 89.602 Definitions.

* * * * *

Fifteen working day hold period. The

period of time between a request for

final admission and the automatic

granting of final admission (unless EPA

intervenes) for a nonconforming

nonroad engine conditionally imported

pursuant to § 89.605 or § 89.609. Day

one of the hold period is the first

working day (see definition for

‘‘working day’’ in this section) after the

Engine Programs and Compliance

Division of EPA receives a complete and

valid application for final admission.

* * * * *

94. The newly designated § 89.603 is

amended by revising paragraph (d) to

read as follows:

§ 89.603 General requirements for

importation of nonconforming nonroad

engines.

* * * * *

(d) The ICI must submit to the Engine

Programs and Compliance Division of

EPA a copy of all approved applications

for certification used to obtain

certificates of conformity for the

purpose of importing nonconforming

nonroad engines pursuant to § 89.605 or

§ 89.609. In addition, the ICI must

submit to the Engine Programs and

Compliance Division a copy of all

approved production changes

implemented pursuant to § 89.605 or

subpart B of this part. Documentation

submitted pursuant to this paragraph (d)

must be provided to the Engine

Programs and Compliance Division

within 10 working days of approval of

the certification application (or

production change) by EPA.

95. The newly designated § 89.604 is

amended by revising paragraphs (c)(4)

and (d) to read as follows:

§ 89.604 Conditional admission.

* * * * *

(c) * * *

(4) A copy of the written record is to

be submitted to the Engine Programs

and Compliance Division of EPA within

five working days of the transfer date.

(d) Notwithstanding any other

requirement of this subpart or U.S.

Customs Service regulations, an ICI may

also assume responsibility for the

modification and testing of a

nonconforming nonroad engine which

was previously imported by another

party. The ICI must be a holder of a

currently valid certificate of conformity

for that specific nonroad engine or

authorized to import it pursuant to

§ 89.609 at the time of assuming such

responsibility. The ICI must comply

with all the requirements of § 89.603,

§ 89.604, and either § 89.605 or § 89.609,

as applicable. For the purposes of this

subpart, the ICI has ‘‘imported’’ the

nonroad engine as of the date the ICI

assumes responsibility for the

modification and testing of the nonroad

engine. The ICI must submit written

notification to the Engine Programs and

Compliance Division of EPA within 10

working days of the assumption of that

responsibility.

96. The newly designated § 89.605 is

amended by revising paragraphs

(a)(2)(i), (a)(3)(vi), and (c) to read as

follows:

§ 89.605 Final admission of certified

nonroad engines.

(a) * * *

(2) * * *

(i) The ICI attests that the nonroad

engine has been modified in accordance

with the provisions of the ICI’s

certificate of conformity; presents to

EPA a statement written by the

applicable Original Engine

Manufacturer that the Original Engine

Manufacturer must provide to the ICI,

and to EPA, information concerning

production changes to the class of

nonroad engines described in the ICI’s

application for certification; delivers to

the Engine Programs and Compliance

Division of EPA notification by the ICI

of any production changes already

implemented by the Original Engine

Manufacturer at the time of application

and their effect on emissions; and

obtains from EPA written approval to

use this demonstration option; or.

* * * * *

(3) * * *

(vi) A report concerning these

production changes is to be made to the

Engine Programs and Compliance

Division of EPA within ten working

days of initiation of the production

change. The cause of any failure of an

emission test is to be identified, if

known;

* * * * *

(c) Except as provided in paragraph

(b) of this section, EPA approval for

final admission of a nonroad engine

under this section is presumed to have

been granted if the ICI does not receive

oral or written notice from EPA to the

contrary within 15 working days of the

date that the Engine Programs and

Compliance Division of EPA receives

the ICI’s application under paragraph (a)

of this section. EPA notice of

nonapproval may be made to any

employee of the ICI. It is the

responsibility of the ICI to ensure that

the Engine Programs and Compliance

Division of EPA receives the application

and to confirm the date of receipt.

During this 15 working day hold period,

the nonroad engine is to be stored at a

location where the Administrator has

reasonable access to the nonroad engine

for the Administrator’s inspection. The

storage is to be within 50 miles of the

ICI’s testing facility to allow the

Administrator reasonable access for

inspection and testing. A storage facility

not meeting this criterion must be

approved in writing by the

Administrator prior to the submittal of

the ICI’s application under paragraph (a)

of this section.

97. The newly designated § 89.609 is

amended by revising paragraph (d) to

read as follows:

§ 89.609 Final admission of modification

nonroad engines and test nonroad engines.

* * * * *

(d) Except as provided in paragraph

(c) of this section, EPA approval for

final admission of a nonroad engine

under this section is presumed to have

been granted if the ICI does not receive

oral or written notice from EPA to the

contrary within 15 working days of the

date that the Engine Programs and

Compliance Division of EPA receives

the ICI’s application under paragraph (b)

of this section. Such EPA notice of

nonapproval may be made to any

employee of the ICI. It is the

responsibility of the ICI to ensure that

the Engine Programs and Compliance

Division of EPA receives the application

and to confirm the date of receipt.

During this 15 working day hold period,

the nonroad engine is stored at a

location where the Administrator has

reasonable access to the nonroad engine

for the Administrator’s inspection. The

storage is to be within 50 miles of the

ICI’s testing facility to allow the

Administrator reasonable access for

inspection and testing. A storage facility

not meeting this criterion must be

approved in writing by the

Administrator prior to the submittal of

the ICI’s application under paragraph (b)

of this section.

* * * * *

98. The newly designated § 89.610 is

amended by revising paragraph (b)(1) to

read as follows:

§ 89.610 Maintenance instructions,

warranties, emission labeling.

* * * * *
57022 Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations

(b) * * * (1) ICIs must submit to the

Engine Programs and Compliance

Division of EPA sample copies

(including revisions) of any warranty

documents required by this section

prior to importing nonroad engines

under this subpart.

* * * * *

99. The newly designated § 89.611 is

amended by revising paragraph (g) to

read as follows:

§ 89.611 Exemptions and exclusions.

* * * * *

(g) An application for exemption and

exclusion provided for in paragraphs

(b), (c), and (e) of this section is to be

mailed to: U.S. Environmental

Protection Agency, Office of Mobile

Sources, Engine Programs and

Compliance Division (6405–J), 401 M

Street, SW, Washington, DC 20460,

Attention: Imports.

Subpart J—[Amended]

100. Section 89.903 is amended by

revising paragraph (b) to read as follows:

§ 89.903 Application of section 216(10) of

the Act.

* * * * *

(b) EPA will maintain a list of

nonroad engines that have been

determined to be excluded because they

are used solely for competition. This list

will be available to the public and may

be obtained by writing to the following

address: Chief, Selective Enforcement

Auditing Section, Engine Programs and

Compliance Division (6405–J),

Environmental Protection Agency, 401

M Street SW, Washington, DC 20460.

* * * * *

101. Section 89.905 is amended by

revising paragraph (f) to read as follows:

§ 89.905 Testing exemption.

* * * * *

(f) A manufacturer of new nonroad

engines may request a testing exemption

to cover nonroad engines intended for

use in test programs planned or

anticipated over the course of a

subsequent one-year period. Unless

otherwise required by the Director,

Engine Programs and Compliance

Division, a manufacturer requesting

such an exemption need only furnish

the information required by paragraphs

(a)(1) and (d)(2) of this section along

with a description of the record-keeping

and control procedures that will be

employed to assure that the engines are

used for purposes consistent with

paragraph (a) of this section.

102. Section 89.906 is amended by

revising paragraphs (a)(3) introductory

text, (a)(3)(iii)(D), and (b) to read as

follows:

§ 89.906 Manufacturer-owned exemption

and precertification exemption.

(a) * * *

(3) Unless the requirement is waived

or an alternate procedure is approved by

the Director, Engine Programs and

Compliance Division, the manufacturer

must permanently affix a label to each

nonroad engine on exempt status. This

label should:

* * * * *

(iii) * * *

(D) The statement ‘‘This nonroad

engine is exempt from the prohibitions

of 40 CFR 89.1003.’’

* * * * *

(b) Any independent commercial

importer that desires a precertification

exemption pursuant to § 89.611(b)(3)

and is in the business of importing,

modifying, or testing uncertified

nonroad engines for resale under the

provisions of subpart G of this part,

must apply to the Director, Engine

Programs and Compliance Division. The

Director may require such independent

commercial importer to submit

information regarding the general nature

of the fleet activities, the number of

nonroad engines involved, and a

demonstration that adequate recordkeeping procedures for control purposes

will be employed.

103. Section 89.911 is revised to read

as follows:

§ 89.911 Submission of exemption

requests.

Requests for exemption or further

information concerning exemptions

and/or the exemption request review

procedure should be addressed to:

Chief, Selective Enforcement Auditing

Section, Engine Programs and

Compliance Division (6405–J),

Environmental Protection Agency, 401

M Street SW, Washington, DC 20460.

104. Section 89.1003 is amended by

revising paragraphs (a)(3), (a)(5), (a)(6),

(b)(4), and (b)(7) to read as follows:

§ 89.1003 Prohibited acts.

(a) * * *

(3)(i) For a person to remove or render

inoperative a device or element of

design installed on or in a nonroad

engine, vehicle or equipment in

compliance with regulations under this

part prior to its sale and delivery to the

ultimate purchaser, or for a person

knowingly to remove or render

inoperative such a device or element of

design after the sale and delivery to the

ultimate purchaser; or

(ii) For a person to manufacture, sell

or offer to sell, or install, a part or

component intended for use with, or as

part of, a nonroad engine, vehicle or

equipment, where a principal effect of

the part or component is to bypass,

defeat, or render inoperative a device or

element of design installed on or in a

nonroad engine in compliance with

regulations issued under this part, and

where the person knows or should

know that the part or component is

being offered for sale or installed for this

use or put to such use; or

(iii) for a person to deviate from the

provisions of § 89.130 when rebuilding

an engine (or rebuilding a portion of an

engine or engine system).

* * * * *

(5) For a person to circumvent or

attempt to circumvent the residence

time requirements of paragraph (2)(iii)

of the nonroad engine definition in

§ 89.2.

(6) For a manufacturer of nonroad

vehicles or equipment to distribute in

commerce, sell, offer for sale, or

introduce into commerce a nonroad

vehicle or piece of equipment which

contains an engine not covered by a

certificate of conformity, except as

otherwise allowed by this part.

(b) * * *

(4) Certified nonroad engines shall be

used in all vehicles and equipment

manufactured on or after the applicable

model years in § 89.112 that are selfpropelled, portable, transportable, or are

intended to be propelled while

performing their function, unless the

manufacturer of the vehicle or

equipment can prove that the vehicle or

equipment will be used in a manner

consistent with paragraph (2) of the

definition of nonroad engine in § 89.2.

After the date on which a new standard

takes effect, nonroad vehicle and

equipment manufacturers may continue

to use nonroad engines built prior to

this date that are not certified to the

standard until inventories of those

engines are depleted; however,

stockpiling of such nonroad engines

will be considered a violation of this

section.

* * * * *

(7) A new nonroad engine intended

solely to replace a nonroad engine in a

piece of nonroad equipment, where the

engine requiring replacement is not

certified or is certified to emission

standards that are less stringent than

those in effect when the replacement

engine is built, shall not be subject to

the prohibitions of paragraph (a)(1) of

this section or to the requirements of

§ 89.105 and paragraph (b)(4) of this

section, provided that:

(i) The engine manufacturer has

ascertained that no engine produced by

itself or by the manufacturer of the

engine that is being replaced, if

different, and certified to the
Federal Register / Vol. 63, No. 205 / Friday, October 23, 1998 /Rules and Regulations 57023

requirements of this subpart, is available

with the appropriate physical or

performance characteristics to repower

the equipment; and

(ii) The engine manufacturer or its

agent takes ownership and possession of

the engine being replaced in partial

exchange for the replacement engine;

and

(iii) The replacement engine is clearly

labeled with the following language, or

similar alternate language approved by

the Administrator: THIS ENGINE DOES

NOT COMPLY WITH FEDERAL

NONROAD OR ON-HIGHWAY

EMISSION REQUIREMENTS. SALE OR

INSTALLATION OF THIS ENGINE FOR

ANY PURPOSE OTHER THAN AS A

REPLACEMENT ENGINE FOR AN

ENGINE MANUFACTURED PRIOR TO

JANUARY 1 [INSERT APPROPRIATE

YEAR] IS A VIOLATION OF FEDERAL

LAW SUBJECT TO CIVIL PENALTY;

and

(iv) In cases where an engine is to be

imported for replacement purposes

under the provisions of this paragraph

(b)(7), the term ‘‘engine manufacturer’’

shall not apply to an individual or other

entity that does not possess a current

Certificate of Conformity issued by EPA

under this part; and

(v) Where the replacement engine is

intended to replace an engine that is

certified to emission standards that are

less stringent than those in effect when

the replacement engine is built, the

replacement engine shall be identical in

all material respects to a certified

configuration of the same or later model

year as the engine being replaced; and

(vi) Engines sold pursuant to the

provisions of this paragraph (b)(7) will

neither generate nor use emission

credits and will not be part of any

accounting under the averaging, banking

and trading program.

105. Section 89.1007 is amended by

revising paragraph (c) to read as follows:

§ 89.1007 Warranty provisions.

* * * * *

(c) For the purposes of this section,

the owner of any nonroad engine

warranted under this part is responsible

for the proper maintenance of the

engine. Proper maintenance includes

replacement and service, at the owner’s

expense at a service establishment or

facility of the owner’s choosing, of all

parts, items, or devices related to

emission control (but not designed for

emission control) under the terms of the

last sentence of section 207(a)(3) of the

Act, unless such part, item, or device is

covered by any warranty not mandated

by this Act.

[FR Doc. 98–24836 Filed 10–22–98; 8:45 am]

BILLING CODE 6560–50–P