28098 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 60, 63, 85, 89, 90, 91, 

1027, 1045, 1048, 1051, 1054, 1060, 

1065, 1068, and 1074 

[EPA–HQ–OAR–2004–0008; FRL–8303–7] 

RIN 2060–AM34 

Control of Emissions from Nonroad 

Spark-Ignition Engines and Equipment 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: We are proposing emission 

standards for new nonroad sparkignition engines that will substantially 

reduce emissions from these engines. 

The proposed exhaust emission 

standards would apply in 2009 for new 

marine spark-ignition engines, 

including first-time EPA standards for 

sterndrive and inboard engines. The 

proposed exhaust emission standards 

would apply starting in 2011 and 2012 

for different sizes of new land-based, 

spark-ignition engines at or below 19 

kilowatts (kW). These small engines are 

used primarily in lawn and garden 

applications. We are also proposing 

evaporative emission standards for 

vessels and equipment using any of 

these engines. In addition, we are 

making other minor amendments to our 

regulations. We estimate that by 2030, 

the proposed standards would result in 

significant annual reductions of 

pollutant emissions from regulated 

engine and equipment sources 

nationwide, including 631,000 tons of 

volatile organic hydrocarbon emissions, 

98,200 tons of NOX emissions, and 

6,300 tons of direct particulate matter 

(PM2.5) emissions. These reductions 

correspond to significant reductions in 

the formation of ground-level ozone. We 

also expect to see annual reductions of 

2,690,000 tons of carbon monoxide 

emissions, with the greatest reductions 

in areas where there have been 

problems with individual exposures. 

The requirements in this proposal 

would result in substantial benefits to 

public health and welfare and the 

environment. We estimate that by 2030, 

on an annual basis, these emission 

reductions would prevent 450 PMrelated premature deaths, approximately 

500 hospitalizations, 52,000 work days 

lost, and other quantifiable benefits 

every year. The total estimated annual 

benefits of this rule in 2030 are 

approximately $3.4 billion. Estimated 

costs in 2030 are many times less at 

approximately $240 million. 

DATES: Comments: Comments must be 

received on or before August 3, 2007. 

Under the Paperwork Reduction Act, 

comments on the information collection 

provisions must be received by OMB on 

or before June 18, 2007. 

ADDRESSES: Submit your comments, 

identified by Docket No. EPA–HQ– 

OAR–2004–0008, by one of the 

following methods: 

www.regulations.gov: Follow the online instructions for submitting 

comments. 

E-mail: a-and-r-docket@epa.gov. 

Fax: (202) 260–4400. 

Mail: Environmental Protection 

Agency, Air Docket, Mail-code 6102T, 

1200 Pennsylvania Ave., NW., 

Washington, DC 20460. In addition, 

please mail a copy of your comments on 

the information collection provisions to 

the Office of Information and Regulatory 

Affairs, Office of Management and 

Budget (OMB), Attn: Desk Officer for 

EPA, 725 17th St., NW., Washington, DC 

20503. 

Hand Delivery: EPA Docket Center 

(EPA/DC), EPA West, Room 3334, 1301 

Constitution Ave., NW., Washington, 

DC, Attention Docket No. EPA–HQ– 

OAR–2004–0008. Such deliveries are 

accepted only during the Docket’s 

normal hours of operation, special 

arrangements should be made for 

deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–HQ–OAR–2004– 

0008. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or e-mail. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an e-mail 

comment directly to EPA without going 

through www.regulations.gov, your email address will be automatically 

captured and included as part of the 

comment that is placed in the public 

docket and made available on the 

Internet. If you submit an electronic 

comment, EPA recommends that you 

include your name and other contact 

information in the body of your 

comment and with any disk or CD–ROM 

you submit. If EPA cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

EPA may not be able to consider your 

comment. Electronic files should avoid 

the use of special characters, any form 

of encryption, and be free of any defects 

or viruses. For additional instructions 

on submitting comments, go to Unit XIII 

of the SUPPLEMENTARY INFORMATION

section of this document. 

Docket: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, such as CBI or other 

information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

will be publicly available only in hard 

copy. Publicly available docket 

materials are available either 

electronically in www.regulations.gov or 

in hard copy at the ‘‘Control of 

Emissions from Nonroad Spark-Ignition 

Engines, Vessels and Equipment’’ 

Docket, EPA/DC, EPA West, Room 3334, 

1301 Constitution Ave., NW., 

Washington, DC. The Public Reading 

Room is open from 8:30 a.m. to 4:30 

p.m., Monday through Friday, excluding 

legal holidays. The telephone number 

for the Public Reading Room is (202) 

566–1744 and the telephone number for 

the ‘‘Control of Emissions from Nonroad 

Spark-Ignition Engines, Vessels, and 

Equipment’’ Docket is (202) 566–1742. 

Hearing: A hearing will be held at 

9:30 a.m. on Tuesday, June 5, 2007 at 

the Sheraton Reston Hotel. The hotel is 

located at 11810 Sunrise Valley Drive in 

Reston, Virginia; their phone number is 

703–620–9000. For more information on 

these hearings or to request to speak, see 

Section XIII. 

FOR FURTHER INFORMATION CONTACT: 

Carol Connell, Environmental 

Protection Agency, Office of 

Transportation and Air Quality, 

Assessment and Standards Division, 

2000 Traverwood Drive, Ann Arbor, 

Michigan 48105; telephone number: 

734–214–4349; fax number: 734–214– 

4050; e-mail address: 

connell.carol@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Does This Action Apply to Me? 

This action will affect you if you 

produce or import new spark-ignition 

engines intended for use in marine 

vessels or in new vessels using such 

engines. This action will also affect you 

if you produce or import new sparkignition engines below 19 kilowatts 

used in nonroad equipment, including 

agricultural and construction 

equipment, or produce or import such 

nonroad vehicles. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28099 

The following table gives some 

examples of entities that may have to 

follow the regulations; however, since 

these are only examples, you should 

carefully examine the proposed 

regulations. Note that we are proposing 

minor changes in the regulations that 

apply to a wide range of products that 

may not be reflected in the following 

table (see Section XI). If you have 

questions, call the person listed in the 

FOR FURTHER INFORMATION CONTACT

section of this preamble: 

Category NAICS codes a SIC codes b Examples of potentially regulated entities 

Industry 333618 3519 Manufacturers of new engines. 

Industry 333111 3523 Manufacturers of farm machinery and equipment. 

Industry 333112 3524 Manufacturers of lawn and garden tractors (home). 

Industry 336612 3731, 3732 Manufacturers of marine vessels. 

Industry 811112, 811198 7533, 7549 Commercial importers of vehicles and vehicle components. 

a North American Industry Classification System (NAICS). 

bStandard Industrial Classification (SIC) system code. 

What Should I Consider as I Prepare 

My Comments for EPA? 

Submitting CBI. Do not submit this 

information to EPA through 

www.regulations.gov or e-mail. Clearly 

mark the part or all of the information 

that you claim to be CBI. For CBI 

information in a disk or CD ROM that 

you mail to EPA, mark the outside of the 

disk or CD ROM as CBI and then 

identify electronically within the disk or 

CD ROM the specific information that is 

claimed as CBI. In addition to one 

complete version of the comment that 

includes information claimed as CBI, a 

copy of the comment that does not 

contain the information claimed as CBI 

must be submitted for inclusion in the 

public docket. Information so marked 

will not be disclosed except in 

accordance with procedures set forth in 

40 CFR part 2. 

Tips for Preparing Your Comments. 

When submitting comments, remember 

to: 

• Identify the rulemaking by docket 

number and other identifying 

information (subject heading, Federal 

Register date and page number). 

• Follow directions—The agency may 

ask you to respond to specific questions 

or organize comments by referencing a 

Code of Federal Regulations (CFR) part 

or section number. 

• Explain why you agree or disagree; 

suggest alternatives and substitute 

language for your requested changes. 

• Describe any assumptions and 

provide any technical information and/ 

or data that you used. 

• If you estimate potential costs or 

burdens, explain how you arrived at 

your estimate in sufficient detail to 

allow for it to be reproduced. 

• Provide specific examples to 

illustrate your concerns and suggest 

alternatives. 

• Explain your views as clearly as 

possible, avoiding the use of profanity 

or personal threats. 

• Make sure to submit your 

comments by the comment period 

deadline identified. 

Table of Contents 

I. Introduction 

A. Overview 

B. Why Is EPA Taking This Action? 

C. What Regulations Currently Apply to 

Nonroad Engines or Vehicles? 

D. Putting This Proposal into Perspective 

E. What Requirements Are We Proposing? 

F. How Is This Document Organized? 

II. Public Health and Welfare Effects 

A. Ozone 

B. Particulate Matter 

C. Air Toxics 

D. Carbon Monoxide 

III. Sterndrive and Inboard Marine Engines 

A. Overview 

B. Engines Covered by This Rule 

C. Proposed Exhaust Emission Standards 

D. Test Procedures for Certification 

E. Additional Certification and Compliance 

Provisions 

F. Small-Business Provisions 

G. Technological Feasibility 

IV. Outboard and Personal Watercraft 

Engines 

A. Overview 

B. Engines Covered by This Rule 

C. Proposed Exhaust Emission Standards 

D. Changes to Existing OB/PWC Test 

Procedures 

E. Additional Certification and Compliance 

Provisions 

F. Other Adjustments to Regulatory 

Provisions 

G. Small-Business Provisions 

H. Technological Feasibility 

V. Small SI Engines 

A. Overview 

B. Engines Covered by This Rule 

C. Proposed Requirements 

D. Testing Provisions 

E. Certification and Compliance Provisions 

for Small SI Engines and Equipment 

F. Small Business Provisions 

G. Technological Feasibility 

VI. Evaporative Emissions 

A. Overview 

B. Fuel Systems Covered by This Rule 

C. Proposed Evaporative Emission 

Standards 

D. Emission Credit Programs 

E. Testing Requirements 

F. Certification and Compliance Provisions 

G. Small-Business Provisions 

H. Technological Feasibility 

VII. General Concepts Related to Certification 

and Other Requirements 

A. Scope of Application 

B. Emission Standards and Testing 

C. Demonstrating Compliance 

D. Other Concepts 

VIII. General Nonroad Compliance Provisions 

A. Miscellaneous Provisions (Part 1068, 

subpart A) 

B. Prohibited Acts and Related 

Requirements (Part 1068, subpart B) 

C. Exemptions (Part 1068, subpart C) 

D. Imports (Part 1068, subpart D) 

E. Selective Enforcement Audit (Part 1068, 

subpart E) 

F. Defect Reporting and Recall (Part 1068, 

subpart F) 

G. Hearings (Part 1068, subpart G) 

IX. General Test Procedures 

A. Overview 

B. Special Provisions for Nonroad SparkIgnition Engines 

X. Energy, Noise, and Safety 

A. Safety 

B. Noise 

C. Energy 

XI. Proposals Affecting Other Engine and 

Vehicle Categories 

A. State Preemption 

B. Certification Fees 

C. Amendments to General Compliance 

Provisions in 40 CFR Part 1068 

D. Amendments Related to Large SI 

Engines (40 CFR Part 1048) 

E. Amendments Related to Recreational 

Vehicles (40 CFR Part 1051) 

F. Amendments Related to Heavy-Duty 

Highway Engines (40 CFR Part 85) 

G. Amendments Related to Stationary 

Spark-Ignition Engines (40 CFR Part 60) 

XII. Projected Impacts 

A. Emissions from Small Nonroad and 

Marine Spark-Ignition Engines 

B. Estimated Costs 

C. Cost per Ton 

D. Air Quality Impact 

E. Benefits 

F. Economic Impact Analysis 

XIII. Public Participation 

XIV. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act 

D. Unfunded Mandates Reform Act 

E. Executive Order 13132: Federalism 


sroberts on PROD1PC70 with PROPOSALS
28100 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

1Otto-cycle engines (referred to here as sparkignition or SI engines) typically operate on gasoline, 

liquefied petroleum gas, or natural gas. Diesel-cycle 

engines, referred to simply as ‘‘diesel engines’’ in 

this document, may also be referred to as 

compression-ignition or CI engines. These engines 

typically operate on diesel fuel, but other fuels may 

also be used. 

2Pub. L. 108–199, Div G, Title IV, § 428(b), 118 

Stat. 418 (January 23, 2004). 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children from Environmental Health and 

Safety Risks 

H. Executive Order 12898: Federal Actions 

to Address Environmental Justice in 

Minority Populations and Low-Income 

Populations. 

I. Executive Order 13211: Actions that 

Significantly Affect Energy Supply, 

Distribution, or Use 

J. National Technology Transfer 

Advancement Act 

I. Introduction 

A. Overview 

Air pollution is a serious threat to the 

health and well-being of millions of 

Americans and imposes a large burden 

on the U.S. economy. Ground-level 

ozone is linked to potentially serious 

health problems, especially respiratory 

effects, and environmental degradation. 

Carbon monoxide emissions are also 

related to health problems. Over the 

past quarter century, state and federal 

agencies have established emission 

control programs that make significant 

progress in addressing these concerns. 

This proposal includes steps that 

would reduce the mobile-source 

contribution to air pollution in the 

United States. In particular, we are 

proposing standards that would require 

manufacturers to substantially reduce 

emissions from marine spark-ignition 

engines and from nonroad sparkignition engines below 19 kW that are 

generally used in lawn and garden 

applications.1 We refer to these as 

Marine SI engines and Small SI engines, 

respectively. The proposed standards 

are a continuation of the process of 

establishing standards for nonroad 

engines and vehicles as required by 

Clean Air Act section 213. All the 

nonroad engines subject to this proposal 

are already regulated under existing 

emission standards, except sterndrive 

and inboard marine engines, which will 

be subject to EPA emission standards for 

the first time. 

Nationwide, emissions from Marine 

SI engines and Small SI engines 

contribute significantly to mobile source 

air pollution. By 2020 without the 

proposed requirements these engines 

will account for about 27 percent 

(1,352,000 tons) of mobile source 

volatile organic hydrocarbon 

compounds (VOC) emissions, 31 

percent (16,374,000 tons) of mobile 

source carbon monoxide (CO) 

emissions, 4 percent (202,000 tons) of 

mobile source oxides of nitrogen (NOX) 

emissions, and 16 percent (39,000 tons) 

of mobile source particulate matter 

(PM2.5) emissions. The proposed 

standards will reduce exposure to these 

emissions and help avoid a range of 

adverse health effects associated with 

ambient ozone, CO, and PM levels. In 

addition, the proposed standards will 

help reduce acute exposure to CO, air 

toxics, and PM for persons who operate 

or who work with or are otherwise 

active in close proximity to these 

engines. They will also help address 

other environmental problems 

associated with Marine SI engines and 

Small SI engines, such as visibility 

impairment in our national parks and 

other wilderness areas. These effects are 

described in more detail in subsequent 

sections of this Preamble. 

B. Why Is EPA Taking This Action? 

Clean Air Act section 213(a)(1) directs 

us to study emissions from nonroad 

engines and vehicles to determine, 

among other things, whether these 

emissions ‘‘cause, or significantly 

contribute to, air pollution which may 

reasonably be anticipated to endanger 

public health or welfare.’’ Section 

213(a)(2) further requires us to 

determine whether emissions of CO, 

VOC, and NOX from all nonroad engines 

significantly contribute to ozone or CO 

concentrations in more than one 

nonattainment area. If we determine 

that emissions from all nonroad engines 

do contribute significantly to these 

nonattainment areas, section 213(a)(3) 

then requires us to establish emission 

standards for classes or categories of 

new nonroad engines and vehicles that 

cause or contribute to such pollution. 

We may also set emission standards 

under section 213(a)(4) regulating any 

other emissions from nonroad engines 

that we find contribute significantly to 

air pollution which may reasonably be 

anticipated to endanger public health or 

welfare. 

Specific statutory direction to propose 

standards for nonroad spark-ignition 

engines comes from section 428(b) of 

the 2004 Consolidated Appropriations 

Act, which requires EPA to propose 

regulations under the Clean Air Act 

‘‘that shall contain standards to reduce 

emissions from new nonroad sparkignition engines smaller than 50 

horsepower.’’ 2 As highlighted above 

and more fully described in Section II, 

these engines emit pollutants that 

contribute to ground-level ozone and 

ambient CO levels. Human exposure to 

ozone and CO can cause serious 

respiratory and cardiovascular 

problems. Additionally, these emissions 

contribute to other serious 

environmental degradation. This 

proposal implements Congress’ mandate 

by proposing new requirements for 

particular nonroad engines and 

equipment that are regulated as part of 

EPA’s overall nonroad emission control 

program. 

We are proposing this rule under the 

procedural authority of section 307(d) of 

the Clean Air Act. 

C. What Regulations Currently Apply to 

Nonroad Engines or Vehicles? 

EPA has been setting emission 

standards for nonroad engines and/or 

vehicles since Congress amended the 

Clean Air Act in 1990 and included 

section 213. These amendments have 

led to a series of rulemakings to reduce 

the air pollution from this widely 

varying set of products. In these 

rulemakings, we divided the broad 

group of nonroad engines and vehicles 

into several different categories for 

setting application-specific 

requirements. Each category involves 

many unique characteristics related to 

the participating manufacturers, 

technology, operating characteristics, 

sales volumes, and market dynamics. 

Requirements for each category 

therefore take on many unique features 

regarding the stringency of standards, 

the underlying expectations regarding 

emission control technologies, the 

nature and extent of testing, and the 

myriad details that comprise the 

implementation of a compliance 

program. 

At the same time, the requirements 

and other regulatory provisions for each 

engine category share many 

characteristics. Each rulemaking under 

section 213 sets technology-based 

standards consistent with the Clean Air 

Act and requires annual certification 

based on measured emission levels from 

test engines or vehicles. As a result, the 

broader context of EPA’s nonroad 

emission control programs demonstrates 

both strong similarities between this 

rulemaking and the requirements 

adopted for other types of engines or 

vehicles and distinct differences as we 

take into account the unique nature of 

these engines and the companies that 

produce them. 

We completed the Nonroad Engine 

and Vehicle Emission Study to satisfy 

Clean Air Act section 213(a)(1) in 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28101 

3This study is available on EPA’s web site at 

http://www.epa.gov/otaq/equip-ld. 

4The term ‘‘Marine SI,’’ used throughout this 

document, refers to all spark-ignition engines used 

to propel marine vessels. This includes outboard 

engines, personal watercraft engines, and 

sterndrive/inboard engines. See Section III for 

additional information. 

5The terms ‘‘Small SI’’ and ‘‘Large SI’’ are used 

throughout this document. All nonroad sparkignition engines not covered by our programs for 

Marine SI engines or recreational vehicles are either 

Small SI engines or Large SI engines. Small SI 

engines include those engines with maximum 

power at or below 19 kW, and Large SI engines 

include engines with maximum power above 19 

kW. 

6Handheld engines generally include those 

engines for which the operator holds or supports 

the equipment during operation; nonhandheld 

engines are Small SI engines that are not handled 

engines (see § 1054.801). Class I refers to 

nonhandheld engines with displacement below 225 

cc; Class II refers to larger nonhandheld engines. 

7Note that we refer to the handheld exhaust 

emission standards in 40 CFR part 1054 as Phase 

3 standards. This is intended to maintain consistent 

terminology with the comparable standards in 

California rather than indicating an increase in 

stringency. 

November 1991.3 On June 17, 1994, we 

made an affirmative determination 

under section 213(a)(2) that nonroad 

emissions are significant contributors to 

ozone or CO in more than one 

nonattainment area (56 FR 31306). Since 

then we have undertaken several 

rulemakings to set emission standards 

for the various categories of nonroad 

engines. Table I–1 highlights the 

different engine or vehicle categories we 

have established and the corresponding 

cites for emission standards and other 

regulatory requirements. Table I–2 

summarizes the series of EPA 

rulemakings that have set new or 

revised emission standards for any of 

these nonroad engines or vehicles. 

These actions are described in the 

following sections, with additional 

discussion to explain why we are not 

proposing more stringent standards for 

certain types of nonroad spark-ignition 

engines below 50 horsepower. 

TABLE I–1.—NONROAD ENGINE CATEGORIES FOR EPA EMISSION STANDARDS

Engine categories CFR cite for regulationse establishing emission standards Cross reference to 

Table I.C–2 

1. Locomotives engines ........................................................ 40 CFR Part 92 .................................................................... d 

2. Marine diesel engines ...................................................... 40 CFR Part 94 .................................................................... g, i, j 

3. Other nonroad diesel engines .......................................... 40 CFR Parts 89 and 1039 .................................................. a, e, k 

4. Marine SI engines 4 .......................................................... 40 CFR Part 91 .................................................................... c 

5. Recreational vehicles ....................................................... 40 CFR Part 1051 ................................................................ i 

6. Small SI engines 5 ............................................................ 40 CFR Part 90 .................................................................... b, f, h 

7. Large SI engines 4 ............................................................ 40 CFR Part 1048 ................................................................ i 

TABLE I–2.—EPA’S RULEMAKINGS FOR NONROAD ENGINES

Nonroad engines (categories and sub-categories) Final rulemaking Date 

a. Land-based diesel engines ≥37 kW Tier 1 ................................................................................. 56 FR 31306 ............. June 17, 1994. 

b. Small SI engines—Phase 1 ........................................................................................................ 60 FR 34581 ............. July 3, 1995. 

c. Marine SI engines—outboard and personal watercraft ............................................................... 61 FR 52088 ............. October 4, 1996. 

d. Locomotives ................................................................................................................................. 63 FR 18978 ............. April 16, 1998. 

e. Land-based diesel engines—Tier 1 and Tier 2 for engines <37 kW—Tier 2 and Tier 3 for engines ≥37 kW.63 FR 56968 ............. October 23, 1998. 

f. Small SI engines (Nonhandheld)—Phase 2 ................................................................................ 64 FR 15208 ............. March 30, 1999. 

g. Commercial marine diesel <30 liters per cylinder ....................................................................... 64 FR 73300 ............. December 29, 1999. 

h. Small SI engines (Handheld)—Phase 2 ..................................................................................... 65 FR 24268 ............. April 25, 2000. 

i. Recreational vehicles, Industrial spark-ignition engines >19 kW, and Recreational marine diesel.67 FR 68242 ............. November 8, 2002. 

j. Marine diesel engines ≥2.5 liters/cylinder .................................................................................... 68 FR 9746 ............... February 28, 2003. 

k. Land-based diesel engines—Tier 4 ............................................................................................. 69 FR 38958 ............. June 29, 2004. 

(1) Small SI Engines 

We have previously adopted emission 

standards for nonroad spark-ignition 

engines at or below 19 kW in two 

phases. The first phase of these 

standards introduced certification and 

an initial level of emission standards for 

both handheld and nonhandheld 

engines. On March 30, 1999 we adopted 

a second phase of standards for 

nonhandheld engines, including both 

Class I and Class II engines, which are 

almost fully phased-in today (64 FR 

15208).6 These standards involved 

emission reductions based on improving 

engine calibrations to reduce exhaust 

emissions and added a requirement that 

emission standards must be met over 

the engines’ entire useful life as defined 

in the regulations. We believe catalyst 

technology has now developed to the 

point that it can be applied to all 

nonhandheld Small SI engines to reduce 

exhaust emissions. Various emission 

control technologies are similarly 

available to address the different types 

of fuel evaporative emissions we have 

identified. 

For handheld engines, we adopted 

Phase 2 exhaust emission standards in 

April 25, 2000 (65 FR 24268). These 

standards were based on the application 

of catalyst technology, with the 

expectation that manufacturers would 

have to make considerable investments 

to modify their engine designs and 

production processes. A technology 

review we completed in 2003 indicated 

that manufacturers were making 

progress toward compliance, but that 

additional implementation flexibility 

was needed if manufacturers were to 

fully comply with the regulations by 

2010. This finding and a change in the 

rule were published in the Federal 

Register on January 12, 2004 

(69FR1824). At this point, we have no 

information to suggest that 

manufacturers can uniformly apply new 

technology or make design 

improvements to reduce exhaust 

emissions below the Phase 2 levels. We 

therefore believe the Phase 2 standards 

continue to represent the greatest degree 

of emission reduction achievable for 

these engines.7 However, we believe it 

is appropriate to apply evaporative 

emission standards to the handheld 

engines similar to those we are 


sroberts on PROD1PC70 with PROPOSALS
28102 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

8Note that we treat certain high-speed off-road 

utility vehicles as all-terrain vehicles (see 40 CFR 

part 1051). 

proposing for the nonhandheld engines. 

Manufacturers can control evaporative 

emissions in a way that has little or no 

impact on exhaust emissions. 

(2) Marine SI Engines 

On October 4, 1996 we adopted 

emission standards for spark-ignition 

outboard and personal watercraft 

engines that have recently been fully 

phased in (61 FR 52088). We decided 

not to finalize emission standards for 

sterndrive or inboard marine engines at 

that time. Uncontrolled emission levels 

from sterndrive and inboard marine 

engines were already significantly lower 

than the outboard and personal 

watercraft engines. We did, however, 

leave open the possibility of revisiting 

the need for emission standards for 

sterndrive and inboard engines in the 

future. See Section III for further 

discussion of the scope and background 

of past and current rulemakings for 

these engines. 

We believe existing technology can be 

applied to all Marine SI engines to 

reduce emissions of harmful pollutants, 

including both exhaust and evaporative 

emissions. Manufacturers of outboard 

and personal watercraft engines can 

continue the trend of producing fourstroke engines and advanced-technology 

two-stroke engines to further reduce 

emissions. For sterndrive/inboard 

engines, manufacturers can add 

technologies, such as fuel injection and 

aftertreatment, that can safely and 

substantially improve the engines’

emission control capabilities. 

(3) Large SI Engines 

We adopted emission standards for 

Large SI engines on November 8, 2002 

(67 FR 68242). This includes Tier 1 

standards for 2004 through 2006 model 

years and Tier 2 standards starting with 

2007 model year engines. Manufacturers 

are today facing a considerable 

challenge to comply with the Tier 2 

standards, which are already 

substantially more stringent than any of 

the standards proposed or contemplated 

for the other engine categories in this 

proposal. The Tier 2 standards also 

include evaporative emission standards, 

new transient test procedures, and 

additional exhaust emission standards 

to address off-cycle emissions, and 

diagnostic requirements. Stringent 

standards for this category of engines, 

and in particular, engines between 25 

and 50 horsepower (19 to 37 kW), have 

been completed in the recent past, and 

are currently being implemented. 

Because of that we do not have 

information on the actual Tier 2 

technology that manufacturers will use 

and do not have information at this time 

on possible advances in technology 

beyond Tier 2. We therefore believe the 

evidence provided in the recently 

promulgated rulemaking continues to 

represent the best available information 

regarding the appropriate level of 

standards for these engines under 

section 213 at this time. California Air 

Resources Board (ARB) has adopted an 

additional level of emission control for 

Large SI engines starting with the 2010 

model year. However, as described in 

Section I.D.1, their new standards 

would not increase overall stringency 

beyond that reflected in the federal 

standards. As a result, we believe it 

would be inappropriate to pursue more 

stringent emission standards for these 

engines in this rulemaking. 

Note that the Large SI standards apply 

to nonroad spark-ignition engines above 

19 kW. However, we adopted a special 

provision for engine families where 

production engines have total 

displacement at or below 1000 cc and 

maximum power at or below 30 kW, 

allowing these engine families to 

instead certify to the applicable 

standards for Small SI engines. 

(4) Recreational Vehicles 

We adopted exhaust and evaporative 

emission standards for recreational 

vehicles in our November 8, 2002 final 

rule (67FR68242). These standards 

apply to all-terrain vehicles, offhighway motorcycles, and 

snowmobiles.8 These exhaust emission 

standards will be fully phased in 

starting with the 2007 model year. The 

evaporative emission standards apply 

starting with the 2008 model year. 

Recreational vehicles will soon be 

subject to permeation requirements that 

are very similar to the requirements 

proposed in this rulemaking. We have 

also learned more about controlling 

running losses and diffusion emissions 

that may eventually lead us to propose 

comparable standards for recreational 

vehicles. We expect to revisit these 

questions in the context of a rulemaking 

to modify the duty cycle for all-terrain 

vehicles, as described below. 

Considering these new requirements for 

recreational vehicles in this later 

rulemaking would give us additional 

time to collect information to better 

understand the feasibility, costs, and 

benefits of applying these requirements 

to recreational vehicles. 

The following sections describe the 

state of technology and regulatory 

requirements for the different types of 

recreational vehicles. 

(a) All-Terrain Vehicles 

The regulations for all-terrain vehicles 

(ATV) specify testing based on a 

chassis-based transient procedure. 

However, on an interim basis, we are 

permitting manufacturers the option to 

use a steady-state engine-based 

procedure to allow manufacturers an 

opportunity to develop the field 

operating data needed to determine if 

ATV operation is dominantly steady 

state or transient in nature and to 

develop an appropriate emission test 

cycle from that information. The 

emissions test procedure and duty cycle 

are critical to getting the degree of 

emission control expected from these 

engines. We are continuing to work 

toward a resolution of this test cycle 

development initiative in a separate 

action. The anticipated changes to the 

test cycle raise new questions we will 

need to work through before we are 

prepared to change the existing 

regulation and perhaps pursue new 

emission control requirements. In 

particular, we will need to further 

explore the extent to which the new 

duty cycle represents in-use operation 

and whether engine or chassis testing is 

more appropriate in simulating in-use 

operation for accurate emission 

characterization and measurements. We 

believe it is appropriate to consider 

more stringent exhaust emission 

standards for these engines after we 

have had the opportunity to address the 

emission test cycle issue and to thus 

establish a long-term testing protocols 

and related requirements. 

(b) Off-Highway Motorcycles 

For off-highway motorcycles, 

manufacturers are in many cases making 

a substantial transition to move away 

from two-stroke engines in favor of fourstroke engines. This transition is now 

underway. While it may eventually be 

appropriate to apply aftertreatment or 

other additional emission control 

technologies to off-highway 

motorcycles, we need more time for this 

transition to be completed and to assess 

the success of aftertreatment 

technologies such as catalysts on similar 

applications such as highway 

motorcycles. As EPA and manufacturers 

learn more in implementing emission 

standards, we would expect to be able 

to better judge the potential for broadly 

applying new technology to achieve 

further emission reductions from offhighway motorcycles. 

(c) Snowmobiles 

In our November 8, 2002 final rule we 

set three phases of exhaust emission 

standards for snowmobiles (67 FR 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28103 

9Only about 3 percent of snowmobiles are rated 

below 50 horsepower. 

68242). Environmental and industry 

groups challenged the third phase of 

these standards. The court decision 

upheld much of EPA’s reasoning for the 

standards, but vacated the NOX standard 

and remanded the CO and HC standards 

to clarify the analysis and evidence 

upon which the standards are based. 

See Bluewater Network, et al v. EPA, 

370 F 3d 1 (D.C. Cir. 2004). A large 

majority of snowmobile engines are 

rated below 50 hp and there is still a 

fundamental need for time to pass to 

allow us to assess the success of 4 stroke 

engine technology in the market place. 

This is an important of the assessment 

we need to conduct with regard to 2012 

and later model year emission 

standards. Thus we believe is 

appropriate to address this in a separate 

rulemaking.9 We expect to complete 

that work with sufficient lead time for 

manufacturers to meet any revised 

Phase 3 standards that we might adopt 

for the 2012 model year, consistent with 

the original rulemaking requirements. 

(5) Nonroad Diesel Engines 

The 2004 Consolidated 

Appropriations Act providing the 

specific statutory direction for this 

rulemaking focuses on nonroad sparkignition engines. Nonroad diesel 

engines are therefore not included 

within the scope of that Congressional 

mandate. However, we have gone 

through several rulemakings to set 

standards for these engines under the 

broader authority of Clean Air Act 

section 213. In particular, we have 

divided nonroad diesel engines into 

three groups for setting emission 

standards. We adopted a series of 

standards for locomotives on April 16, 

1998, including requirements to certify 

engines to emission standards when 

they are rebuilt (63 FR 18978). We also 

adopted emission standards for marine 

diesel engines over several different 

rulemakings, as described in Table I–2. 

These included separate actions for 

engines below 37 kW, engines installed 

in oceangoing vessels, engines installed 

in commercial vessels involved in 

inland and coastal waterways, and 

engines installed in recreational vessels. 

We have recently proposed new 

emission standards for both locomotive 

and marine diesel engines (72 FR 15938, 

April 3, 2007). 

Finally, all other nonroad diesel 

engines are grouped together for EPA’s 

emission standards. We have adopted 

multiple tiers of increasingly stringent 

standards in three separate rulemakings, 

as described in Table I–2. We most 

recently adopted Tier 4 standards based 

on the use of ultra-low sulfur diesel fuel 

and the application of exhaust 

aftertreatment technology (69 FR 38958, 

June 29, 2004). 

D. Putting This Proposal Into 

Perspective 

Most manufacturers that will be 

subject to this rulemaking are also 

affected by regulatory developments in 

California and in other countries. Each 

of these is described in more detail 

below. 

(1) State Initiatives 

Clean Air Act section 209 prohibits 

California and other states from setting 

emission standards for new motor 

vehicles and new motor vehicle engines, 

but authorizes EPA to waive this 

prohibition for California, in which case 

other states may adopt California’s 

standards. Similar preemption and 

waiver provisions apply for emission 

standards for nonroad engines and 

vehicles, whether new or in-use. 

However for new locomotives, new 

engines used in locomotives, and new 

engines used in farm or construction 

equipment with maximum power below 

130 kW, California and other states are 

preempted and there is no provision for 

a waiver of preemption. In addition, in 

section 428 of the amendment to the 

2004 Consolidated Appropriations Act, 

Congress further precluded other states 

from adopting new California standards 

for nonroad spark-ignition engines 

below 50 horsepower. In addition, the 

amendment required that we 

specifically address the safety 

implications of any California standards 

for these engines before approving a 

waiver of federal preemption. We are 

proposing to codify these changes to 

preemption in this rule. 

California ARB has adopted 

requirements for five groups of nonroad 

engines: (1) Diesel- and Otto-cycle small 

off-road engines rated under 19 kW; (2) 

spark-ignition engines used for marine 

propulsion; (3) land-based nonroad 

recreational engines, including those 

used in all-terrain vehicles, off-highway 

motorcycles, go-carts, and other similar 

vehicles; (4) new nonroad spark-ignition 

engines rated over 19 kW not used in 

recreational applications; and (5) new 

land-based nonroad diesel engines rated 

over 130 kW. They have also approved 

a voluntary registration and control 

program for existing portable 

equipment. 

In the 1990s California ARB adopted 

Tier 1 and Tier 2 standards for Small SI 

engines consistent with the federal 

requirements. In 2003, they moved 

beyond the federal program by adopting 

exhaust HC+NOX emission standards of 

10 g/kW-hr for Class I engines starting 

in the 2007 model year and 8 g/kW-hr 

for Class II engines starting in the 2008 

model year. In the same rule they 

adopted evaporative emission standards 

for nonhandheld equipment, requiring 

control of fuel tank permeation, fuel line 

permeation, diurnal emissions, and 

running losses. 

California ARB has adopted two tiers 

of exhaust emission standards for 

outboard and personal watercraft 

engines beyond EPA’s original 

standards. The most recent standards, 

which apply starting in 2008, require 

HC+NOX emission levels as low as 16 g/ 

kW-hr. For sterndrive and inboard 

engines, California has adopted a 5 g/ 

kW-hr HC+NOX emission standard for 

2008 and later model year engines, with 

testing underway to confirm the 

feasibility of standards. California ARB’s 

marine programs include no standards 

for exhaust CO emissions or evaporative 

emissions. 

The California emission standards for 

recreational vehicles have a different 

form than the comparable EPA 

standards but are roughly equivalent in 

stringency. The California standards 

include no standards for controlling 

evaporative emissions. Another 

important difference between the two 

programs is California ARB’s reliance on 

a provision allowing noncompliant 

vehicles to be used in certain areas that 

are less environmentally sensitive as 

long as they have a specified red sticker 

that would identify their lack of 

emission controls to prevent them from 

operating in other areas. 

California ARB in 1998 adopted 

requirements that apply to new nonroad 

engines rated over 25 hp produced for 

California, with standards phasing in 

from 2001 through 2004. Texas has 

adopted these initial California ARB 

emission standards statewide starting in 

2004. More recently, California ARB has 

proposed exhaust emission standards 

and new evaporative emission standards 

for these engines, consistent with EPA’s 

2007 model year standards. Their 

proposal also included an additional 

level of emission control for Large SI 

engines starting with the 2010 model 

year. However, their proposed standards 

would not increase overall stringency 

beyond that reflected in the federal 

standards. Rather, they aim to achieve 

reductions in HC+NOX emissions by 

removing the flexibility incorporated 

into the federal standards allowing 

manufacturers to have higher HC+NOX

emissions by certifying to a more 

stringent CO standard. 


sroberts on PROD1PC70 with PROPOSALS
28104 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(2) Actions in Other Countries 

While the proposed emission 

standards will apply only to engines 

sold in the United States, we are aware 

that manufacturers in many cases are 

selling the same products into other 

countries. To the extent that we have 

the same emission standards as other 

countries, manufacturers can contribute 

to reducing air emissions without being 

burdened by the costs associated with 

meeting differing or inconsistent 

regulatory requirements. The following 

discussion describes our understanding 

of the status of emission standards in 

countries outside the United States. 

Regulations for spark ignition engines in 

handheld and nonhandheld equipment are 

included in the ‘‘Directive 97/68/EC of the 

European Parliament and of the Council of 16 

December 1997 on the approximation of the 

laws of the Member States relating to 

measures against the emission of gaseous and 

particulate pollutants from internal 

combustion engines to be installed in nonroad mobile machinery (OJ L 59, 27.2.1998, 

p. 1)’’, as amended by ‘‘Directive 2002/88/EC 

of the European Parliament and of the 

Council of 9 December 2002’’. The Stage I 

emission standards are to be met by all 

handheld and nonhandheld engines by 24 

months after entry into force of the Directive 

(as noted in a December 9, 2002 amendment 

to Directive 97/68/EC). The Stage I emission 

standards are similar to the U.S. EPA’s Phase 

1 emission standards for handheld and 

nonhandheld engines. The Stage II emission 

standards are implemented over time for the 

various handheld and nonhandheld engine 

classes from 2005 to 2009 with handheld 

engines ≥ 50cc on August 1, 2008. The Stage 

II emission standards are similar to EPA’s 

Phase 2 emission standards for handheld and 

nonhandheld engines. Six months after these 

dates Member States shall permit placing on 

the market of engines, whether or not already 

installed in machinery, only if they meet the 

requirements of the Directive. 

The European Commission has 

adopted emission standards for 

recreational marine engines, including 

both diesel and gasoline engines. These 

requirements apply to all new engines 

sold in member countries and began in 

2006 for four-stroke engines and in 2007 

for two-stroke engines. Table I–3 

presents the European standards for 

diesel and gasoline recreational marine 

engines. The numerical emission 

standards for NOX are based on the 

applicable standard from MARPOL 

Annex VI for marine diesel engines (See 

Table I–3). The European standards are 

roughly equivalent to the nonroad diesel 

Tier 1 emission standards for HC and 

CO. Emission measurements under the 

European standards rely on the ISO D2 

duty cycle for constant-speed engines 

and the ISO E5 duty cycle for other 

engines. 

TABLE I–3.—EUROPEAN EMISSION STANDARDS FOR RECREATIONAL MARINE ENGINES

[g/kW-hr] 

Engine Type HC NOX CO PM 

Two-Stroke Spark-Ignition ......................................................................... 30 + 100/P0.75 10.0 150 + 600/P 

Four-Stroke Spark-Ignition ......................................................................... 6 + 50/P0.75 15.0 150 + 600/P 

Compression-Ignition ................................................................................. 1.5 + 2/P0.5 9.8 5.0 1.0 

* P = rated power in kilowatts (kW) 

E. What Requirements Are We 

Proposing? 

EPA’s emission control provisions 

require engine, vessel and equipment 

manufacturers to design and produce 

their products to meet the emission 

standards we adopt. To ensure that 

engines, vessels and equipment meet 

the expected level of emission control, 

we also require compliance with a 

variety of additional requirements, such 

as certification, labeling engines, and 

meeting warranty requirements. The 

following sections provide a brief 

summary of the new requirements we 

are proposing in this rulemaking. See 

the later sections for a full discussion of 

the proposal. 

(1) Marine SI Engines and Vessels 

We are proposing a more stringent 

level of emission standards for outboard 

and personal watercraft engines starting 

with the 2009 model year. The proposed 

standards for engines above 40 kW are 

16 g/kW-hr for HC+NOX and 200 g/kWhr for CO. For engines below 40 kW, the 

standards increase gradually based on 

the engine’s maximum power. We 

expect manufacturers to meet these 

standards with improved fueling 

systems and other in-cylinder controls. 

The levels of the standards are 

consistent with the requirements 

recently adopted by California ARB 

with the advantage of a simplified form 

of the standard for different power 

ratings and with a CO emission 

standard. We are not pursuing catalystbased emission standards for outboard 

and personal watercraft engines. As is 

discussed later in this preamble, the 

application of catalyst-based standards 

to the marine environment creates 

special technology challenges that must 

be addressed. Unlike the sterndrive/ 

inboard engines discussed in the next 

paragraph, outboard and personal 

watercraft engines are not built from 

automotive engine blocks and are not as 

easily amenable to the fundamental 

engine modifications, fuel system 

upgrades, and other engine control 

modifications needed to get acceptable 

catalyst performance. This proposal is 

an appropriate next step in the 

evolution of technology-based standards 

for outboard and personal watercraft 

engines as they are likely to lead to the 

elimination of carbureted two-stroke 

engines in favor of direct-injection twostroke engines and to encourage the fuel 

system upgrades and related engine 

modifications needed to achieve the 

required reductions and to potentially 

set the stage for future considerations. 

We are proposing new exhaust 

emission standards for sterndrive and 

inboard marine engines. The proposed 

standards are 5.0 g/kW-hr for HC+NOX

and 75.0 g/kW-hr for CO starting with 

the 2009 model year. We expect 

manufacturers to meet these standards 

with three-way catalysts and closedloop fuel injection. To ensure proper 

functioning of these emission control 

systems in use, we are proposing a 

requirement that engines have a 

diagnostic system for detecting a failure 

in the emission control system. For 

sterndrive and inboard marine engines 

at or above 373 kW with highperformance characteristics (generally 

referred to as ‘‘SD/I high-performance 

engines’’), we are proposing an HC+NOX

emission standard of 5.0 g/kW-hr and a 

CO standard of 350 g/kW-hr. We are 

also proposing a variety of other special 

provisions for these engines to reflect 

unique operating characteristics and to 

make it feasible to meet emission 

standards using emission credits. These 

standards are consistent with the 

requirements recently adopted by 

California ARB, with some adjustment 

to the provisions for SD/I highperformance engines and with a CO 

emission standard. 

The emission standards described 

above relate to engine operation over a 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28105 

prescribed duty cycle for testing in the 

laboratory. We are also proposing notto-exceed (NTE) standards that establish 

emission limits when engines operate 

under normal speed-load combinations 

that are not included in the duty cycles 

for the other engine standards. 

We are proposing new standards to 

control evaporative emissions for all 

Marine SI vessels. The new standards 

include requirements to control fuel 

tank permeation, fuel line permeation, 

and diurnal emissions, including 

provisions to ensure that refueling 

emissions do not increase. 

We are proposing to place these new 

regulations for Marine SI engines in 40 

CFR part 1045 rather than changing the 

current regulations in 40 CFR part 91. 

This new part will allow us to improve 

the clarity of regulatory requirements 

and update our regulatory compliance 

program to be consistent with the 

provisions we have recently adopted for 

other nonroad programs. We are also 

making a variety of changes to 40 CFR 

part 91 to make minor adjustments to 

the current regulations and to prepare 

for the transition to 40 CFR part 1045. 

(2) Small SI Engines and Equipment 

We are proposing HC+NOX exhaust 

emission standards of 10.0 g/kW-hr for 

Class I engines starting in the 2012 

model year and 8.0 g/kW-hr for Class II 

engines starting in the 2011 model year. 

For both classes of nonhandheld 

engines, we are proposing to maintain 

the existing CO standard of 610 g/kWhr. We expect manufacturers to meet 

these standards by improving engine 

combustion and adding catalysts. These 

standards are consistent with the 

requirements recently adopted by 

California ARB. 

For spark-ignition engines used in 

marine generators, we are proposing a 

more stringent Phase 3 CO emission 

standard of 5.0 g/kW-hr. This would 

apply equally to all sizes of engines 

subject to the Small SI standards. 

We are proposing new evaporative 

emission standards for both handheld 

and nonhandheld engines. The new 

standards include requirements to 

control permeation from fuel tanks and 

fuel lines. For nonhandheld engines we 

are also proposing to require control of 

diffusion emissions and running losses. 

We are proposing to place the new 

regulations for Small SI engines from 40 

CFR part 90 to 40 CFR part 1054. This 

new part will allow us to improve the 

clarity of regulatory requirements and 

update our regulatory compliance 

program to be consistent with the 

provisions we have recently adopted for 

other nonroad programs. 

F. How Is This Document Organized? 

Since this proposal covers a broad 

range of engines and equipment that 

vary in design and use, many readers 

may be interested only in certain 

aspects of the proposal. We have 

therefore attempted to organize this 

preamble in a way that allows each 

reader to focus on the material of 

particular interest. The Air Quality 

discussion in Section II, however, is 

general in nature and applies to all the 

categories covered by this proposal. 

The next several sections contain our 

proposal for Small SI engines and 

equipment and Marine SI engines and 

vessels. Sections III through V describe 

the proposed requirements related to 

exhaust emission standards for each of 

the affected engine categories, including 

standards, effective dates, testing 

information, and other specific 

requirements. Section VI details the 

proposed requirements related to 

evaporative emission requirements for 

all categories. Sections VII through IX 

contain some general concepts that are 

relevant to all of the engines, vessels 

and equipment covered by this 

proposal, such as certification 

requirements and general testing 

procedures and compliance provisions. 

Section X discusses how we took 

energy, noise, and safety factors into 

consideration for the proposed 

standards. 

Section XI describes a variety of 

proposed provisions that affect other 

categories of engines besides those that 

are the primary subject of this proposal. 

This includes the following changes: 

• We are proposing to reorganize the 

regulatory language related to 

preemption of state standards and to 

clarify certain provisions. We are also 

requesting comment regarding a petition 

to reconsider some of the provisions 

including the extent to which states may 

regulate the use and operation of 

nonroad engines and vehicles. 

• We are incorporating new 

provisions related to certification fees 

for newly regulated products covered by 

this proposal. This involves some 

restructuring of the regulatory language. 

We are also proposing various technical 

amendments, such as identifying an 

additional payment method, that would 

apply broadly to our certification 

programs. 

• We are proposing changes to 40 

CFR part 1068 to clarify how the 

provisions apply with respect to 

evaporative emission standards. We are 

also proposing various technical 

amendments. These changes would 

apply to all types of nonroad engines 

that are subject to the provisions of part 

1068. 

• We are proposing several technical 

amendments for Large SI engines and 

recreational vehicles, largely to 

maintain consistency across programs 

for different categories of engines and 

vehicles. 

• We are proposing to amend 

provisions related to the delegatedassembly exemption for heavy-duty 

highway engines as part of the effort to 

apply these provisions to Small SI 

engines, as described in Section V.E.2. 

• We are proposing to apply the new 

standards for Small SI engines to the 

comparable stationary engines. 

Section XII summarizes the projected 

impacts and benefits of this proposal. 

Finally, Sections XIII and XIV contain 

information about public participation 

and how we satisfy our various 

administrative requirements. 

II. Public Health and Welfare Effects 

The engines, vessels and equipment 

that would be subject to the proposed 

standards generate emissions of 

hydrocarbons (HC), nitrogen oxides 

(NOX), particulate matter (PM) and 

carbon monoxide (CO) that contribute to 

nonattainment of the National Ambient 

Air Quality Standards (NAAQS) for 

ozone, PM and CO. These engines, 

vessels and equipment also emit 

hazardous air pollutants (air toxics) that 

are associated with a host of adverse 

health effects. Emissions from these 

engines, vessels and equipment also 

contribute to visibility impairment and 

other welfare and environmental effects. 

The health and environmental effects 

associated with emissions from Small SI 

engines and equipment and Marine SI 

engines and vessels are a classic 

example of a negative externality (an 

activity that imposes uncompensated 

costs on others). With a negative 

externality, an activity’s social cost (the 

cost on society imposed as a result of 

the activity taking place) exceeds its 

private cost (the cost to those directly 

engaged in the activity). In this case, as 

described in this section, emissions 

from Small SI engines and equipment 

and Marine SI engines and vessels 

impose public health and 

environmental costs on society. The 

market system itself cannot correct this 

externality. The end users of the 

equipment and vessels are often 

unaware of the environmental impacts 

of their use for lawn care or recreation. 

Because of this, consumers fail to send 

the market a signal to provide cleaner 

equipment and vessels. In addition, 

producers of these engines, equipment, 

and vessels are rewarded for 

emphasizing other aspects of these 


sroberts on PROD1PC70 with PROPOSALS
28106 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

10U.S. EPA. Air Quality Criteria for Ozone and 

Related Photochemical Oxidants (Final). U.S. 

Environmental Protection Agency, Washington, DC, 

EPA/600/R–05/004aF–cF, 2006. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

11EPA’s review of the ozone NAAQS is underway 

and a proposal is scheduled for June 2007 with a 

final rule scheduled for March 2008. 

12U.S. EPA. Air Quality Criteria for Ozone and 

Related Photochemical Oxidants (Final). U.S. 

Environmental Protection Agency, Washington, DC, 

EPA/600/R–05/004aF–cF, 2006. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 13U.S. EPA (2007) Review of National Ambient 

Air Quality Standards for Ozone, Assessment of 

Scientific and Technical Information, OAQPS Staff 

Paper, EPA–452/R–07–003. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

products (e.g., total power). To correct 

this market failure and reduce the 

negative externality, it is necessary to 

give producers social cost signals. The 

standards EPA is proposing will 

accomplish this by mandating that 

Small SI engines and equipment and 

Marine SI engines and vessels reduce 

their emissions to a technologically 

feasible limit. In other words, with this 

proposed rule the costs of the services 

provided by these engines and 

equipment will account for social costs 

more fully. 

This section summarizes the general 

health and welfare effects of these 

emissions. Interested readers are 

encouraged to refer to the Draft RIA for 

more in-depth discussions. 

A. Ozone 

Ground-level ozone pollution is 

formed by the reaction of volatile 

organic compounds (VOC), of which HC 

are the major subset, and NOX in the 

lower atmosphere in the presence of 

heat and sunlight. These pollutants, 

often referred to as ozone precursors, are 

emitted by many types of pollution 

sources, such as highway and nonroad 

motor vehicles and engines (including 

those subject to this proposed rule), 

power plants, chemical plants, 

refineries, makers of consumer and 

commercial products, industrial 

facilities, and smaller area sources. The 

engine, vessel and equipment controls 

being proposed will reduce VOCs and 

NOX. 

The science of ozone formation, 

transport, and accumulation is 

complex.10 Ground-level ozone is 

produced and destroyed in a cyclical set 

of chemical reactions, many of which 

are sensitive to temperature and 

sunlight. When ambient temperatures 

and sunlight levels remain high for 

several days and the air is relatively 

stagnant, ozone and its precursors can 

build up and result in more ozone than 

typically would occur on a single hightemperature day. Ozone also can be 

transported into an area from pollution 

sources found hundreds of miles 

upwind, resulting in elevated ozone 

levels even in areas with low VOC or 

NOX emissions. 

The current ozone NAAQS, 

established by EPA in 1997, has an 8- 

hour averaging time.11 The 8-hour 

ozone NAAQS is based on welldocumented science demonstrating that 

more people were experiencing adverse 

health effects at lower levels of exertion, 

over longer periods, and at lower ozone 

concentrations than addressed by the 

previous one-hour ozone NAAQS. The 

current ozone NAAQS addresses ozone 

exposures of concern for the general 

population and populations most at 

risk, including children active outdoors, 

outdoor workers, and individuals with 

pre-existing respiratory disease, such as 

asthma. The 8-hour ozone NAAQS is 

met at an ambient air quality monitoring 

site when the average of the annual 

fourth-highest daily maximum 8-hour 

average ozone concentration over three 

years is less than or equal to 0.084 parts 

per million (ppm). 

(1) Health Effects of Ozone 

The health and welfare effects of 

ozone are well documented and are 

assessed in the EPA’s 2006 ozone Air 

Quality Criteria Document (ozone 

AQCD) and staff paper.12 13 Ozone can 

irritate the respiratory system, causing 

coughing, throat irritation, and/or 

uncomfortable sensation in the chest. 

Ozone can reduce lung function and 

make it more difficult to breathe deeply, 

and breathing may become more rapid 

and shallow than normal, thereby 

limiting a person’s activity. Ozone can 

also aggravate asthma, leading to more 

asthma attacks that require a doctor’s 

attention and/or the use of additional 

medication. Animal toxicologic 

evidence indicates that with repeated 

exposure, ozone can inflame and 

damage the lining of the lungs, which 

may lead to permanent changes in lung 

tissue and irreversible reductions in 

lung function. People who are more 

susceptible to effects associated with 

exposure to ozone include children, the 

elderly, and individuals with 

respiratory disease such as asthma. 

There is also suggestive evidence that 

certain people may have greater genetic 

susceptibility. Those with greater 

exposures to ozone, for instance due to 

time spent outdoors (e.g., outdoor 

workers), are also of concern. 

The recent ozone AQCD also 

examined relevant new scientific 

information that has emerged in the past 

decade, including the impact of ozone 

exposure on such health effects as 

changes in lung structure and 

biochemistry, inflammation of the 

lungs, exacerbation and causation of 

asthma, respiratory illness-related 

school absence, hospital admissions and 

premature mortality. Animal toxicologic 

studies have suggested potential 

interactions between ozone and PM 

with increased responses observed to 

mixtures of the two pollutants 

compared to either ozone or PM alone. 

The respiratory morbidity observed in 

animal studies along with the evidence 

from epidemiologic studies supports a 

causal relationship between acute 

ambient ozone exposures and increased 

respiratory-related emergency room 

visits and hospitalizations in the warm 

season. In addition, there is suggestive 

evidence of a contribution of ozone to 

cardiovascular-related morbidity and 

non-accidental and cardiopulmonary 

mortality. 

EPA typically quantifies ozone-related 

health impacts in its regulatory impact 

analyses (RIAs) when possible. In the 

analysis of past air quality regulations, 

ozone-related benefits have included 

morbidity endpoints and welfare effects 

such as damage to commercial crops. 

EPA has not recently included a 

separate and additive mortality effect for 

ozone, independent of the effect 

associated with fine particulate matter. 

For a number of reasons, including (1) 

Advice from the Science Advisory 

Board (SAB) Health and Ecological 

Effects Subcommittee (HEES) that EPA 

consider the plausibility and viability of 

including an estimate of premature 

mortality associated with short-term 

ozone exposure in its benefits analyses 

and (2) conclusions regarding the 

scientific support for such relationships 

in EPA’s 2006 Air Quality Criteria for 

Ozone and Related Photochemical 

Oxidants (the CD), EPA is in the process 

of determining how to appropriately 

characterize ozone-related mortality 

benefits within the context of benefits 

analyses for air quality regulations. As 

part of this process, we are seeking 

advice from the National Academy of 

Sciences (NAS) regarding how the 

ozone-mortality literature should be 

used to quantify the reduction in 

premature mortality due to diminished 

exposure to ozone, the amount of life 

expectancy to be added and the 

monetary value of this increased life 

expectancy in the context of health 

benefits analyses associated with 

regulatory assessments. In addition, the 

Agency has sought advice on 

characterizing and communicating the 

uncertainty associated with each of 

these aspects in health benefit analyses. 

Since the NAS effort is not expected 

to conclude until 2008, the agency is 

currently deliberating how best to 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28107 

14A map of the 8-hour ozone nonattainment areas 

is included in the RIA for this proposed rule. 

15Technical Support Document for the Final 

Clean Air Interstate Rule Air Quality Modeling. 

This document is available in Docket EPA–HQ–

OAR–2004–0008, Document # EPA–HQ–OAR–

2004–0008–0484. 

16We expect many of the 8-hour ozone 

nonattainment areas to adopt additional emission 

reduction programs but we are unable to quantify 

or rely upon future reductions from additional state 

and local programs that have not yet been adopted. 

17The Los Angeles South Coast Air Basin 8-hour 

ozone nonattainment area will have until June 15, 

2021 to reach attainment. 

characterize ozone-related mortality 

benefits in its rulemaking analyses in 

the interim. We do not quantify an 

ozone mortality benefit for the analysis 

of the proposed emission standards. So 

that we do not provide an incomplete 

picture of all of the benefits associated 

with reductions in emissions of ozone 

precursors, we have chosen not to 

include an estimate of total ozone 

benefits in the proposed RIA. By 

omitting ozone benefits in this proposal, 

we acknowledge that this analysis 

underestimates the benefits associated 

with the proposed standards. For more 

information regarding the quantified 

benefits included in this analysis, please 

refer to Chapter 8 of the Draft RIA. 

(2) Plant and Ecosystem Effects of 

Ozone 

Ozone contributes to many 

environmental effects, with impacts to 

plants and ecosystems being of most 

concern. Ozone can produce both acute 

and chronic injury in sensitive species 

depending on the concentration level 

and the duration of the exposure. Ozone 

effects also tend to accumulate over the 

growing season of the plant, so that even 

lower concentrations experienced for a 

longer duration have the potential to 

create chronic stress on vegetation. 

Ozone damage to plants includes visible 

injury to leaves and a reduction in food 

production through impaired 

photosynthesis, both of which can lead 

to reduced crop yields, forestry 

production, and use of sensitive 

ornamentals in landscaping. In addition, 

the reduced food production in plants 

and subsequent reduced root growth 

and storage below ground, can result in 

other, more subtle plant and ecosystems 

impacts. These include increased 

susceptibility of plants to insect attack, 

disease, harsh weather, interspecies 

competition and overall decreased plant 

vigor. The adverse effects of ozone on 

forest and other natural vegetation can 

potentially lead to species shifts and 

loss from the affected ecosystems, 

resulting in a loss or reduction in 

associated ecosystem goods and 

services. Lastly, visible ozone injury to 

leaves can result in a loss of aesthetic 

value in areas of special scenic 

significance like national parks and 

wilderness areas. The 2006 ozone AQCD 

presents more detailed information on 

ozone effects on vegetation and 

ecosystems. 

(3) Current and Projected 8-Hour Ozone 

Levels 

Currently, ozone concentrations 

exceeding the level of the 8-hour ozone 

NAAQS occur over wide geographic 

areas, including most of the nation’s 

major population centers.14 As of 

October, 2006 there are approximately 

157 million people living in 116 areas 

designated as not in attainment with the 

8-hour ozone NAAQS. There are 461 

full or partial counties that make up the 

116 8-hour ozone nonattainment areas. 

These numbers do not include the 

people living in areas where there is a 

potential risk of failing to maintain or 

achieve the 8-hour ozone NAAQS in the 

future. 

EPA has already adopted many 

emission control programs that are 

expected to reduce ambient ozone 

levels. These control programs include 

the Clean Air Interstate Rule (70 FR 

25162, May 12, 2005), as well as many 

mobile source rules, some of which are 

described in Section I of this preamble. 

As a result of these programs, the 

number of areas that fail to meet the 8- 

hour ozone NAAQS in the future is 

expected to decrease. 

Based on the recent ozone modeling 

performed for the CAIR analysis, barring 

additional local ozone precursor 

controls, we estimate 37 eastern 

counties (where 24 million people are 

projected to live) will exceed the 8-hour 

ozone NAAQS in 2010.15 16 An 

additional 148 eastern counties (where 

61 million people are projected to live) 

are expected to be within 10 percent of 

the 8-hour ozone NAAQS in 2010. 

States with 8-hour ozone 

nonattainment areas will be required to 

take action to bring those areas into 

compliance in the future. Based on the 

final rule designating and classifying 8- 

hour ozone nonattainment areas (69 FR 

23951, April 30, 2004), most 8-hour 

ozone nonattainment areas will be 

required to attain the 8-hour ozone 

NAAQS in the 2007 to 2014 time frame 

and then be required to maintain the 8- 

hour ozone NAAQS thereafter.17

Emissions of ozone precursors from the 

engines, vessels and equipment subject 

to the proposed standards contribute to 

ozone in many, if not all, of these areas. 

Therefore, the expected HC and NOX

reductions from the standards proposed 

in this action will be useful to states in 

attaining or maintaining the 8-hour 

ozone NAAQS. 

EPA’s review of the ozone NAAQS is 

currently underway and a proposed 

decision in this review is scheduled for 

June 2007 with a final rule scheduled 

for March 2008. If the ozone NAAQS is 

revised then new nonattainment areas 

could be designated. While EPA is not 

relying on it for purposes of justifying 

this rule, the emission reductions from 

this rulemaking would also be helpful to 

states if there is an ozone NAAQS 

revision. 

(4) Air Quality Modeling for Ozone 

To model the ozone air quality 

benefits of this rule we used the 

Comprehensive Air Quality Model with 

Extension (CAMx). CAMx simulates the 

numerous physical and chemical 

processes involved in the formation, 

transport, and destruction of ozone. 

This model is commonly used in 

developing attainment demonstration 

State Implementation Plans (SIPs) as 

well as estimating the ozone reductions 

expected to occur from a reduction in 

emitted pollutants. Meteorological data 

are developed by a separate program, 

the Regional Atmospheric Modeling 

System (RAMS), and input into CAMx. 

The simulation periods modeled by 

CAMx include several multi-day 

periods when ambient measurements 

were representative of ozone episodes 

over the eastern United States: June 12–

24, July 5–15 and August 7–21, 1995. 

The modeling domain we used includes 

the 37 eastern states modeled in the 

Clean Air Interstate Rule (CAIR). More 

detailed information is included in the 

Air Quality Modeling Technical 

Support Document (TSD), which is 

located in the docket for this rule. 

Note that the emission control 

scenarios used in the air quality and 

benefits modeling are slightly different 

than the emission control program in 

this proposal reflecting further 

refinement of the regulatory program 

since we performed the air quality 

modeling for this proposal. Additional 

detail on the difference between the 

modeled and proposed inventories is 

included in Section 3.6 of the Draft RIA. 

(5) Results of the Air Quality Modeling 

for Ozone 

According to air quality modeling 

performed for this proposal, the 

proposed controls for emissions from 

the engines, vessels and equipment 

subject to the proposed standards are 

expected to provide nationwide 

improvements in ozone levels. On a 

population-weighted basis, the average 

modeled future-year 8-hour ozone 

design values would decrease by 0.7 


sroberts on PROD1PC70 with PROPOSALS
28108 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

18A design value is the monitored reading used 

by EPA to determine an area’s air quality status; 

e.g., for ozone, the fourth highest reading measured 

over the most recent three years is the design value. 

(http://www.epa.gov/OCEPAterms/dterms.html). 

19U.S. EPA (2004) Air Quality Criteria for 

Particulate Matter (Oct 2004), Volume I Document 

No. EPA600/P–99/002aF and Volume II Document 

No. EPA600/P–99/002bF. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

This document is available electronically at: 

http://cfpub2.epa.gov/ncea/cfm/ 

recordisplay.cfm?deid=87903. 

20U.S. EPA (2005) Review of the National 

Ambient Air Quality Standard for Particulate 

Matter: Policy Assessment of Scientific and 

Technical Information, OAQPS Staff Paper. EPA–

452/R–05–005. This document is available 

electronically at http://www.epa.gov/ttn/naaqs/ 

standards/pm/s_pm_cr_sp.html and in Docket 

EPA–HQ–OAR–2004–0008. 

21Laden, F.; Neas, L.M.; Dockery, D.W.; 

Schwartz, J. (2000) Association of Fine Particulate 

Matter from Different Sources with Daily Mortality 

in Six U.S. Cities. Environmental Health 

Perspectives 108: 941–947. 

22 Janssen, N.A.H.; Schwartz, J.; Zanobetti, A.; 

Suh, H.H. (2002) Air Conditioning and SourceSpecific Particles as Modifiers of the Effect of PM10

on Hospital Admissions for Heart and Lung Disease. 

Environmental Health Perspectives 110: 43–49. 

23Riediker, M.; Cascio, W.E.; Griggs, T.R..; Herbst, 

M.C.; Bromberg, P.A.; Neas, L.; Williams, R.W.; 

Devlin, R.B. (2003) Particulate Matter Exposures in 

Cars is Associated with Cardiovascular Effects in 

Healthy Young Men. Am. J. Respir. Crit. Care Med. 

169: 934–940. 

24National Research Council, 1993. Protecting 

Visibility in National Parks and Wilderness Areas. 

National Academy of Sciences Committee on Haze 

in National Parks and Wilderness Areas. National 

Academy Press, Washington, DC. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

ppb in 2020 and 0.8 ppb in 2030.18

Within areas predicted to have design 

values greater than 85 ppb the average 

decrease would be somewhat higher: 0.8 

ppb in 2020 and 1.0 ppb in 2030. 

B. Particulate Matter 

Particulate matter (PM) represents a 

broad class of chemically and physically 

diverse substances. It can be principally 

characterized as discrete particles that 

exist in the condensed (liquid or solid) 

phase spanning several orders of 

magnitude in size. PM is further 

described by breaking it down into size 

fractions. PM10 refers to particles 

generally less than or equal to 10 

micrometers (μm) in diameter. PM2.5

refers to fine particles, those particles 

generally less than or equal to 2.5 μm in 

diameter. Inhalable (or ‘‘thoracic’’ ) 

coarse particles refer to those particles 

generally greater than 2.5 μm but less 

than or equal to 10 μm in diameter. 

Ultrafine PM refers to particles with 

diameters generally less than 100 

nanometers (0.1 μm). Larger particles 

(>10 μm) tend to be removed by the 

respiratory clearance mechanisms, 

whereas smaller particles are deposited 

deeper in the lungs. 

Fine particles are produced primarily 

by combustion processes and by 

transformations of gaseous emissions 

(e.g., SOx, NOX and VOCs) in the 

atmosphere. The chemical and physical 

properties of PM2.5 may vary greatly 

with time, region, meteorology and 

source category. Thus, PM2.5, may 

include a complex mixture of different 

pollutants including sulfates, nitrates, 

organic compounds, elemental carbon 

and metal compounds. These particles 

can remain in the atmosphere for days 

to weeks and travel through the 

atmosphere hundreds to thousands of 

kilometers. 

EPA’s final rule to amend the PM 

NAAQS addressed revisions to the 

primary and secondary NAAQS for PM 

to provide increased protection of 

public health and welfare, respectively 

(71 FR 61144, October 17, 2006). The 

primary PM2.5 NAAQS include a shortterm (24-hour) and a long-term (annual) 

standard. The level of the 24-hour PM2.5

NAAQS has been revised from 65μg/m 3

to 35μg/m 3 to provide increased 

protection against health effects 

associated with short-term exposures to 

fine particles. The current form of the 

24-hour PM2.5 standard was retained 

(e.g., based on the 98th percentile 

concentration averaged over three 

years). The level of the annual PM2.5

NAAQS was retained at 15μg/m 3, 

continuing protection against health 

effects associated with long-term 

exposures. The current form of the 

annual PM2.5 standard was retained as 

an annual arithmetic mean averaged 

over three years, however, the following 

two aspects of the spatial averaging 

criteria were narrowed: (1) The annual 

mean concentration at each site shall be 

within 10 percent of the spatially 

averaged annual mean, and (2) the daily 

values for each monitoring site pair 

shall yield a correlation coefficient of at 

least 0.9 for each calendar quarter. With 

regard to the primary PM10 standards, 

the 24-hour PM10 NAAQS was retained 

at a level of 150μg/m 3 not to be 

exceeded more than once per year on 

average over a three-year period. Given 

that the available evidence does not 

suggest an association between longterm exposure to coarse particles at 

current ambient levels and health 

effects, EPA has revoked the annual 

PM10 standard. 

With regard to the secondary PM 

standards, EPA has revised these 

standards to be identical in all respects 

to the revised primary standards. 

Specifically, EPA has revised the 

current 24-hour PM2.5 secondary 

standard by making it identical to the 

revised 24-hour PM2.5 primary standard, 

retained the annual PM2.5 and 24-hour 

PM10 secondary standards, and revoked 

the annual PM10 secondary standards. 

This suite of secondary PM standards is 

intended to provide protection against 

PM-related public welfare effects, 

including visibility impairment, effects 

on vegetation and ecosystems, and 

material damage and soiling. 

(1) Health Effects of PM 

Scientific studies show ambient PM is 

associated with a series of adverse 

health effects. These health effects are 

discussed in detail in the 2004 EPA 

Particulate Matter Air Quality Criteria 

Document (PM AQCD) as well as the 

2005 PM Staff Paper.19 20 Further 

discussion of health effects associated 

with PM can also be found in the Draft 

RIA. 

Health effects associated with shortterm exposures (e.g. hours to days) in 

ambient PM2.5 include premature 

mortality, increased hospital 

admissions, heart and lung diseases, 

increased cough, adverse lowerrespiratory symptoms, decrements in 

lung function and changes in heart rate 

rhythm and other cardiac effects. 

Studies examining populations exposed 

to different levels of air pollution over 

a number of years, including the 

Harvard Six Cities Study and the 

American Cancer Society Study, show 

associations between long-term 

exposure to ambient PM2.5 and both 

total and cardiorespiratory mortality. In 

addition, the reanalysis of the American 

Cancer Society Study shows an 

association between fine particle and 

sulfate concentrations and lung cancer 

mortality. The engines, vessels and 

equipment covered in this proposal 

contribute to both acute and chronic 

PM2.5 exposures. Additional 

information on acute exposures is 

available in Section 2.5 of the Draft RIA. 

Recently, several studies have 

highlighted the adverse effects of PM 

specifically from mobile sources.21 22

Studies have also focused on health 

effects due to PM exposures on or near 

roadways.23 Although these studies 

include all air pollution sources, 

including both spark-ignition (gasoline) 

and diesel powered vehicles, they 

indicate that exposure to PM emissions 

near roadways, thus dominated by 

mobile sources, are associated with 

health effects. The proposed controls 

may help to reduce exposures, and 

specifically exposures near the source, 

to mobile source related PM2.5. 

(2) Visibility 

Visibility can be defined as the degree 

to which the atmosphere is transparent 

to visible light.24 Visibility impairment 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28109 

This book can be viewed on the National Academy 

Press Website at http://www.nap.edu/books/ 

0309048443/html/. 

25See discussion in U.S. EPA , National Ambient 

Air Quality Standards for Particulate Matter; 

Proposed Rule; January 17, 2006, Vol71 p 2676. 

This information is available electronically at 

http://epa.gov/fedrgstr/EPA-AIR/2006/January/Day17/a177.pdf. 

26U.S. EPA (2004) Air Quality Criteria for 

Particulate Matter (Oct 2004), Volume I Document 

No. EPA600/P–99/002aF and Volume II Document 

No. EPA600/P–99/002bF. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

27U.S. EPA (2005) Review of the National 

Ambient Air Quality Standard for Particulate 

Matter: Policy Assessment of Scientific and 

Technical Information, OAQPS Staff Paper. EPA–

452/R–05–005. This document is available in 

Docket EPA–HQ–OAR–2004–0008. 

28These areas are defined in section 162 of the 

Act as those national parks exceeding 6,000 acres, 

wilderness areas and memorial parks exceeding 

5,000 acres, and all international parks which were 

in existence on August 7, 1977. 29US EPA, Air Quality Designations and 

Classifications for the Fine Particles (PM2.5) 

National Ambient Air Quality Standards, December 

17, 2004. (70 FR 943, Jan 5. 2005) This document 

is also available on the web at: http://www.epa.gov/ 

pmdesignations/. 30US EPA. Regional Haze Regulations, July 1, 

1999. (64 FR 35714, July 1, 1999). 31The deciview metric describes perceived visual 

changes in a linear fashion over its entire range, 

analogous to the decibel scale for sound. A 

deciview of 0 represents pristine conditions. The 

higher the deciview value, the worse the visibility, 

and an improvement in visibility is a decrease in 

deciview value. 

32U.S. EPA (2000) Deposition of Air Pollutants to 

the Great Waters: Third Report to Congress. Office 

of Air Quality Planning and Standards. EPA–453/ 

R–00–0005. 

manifests in two principal ways: as 

local visibility impairment and as 

regional haze.25 Local visibility 

impairment may take the form of a 

localized plume, a band or layer of 

discoloration appearing well above the 

terrain as a result from complex local 

meteorological conditions. 

Alternatively, local visibility 

impairment may manifest as an urban 

haze, sometimes referred to as a ‘‘brown 

cloud.’’ This urban haze is largely 

caused by emissions from multiple 

sources in the urban areas and is not 

typically attributable to only one nearby 

source or to long-range transport. The 

second type of visibility impairment, 

regional haze, usually results from 

multiple pollution sources spread over 

a large geographic region. Regional haze 

can impair visibility over large regions 

and across states. 

Visibility is important because it has 

direct significance to people’s 

enjoyment of daily activities in all parts 

of the country. Individuals value good 

visibility for the well-being it provides 

them directly, where they live and 

work, and in places where they enjoy 

recreational opportunities. Visibility is 

also highly valued in significant natural 

areas such as national parks and 

wilderness areas, and special emphasis 

is given to protecting visibility in these 

areas. For more information on visibility 

see the 2004 PM AQCD as well as the 

2005 PM Staff Paper.26 27

Fine particles are the major cause of 

reduced visibility in parts of the United 

States. To address the welfare effects of 

PM on visibility, EPA set secondary 

PM2.5 standards that would act in 

conjunction with the establishment of a 

regional haze program. In setting this 

secondary standard, EPA concluded that 

PM2.5 causes adverse effects on visibility 

in various locations, depending on PM 

concentrations and factors such as 

chemical composition and average 

relative humidity. The secondary 

(welfare-based) PM2.5 NAAQS was 

established as equal to the suite of 

primary (health-based) NAAQS. 

Furthermore, section 169 of the Act 

provides additional authorities to 

remedy existing visibility impairment 

and prevent future visibility impairment 

in the 156 national parks, forests and 

wilderness areas categorized as 

mandatory class I Federal areas (62 FR 

38680–81, July 18, 1997).28 In July 1999 

the regional haze rule (64 FR 35714) was 

put in place to protect the visibility in 

mandatory class I federal areas. 

Visibility can be said to be impaired in 

both PM2.5 nonattainment areas and 

mandatory class I federal areas. 

(a) Current Visibility Impairment 

Recently designated PM2.5

nonattainment areas indicate that, as of 

October 2006, almost 90 million people 

live in nonattainment areas for the 1997 

PM2.5 NAAQS. Thus, at least these 

populations would likely be 

experiencing visibility impairment, as 

well as many thousands of individuals 

who travel to these areas. In addition, 

while visibility trends have improved in 

mandatory Class I federal areas, the 

most recent data show that these areas 

continue to suffer from visibility 

impairment. In summary, visibility 

impairment is experienced throughout 

the U.S., in multi-state regions, urban 

areas, and remote mandatory class I 

federal areas.29 30 The mandatory class I 

federal areas are listed in Chapter 2 of 

the RIA for this action. The areas that 

have design values above the 1997 PM2.5

NAAQS are also listed in Chapter 2 of 

the RIA for this action. 

(b) Future Visibility Impairment 

Recent modeling for the CAIR was 

used to project visibility conditions in 

mandatory class I federal areas across 

the country in 2015. The results for the 

mandatory class I federal areas suggest 

that these areas are predicted to 

continue to have annual average 

deciview levels above background in the 

future.31 Modeling done for the PM 

NAAQS projected PM2.5 levels in 2015. 

These projections include all sources of 

PM2.5, including the engines, vessels 

and equipment covered in this rule, and 

suggest that PM2.5 levels above the 

NAAQS will persist into the future. 

The engines, vessels and equipment 

that would be subject to these proposed 

standards contribute to visibility 

concerns in these areas through both 

their primary PM emissions and their 

VOC and NOX emissions, which 

contribute to the formation of secondary 

PM2.5. Reductions in these direct and 

secondary PM emissions will help to 

improve visibility across the nation, 

including mandatory class I federal 

areas. 

(3) Atmospheric Deposition 

Wet and dry deposition of ambient 

particulate matter delivers a complex 

mixture of metals (e.g., mercury, zinc, 

lead, nickel, aluminum, cadmium), 

organic compounds (e.g., POM, dioxins, 

furans) and inorganic compounds (e.g., 

nitrate, sulfate) to terrestrial and aquatic 

ecosystems. The chemical form of the 

compounds deposited is impacted by a 

variety of factors including ambient 

conditions (e.g., temperature, humidity, 

oxidant levels) and the sources of the 

material. Chemical and physical 

transformations of the particulate 

compounds occur in the atmosphere as 

well as the media onto which they 

deposit. These transformations in turn 

influence the fate, bioavailability and 

potential toxicity of these compounds. 

Atmospheric deposition has been 

identified as a key component of the 

environmental and human health 

hazard posed by several pollutants 

including mercury, dioxin and PCBs.32

Adverse impacts on water quality can 

occur when atmospheric contaminants 

deposit to the water surface or when 

material deposited on the land enters a 

waterbody through runoff. Potential 

impacts of atmospheric deposition to 

waterbodies include those related to 

both nutrient and toxic inputs. Adverse 

effects to human health and welfare can 

occur from the addition of excess 

particulate nitrate nutrient enrichment, 

which contributes to toxic algae blooms 

and zones of depleted oxygen, which 

can lead to fish kills, frequently in 

coastal waters. Particles contaminated 

with heavy metals or other toxins may 

lead to the ingestion of contaminated 

fish, ingestion of contaminated water, 

damage to the marine ecology, and 

limited recreational uses. Several 


sroberts on PROD1PC70 with PROPOSALS
28110 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

33U.S. EPA (2004) National Coastal Condition 

Report II. Office of Research and Development/ 

Office of Water. EPA–620/R–03/002. 34 Gao, Y., E.D. Nelson, M.P. Field, et al. 2002. 

Characterization of atmospheric trace elements on 

PM2.5 particulate matter over the New York-New 

Jersey harbor estuary. Atmos. Environ. 36: 1077–

1086. 35 Kim, G., N. Hussain, J.R. Scudlark, and T.M. 

Church. 2000. Factors influencing the atmospheric 

depositional fluxes of stable Pb, 210Pb, and 7Be 

into Chesapeake Bay. J. Atmos. Chem. 36: 65–79. 

36Lu, R., R.P. Turco, K. Stolzenbach, et al. 2003. 

Dry deposition of airborne trace metals on the Los 

Angeles Basin and adjacent coastal waters. J. 

Geophys. Res. 108(D2, 4074): AAC 11–1 to 11–24. 

37Marvin, C.H., M.N. Charlton, E.J. Reiner, et al. 

2002. Surficial sediment contamination in Lakes 

Erie and Ontario: A comparative analysis. J. Great 

Lakes Res. 28(3): 437–450. 

38The full details involved in calculating a PM2.5

design value are given in Appendix N of 40 CFR 

part 50. 

39US EPA (2006). Regulatory Impact Analysis for 

the 2006 NAAQS for Particle Pollution. This 

document is available in Docket EPA-HQ–OAR–

2004–0008. 

40Chronic exposure is defined in the glossary of 

the Integrated Risk Information (IRIS) database 

(http://www.epa.gov/iris) as repeated exposure by 

the oral, dermal, or inhalation route for more than 

approximately 10% of the life span in humans 

(more than approximately 90 days to 2 years in 

typically used laboratory animal species). 

41 Defined in the IRIS database as exposure to a 

substance spanning approximately 10 of the 

lifetime of an organism. 

42 Defined in the IRIS database as exposure by the 

oral, dermal, or inhalation route for 24 hours or 

less. 

studies have been conducted in U.S. 

coastal waters and in the Great Lakes 

Region in which the role of ambient PM 

deposition and runoff is 

investigated.33 34 35 36 37

Adverse impacts on soil chemistry 

and plant life have been observed for 

areas heavily impacted by atmospheric 

deposition of nutrients, metals and acid 

species, resulting in species shifts, loss 

of biodiversity, forest decline and 

damage to forest productivity. Potential 

impacts also include adverse effects to 

human health through ingestion of 

contaminated vegetation or livestock (as 

in the case for dioxin deposition), 

reduction in crop yield, and limited use 

of land due to contamination. 

(4) Current and Projected PM2.5 Levels 

In 2005 EPA designated 39 

nonattainment areas for the 1997 PM2.5

NAAQS based on air quality design 

values (using 2001–2003 or 2002–2004 

measurements) and a number of other 

factors (70 FR 943, January 5, 2005).38

These areas are comprised of 208 full or 

partial counties with a total population 

exceeding 88 million. As mentioned in 

Section II.B.2, the 1997 PM2.5 NAAQS 

was recently revised and the 2006 PM2.5

NAAQS became effective on December 

18, 2006. Table II–1 presents the 

number of counties in areas currently 

designated as nonattainment for the 

1997 PM2.5 NAAQS as well as the 

number of additional counties that have 

monitored data that is violating the 2006 

PM2.5 NAAQS. Nonattainment areas 

will be designated with respect to the 

new 2006 PM2.5 NAAQS in early 2010. 

TABLE II–1.—FINE PARTICLE STANDARDS: CURRENT NONATTAINMENT AREAS AND OTHER VIOLATING COUNTIES

Nonattainment areas/other violating counties Number of 

counties Population 1

1997 PM2.5 Standards: 39 areas currently designated ................................................................................... 208 88,394,000 

2006 PM2.5 Standards: counties with violating monitors 2 ............................................................................... 49 18,198,676 

Total .......................................................................................................................................................... 257 106,592,676 

1Population numbers are from 2000 census data. 

2This table provides an estimate of the counties violating the 2006 PM2.5 NAAQS based on 2003–05 air quality data. The areas designated as 

nonattainment for the 2006 PM2.5 NAAQS will be based on 3 years of air quality data from later years. Also, the county numbers in the summary 

table include only the counties with monitors violating the 2006 PM2.5 NAAQS. The monitored county violations may be an underestimate of the 

number of counties and populations that will eventually be included in areas with multiple counties designated nonattainment. 

Based on modeling performed for the 

PM NAAQS analysis, we estimate that 

52 counties (where 53 million people 

are projected to live) will exceed the 

2006 PM2.5 standard in 2015.39 In 

addition, 54 counties (where 27 million 

people are projected to live) are 

expected to be within 10 percent of the 

2006 PM2.5 NAAQS in 2015. 

Areas designated as not attaining the 

1997 PM2.5 NAAQS will need to attain 

these standards in the 2010 to 2015 time 

frame, and then be required to maintain 

the NAAQS thereafter. The attainment 

dates associated with the potential new 

2006 PM2.5 nonattainment areas would 

likely be in the 2015 to 2020 timeframe. 

The emission standards being proposed 

in this action would become effective as 

early as 2009 making the expected HC, 

NOX and PM inventory reductions from 

this rulemaking useful to states in 

attaining or maintaining the PM2.5

NAAQS. 

(5) Current PM10 Levels 

As of October 2006 approximately 

28.5 million people live in 46 

designated PM10 nonattainment areas, 

which include all or part of 46 counties. 

These population numbers do not 

include the people living in areas where 

there is a potential risk of failing to 

maintain or achieve the PM10 NAAQS in 

the future. The expected PM, HC and 

NOX inventory reductions from these 

proposed standards would be useful to 

states in maintaining the PM10 NAAQS. 

C. Air Toxics 

Emissions from the engines, vessels 

and equipment subject to the proposed 

standards contribute to ambient levels 

of gaseous air toxics known or 

suspected as human or animal 

carcinogens, or that have non-cancer 

health effects. These compounds 

include benzene, 1,3-butadiene, 

formaldehyde, acetaldehyde, acrolein, 

polycyclic organic matter (POM), and 

naphthalene. All of these compounds, 

except acetaldehyde, were identified as 

national or regional risk drivers in the 

1999 National-Scale Air Toxics 

Assessment (NATA) and have 

significant inventory contributions from 

mobile sources. That is, for a significant 

portion of the population, these 

compounds pose a significant portion of 

the total cancer risk from breathing 

outdoor air toxics. The reductions in the 

emissions from these engines, vessels 

and equipment would help reduce 

exposure to these harmful substances. 

Air toxics can cause a variety of 

cancer and noncancer health effects. A 

number of the mobile source air toxic 

pollutants described in this section are 

known or likely to pose a cancer hazard 

in humans. Many of these compounds 

also cause adverse noncancer health 

effects resulting from chronic,40

subchronic,41 or acute 42 inhalation 

exposures. These include neurological, 

cardiovascular, liver, kidney, and 

respiratory effects as well as effects on 

the immune and reproductive systems. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28111 

43U.S. EPA (2000). Integrated Risk Information 

System File for Benzene. This material is available 

electronically at http://www.epa.gov/iris/subst/ 

0276.htm. 

44 International Agency for Research on Cancer, 

IARC monographs on the evaluation of carcinogenic 

risk of chemicals to humans, Volume 29, Some 

industrial chemicals and dyestuffs, International 

Agency for Research on Cancer, World Health 

Organization, Lyon, France, p. 345–389, 1982. 

45 Irons, R.D.; Stillman, W.S.; Colagiovanni, D.B.; 

Henry, V.A. (1992) Synergistic action of the 

benzene metabolite hydroquinone on myelopoietic 

stimulating activity of granulocyte/macrophage 

colony-stimulating factor in vitro, Proc. Natl. Acad. 

Sci. 89:3691–3695. 

46Aksoy, M. (1989). Hematotoxicity and 

carcinogenicity of benzene. Environ. Health 

Perspect. 82: 193–197. 

47 Goldstein, B.D. (1988). Benzene toxicity. 

Occupational medicine. State of the Art Reviews. 3: 

541–554. 

48Rothman, N., G.L. Li, M. Dosemeci, W.E. 

Bechtold, G.E. Marti, Y.Z. Wang, M. Linet, L.Q. Xi, 

W. Lu, M.T. Smith, N. Titenko-Holland, L.P. Zhang, 

W. Blot, S.N. Yin, and R.B. Hayes (1996) 

Hematotoxicity among Chinese workers heavily 

exposed to benzene. Am. J. Ind. Med. 29: 236–246. 

49EPA 2005 ‘‘Full IRIS Summary for Benzene 

(CASRN 71–43–2)’’ Environmental Protection 

Agency, Integrated Risk Information System (IRIS), 

Office of Health and Environmental Assessment, 

Environmental Criteria and Assessment Office, 

Cincinnati, OH http://www.epa.gov/iris/subst/ 

0276.htm. 

50Qu, O.; Shore, R.; Li, G.; Jin, X.; Chen, C.L.; 

Cohen, B.; Melikian, A.; Eastmond, D.; Rappaport, 

S.; Li, H.; Rupa, D.; Suramaya, R.; Songnian, W.; 

Huifant, Y.; Meng, M.; Winnik, M.; Kwok, E.; Li, Y.; 

Mu, R.; Xu, B.; Zhang, X.; Li, K. (2003). HEI Report 

115, Validation & Evaluation of Biomarkers in 

Workers Exposed to Benzene in China. 

51Qu, Q., R. Shore, G. Li, X. Jin, L.C. Chen, B. 

Cohen, et al. (2002). Hematological changes among 

Chinese workers with a broad range of benzene 

exposures. Am. J. Industr. Med. 42: 275–285. 

52Lan, Qing, Zhang, L., Li, G., Vermeulen, R., et 

al. (2004). Hematotoxically in Workers Exposed to 

Low Levels of Benzene. Science 306: 1774–1776. 

53Turtletaub, K.W. and Mani, C. (2003). Benzene 

metabolism in rodents at doses relevant to human 

exposure from Urban Air. Research Reports Health 

Effect Inst. Report No.113. 

54U.S. EPA. (2002). Health Assessment of 1,3- 

Butadiene. Office of Research and Development, 

National Center for Environmental Assessment, 

Washington Office, Washington, DC. Report No. 

EPA600–P–98–001F. 

55U.S. EPA (1998). A Science Advisory Board 

Report: Review of the Health Risk Assessment of 

1,3-Butadiene. EPA–SAB–EHC–98. 

56Bevan, C.; Stadler, J.C.; Elliot, G.S.; et al. (1996) 

Subchronic toxicity of 4-vinylcyclohexene in rats 

and mice by inhalation. Fundam. Appl. Toxicol. 

32:1–10. 

57U.S. EPA (1987). Assessment of Health Risks to 

Garment Workers and Certain Home Residents from 

Exposure to Formaldehyde, Office of Pesticides and 

Toxic Substances, April 1987. 

58Hauptmann, M.; Lubin, J.H.; Stewart, P.A.; 

Hayes, R.B.; Blair, A. 2003. Mortality from 

lymphohematopoetic malignancies among workers 

in formaldehyde industries. Journal of the National 

Cancer Institute 95: 1615–1623. 

59Hauptmann, M.; Lubin, J.H.; Stewart, P.A.; 

Hayes, R.B.; Blair, A. 2004. Mortality from solid 

cancers among workers in formaldehyde industries. 

American Journal of Epidemiology 159: 1117–1130. 

60Pinkerton, L.E. 2004. Mortality among a cohort 

of garment workers exposed to formaldehyde: an 

update. Occup. Environ. Med. 61: 193–200. 

61U.S. EPA (1988). Integrated Risk Information 

System File of Acetaldehyde. This material is 

available electronically at http://www.epa.gov/iris/ 

subst/0290.htm. 

62U.S. EPA (1988). Integrated Risk Information 

System File of Acetaldehyde. This material is 

available electronically at http://www.epa.gov/iris/ 

subst/0290.htm. 

63U.S. EPA. 2003. Integrated Risk Information 

System File of Acrolein. Research and 

Development, National Center for Environmental 

Assessment, Washington, DC. This material is 

available electronically at http://www.epa.gov/iris/ 

subst/0364.htm. 

Benzene. The EPA’s Integrated Risk 

Information (IRIS) database lists 

benzene as a known human carcinogen 

(causing leukemia) by all routes of 

exposure, and that exposure is 

associated with additional health 

effects, including genetic changes in 

both humans and animals and increased 

proliferation of bone marrow cells in 

mice.43 44 45 EPA states in its IRIS 

database that data indicate a causal 

relationship between benzene exposure 

and acute lymphocytic leukemia and 

suggests a relationship between benzene 

exposure and chronic non-lymphocytic 

leukemia and chronic lymphocytic 

leukemia. A number of adverse 

noncancer health effects including 

blood disorders, such as preleukemia 

and aplastic anemia, have also been 

associated with long-term exposure to 

benzene.46 47 The most sensitive 

noncancer effect observed in humans, 

based on current data, is the depression 

of the absolute lymphocyte count in 

blood.48 49 In addition, recent work, 

including studies sponsored by the 

Health Effects Institute (HEI), provides 

evidence that biochemical responses are 

occurring at lower levels of benzene 

exposure than previously 

known.50 51 52 53 EPA’s IRIS program has 

not yet evaluated these new data. 

1,3-Butadiene. EPA has characterized 

1,3-butadiene as carcinogenic to 

humans by inhalation.54 55 The specific 

mechanisms of 1,3-butadiene-induced 

carcinogenesis are unknown. However, 

it is virtually certain that the 

carcinogenic effects are mediated by 

genotoxic metabolites of 1,3-butadiene. 

Animal data suggest that females may be 

more sensitive than males for cancer 

effects, but there are insufficient data in 

humans from which to draw 

conclusions about sensitive 

subpopulations. 1,3-Butadiene also 

causes a variety of reproductive and 

developmental effects in mice; no 

human data on these effects are 

available. The most sensitive effect was 

ovarian atrophy observed in a lifetime 

bioassay of female mice.56

Formaldehyde. Since 1987, EPA has 

classified formaldehyde as a probable 

human carcinogen based on evidence in 

humans and in rats, mice, hamsters, and 

monkeys.57 EPA is currently reviewing 

recently published epidemiological 

data. For instance, recently released 

research conducted by the National 

Cancer Institute (NCI) found an 

increased risk of nasopharyngeal cancer 

and lymphohematopoietic malignancies 

such as leukemia among workers 

exposed to formaldehyde.58 59 NCI is 

currently performing an update of these 

studies. A recent National Institute of 

Occupational Safety and Health 

(NIOSH) study of garment workers also 

found increased risk of death due to 

leukemia among workers exposed to 

formaldehyde.60 Based on the 

developments of the last decade the 

working group of the International 

Agency for Research on Cancer (IARC) 

concluded in 2004 that formaldehyde is 

carcinogenic to humans (Group 1), a 

higher classification than previous IARC 

evaluations, on the basis of sufficient 

evidence in humans and sufficient 

evidence in experimental animals. 

Formaldehyde exposure also causes a 

range of noncancer health effects, 

including irritation of the eyes (tearing 

of the eyes and increased blinking) and 

mucous membranes. 

Acetaldehyde. Acetaldehyde is 

classified in EPA’s IRIS database as a 

probable human carcinogen, based on 

nasal tumors in rats, and is considered 

toxic by the inhalation, oral, and 

intravenous routes.61 The primary acute 

effect of exposure to acetaldehyde 

vapors is irritation of the eyes, skin, and 

respiratory tract.62 The agency is 

currently conducting a reassessment of 

the health hazards from inhalation 

exposure to acetaldehyde. 

Acrolein. Acrolein is intensely 

irritating to humans when inhaled, with 

acute exposure resulting in upper 

respiratory tract irritation and 

congestion. EPA determined in 2003 

using the 1999 draft cancer guidelines 

that the human carcinogenic potential of 

acrolein could not be determined 

because the available data were 

inadequate. No information was 

available on the carcinogenic effects of 

acrolein in humans and the animal data 

provided inadequate evidence of 

carcinogenicity.63

Polycyclic Organic Matter (POM). 

POM is generally defined as a large class 

of organic compounds with multiple 

benzene rings and a boiling point 

greater than 100 degrees Celsius. One of 

these compounds, naphthalene, is 

discussed separately below. Polycyclic 

aromatic hydrocarbons (PAH) are a class 

of POM that contain only hydrogen and 

carbon atoms. A number of PAHs are 

known or suspected carcinogens. 


sroberts on PROD1PC70 with PROPOSALS
28112 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

64Perera, F.P.; Rauh, V.; Tsai, W–Y.; et al. (2002) 

Effect of transplacental exposure to environmental 

pollutants on birth outcomes in a multiethnic 

population. Environ Health Perspect. 111: 201–205. 65Perera, F.P.; Rauh, V.; Whyatt, R.M.; Tsai, W.Y.; 

Tang, D.; Diaz, D.; Hoepner, L.; Barr, D.; Tu, Y.H.; 

Camann, D.; Kinney, P. (2006) Effect of prenatal 

exposure to airborne polycyclic aromatic 

hydrocarbons on neurodevelopment in the first 3 

years of life among inner-city children. Environ 

Health Perspect 114: 1287–1292. 66U.S. EPA. 2004. Toxicological Review of 

Naphthalene (Reassessment of the Inhalation 

Cancer Risk), Environmental Protection Agency, 

Integrated Risk Information System, Research and 

Development, National Center for Environmental 

Assessment, Washington, DC. This material is 

available electronically at http://www.epa.gov/iris/ 

subst/0436.htm. 

67Oak Ridge Institute for Science and Education. 

(2004). External Peer Review for the IRIS 

Reassessment of the Inhalation Carcinogenicity of 

Naphthalene. August 2004. http://cfpub2.epa.gov/ 

ncea/cfm/recordisplay.cfm?deid=86019. 

68 International Agency for Research on Cancer 

(IARC). (2002). Monographs on the Evaluation of 

the Carcinogenic Risk of Chemicals for Humans. 

Vol. 82. Lyon, France. 

69U.S. EPA. 1998. Toxicological Review of 

Naphthalene, Environmental Protection Agency, 

Integrated Risk Information System, Research and 

Development, National Center for Environmental 

Assessment, Washington, DC. This material is 

available electronically at http://www.epa.gov/iris/ 

subst/0436.htm. 

70U.S. EPA (2000). Air Quality Criteria for Carbon 

Monoxide, EPA/600/P–99/001F. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

71U.S. EPA (2000). Air Quality Criteria for Carbon 

Monoxide, EPA/600/P–99/001F. This document is 

available in Docket EPA–HQ–OAR–2004–0008. 

72Mott, J.S.; Wolfe, M.I.; Alverson, C.J.; 

Macdonald, S.C.; Bailey, C.R.; Ball, L.B.; Moorman, 

J.E.; Somers, J.H.; Mannino, D.M.; Redd, S.C. (2002) 

National Vehicle Emissions Policies and Practices 

and Declining US Carbon Monoxide-Related 

Mortality. JAMA 288:988–995. 

73National Park Service; Department of the 

Interior; National Institute for Occupational Safety 

and Health. (2004) Boat-related carbon monoxide 

poisonings. This document is available 

electronically at http://safetynet.smis.doi.gov/ 

thelistbystate10–19–04.pdf and in docket EPA–HQ–

OAR–2004–0008. 

74U.S Department of the Interior. (2004) Carbon 

monoxide dangers from generators and propulsion 

engines. On-board boats—compilation of materials. 

This document is available online at http:// 

safetynet.smis.doi.gov/COhouseboats.htm and in 

docket EPA–HQ–OAR–2004–0008. 

Recent studies have found that 

maternal exposures to PAHs in a 

population of pregnant women were 

associated with several adverse birth 

outcomes, including low birth weight 

and reduced length at birth, as well as 

impaired cognitive development at age 

three.64 65 EPA has not yet evaluated 

these recent studies. 

Naphthalene. Naphthalene is found 

in small quantities in gasoline and 

diesel fuels but is primarily a product of 

combustion. EPA recently released an 

external review draft of a reassessment 

of the inhalation carcinogenicity of 

naphthalene.66 The draft reassessment 

recently completed external peer 

review.67 Based on external peer review 

comments, additional analyses are being 

considered. California EPA has released 

a new risk assessment for naphthalene, 

and the IARC has reevaluated 

naphthalene and re-classified it as 

Group 2B: possibly carcinogenic to 

humans.68 Naphthalene also causes a 

number of chronic non-cancer effects in 

animals, including abnormal cell 

changes and growth in respiratory and 

nasal tissues.69

In addition to reducing VOC, NOX, 

CO and PM2.5 emissions from these 

engines, vessels and equipment, the 

standards proposed in this document 

would also reduce air toxics emitted 

from these engines, vessels and 

equipment, thereby helping to mitigate 

some of the adverse health effects 

associated with operation of these 

engines, vessels and equipment. 

D. Carbon Monoxide 

Carbon monoxide (CO) is a colorless, 

odorless gas produced through the 

incomplete combustion of carbon-based 

fuels. The current primary NAAQS for 

CO are 35 ppm for the 1-hour average 

and nine ppm for the 8-hour average. 

These values are not to be exceeded 

more than once per year. 

We have already found that emissions 

from nonroad engines contribute 

significantly to CO concentrations in 

more than one nonattainment area (59 

FR 31306, June 17, 1994). We have also 

previously found that emissions from 

Small SI engines contribute to CO 

concentrations in more than one 

nonattainment area. We propose to find 

here, based on the information in this 

section of the preamble and Chapters 2 

and 3 of the Draft RIA, that emissions 

from Marine SI engines and vessels 

likewise contribute to CO 

concentrations in more than one CO 

nonattainment area. 

Carbon monoxide enters the 

bloodstream through the lungs, forming 

carboxyhemoglobin and reducing the 

delivery of oxygen to the body’s organs 

and tissues. The health threat from CO 

is most serious for those who suffer 

from cardiovascular disease, 

particularly those with angina or 

peripheral vascular disease. Healthy 

individuals also are affected, but only at 

higher CO levels. Exposure to elevated 

CO levels is associated with impairment 

of visual perception, work capacity, 

manual dexterity, learning ability and 

performance of complex tasks. Carbon 

monoxide also contributes to ozone 

nonattainment since carbon monoxide 

reacts photochemically in the 

atmosphere to form ozone.70 Additional 

information on CO related health effects 

can be found in the Carbon Monoxide 

Air Quality Criteria Document (CO 

AQCD).71

In addition to health effects from 

chronic exposure to ambient CO levels, 

acute exposures to higher levels are also 

a problem, see the Draft RIA for 

additional information. In recent years a 

substantial number of CO poisonings 

and deaths have occurred on and 

around recreational boats across the 

nation.72 The actual number of deaths 

attributable to CO poisoning while 

boating is difficult to estimate because 

CO-related deaths in the water may be 

labeled as drowning. An interagency 

team consisting of the National Park 

Service, the U.S. Department of the 

Interior, and the National Institute for 

Occupational Safety and Health 

maintains a record of published COrelated fatal and nonfatal poisonings.73

Between 1984 and 2004, 113 CO-related 

deaths and 458 non-fatal CO poisonings 

have been identified based on hospital 

records, press accounts and other 

information. Deaths have been 

attributed to exhaust from both onboard 

generators and propulsion engines. 

Houseboats, cabin cruisers, and ski 

boats are the most common types of 

boats associated with CO poisoning 

cases. These incidents have prompted 

other federal agencies, including the 

United States Coast Guard and National 

Park Service, to issue advisory 

statements and other interventions to 

boaters to avoid excessive CO 

exposure.74

As of October 2006, there were 

approximately 15 million people living 

in 6 areas (which include 10 counties) 

designated as nonattainment for CO. 

The CO nonattainment areas are 

presented in the Draft RIA. 

EPA previously determined that 

emissions from nonroad engines and 

equipment contribute significantly to 

ozone and CO concentrations in more 

than one nonattainment area (59 FR 

31306, June 17, 1994). EPA also 

determined that the categories of small 

land-based SI engines cause or 

contribute to ambient ozone and CO in 

more than one nonattainment area (65 

FR 76790, Dec. 7, 2000). With regard to 

Marine SI engines and vessels, our 

NONROAD model indicates that these 

engines are present in each of the CO 

nonattainment areas and thus contribute 

to CO concentrations in those 

nonattainment areas. The CO 

contribution from Marine SI engines in 

classified CO nonattainment areas is 

presented in Table II–2. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28113 

TABLE II–2.—CO EMISSIONS FROM MARINE SI ENGINES AND VESSELS IN CLASSIFIED CO NONATTAINMENT AREAS

Area County Category CO (short tons 

in 2005) 

Missoula, MT .......................................... Missoula ................................................. Marine SI ................................................ 94 

Las Vegas, NV ....................................... Clark ....................................................... Marine SI ................................................ 3,016 

Reno, NV ................................................ Washoe .................................................. Marine SI ................................................ 3,494 

El Paso, TX ............................................ El Paso ................................................... Marine SI ................................................ 37 

South Coast Air Basin ............................ Los Angeles ........................................... Marine SI ................................................ 4,615 

Riverside ................................................ Marine SI ................................................ 1,852 

Orange ................................................... Marine SI ................................................ 5,360 

San Bernardino ...................................... Marine SI ................................................ 2,507 

Source: U.S. EPA, NONROAD 2005 model. 

Based on the national inventory 

numbers in Chapter 3 of the Draft RIA 

and the local inventory numbers 

described in this section of the 

preamble, we propose to find that 

emissions of CO from Marine SI engines 

and vessels contribute to CO 

concentrations in more than one CO 

nonattainment area. 

III. Sterndrive and Inboard Marine 

Engines 

A. Overview 

This section applies to sterndrive and 

inboard marine (SD/I) engines. 

Sterndrive and inboard engines are 

spark-ignition engines typically derived 

from automotive engine blocks for 

which a manufacturer will take steps to 

‘‘marinize’’ the engine for use in marine 

applications. This marinization process 

includes choosing and optimizing the 

fuel management system, configuring a 

marine cooling system, adding intake 

and exhaust manifolds, and adding 

accessory drives and units. These 

engines typically have water-jacketed 

exhaust systems to keep surface 

temperatures low. Ambient surface 

water (seawater or freshwater) is 

generally added to the exhaust gases 

before the mixture is expelled under 

water. 

As described in Section I, the initial 

rulemaking to set standards for Marine 

SI engines did not include final 

emission standards for SD/I engines. In 

that rulemaking, we finalized the 

finding under Clean Air Act section 

213(a)(3) that all Marine SI engines 

cause or contribute to ozone 

concentrations in two or more ozone 

nonattainment areas in the United 

States. However, because uncontrolled 

SD/I engines appeared to be a lowemission alternative to outboard and 

personal watercraft engines in the 

marketplace, even after the emission 

standards for these engines were fully 

phased in, we decided to set emission 

standards only for outboard and 

personal watercraft engines. At that 

time, outboard and personal watercraft 

engines were almost all two-stroke 

engines with much higher emission 

rates compared to the SD/I engines, 

which were all four-stroke engines. We 

pointed out in that initial rulemaking 

that we wanted to avoid imposing costs 

on SD/I engines that could cause a 

market shift to increased use of the 

higher-emitting outboard engines, 

which would undermine the broader 

goal of achieving the greatest degree of 

emission control from the full set of 

Marine SI engines. 

We believe now is an appropriate 

time to set standards for SD/I engines, 

for several reasons. First, the available 

technology for SD/I engines has 

developed significantly, so we are now 

able to anticipate substantial emission 

reductions. With the simultaneous 

developments in technology for 

outboard and personal watercraft 

engines, we can set standards that 

achieve substantial emission reductions 

from all Marine SI engines. Second, now 

that California has adopted standards 

for SD/I engines, the cost impact of 

setting new standards for manufacturers 

serving the California market is 

generally limited to the hardware costs 

of adding emission control technology; 

these manufacturers will be undergoing 

a complete redesign effort for these 

engines to meet the California 

standards. Third, we believe SD/I 

engines meeting the proposed standards 

will in many cases have performance 

advantages over pre-control engines, 

which will allow manufacturers of SD/ 

I engines to promote their engines as 

having a greater value to justify any 

price increases. As a result, we believe 

we can achieve the maximum emission 

reductions from Marine SI engines by 

setting standards for SD/I engines based 

on the use of catalyst technology at the 

same time that we adopt more stringent 

standards for outboard and personal 

watercraft engines. 

As described in Section II, we are 

proposing to make the finding under 

Clean Air Act section 213(a)(3) that 

Marine SI engines cause or contribute to 

CO concentrations in two or more 

nonattainment areas of the United 

States. We believe the proposed CO 

standards will also reduce the exposure 

of individual boaters and bystanders to 

potentially dangerous CO levels. 

We believe catalyst technology is 

available for achieving these proposed 

standards. Catalysts have been used for 

decades in automotive applications to 

reduce emissions, and catalyst 

manufacturers have continued to 

develop and improve this technology. 

Design issues for using catalysts in 

marine applications are primarily 

centered on packaging catalysts in the 

water-jacketed, wet exhaust systems 

seen on most SD/I engines. Section III.G 

discusses recent development work that 

has shown success in packaging 

catalysts in SD/I applications. In 

addition, there are ongoing efforts in 

evaluating catalyst technology in SD/I 

engines being sponsored by the marine 

industry, U.S. Coast Guard, and 

California ARB. 

B. Engines Covered by This Rule 

(1) Definition of Sterndrive and Inboard 

Engines 

For the purpose of this regulation, SD/ 

I engines encompass all spark-ignition 

marine propulsion engines that are not 

outboard or personal watercraft engines. 

A discussion of the proposed new 

definitions for outboard and personal 

watercraft engines is in Section IV.B. 

We consider all the following to be SD/ 

I engines: inboard, sterndrive (also 

known as inboard/outboard), airboat 

engines, and jet boat engines. 

The existing definitions for sterndrive 

and inboard engines from 40 CFR part 

91 are presented below: 

• Sterndrive engine means a four 

stroke Marine SI engine that is designed 

such that the drive unit is external to 

the hull of the marine vessel, while the 

engine is internal to the hull of the 

marine vessel. 

• Inboard engine means a four stroke 

Marine SI engine that is designed such 

that the propeller shaft penetrates the 


sroberts on PROD1PC70 with PROPOSALS
28114 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

hull of the marine vessel while the 

engine and the remainder of the drive 

unit is internal to the hull of the marine 

vessel. 

We are proposing to amend the above 

definitions for determining which 

exhaust emission standards apply to 

spark-ignition marine engines in 2009. 

The new proposed definition would be 

a single term to include sterndrive and 

inboard engines together as a single 

engine category. The proposed 

definition for sterndrive/inboard also is 

drafted to include all engines not 

otherwise classified as outboard or 

personal watercraft engines. Note that 

we are proposing to revise the 

definitions of outboard and personal 

watercraft engines as described in 

Section IV.B. 

The proposed definition has several 

noteworthy impacts. First, it removes a 

requirement that only four-stroke 

engines can qualify as sterndrive/ 

inboard engines. We believe limiting the 

definition to include only four-stroke 

engines is unnecessarily restrictive and 

could create an incentive to use twostroke (or rotary) engines to avoid the 

proposed catalyst-based standards. 

Second, it removes limitations caused 

by reference to propellers. The 

definition should not refer specifically 

to propellers, because there are other 

propulsion drives on marine vessels, 

such as jet drives, that could be used 

with SD/I engines. Third, as explained 

in the section on the OB/PWC 

definitions, the proposed definitions 

treat engines installed in open-bay 

vessels (e.g. jet boats) and in vessels 

over 4 meters long as SD/I engines. 

Finally, the existing definition does not 

clearly specify how to treat specialty 

vessels such as airboats or hovercraft 

that use engines that are similar to those 

in conventional SD/I applications. 

Under the discretion in the regulation 

allowing EPA to make judgments about 

the scope of the SD/I engine definition, 

we have classified airboats as SD/I 

engines. See 40 CFR 91.3 for the existing 

definitions of the marine engine classes. 

We continue to believe these engines 

share fundamental characteristics with 

traditional SD/I engines and should 

therefore be treated the same way. 

However, we believe the definitions 

should address these applications 

expressly to make clear which standards 

apply. 

We request comment on the following 

proposed definition: 

• Sterndrive/inboard engine means a 

spark-ignition engine that is used to 

propel a marine vessel, but is not an 

outboard engine or a personal watercraft 

engine. This includes engines on 

propeller-driven vessels, jet boats, 

airboats, and hovercraft. 

High-performance SD/I engines are 

generally characterized by high-speed 

operation, supercharged air intake, 

customized parts, very high power 

densities, and a short time until rebuild 

(50 to 200 hours). Based on current SD/ 

I product offerings, we are proposing to 

define a high-performance engine as an 

SD/I engine with maximum power at or 

above 373 kW (500 hp) that has design 

features to enhance power output such 

that the expected operating time until 

rebuild is substantially shorter than 480 

hours. 

(2) Exclusions and Exemptions 

We are proposing to extend our basic 

nonroad exemptions to the SD/I engines 

and vessels covered by this proposal. 

These include the testing exemption, 

the manufacturer-owned exemption, the 

display exemption, and the nationalsecurity exemption. If the conditions for 

an exemption are met, then the engine 

is not subject to the exhaust emission 

standards. These exemptions are 

described in more detail under Section 

VIII. 

In the rulemaking for recreational 

vehicles, we chose not to apply 

standards to hobby products by 

exempting all reduced-scale models of 

vehicles that are not capable of 

transporting a person (67 FR 68242, 

November 8, 2002). We are proposing to 

extend that same provision to SD/I 

marine engines (see § 1045.5). 

The Clean Air Act provides for 

different treatment of engines used 

solely for competition. Rather than 

relying on engine design features that 

serve as inherent indicators of dedicated 

competitive use, as specified in the 

current regulations, we have taken the 

approach in more recent programs of 

more carefully differentiating 

competition and noncompetition 

models in ways that reflect the nature of 

the particular products. In the case of 

Marine SI engines, we do not believe 

there are engine design features that 

allow us to differentiate between 

engines that are used in highperformance recreational applications 

and those that are used solely for 

competition. We are therefore proposing 

that, starting January 1, 2009, Marine SI 

engines meeting all the following 

criteria would be considered to be used 

solely for competition, except in other 

cases where information is available 

indicating that engines are not used 

solely for competition (see § 1045.620): 

• The engine (or a vessel in which the 

engine is installed) may not be 

displayed for sale in any public 

dealership or otherwise offered for sale 

to the general public. 

• Sale of the vessel in which the 

engine is installed must be limited to 

professional racers or other qualified 

racers. 

• The engine must have performance 

characteristics that are substantially 

superior to noncompetitive models (e.g. 

higher power-to-weight ratio). 

• The engines must be intended for 

use only in racing events sanctioned 

(with applicable permits) by the Coast 

Guard or other public organization, with 

operation limited to racing events, 

speed record attempts, and official time 

trials. 

Engine manufacturers would make 

their request for each new model year, 

and we would deny a request for future 

production if there are indications that 

some engines covered by previous 

requests are not being used solely for 

competition. Competition engines are 

produced and sold in very small 

quantities, so manufacturers should be 

able to identify which engines qualify 

for this exemption. We are also 

proposing to apply the same criteria to 

outboard and personal watercraft 

engines and vessels. We request 

comment on this approach to qualifying 

for a competition exemption. 

We are proposing a new exemption to 

address individuals who manufacture 

recreational marine vessels for personal 

use (see § 1045.630). Under the 

proposed exemption, these vessels and 

their engines could be exempt from 

standards, subject to certain limitations. 

For example, an individual may 

produce one such vessel over a ten-year 

period, the vessel may not be used for 

commercial purposes, and any exempt 

engines may not be sold for at least five 

years. The vessel must generally be built 

from unassembled components, rather 

than simply completing assembly of a 

vessel that is otherwise similar to one 

that will be certified to meet emission 

standards. This proposal addresses the 

concern that hobbyists who make their 

own vessels could otherwise be a 

manufacturer subject to the full set of 

emission standards by introducing these 

vessels into commerce. We expect this 

exemption to involve a very small 

number of vessels. 

C. Proposed Exhaust Emission 

Standards 

We are proposing technology-based 

exhaust emission standards for new SD/ 

I engines. These standards are similar to 

the exhaust emission standards that 

California ARB recently adopted (see 

Section I). This section describes the 

proposed requirements for SD/I engines 

for controlling exhaust emissions. See 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28115 

75 ‘‘GM Product Changes Affecting SD/I Engine 

Marinizers,’’ memo from Mike Samulski, EPA, to 

Docket EPA–HQ–QAR–2004–0008–0528. 

Section V for a description of the 

proposed requirements related to 

evaporative emissions. 

(1) Standards and Dates 

We are proposing exhaust emission 

standards of 5 g/kW-hr HC+NOX and 75 

g/kW-hr CO for SD/I engines, starting 

with the 2009 model year (see 

§ 1045.105). On average, this represents 

about a 70 percent reduction in 

HC+NOX and a 50 percent reduction in 

CO from baseline engine configurations. 

Due to the challenges of controlling CO 

emissions at high load, the expected 

reduction in CO emissions from low to 

mid-power operation is expected to be 

more than 80 percent. We are proposing 

additional lead time for small 

businesses as discussed in Section 

III.F.2. The proposed standards would 

be based on the same duty cycle that 

currently is in place for outboard and 

personal watercraft engines, as 

described in Section III.D. Section III.F 

discusses the technological feasibility of 

these standards in more detail. We 

request comment on the feasibility and 

appropriateness of the proposed 

standards. 

The proposed standards are largely 

based on the use of small catalytic 

converters that can be packaged in the 

water-cooled exhaust systems typical for 

these applications. California ARB also 

adopted an HC+NOX standard of 5 g/ 

kW-hr, but they did not adopt a 

standard for CO emissions. We believe 

the type of catalyst used to achieve the 

HC+NOX standard will also be effective 

in reducing CO emissions enough to 

meet the proposed standard, so no 

additional technology will be needed to 

control CO emissions. 

Manufacturers have expressed 

concern that the proposed 

implementation dates may be difficult 

to meet, for certain engines, due to 

anticipated changes in engine block 

designs produced by General Motors. As 

described in the Draft RIA and in the 

docket, the vast majority of SD/I engines 

are based on automotive engine blocks 

sold by General Motors.75 There are five 

basic engine blocks used, and recently 

GM has announced that it will 

discontinue production of the 4.3L and 

8.1L engine blocks in 2009. GM 

anticipates that it will offer a 4.1L 

engine block and a 6.0L supercharged 

engine block to the marine industry as 

replacements. Full run production of 

these new blocks is anticipated in mid 

to late 2009. SD/I engine manufacturers 

have expressed concern that they will 

not be able to begin the engineering 

processes related to marinizing these 

engines, including the development of 

catalyst-equipped exhaust manifolds, 

until mid-2007, when they are expecting 

to see the first prototypes of the two 

replacement engine models. In addition, 

they are concerned that they do not 

have enough remaining years of sales of 

the 4.3L and 8.1L engines to justify the 

cost of developing catalyst-equipped 

exhaust manifolds for these engines and 

amortizing the costs of the required 

tooling while also developing the two 

new engine models. 

The SD/I requirements begin in 

earnest in California in the 2008 model 

year. Manufacturers have indicated that 

they plan to use catalysts to meet the 

California standards in 2008 for three or 

four of the five engine models used in 

SD/I applications but to potentially have 

limited availability of the 4.3L or 8.1L 

engines until the catalyst-equipped 

versions of the two new engine models 

(4.1L and 6.0L) have been marinized 

and meet the new California emission 

standards. At this point, the 

manufacturers project that the two new 

engine models would be available for 

sale in California in 2010. Some 4.3L 

and 8.1L engines may be available in 

California during the phase-out based 

on the possibility of some use of catalyst 

for one or both of these displacements 

and the use of transitional flexibilities. 

These are unique circumstances 

because the SD/I engine manufacturers’

plans and products depend on the 

manufacture of the base engine by a 

company not directly involved in 

marine engine manufacturing. The SD/ 

I sales represent only a small fraction of 

total engine sales and thus did not 

weigh heavily in GM’s decision to 

replace the existing engine blocks with 

two comparable versions during the 

timeframe when the SD/I manufacturers 

are facing new emission standards. SD/ 

I manufacturers have stated that 

alternative engine blocks that meet their 

are not available in the interim, and that 

it would be cost-prohibitive for them to 

produce their own engine blocks. 

EPA is proposing that the Federal 

SD/I standards take effect for the 2009 

model year, one year after the same 

standards apply in California. We 

believe a requirement to extend the 

California standards nationwide after a 

one-year delay allows manufacturers 

adequate time to incorporate catalysts 

across their product lines as they are 

doing in California. Once the technology 

is developed for use in California, it 

would be available for use nationwide 

soon thereafter. In fact, one company 

currently certified to the California 

standards is already offering catalystequipped SD/I engines nationwide. 

However, we request comment on 

whether an additional year of lead time 

would be appropriate for engines not 

using catalysts in California in 2008. 

This is potentially the 4.3L or 8.1L SD/ 

I engines. Under this alternative, 

engines based on the three engine 

blocks not being changed would be 

required to meet the standards in 2009. 

Also, engines built from the 4.3L and/ 

or the 8.1L GM blocks would be 

required to meet the EPA standards if 

sold in California in 2008 or 2009. 

Otherwise the new standards for these 

engines could be delayed for an 

additional model year (until 2010). 

Assuming product plans follow through 

as projected, the two new engine blocks 

would be required to meet the standards 

in the 2010 model year. 

Another possibility would be to 

address this issue through the 

combination of the flexibilities provided 

through an ABT program and a phasein of the standards over two model years 

(2009/2010) instead of implementation 

in one model year (2009). Under this 

approach, manufacturers could certify 

and sell the 4.3L and 8.1L engines in the 

2009 model year without catalysts or 

with limited use of catalysts through 

emissions averaging. This approach 

would have the advantage of giving 

manufacturers flexibility in how they 

choose to phase in their catalystequipped engines. However, engine 

manufacturers have expressed concern 

that, even though they will be offering 

limited configurations of catalyzed 

engines in California in 2008, that the 

lead time is short and they will not have 

the ability to fully catalyze their entire 

line of engines for 2009. Thus, if the 

rule is structured in a manner to permit 

it, marine engine manufacturers would 

sell a mix of catalyzed and noncatalyzed engines in 2009. Since boat 

builders can determine which engines 

are purchased and can choose either 

catalyzed or non-catalyzed versions of 

the engines if available, manufacturers 

are concerned that it would be difficult 

for SD/I engine manufacturers to ensure 

compliance with standards based on 

sales and horsepower weightings. 

Engine manufacturers, not boat builders, 

are subject to exhaust emission 

standards. Thus, a phase-in approach, 

which would be based on a projection 

that a certain number of catalyzed 

engines would be sold, may not be a 

feasible approach for this industry. The 

industry would thus prefer a mandatory 

implementation date as discussed below 

without a phase-in that uses averaging. 

The industry’s concerns 

notwithstanding, there are benefits to 


sroberts on PROD1PC70 with PROPOSALS
28116 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

76 80 percent of maximum engine test speed and 

71.6 percent of maximum torque at maximum test 

speed. 

this approach. Therefore, we are 

requesting comment on phasing in the 

proposed standards over the 2009–2010 

timeframe. Under this approach, the 

standards would be 10 g/kW-hr 

HC+NOX and 100 g/kW-hr CO in 2009. 

The proposed standards would then go 

into effect in 2010. During the phase-in 

period, the proposed family emission 

limit (FEL) caps (see Section III.C.3) 

would still apply. 

A third alternative, preferred by the 

two large SD/I manufacturers, would be 

full compliance with the 5 g/kW-hr 

standard in 2010 except for the 4.1L 

engine and the 6.0L supercharged 

engine and requiring those engines to 

comply with the standards in 2011. 

Manufacturers have expressed the view 

that there is value in limiting 

production volumes of catalystequipped engines only to California for 

two years to gain in-use experience 

before selling these engines nationwide. 

Under this approach, any technical 

issues that may arise with catalyst 

designs or in-use performance would 

affect only a small portion of the fleet, 

which would help minimize in-use 

concerns and costs associated with 

warranty claims. This approach would 

also provide additional lead time for 

those configurations not modified for 

California and the two new engine 

displacements. In addition, as discussed 

above, manufacturers stated that an 

averaging-based phase-in program that 

required the introduction of catalystequipped engines outside of California 

before 2010 is problematic because of 

marketplace and competitive issues as 

discussed above. For these reasons, we 

request comment on whether the 

proposed standards for SD/I engines 

should be delayed to 2010 for the three 

engine models that are not being 

modified and with an additional model 

year (2011) for the 4.1L and 6.0L 

supercharged engines. 

Under stoichiometric or lean 

conditions, catalysts are effective at 

oxidizing CO in the exhaust. However, 

under very rich conditions, catalysts are 

not effective for reducing CO emissions. 

In contrast, NOX emissions are 

effectively reduced under rich 

conditions. SD/I engines often run at 

high power modes for extended periods 

of time. Under high-power operation, 

engine marinizers must calibrate the 

engine to run rich as an engineprotection strategy. If the engine were 

calibrated for a stoichometric air-fuel 

ratio at high power, high temperatures 

could lead to failures in exhaust valves 

and engine heads. In developing the 

proposed CO standard for SD/I engines, 

we considered an approach where test 

Mode 1 (full power) would be excluded 

from the weighted CO test level and the 

other four test modes would be reweighted accordingly. Under this 

approach, the measured CO emissions 

from catalyst-equipped engines were 

observed to be 65–85 percent lower 

without Mode 1, even though the 

weighting factor for Mode 1 is only 6 

percent of the total cycle weighting. 

These test results are presented in 

Chapter 4 of the Draft RIA. We request 

comment on finalizing a CO standard of 

25 g/kW-hr based on a four-mode duty 

cycle that excludes Mode 1 instead of 

the proposed CO standard. Under this 

approach, we also request comment on 

CO cap, such as 350 g/kW-hr, specific 

to Mode 1. Manufacturers would still 

measure CO emissions at Mode 1 to 

demonstrate compliance with this cap. 

Controlling CO emissions at high 

power may be a more significant issue 

with supercharged 6.0L engines due to 

uncertainty with regard to the air fuel 

ratio of the engine at high power. Engine 

manufacturers have not yet received 

prototype engines; however, they have 

expressed concern that these engines 

may need to be operated with a rich airfuel ratio even at Mode 2 as an engineprotection strategy.76 This concern is 

based on previous experience with other 

supercharged engines. If this is the case, 

it may affect the potential CO emission 

reductions from these engines. To 

address the uncertainties related to the 

two new SD/I engines (4.1L and 6.0L 

supercharged) we are asking for 

comment on a CO averaging standard 

with a maximum family emission limit 

to cap high CO emissions. Specifically, 

we request comment on averaging 

standard of 25 g/kW-hr CO based on a 

four-mode test, as discussed above, with 

a maximum family emission limit for 

the four-mode test of 75 g/kW-hr. 

Engines used on jet boats may have 

been classified under the existing 

definitions as personal watercraft 

engines. As described above, engines 

used in jet boats or personal watercraftlike vessels 4 meters or longer would be 

classified as SD/I engines under the 

proposed definitions. Such engines 

subject to part 91 today would therefore 

need to continue meeting EPA emission 

standards as personal watercraft engines 

through the 2008 model year under part 

91, after which they would need to meet 

the new SD/I standards under the 

proposed part 1045. This is another 

situation where the transition period 

discussed above may be helpful. In 

contrast, as discussed above, air boats 

have been classified as SD/I engines 

under EPA’s discretionary authority and 

are not required to comply with part 91. 

As described above, engines used 

solely for competition would not be 

subject to the proposed regulations, but 

many SD/I high-performance engines 

are sold for recreational use. Highperformance SD/I engines have very 

high power outputs, large exhaust gas 

flow rates, and relatively high 

concentrations of hydrocarbons and 

carbon monoxide in the exhaust gases. 

From a conceptual perspective, the 

application of catalytic converter 

technology to these engines is feasible. 

As is the case in similar heavy-duty 

highway gasoline engines, these 

catalytic converters would have to be 

quite large in volume, perhaps on the 

order of the same volume as the engine 

displacement, and would involve 

significant heat rejection issues. 

Highway heavy-duty gasoline engine 

certification information from the late 

1970s and early 1980s suggests that it is 

possible to achieve HC and CO emission 

reductions around 20 to 40 percent by 

adding an air pump to increase the level 

of oxygen in the exhaust stream. This 

would be a relatively low-cost and 

durable method of oxidizing HC and CO 

when the exhaust gases are hot enough 

to support further oxidation reactions. 

California ARB has implemented the 

same HC+NOX standards we are 

proposing but is expecting 

manufacturers to rely on emissions 

averaging within the SD/I class. This is 

not viable for small business 

manufacturers who do not have other 

products with which to average. 

Even if manufacturers use catalysts to 

control HC+NOX emissions from highperformance engines, controlling CO 

emissions continues to present a 

technological challenge. Since these 

engines generally operate with fuel-rich 

combustion, there is little or no oxygen 

in the exhaust stream. As a result, any 

oxidation of hydrocarbon compounds in 

the catalyst would likely increase CO 

levels, rather than oxidizing all the way 

to CO2. We are therefore proposing a CO 

standard for high-performance engines 

of 350 g/kW-hr. We believe this is 

achievable with more careful control of 

fueling under idle conditions. Control of 

air-fuel ratios at idle should result in 

improved emission control even after 

multiple rebuilds. Basing standards on 

non-catalyst hardware such as an air 

pump could enable lower CO levels. 

We are proposing a variety of 

provisions to simplify the requirements 

for exhaust emission certification and 

compliance for these engines, as 

described in Section IV.F. We are also 

proposing not to apply the not-to-exceed 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28117 

emission standards to high-performance 

SD/I marine engines. 

We also request comment on two 

alternative approaches to define 

emission standards for highperformance engines. First, we could set 

the HC+NOX standard at 5 g/kW-hr and 

allow for emission credits as described 

above, but allow small-volume 

manufacturers of high-performance 

engines to meet a HC+NOX emission 

standard in the range of 15 to 22 g/kWhr. See Section III.F.2 for our proposed 

definition of small-volume SD/I engine 

manufacturers. We would also need to 

adopt an FEL cap of 22 g/kW-hr for 

HC+NOX for all manufacturers under 

this approach to avoid the situation 

where only small-volume manufacturers 

of high-performance engines need to 

make design changes to reduce these 

emissions. Our concern is that a large 

manufacturer would otherwise be able 

to use emission credits to avoid making 

design changes to their highperformance engines. This emission 

level is consistent with measured 

HC+NOX emission values from these 

engines showing a range of emission 

levels with different types of fuel 

systems and different calibrations, as 

shown in the Draft RIA. Treating smallvolume manufacturers of highperformance engines differently may be 

appropriate because they have little or 

no access to emission credits. 

Second, we could alternatively set the 

high-performance engine HC+NOX

standard in the range of 15 to 22 g/kWhr for all companies and disallow the 

use of emission credits for meeting this 

standard. This would require all 

companies to redesign their engines, 

rather than use emission credits, to 

reduce emissions to a standard that is 

tailored to high-performance engines. 

We request comment on the primary 

approach as well as the two alternatives 

for high-performance engine standards. 

Comment is requested on the costs and 

general positives and negatives of each 

approach. Comment is also requested on 

the technology required if a level above 

the proposed standards is supported, as 

well as information on safety and energy 

implications of the alternative emission 

standards. If a commenter supports 

either of the two alternative approaches, 

information and data are requested to 

assist EPA in setting the appropriate 

HC+NOX and CO emission standards 

within the 15 to 22 g/kW-hr range. 

We are also aware that there may be 

some very small sterndrive or inboard 

engines. In particular, sailboats may 

have small propulsion engines for 

backup power. These engines would fall 

under the proposed definition of 

sterndrive/inboard engines, even though 

they are much smaller and may 

experience very different in-use 

operation. These engines may have 

more in common with marine auxiliary 

engines that are subject to land-based 

standards. Nevertheless, these engines 

share some important characteristics 

with bigger SD/I engines, such as 

reliance on four-stroke technology and 

access to water-based cooling. It is also 

true that emission standards are based 

on specific emission levels expected 

from engines of comparable sizes, so the 

standards adjust automatically with the 

size of the engine to require a relatively 

constant level of stringency. These 

engines are not like the very small 

outboard engines that are subject to less 

stringent standards because of their 

technical limitations in controlling 

emissions. Accordingly, we believe 

these engines can incorporate the same 

technologies as the bigger marine 

propulsion engines and meet the same 

emission standards. However, we 

request comment on the need for 

adjusting the emission standards for 

these engines to accommodate any 

technology constraints related to their 

unique designs. Specifically, we request 

comment on allowing manufacturers the 

option of certifying small SD/I engines 

to the proposed standards for auxiliary 

marine engines discussed in Section 

V.C.1. We also request comment on the 

possibility that some other small 

engines may inappropriately fall into 

the category of sterndrive/inboard 

engines. We request comment on the 

engine size for which any special 

accommodations must be made. Such 

comments should also address any 

issues that may exist for these engines 

with regard to meeting the proposed 

standards, or identify any other 

appropriate way of differentiating these 

engines from conventional sterndrive/ 

inboard engines. 

(2) Not-To-Exceed Standards 

We are proposing emission standards 

for an NTE zone representing a 

multiplier times the duty cycle standard 

for HC+NOX and for CO (see 

§ 1045.105). Section III.D.2 describes the 

proposed NTE test procedures and gives 

an overview of the proposed NTE 

provisions. In addition, Section III.D.2 

presents the specific multipliers for the 

proposed NTE standards. 

The NTE approach is consistent with 

the concept of a weighted modal 

emission test such as the steady-state 

tests included in this rule. The proposed 

duty cycle standard itself is intended to 

represent the average emissions under 

steady-state conditions. Because it is an 

average, manufacturers design their 

engines with emission levels at 

individual points varying as needed to 

maintain maximum engine performance 

and still meet the engine standard. The 

NTE limit would be an additional 

requirement. It is intended to ensure 

that emission controls function with 

relative consistency across the full range 

of expected operating conditions. 

(3) Emission Credit Programs 

(a) Averaging, Banking, and Trading 

We are proposing averaging, banking, 

and trading of emission credits for 

sterndrive and inboard marine engines 

for meeting HC+NOX and CO standards 

(see § 1045.105 and part 1045, subpart 

H). See Section VII.C.5 for a description 

of general provisions related to 

averaging, banking, and trading 

programs. Emission credit calculations 

would be based on the maximum engine 

power for an engine family, as described 

in Section IV.F. 

As with previous emission control 

programs, we are also proposing not to 

allow an emission family to earn credits 

for one pollutant if it is using credits to 

meet the standard for another pollutant. 

In other words, an engine family that 

does not meet the CO standard would 

not be able to earn HC+NOX emission 

credits, or vice versa. This should rarely 

be an issue for SD/I engines, because the 

same catalyst technology is effective for 

controlling HC+NOX and CO emissions. 

In addition, as with previous emission 

control programs, we are proposing that 

engines sold in California would not be 

included in this ABT program because 

they are already subject to California 

HC+NOX requirements. 

Credit generation and use is 

calculated based on the family emission 

limit (FEL) of the engine family and the 

standard. We are proposing FEL caps to 

prevent the sale of very-high emitting 

engines. For HC+NOX, the proposed 

FEL cap is 16 g/kW-hr for HC+NOX

emissions from engines below 373 kW; 

this emission level is equal to the first 

phase of the California SD/I standards. 

We are proposing an FEL cap of 150 

g/kW-hr for CO emissions from engines 

below 373 kW. These FEL caps 

represent the average baseline emission 

levels of SD/I engines, based on data 

described in the Draft RIA. The 

analogous figures for high-performance 

engines are 30 g/kW-hr for HC+NOX and 

350 g/kW-hr for CO, as described in 

Section III.C.(d). 

Except as specified below for jet boat 

engines, we are proposing to keep 

OB/PWC engines and SD/I engines in 

separate averaging sets. This means that 

credits earned by SD/I and OB/PWC 

engines are counted separately and may 

not be exchanged to demonstrate 


sroberts on PROD1PC70 with PROPOSALS
28118 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

compliance with emission standards. 

Most of the engine manufacturers 

building SD/I engines do not also build 

OB/PWC engines. The exception to this 

is the largest manufacturer in both 

categories. We are concerned that 

allowing averaging, banking, or trading 

between OB/PWC engines and SD/I 

engines would not provide the greatest 

achievable reductions, because the level 

of the standard we are proposing is 

premised on the use of aftertreatment 

technology in SD/I engines, and is based 

on what is feasible for SD/I engines. We 

did not set the SD/I level based on the 

reductions achievable between OB/PWC 

and SD/I, but instead based on what is 

achievable by SD/I engines alone. The 

proposed limitation on ABT credits is 

consistent with this approach to setting 

the level of the SD/I standard. In 

addition, allowing such credit usage 

could provide an incentive to avoid the 

use of aftertreatment technologies in 

SD/I engines. This could create a 

competitive disadvantage for the many 

small manufacturers of SD/I engines 

that do not also produce OB/PWC 

engines. 

We propose that emission credits for 

SD/I engines have an unlimited credit 

life with no discounting. We consider 

these emission credits to be part of the 

overall program for complying with the 

proposed standards. Given that we may 

consider further reductions beyond 

these standards in the future, we believe 

it will be important to assess the ABT 

credit situation that exists at the time 

any further standards are considered. 

We would need to set such future 

emission standards based on the 

statutory direction that emission 

standards must represent the greatest 

degree of emission control achievable, 

considering cost, safety, lead time, and 

other factors. Emission credit balances 

will be part of the analysis for 

determining the appropriate level and 

timing of new standards. If we were to 

allow the use of credits generated under 

this proposed program for future, more 

stringent, standards, we may, depending 

on the level of emission credit banks, 

need to adopt emission standards at 

more stringent levels or with an earlier 

start date than we would absent the 

continued or limited use of existing 

emission credits. Alternatively, we 

could adopt future standards without 

allowing the use of existing emission 

credits. 

We are requesting comment on one 

particular issue regarding credit life. As 

proposed, credits earned under the 

exhaust ABT program would have an 

unlimited lifetime. This could result in 

a situation where credits generated by 

an engine sold in a model year are not 

used until many years later when the 

engines generating the credits have been 

scrapped and are no longer part of the 

fleet. EPA believes there may be value 

to limiting the use of credits to the 

period that the credit-generating engines 

exist in the fleet. For this reason, EPA 

requests comment on limiting the 

lifetime of the credits to five years or, 

alternatively, to the regulatory useful 

life of the engine. 

(b) Early-Credit Approaches 

We are proposing an early-credit 

program in which a manufacturer could 

earn emission credits before 2009 with 

early introduction of emission controls 

designed to meet the proposed 

standards (see § 1045.145). For engines 

produced by small-volume SD/I 

manufacturers that are eligible for the 

proposed two-year delay described in 

Section III.F.2, early credits could be 

earned before 2011. While we believe 

adequate lead time is provided to meet 

the proposed standards, we recognize 

that flexibility in timing could help 

some manufacturers—particularly small 

manufacturers—to meet the new 

standards. Other manufacturers that are 

able to comply early on certain models 

would be better able to transition their 

full product line to the new standards 

by spreading out the transition over two 

years or more. Under this approach, we 

anticipate that manufacturers would 

generate credits through the use of 

catalysts. 

Manufacturers would generate these 

credits based on the difference between 

the measured emission level of the clean 

engines and an assigned baseline level 

(16 g/kW-hr HC+NOX and 150 g/kW-hr 

CO). These assigned baseline levels are 

based on data presented in Chapter 4 of 

the Draft RIA representing the average 

level observed for uncontrolled engines. 

We are also proposing to provide bonus 

credits to any manufacturer that certifies 

early to the proposed standard to 

provide a further incentive for 

introducing catalysts in SD/I engines. 

The bonus credits would take the form 

of a multiplier times the earned credits. 

The proposed multipliers are 1.25 for 

one year early, 1.5 for two years early, 

and 2.0 for three years early. For 

example, a small-volume manufacturer 

certifying an engine to 5.0 g/kW-hr 

HC+NOX in 2009 (2 years early) would 

get a bonus multiplier of 1.5. Therefore, 

early HC+NOX credits would be 

calculated using the following equation: 

credits [grams] = (16¥5) × Power [kW] 

× Useful Life [hours] × Load Factor × 

1.5. We are proposing to use a load 

factor of 0.207, that is currently used in 

the OB/PWC calculations. 

To earn these credits, the engine 

would have to meet both the proposed 

HC+NOX and CO standards. These early 

credits would be treated the same as 

emission credits generated after the 

emission standards start to apply. This 

approach would provide an incentive 

for manufacturers to pull ahead 

significantly cleaner technologies. We 

believe such an incentive would lead to 

early introduction of catalysts on SD/I 

and help promote earlier market 

acceptance of this technology. Because 

of the proposed credit life, these credits 

would only be able to be used during 

the transition period to the new 

standards. We believe this proposed 

early credit program will allow 

manufactures to comply to the proposed 

standards in an earlier time frame than 

they would otherwise because it allows 

them to spread out their development 

resources over multiple years. To ensure 

that manufacturers do not generate 

credits for already required activities, no 

credits would be generated for the 

proposed federal program for engines 

that are produced for sale in California. 

We request comment on this approach. 

Alternatively, we request comment on 

the alternative of an early ‘‘family 

banking’’ approach. Under this 

approach, we would allow 

manufacturers to certify an engine 

family early to the proposed standards. 

For each year of certifying engines early, 

the manufacturer would be able to delay 

certification of a comparable number of 

engines by one year, taking into account 

the relative power ratings of the 

different engine families. This would be 

based on the actual sales and would 

require no calculation or accounting of 

emission credits. This approach would 

not provide the same degree of precision 

as the early-credit program described 

above, but it may be an effective way of 

helping manufacturers make the 

transition to new emission standards. 

See 40 CFR 1048.145(a) for an example 

of regulations that implement such a 

family banking program. 

We request comment on the above 

early-credit approaches or any other 

approach that would help 

manufacturers bring the product lines 

into compliance with the proposed 

standards without compromising overall 

emission reductions. Any allowance for 

high-emitting or late-compliant engines 

should be offset by emission controls 

that achieve emission reductions 

beyond that required by the new 

standards. We request comment on the 

merits of the various approaches noted 

above and others that commenters may 

wish to suggest. We request that 

commenters provide detailed comments 

on how the approaches described above 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28119 

should be set up, enhanced, or 

constrained to ensure that they serve 

their purpose without diminishing the 

overall effectiveness of the standards. 

(c) Jet Boats 

Sterndrive and inboard vessels are 

typically propelled by traditional SD/I 

engines based on automotive engine 

blocks. As explained in Section IV, we 

are proposing to amend the definition of 

personal watercraft engine to ensure 

that engines used on jet boats would no 

longer be classified as personal 

watercraft engines but instead as SD/I 

engines because jet boats are more 

comparable to SD/I vessels. However, 

manufacturers in some cases make these 

jet boats by installing an engine also 

used in outboard or personal watercraft 

applications (less than 4 meters in 

length) and coupling the engine to a jet 

drive for propelling the jet boat. Thus, 

manufacturers of outboard or personal 

watercraft engines may also 

manufacture the same or similar engine 

for use on what we would propose here 

to be considered a jet boat (whose 

engine we would therefore proposed to 

be subject to SD/I standards). 

We are proposing to allow some 

flexibility in meeting new emission 

standards for jet boat engines because 

they are currently designed to use 

engines derived from OB/PWC 

applications and because of their 

relatively low sales volumes. We are 

also proposing to allow manufacturers 

to use emission credits generated from 

outboard and personal watercraft 

engines to demonstrate that their jet 

boat engines meet the proposed 

HC+NOX and CO standards for SD/I 

engines (see § 1045.660 and § 1045.701). 

We further propose that such engine 

manufacturers may only use this 

provision if the engines are certified as 

outboard or personal watercraft engines, 

and if the majority of units sold in the 

United States from those related engine 

families are sold for use as outboard or 

personal watercraft engines. We would 

decide whether a majority of engine 

units are sold for use as outboard or 

personal watercraft engines based on 

projected sales volumes from the 

application for certification. 

Manufacturers would need to group 

SD/I engines used for jet boats in a 

separate engine family from the 

outboard or personal watercraft engine 

to ensure proper labeling and 

calculation of emission credits, but 

manufacturers could rely on emission 

data from the same prototype engine for 

certifying both engine families. Finally, 

we propose that manufacturers of jet 

boat engines subject to SD/I standards 

and using credits from outboard or 

personal watercraft engines must certify 

these jet boat engines to an FEL that 

meets or exceed the standards for 

outboard and personal watercraft 

engines. This limits the degree to which 

manufacturers may take advantage of 

emission credits to produce engines that 

are emitting at higher levels than 

competitive engines. As such, the FELs 

for these engines must therefore be at or 

below the proposed emission standards 

for outboard and personal watercraft 

engines. 

(d) SD/I High-Performance Engines 

We are proposing that the ABT 

program described above (III.C.3(a) 

through (c)) would also include SD/I 

high-performance engines. 

Manufacturers would be able to use 

emission credits from conventional 

SD/I engines to offset credit deficits 

from higher-emitting SD/I highperformance engines. Although SD/I 

high-performance engines represent 

fewer than 1 percent of total SD/I engine 

sales, there are many more companies 

producing SD/I high-performance 

engines than conventional SD/I engines. 

Because of the relatively small sales of 

these engines, a large manufacturer with 

a broad product line could readily offset 

a potential credit deficit by using credits 

from high-volume SD/I engines. In 

contrast, most manufacturers of SD/I 

high-performance engines are small 

businesses that do not also produce 

conventional SD/I engines. Section III.F 

discusses special provisions intended to 

reduce the burden for small businesses 

to meet the proposed standards. We 

request comment on whether this ABT 

program would create a competitive 

disadvantage for small businesses. 

We are proposing an approach in 

which manufacturers can use default 

emission factor of 30 g/kW-hr for 

HC+NOX emissions and 350 g/kW-hr for 

CO emissions in lieu of testing for 

certification. For purposes of this ABT 

program these default emission factors, 

if used in lieu of testing, would be used 

for certification to an FEL at these 

levels. Thus, the emission credits 

needed would be the difference between 

the default levels and the applicable 

standard (see § 1045.240). These default 

emission levels represent the highest 

emission rates observed on uncontrolled 

engines. Manufacturers would always 

have the option of conducting tests to 

establish a measured emission rate to 

reduce or eliminate the need to use 

emission credits. While this testing may 

require additional setup and 

preparation, we believe it would be 

possible even for the most high-powered 

engines. To avoid the possibility of 

manufacturers selectively taking 

advantage of the default values, we 

would require them to rely on measured 

values for both HC+NOX and CO 

emissions if they do testing. 

For the purposes of the credit 

calculations, we are proposing to use an 

hours term longer than the proposed 

useful life for these engines. The 

proposed useful life for traditional SD/ 

I engines is intended to reflect the full 

useable life of the engine. For highperformance engines the proposed 

useful life is intended to reflect the 

expected time until the engine is rebuilt. 

High-performance engines are typically 

rebuilt several times. In fact, 

manufacturers have indicated that it is 

common for the boat owner to own two 

pairs of engines so that they can use one 

pair while the other is being rebuilt. 

Therefore, the proposed useful life does 

not reflect the full life of the engine, 

including rebuilds, over which emission 

credits would be used (or generated). 

We are proposing, for purposes of the 

credit calculations, that a life of 480 

hours would be used for highperformance SD/I engines at or below 

485 kW and 250 hours for engines above 

485 kW. We request comment on the 

number of times that high-performance 

engines are typically rebuilt and how 

the number of rebuilds should be 

addressed in the credit calculations. 

(4) Crankcase Emissions 

Due to blowby of combustion gases 

and the reciprocating action of the 

piston, exhaust emissions can 

accumulate in the crankcase. 

Uncontrolled engine designs route these 

vapors directly to the atmosphere. 

Closed crankcases have become 

standard technology for automotive 

engines and for outboard and personal 

watercraft engines. Manufacturers 

generally do this by routing crankcase 

vapors through a valve into the engine’s 

air intake system. We propose to require 

manufacturers to prevent crankcase 

emissions from SD/I marine engines (see 

§ 1045.115). Because automotive engine 

blocks are already tooled for closed 

crankcases, the cost of adding a valve 

for positive crankcase ventilation is 

small for SD/I engines. Even with nonautomotive blocks, the tooling changes 

necessary for closing the crankcase are 

straight-forward. 

(5) Durability Provisions 

We rely on pre-production 

certification, and other programs, to 

ensure that engines control emissions 

throughout their intended lifetime of 

operation. Section VII describes how we 

are proposing to require manufacturers 

to incorporate laboratory aging in the 

certification process, how we limit the 


sroberts on PROD1PC70 with PROPOSALS
28120 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

extent of maintenance that 

manufacturers may specify to keep 

engines operating as designed, and other 

general provisions related to 

certification. The following sections 

describe additional provisions that are 

specific to SD/I engines. 

(a) Useful Life 

We are proposing to specify a useful 

life period of 480 hours or ten years, 

whichever comes first. The engines 

would be subject to the emission 

standards during this useful life period. 

This is consistent with the requirements 

adopted by California ARB (see 

§ 1045.105). We are further proposing 

that the 480-hour useful life period is a 

baseline value, which may be extended 

if data show that the average service life 

for engines in the family is longer. For 

example, we may require that the 

manufacturer certify the engine over a 

longer useful life period that more 

accurately represents the engines’

expected operating life if we find that 

in-use engines are typically operating 

substantially more than 480 hours. This 

approach is similar to what we adopted 

for recreational vehicles. 

For high-performance SD/I engines (at 

or above 373 kW), we are proposing a 

useful life of 150 hours or 3 years for 

engines at or below 485 kW and a useful 

life of 50 hours or 1 year for engines 

above 485 kW. Due to the high power 

and high speed of these engines, 

mechanical parts are often expected to 

wear out quickly. For instance, one 

manufacturer indicated that some 

engines above 485 kW have scheduled 

head rebuilds between 50 and 75 hours 

of operation. These proposed useful life 

values are consistent with the California 

ARB regulations for high-performance 

SD/I engines. We request comment on 

the proposed useful life requirements 

for high performance marine engines. 

Some SD/I engines below 373 kW 

may be designed for high power output 

even though they do not reach the 

power threshold to qualify as SD/I highperformance engines. Because they do 

not qualify for the shorter useful life 

that applies to SD/I high-performance 

engines, they would be subject to the 

default value of 480 hours for other SD/ 

I engines. However, to address the 

limited operating life for engines that 

are designed for especially high power 

output, we are proposing to allow 

manufacturers to request a shorter 

useful life for such an engine family 

based on information showing that 

engines in the family rarely operate 

beyond the requested shorter period. 

For example, if engines designed for 

extremely high performance are 

typically rebuilt after 250 hours of 

operation, this would form the basis for 

establishing a shorter useful life period 

for those engines. See the proposed 

regulations for additional detail in 

establishing a shorter useful life. 

(b) Warranty Periods 

We are proposing that manufacturers 

must provide an emission-related 

warranty during the first 3 years or 480 

hours of engine operation, whichever 

comes first (see § 1045.120). This 

warranty period would apply equally to 

emission-related electronic components 

on SD/I high-performance engines. 

However, we are proposing shorter 

warranty periods for emission-related 

mechanical components on SD/I highperformance engines because these parts 

are expected to wear out more rapidly 

than comparable parts on traditional 

SD/I engines. Specifically, we are 

proposing a warranty period for 

emission-related mechanical 

components of 3 years or 150 hours for 

engines between 373 and 485 kW, and 

1 year or 50 hours for engines above 485 

kW. These proposed warranty periods 

are the same as those adopted by the 

California ARB. 

If the manufacturer offers a longer 

warranty for the engine or any of its 

components at no additional charge, we 

propose that the emission-related 

warranty for the respective engine or 

component must be extended by the 

same amount. The emission-related 

warranty includes components related 

to controlling exhaust, evaporative, and 

crankcase emissions from the engine. 

This approach to setting warranty 

requirements is consistent with 

provisions that apply in most other 

programs for nonroad engines. 

(6) Engine Diagnostics 

We are proposing to require that 

manufacturers design their SD/I engines 

to diagnose malfunctioning emission 

control systems starting with the 

introduction of the proposed standards 

(see § 1045.110). As discussed in the 

Draft RIA, three-way catalyst systems 

with closed-loop fueling control work 

well only when the air-fuel ratios are 

controlled to stay within a narrow range 

around stoichiometry. Worn or broken 

components or drifting calibrations over 

time can prevent an engine from 

operating within the specified range. 

This increases emissions and can lead to 

significantly increased fuel 

consumption and engine wear. The 

operator may or may not notice the 

change in the way the engine operates. 

We are not proposing to require similar 

diagnostic controls for OB/PWC or 

Small SI engines because the 

anticipated emission control 

technologies for these other applications 

are generally less susceptible to drift 

and gradual deterioration. We have 

adopted similar diagnostic requirements 

for Large SI engines operating in 

forklifts and other industrial equipment 

that also use three-way catalysts to meet 

emission standards. 

This diagnostic requirement focuses 

solely on maintaining stoichiometric 

control of air-fuel ratios. This kind of 

design detects problems such as broken 

oxygen sensors, leaking exhaust pipes, 

fuel deposits, and other things that 

require maintenance to keep the engine 

at the proper air-fuel ratio. 

Diagnostic monitoring provides a 

mechanism to help keep engines tuned 

to operate properly, with benefits for 

both controlling emissions and 

maintaining optimal performance. There 

are currently no inspection and 

maintenance programs for marine 

engines, so the most important variable 

in making the emission control and 

diagnostic systems effective is in getting 

operators to repair the engine when the 

diagnostic light comes on. This calls for 

a relatively simple design to avoid 

signaling false failures as much as 

possible. The diagnostic requirements in 

this rule therefore focus on detecting 

inappropriate air-fuel ratios, which is 

the most likely failure mode for threeway catalyst systems. The malfunction 

indicator light must go on when an 

engine runs for a full minute under 

closed-loop operation without reaching 

a stoichiometric air-fuel ratio. 

California ARB has adopted 

diagnostic requirements for SD/I 

engines that involve a more extensive 

system for monitoring catalyst 

performance and other parameters. We 

would accept a California-approved 

system as meeting EPA requirements. 

However, we believe the simpler system 

described above is better matched to the 

level of emission control involved, and 

is more appropriate in the context of 

recreational boating by consumers who 

are not subject to any systematic 

requirements for inspecting or 

maintaining their engines. 

The proposed regulations direct 

manufacturers to follow standard 

practices defined in documents adopted 

by the International Organization for 

Standardization (ISO) that establish 

protocols for automotive systems. The 

proposed regulations also state that we 

may approve variations from these 

industry standards, because individual 

manufacturers may have systems with 

unique operating parameters that 

warrant a deviation from the automotive 

approach. Also, if a new voluntary 

consensus standard is adopted to define 

appropriate practices for marine 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28121 

engines, we would expect to incorporate 

that new standard into our regulations. 

See § 1045.110 of the draft regulations 

for more information. 

D. Test Procedures for Certification 

(1) General Provisions 

The proposed test procedures are 

generally the same for both SD/I and 

OB/PWC engines. This involves 

laboratory measurement of emissions 

while the engine operates on the ISO E4 

duty cycle. This is a five-mode steadystate duty cycle including an idle mode 

and four modes lying on a propeller 

curve with an exponent of 2.5, as shown 

in Appendix II to part 1045 of the draft 

regulations. The International 

Organization for Standardization (ISO) 

intended for this cycle to be used for 

recreational spark-ignition marine 

engines installed in vessels up to 24 m 

in length. Because most or all vessels 

over 24 m have diesel engines, we 

believe the E4 duty cycle is most 

appropriate for SD/I engines covered by 

this rule. There may be some sparkignition engines installed in vessels 

somewhat longer than 24 m, but we 

believe the E4 duty cycle is no less 

appropriate in these cases. See Section 

IV.D for a discussion of adjustments to 

the test procedures related to the 

migration to 40 CFR part 1065, testing 

with a ramped-modal cycle, 

determining maximum test speed for 

denormalizing the duty cycle, and 

testing at higher altitudes. 

The E4 duty cycle is gives a weighting 

of 40 percent for idle. High-performance 

engine manufacturers have expressed 

their belief that the E4 duty cycle 

overstates the idle fraction of operation 

of high-performance engines. They 

stated that these engines are rarely 

operated at idle and are therefore 

primarily designed for mid-range and 

high-power operation at the expense of 

rough idle operation. We request 

comment on whether the modes for the 

proposed duty cycle should be 

reweighted toward higher power for 

high-performance engines. Commenters 

should support their assertions with 

data on high-performance engine use. If 

constructive data are forthcoming, we 

may finalize an alternative cycle 

weighting for high-performance engines 

based on this data. 

(2) Not-to-Exceed Test Procedures and 

Standards 

We are proposing not-to-exceed (NTE) 

requirements similar to those 

established for marine diesel engines. 

Engines would be required to meet the 

NTE standards during normal in-use 

operation. We request comment on 

applying the proposed NTE 

requirements to spark-ignition marine 

engines and on the application of the 

requirements to these engines. 

(a) Concept 

Our goal is to achieve control of 

emissions over a wide range of ambient 

conditions and over the broad range of 

in-use speed and load combinations that 

can occur on a marine engine. This 

would ensure real-world emission 

control, rather than just controlling 

emissions under certain laboratory 

conditions. An important tool for 

achieving this goal is an in-use testing 

program with an objective standard and 

an easily implemented test procedure. 

Our traditional approach has been to set 

a numerical standard on a specified test 

procedure and rely on the additional 

prohibition of defeat devices to ensure 

in-use control over a broad range of 

operation not included in the test 

procedure. 

We are proposing to apply the same 

prohibition on defeat devices for OB/ 

PWC and SD/I engines (see § 1045.115). 

No single test procedure or test cycle 

can cover all real-world applications, 

operations, or conditions. Yet to ensure 

that emission standards are providing 

the intended benefits in use, we must 

have a reasonable expectation that 

emissions under real-world conditions 

reflect those measured on the test 

procedure. The defeat device 

prohibition is designed to ensure that 

emission controls are employed during 

real-world operation, not just under 

laboratory testing conditions. However, 

the defeat device prohibition is not a 

quantified standard and does not have 

an associated test procedure, so it does 

not have the clear objectivity and ready 

enforceability of a numerical standard 

and test procedure. We believe using the 

traditional approach, i.e., using only a 

standardized laboratory test procedure 

and test cycle, makes it difficult to 

ensure that engines will operate with 

the same level of control in use as in the 

laboratory. 

Because the proposed duty cycle uses 

only five modes on an average propeller 

curve to characterize marine engine 

operation, we are concerned that an 

engine designed to the proposed duty 

cycle would not necessarily perform the 

same way over the range of speed and 

load combinations seen on a boat. This 

proposed duty cycle is based on an 

average propeller curve, but a marine 

propulsion engine may never be fitted 

with an ‘‘average propeller.’’ For 

instance, an engine fit to a specific boat 

may operate differently based on how 

heavily the boat is loaded. 

To ensure that engines control 

emissions over the full range of speed 

and load combinations seen on boats, 

we propose to establish a zone under 

the engine’s power curve where the 

engine may not exceed a specified 

emission limit (see § 1045.105 and 

§ 1045.515). This limit would apply to 

all regulated pollutants during steadystate operation. In addition, we propose 

that a wide range of real ambient 

conditions be included in testing with 

this NTE zone. The NTE zone, limit, and 

ambient conditions are described below. 

We believe there are significant 

advantages to establishing NTE 

standards. The proposed NTE test 

procedure is flexible, so it can represent 

the majority of in-use engine operation 

and ambient conditions. The NTE 

approach thus takes all the benefits of 

a numerical standard and test procedure 

and expands it to cover a broad range 

of conditions. Also, laboratory testing 

makes it harder to perform in-use testing 

because either the engines would have 

to be removed from the vessel or care 

would have to be taken to achieve 

laboratory-type conditions on the vessel. 

With the NTE approach, in-use testing 

and compliance become much easier 

since emissions may be sampled during 

normal boating. By establishing an 

objective measurement, this approach 

makes enforcement of defeat device 

provisions easier and provides more 

certainty to the industry. 

Even with the NTE requirements, we 

believe it is still appropriate to retain 

standards based on the steady-state duty 

cycle. This is the standard that we 

expect the certified marine engines to 

meet on average in use. The NTE testing 

is focused more on maximum emissions 

for segments of operation and, in most 

cases, would not require additional 

technology beyond what is used to meet 

the proposed standards. In some cases, 

the calibration of the engine may need 

to be adjusted. We believe that basing 

the emission standards on a distinct 

cycle and using the NTE zone to ensure 

in-use control creates a comprehensive 

program. 

We believe the technology used to 

meet the standards over the five-mode 

duty cycle will meet the caps that apply 

across the NTE zone. We therefore do 

not expect the proposed NTE standards 

to cause manufacturers to need 

additional technology. We believe the 

NTE standard will not result in a large 

amount of additional testing, because 

these engines should be designed to 

perform as well in use as they do over 

the five-mode test. However, our cost 

analysis in the Draft RIA accounts for 

some additional testing, especially in 

the early years, to provide 


sroberts on PROD1PC70 with PROPOSALS
28122 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

manufacturers with assurance that their 

engines would meet the proposed NTE 

requirements. 

(b) Shape of NTE Zone 

Figure III–1 illustrates our proposed 

NTE zone for SD/I engines. We 

developed this zone based on the range 

of conditions that these engines 

typically see in use. Manufacturers 

collected data on several engines 

installed on vessels and operated under 

light and heavy load. Chapter 4 of the 

Draft RIA presents this data and 

describes the development of the 

boundaries and conditions associated 

with the proposed NTE zone. Although 

significant in-use engine operation 

occurs at low speeds, we are excluding 

operation below 40 percent of maximum 

test speed because brake-specific 

emissions increase dramatically as 

power approaches zero. An NTE limit 

for low-speed or low-power operation 

would be very hard for manufacturers 

and EPA to implement in a meaningful 

way. We are proposing NTE limits for 

the subzones shown in Figure III–1, as 

described below. We request comment 

on the proposed NTE zone and 

subzones. 

We propose to allow manufacturers to 

request approval for adjustments to the 

size and shape of the NTE zone for 

certain engines, if they can show that 

the engine will not see operation 

outside of the revised NTE zone in use 

(see § 1045.515). We would not want 

manufacturers to go to extra lengths to 

design and test their engines to control 

emissions for operation that will not 

occur in use. However, manufacturers 

would still be responsible for all 

operation of an engine on a vessel that 

would reasonably be expected to be 

seen in use, and they would be 

responsible for ensuring that their 

specified operation is indicative of realworld operation. In addition, if a 

manufacturer designs an engine for 

operation at speeds and loads outside of 

the proposed NTE zone, the 

manufacturer would be responsible for 

notifying us so the NTE zone can be 

modified appropriately to include this 

operation for that engine family. 

(c) Excluded Operation 

As with marine diesel engines, we are 

proposing that only steady-state 

operation be included for NTE testing 

(see § 1045.515). Steady-state operation 

would generally mean setting the 

throttle (or speed control) in a fixed 

position. We believe most operation 

with Marine SI engines involves 

nominally steady-state operator 

demand. It is true that boats often 

experience rapid accelerations, such as 

with water skiing. However, boats are 

typically designed for planing operation 

at relatively high speeds. This limits the 

degree to which we would expect 

engines to experience frequent 

accelerations during extended 

operation. Also, because most of the 

transient events involve acceleration 

from idle to reach a planing condition, 

most transient engine operation is 

outside the NTE zone and would 

therefore not be covered by NTE testing 

anyway. Moreover, we believe OB/PWC 

and SD/I engines designed to comply 

with steady-state NTE requirements will 

be using technologies that also work 

effectively under the changing speed 

and load conditions that may occur. If 

we find there is substantial transient 

operation within the NTE zone that 

causes significantly increased emissions 

from installed engines, we will revisit 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.000</GPH>
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28123 

this provision in the future. We request 

comment on the appropriateness of 

excluding transient operation from NTE 

requirements. 

We are aware that SD/I engines may 

not be able to meet emission standards 

under all conditions, such as times 

when emission control must be 

compromised for startability or safety. 

We are proposing to specify that NTE 

testing excludes engine starting and 

warm-up. We would allow 

manufacturers to design their engines to 

utilize engine protection strategies that 

would not be covered by defeat device 

provisions or NTE standards. This is 

analogous to the tampering exemptions 

incorporated into 40 CFR 1068.101(b)(1) 

to address emergencies. We believe it is 

appropriate to allow manufacturers to 

design their engines with ‘‘limp-home’’

capabilities to prevent a scenario where 

an engine fails to function, leaving an 

operator on the water without any 

means of propulsion. 

(d) NTE Emission Limits 

We are proposing NTE limits for the 

subzones shown in Figure III–1 above 

based on data collected from several 

SD/I engines equipped with catalysts. 

These data and our analysis are 

presented in Chapter 4 of the Draft RIA. 

See Section IV.C for a discussion of NTE 

limits for OB/PWC engines. 

Because the proposed NTE zone does 

not include the idle point, which is 

weighted at 40 percent of the 

certification duty cycle, brake-specific 

emissions throughout most of the 

proposed NTE zone are less than the 

weighted average from the steady-state 

testing. For most of the NTE zone, we 

are therefore proposing a limit equal to 

the duty cycle standard (i.e., NTE 

multiplier = 1.0). However, data on lowemission engines show that brakespecific emissions increase for engine 

speeds below 50 percent of maximum 

test speed (Subzone 4). We are therefore 

proposing an HC+NOX cap of 1.5 times 

the certification level in Subzone 4. 

Emission data on catalyst-equipped 

engines also show higher emissions near 

full-power operation. We understand 

that richer air-fuel ratios are needed 

under high-power operation to protect 

the engines from overheating. We are 

therefore proposing higher NTE limits 

for engine speeds at or above 90 percent 

of rated test speed and at or above 100 

percent of peak torque measured at the 

rated test speed (Subzone 1). 

Specifically, we are proposing an 

HC+NOX cap of 1.5 times the duty cycle 

standard and a CO cap of 3.5 times the 

duty cycle standard for Subzone 1. We 

request comment on the proposed NTE 

limits for SD/I engines. These limits are 

summarized in Table III–1. 

TABLE III–1.—PROPOSED NTE LIMITS BY SUBZONE FOR SD/I ENGINES

Pollutant Subzone 1 Subzone 2 Subzone 3 Subzone 4 

HC+NOX .......................................................................................................... 1.5 1.0 1.0 1.5 

CO .................................................................................................................... 3.5 1.0 1.0 1.0 

SD/I engine manufacturers have 

begun developing prototype engines 

with catalysts, and one manufacturer is 

currently selling SD/I engines equipped 

with catalysts. These manufacturers 

have indicated that they begin moving 

to richer air-fuel ratio calibrations at 

torque values greater than 80 percent of 

maximum. These richer air-fuel ratios 

give more power but because more fuel 

is burned also lead to higher 

hydrocarbon and carbon monoxide 

emission rates. Part of the 

manufacturers’ rationale in selecting the 

appropriate air-fuel ratio in this type of 

operation is to protect the engine by 

minimizing excess air, which would 

lead to greater engine temperatures as 

increased combustion of fuel and 

exhaust gases. To avoid the adverse 

effects of this potential for overheating, 

we request comment on whether 

subzone 1 should be expanded to 

accommodate the engine-protection 

strategies needed for SD/I engines at 

high power. In addition, we request 

comment on the proposed NTE limits in 

subzone 1 with respect to open-loop 

engine operation, especially for carbon 

monoxide. 

Marine engine manufacturers have 

suggested alternative approaches to 

setting NTE limits for marine engines, 

which are discussed in Section IV.C.2. 

Largely, these suggestions have been 

made to address the emission variability 

between test modes seen in directinjection two-stroke outboard and PWC 

engines. However, we request comment 

on alternative approaches for SD/I 

engines as well. 

(e) Ambient Conditions 

Variations in ambient conditions can 

affect emissions. Such conditions 

include air temperature, water 

temperature, and barometric pressure, 

and humidity. We are proposing to 

apply the comparable ranges for these 

variables as for marine diesel engines 

(see § 1045.515). Within the ranges, 

there is no calculation to correct 

measured emissions to standard 

conditions. Outside of the ranges, 

emissions could be corrected back to the 

nearest end of the range using good 

engineering practice. The proposed 

ranges are 13 to 35 °C (55 to 95 °F) for 

ambient air temperature, 5 to 27 °C (41 

to 80 °F) for ambient water temperature, 

and 94.0 to 103.325 kPa for atmospheric 

pressure. We do not specify a range of 

humidity values, but propose only to 

require that laboratory testing be 

conducted at humidity levels 

representing in-use conditions. 

(f) Measurement Methods 

While it may be easier to test outboard 

engines in the laboratory, there is a 

strong advantage to using portable 

measurement equipment to test SD/I 

engines and personal watercraft without 

removing the engine from the vessel. 

Field testing would also provide a much 

better means of measuring emissions to 

establish compliance with the NTE 

standards, because it is intended to 

ensure control of emissions during 

normal in-use operation that may not 

occur during laboratory testing over the 

specified duty cycle. We propose to 

apply the field testing provisions for all 

SD/I engines. These field-testing 

procedures are described further in 

Section IV.E.2.d. We request comment 

on any ways the field testing procedures 

should be modified to address the 

unique operating characteristics of 

marine engines. 

A parameter to consider is the 

minimum sampling time for field 

testing. A longer period allows for 

greater accuracy, due mainly to the 

smoothing effect of measuring over 

several transient events. On the other 

hand, an overly long sampling period 

can mask areas of engine operation with 

poor emission control characteristics. 

To balance these concerns, we are 

applying a minimum sampling period of 

30 seconds. This is consistent with the 

requirement for marine diesel engines. 

Spark-ignition engines generally don’t 

have turbochargers and they control 

emissions largely by maintaining airfuel ratio. Spark-ignition engines are 

therefore much less prone to consistent 


sroberts on PROD1PC70 with PROPOSALS
28124 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

77See Cost Analysis Document at p. 21 associated 

with the proposed fees rule (http://www.epa.gov/ 

otaq/fees.htm). 

emission spikes from off-cycle or 

unusual engine operation. We believe 

the minimum 30 second sampling time 

will ensure sufficient measurement 

accuracy and will allow for meaningful 

measurements. 

We do not specify a maximum 

sampling time. We expect 

manufacturers testing in-use engines to 

select an approximate sampling time 

before measuring emissions; however, 

the standards apply for any sampling 

time that meets the minimum. 

(g) Certification 

We propose to require that 

manufacturers state in their application 

for certification that their engines will 

comply with the NTE standards under 

any nominally steady-state combination 

of speeds and loads within the proposed 

NTE zone (see § 1045.205). The 

manufacturer would also provide a 

detailed description of all testing, 

engineering analysis, and other 

information that forms the basis for the 

statement. This statement would be 

based on testing and, if applicable, other 

research that supports such a statement, 

consistent with good engineering 

judgment. We would be able to review 

the basis for this statement during the 

certification process. For marine diesel 

engines, we have provided guidance 

that manufacturers may demonstrate 

compliance with NTE standards by 

testing their engines at a number of 

standard points throughout the NTE 

zone. In addition, manufacturers must 

test at a few random points chosen by 

EPA prior to the testing. We request 

comment on this approach for Marine SI 

engines. 

E. Additional Certification and 

Compliance Provisions 

(1) Production Line Testing 

We are proposing to require that 

manufacturers routinely test engines at 

the point of production to ensure that 

production variability does not affect 

the engine family’s compliance with 

emission standards (see part 1045, 

subpart D). These proposed testing 

requirements are the same as we are 

proposing for outboard and personal 

watercraft engines and are very similar 

to those already in place in part 91. See 

Section VII.C.7 and the draft regulations 

for a detailed description of these 

requirements. We may also require 

manufacturers to perform production 

line testing under the selective 

enforcement auditing provisions 

described in Section VIII.E. 

(2) In-Use Testing 

Manufacturers of OB/PWC engines 

have been required to test in-use 

engines to show that they continue to 

meet emission standards. We 

contemplated a similar requirement for 

SD/I engines, but have decided not to 

propose a requirement for a 

manufacturer-run in-use testing program 

at this time. Manufacturers have pointed 

out that it would be very difficult to 

identify a commercial fleet of boats that 

could be set up to operate for hundreds 

of hours, because it is very uncommon 

for commercial operators to have 

significant numbers of SD/I vessels. 

Where there are commercial fleets of 

vessels that may be conducive to 

accelerated in-use service accumulation, 

these vessels generally use outboard 

engines. Manufacturers could instead 

hire drivers to operate the boats, but this 

may be cost-prohibitive. We request 

comment on any other alternative 

approaches that might be available for 

accumulating operating hours with 

SD/I engines. For example, to the extent 

that boat builders maintain a fleet of 

boats for product development or 

employees’ recreational use, those 

engines may be available for emission 

testing after in-use operation. 

There is also a question about access 

to the engines for testing. If engines 

need to be removed from vessels for 

testing in the laboratory, it is unlikely 

that owners would cooperate. However, 

we are proposing test procedures with 

specified portable equipment that 

would potentially allow for testing 

engines that remain installed in boats. 

This is described in Section IV.E.2.d. 

While we are not proposing a program 

to require manufacturers to routinely 

test in-use engines, the Clean Air Act 

allows us to perform our own testing at 

any time with in-use engines to evaluate 

whether they continue to meet emission 

standards throughout the useful life. 

This may involve either laboratory 

testing or in-field testing with portable 

measurement equipment. For laboratory 

tests, we could evaluate compliance 

with either the duty cycle standards or 

the not-to-exceed standards. For testing 

with engines that remain installed on 

marine vessels, we would evaluate 

compliance with the not-to-exceed 

standards. In addition, we may require 

the manufacturer to conduct a 

reasonable degree of testing under Clean 

Air Act section 208 if we have reason 

to believe that an engine family does not 

conform to the regulations. This testing 

may take the form of a Selective 

Enforcement Audit, or we may require 

the manufacturer to test in-use engines. 

(3) Certification Fees 

Under our current certification 

program, manufacturers pay a fee to 

cover the costs for various certification 

and other compliance activities 

associated with implementing the 

emission standards. As explained 

below, we are proposing to assess EPA’s 

compliance costs associated with SD/I 

engines based on EPA’s existing fees 

regulation. Section VI describes our 

proposal to establish a new fees 

category, based on the cost study 

methodology used in establishing EPA’s 

existing fees regulation, for costs related 

to the proposed evaporative emission 

standards for both vessels and 

equipment that would be subject to 

standards under this proposal. 

EPA established a fee structure by 

grouping together various manufacturers 

and industries into fee categories, with 

an explanation that separation of 

industries into groups was appropriate 

to tailor the applicable fee to the level 

of effort expected for EPA to oversee the 

range of certification and compliance 

responsibilities (69 FR 26222, May 11, 

2004). As part of this process, EPA 

conducted a cost analysis to determine 

the various compliance activities 

associated with each fee category and 

EPA’s associated annual cost burden. 

Once the total EPA costs were 

determined for each fee category, the 

total number of certificates involved 

within a fee category was added 

together and divided into the total costs 

to determine the appropriate assessment 

for each anticipated certificate.77 One of 

the fee categories created was for ‘‘Other 

Engines and Vehicles,’’ which includes 

marine engines (both compressionignition and spark-ignition), nonroad 

spark-ignition engines (above and below 

19 kW), locomotive engines, 

recreational vehicles, heavy-duty 

evaporative systems, and heavy-duty 

engines certified only for sale in 

California. These engine and vehicle 

types were grouped together because 

EPA planned a more basic certification 

review than, for example, light-duty 

vehicles. 

EPA determined in the final fees 

rulemaking that it would be premature 

to assess fees for the SD/I engines since 

they were not yet subject to emission 

standards. The fee calculation 

nevertheless includes a projection that 

there will eventually be 25 certificates 

of conformity annually for SD/I engines. 

We are proposing to now formally 

include SD/I engines in the ‘‘Other 

Engines and Vehicles’’ category and 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28125 

assess a fee of $839 for each certificate 

of conformity in 2006. Note that we will 

continue to update assessed fees each 

year, so the actual fee in 2009 and later 

model years will depend on these 

annual calculations (see § 1027.105). 

(4) Special Provisions Related to 

Partially Complete Engines 

It is common practice for Marine SI 

engines for one company to produce the 

base engine for a second company to 

modify for the final application. Since 

our regulations prohibit the sale of 

uncertified engines, we are proposing 

provisions to clarify the status of these 

engines and defining a path by which 

these engines can be handled without 

violating the regulations. See Section XI 

for more information. 

(5) Use of Engines Already Certified to 

Other Programs 

In some cases, manufacturers may 

want to use engines already certified 

under our other programs. Engines 

certified to the emission standards for 

highway applications in part 86 or Large 

SI applications in part 1048 are meeting 

more stringent standards. We are 

therefore proposing to allow the preexisting certification to be valid for 

engines used in marine applications, on 

the condition that the engine is not 

changed from its certified configuration 

in any way (see § 1045.605). 

Manufacturers would need to 

demonstrate that fewer than five percent 

of the total sales of the engine model are 

for marine applications. There are also 

a few minor notification and labeling 

requirements to allow for EPA oversight 

of this provision. 

(6) Import-Specific Information at 

Certification 

We are proposing to require 

additional information to improve our 

ability to oversee compliance related to 

imported engines (see § 1045.205). In 

the application for certification, we are 

proposing to require the following 

additional information: (1) The port or 

ports at which the manufacturer will 

import the engines, (2) the names and 

addresses of the agents the manufacturer 

has authorized to import the engines, 

and (3) the location of the test facilities 

in the United States where the 

manufacturer will test the engines if we 

select them for testing under a selective 

enforcement audit. 

F. Small-Business Provisions 

(1) Small Business Advocacy Review 

Panel 

On June 7, 1999, we convened a Small 

Business Advocacy Review Panel under 

section 609(b) of the Regulatory 

Flexibility Act as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. The purpose of the 

Panel was to collect the advice and 

recommendations of representatives of 

small entities that could be affected by 

this proposed rule and to report on 

those comments and the Panel’s 

findings and recommendations as to 

issues related to the key elements of the 

Initial Regulatory Flexibility Analysis 

under section 603 of the Regulatory 

Flexibility Act. We convened a Panel 

again on August 17, 2006 to update our 

review for this new proposal. The Panel 

reports have been placed in the 

rulemaking record for this proposal. 

Section 609(b) of the Regulatory 

Flexibility Act directs the review Panel 

to report on the comments of small 

entity representatives and make findings 

as to issues related to identified 

elements of an initial regulatory 

flexibility analysis (IRFA) under RFA 

section 603. Those elements of an IRFA 

are: 

• A description of, and where 

feasible, an estimate of the number of 

small entities to which the proposed 

rule will apply; 

• A description of projected 

reporting, recordkeeping, and other 

compliance requirements of the 

proposed rule, including an estimate of 

the classes of small entities that will be 

subject to the requirements and the type 

of professional skills necessary for 

preparation of the report or record; 

• An identification, to the extent 

practicable, of all relevant Federal rules 

that may duplicate, overlap, or conflict 

with the proposed rule; and 

• A description of any significant 

alternative to the proposed rule that 

accomplishes the stated objectives of 

applicable statutes and that minimizes 

any significant economic impact of the 

proposed rule on small entities. 

In addition to the EPA’s Small 

Business Advocacy Chairperson, the 

Panel consisted of the Director of the 

Assessment and Standards Division of 

the Office of Transportation and Air 

Quality, the Administrator of the Office 

of Information and Regulatory Affairs 

within the Office of Management and 

Budget, and the Chief Counsel for 

Advocacy of the Small Business 

Administration. 

Using definitions provided by the 

Small Business Administration (SBA), 

companies that manufacture internalcombustion engines and that employ 

fewer than 1000 employees are 

considered small businesses for a Small 

Business Advocacy Review (SBAR) 

Panel. Equipment manufacturers, boat 

builders, and fuel system component 

manufacturers that employ fewer than 

500 people are considered small 

businesses for the SBAR Panel. Based 

on this information, we asked 25 

companies that met the SBA small 

business thresholds to serve as small 

entity representatives for the duration of 

the Panel process. Of these 25 

companies, 13 were involved in the 

marine industry. These companies 

represented a cross-section of SD/I 

engine manufacturers, boat builders, 

and fuel system component 

manufacturers. 

With input from small entity 

representatives, the Panel reports 

provide findings and recommendations 

on how to reduce potential burden on 

small businesses that may occur as a 

result of this proposed rule. The Panel 

reports are included in the rulemaking 

record for this proposal. In light of the 

Panel reports, and where appropriate, 

the agency has made changes to the 

provisions anticipated for the proposed 

rule. The proposed options 

recommended to us by the Panel are 

described below. 

(2) Proposed Burden Reduction 

Approaches for Small-Volume SD/I 

Engine Manufacturers 

We are proposing several options for 

small-volume SD/I engine 

manufacturers. For purposes of 

determining which engine 

manufacturers are eligible for the small 

business provisions described below for 

SD/I engine manufacturers, we are 

proposing criteria based on a production 

cut-off of 5,000 SD/I engines per year. 

Under this approach, we would allow 

engine manufacturers that exceed the 

production cut-off level noted above to 

request treatment as a small business if 

they have fewer than the number of 

employees specified above. In such a 

case, the manufacturer would provide 

information to EPA demonstrating the 

number of employees in their employ. 

The proposed options would be used at 

the manufacturers’ discretion. We 

request comment on the appropriateness 

of these options, which are described in 

detail below. 

(a) Additional Lead Time 

One small business marine engine 

manufacturer is already using catalytic 

converters on some of its production 

SD/I marine engines below 373 kW. 

These engines have been certified to 

meet standards adopted by California 

ARB that are equivalent to the proposed 

standards. However, other small 

businesses producing SD/I engines have 

stated that they are not as far along in 

their catalyst development efforts. These 

manufacturers support the concept of 

receiving additional time for 


sroberts on PROD1PC70 with PROPOSALS
28126 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

compliance, beyond the implementation 

date for large manufacturers. 

High-performance SD/I engine 

manufacturers are typically smaller 

businesses than other SD/I engine 

manufacturers. The majority of highperformance engine manufacturers 

produce fewer than 100 engines per year 

for sale in the United States, and some 

produce only a few engines per year. 

Due to these very low sales volumes, 

additional lead time may be useful to 

the manufacturers to help spread out the 

compliance efforts and costs. 

As recommended in the SBAR Panel 

report, EPA is proposing an 

implementation date of 2011 for SD/I 

engines below 373 kW produced by 

small business marine engine 

manufacturers and a date of 2013 for 

small business manufacturers of highperformance (at or above 373 kW) 

marine engines (see § 1045.145). As 

discussed earlier, we have requested 

comment on alternative non-catalyst 

based standard of 22 g/kW-hr for highperformance SD/I marine engines. In the 

case of an alternative non-catalyst based 

standard, less lead time may be 

necessary. EPA requests comments on 

the proposed additional lead time in the 

implementation of the proposed SD/I 

exhaust emission standards for small 

businesses. 

(b) Exhaust Emission ABT 

As discussed above, we are proposing 

an averaging, banking, and trading 

(ABT) credit program for exhaust 

emissions from SD/I marine engines (see 

part 1045, subpart H). Small businesses 

expressed some concern that ABT could 

give a competitive advantage to large 

businesses. Specifically, there was an 

equity concern that if credits generated 

by SD/I engines below 373 kW could be 

used for high-performance SD/I engines, 

that one large manufacturer could use 

these credits to meet the highperformance SD/I engine standards 

without making any changes to their 

engines. EPA requests comment on the 

desirability of credit trading between 

high-performance and other SD/I marine 

engines and the impact it could have on 

small businesses. 

(c) Early Credit Generation for ABT 

The SBAR Panel recommended an 

early banking program and expressed 

belief that bonus credits will provide 

greater incentive for more small 

business engine manufacturers to 

introduce advanced technology earlier 

across the nation than would otherwise 

occur. As discussed above, we are 

proposing an early banking program in 

which bonus credits could be earned for 

certifying early (see § 1045.145). This 

program, combined with the additional 

lead time for small businesses, would 

give small-volume SD/I engine 

manufacturers ample opportunity to 

bank emission credits prior to the 

proposed implementation date of the 

standards. 

(d) Assigned Emission Rates for HighPerformance SD/I Engines 

Small businesses commented that 

certification may be too costly to 

amortize effectively over the small sales 

volumes for high-performance SD/I 

engines. One significant part of 

certification costs is engine testing. This 

includes testing for emissions over the 

specified duty cycle, deterioration 

testing, and not to exceed (NTE) zone 

testing. Even in the case where an 

engine manufacturer is using emission 

credits to comply with the standard, the 

manufacturer would still need to test 

engines to calculate how many emission 

credits are needed. One way of 

minimizing this testing burden would 

be to allow manufacturers to use 

assigned baseline emission rates for 

certification based on previously 

generated emission data. As discussed 

earlier in this preamble, we are 

proposing assigned baseline HC+NOX

and CO emission rates for all highperformance SD/I engines. These 

assigned emission rates are based on test 

data presented in Chapter 4 of the Draft 

RIA. 

(e) Alternative Standards for HighPerformance SD/I Engines 

Small businesses expressed concern 

that catalysts have not been 

demonstrated on high-performance 

engines and that they may not be 

practicable for this application. In 

addition, the concern was expressed 

that emission credits may not be 

available at a reasonable price. As 

discussed earlier, we are requesting 

comment on the need for and level of 

alternative standards for highperformance marine engines. 

The proposed NTE standards 

discussed above would likely require 

additional certification and 

development testing. The SBAR Panel 

recommended that NTE standards not 

apply to any high-performance SD/I 

engines, as it would minimize the costs 

of compliance testing for small 

businesses. For these reasons, we are 

not proposing to apply NTE standards to 

high-performance SD/I engines (See 

§ 1045.105). 

(f) Broad Engine Families for HighPerformance SD/I Engines 

Testing burden could be reduced by 

using broader definitions of engine 

families. Typically in EPA engine and 

equipment programs, manufacturers are 

able to group their engine lines into 

engine families for certification to the 

standards. Engines in a given family 

must have many similar characteristics 

including the combustion cycle, cooling 

system, fuel system, air aspiration, fuel 

type, aftertreatment design, number of 

cylinders and cylinder bore sizes. A 

manufacturer would then perform 

emission tests only on the engine in that 

family that would be most likely to 

exceed an emission standard. We are 

proposing to allow small businesses to 

group all of their high performance 

SD/I engines into a single engine family 

for certification, subject to good 

engineering judgment (see § 1045.230). 

(g) Simplified Test Procedures for HighPerformance SD/I Engines 

Existing testing requirements include 

detailed specifications for the 

calibration and maintenance of testing 

equipment and tolerances for 

performing the actual tests. For 

laboratory equipment and testing, these 

specifications and tolerances are 

intended to achieve the most repeatable 

results feasible given testing hardware 

capabilities. For in-use testing, EPA 

allows for different equipment than is 

specified for the laboratory and with 

arguably less restrictive specifications 

and tolerances. The purpose of separate 

requirements for in-use testing is to 

account for the variability inherent in 

testing outside of the laboratory. These 

less restrictive specifications allow for 

lower cost emission measurement 

devices, such as portable emission 

measurement units. For high 

performance SD/I engines, it may be 

difficult to hold the engine at idle or 

high power within the tolerances 

currently specified by EPA in the 

laboratory test procedure. Therefore, we 

are proposing less restrictive 

specifications and tolerances, for testing 

high performance SD/I engines, which 

would allow the use of portable 

emission measurement equipment (see 

§ 1065.901(b)). This would facilitate less 

expensive testing for these small 

businesses without having a negative 

effect on the environment. 

(h) Reduced Testing Requirements 

We are proposing that small-volume 

engine manufacturers may rely on an 

assigned deterioration factor to 

demonstrate compliance with the 

standards for the purposes of 

certification rather than doing service 

accumulation and additional testing to 

measure deteriorated emission levels at 

the end of the regulatory useful life (see 

§ 1045.240). EPA is not proposing actual 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28127 

levels for the assigned deterioration 

factors with this proposal. EPA intends 

to analyze available emission 

deterioration information to determine 

appropriate deterioration factors for 

SD/I engines. The data will likely 

include durability information from 

engines certified to California ARB’s 

standards and may also include engines 

certified early to EPA’s standards. Prior 

to the implementation date for the SD/ 

I standards, EPA will provide guidance 

to engine manufacturers specifying the 

levels of the assigned deterioration 

factors for small-volume engine 

manufacturers. 

We are also proposing that smallvolume engine manufacturers would be 

exempt from the production-line testing 

requirements (see § 1045.301). While we 

are proposing to exempt small-volume 

engine manufacturers from production 

line testing, we believe requiring limited 

production-line testing could be 

beneficial to implement the ongoing 

obligation to ensure that production 

engines are complying with the 

standards. Therefore, we request 

comment on the alternative of applying 

limited production-line testing to smallvolume engine manufacturers with a 

requirement to test one production 

engine per year. 

(i) Hardship Provisions 

We are proposing two types of 

hardship provisions for SD/I engine 

manufacturers consistent with the Panel 

recommendations. The first type of 

hardship is an unusual circumstances 

hardship, which would be available to 

all businesses regardless of size. The 

second type of hardship is an economic 

hardship provision, which would be 

available to small businesses only. 

Sections VIII.C.8 and VIII.C.9 provide a 

description of the proposed hardship 

provisions that would apply to SD/I 

engine manufacturers. 

Because boat builders in many cases 

will depend on engine manufacturers to 

supply certified engines in time to 

produce complying boats, we are also 

proposing a hardship provision for all 

boat builders, regardless of size, that 

would allow the builder to request more 

time if they are unable to obtain a 

certified engine and they are not at fault 

and would face serious economic 

hardship without an extension (see 

§ 1068.255). Section VIII.C.10 provides a 

description of the proposed hardship 

provisions that would apply to boat 

builders. 

G. Technological Feasibility 

(1) Level of Standards 

Over the past few years, 

developmental programs have 

demonstrated the capabilities of 

achieving significant reductions in 

exhaust emissions from SD/I engines. 

California ARB has acted on this 

information to set an HC+NOX emission 

standard of 5 g/kW-hr for SD/I engines, 

starting in 2008. Chapter 4 of the Draft 

RIA presents data from several SD/I 

engines with catalysts packaged within 

water-cooled exhaust manifolds. Four of 

these engines were operated with 

catalysts in vessels for 480 hours. The 

remaining engines were tested with 

catalysts that had been subjected to a 

rapid-aging cycle in the laboratory. Data 

from these catalyst-equipped engines 

generally show emission levels below 

the proposed standards. 

(2) Implementation Dates 

We anticipate that manufacturers will 

use the same catalyst designs to meet 

the proposed standards that they will 

use to meet the California ARB 

standards for SD/I engines in 2008. We 

believe a requirement to extend the 

California standards nationwide after a 

one-year delay allows manufacturers 

adequate time to incorporate catalysts 

across their product lines. Once the 

technology is developed for use in 

California, it would be available for use 

nationwide. In fact, one company 

currently certified to the California 

standards is already offering catalystequipped SD/I engines nationwide. As 

discussed above, we request comment 

on the effect that anticipated product 

changes for specific General Motors 

engine blocks may have on the proposed 

implementation dates. 

(3) Technological Approaches 

Engine manufacturers can adapt 

readily available technologies to control 

emissions from SD/I engines. 

Electronically controlled fuel injection 

gives manufacturers more precise 

control of the air/fuel ratio in each 

cylinder, thereby giving them greater 

flexibility in how they calibrate their 

engines. With the addition of an oxygen 

sensor, electronic controls give 

manufacturers the ability to use closedloop control, which is especially 

valuable when using a catalyst. In 

addition, manufacturers can achieve 

HC+NOX reductions through the use of 

exhaust gas recirculation. However, the 

most effective technology for controlling 

emissions is a three-way catalyst in the 

exhaust stream. 

In SD/I engines, the exhaust 

manifolds are water-jacketed and the 

water mixes with the exhaust stream 

before exiting the vessel. Manufacturers 

add a water jacket to the exhaust 

manifold to meet temperature-safety 

protocol. They route this cooling water 

into the exhaust to protect the exhaust 

couplings and to reduce engine noise. 

Catalysts must therefore be placed 

upstream of the point where the exhaust 

and water mix—this ensures the 

effectiveness and durability of the 

catalyst. Because the catalyst must be 

small enough to fit in the exhaust 

manifold, potential emission reductions 

are not likely to exceed 90 percent, as 

is common in land-based applications. 

However, as discussed in Chapter 4 of 

the Draft RIA, demonstration programs 

have shown that emissions may be 

reduced by 70 to 80 percent for 

HC+NOX and 30 to 50 percent for CO 

over the proposed test cycle. Larger 

reductions, especially for CO, have been 

achieved at lower-speed operation. 

There have been concerns that aspects 

of the marine environment could result 

in unique durability problems for 

catalysts. The primary aspects that 

could affect catalyst durability are 

sustained operation at high load, 

saltwater effects on catalyst efficiency, 

and thermal shock from cold water 

coming into contact with a hot catalyst. 

Modern catalysts perform well at 

temperatures up to 1100° C, which is 

much higher than would be seen in a 

marine exhaust manifold. These 

catalysts have also been shown to 

withstand the thermal shock of being 

immersed in water. More detail on 

catalyst durability is presented in the 

Draft RIA. In addition, use of catalysts 

in automotive, motorcycle, and 

handheld equipment has shown that 

catalysts can be packaged to withstand 

vibration in the exhaust manifold. 

Manufacturers already strive to design 

their exhaust systems to prevent water 

from reaching the exhaust ports. If too 

much water reaches the exhaust ports, 

significant durability problems would 

result from corrosion or hydraulic lock. 

As discussed in the Draft RIA, industry 

and government worked on a number of 

cooperative test programs in which 

several SD/I engines were equipped 

with catalysts and installed in vessels to 

prove out the technology. Early in the 

development work, a study was 

performed on an SD/I engine operating 

in a boat to see if water was entering the 

part of the manifold where catalysts 

would be installed. Although some 

water was collected in the exhaust 

manifold, it was found that this water 

came from water vapor that condensed 

out of the combustion products. This 

was easily corrected using a thermostat 


sroberts on PROD1PC70 with PROPOSALS
28128 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

to prevent overcooling from the water 

jacket. 

Four SD/I engines equipped with 

catalysts were operated in vessels for 

480 hours on fresh water. This time 

period was intended to represent the 

full expected operating life of a typical 

SD/I engine. No significant deterioration 

was observed on any of these catalysts, 

nor was there any evidence of water 

reaching the catalysts. In addition, the 

catalysts were packaged such that the 

exhaust system met industry standards 

for maximum surface temperatures. 

Testing has been performed on one 

engine in a vessel on both fresh water 

and saltwater over a test protocol 

designed by industry to simulate the 

worst-case operation for water 

reversion. No evidence was found of 

water reaching the catalysts. After the 

testing, the engine had emission rates 

below the proposed HC+NOX standard. 

We later engaged in a test program to 

evaluate three additional engines with 

catalysts in vessels operating on 

saltwater for extended periods. Early in 

the program, two of the three manifolds 

experienced corrosion in the salt-water 

environment resulting in water leaks 

and damage to the catalyst. These 

manifolds were rebuilt with guidance 

from experts in the marine industry and 

additional hours have been accumulated 

on the boats. Although the accumulated 

hours are well below the 480 hours 

performed on fresh water, the operation 

completed has shown no visible 

evidence of water reversion or damage 

to the catalysts. 

One SD/I engine manufacturer began 

selling engines equipped with catalysts 

in Summer 2006. They have certified 

their engines to the California ARB 

standards, and are selling their catalystequipped engines nationwide. This 

manufacturer indicated that they have 

successfully completed durability 

testing, including extended in-use 

testing on saltwater. Other 

manufacturers have indicated that they 

will have catalyst-equipped SD/I 

engines for sale in California by the end 

of this year. 

(4) Regulatory Alternatives 

In developing the proposed emission 

standards, we considered both what was 

achievable without catalysts and what 

could be achieved with larger, more 

efficient catalysts than those used in our 

test programs. Chapter 4 of the Draft RIA 

presents data on SD/I engines equipped 

with exhaust gas recirculation (EGR). 

HC+NOX emission levels below 10 g/ 

kW-hr were achieved for each of the 

engines. CO emissions ranged from 25 

to 185 g/kW-hr. We believe EGR would 

be a technologically feasible and costeffective approach to reducing 

emissions from SD/I marine engines. 

However, we believe greater reductions 

could be achieved through the use of 

catalysts. We considered basing an 

interim standard on EGR, but were 

concerned that this would divert 

manufacturers’ resources away from 

catalyst development and could have 

the effect of delaying emission 

reductions from this sector. 

Several of the marine engines with 

catalysts that were tested as part of the 

development of the proposed standards 

had HC+NOX emission rates in the 3–4 

g/kW-hr range, even with consideration 

of expected in-use emissions 

deterioration associated with catalyst 

aging. However, we believe a standard 

of 5 g/kW-hr is still appropriate given 

the potential variability in in-use 

performance and in test data. The test 

programs described in Chapter 4 of the 

Draft RIA did not investigate larger 

catalysts for SD/I applications. The goal 

of the testing was to demonstrate 

catalysts that would work within the 

packaging constraints associated with 

water jacketing the exhaust and fitting 

the engines into engine compartments 

on boats. However, we did perform 

testing on engines equipped with both 

catalysts and EGR. These engines 

showed emission results in the 2–3 g/ 

kW-hr range. We expect that these same 

reductions could be achieved more 

simply through the use of larger 

catalysts or catalysts with higher 

precious metal loading. Past experience 

indicates that most manufacturers will 

strive to achieve emission reductions 

well below the proposed standards to 

give them certainty that they will pass 

the standards in-use, especially as 

catalysts on SD/I engines are a new 

technology. Therefore, we do not 

believe it is necessary at this time to set 

a lower standard for these engines. 

(5) Our Conclusions 

We believe the proposed 2009 exhaust 

emission standards for SD/I engines 

represent the greatest degree of emission 

reduction feasible in this time frame. 

Manufacturers could meet the proposed 

standards through the use of three-way 

catalysts packaged in the exhaust 

systems upstream of where the water 

and exhaust mix. One manufacture is 

already selling engines with this 

technology and by 2009 many other 

manufacturers will have experience in 

producing engines with catalysts for 

sale in California. 

As discussed in Section X, we do not 

believe the proposed standards would 

have negative effects on energy, noise, 

or safety and may lead to some positive 

effects. 

IV. Outboard and Personal Watercraft 

Engines 

A. Overview 

This section applies to spark-ignition 

outboard and personal watercraft (OB/ 

PWC) marine engines and vessels. OB/ 

PWC engines are currently required to 

meet the HC+NOX exhaust emissions 

and other related requirements under 40 

CFR part 91. As a result of these 

standards, manufacturers have spent the 

last several years developing new 

technologies to replace traditional, 

carbureted, two-stroke engine designs. 

Many of these technologies are capable 

of emission levels well below the 

current standards. We are proposing 

new HC+NOX and CO exhaust emission 

standards for OB/PWC marine engines. 

For outboard and personal watercraft 

engines, the current emission standards 

regulate only HC+NOX emissions. As 

described in Section II, we are 

proposing in this notice to make the 

finding under Clean Air Act section 

213(a)(3) that Marine SI engines cause 

or contribute to CO nonattainment in 

two or more areas of the United States. 

We believe manufacturers can use 

readily available technological 

approaches to design their engines to 

meet the proposed standards. In fact, as 

discussed in Chapter 4 of the Draft RIA, 

manufacturers are already producing 

several models of four-stroke engines 

and direction-injection two-stroke 

engines that meet the proposed 

standards. The most important 

compliance step for the proposed 

standards will be to retire high-emitting 

designs that are still available and 

replace them with these cleaner engines. 

We are not proposing standards based 

on the use of catalytic converters in OB/ 

PWC engines. While this may be an 

attractive technology in the future, we 

do not believe there has been sufficient 

development work on the application of 

catalysts to OB/PWC engines to use as 

a basis for standards at this time. 

Note that we are proposing to migrate 

the regulatory requirements for marine 

spark-ignition engines from 40 CFR part 

91 to 40 CFR part 1045. This gives us 

the opportunity to update the details of 

our certification and compliance 

program to be consistent with the 

comparable provisions that apply to 

other engine categories and describe 

regulatory requirements in plain 

language. Most of the change in 

regulatory text provides improved 

clarity without substantially changing 

procedures or compliance obligations. 

Where there is a change that warrants 

further attention, we describe the need 

for the change below. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28129 

B. Engines Covered by This Rule 

(1) Definition of Outboard and Personal 

Watercraft Engines and Vessels 

The proposed standards are intended 

to apply to outboard marine engines and 

engines used to propel personal 

watercraft. We are proposing to change 

the existing definitions of outboard and 

personal watercraft to reflect this intent. 

The existing definitions of outboard 

engine and personal watercraft marine 

engine are presented below: 

• Outboard engine is a Marine SI 

engine that, when properly mounted on 

a marine vessel in the position to 

operate, houses the engine and drive 

unit external to the hull of the marine 

vessel. 

• Personal watercraft engine (PWC) is 

a Marine SI engine that does not meet 

the definition of outboard engine, 

inboard engine, or sterndrive engine, 

except that the Administrator in his or 

her discretion may classify a PWC as an 

inboard or sterndrive engine if it is 

comparable in technology and 

emissions to an inboard or sterndrive 

engine. 

With the proposed implementation of 

catalyst-based standards for sterndrive 

and inboard marine engines, we believe 

the above definitions could be 

problematic. Certain applications using 

SD/I engines and able to apply catalyst 

control would not be categorized as 

SD/I under the existing definitions in at 

least two cases. First, an airboat engine, 

which is often mounted well above the 

hull of the engine and used to drive an 

aircraft-like propeller could be 

misconstrued as an outboard engine. 

However, like traditional sterndrive and 

inboard engines, airboat engines are 

typically derived from automotive-based 

engines without substantial 

modifications for marine application. 

Airboat engines can use the same 

technologies that are available to 

sterndrive and inboard engines, so we 

believe they should be subject to the 

same standards. To address the 

concerns about classifying airboats, we 

are proposing to change the outboard 

definition to specify that the engine and 

drive unit be a single, self-contained 

unit that is designed to be lifted out of 

the water. This clarifies that air boats 

are not outboard engines; air boats do 

not have engines and drive units that 

are designed to be lifted out of the 

water. We are proposing the following 

definition: 

• Outboard engine means an 

assembly of a spark-ignition engine and 

drive unit used to propel a marine 

vessel from a properly mounted position 

external to the hull of the marine vessel. 

An outboard drive unit is partially 

submerged during operation and can be 

tilted out of the water when not in use. 

Second, engines used on jet boats 

(with an open bay for passengers) have 

size, power, and usage characteristics 

that are very similar to sterndrive and 

inboard applications, but these engines 

may be the same as OB/PWC engines, 

rather than the marinized automotive 

engines traditionally used on sterndrive 

vessels. We believe classifying such 

engines as personal watercraft engines is 

inappropriate because it would subject 

the jet boats to less stringent emission 

standards than other boats with similar 

size and power characteristics. This 

different approach could lead to 

increased use of high-emitting engines 

in these vessels. Under the current 

regulations, engines powering jet boats 

could be treated as SD/I engines at the 

discretion of the Agency, because they 

are comparable in technology to 

conventional SD/I engines. We are 

proposing definitions that would 

explicitly exclude jet boats and their 

engines from being treated as personal 

watercraft engines or vessels. Instead, 

we are proposing to classify jet boat 

engines as SD/I. 

The proposed definitions conform to 

the existing definition of personal 

watercraft established by the 

International Organization for 

Standardization (ISO 13590). This ISO 

standard excludes open-bay vessels and 

specifies a maximum vessel length of 4 

meters. The ISO standard therefore 

excludes personal watercraft-like 

vessels 4 meters or greater and jet boats. 

Thus, engines powering such vessels 

would be classified as sterndrive/ 

inboard engines. We believe this 

definition effectively serves to 

differentiate vessels in a way that 

groups propulsion engines into 

categories that are appropriate for 

meeting different emission standards. 

This approach is shown below with the 

corresponding proposed definition of 

personal watercraft engine. We are 

proposing one change to the ISO 

definition for domestic regulatory 

purposes; we propose to remove the 

word ‘‘inboard’’ to prevent confusion 

between PWC and inboard engines and 

state specifically that a vessel powered 

by an outboard marine engine is not a 

PWC. We are proposing the following 

definition: 

• Personal watercraft means a vessel 

less than 4.0 meters (13 feet) in length 

that uses an installed internal 

combustion engine powering a water jet 

pump as its primary source of 

propulsion and is designed with no 

open load carrying area that would 

retain water. The vessel is designed to 

be operated by a person or persons 

positioned on, rather than within, the 

confines of the hull. A vessel using an 

outboard engine as its primary source of 

propulsion is not a personal watercraft. 

• Personal watercraft engine means a 

spark-ignition engine used to propel a 

personal watercraft. 

Section III.C.2 describes special 

provisions that would allow 

manufacturers extra flexibility with 

emission credits if they want to 

continue using outboard or personal 

watercraft engines in jet boats. These 

engines would need to meet the 

standards for sterndrive/inboard 

engines, but we believe it is appropriate 

for them to make this demonstration 

using emission credits generated by 

other outboard and personal watercraft 

engines because these vessels are 

currently using these engine types. We 

request comment on this approach to 

defining personal watercraft, especially 

as it relates to vessels 4 meters or longer 

and jet boats. 

(2) Exclusions and Exemptions 

We are proposing to maintain the 

existing exemptions for OB/PWC 

engines. These include the testing 

exemption, the manufacturer-owned 

exemption, the display exemption, and 

the national-security exemption. If the 

conditions for an exemption are met, the 

engine is not subject to the exhaust 

emission standards. These exemptions 

are described in more detail under 

Section VIII. 

The Clean Air Act provides for 

different treatment of engines used 

solely for competition. In the initial 

rulemaking to set standards for OB/PWC 

engines, we adopted the conventional 

definitions that excluded engines from 

the regulations if they had features that 

would be difficult to remove and that 

would make it unsafe, impractical, or 

unlikely to be used for noncompetitive 

purposes. We have taken the approach 

in other programs of more carefully 

differentiating competition and 

noncompetition models, and are 

proposing these kinds of changes in this 

rule. The proposed changes to the 

existing provisions relating to 

competition engines would apply 

equally to all types of Marine SI 

engines. See Section III and § 1045.620 

of the regulations for a full discussion 

of the proposed approach. 

We are proposing a new exemption to 

address individuals who manufacture 

recreational marine vessels for personal 

use (see § 1045.630). Under the 

proposed exemption, these vessels and 

their engines could be exempt from 

standards, subject to certain limitations. 

For example, an individual may 

produce one such vessel over a ten-year 


sroberts on PROD1PC70 with PROPOSALS
28130 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

period, the vessel may not be used for 

commercial purposes, and any exempt 

engines may not be sold for at least five 

years. The vessel must generally be built 

from unassembled components, rather 

than simply completing assembly of a 

vessel that is otherwise similar to one 

that will be certified to meet emission 

standards. This proposal addresses the 

concern that hobbyists who make their 

own vessels would otherwise be 

manufacturers subject to the full set of 

emission standards by introducing these 

vessels into commerce. We expect this 

exemption to involve a very small 

number of vessels. 

In the rulemaking for recreational 

vehicles, we chose not to apply 

standards to hobby products by 

exempting all reduced-scale models of 

vehicles that are not capable of 

transporting a person (67 FR 68242, 

November 8, 2002). We are proposing to 

extend that same provision to OB/PWC 

marine engines (see § 1045.5). 

C. Proposed Exhaust Emission 

Standards 

We are proposing more stringent 

exhaust emission standards for new OB/ 

PWC marine engines. These proposed 

standards can be met through the 

expanded reliance on four-stroke 

engines and two-stroke direct-injection 

engines. This section describes the 

proposed requirements for OB/PWC 

engines for controlling exhaust 

emissions. See Section V for a 

description of the proposed 

requirements related to evaporative 

emissions. 

(1) Standards and Dates 

We are proposing new HC+NOX

standards for OB/PWC engines starting 

in model year 2009 that would achieve 

more than a 60 percent reduction from 

the existing 2006 standards. We are also 

proposing new CO emission standards. 

These proposed standards would result 

in meaningful CO reductions from many 

engines and prevent CO from increasing 

from engines that already use 

technologies with lower CO emissions. 

The proposed emission standards are 

largely based on certification data from 

cleaner-burning Marine SI engines, such 

as four-stroke engines and two-stroke 

direct-injection engines. Section IV.F 

discusses the technological feasibility of 

these standards in more detail. Table 

IV–1 presents the proposed exhaust 

emission standards for OB/PWC. We are 

also proposing to apply not-to-exceed 

emission standards over a range of 

engine operating conditions, as 

described in Section IV.C.2. (See 

§ 1045.103.) 

TABLE IV–1—PROPOSED OB/PWC EXHAUST EMISSION STANDARDS [G/KW-HR] FOR 2009 MODEL YEAR

Pollutant Pa ≤ 40 kW Pa > 40 kW 

HC+NOX ...................................................................................................................................................... 28–0.3 × P 16 

CO ................................................................................................................................................................ 500–5.0 × P 300 

aP = maximum engine power in kilowatts (kW). 

The proposed emission standards for 

HC+NOX are similar in stringency to the 

2008 model year standards adopted in 

California, and we expect that the same 

technology anticipated to be used in 

California can be used to meet these 

proposed standards. However, we are 

proposing to simplify the form of the 

standards. The existing EPA 2006 and 

California ARB 2008 requirements use a 

functional relationship to set the 

emission standard for each engine 

family depending on the power rating—

the numerical value of the standard 

increases with decreasing power ratings, 

especially for the smallest engines. 

However, as described in Chapter 4 of 

the Draft RIA, certification data show 

that brake-specific emission rates (in g/ 

kW-hr) are relatively constant for 

engines with maximum engine power 

above 40 kW. We are therefore 

proposing a single standard for engines 

with maximum engine power above 40 

kW. For smaller engines, the 

relationship between brake-specific 

emissions and maximum engine power 

is pronounced. We are proposing a 

simple linear function for the standards 

for these engines, as shown in Table IV–

1. While this approach differs slightly 

from the California ARB standards, we 

believe it provides a good match for 

establishing a comparable level of 

stringency while simplifying the form of 

the regulatory standard. 

The proposed implementation date 

gives an additional year beyond the 

implementation date of the California 

standards of similar stringency. 

Manufacturers generally sell their 

lower-emission engines, which are 

already meeting the 2008 California 

standards, nationwide. However, the 

additional year would give 

manufacturers time to address any 

models that may not meet the upcoming 

California standards or are not generally 

sold in California. We request comment 

on additional regulatory flexibility that 

manufacturers may need to transition to 

the proposed standards. For instance, a 

modest phase-in of the standards may 

be useful to manufacturers to complete 

an orderly turnover of high-emitting 

engines. This phase-in could take the 

form of giving an extra year for 

compliance with the proposed 

standards for a small percentage of 

engines (e.g., 10 percent of projected 

sales) or phasing-in the level of the 

standard (e.g., 20–25 g/kW-hr HC+NOX). 

Any comments on proposed transitional 

flexibility should give details that fully 

describe the recommended program. 

The proposed standards include the 

same general provisions that apply 

today. For example, engines must 

control crankcase emissions. The 

regulations also require compliance over 

the full range of adjustable parameters 

and prohibit the use of defeat devices. 

(See § 1045.115.) 

(2) Not-to-Exceed Standards 

Section III.D.2 describes NTE 

standards for sterndrive and inboard 

engines. We are proposing to apply the 

same NTE testing provisions to OB/PWC 

engines, including the same NTE zone 

and subzones and ambient conditions 

(see § 1045.515). However, data 

presented in Chapter 4 of the Draft RIA 

suggest that different emission limits 

would be appropriate for OB/PWC 

engines. For instance, we are proposing 

higher limits at full power for SD/I 

engines equipped with catalysts because 

the engines must operate rich at this 

mode to protect catalysts and exhaust 

valves. Because we are not anticipating 

the use of catalysts on OB/PWC to meet 

the exhaust emission standards, we 

believe it is not necessary to adopt such 

high limits for OB/PWC engines. 

The Draft RIA describes the available 

emission data that allow us to specify 

appropriate modal caps for OB/PWC 

engines based on four-stroke engine 

technology. The available data for 

direct-injection two-stroke engines 

showed two different distinct patterns 

in modal emission rates. We are 

therefore proposing two alternative sets 

of NTE limits—manufacturers could use 

either set of NTE limits for their OB/ 

PWC engines. To offset the relaxed 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28131 

78 ‘‘Marine NTE Zones,’’ Presentation to EPA by 

BRP on October 26, 2006, Docket EPA–HQ–OAR–

2004–0008–0508. 

limits for certain subzones, we are 

proposing more stringent limits for 

other subzones for these alternative 

approaches. Table IV–2 presents the 

proposed sets of NTE limits for the 

subzones described in Section III.D.2. 

We request comment on the proposed 

NTE limits for OB/PWC engines. 

TABLE IV–2—PROPOSED NTE LIMITS BY SUBZONE FOR OB/PWC ENGINES

Approach Pollutant Subzone 4 Subzone 3 Subzone 2 Subzone 1 

Primary ............................................................ HC+NOX ............................ 1.6 1.2 1.2 1.2 

CO ..................................... 1.5 1.5 1.5 1.5 

Alternative 1 ..................................................... HC+NOX ............................ 2.0 0.8 0.8 2.0 

CO ..................................... 1.0 1.0 1.5 3.0 

Alternative 2 ..................................................... HC+NOX ............................ 3.0 1.0 1.0 1.0 

CO ..................................... 2.0 1.0 1.0 1.5 

Marine engine manufacturers 

indicated that they are concerned that 

the differences in engine designs, 

especially for direct-injection two-stroke 

engines, may result in emission 

variation that would make it difficult to 

meet a fixed set of NTE limits for all 

engines. To address this variability, they 

have suggested two alternative 

approaches to setting NTE limits for 

marine engines. The first approach 

would be to base the NTE limits on the 

modal test results from the certification 

test rather than fixed values that would 

apply to all engines. NTE limits would 

then be linearly interpolated between 

the modes as a function of speed and 

load. For example, if the modal results 

were 2.0 g/kW-hr at Mode 3 and 4.0 g/ 

kW-hr at Mode 4, the interpolated value 

half way between these modal test 

points would be 3 g/kW-hr. A multiplier 

would then be applied to this 

interpolated value to create the NTE 

limit. This multiplier would be 

intended to account for testing and 

production variability. The multiplier 

would not likely need to be as large as 

the proposed general multipliers for the 

subzones presented above because it 

would be applied to a surface generated 

from each manufacturer’s actual modal 

data. Because the NTE cap would be 

calculated from the individual test 

modes in the steady-state test, it may be 

necessary for the manufacturers to 

assign family emission limits for each of 

the test modes in the proposed NTE 

zone. 

The second conceptual approach 

would be to use a weighted average 

approach to the NTE limit rather than to 

have individual NTE limits for each 

subzone. Under this approach, an 

emission measurement would be made 

in each of the subzones plus idle. These 

measurements could be made at any 

operation point within each subzone. 

The measured emissions would then be 

combined using the weighting factors 

for the modal test. This weighted 

average emission level would be 

required to be below the standard (or 

family emission limit) times a multiplier 

(under this approach, only a single 

multiplier would be needed). The 

purpose of the multiplier would be to 

allow for some variability within each 

subzone. Because the weighted average 

emissions from the subzones would 

have the tendency of approaching the 

steady-state test value, this multiplier 

would not be expected to be much 

higher than 1.0. However, one drawback 

to this approach is that there is no 

specific cap for each mode and a 

weighted average approach may not be 

as effective in capping modal emissions 

as would be specific limits for each 

subzone. More detail on this concept is 

available in the docket.78

We request comment on the two 

alternative NTE limit approaches 

described above. Specifically, 

commenters should provide detail on 

what advantages (and disadvantages) 

these alternatives may provide and what 

effect they may have on in-use 

emissions and the potential for 

improving the manufacturer in-use 

testing program. In addition, 

commenters should describe what 

emission limits or multipliers would be 

appropriate for the alternative 

approaches and provide test data 

supporting these conclusions. 

(3) Emission Credit Programs 

Engine manufacturers may use 

emission credits to meet OB/PWC 

standards under part 91. See Section 

VII.C.5 for a description of general 

provisions related to averaging, banking, 

and trading programs. 

We propose to adopt an ABT program 

for the new HC+NOX emission 

standards that is similar to the existing 

program (see part 1045, subpart H). 

Credits may be used interchangeably 

between outboard and personal 

watercraft engine families. Credits 

earned under the current program may 

also be used to comply with the new 

OB/PWC standards as described below. 

We are proposing an unlimited life for 

emission credits earned under the 

proposed new standards for OB/PWC 

engines. We consider these emission 

credits to be part of the overall program 

for complying with proposed standards. 

Given that we may consider further 

reductions beyond the proposed 

standards in the future, we believe it 

will be important to assess the ABT 

credit situation that exists at the time 

any future standards are considered. We 

would need to set such future emission 

standards based on the statutory 

direction that emission standards must 

represent the greatest degree of emission 

control achievable, considering cost, 

safety, lead time, and other factors. 

Emission credit balances will be part of 

the analysis for determining the 

appropriate level and timing of new 

standards. If we were to allow the use 

of existing emission credits for meeting 

future standards, we may, depending on 

the level of emission credit banks, need 

to adopt emission standards at more 

stringent levels or with an earlier start 

date than we would absent the 

continued or limited use of existing 

emission credits. Alternatively, we 

could adopt future standards without 

allowing the use existing credits. The 

proposal described in this notice 

describes a middle path in which we 

allow the use of existing credits to meet 

the proposed new standards, with 

provisions that limit the use of these 

credits based on a three-year credit life. 

We are requesting comment on one 

particular issue regarding credit life. As 

proposed, credits earned under the new 

exhaust ABT program would have an 

unlimited lifetime. This could result in 

a situation where credits generated by 

an engine sold in a model year are not 

used until many years later when the 

engines generating the credits have been 

scrapped and are no longer part of the 

fleet. EPA believes there may be value 

to limiting the use of credits to the 

period that the credit-generating engines 


sroberts on PROD1PC70 with PROPOSALS
28132 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

exist in the fleet. For this reason, EPA 

requests comment on limiting the 

lifetime of the credits generated under 

the proposed exhaust ABT program to 

five years or, alternatively, to the 

regulatory useful life of the engine. 

We are interested in using a common 

emission credit calculation 

methodology across our programs. 

Therefore, we are proposing to use the 

same emission credit equation for OB/ 

PWC engines that is common in many 

of our other programs. This equation 

results in a simpler calculation than is 

currently used for OB/PWC engines. 

The primary difference is that the 

regulatory useful life would be used in 

the credit calculation rather than a 

discounted useful life function based on 

engine type and power rating. In 

addition, the emission credits would be 

reported in units of kilograms rather 

than grams. We anticipate that this 

change in the credit calculation would 

directionally increase the relative value 

of emission credits generated under the 

existing ABT program. However, due to 

the proposed limit on credit life and the 

proposed FEL cap for OB/PWC engines, 

we do not believe that this increase in 

relative value will significantly hamper 

the introduction of clean engine 

technology. We request comment on the 

new credit calculation and on whether 

credits generated under the existing OB/ 

PWC standards should be adjusted to be 

more equivalent to credits generated 

under the proposed ABT program. 

We are proposing an averaging 

program for CO emissions. Under this 

program, manufacturers could generate 

credits with engine families that have 

FELs below the CO emission standard to 

be used for engine families in their 

product line in the same model year that 

are above the CO standard. However, we 

are proposing to disallow banking for 

CO emissions. We are concerned that a 

banking program could result in a large 

accumulation of credits based on a 

given company’s mix of engine 

technologies. If banking were allowed, 

the proposed CO standard would need 

to be substantially more stringent to 

reflect the capability for industry-wide 

average CO emission levels. We 

generally allow trading only with 

banked credits, so we are also proposing 

to disallow trading of CO emission 

credits. 

As with previous emission control 

programs, we are also proposing not to 

allow manufacturers to earn credits for 

one pollutant for an emission family 

that is using credits to meet the standard 

for another pollutant. In other words, an 

engine family that does not meet the CO 

standard would not be able to earn 

HC+NOX emission credits, or vice versa. 

In addition, as with the current 

standards, we are proposing that 

engines sold in California would not be 

included in this ABT program because 

they are already subject to California 

requirements. 

Under the existing standards, no cap 

is set on FELs for certifying engine 

families. This was intended to allow 

manufacturers to sell old-technology 

two-stroke engines by making up the 

emissions deficit with credits under the 

ABT program. For engines subject to the 

new emission standards, we are 

proposing FEL caps to prevent the sale 

of very high-emitting engines. For 

HC+NOX, the proposed FEL cap is based 

on the existing 2006 standards. For CO, 

the proposed FEL cap is 150 g/kW-hr 

above the proposed standard. We 

believe this will still allow a great deal 

of flexibility for manufacturers using 

credits, but will require manufacturers 

to stop producing engines that emit 

pollutants at essentially uncontrolled 

levels. 

Except as specified in Section III.C.2 

for jet boats, we are proposing to specify 

that OB/PWC engines and SD/I engines 

are in separate averaging sets. This 

means that credits earned by OB/PWC 

engines may be used only to offset 

higher emissions from other OB/PWC 

engines, and credits earned by SD/I 

engines may be used only to offset 

higher emissions from other SD/I 

engines. We are allowing jet boats to use 

OB/PWC credits because there are 

currently small sales of these engines 

currently using OB/PWC engines. Most 

of the engine manufacturers building 

SD/I engines do not also build OB/PWC 

engines. The exception to this is the 

largest manufacturer in both categories. 

We are concerned that allowing 

averaging, banking, and trading between 

OB/PWC engines and SD/I engines 

would not provide the greatest 

achievable reductions, because the level 

of the standard we are proposing is 

premised on the technology used in OB/ 

PWC engines, and is based on what is 

feasible for these engines. We did not 

set the OB/PWC level based on the 

reductions achievable between OB/PWC 

and SD/I, but instead based on what is 

achievable by OB/PWC itself. The 

proposed limitation on ABT credits is 

consistent with this approach to setting 

the level of the OB/PWC standards. We 

are also concerned that allowing trading 

between OB/PWC and SD/I could create 

a competitive disadvantage for the many 

small manufacturers of SD/I engines 

that do not also produce OB/PWC 

engines. In addition, we are proposing 

SD/I emission standards that would 

likely require the use of aftertreatment. 

We would not want to provide an 

incentive to use credits from the OB/ 

PWC marine sector to avoid the use of 

aftertreatment technologies in SD/I 

engines. 

We request comment on the structure 

of the proposed ABT program, including 

the new provisions related to CO 

emissions. For any commenters 

suggesting that we include banking or 

trading for CO emissions, we solicit 

further comment on what the 

appropriate CO standard should be to 

account for the greater regulatory 

flexibility and therefore greater degree 

of control achievable using emissions 

credits. We also request comment on the 

use and level of the proposed FEL caps 

and on the approach to defining 

averaging sets. 

(4) Durability Provisions 

We are proposing to keep the existing 

useful life periods from 40 CFR part 91. 

The specified useful life for outboard 

engines is 10 years or 350 hours of 

operation, whichever comes first. The 

useful life for personal watercraft 

engines is 5 years or 350 hours of 

operation, whichever comes first. (See 

§ 1045.103.) 

We are proposing to update the 

specified emissions warranty periods for 

outboard and personal watercraft 

engines to align with our other emission 

control programs (see § 1045.120). Most 

nonroad engines have emissions 

warranty periods that are half of the 

total useful life period. As a result, we 

are proposing a warranty period for 

outboard engines of five years or 175 

hours of operation, whichever comes 

first. The proposed warranty period for 

personal watercraft engines is 30 

months or 175 hours, whichever comes 

first. This contrasts somewhat with the 

currently specified warranty period of 

200 hours or two years (or three years 

for specified major emission control 

components). The proposed approach 

would slightly decrease the warranty 

period in terms of hours, but would 

somewhat increase the period in terms 

of calendar years (or months). We 

request comment on this revised 

approach to defining warranty periods. 

If the manufacturer offers a longer 

mechanical warranty for the engine or 

any of its components at no additional 

charge, we propose that the emissionrelated warranty for the respective 

engine or component must be extended 

by the same amount. The emissionrelated warranty includes components 

related to controlling exhaust, 

evaporative, and crankcase emissions 

from the engine. This approach to 

setting warranty requirements is 

consistent with provisions that apply in 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28133 

79See our previous rulemakings related to 40 CFR 

part 1065 for more information about the changes 

in test provisions (70 FR 40420, July 13, 2005 and 

67 FR 68242, November 8, 2002). 

most other programs for nonroad 

engines. 

We are proposing to keep the existing 

requirements related to demonstrating 

the durability of emission controls for 

purposes of certification (see § 1045.235, 

§ 1045.240, and § 1045.245). 

Manufacturers must run engines long 

enough to develop and justify full-life 

deterioration factors. This allows 

manufacturers to generate a 

deterioration factor that helps ensure 

that the engines will continue to control 

emissions over a lifetime of operation. 

The new requirement to generate 

deterioration factors for CO emissions is 

the same as that for HC+NOX emissions. 

For the HC+NOX standard, we propose 

to specify that manufacturers use a 

single deterioration factor for the sum of 

HC and NOX emissions. However, if 

manufacturers get our approval to 

establish a deterioration factor on an 

engine that is tested with service 

accumulation representing less than the 

full useful life for any reason, we would 

require separate deterioration factors for 

HC and NOX emissions. The advantage 

of a combined deterioration factor is 

that it can account for an improvement 

in emission levels with aging. However, 

for engines that have service 

accumulation representing less than the 

full useful life, we believe it is not 

appropriate to extrapolate measured 

values indicating that emission levels 

for a particular pollutant will decrease. 

Under the current regulations, 

emission-related maintenance is not 

allowed during service accumulation to 

establish deterioration factors. The only 

maintenance that may be done must be 

(1) Regularly scheduled, (2) unrelated to 

emissions, and (3) technologically 

necessary. This typically includes 

changing engine oil, oil filter, fuel filter, 

and air filter. In addition, we are 

proposing to specify that manufacturers 

may not schedule critical emissionrelated maintenance during the useful 

life period (see § 1045.125). This would 

prevent manufacturers from designing 

engines with emission controls that 

depend on scheduled maintenance that 

is not likely to occur with in-use 

engines. We request comment on all 

aspects of our provisions related to 

manufacturers’ prescribed maintenance. 

D. Changes to Existing OB/PWC Test 

Procedures 

We are proposing a number of minor 

changes to the test procedures for OB/ 

PWC to make them more consistent 

with the test procedures for other 

nonroad spark-ignition engines. These 

test provisions would apply to SD/I 

marine engines as well. 

(1) Duty Cycle 

A duty cycle is the set of modes 

(engine speed and load) over which an 

engine is operated during a test. For 

purposes of exhaust emission testing, 

we are proposing to keep the existing 

duty cycle specified for OB/PWC 

engines, with two adjustments (see 

§ 1045.505). First, we are proposing that 

manufacturers may choose to run the 

specified duty cycle as a ramped-modal 

cycle, as described in Section IX.B. 

Second, we are proposing to change the 

low-power test mode from a specified 

25 percent load condition to 25.3 

percent load, which would complete the 

intended alignment with the E4 duty 

cycle adopted by the International 

Organization for Standardization. 

We request comment on the 

appropriateness of changing part 91 to 

include the correction to the duty cycle 

described above. We request comment 

regarding whether a change in the 

specification for the current standards 

may cause some existing test data to be 

considered invalid. For example, testing 

from an earlier model year may have 

involved measurements that were 

slightly below 25 percent load, but 

within the specified tolerance for 

testing. These measurements may be 

used for carryover engine families 

today, but increasing the load point in 

the regulation could cause some 

measurements to be outside the 

tolerance once it shifts to a nominal 

value of 25.3 percent. 

(2) Maximum Test Speed 

The definition of maximum test 

speed, where speed is the angular 

velocity of an engine’s crankshaft 

(usually expressed in revolutions per 

minute, or rpm), is an important aspect 

of the duty cycles for testing. Engine 

manufacturers currently declare the 

rated speeds for their engines and then 

used the rated speed as the maximum 

speed for testing. However, we have 

established an objective procedure for 

measuring this engine parameter to have 

a clearer reference point for an engine’s 

maximum test speed. This is important 

to ensure that engines are tested at 

operating points that correspond with 

in-use operation. This also helps ensure 

that the NTE zone is appropriately 

matched to in-use operating conditions. 

We propose to define the maximum 

test speed for any engine to be the single 

point on an engine’s maximum-power 

versus speed curve that lies farthest 

away from the zero-power, zero-speed 

point on a normalized maximum-power 

versus speed plot. In other words, 

consider straight lines drawn between 

the origin (speed = 0, load = 0) and each 

point on an engine’s normalized 

maximum-power versus speed curve. 

Maximum test speed is defined at that 

point where the length of this line 

reaches its maximum value. This change 

would apply to testing of OB/PWC 

engines as well as SD/I engines. We 

request comment on the use and 

definition of maximum test speed. 

(3) 40 CFR Part 1065 

We are proposing to specify that OB/ 

PWC engines certified to the proposed 

exhaust emission standards use the test 

procedures in 40 CFR part 1065 instead 

of those in 40 CFR part 91.79 We are 

proposing that the new procedures 

would apply starting with the 

introduction of proposed exhaust 

standards, though we allow 

manufacturers to start using these new 

procedures earlier as an alternative 

procedure. The procedures in part 1065 

include updated provisions to account 

for newer measurement technologies 

and improved calculation and 

corrections procedures. Part 1065 also 

specifies more detailed provisions 

related to alternate procedures, 

including a requirement to conduct 

testing representative of in-use 

operation. In many cases, we allow 

carryover of emission test data from one 

year to another. After the 

implementation of the proposed 

standards, we are proposing to allow 

carryover of any test data generated 

prior to 2009 under the test procedures 

in 40 CFR part 91. 

(4) Altitude 

EPA emission standards generally 

apply at a wide range of altitudes, as 

reflected in the range of barometric 

pressures in the specified test 

procedures. For marine spark-ignition 

engines, it is clear that the large majority 

of operation is at sea level or at inland 

lakes that are not at high altitude. We 

are therefore proposing a specific range 

of barometric pressures from 94.0 to 

103.325 kPa, which corresponds to all 

altitudes up to about 2,000 feet (see 

§ 1045.501). Manufacturers are expected 

to design emission control systems that 

continue to function effectively at lower 

barometric pressures (i.e., higher 

altitudes), but we would not require that 

engines meet emission standards when 

tested at altitudes more than 2,000 feet 

above sea level. 

(5) Engine Break-in 

Testing new engines requires a period 

of engine operation to stabilize emission 


sroberts on PROD1PC70 with PROPOSALS
28134 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

levels. The regulations specify two 

separate figures for break-in periods. 

First, for certification, we establish a 

limit on how much an engine may 

operate and still be considered a ‘‘lowhour’’ engine. The results of testing with 

the low-hour engine are compared with 

a deteriorated value after some degree of 

service accumulation to establish a 

deterioration factor. For Large SI 

engines, we require that low-hour test 

engines have no more than 300 hours of 

engine operation. However, given the 

shorter useful life for marine engines, 

this would not make for a meaningful 

process for establishing deterioration 

factors, even if there is a degree of 

commonality between the two types of 

engines. We are proposing for all marine 

spark-ignition engines that low-hour 

engines generally have no more than 30 

hours of engine operation (see 

§ 1045.801). This allows some 

substantial time for break-in, 

stabilization, and running multiple 

tests, without approaching a significant 

fraction of the useful life. The current 

regulation in part 91 specifies that 

manufacturers perform the low-hour 

measurement after no more than 12 

hours of engine operation (see 

§ 91.408(a)(1)). The proposed approach, 

30 hours of engine operation, is 

consistent with what we have done for 

recreational vehicles and would give 

manufacturers more time to complete a 

valid low-hour test. 

For production-line testing there is 

also a concern about how long an engine 

should operate to reach a stabilized 

emission level. We are proposing to 

keep the provision in part 91 that allows 

for a presumed stabilization period of 12 

hours (see § 90.117(a)). We believe 12 

hours is sufficient to stabilize the 

emissions from the engine. 

We request comment on these 

specified values for stabilizing new 

engines for emission measurements. 

E. Additional Certification and 

Compliance Provisions 

(1) Production-Line Testing 

We are proposing to continue to 

require that manufacturers routinely test 

engines at the point of production to 

ensure that production variability does 

not affect the engine family’s 

compliance with emission standards. 

This is largely based on the existing test 

requirements, but includes a variety of 

changes. See Section VII.C.7 for a 

detailed description of these 

requirements. We may also require 

manufacturers to perform production 

line testing under the selective 

enforcement auditing provisions 

described in Section VIII.E. 

(2) In-Use Testing 

We are also proposing to continue the 

requirements related to the 

manufacturer-run in-use testing 

program. Under this program, 

manufacturers test field-aged engines to 

determine whether they continue to 

meet emission standards (see part 1045, 

subpart E). We are proposing to make a 

variety of changes and clarifications to 

the existing requirements, as described 

in the following sections. 

(a) Adjustments Related to Engine 

Selection 

Both EPA and manufacturers have 

gained insights from implementing the 

current program. Manufacturers have 

expressed a concern that engine families 

are selected rather late in the model 

year, which makes it harder to prepare 

a test fleet for fulfilling testing 

obligations. On the other hand, we have 

seen that manufacturers certify some of 

their engine families well into the 

model year. By making selections early 

in the model year, we would generally 

be foregoing the opportunity to select 

engine families for which manufacturers 

don’t apply for certification until after 

the selections occur. 

To address these competing interests, 

we are proposing an approach that 

allows for early selection of engine 

families, while preserving the potential 

to require testing for engines that are 

certified later in the model year. For 

applications we receive by December 31 

of a given calendar year for the 

following model year, we would expect 

to select engine families for testing by 

the end of February of the following 

year. If we have not made a complete 

selection of engine families by the end 

of February, manufacturers would have 

the option of making their own 

selections for in-use testing. The 

proposed regulations include criteria to 

serve as guidance for manufacturers to 

make appropriate selections. For 

example, we would expect 

manufacturers to most strongly consider 

those engine families with the highest 

projected sales volume and the smallest 

compliance margins. Manufacturers 

may also take into account past 

experience with engine families if they 

have already passed an in-use testing 

regimen and have not undergone 

significant design changes since that 

time. 

We propose to treat engine families 

differently for in-use testing if we 

receive the application after December 

31. This would apply, for example, if 

manufacturers send an application for a 

2009 engine family in February 2009. In 

these cases, we are proposing that all 

these engine families are automatically 

subject to in-use testing, without regard 

to the 25 percent limitation that would 

otherwise dictate our selections. This 

may appear to increase the potential test 

burden, but the clear majority of 

applications for certification are 

completed before the end of the 

calendar year for the following model 

year. This proposed provision would 

eliminate the manufacturers’ ability to 

game the testing system by delaying a 

family of potential concern until the 

next calendar year. We would expect to 

receive few new applications after the 

end of the calendar year. This would be 

consistent with the manufacturers’

interest in early family selections, 

without jeopardizing EPA’s interest in 

being able to select from a 

manufacturer’s full product lineup. 

We request comment on the approach 

to selecting engine families for in-use 

testing. 

(b) Crankcase Emissions 

Because the crankcase requirements 

are based on a design specification 

rather than emission measurements, the 

anticipated crankcase technologies are 

best evaluated simply by checking 

whether or not they continue to 

function as designed. As a result, we 

intend for an inspection of in-use 

engines to show whether these systems 

continue to function properly 

throughout the useful life, but are not 

proposing to require manufacturers to 

include crankcase measurements as part 

of the in-use testing program described 

in this section. This is consistent with 

the approach we have taken in other 

programs. 

(c) In-Use Emission Credits 

Clean Air Act section 213 requires 

engines to comply with emission 

standards throughout their regulatory 

useful lives, and section 207 requires a 

manufacturer to remedy in-use 

nonconformity when we determine that 

a substantial number of properly 

maintained and used engines fail to 

conform with the applicable emission 

standards (42 U.S.C. 7541). As described 

in the original rulemaking, 

manufacturers could use a calculation of 

emission credits generated under the inuse testing program to avoid a recall 

determination if an engine family’s inuse testing results exceeded emission 

standards (61 FR 52095, October 4, 

1996). 

We are proposing a more general 

approach to addressing potential 

noncompliance under the in-use testing 

program than is specified in 40 CFR part 

91. The proposed regulations do not 

specify how manufacturers would 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28135 

generate emission credits to offset a 

nonconforming engine family. The 

proposed approach is preferred for two 

primary reasons. First, manufacturers 

will be able to use emission data 

generated from field testing to 

characterize an engine family’s average 

emission level. This becomes 

necessarily more subjective, but allows 

us to consider a wider range of 

information in evaluating the degree to 

which manufacturers are complying 

with emission standards across their 

product line. Second, this approach 

makes clearer the role of the emission 

credits in our consideration to recall 

failing engines. We plan to consider, 

among other information, average 

emission levels from multiple engine 

families in deciding whether to recall 

engines from a failing engine family. We 

therefore believe it is not appropriate to 

have a detailed emission credit program 

defining precisely how and when to 

calculate, generate, and use credits that 

do not necessarily have value 

elsewhere. 

Not specifying how manufacturers 

generate emission credits under the inuse testing program gives us the ability 

to consider any appropriate test data in 

deciding what action to take. In 

generating this kind of information, 

some general guidelines would apply. 

For example, we would expect 

manufacturers to share test data from all 

engines and all engine families tested 

under the in-use testing program, 

including nonstandard tests that might 

be used to screen engines for later 

measurement. This allows us to 

understand the manufacturers’ overall 

level of performance in controlling 

emissions to meet emission standards. 

Average emission levels should be 

calculated over a running three-year 

period to include a broad range of 

testing without skewing the results 

based on old designs. Emission values 

from engines certified to different tiers 

of emission standards or tested using 

different measurement procedures 

should not be combined to calculate a 

single average emission level. Average 

emission levels should be calculated 

according to the following equation, 

rounding the results to 0.1 g/kW-hr: 

Average EL = Si[(STD¥CL)i × (UL)i × 

(Sales)i × Poweri × LFi] ÷ Si [(UL)i × 

(Sales)i × Poweri × LFi] 

Where: 

Average EL = Average emission level in g/ 

kW-hr. 

Salesi = The number of eligible sales, tracked 

to the point of first retail sale in the U.S., 

for the given engine family during the 

model year. 

(STD¥CL)i = The difference between the 

emission standard (or Family Emission 

Limit) and the average emission level for 

an in-use testing family in g/kW-hr. 

ULi = Useful life in hours. 

Poweri = The sales-weighted average 

maximum engine power for an engine 

family in kW. 

LFi = Load factor or fraction of maximum 

engine power utilized in use; use 0.50 for 

engine families used only in constantspeed applications and 0.32 for all other 

engine families. 

We have adopted this same approach 

for the in-use testing program that 

applies for Large SI engines in 40 CFR 

part 1048. 

(3) Optional Procedures for Field 

Testing 

Outboard engines are inherently 

portable, so it may be easier to test them 

in the laboratory than in the field. 

However, there is a strong advantage to 

using portable measurement equipment 

to test personal watercraft and SD/I 

engines while the engine remains 

installed to avoid the effort of taking the 

engine out and setting it up in a 

laboratory. Field testing would also 

provide a much better means of 

measuring emissions to establish 

compliance with the NTE standards, 

because it is intended to ensure control 

of emissions during normal in-use 

operation that may not occur during 

laboratory testing over the specified 

duty cycle. We propose to apply the 

field testing provisions described below 

as an option for all OB/PWC and SD/I 

engines. We request comment on any 

ways the field testing procedures should 

be modified to address the unique 

operating characteristics of OB/PWC or 

SD/I engines. 

The regulations at 40 CFR part 1065, 

subpart J, specify how to measure 

emissions using portable measurement 

equipment. To test engines while they 

remain installed, analyzers are 

connected to the engine’s exhaust to 

detect emission concentrations during 

normal operation. Exhaust volumetric 

flow rate and continuous power output 

are also needed to convert the analyzer 

responses to units of g/kW-hr for 

comparing to emission standards. These 

values can be calculated from 

measurements of the engine intake flow 

rate, the exhaust air-fuel ratio and the 

engine speed, and from torque 

information. 

Available small analyzers and other 

equipment may be adapted for 

measuring emissions from field 

equipment. A portable flame ionization 

detector can measure total hydrocarbon 

concentrations. A portable analyzer 

based on zirconia technology can 

measure NOX emissions. A 

nondispersive infrared (NDIR) unit can 

measure CO. We are proposing to 

require manufacturers to specify how 

they would allow for drawing emission 

samples from in-use engines for testing 

installed engines. For example, 

emission samples can be drawn from 

the exhaust flow directly upstream of 

the point at which water is mixed into 

the exhaust flow. This should minimize 

collection of water in the extracted 

sample, though a water separator may 

be needed to maintain a sufficiently dry 

sample. Mass flow rates also factor into 

the torque calculation; this may be 

measured either in the intake or exhaust 

manifold. 

Calculating brake-specific emissions 

depends on determining instantaneous 

engine speed and torque levels. We 

propose to require that manufacturers 

must therefore design their engines to be 

able to continuously monitor engine 

speed and torque. We have already 

adopted this requirement for other 

mobile source programs where 

electronic engine control is used. 

Monitoring speed values is 

straightforward. For torque, the onboard 

computer needs to convert measured 

engine parameters into useful units. 

Manufacturers generally will need to 

monitor a surrogate value such as intake 

manifold pressure or throttle position 

(or both), then rely on a look-up table 

programmed into the onboard computer 

to convert these torque indicators into 

Newton-meters. Manufacturers may also 

want to program the look-up tables for 

torque conversion into a remote scan 

tool. Part 1065 specifies the 

performance requirements for accuracy, 

repeatability, and noise related to speed 

and torque measurements. These 

tolerances are taken into account in the 

selection of the proposed NTE 

standards. 

(4) Other Changes for In-use Testing 

A question has been raised regarding 

the extent of liability if an engine family 

is found to be noncompliant during inuse testing. Because it can take up to 

two years to complete the in-use testing 

regimen for an engine family, we want 

to clarify the status of engines produced 

under that engine family’s certificate, 

and under the certificates of earlier and 

later engine families that were 

effectively of the same design. For 

example, manufacturers in many cases 

use carryover data to continue certifying 

new engine families for a subsequent 

model year; this avoids the need to 

produce new test data for engines whose 

design does not change from year to 

year. For these cases, absent any 

contrary information from the 

manufacturer, we will maintain the 

discretion to include other applicable 


sroberts on PROD1PC70 with PROPOSALS
28136 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

engine families in the scope of any 

eventual recall, as allowed by the Act. 

There are a variety of smaller changes 

to the in-use testing provisions as a 

result of updating the regulatory 

language to reflect the language changes 

that we adopted for similar testing with 

Large SI engines. First, we are proposing 

to remove the requirement to select 

engines that have had service 

accumulation representing less than 75 

percent of the useful life. This will 

allow manufacturers the flexibility to 

test somewhat older engines if they 

want to. Second, we are proposing to 

slightly adjust the description of the 

timing of the test program, specifying 

that the manufacturer must submit a test 

plan within 12 months of EPA selecting 

the family for testing, with a 

requirement to complete all testing 

within 24 months. This contrasts with 

the current requirement to complete 

testing within 12 months after the start 

of testing, which in turn must occur 

within 12 months of family selection. 

We believe the modified approach 

allows additional flexibility without 

delaying the conclusion of testing. 

Third, we are proposing to require that 

manufacturers explain why they 

excluded any particular engines from 

testing. Finally, we are proposing to 

require manufacturers to report any 

noncompliance within 15 days after 

completion of testing for a family, rather 

than 15 days after an individual engine 

fails. This has the advantage for 

manufacturers and the Agency of a more 

unified reporting after testing is 

complete, rather than piecemeal 

reporting before conclusions can be 

drawn. 

(5) Use of Engines Already Certified to 

Other Programs 

In some cases, manufacturers may 

want to use engines already certified 

under our other programs. Engines 

certified to the emission standards for 

highway applications in part 86 or Large 

SI applications in part 1048 are meeting 

more stringent standards. We are 

therefore proposing to allow the preexisting certification to be valid for 

engines used in marine applications, on 

the condition that the engine is not 

changed from its certified configuration 

in any way (see § 1045.605). For 

outboard and personal watercraft 

engines, we are also proposing to allow 

this for engines certified to the Phase 3 

emission standards for Small SI engines. 

Manufacturers would need to 

demonstrate that fewer than five percent 

of the total sales of the engine model are 

for marine applications. There are also 

a few minor notification and labeling 

requirements to allow for EPA oversight 

of this provision. 

(6) Import-Specific Information at 

Certification 

We are proposing to require 

additional information to improve our 

ability to oversee compliance related to 

imported engines (see § 1045.205). In 

the application for certification, we are 

proposing to require the following 

additional information: (1) The port or 

ports at which the manufacturer will 

import the engines, (2) the names and 

addresses of the agents the manufacturer 

has authorized to import the engines, 

and (3) the location of the test facilities 

in the United States where the 

manufacturer will test the engines if we 

select them for testing under a selective 

enforcement audit. 

F. Other Adjustments to Regulatory 

Provisions 

We are proposing to migrate the 

regulatory requirements for marine 

spark-ignition engines from 40 CFR part 

91 to 40 CFR part 1045. This gives us 

the opportunity to update the details of 

our certification and compliance 

program to be consistent with the 

comparable provisions that apply to 

other engine categories. The following 

paragraphs highlight some of the 

changes in the new language that may 

involve noteworthy changes from the 

existing regulations. All these 

provisions apply equally to SD/I 

engines, except that they are not subject 

to the current requirements in 40 CFR 

part 91. 

We are proposing some adjustments 

to the criteria for defining engine 

families (see § 1045.230). The 

fundamental principle behind engine 

families is to group together engines that 

will have similar emission 

characteristics over the useful life. We 

are proposing that engines within an 

engine family must have the same 

approximate bore diameter and all use 

the same method of air aspiration (for 

example, naturally aspirated vs. 

turbocharged). Under the current 

regulation, manufacturers may consider 

bore and stroke dimensions and 

aspiration method if they want to 

subdivide engine families beyond what 

would be required under the primary 

criteria specified in § 91.115. We believe 

engines with substantially different bore 

diameters will have combustion and 

operating characteristics that must be 

taken into account with unique 

engineering. Similarly, adding a 

turbocharger or supercharger to an 

engine changes the engine’s combustion 

and emission control in important ways. 

Finally, we are proposing that all the 

engines in an engine family use the 

same type of fuel. This may have been 

a simple oversight in the current 

regulations, since all OB/PWC engines 

operate on gasoline. However, if a 

manufacturer would produce an engine 

model that runs on natural gas or 

another alternative fuel, that engine 

model should be in its own engine 

family. 

The proposed regulatory language 

related to engine labels remains largely 

unchanged (see § 1045.135). However, 

we are including a provision to allow 

manufacturers to print labels that have 

a different company’s trademark. Some 

manufacturers in other programs have 

requested this flexibility for marketing 

purposes. 

The proposed warranty provisions are 

described above. We are proposing to 

add an administrative requirement to 

describe the provisions of the emissionrelated warranty in the owners manual 

(see § 1045.120). We expect that many 

manufacturers already do this, but 

believe it is appropriate to require this 

as a routine practice. 

Certification procedures depend on 

establishing deterioration factors to 

predict the degradation in emission 

controls that occurs over the course of 

an engine’s useful life. This typically 

involves service accumulation in the 

laboratory to simulate in-use operation. 

Since manufacturers do in-use testing to 

further characterize this deterioration 

rate, we are proposing to specify that 

deterioration factors for certification 

must take into account any available 

data from in-use testing with similar 

engines. This provision applies in most 

of our emission control programs that 

involve in-use testing. To the extent that 

this information is available, it should 

be factored into the certification 

process. For example, if in-use testing 

shows that emission deterioration is 

substantially higher than that 

characterized by the deterioration factor, 

we would expect the manufacturer to 

factor the in-use data into a new 

deterioration factor, or to revise 

durability testing procedures to better 

represent the observed in-use 

degradation. 

Maximum engine power for an engine 

family is an important parameter. For 

engines below 40 kW, the maximum 

engine power determines the applicable 

standard. For bigger engines, emission 

credits are calculated based on total 

power output. As a result, we are 

proposing to specify that manufacturers 

determine their engines’ maximum 

engine power as the point of maximum 

engine power on the engine map the 

manufacturers establish with their test 

engines (see Section VII.C.6 and 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28137 

§ 1045.140). This value would be based 

on the measured maximum engine 

power, without correction to some 

standard ambient conditions. 

The proposed requirements related to 

the application for certification would 

involve some new information, most of 

which is described above, such as 

installation instructions and a 

description of how engines comply with 

not-to-exceed standards (see 

§ 1045.205). In addition, we are 

proposing to require that manufacturers 

submit projected sales volumes for each 

family, rather than requiring that 

manufacturers keep these records and 

make them available upon request. 

Manufacturers already do this routinely 

and it is helpful to have ready access to 

this information to maintain compliance 

oversight of the program for Marine SI 

engines for such things as emission 

credit calculations. We are also 

proposing that each manufacturer 

identify an agent for service in the 

United States. For companies based 

outside the United States, this ensures 

that we will be able to maintain contact 

regarding any official communication 

that may be required. We have adopted 

these same requirements for other 

nonroad programs. 

We are proposing to require that 

manufacturers use good engineering 

judgment in all aspects of their effort to 

comply with regulatory requirements. 

The regulations at § 1068.5 describe 

how we would apply this provision and 

what we would require of 

manufacturers where we disagree with a 

manufacturer’s judgment. 

We are also proposing new defectreporting requirements. These are 

requirements are described in Section 

VIII. 

It is common practice for Marine SI 

engines for one company to produce the 

base engine for a second company to 

modify for the final application. Since 

our regulations prohibit the sale of 

uncertified engines, we are proposing 

provisions to clarify the status of these 

engines and defining a path by which 

these engines can be handled without 

violating the regulations. See Section XI 

for more information. 

We request comment on all these 

changes to the regulations. Where there 

is an objection to any of the proposed 

provisions, we request comment on 

alternative provisions that would best 

address the concern on which the 

proposed provisions are based. Also, 

aside from the items described in this 

section, there are many minor 

adjustments in the regulatory text. 

While most of these changes are 

intended to improve the clarity of the 

regulations without imposing new 

requirements, we request comment on 

any of these changes that may be 

inappropriate. We also request comment 

on any additional changes that may be 

helpful in making the regulations clear 

or addressing the administration or 

implementation of the regulatory 

requirements. 

G. Small-Business Provisions 

The OB/PWC market has traditionally 

been made up of large businesses. In 

addition, we anticipate that the OB/ 

PWC standards will be met through the 

expanded use of existing cleaner engine 

technologies. Small businesses 

certifying to standards today are already 

using technologies that could be used to 

meet the proposed standards. As a 

result, we are proposing only three 

small business regulatory relief 

provisions for small business 

manufacturers of OB/PWC engines. We 

are proposing to allow small business 

OB/PWC engine manufacturers to be 

exempt from PLT testing and to use 

assigned deterioration factors for 

certification. (EPA will provide 

guidance to engine manufacturers on 

the assigned deterioration factors prior 

to implementation of the new OB/PWC 

standards.) We are also proposing to 

extend the economic hardship relief for 

small businesses described in Section 

VIII.C.9 to small-business OB/PWC 

engine manufacturers (see § 1068.250). 

We are proposing small business 

eligibility criteria for OB/PWC engine 

manufacturers based on a production 

cut-off of 5,000 OB/PWC engines per 

year. We would also allow OB/PWC 

engine manufacturers that exceed the 

production cut-off level noted above but 

have fewer than 1,000 employees to 

request treatment as a small business. 

In addition to the flexibilities noted 

above, all OB/PWC engine 

manufacturers, regardless of size, would 

be able to apply for the unusual 

circumstances hardship described in 

Section VIII.C.8 (see § 1068.245). 

Finally, all OB/PWC vessel 

manufacturers, regardless of size, that 

rely on other companies to provide 

certified engines or fuel system 

components for their product would be 

able to apply for the hardship 

provisions described in Section 

VIII.C.10 (see § 1068.255). 

H. Technological Feasibility 

(1) Level of Standards 

Over the past several years, 

manufacturers have demonstrated their 

ability to achieve significant HC+NOX

emission reductions from outboard and 

personal watercraft engines. This has 

largely been accomplished through the 

introduction of two-stroke direct 

injection engines and conversion to 

four-stroke engines. Current certification 

data for these types of engines show that 

these technologies may be used to 

achieve emission levels significantly 

below the existing exhaust emission 

standards. In fact, California has 

adopted standards requiring a 65 

percent reduction beyond the current 

federal standards beginning in 2008. 

Our own analysis of recent 

certification data show that most fourstroke outboard engines and many twostroke direct injection outboard engines 

can meet the proposed HC+NOX

standard. Similarly, although PWC 

engines tend to have higher HC+NOX

emissions, presumably due to their 

higher power densities, many of these 

engines can also meet the proposed 

HC+NOX standard. Although there is 

currently no CO standard for OB/PWC 

engines, OB/PWC manufacturers are 

required to report CO emissions from 

their engines (see § 91.107(d)(9)). These 

emissions are based on test data from 

new engines and do not consider 

deterioration or compliance margins. 

Based on this data, all of the two-stroke 

direct injection engines show emissions 

well below the proposed standards. In 

addition, the majority of four-stroke 

engines would meet the proposed CO 

standards as well. 

We therefore believe the proposed 

HC+NOX and CO emission standards 

can be achieved by phasing out 

conventional carbureted two-stroke 

engines and replacing them with fourstroke engines or two-stroke direct 

injection engines. This has been the 

market-driven trend over the last five 

years. Chapter 4 of the Draft RIA 

presents charts that compare 

certification data to the proposed 

standards. 

(2) Implementation Dates 

We are proposing to implement the 

new emission standards beginning with 

the 2009 model year. This gives an 

additional year beyond the 

implementation date of the California 

standards of similar stringency. This 

additional year may be necessary for 

manufacturers that don’t sell engine 

models in California or that sell less 

than their full product lineup into the 

California market. We believe the same 

technology used to meet the 2008 

standards in California could be used 

nationwide with the additional year 

allowed for any engine models not sold 

in California. Low-emission engines 

sold in California are generally sold 

nationwide as part of manufacturer 

compliance strategies for the Federal 

2006 standards. Manufacturers have 


sroberts on PROD1PC70 with PROPOSALS
28138 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

indicated that they are calibrating their 

four-stroke and direct-injection twostroke engines to meet the California 

requirements. To meet the proposed 

standards, manufacturers’ efforts would 

primarily center on phasing out their 

higher-emission carbureted two-stroke 

engines and producing more of their 

lower emission engines. 

(3) Technological Approaches 

Conventional two-stroke engines add 

a fuel-oil mixture to the intake air with 

a carburetor, and use the crankcase to 

force this mixed charge air into the 

combustion chamber. In the two-stroke 

design, the exhaust gases must be 

purged from the cylinder while the fresh 

charge enters the cylinder. With 

traditional two-stroke designs, the fresh 

charge, with unburned fuel and oil, 

would push the exhaust gases out of the 

combustion chamber as the combustion 

event concludes. As a result, 25 percent 

or more of the fresh fuel-oil could pass 

through the engine unburned. This is 

known as scavenging losses. 

Manufacturers have phased out sales of 

the majority of their traditional twostroke engines to meet the federal 2006 

OB/PWC exhaust emission standards. 

However, many of these engines still 

remain in the product mix as a result of 

emission credits. 

One approach to minimizing 

scavenging losses in a two-stroke engine 

is through the use of direct fuel 

injection into the combustion chamber. 

The primary advantage of direct 

injection for a two-stroke is that the 

exhaust gases can be scavenged with 

fresh air and fuel can be injected into 

the combustion chamber after the 

exhaust port closes. As a result, 

hydrocarbon emissions, fuel economy, 

and oil consumption are greatly 

improved. Some users prefer two-stroke 

direct injection engines over four-stroke 

engines due to the higher power-toweight ratio. Most of the two-stroke 

direct injection engines currently 

certified to the current OB/PWC 

emission standards have HC+NOX

emissions levels somewhat higher than 

certified four-stroke engines. However, 

these engines also typically have lower 

CO emissions due to the nature of a 

heterogeneous charge. By injecting the 

fuel directly into a charge of air in the 

combustion chamber, localized areas of 

lean air/fuel mixtures are created where 

CO is efficiently oxidized. 

OB/PWC manufacturers are also 

achieving lower emissions through the 

use of four-stroke engine designs. 

Because the combustion cycle takes 

place over two revolutions of the 

crankshaft, the fresh fuel-air charge can 

enter the combustion chamber after the 

exhaust valve is closed. This prevents 

scavenging losses. Manufacturers 

currently offer four-stroke marine 

engines with maximum engine power 

ranging from 1.5 to 224 kW. These 

engines are available with carburetion, 

throttle-body fuel injection, or multipoint fuel injection. Based on the 

certification data, whether the engine is 

carbureted or fuel-injected does not 

have a significant effect on combined 

HC+NOX emissions. For PWC engines, 

the HC+NOX levels are somewhat 

higher, primarily due to their higher 

power-to-weight ratio. CO emissions 

from PWC engines are similar to those 

for four-stroke outboard engines. 

One manufacturer has certified two 

PWC engine models with oxidation 

catalysts. One engine model uses the 

oxidation catalyst in conjunction with a 

carburetor while the other uses throttlebody fuel injection. In this application, 

the exhaust system is shaped in such a 

way to protect the catalyst from water. 

The exhaust system is relatively large 

compared to the size of the engine. We 

are not aware of any efforts to develop 

a three-way catalyst system for PWC 

engines. We are also not aware of any 

development efforts to package a 

catalyst into the exhaust system of an 

outboard marine engine. In current 

designs, water and exhaust are mixed in 

the exhaust system to help cool the 

exhaust and tune the engine. Water can 

work its way up through the exhaust 

system because the lower end is under 

water and varying pressures in the 

exhaust stream can draw water against 

the prevailing gas flow. As discussed in 

Chapter 4 of the Draft RIA, saltwater can 

be detrimental to catalyst performance 

and durability. In addition, outboard 

engines are designed with lower units 

that are designed to be as thin as 

possible to improve the ability to turn 

the engine on the back of the boat and 

to reduce drag on the lowest part of the 

unit. This raises concerns about the 

placement and packaging of catalysts in 

the exhaust stream. Certainly, the 

success of packaging catalysts in 

sterndrive and inboard boats in recent 

development efforts (see Section III) 

suggests that catalysts may be feasible 

for outboards with additional effort. 

However, this has not yet been 

demonstrated and significant 

development efforts would be 

necessary. We request comment on the 

feasibility of using catalysts on OB and 

PWC engines. 

(4) Regulatory Alternatives 

We considered a level of 10 g/kW-hr 

HC+NOX for OB/PWC engines above 40 

kW with an equivalent percent 

reduction below the proposed standards 

for engines below 40 kW. This second 

tier of standards could apply in the 2012 

or later time frame. Such a standard 

would be consistent with currently 

certified emission levels from a 

significant number of four-stroke 

outboard engines. We have three 

concerns with adopting this second tier 

of OB/PWC standards. First, while some 

four-stroke engines may be able to meet 

a 10 g/kW-hr standard with improved 

calibrations, it is not clear that all 

engines could meet this standard 

without applying catalyst technology. 

As described in Section IV.H.3, we 

believe it is not appropriate to base 

standards in this rule on the use of 

catalysts for OB/PWC engines. Second, 

certification data for personal watercraft 

engines show somewhat higher exhaust 

emission levels, so setting the standard 

at 10 g/kW-hr would likely require 

catalysts for many models. Third, it is 

not clear that two-stroke engines would 

be able to meet the more stringent 

standard, even with direct injection and 

catalysts. These engines operate with 

lean air-fuel ratios, so reducing NOX

emissions with any kind of 

aftertreatment is especially challenging. 

Therefore, unlike the proposed 

standards for sterndrive and inboard 

engines, we are not adopting OB/PWC 

standards that will require the use of 

catalysts. Catalyst technology would be 

necessary for significant additional 

control of HC+NOX and CO emissions. 

While there is good potential for 

eventual application of catalyst 

technology to outboard and personal 

watercraft engines, we believe the 

technology is not adequately 

demonstrated at this point. Much 

laboratory and in-water work is needed. 

(5) Our Conclusions 

We believe the proposed emission 

standards can be achieved by phasing 

out conventional carbureted two-stroke 

engines in favor of four-stroke engines 

or two-stroke direct injection engines. 

The four-stroke engines or two-stroke 

direct injection engines are already 

widely available from marine engine 

manufacturers. One or both of these 

technologies are currently in place for 

the whole range of outboard and 

personal watercraft engines. 

The proposed exhaust emission 

standards represent the greatest degree 

of emission control achievable in the 

contemplated time frame. While 

manufacturers can meet the proposed 

standards with their full product line in 

2009, requiring full compliance with a 

nationwide program earlier, such as in 

the same year that California introduces 

new emission standards, would pose an 

unreasonable requirement. Allowing 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28139 

80California ARB also adopted new fuel 

evaporative emission standards for equipment using 

handheld and nonhandheld engines. These 

included tank permeation standards for both types 

of equipment and hose permeation, running loss, 

and diurnal emission standards for nonhandheld 

equipment. See Section VI for additional 

information related to evaporative emissions. 

one year beyond California’s 

requirements is necessary to allow 

manufacturers to certify their full 

product line to the new standards, not 

only those products they will make 

available in California. Also, as 

described above, we believe the catalyst 

technology that would be required to 

meet emission standards substantially 

more stringent than we are proposing 

has not been adequately demonstrated 

for outboard or personal watercraft 

engines. As such, we believe the 

proposed standards for HC+NOX and 

CO emissions are the most stringent 

possible in this rulemaking. More time 

to gain experience with catalysts on 

sterndrive and inboard engines and a 

substantial engineering effort to apply 

that learning to outboard and personal 

watercraft engines may allow us to 

pursue more stringent standards in a 

future rulemaking. 

As discussed in Section X, we do not 

believe the proposed standards would 

have negative effects on energy, noise, 

or safety and may lead to some positive 

effects. 

V. Small SI Engines 

A. Overview 

This section applies to new nonroad 

spark-ignition engines with rated power 

at or below 19 kW (‘‘Small SI engines’’). 

These engines are most often used in 

lawn and garden applications, typically 

by individual consumers; they are many 

times also used by commercial operators 

and they provide power for a wide range 

of other home, industrial, farm, and 

construction applications. The engines 

are typically air-cooled single-cylinder 

models, though Class II engines (with 

displacement over 225 cc) may have two 

or three cylinders, and premium models 

with higher power may be water-cooled. 

We have already adopted two phases 

of exhaust standards for Small SI 

engines. The first phase of standards for 

nonhandheld engines generally led 

manufacturers to convert any two-stroke 

engines to four-stroke engines. These 

standards applied only to engines at the 

time of sale. The second phase of 

standards for nonhandheld engines 

generally led manufacturers to apply 

emission control technologies such as 

in-cylinder controls and improved 

carburetion, with the additional 

requirement that manufacturers needed 

to meet emission standards over a useful 

life period. 

As described in Section I, this 

proposal is the result of a Congressional 

mandate that springs from the new 

California ARB standards. In 2003, the 

California ARB adopted more stringent 

standards for nonhandheld engines. 

These standards target emission 

reductions of approximately 35 percent 

below EPA’s Phase 2 standards and are 

based on the expectation that 

manufacturers will use relatively lowefficiency three-way catalysts to control 

HC+NOX emissions. California ARB did 

not change the applicable CO emission 

standard.80

We are proposing to place these new 

regulations for Small SI engines in 40 

CFR part 1054 rather than changing the 

current regulations in 40 CFR part 90. 

This gives us the opportunity for 

proposing updates to the details of our 

certification and compliance program 

that are consistent with the comparable 

provisions that apply to other engine 

categories and describe regulatory 

requirements in plain language. Most of 

the change in regulatory text provides 

improved clarity without changing 

procedures or compliance obligations. 

Where there is a change that warrants 

further attention, we describe the need 

for the change below. 

B. Engines Covered by This Rule 

This action includes proposed 

exhaust emission standards for new 

nonroad engines with rated power at or 

below 19 kW that are sold in the United 

States. The exhaust standards are for 

nonhandheld engines (Classes I and II). 

As described in Section I, handheld 

Small SI engines (Classes III, IV, and V) 

are also subject to standards, but we are 

not proposing changes to the level of 

exhaust emission standards for these 

engines. As described in Section VI, we 

are also proposing standards for 

controlling evaporative emissions from 

Small SI engines, including both 

handheld and nonhandheld engines. 

Certain of the provisions discussed in 

this Section V apply to both handheld 

and nonhandheld engines, as noted. 

Reference to both handheld and 

nonhandheld engines also includes 

marine auxiliary engines subject to the 

Small SI standards for that size engine. 

(1) Engines Covered by Other Programs 

The Small SI standards do not apply 

to recreational vehicles covered by EPA 

emission standards in 40 CFR part 1051. 

The regulations in part 1051 apply to 

off-highway motorcycles, snowmobiles, 

all-terrain vehicles, and high-speed 

offroad utility vehicles. However, if an 

amphibious vehicle with an engine at or 

below 19 kW is not subject to standards 

under part 1051, its engine would need 

to meet the Small SI standards. We also 

do not consider vehicles such as go 

karts or golf carts to be recreational 

vehicles because they are not intended 

for high-speed operation over rough 

terrain; these engines are also subject to 

Small SI standards. The Small SI 

standards do not apply to engines used 

in scooters or other vehicles that qualify 

as motor vehicles. 

Consistent with the current regulation 

under 40 CFR part 90, Small SI 

standards apply to spark-ignition 

engines used as generators or for other 

auxiliary power on marine vessels, but 

not to marine propulsion engines. As 

described below, we are proposing more 

stringent exhaust emission standards 

that would apply uniquely to marine 

generator engines. 

Engines with rated power above 19 

kW are subject to emission standards 

under 40 CFR part 1048. However, we 

adopted a special provision under part 

1048 allowing engines with total 

displacement at or below 1000 cc and 

with rated power at or below 30 kW to 

meet the applicable Small SI standards 

instead of the standards in part 1048. 

For any engines that are certified using 

this provision, any emission standards 

that we adopt for Class II engines and 

equipment in this rulemaking will also 

apply at the same time. Since these 

engines are not required to meet the 

Small SI standards we have not 

included them in the analyses 

associated with this proposal. 

(2) Maximum Engine Power and Engine 

Displacement 

Under the current regulations, rated 

power and power rating are not defined 

terms, which leaves manufacturers to 

determine their values. We are 

proposing to establish an objective 

approach to establishing ‘‘maximum 

engine power’’ under the regulations 

(see Section VII.C.6 and § 1054.140). 

This value has regulatory significance 

for Small SI engines only to establish 

whether or not engines are instead 

subject to Large SI standards. 

Determining maximum engine power is 

therefore relevant only for those engines 

that are approaching the line separating 

these two engine categories. We are 

proposing to require that manufacturers 

determine and report maximum engine 

power if their emission-data engine has 

a maximum modal power at or above 15 

kW. 

Similarly, the regulations depend on 

engine displacement to differentiate 

engines for the applicability of different 

standards. The regulations currently 

provide no objective direction or 


sroberts on PROD1PC70 with PROPOSALS
28140 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

restriction regarding the determinations 

of engine displacement. We are 

proposing to define displacement as the 

intended swept volume of the engine to 

the nearest cubic centimeter, where the 

engine’s swept volume is the product of 

the internal cross-section area of the 

cylinders, the stroke length, and the 

number of cylinders. As described 

Section VII.C.6 for maximum engine 

power, we are proposing that the 

intended swept volume must be within 

the range of the actual swept volumes of 

production engines considering normal 

production variability. If production 

engines are found to have different 

swept volumes, this should be noted in 

a change to the application for 

certification. 

(3) Exempted or Excluded Engines 

Under the Clean Air Act, engines that 

are used in stationary applications are 

not nonroad engines. States are 

generally preempted from setting 

emission standards for nonroad engines 

but this preemption does not apply to 

stationary engines. EPA recently 

adopted emission standards for 

stationary compression-ignition engines 

sold or used in the United States (71 FR 

39154, July 11, 2006). In addition, EPA 

has proposed emission standards for 

stationary spark-ignition engines in a 

separate action (71 FR 33804, June 12, 

2006). In pursuing emission standards 

for stationary engines, we have 

attempted to maintain consistency 

between stationary and nonroad 

requirements as much as possible. As 

explained in the proposal for stationary 

spark-ignition engines, since stationary 

spark-ignition engines below 19 kW are 

almost all sold into residential 

applications, we believe it is not 

appropriate to include requirements for 

owners or operators that would 

normally be part of a program for 

implementing standards for stationary 

engines. As a result, in that proposal we 

indicated that it is most appropriate to 

set exhaust and evaporative emission 

standards for stationary spark-ignition 

engines below 19 kW as if they were 

nonroad engines. This would allow 

manufacturers to make a single product 

that meets all applicable EPA standards 

for both stationary and nonroad 

applications. 

The Clean Air Act provides for 

different treatment of engines used 

solely for competition. Rather than 

relying on engine design features that 

serve as inherent indicators of dedicated 

competitive use, we have taken the 

approach in other programs of more 

carefully differentiating competition 

and noncompetition models in ways 

that reflect the nature of the particular 

products. In the case of Small SI 

engines, we do not believe there are 

engine design features that allow us to 

differentiate between engines that are 

used solely for competition from those 

with racing-type features that are not 

used solely for competition. We are 

proposing that handheld and 

nonhandheld equipment with engines 

meeting all the following criteria would 

be considered to be used solely for 

competition, except in other cases 

where information is available 

indicating that engines are not used 

solely for competition: 

• The engine (or equipment in which 

the engine is installed) may not be 

displayed for sale in any public 

dealership; 

• Sale of the equipment in which the 

engine is installed must be limited to 

professional competitors or other 

qualified competitors; 

• The engine must have performance 

characteristics that are substantially 

superior to noncompetitive models; 

• The engines must be intended for 

use only in competition events 

sanctioned (with applicable permits) by 

a state or federal government agency or 

other widely recognized public 

organization, with operation limited to 

competition events, performance-record 

attempts, and official time trials. 

Engine manufacturers would make 

their request for each new model year 

and we would deny a request for future 

production if there are indications that 

some engines covered by previous 

requests are not being used solely for 

competition. Competition engines are 

produced and sold in very small 

quantities so manufacturers should be 

able to identify which engines qualify 

for this exemption. We request comment 

on this approach to qualifying for a 

competition exemption. (See 

§ 1054.620.) 

In the rulemaking for recreational 

vehicles, we chose not to apply 

standards to hobby products by 

exempting all reduced-scale models of 

vehicles that were not capable of 

transporting a person (67 FR 68242, 

November 8, 2002). We are proposing to 

extend that same provision to handheld 

and nonhandheld Small SI engines. (See 

§ 1054.5.) 

In the rulemaking to establish Phase 

2 emission standards, we adopted an 

exemption for handheld and 

nonhandheld engines used in rescue 

equipment. The regulation does not 

require any request, approval, or 

recordkeeping related to the exemption 

but we discovered while conducting the 

SBAR Panel described in Section VI.F 

that some companies are producing 

noncompliant engines under this 

exemption. We are proposing to keep 

this exemption but add several 

provisions to allow us to better monitor 

how it is used (see § 1054.625). We are 

proposing to keep the requirement that 

equipment manufacturers use certified 

engines if they are available. We are 

proposing to update this provision by 

adding a requirement that equipment 

manufacturers use an engine that has 

been certified to less stringent Phase 1 

or Phase 2 standards if such an engine 

is available. We are proposing to 

explicitly allow engine manufacturers to 

produce engines for this exemption 

(with permanent labels identifying the 

particular exemption), but only if they 

have a written request for each 

equipment model from the equipment 

manufacturer. We are further proposing 

that the equipment manufacturer notify 

EPA of the intent to produce emergency 

equipment with exempted engines. 

Also, to clarify the scope of this 

provision, we are proposing to define 

‘‘emergency rescue situations’’ as 

firefighting or other situations in which 

a person is retrieved from imminent 

danger. Finally, we are proposing to 

clarify that EPA may discontinue the 

exemption on a case-by-case basis if we 

find that engines are not used solely for 

emergency and rescue equipment or if 

we find that a certified engine is 

available to power the equipment safely 

and practically. We propose to apply the 

provisions of this section for new 

equipment built on or after January 1, 

2009. 

The current regulations also specify 

an exemption allowing individuals to 

import up to three nonconforming 

handheld or nonhandheld engines one 

time. We are proposing to keep this 

exemption with three adjustments (see 

§ 1054.630). First, we are proposing to 

allow this exemption only for used 

equipment. Allowing importation of 

new equipment under this exemption is 

not consistent with the intent of the 

provision, which is to allow people to 

move to the United States from another 

country and continue to use lawn and 

garden equipment that may already be 

in the person’s possession. Second, we 

are proposing to allow such an 

importation once every five years but 

require a statement that the person 

importing the exempted equipment has 

not used this provision in the preceding 

five years. The current regulations allow 

only one importation in a person’s 

lifetime without including any way of 

making that enforceable. We believe the 

proposed combination of provisions 

represents an appropriate balance 

between preserving the enforceability of 

the exemption within the normal flow 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28141 

of personal property for people coming 

into the country. Third, we are 

proposing to no longer require 

submission of the taxpayer 

identification number since this is not 

essential for ensuring compliance. 

C. Proposed Requirements 

A key element of the proposed new 

requirements for Small SI engines is the 

more stringent exhaust emission 

standards for nonhandheld engines. We 

are also proposing several changes to 

the certification program that would 

apply to both handheld and 

nonhandheld engines. For example, we 

are proposing to clarify the process for 

selecting an engine family’s useful life, 

which defines the length of time over 

which manufacturers’ are responsible 

for meeting emission standards. We are 

also proposing several provisions to 

update the program for allowing 

manufacturers to use emission credits to 

show that they meet emission standards. 

The following sections describe the 

elements of this proposed rule. 

The timing for implementation of the 

new exhaust emission standards is 

described below. Unless we specify 

otherwise, all the additional proposed 

regulatory changes would apply when 

engines are subject to the emission 

standards and the other provisions 

under 40 CFR part 1054. This would be 

model year 2012 for Class I engines and 

model year 2011 for Class II engines. For 

handheld engines, we propose to 

require compliance with the provisions 

of part 1054, including the certification 

provisions, starting in the 2010 model 

year. These proposed requirements 

apply to handheld engines unless stated 

otherwise. For convenience we refer to 

the handheld emission standards in part 

1054 as Phase 3 standards even though 

the numerical values remain 

unchanged. 

(1) Emission Standards 

Extensive testing and dialogue with 

manufacturers and other interested 

parties has led us to a much better 

understanding of the capabilities and 

limitations of applying emission control 

technologies to Small SI nonhandheld 

engines. As described in the Draft RIA, 

we have collected a wealth of 

information related to the feasibility, 

performance characteristics, and safety 

implications of applying catalyst 

technology to these engines. We have 

concluded within the context of Clean 

Air Act section 213 that it is appropriate 

to propose emission standards that are 

consistent with those adopted by 

California ARB. We are proposing 

HC+NOX emission standards of 10.0 g/ 

kW-hr for Class I engines starting in the 

2012 model year, and 8.0 g/kW-hr for 

Class II engines starting in the 2011 

model year (see § 1054.105). For both 

classes of nonhandheld engines we are 

proposing to maintain the existing CO 

standard of 610 g/kW-hr. 

We are proposing to eliminate the 

defined subclasses for the smallest sizes 

of nonhandheld engines starting with 

implementation of the Phase 3 

standards. Under the current regulations 

in part 90, Class I–A is designated for 

engines with displacement below 66 cc 

that may be used in nonhandheld 

applications. To address the 

technological constraints of these 

engines, all the current requirements for 

these engines are the same as for 

handheld engines. Class I–B is similarly 

designated for engines with 

displacement between 66 and 100 cc 

that may be used in nonhandheld 

applications. These engines are 

currently subject to a mix of provisions 

that result in an overall stringency that 

lies between handheld and 

nonhandheld engines. We are proposing 

to revise the regulations such that 

engines below 80 cc are subject to the 

Phase 3 handheld engine standards in 

part 1054 starting in the 2010 model 

year. We are also proposing to allow 

engines below 80 cc to be used without 

restriction in nonhandheld equipment. 

Identifying the threshold at 80 cc aligns 

with the California ARB program. For 

nonhandheld engines at or above 80 cc, 

we are proposing to treat them in every 

way as Class I engines. Based on the fact 

that it is more difficult for smaller 

displacement engines to achieve the 

same g/kW-hr emission level as larger 

displacement engines, it will be more of 

a challenge for manufacturers to achieve 

a 10.0 g/kW-hr HC+NOX level on these 

smallest Class I engines. However, for 

those engines unable to achieve the 

level of the proposed standards (either 

with or without a catalyst), 

manufacturers may elect to rely on 

emissions averaging to comply with 

emission standards. We believe all 

manufacturers producing engines 

formerly included in Class I–B also have 

a wide enough range of engine models 

that they should be able to generate 

sufficient credits to meet standards 

across the full product line. (See 

§ 1054.101 and § 1054.801.) 

We are proposing another slight 

change to the definition of handheld 

engines that may affect whether an 

engine is subject to handheld or 

nonhandheld standards. The handheld 

definition relies on a weight threshold 

for certain engines. As recently as 1999, 

we affirmed that the regulation should 

allow for the fact that switching to a 

heavier four-stroke engine to meet 

emission standards might 

inappropriately cause an engine to no 

longer qualify as a handheld engine (64 

FR 5252, February 3, 1999). The 

regulation accordingly specifies that the 

weight limit is 20 kilograms for oneperson augers and 14 kilograms for 

other types of equipment, based on the 

weight of the engine that was in place 

before applying emission control 

technologies. We believe it is 

impractical to base a weight limit on 

product specifications that have become 

difficult to establish. We are therefore 

proposing to increase each of the 

specified weight limits by 1 kilogram, 

representing the approximate additional 

weight related to switching to a fourstroke engine, and applying the new 

weight limit to all engines and 

equipment (see § 1054.801). We request 

comment on this adjustment to the 

handheld engine definition. 

The regulations in part 90 allow 

manufacturers to rely on altitude kits to 

comply with emission requirements at 

high altitude. We are proposing to 

continue with this approach but to 

clarify that all nonhandheld engines 

must comply with Phase 3 standards 

without altitude kits at barometric 

pressures above 94.0 kPa, which 

corresponds to altitudes up to about 

2,000 feet above sea level (see 

§ 1054.115). This would ensure that all 

areas east of the Rocky Mountains and 

most of the populated areas in Pacific 

Coast states would have compliant 

engines without depending on engine 

modifications. This becomes 

increasingly important as we anticipate 

manufacturers relying on technologies 

that are sensitive to controlling air-fuel 

ratio for reducing emissions. Engine 

manufacturers must identify the altitude 

ranges for proper engine performance 

and emission control that are expected 

with and without the altitude kit in the 

owners manual. The owners manual 

must also state that operating the engine 

with the wrong engine configuration at 

a given altitude may increase its 

emissions and decrease fuel efficiency 

and performance. See Section V.E.5 for 

further discussion related to the 

deployment of altitude kits where the 

manufacturers rely on them for 

operation at higher altitudes. 

We are proposing a slightly different 

approach for handheld engines with 

respect to altitude. Since we are not 

adopting more stringent exhaust 

emission standards, we believe it is 

appropriate to adopt provisions that are 

consistent with current practice at this 

time. We are therefore proposing to 

require handheld engines to comply 

with the current standards without 

altitude kits at barometric pressures 


sroberts on PROD1PC70 with PROPOSALS
28142 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

above 96.0 kPa, which would allow for 

testing in most weather conditions at all 

altitudes up to about 1,100 feet above 

sea level. 

Spark-ignition engines used for 

marine auxiliary power are covered by 

the same regulations as land-based 

engines of the same size. However, the 

marine versions of Small SI engines are 

able to make use of ambient water for 

enhanced cooling of the engine and 

exhaust system. Exhaust systems for 

these engines are water-jacketed to 

maintain low surface temperatures to 

minimize the risk of fires on boats 

where the generator is often installed in 

small compartments within the boat. 

Recently, auxiliary marine engine 

manufacturers have developed 

advanced technology in an effort to 

improve fuel consumption and CO 

emission rates for marine generators. 

This advanced technology includes the 

use of electronic fuel injection and 

three-way catalysts. As a result, 

manufacturers are offering new products 

with more than a 99 percent reduction 

in CO and have expressed their intent 

to offer only these advanced technology 

engines in the near future. They have 

stated that these low CO engines are due 

to market demand. We are proposing a 

CO standard of 5.0 g/kW-hr CO for 

marine generator engines to reflect the 

recent trend in marine generator engine 

design (see § 1054.105). For other 

auxiliary marine engines, we are 

proposing the same CO emission limits 

as for land-based engines. We believe 

this cap is necessary to prevent 

backsliding in CO emissions that could 

occur if new manufacturers were to 

attempt to enter the market with 

cheaper, high-CO designs. See Section II 

for a discussion of air quality concerns 

related to CO emissions. We request 

comment on the appropriateness of 

setting a separate standard for marine 

auxiliary engines and on the most 

appropriate level of such a standard. 

At this time, we are planning to 

continue the current regulatory 

approach for wintertime engines (e.g., 

engines used exclusively to power 

equipment such as snowthrowers and 

ice augers). Under this proposal, the 

HC+NOX exhaust emission standards 

would be optional for wintertime 

engines. However, if a manufacturer 

chooses to certify its wintertime engines 

to such standards, those engines would 

be subject to all the requirements as if 

the optional standards were mandatory. 

We are adding a definition of 

wintertime engines to clarify which 

engines qualify for these special 

provisions. We are also proposing to 

require that manufacturers identify 

these as wintertime engines on the 

emission control information label to 

prevent someone from inappropriately 

installing these engines (either new or 

used) in equipment that would not 

qualify for the wintertime exemption. 

All engines subject to standards must 

continue to control crankcase emissions. 

(2) Useful Life 

The Phase 2 standards for Small SI 

engines included the concept that 

manufacturers are responsible for 

meeting emission standards over a 

useful life period. The useful life 

defines the design target for ensuring 

the durability of emission controls 

under normal in-use operation for 

properly maintained engines. Given the 

very wide range of engine applications, 

from very low-cost consumer products 

to commercial models designed for 

continuous operation, we determined 

that a single useful life value for all 

products, which is typical for other 

engine programs, was not appropriate 

for Small SI engines. We proposed at 

that time to determine the useful life for 

an engine family based on specific 

criteria, but commenters suggested that 

such a requirement was overly rigid and 

unnecessary. The final rule instead 

specified three alternative useful life 

values, giving manufacturers the 

responsibility to select the useful life 

that was most appropriate for their 

engines and the corresponding types of 

equipment. The preamble to the final 

rule expressed a remaining concern that 

manufacturers might not select the most 

appropriate useful life value, both for 

ensuring effective in-use emission 

control and for maintaining the integrity 

of emission-credit calculations. The 

preamble also stated our intent to 

periodically review the manufacturers’

decisions to determine whether 

modifications to these rules are 

appropriate. 

The regulations in § 90.105 provide a 

benchmark for determining the 

appropriate useful life value for an 

engine family. The regulations direct 

manufacturers to select the useful life 

value that ‘‘most closely approximates 

the expected useful lives of the 

equipment into which the engines are 

anticipated to be installed.’’ To maintain 

a measure of accountability, we 

included a requirement that 

manufacturers document the basis for 

their selected useful life values. The 

suggested data included, among other 

things: (1) Surveys of the life spans of 

the equipment in which the subject 

engines are installed; (2) engineering 

evaluations of field-aged engines to 

ascertain when engine performance 

deteriorates to the point where utility 

and/or reliability is impacted to a degree 

sufficient to necessitate overhaul or 

replacement; and (3) failure reports from 

engine customers. These regulatory 

provisions identify the median time to 

retirement for in-use equipment as the 

marker for defining the useful life 

period. This allows manufacturers to 

consider that equipment models may 

fail before the engine has reached the 

point of failure and that engines may be 

installed in different types of equipment 

with varying usage patterns. Engines 

used in different types of equipment, or 

even engines used in the same 

equipment models used by different 

operators, may experience widely 

varying usage rates. The manufacturer is 

expected to make judgments that take 

this variability into account when 

estimating the median life of in-use 

engines and equipment. 

Several manufacturers have made a 

good faith effort to select appropriate 

useful life values for their engine 

families, either by selecting only the 

highest value, or by selecting higher 

values for families that appear more 

likely to be used in commercial 

applications. At the same time, we have 

observed several instances in which 

engine models are installed in 

commercial equipment and marketed as 

long-life products but are certified to the 

minimum allowable useful life period. 

As described in the Phase 2 final rule, 

we are considering modifications to the 

regulations to address this recurring 

problem. 

After assessing several ideas, we are 

proposing an approach that preserves 

the fundamental elements of the current 

provisions related to useful life but 

clarifies and enhances its 

implementation (see § 1054.107). 

Manufacturers will continue to select 

the most appropriate useful life from the 

same nominal values to best match the 

expected in-use lifetime of the 

equipment into which the engines in the 

engine family will be installed. 

Manufacturers must continue to 

document the information supporting 

their selected useful life. We are 

considering three approaches to address 

remaining concerns with the process of 

selecting useful life values. 

First, for manufacturers not selecting 

the highest available nominal value for 

useful life, we would expect to routinely 

review the information to confirm that 

it complies with the regulation. Where 

our review indicates that the selected 

useful life may not be appropriate for an 

engine family, we may request further 

justification. If we determine from 

available information that a longer 

useful life is appropriate, the 

manufacturer must either provide 

additional justification or select a longer 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28143 

useful life for that engine family. We 

would encourage manufacturers to use 

the proposed provisions related to 

preliminary approval in § 1054.210 if 

there is any uncertainty related to the 

useful life selection. We would rather 

work to establish this together early in 

the certification process rather than 

reviewing a completed application for 

certification to evaluate whether the 

completed durability demonstration is 

sufficient. 

Second, we believe it is appropriate to 

modify the regulations to allow 

nonhandheld engine manufacturers to 

select a useful life value that is longer 

than the three specified nominal values. 

Manufacturers may choose to do this for 

the marketing advantage of selling a 

long-life product or they may want to 

generate emission credits that 

correspond to an expected lifetime that 

is substantially longer than we would 

otherwise allow. We are proposing to 

allow manufacturers to select longer 

useful life values in 100-hour 

increments. Durability testing for 

certification would need to correspond 

to the selected useful life period. We 

have considered the possibility that a 

manufacturer might overstate an engine 

family’s useful life to generate emission 

credits while knowing that engines may 

not operate that long. We believe the 

inherent testing burden and compliance 

liability is enough to avoid such a 

problem, but we are specifying 

maximum values corresponding with 

the applicable useful life for comparable 

diesel engines or Large SI engines. We 

are not proposing to allow for longer 

useful life values for handheld engines. 

We are also proposing to require that 

engines and equipment be labeled to 

identify the applicable useful life 

period. The current requirement allows 

manufacturers to identify the useful life 

with code letters on the engine’s 

emission control information label, with 

the numerical value of the useful life 

spelled out in the owners manual. We 

believe it is important for equipment 

manufacturers and consumers to be able 

to find an unambiguous designation 

showing the manufacturer’s 

expectations about the useful life of the 

engine. There has also been some 

interest in using descriptive terms to 

identify the useful life on the label. We 

believe any terminology would 

communicate less effectively than the 

numerical value of the useful life. 

However, we request comment on 

allowing or requiring manufacturers to 

also include descriptive terms. We 

believe it would be most appropriate to 

characterize the three useful life values 

in increasing order as Residential, 

Premium Residential (or General 

Purpose), and Commercial. Any useful 

life values beyond the three nominal 

values would appropriately be 

identified as Heavy Commercial. 

Handheld engine manufacturers have 

suggested using the terms Light Use, 

Medium Use, and Heavy Use to 

characterize the three useful life 

categories applicable to handheld 

engines. 

In all of our other engine programs, 

useful life is defined in terms of years 

of use or extent of engine operation, 

whichever comes first. Under the 

current regulations, manufacturers are 

responsible for meeting emission 

standards for any in-use engine that is 

properly maintained and used over the 

full useful life period. Since the useful 

life is defined in operating hours 

without regard to calendar years, some 

engines that accumulate operating hours 

very slowly could remain within the 

useful life period for ten years or more. 

We request comment regarding the 

appropriateness of revising the useful 

life to limit the useful life period to five 

years or the specified number of 

operating hours, whichever comes first. 

Adding a five-year limit on the useful 

life would not change the certification 

process. 

(3) Averaging, Banking, and Trading 

EPA has included averaging, banking, 

and trading (ABT) programs in almost 

all of its recent mobile source emissions 

control programs. EPA’s existing Phase 

2 regulations for Small SI engines 

include an exhaust ABT program (40 

CFR 90.201 through 90.211). We 

propose to adopt an ABT program for 

the Phase 3 HC+NOX exhaust emission 

standards that is similar to the existing 

program (see part 1054, subpart H in the 

proposed regulations). The proposed 

exhaust ABT program is intended to 

enhance the ability of engine 

manufacturers to meet the emission 

standards for the proposed model years. 

The proposed exhaust ABT program is 

also structured to avoid delay of the 

transition to the new exhaust emission 

controls. As described in Section VI, we 

are proposing a separate evaporative 

ABT program for fuel tanks used in 

Small SI equipment (and for fuel lines 

used in handheld equipment). We are 

proposing that credits cannot be 

exchanged between the exhaust ABT 

program and the evaporative ABT 

program. 

The exhaust ABT program has three 

main components. Averaging means the 

exchange of emission credits between 

engine families within a given engine 

manufacturer’s product line for a 

specific model year. Engine 

manufacturers divide their product line 

into ‘‘engine families’’ that are 

comprised of engines expected to have 

similar emission characteristics 

throughout their useful life. Averaging 

allows a manufacturer to certify one or 

more engine families at levels above the 

applicable emission standard, but below 

a set upper limit. This level then 

becomes the applicable standard for all 

of the engines in that engine family, for 

purposes of certification, in-use testing, 

and the like. However, the increased 

emissions must be offset by one or more 

engine families within that 

manufacturer’s product line that are 

certified below the same emission 

standard, such that the average standard 

from all the manufacturer’s engine 

families, weighted by engine power, 

regulatory useful life, and production 

volume, is at or below the level of the 

emission standard. Banking means the 

retention of emission credits by the 

engine manufacturer for use in future 

model year averaging or trading. 

Trading means the exchange of emission 

credits between engine manufacturers 

which can then be used for averaging 

purposes, banked for future use, or 

traded to another engine manufacturer. 

Because we are not proposing any 

change in the general equation under 

which emission credits are calculated, 

EPA is proposing to allow 

manufacturers to use Phase 2 credits 

generated under the part 90 ABT 

program for engines that are certified in 

the Phase 3 program under part 1054, 

within the limits described below. As 

with the existing exhaust ABT program 

for Phase 2 engines in part 90, we are 

proposing that engines sold in 

California which are subject to the 

California ARB standards would not be 

included in the proposed exhaust ABT 

program because they are subject to 

California’s requirements and not EPA’s 

requirements. Furthermore, even though 

we are not proposing new exhaust 

emission standards for handheld 

engines, the handheld engine 

regulations are migrating to part 1054. 

Therefore, handheld engines will be 

included in the proposed ABT program 

under part 1054 with one change in the 

overall program as described below. 

Under an ABT program, averaging is 

allowed only between engine families in 

the same averaging set, as defined in the 

regulations. For the exhaust ABT 

program, we are proposing to separate 

handheld engines and nonhandheld 

engines into two distinct averaging sets 

starting with the 2011 model year. 

Under the proposed program, credits 

may generally be used interchangeably 

between Class I and Class II engine 

families, with a limited restriction on 

Phase 3 credits during model years 2011 


sroberts on PROD1PC70 with PROPOSALS
28144 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

and 2012 as noted below. Likewise, 

credits will be able to be used 

interchangeably between all three 

handheld engine classes (Classes III, IV, 

and V). Because the Phase 2 exhaust 

ABT program allowed exchange across 

all engine classes (i.e., allowing 

exchanges between handheld engines 

and nonhandheld engines), 

manufacturers using credits beginning 

with the 2011 model year would need 

to show that the credits were generated 

within the allowed category of engines. 

For many companies, especially those 

in the handheld market, this will 

potentially be straightforward since they 

are primarily in the handheld market. 

For companies that have a commingled 

pool of emission credits generated by 

both handheld engines and 

nonhandheld engines, this will take 

some more careful accounting. Because 

manufacturers are aware of this already 

at the time of this proposal, keeping 

records to distinguish handheld credits 

and nonhandheld credits will be 

relatively straightforward for 2006 and 

later model years. 

We are proposing two exceptions to 

the provision restricting credit 

exchanges between handheld engines 

and nonhandheld engines. Currently, 

some companies that are primarily 

nonhandheld engine manufacturers also 

sell a relatively limited number of 

handheld engines. Under the Phase 2 

program, these engine manufacturers 

can use credits from nonhandheld 

engines to offset the higher emissions of 

their handheld engines. Because we are 

not proposing new exhaust 

requirements for handheld engines, we 

are proposing to address this existing 

practice by specifying that an engine 

manufacturer may use emission credits 

from their nonhandheld engines for 

their handheld engines under the 

following conditions. A manufacturer 

may use credits from their nonhandheld 

engines for their handheld engines but 

only where the handheld engine family 

is certified in 2008 and later model 

years without any design changes from 

the 2007 model year and the FEL of the 

handheld engine family does not 

increase above the level that applied in 

the 2007 model year unless such an 

increase is based on emission data from 

production engines. We believe this 

allows for engine manufacturers to 

continue producing these handheld 

engines for use in existing handheld 

models of low-volume equipment 

applications while preventing new highemitting handheld engine families from 

entering the market through the use of 

nonhandheld engine credits. As 

discussed below, we are proposing to 

prohibit the use of Phase 2 nonhandheld 

engine credits after 2013 to demonstrate 

compliance with the Phase 3 

nonhandheld engine standards. For this 

reason, we request comment on whether 

we should allow only Phase 3 

nonhandheld engine credits to be used 

under this handheld engine credit 

provision after 2013 as well. 

A second exception to the provision 

restricting credit exchanges between 

handheld engines and nonhandheld 

engines arises because of our proposed 

handling of engines below 80cc. Under 

the proposed Phase 3 program, all 

engines below 80cc are considered 

handheld engines for the purposes of 

the emission standards. However, a few 

of these engines are used in 

nonhandheld applications. Therefore, 

EPA will allow a manufacturer to 

generate nonhandheld ABT credits from 

engines below 80cc for those engines a 

manufacturer has determined are used 

in nonhandheld applications. (The 

credits would be generated against the 

applicable handheld engine standard.) 

These nonhandheld credits could be 

used within the Class I and Class II 

engine classes to demonstrate 

compliance with the Phase 3 exhaust 

standards (subject to applicable 

restrictions). The credits generated by 

engines below 80cc used in handheld 

applications could only be used for 

other handheld engines. 

Under an ABT program, a 

manufacturer establishes a ‘‘family 

emission limit’’ (FEL) for each 

participating engine family. This FEL 

may be above or below the standard. 

The FEL becomes the enforceable 

emissions limit for all the engines in 

that family for purposes of compliance 

testing. FELs that are established above 

the standard may not exceed an upper 

limit specified in the ABT regulations. 

For nonhandheld engines we are 

proposing FEL caps to prevent the sale 

of very high-emitting engines. Under the 

proposed FEL cap, manufacturers would 

need to establish FELs at or below the 

levels of the Phase 2 HC+NOX emission 

standards of 16.1 g/kW-hr for Class I 

engines and 12.1 g/kW-hr for Class II 

engines. (The Phase 3 FEL cap for Class 

I engines with a displacement between 

80 cc and 100 cc would be 40.0 g/kWhr since these engines would have been 

Class I–B engines under the Phase 2 

regulations and subject to this higher 

level.) For handheld engines, where we 

are not proposing new exhaust emission 

standards, we are maintaining the FEL 

caps as currently specified in the part 90 

ABT regulations. 

For nonhandheld engines we are 

proposing two special provisions related 

to the transition from Phase 2 to Phase 

3 standards. First, we are proposing 

incentives for manufacturers to produce 

and sell engines certified at or below the 

Phase 3 standards before the standards 

are scheduled to be implemented. 

Second, we are proposing provisions to 

allow the use of Phase 2 credits for a 

limited period of time under specific 

conditions. The following discussions 

describes each of these provisions in 

more detail for Class I engines and Class 

II engines separately. 

For Class I, engine manufacturers 

could generate early Phase 3 credits by 

producing engines with an FEL at or 

below 10.0 g/kW-hr prior to 2012. These 

early Phase 3 credits would be 

calculated and categorized into two 

distinct types of credits, Transitional 

Phase 3 credits and Enduring Phase 3 

credits. For engines certified with an 

FEL at or below 10.0 g/kW-hr, the 

manufacturer would earn Transitional 

Phase 3 credits. The Transitional Phase 

3 credits would be calculated based on 

the difference between 10.0 g/kW-hr 

and 15.0 g/kW-hr. (The 15.0 g/kW-hr 

level is the production-weighted average 

of Class I FEL values under the Phase 2 

program.) Manufacturers could use the 

Transitional Phase 3 credits from Class 

I engines in 2012 through 2014 model 

years. For engines certified with an FEL 

below 10.0 g/kW-hr, manufacturers 

would earn Enduring Phase 3 credits in 

addition to the Transitional Phase 3 

credits described above. The Enduring 

Phase 3 credits would be calculated 

based on the difference between the FEL 

for the engine family and 10.0 g/kW-hr 

(i.e., the applicable Phase 3 standard). 

The Enduring Phase 3 credits could be 

used once the Phase 3 standards are 

implemented without the model year 

restriction noted above for Transitional 

Phase 3 credits. 

For Class I, engine manufacturers may 

use Phase 2 credits generated by 

nonhandheld engines for the first two 

years of the Phase 3 standards (i.e., 

model years 2012 and 2013) under 

certain conditions. The manufacturer 

must first use all of its available Phase 

3 credits to demonstrate compliance 

with the Phase 3 standards. This would 

include all early Phase 3 credits 

(Transitional and Enduring) as well as 

all other Phase 3 credits, subject to the 

cross-class credit restriction noted 

below which applies prior to model year 

2013. If these Phase 3 credits are 

sufficient to demonstrate compliance, 

the manufacturer may not use Phase 2 

credits. If these Phase 3 credits are 

insufficient to demonstrate compliance, 

the manufacturer could use Phase 2 

credits to a limited degree (under the 

conditions described below) to cover the 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28145 

remaining amount of credits needed to 

demonstrate compliance. 

The maximum number of Phase 2 

HC+NOX exhaust emission credits a 

manufacturer could use for their Class I 

engines would be calculated based on 

the characteristics of Class I engines 

produced during the 2007, 2008, and 

2009 model years. For each of those 

years, the manufacturer would calculate 

a Phase 2 credit allowance using the 

ABT credit equation and inserting 1.6 g/ 

kW-hr for the ‘‘Standard—FEL’’ term, 

and basing the rest of the values on the 

total production of Class I engines, the 

production-weighted power for all Class 

I engines, and production-weighted 

useful life value for all Class I engines 

produced in each of those years. 

Manufacturers would not include their 

wintertime engines in the calculations 

unless the engines are certified to meet 

the otherwise applicable HC+NOX

emission standard. The maximum 

number of Phase 2 HC+NOX exhaust 

emission credits a manufacturer could 

use for their Class I engines (calculated 

in kilograms) would be the average of 

the three values calculated for model 

years 2007, 2008, and 2009. The 

calculation described above allows a 

manufacturer to use Phase 2 credits to 

cover a cumulative shortfall over the 

first two years for their Class I engines 

of 1.6 g/kW-hr above the Phase 3 

standard. 

The Phase 2 credit allowance for Class 

I engines could be used all in 2012, all 

in 2013, or partially in either or both 

model year’s ABT compliance 

calculations. Because ABT compliance 

calculations must be done annually, the 

manufacturer will know its 2013 

remaining allowance based on its 2012 

calculation. For example, if a 

manufacturer uses all of its Phase 2 

credit allowance in 2012, it will have no 

use of Phase 2 credits for 2013. 

Conversely, if a manufacturer doesn’t 

use any Phase 2 credits in 2012, it will 

have all of its Phase 2 credit allowance 

available for use in 2013. And of course, 

if a manufacturer uses less than its 

calculated total credits based on the 1.6 

g/kW-hr limit in 2012, the remainder 

would be available for use in 2013. This 

provision allows for some use of Phase 

2 emission credits to address the 

possibility of unanticipated challenges 

in reaching the Phase 3 emission levels 

in some cases or selling Phase 3 

compliant engines early nationwide, 

without creating a situation that would 

allow manufacturers to substantially 

delay the introduction of Phase 3 

emission controls. 

For Class II, engine manufacturers 

could generate early Phase 3 credits by 

producing engines with an FEL at or 

below 8.0 g/kW-hr prior to 2011. These 

early Phase 3 credits would be 

calculated and categorized as 

Transitional Phase 3 credits and 

Enduring Phase 3 credits. For engines 

certified with an FEL at or below 8.0 g/ 

kW-hr, the manufacturer would earn 

Transitional Phase 3 credits. The 

Transitional Phase 3 credits would be 

calculated based on the difference 

between 8.0 g/kW-hr and 11.0 g/kW-hr. 

(The 11.0 g/kW-hr level is the 

production-weighted average of Class II 

FEL values under the Phase 2 program.) 

Manufacturers could use the 

Transitional Phase 3 credits from Class 

II engines in 2011 through 2013 model 

years. For engines certified with an FEL 

below 8.0 g/kW-hr, manufacturers 

would earn Enduring Phase 3 credits in 

addition to the Transitional Phase 3 

credits described above. The Enduring 

Phase 3 credits would be calculated 

based on the difference between the FEL 

for the engine family and 8.0 g/kW-hr 

(i.e., the applicable Phase 3 standard). 

The Enduring Phase 3 credits could be 

used once the Phase 3 standards are 

implemented without the model year 

restriction noted above for Transitional 

Phase 3 credits. 

For Class II, engine manufacturers 

may use Phase 2 credits generated by 

nonhandheld engines for the first three 

years of the Phase 3 standards (i.e., 

model years 2011, 2012 and 2013) under 

certain conditions. The manufacturer 

must first use all of its available Phase 

3 credits to demonstrate compliance 

with the Phase 3 standards. This would 

include all early Phase 3 credits 

(Transitional and Enduring) as well as 

all other Phase 3 credits, subject to the 

cross-class credit restriction noted 

below which applies prior to model year 

2013. If these credits are sufficient to 

demonstrate compliance, the 

manufacturer may not use Phase 2 

credits. If these Phase 3 credits are 

insufficient to demonstrate compliance, 

the manufacturer could use Phase 2 

credits to a limited degree (under the 

conditions described below) to cover the 

remaining amount of credits needed to 

demonstrate compliance. 

The maximum number of Phase 2 

HC+NOX exhaust emission credits a 

manufacturer could use for their Class II 

engines would be calculated based on 

the characteristics of Class II engines 

produced during the 2007, 2008, and 

2009 model years. For each of those 

years, the manufacturer would calculate 

a Phase 2 credit allowance using the 

ABT credit equation and inserting 2.1 g/ 

kW-hr for the ‘‘Standard—FEL’’ term, 

and basing the rest of the values on the 

total production of Class II engines, the 

production-weighted power for all Class 

II engines, and production-weighted 

useful life value for all Class II engines 

produced in each of those years. 

Manufacturers would not include their 

wintertime engines in the calculations 

unless the engines are certified to meet 

the otherwise applicable HC+NOX

emission standard. The maximum 

number of Phase 2 HC+NOX exhaust 

emission credits a manufacturer could 

use for their Class II engines (calculated 

in kilograms) would be the average of 

the three values calculated for model 

years 2007, 2008, and 2009. The 

calculation described above allows a 

manufacturer to use Phase 2 credits to 

cover a cumulative shortfall over the 

first three years for their Class II engines 

of 2.1 g/kW-hr above the Phase 3 

standard. 

The Phase 2 credit allowance for Class 

II engines could be used all in 2011, all 

in 2012, all in 2013, or partially in any 

or all three model year’s ABT 

compliance calculations. Because ABT 

compliance calculations must be done 

annually, the manufacturer will know 

its remaining allowance based on its 

previous calculations. For example, if a 

manufacturer uses all of its Phase 2 

credit allowance in 2011, it will have no 

Phase 2 credits for 2012 or 2013. 

However, if a manufacturer uses less 

than its calculated total credits based on 

the 2.1 g/kW-hr limit in 2011, it will 

have the remainder of its allowance 

available for use in 2012 and 2013. This 

provision allows for some use of Phase 

2 emission credits to address the 

possibility of unanticipated challenges 

in reaching the Phase 3 emission levels 

in some cases or selling Phase 3 engines 

nationwide, without creating a situation 

that would allow manufacturers to 

substantially delay the introduction of 

Phase 3 emission controls. 

Engine manufacturers have raised 

concerns that despite all of their 

planning, they may not be able to 

accurately predict their use of credits at 

the beginning of the year. They are 

concerned that they may end up in a 

credit deficit situation if sales do not 

materialize as projected, potentially 

needing to use more Phase 2 credits 

than they have available to them. In 

order to prevent such a non-compliance 

situation from occurring, manufacturers 

have suggested that we allow 

manufacturers to carry a limited credit 

deficit during the initial years of the 

Phase 3 program. EPA has allowed such 

provisions in other rules, including 

deficit provisions for handheld engines 

in the Phase 2 regulations in which the 

manufacturer was required to cover the 

deficit in the next four model years with 

a penalty applied that increased over 

time depending how soon the deficit 


sroberts on PROD1PC70 with PROPOSALS
28146 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

was repaid. EPA requests comment on 

providing some type of credit deficit 

provisions for the Phase 3 exhaust 

standards for nonhandheld engines 

including what limits and penalties 

would be appropriate if such provisions 

were adopted. 

To avoid the use of credits to delay 

the introduction of Phase 3 

technologies, we are also proposing that 

manufacturers may not use Phase 3 

credits from Class I engines to 

demonstrate compliance with Class II 

engines in the 2011 and 2012 model 

years. Similarly, we are proposing that 

manufacturers may not use Phase 3 

credits from Class II engines to 

demonstrate compliance with Class I 

engines in the 2012 model year. The 1.6 

kW-hr and 2.1 g/kW-hr allowances 

discussed above may not be traded 

across engine classes or among 

manufacturers. 

We are proposing to make two 

additional adjustments related to the 

exhaust ABT program for engines 

subject to the new emission standards. 

As with all our other emission control 

programs, we are proposing that engine 

manufacturers identify an engine’s FEL 

on the emission control information 

label (see § 1054.135). This is important 

for readily establishing the enforceable 

level of emission control that applies for 

each engine. Recent experience has 

shown that this is also necessary in 

cases where the engine’s build date is 

difficult to determine. We are proposing 

to require that lowering an FEL after the 

start of production may occur only if the 

manufacturer has emission data from 

production engines justifying the lower 

FEL (see § 1054.225). This prevents 

manufacturers from making FEL 

changes late in the model year to 

generate more emission credits (or use 

fewer emission credits) when there is 

little or no opportunity to verify 

whether the revised FEL is appropriate 

for the engine family. This provision is 

common in EPA’s emission control 

programs for other engine categories. 

We are also proposing that the any 

revised FEL can apply only for engines 

produced after the FEL change. This is 

necessary to prevent manufacturers 

from recalculating emission credits in a 

way that leaves no way of verifying that 

the engines produced prior to the FEL 

change met the applicable requirements. 

It is also consistent with the proposal to 

require identification of the FEL on the 

emission control information label. 

Manufacturers have raised concerns that 

this approach sets up an inappropriate 

incentive to set FELs with the smallest 

possible compliance margin to avoid 

foregone emission credits in case 

production-line testing shows that 

actual emission levels were below that 

represented by the emission-data engine 

for certification. However, it is not clear 

why manufacturers should not perform 

sufficient testing early in the model year 

to be confident that the FEL is properly 

matched to the emission levels from 

production engines. Nevertheless, we 

request comment on any appropriate 

methods to use the results of 

production-line testing to revise FELs 

retroactively such that the past 

production is clearly compliant with 

respect to the modified FEL. An 

important element of our compliance 

program involves the responsibility to 

meet standards with production-line 

testing, not just with a backwardlooking calculation, but with a real-time 

evaluation at the point of testing. We 

would therefore not consider allowing 

revised FELs to apply for more than the 

first half of the production for a given 

model year. 

As described below in Section V.E.3., 

we are proposing that a limited number 

of Class II engines certified by engine 

manufacturers with a catalyst as Phase 

3 engines, may be installed by 

equipment manufacturers in equipment 

without the catalyst. (This would only 

be allowed when the engine is shipped 

separately from the exhaust system 

under the provisions described in 

Section V.E.2.) Because engine 

manufacturers may be generating 

emission credits from these catalystequipped engines, EPA is concerned 

that engine manufacturers could be 

earning exhaust ABT credits for engines 

that are sold but never have the catalyst 

installed. In discussions with EPA, 

engine manufacturers expressed 

concern about the difficulty of tracking 

the eventual use of these engines by 

equipment manufacturers (i.e., whether 

the catalyst-equipped exhaust system 

was installed or not). Therefore, instead 

of requiring engine manufacturers to 

track whether equipment manufacturers 

install the catalyst-equipped exhaust 

system into the equipment, EPA is 

proposing for model years 2011 through 

2014 that all Class II engine families 

which are offered for sale under the 

separate shipment provisions must 

decrease the number of ABT credits 

generated by the engine family by 10 

percent. This adjustment would only 

apply to engines generating credits 

because those are the engines most 

likely to be equipped with catalysts. We 

believe the 10 percent decrease from 

credit generating engines should 

provide an emission adjustment 

commensurate with the potential use of 

the equipment manufacturer flexibility 

provisions described in Section V.E.3. 

We request comment on this approach 

to addressing the concern related to 

engines involving delegated-assembly 

provisions. In particular, we request 

comment regarding the amount of the 

credit adjustment, and whether there 

might be alternative approaches that 

would address this concern. 

For all emission credits generated by 

engines under the Phase 3 exhaust ABT 

program, we are proposing an unlimited 

credit life. We consider these emission 

credits to be part of the overall program 

for complying with Phase 3 standards. 

Given that we may consider further 

reductions beyond the Phase 3 

standards in the future, we believe it 

will be important to assess the ABT 

credit situation that exists at the time 

any post-Phase 3 standards are 

considered. We will need to set such 

future emission standards based on the 

statutory direction that emission 

standards must represent the greatest 

degree of emission control achievable, 

considering cost, safety, lead time, and 

other factors. Emission credit balances 

will be part of the analysis for 

determining the appropriate level and 

timing of new standards. If we were to 

allow the use of Phase 3 credits for 

meeting post-Phase 3 standards, we 

may, depending on the level of Phase 3 

credit banks, need to adopt emission 

standards at more stringent levels or 

with an earlier start date than we would 

absent the continued or limited use of 

Phase 3 credits. Alternatively, we could 

adopt future standards without allowing 

the use of Phase 3 credits. The proposal 

described in this notice describes a 

middle path in which we allow the use 

of Phase 2 credits to meet the Phase 3 

standards, with provisions that limit the 

extent and timing of using these credits. 

We are requesting comment on one 

particular issue regarding credit life. As 

proposed, credits earned under the 

Phase 3 exhaust ABT program would 

have an unlimited lifetime. This could 

result in a situation where credits 

generated by an engine sold in a model 

year are not used until many years later 

when the engines generating the credits 

have been scrapped and are no longer 

part of the fleet. EPA believes there may 

be value to limiting the use of credits to 

the period that the credit-generating 

engines exist in the fleet. For this 

reason, EPA requests comment on 

limiting the lifetime of the credits 

generated under the Phase 3 exhaust 

ABT program to five years. The five-year 

period is intended to be similar to the 

typical median life of Small SI 

equipment and is consistent with the 

contemplated specification for defining 

the useful life in years in addition to 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28147 

operating hours (see Section V.C.2 for 

more information). 

D. Testing Provisions 

The test procedures provide an 

objective measurement for establishing 

whether engines comply with emission 

standards. The following sections 

describe a variety of proposed changes 

to the current test procedures. Except as 

identified in the following sections, we 

are proposing to preserve the testingrelated regulatory provisions that 

currently apply under 40 CFR part 90. 

Note that we will approve any 

appropriate alternatives, deviations, or 

interpretations of the new testing 

requirements on a case-by-case basis 

rather than operating under any 

presumption that any such judgments 

made under the Phase 1 or Phase 2 

programs will continue to apply. 

(1) Migrating Procedures to 40 CFR Part 

1065 

Manufacturers have been using the 

procedures in 40 CFR part 90 to test 

their engines for certification of Phase 1 

and Phase 2 engines. As part of a much 

broader effort, we have adopted 

comprehensive testing specifications in 

40 CFR part 1065 that are intended to 

serve as the basis for testing all types of 

engines. The procedures in part 1065 

include updated information reflecting 

the current state of available technology. 

We are proposing to apply the 

procedures in part 1065 to nonhandheld 

engines starting with the applicability of 

the Phase 3 standards as specified in 40 

CFR part 1054, subpart F. As described 

in Section IX, the procedures in part 

1065 identifies new types of analyzers 

and updates a wide range of testing 

specifications, but leaves intact the 

fundamental approach for measuring 

exhaust emissions. There is no need to 

shift to the part 1065 procedures for 

nonhandheld engines before the 

proposed Phase 3 standards apply. See 

Section IX for additional information. 

We are not proposing new exhaust 

emission standards for handheld 

engines so there is no natural point in 

time for shifting to the part 1065 

procedures. For the reasons described 

above and in Section IX, we 

nevertheless believe handheld engines 

should also use the part 1065 

procedures for measuring exhaust 

emissions. We propose to require 

manufacturers to start using the part 

1065 procedures in the 2012 model 

year. Manufacturers would be allowed 

to continue certifying engines using 

carryover data generated under the part 

90 procedures, but any new certification 

testing would be subject to the part 1065 

procedures. 

Engine manufacturers have raised one 

issue related to the specified test 

procedures in part 1065. The 

calculations for determining mass 

emissions depend on a simplifying 

assumption that combustion is at 

stoichiometry or is in fuel-lean 

environment. This is not the case for 

many Small SI engines. The equation 

with the simplifying assumption does 

not take into account the equilibrium 

reaction between hydrogen and water. 

As a result, engines with fuel-rich 

operation would have detectable 

hydrogen concentrations in the exhaust, 

which would cause the analyzers to 

have a reading for hydrocarbon 

emissions that is somewhat higher than 

the actual value. To the extent there is 

a concern, we believe it would always 

be appropriate to rely on the reference 

equations without the simplifying 

assumptions made for the equations 

published in part 1065. We request 

comment on this approach to 

measurements from Small SI engines. 

(2) Duty Cycle 

The regulations under part 90 

currently specify duty cycles for testing 

engines for exhaust emissions. The 

current requirements specify how to 

control speeds and loads and describe 

the situations in which the installed 

engine governor controls engine speed. 

We are proposing to extend these 

provisions to testing under the new 

standards with a few adjustments 

described below. For engines equipped 

with an engine speed governor, the 

current regulations at 40 CFR 

90.409(a)(3) state: 

For Phase 2 Class I, Phase 2 Class I–B, and 

Phase 2 Class II engines equipped with an 

engine speed governor, the governor must be 

used to control engine speed during all test 

cycle modes except for Mode 1 or Mode 6, 

and no external throttle control may be used 

that interferes with the function of the 

engine’s governor; a controller may be used 

to adjust the governor setting for the desired 

engine speed in Modes 2–5 or Modes 7–10; 

and during Mode 1 or Mode 6 fixed throttle 

operation may be used to determine the 100 

percent torque value. 

In addition the current regulations at 

40 CFR 90.410(b) state: 

For Phase 2 Class I, I–B, and II engines 

equipped with an engine speed governor, 

during Mode 1 or Mode 6 hold both the 

specified speed and load within ± five 

percent of point, during Modes 2–3, or 

Modes 7–8 hold the specified load with ± 

five percent of point, during Modes 4–5 or 

Modes 9–10, hold the specified load within 

the larger range provided by ± 0.27 Nm (± 0.2 

lb-ft), or ± ten (10) percent of point, and 

during the idle mode hold the specified 

speed within ± ten percent of the 

manufacturer’s specified idle engine speed 

(see Table 1 in Appendix A of this subpart 

for a description of test Modes). 

Manufacturers have raised some 

questions about the interpretation of 

these provisions. Our intent is that the 

current requirements specify that testing 

be conducted as follows: 

• Full-load testing (Mode 1) occurs at 

wide-open throttle to maintain engines 

at rated speed, which is defined as the 

speed at which the engine’s maximum 

power occurs (as declared by the 

manufacturer). 

• Idle testing (Mode 6) occurs at the 

manufacturer’s specified idle speed 

with a maximum load of five percent of 

maximum torque. The regulation allows 

adjustment to control speeds that are 

different than would be maintained by 

the installed governor. 

• The installed governor must be 

used to control engine speed for testing 

at all modes with torque values between 

idle and full-load modes. The regulation 

allows adjustments for nominal speed 

settings that are different than would be 

maintained by the installed governor 

without modification. 

We are proposing adjustments to the 

current regulatory requirements in 40 

CFR part 90 (see § 1054.505). Since each 

of these proposed adjustments may have 

some effect on measured emission 

levels, we believe it is appropriate to 

implement these changes concurrent 

with the Phase 3 standards. To the 

extent the proposed adjustments apply 

to handheld engines, we believe it is 

appropriate to apply the changes for 

new testing with 2012 and later model 

year engines for the reasons described 

above for adopting the test procedures 

in part 1065. 

First, we are proposing to require 

engine speed during the idle mode to be 

controlled by the engine’s installed 

speed governor. We believe there is no 

testing limitation that would call for 

engine operation at idle to depart from 

the engine’s governed speed. Allowing 

manufacturers to arbitrarily declare an 

idle speed only allows manufacturers to 

select an idle speed that gives them an 

advantage in achieving lower measured 

emission results, but not in a way that 

corresponds to in-use emission control. 

We are also aware that some production 

engines have a user-selectable control 

for selecting high-speed or low-speed 

idle (commonly identified as ‘‘rabbit/ 

turtle’’ settings). We believe this 

parameter adjustment may have a 

significant effect on emissions that 

should be captured in the certification 

test procedure. As a result, we are 

proposing a requirement that 

manufacturers conduct testing with 

user-selectable controls set to keep the 


sroberts on PROD1PC70 with PROPOSALS
28148 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

engine operating at low-speed idle if 

any production engines in the engine 

family have such an option. 

Second, we are proposing an option 

in which manufacturers would test their 

nonhandheld engines using a rampedmodal version of the specified duty 

cycle, as described in Section IX. We 

expect this testing to be equivalent to 

the modal testing described above but 

would have advantages for streamlining 

test efforts by allowing for a single result 

for the full cycle instead of relying on 

a calculation from separate modal 

results. Under the proposal we would 

allow manufacturers the option to select 

this type of testing. EPA’s testing would 

generally involve ramped-modal testing 

only if the engine manufacturer selected 

this option for certification. 

Third, the part 90 regulations 

currently specify two duty cycles for 

nonhandheld engines: (1) Testing at 

rated speed; and (2) testing at 85 percent 

of rated speed. The regulations direct 

manufacturers simply to select the most 

appropriate cycle and declare the rated 

speed for their engines. We believe it is 

appropriate to make this more objective 

by stating that rated speed is 3600 rpm 

and intermediate speed is 3060 rpm, 

unless the manufacturer demonstrates 

that a different speed better represents 

the in-use operation for their engines. 

This is consistent with the most 

common in-use settings and most 

manufacturers’ current practice. 

In addition, we are proposing 

regulatory provisions to clarify how 

nonhandheld engines are operated to 

follow the prescribed duty cycle. As 

described in part 90, we are proposing 

to require that the engines operate 

ungoverned at wide-open throttle for the 

full-power mode. This test mode is used 

to denormalize the rest of the duty 

cycle. Testing at other modes occurs 

with the governor controlling engine 

speed. Before each test mode, 

manufacturers may adjust the governor 

to target the same nominal speed used 

for the full-power mode, with a 

tolerance limiting the variation in 

engine speed at each mode. 

Alternatively, testing may be done by 

letting the installed governor control 

engine speed, in which case only the 

torque value would need to be 

controlled within an established range. 

A different duty cycle applies to 

handheld engines, which are generally 

not equipped with governors to control 

engine speed. The current regulations 

allow manufacturers to name their 

operating speed for testing at each of the 

test modes. We are proposing to 

continue the allowance for 

manufacturers to select an appropriate 

engine speed for idle operation. 

However, we are concerned that this 

approach allows manufacturers too 

much discretion for selecting a rated 

speed for high-load testing. 

Manufacturers are encouraged to select 

a speed that best represents in-use 

operation for the engine family, but 

there is no requirement to prevent a 

manufacturer from selecting a rated 

speed that results in lower emissions, 

independent of the speeds at which inuse engines operate. We are proposing 

to specify that manufacturers select a 

value for rated speed that matches the 

most common speed for full-load 

operation within the engine family. 

Engine manufacturers generally also 

make their own equipment, so this 

information should be readily available. 

We would expect manufacturers to 

identify the range of equipment models 

covered by a given engine family, 

identify the in-use operating speeds for 

those models, and select the full-load 

speed applicable for the greatest number 

of projected unit sales. We further 

propose to require manufacturers to 

describe in their application for 

certification how they selected the value 

for rated speed. 

(3) Test Fuel 

We are proposing to require Phase 3 

testing with a standard test fuel 

consistent with the requirements under 

40 CFR part 90 (see 40 CFR part 1065, 

subpart H). In particular, we do not 

believe it is appropriate to create a 

flexibility to allow for testing using 

oxygenated fuel since this could affect 

an engine’s air-fuel ratio, which in turn 

could affect the engine’s combustion 

and emission characteristics. However, 

we understand that engine 

manufacturers may have emission data 

from some model years before the Phase 

3 standards take effect. We would allow 

for continued use of this pre-existing 

data as long as it is appropriate to use 

carryover data for demonstrating 

compliance with current standards. 

Ethanol is commonly blended into inuse gasoline and is anticipated to be 

more widely used in the future. 

However, we are not proposing a test 

fuel containing ethanol for two reasons. 

First, the technical feasibility of this 

rule is based on certification gasoline. If 

an ethanol fuel blend were used as the 

certification fuel, the standards would 

need to be adjusted to account for the 

effects of this fuel on emissions. Second, 

manufacturers may not use ethanol 

blends to certify Small SI engines in 

California. The use of an ethanol blend 

would require manufacturers to test 

their engines separately for the 

California and Federal testing. 

The test fuel specifications apply to 

all testing. However, we may be able to 

allow for testing with oxygenated fuel 

for production-line testing if 

manufacturers first establish the 

appropriate correction to account for the 

fuel’s effect on emissions. We request 

comment on an appropriate approach 

that would allow for production-line 

testing with oxygenated fuel. 

We are similarly proposing test fuel 

specifications for liquefied petroleum 

gas (LPG) and natural gas. Since natural 

gas has a very high methane content and 

methane is generally nonreactive in the 

atmosphere, we are proposing to apply 

the same emission standards for natural 

gas engines but not count methane 

emissions toward the total hydrocarbon 

measurement. 

E. Certification and Compliance 

Provisions for Small SI Engines and 

Equipment 

(1) Deterioration Factors 

As part of the certification process, 

manufacturers generate deterioration 

factors to demonstrate that their engines 

meet emission standards over the full 

useful life. We are proposing some 

changes from the procedures currently 

included in part 90 (see § 1054.240 and 

§ 1054.245). Much of the basis for these 

changes comes from the experience 

gained in testing many different engines 

in preparation for this proposal. First, 

we are proposing to discontinue bench 

aging of emission components. Testing 

has shown that operating and testing the 

complete engine is necessary to get 

accurate deterioration factors. Second, 

we are proposing to allow for assigned 

deterioration factors for a limited 

number of small-volume nonhandheld 

engine families. Manufacturers could 

use assigned deterioration factors for 

multiple small-volume nonhandheld 

engine families as long as the total 

production for all of the nonhandheld 

engine families for which the 

manufacturer is using assigned 

deterioration factors is estimated at the 

time of certification to be no more than 

10,000 units per year. Third, we are 

proposing to allow for assigned 

deterioration factors for all engines 

produced by small-volume 

nonhandheld engine manufacturers. 

For the HC+NOX standard, we 

propose to specify that manufacturers 

use a single deterioration factor for the 

sum of HC and NOX emissions. 

However, if manufacturers get approval 

to establish a deterioration factor on an 

engine that is tested with service 

accumulation representing less than the 

full useful life for any reason, we would 

require separate deterioration factors for 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28149 

HC and NOX emissions. The advantage 

of a combined deterioration factor is 

that it can account for an improvement 

in emission levels with aging. However, 

for engines that have service 

accumulation representing less than the 

full useful life, we believe it is not 

appropriate to extrapolate measured 

values indicating that emission levels 

for a particular pollutant will decrease. 

This is the same approach we adopted 

for recreational vehicles. 

EPA is not proposing the values for 

the assigned deterioration factors for 

small-volume nonhandheld engine 

manufacturers in this proposal. In an 

effort to develop deterioration factors 

that are appropriate for Small SI 

engines, we plan to evaluate 

certification data from Phase 3 engines 

certified early with EPA and from 

engines certified under California ARB’s 

Tier 3 standards (which begin in 2007 

and 2008). Because we are not 

proposing new exhaust standards for 

handheld engines, the assigned 

deterioration factor provisions adopted 

for Phase 2 handheld engines are being 

retained. 

Although we are not proposing new 

exhaust standards for handheld engines, 

handheld engine manufacturers noted 

that California ARB has approved 

certain durability cycles for 

accumulating hours on engines for the 

purpose of demonstrating emissions 

durability. The durability cycles 

approved by California ARB vary from 

a 30-second cycle for chainsaws to a 20- 

minute cycle for blowers, with 85 

percent of the time operated at wide 

open throttle and 15 percent of the time 

operated at idle. Engine manufacturers 

can run the durability cycles over and 

over until they accumulate the hours of 

operation equivalent to the useful life of 

the engine family. Our current 

regulations state that ‘‘service 

accumulation is to be performed in a 

manner using good judgment to ensure 

that emissions are representative of 

production engines.’’ While we are not 

proposing to change the regulatory 

language regarding service 

accumulation, we believe the California 

ARB-approved durability cycles are 

appropriate and acceptable to EPA for 

accumulating hours on handheld 

engines for demonstrating emissions 

durability. 

Manufacturers have pointed out that 

they are developing a testing protocol 

that would allow manufacturers to 

develop deterioration factors for 

catalysts through a bench-aging 

procedure. A fundamental factor in 

evaluating the appropriateness of any 

bench-aging procedure is the extent to 

which it simulates representative 

exhaust gas composition and other inuse operating parameters. We request 

comment on any appropriate 

procedures, or limitations on the use of 

such procedures, for certifying Small SI 

engines. 

(2) Delegated Final Assembly 

The current practice of attaching 

exhaust systems to engines varies. Class 

I engines are typically designed and 

produced by the engine manufacturer 

with complete emission control 

systems. Equipment manufacturers 

generally buy these engines and install 

them in their equipment, adjusting 

equipment designs if necessary to 

accommodate the mufflers and the rest 

of the exhaust system from the engine 

manufacturer. 

Engine manufacturers generally 

produce Class II engines without 

exhaust systems, relying instead on 

installation instructions to ensure that 

equipment manufacturers get mufflers 

that fall within a specified range of 

backpressures that is appropriate for a 

given engine model. Equipment 

manufacturers are free to work with 

muffler manufacturers to design 

mufflers that fit into the space available 

for a given equipment model, paying 

attention to the need to stay within the 

design specifications from the engine 

manufacturers. A similar situation 

applies for air filters, where equipment 

manufacturers in some cases work with 

component manufacturers to use air 

filters that are tailored to the individual 

equipment model while staying within 

the design specifications defined by the 

engine manufacturer. 

The existing regulations require that 

certified engines be in their certified 

configuration when they are introduced 

into commerce. We therefore need 

special provisions to address the 

possibility that engines will need to be 

produced and shipped without exhaust 

systems or air intake systems that are 

part of the certified configuration. We 

have adopted such provisions for heavyduty highway engines and for other 

nonroad engines in 40 CFR 85.1713 and 

40 CFR 1068.260, respectively. These 

provisions generally require that engine 

manufacturers establish a contractual 

arrangement with equipment 

manufacturers and take additional steps 

to ensure that engines are in their 

certified configuration before reaching 

the ultimate purchaser. 

We are proposing to apply delegatedassembly provisions for nonhandheld 

engines that are similar to those adopted 

for heavy-duty highway engines, with a 

variety of adjustments to address the 

unique situation for Small SI engines 

(see § 1054.610). This would require 

that engine manufacturers apply for 

certification in the normal way, 

identifying all the engine parts that 

make up the engine configurations 

covered by the certification. Equipment 

manufacturers would be able to work 

with muffler manufacturers to get 

mufflers with installed catalysts as 

specified in the engine manufacturer’s 

application for certification. If 

equipment manufacturers would need a 

muffler or catalyst that is not covered by 

the engine manufacturer’s certification, 

the engine manufacturer would need to 

amend the application for certification. 

This may require new testing if the data 

from the original emission-data engine 

are not appropriate for showing that the 

new configuration will meet emission 

standards, as described in § 1054.225. 

(Alternatively, the equipment 

manufacturer may take on the 

responsibility for certifying the new 

configuration, as described in 

§ 1054.612.) Engine manufacturers 

would also identify in the application 

for certification their plans to sell 

engines without emission-related 

components. We are proposing several 

provisions to ensure that engines will 

eventually be in their certified 

configuration. For example, engine 

manufacturers would establish contracts 

with affected equipment manufacturers, 

include installation instructions to make 

clear how engine assembly should be 

completed, keep records of the number 

of engines produced under these 

provisions, and obtain annual affidavits 

from affected equipment manufacturers 

to confirm that they are installing the 

proper emission-related components on 

the engines and that they have ordered 

a number of components that 

corresponds to the number of engines 

involved. 

While the delegated-assembly 

provisions are designed for direct 

shipment of engines from engine 

manufacturers to equipment 

manufacturers, we are aware that 

distributors play an important role in 

providing engines to large numbers of 

equipment manufacturers. We are 

proposing that these provisions apply to 

distributors in one of two ways. First, 

engine manufacturers may have an 

especially close working relationship 

with primary distributors. In such a 

case, the engine manufacturer would be 

able to establish a contractual 

arrangement allowing the distributor to 

act as the engine manufacturer’s agent 

for all matters related to compliance 

with the delegated-assembly provisions. 

This would allow the distributor to 

make arrangements with equipment 

manufacturers to address design needs 


sroberts on PROD1PC70 with PROPOSALS
28150 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

and perform oversight functions. We 

would hold the engine manufacturer 

directly responsible if the distributor 

failed to meet the regulatory obligations 

that would otherwise apply to the 

engine manufacturer. Second, other 

distributors may receive shipment of 

engines without exhaust systems, but 

they would need to add any 

aftertreatment components before 

sending the engines on to equipment 

manufacturers. Engine manufacturers 

would treat these distributors as 

equipment manufacturers for the 

purposes of delegated assembly. 

Equipment manufacturers buying 

engines from such a distributor would 

not have the option of separately 

obtaining mufflers from muffler 

manufacturers. In both of these 

scenarios, the engine manufacturer 

continues to be responsible for the inuse compliance of all their engines. 

Engine manufacturers would need to 

affix a label to the engine to clarify that 

it needs certain emission-related 

components before it is in its certified 

configuration. This labeling information 

is important for alerting assembly 

personnel to select mufflers with 

installed catalysts; the label would also 

give in-house inspectors or others with 

responsibility for quality control a tool 

for confirming that all engines have 

been properly assembled and installed. 

Given the large numbers of engine and 

equipment models and the 

interchangeability of mufflers with and 

without catalysts, we believe proper 

labeling will reduce the possibility that 

engines will be misbuilt. 

This labeling may be done with any 

of three approaches. First, a temporary 

label may be applied such that it would 

not be removed without a deliberate 

action on the part of the equipment 

manufacturer. We believe it is not 

difficult to create a label that will stay 

on the engine until it is deliberately 

removed. Second, manufacturers may 

add the words ‘‘delegated assembly’’ to 

the engine’s permanent emission control 

information label. Third, manufacturers 

may create a unique alphanumeric code 

to apply to the engine’s permanent 

emission control information label. This 

code would be identified in the 

application for certification. Creating a 

unique code would not provide a clear 

enough communication to equipment 

manufacturers that they are responsible 

for bringing the engine into its certified 

configuration. Engine manufacturers 

taking this approach would therefore 

need to add features to the label to make 

this clear. For example, creating labels 

with a different color or shading would 

make it easy to identify that an engine 

needs to be properly assembled before it 

is in its certified configuration. 

Any of these labeling approaches 

would properly identify the engines as 

needing emission-related components 

from the equipment manufacturer. We 

have a remaining concern that the 

approaches involving permanent labels 

do not identify that an engine is not yet 

in its certified configuration. Since there 

is no change in the label to show the 

engine’s status, we believe these 

approaches may not be as effective as 

the temporary labels in preventing 

misbuilt engines. We are also concerned 

that imported engines with 

manufacturer-specific codes will lead to 

confusion with Customs inspectors. 

With no standardized approach for 

identifying which engines do not need 

catalysts, there is a significant risk that 

engines will be held up while inspectors 

confirm their status. We request 

comment on the best way of requiring 

labeling information for these engines. 

For example, we request comment on 

adding a requirement for equipment 

manufacturers to add some identifying 

mark to the permanent label to show 

that the engine is in its certified 

configuration. We also request comment 

on replacing the provision allowing for 

a manufacturer-specific code to some 

standardized abbreviation for 

‘‘delegated assembly’’ that would allow 

for unambiguous identification of the 

engine’s status with a minimum burden 

in terms of requiring larger labels. 

In addition, engine manufacturers 

would need to perform or arrange for 

audits to verify that equipment 

manufacturers are properly assembling 

engines. Engine manufacturers may rely 

on third-party agents to perform 

auditing functions. Since the purpose of 

the audit is to verify that equipment 

manufacturers are properly assembling 

products, they may not perform audits 

on behalf of engine manufacturers. We 

are proposing to require that audits 

must involve at a minimum reviewing 

the equipment manufacturer’s 

production records and procedures, 

inspecting the equipment 

manufacturer’s production operations, 

or inspecting the final assembled 

products. Inspection of final assembled 

products may occur at any point in the 

product distribution system. For 

example, products may be inspected at 

the equipment manufacturer’s assembly 

or storage facilities, at regional 

distribution centers, or at retail 

locations. The audit must also include 

confirmation that the number of 

aftertreatment devices shipped was 

sufficient for the number of engines 

involved. We would typically expect 

engine manufacturers to perform more 

than the minimum auditing steps 

identified above. For example, 

equipment manufacturers with low 

order volumes, an unclear history of 

compliance, or other characteristics that 

would cause some concern may prompt 

us to require a more extensive audit to 

ensure effective oversight in confirming 

that engines are always built properly. 

Moreover, in the early years of this 

program, engine manufacturers should 

consider nearly all participating 

equipment manufacturers to be 

unfamiliar with the regulatory 

requirements and the mechanics of 

meeting their responsibilities and 

obligations as contracted manufacturers 

of certified engines. Engine 

manufacturers would describe in the 

application for certification their plan 

for taking steps to ensure that all 

engines will be in their certified 

configuration when installed by the 

equipment manufacturer. EPA approval 

of a manufacturer’s plan for delegated 

assembly would be handled as part of 

the overall certification process. We 

request comment on appropriate 

requirements related to specific auditing 

procedures that would be appropriate to 

address these concerns and to provide 

adequate assurance that engines are 

routinely assembled in their certified 

configuration. 

We are proposing that engine 

manufacturers annually audit twelve 

equipment manufacturers, or fewer if 

they are able to audit all participating 

equipment manufacturers on average 

once every four years. These audits 

would be divided over different 

equipment manufacturers based on the 

number of engines sold to each 

equipment manufacturer. We further 

propose that these auditing rates may be 

reduced after the first eight years, or 

after the engine manufacturer has 

audited all affected equipment 

manufacturers. This reduced auditing 

rate would be based on an expectation 

that all participating equipment 

manufacturers would be audited on 

average once every ten years. 

To facilitate auditing related to 

catalysts, we are proposing to require 

engine manufacturers to establish an 

alphanumeric designation to identify 

each unique catalyst design (including 

size, washcoat, precious metal loading, 

supplier, and any other appropriate 

factors) and instruct equipment 

manufacturers to use stamping or other 

means to permanently display this 

designation on the external surface of 

the exhaust system, making it readily 

visible as much as possible when the 

equipment is fully assembled, 

consistent with the objective of 

verifying the identity of the installed 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28151 

catalyst. This designation could be the 

same as the code applied to the 

emission control information label as 

described above. 

We are proposing that all the same 

requirements apply for separate 

shipment related to air filters if they are 

part of an engine’s certified 

configuration, except for the auditing. 

We would require auditing related to air 

filters only if engine manufacturers are 

already performing audits related to 

catalysts. We believe there is much less 

incentive or potential for problems with 

equipment manufacturers producing 

engines with noncompliant air filters so 

we believe a separate auditing 

requirement for air filters would be 

unnecessary. 

The draft regulation specifies that the 

exemption expires when the equipment 

manufacturer takes possession of the 

engine and the engine reaches the point 

of final equipment assembly. We would 

understand the point of final equipment 

assembly for purposes of delegated 

assembly for aftertreatment components 

to be the point at which the equipment 

manufacturer attaches a muffler to the 

engine. Engines observed in production 

or inventory assembled with improper 

mufflers would be considered to have 

been built contrary to the engine 

manufacturer’s installation instructions. 

Catalysts are invariably designed as part 

of the muffler, so we would understand 

that there would be no reason to install 

a different muffler once a given muffler 

has been installed using normal 

production procedures. If equipment 

manufacturers sell equipment without 

following these instructions, they would 

be considered in violation of the 

prohibited acts (i.e., selling uncertified 

engines). If there is a problem with any 

given equipment manufacturer, we 

would hold the engine manufacturer 

responsible for those noncompliant 

engines and require the engine 

manufacturer to discontinue the 

practice of delegated assembly for that 

equipment manufacturer. We request 

comment on the need to more explicitly 

identify the meaning of the point of 

final equipment assembly in the 

regulations, as described above. 

We are aware that the proposed 

approach of allowing equipment 

manufacturers to make their own 

arrangements to order mufflers results 

in a situation in which the equipment 

manufacturer must spend time and 

money to fulfill their responsibilities 

under the regulations. This introduces a 

financial incentive to install mufflers 

with inferior catalysts, or to omit the 

catalyst altogether. To address this 

concern for heavy-duty highway 

engines, we adopted a requirement for 

engine manufacturers to confirm that a 

vehicle manufacturer has ordered the 

appropriate aftertreatment devices 

before they ship an engine. Equipment 

manufacturers’ purchasing practices for 

Small SI engines, especially considering 

the order volumes, makes this approach 

impractical. We are instead proposing to 

require that engine manufacturers get 

written confirmation from each 

equipment manufacturer before an 

initial shipment of engines in a given 

model year for a given engine model. 

This confirmation would document the 

equipment manufacturer’s 

understanding that they are using the 

appropriate aftertreatment components. 

The written confirmation would be due 

within 30 days after shipping the 

engines and would be required before 

shipping any additional engines from 

that engine family to that equipment 

manufacturer. 

The shipping confirmation included 

in the rule for heavy-duty highway 

engines is a very substantial provision 

to address the fact that vehicle 

manufacturers would gain a competitive 

advantage by producing noncompliant 

products, and that engines in commerce 

would be labeled as if they were fully 

compliant even though they are not yet 

in their certified configuration. This is 

especially problematic when a muffler 

with no catalyst can easily be installed 

and can perform without indicating a 

problem. To address this concern for 

Small SI engines, we are including a 

requirement that equipment 

manufacturers include in their annual 

affidavits an accounting for the number 

of aftertreatment components they have 

ordered relative to the number of 

engines shipped without the catalysts 

that the mufflers would otherwise 

require. 

Production-line testing normally 

involves building production engines 

using normal assembly procedures. For 

engines shipped without catalysts under 

the delegated-assembly provisions, it is 

not normally possible to do this at the 

engine manufacturer’s facility, where 

such testing would normally occur. To 

address this, we are proposing to specify 

that engine manufacturers must arrange 

to get a randomly selected catalyst that 

will be used with the engine. The 

catalyst may come from any point in the 

normal distribution from the 

aftertreatment component manufacturer 

to the equipment manufacturer. The 

catalyst may not come from the engine 

manufacturer’s own inventory. Engine 

manufacturers would keep records to 

show how they randomly selected 

catalysts. 

As described above, we believe this is 

a very significant compliance issue 

since it allows manufacturers to 

introduce into commerce engines that 

are labeled as meeting current emission 

standards even though they are not in 

their certified configuration. This is 

especially true for Small SI engines 

where many high-volume products are 

handled by many different 

manufacturers such that the final 

assembly requires equipment 

manufacturers to properly install 

otherwise indistinguishable products to 

keep products in the certified 

configuration. Also, an equipment 

manufacturer may install multiple 

engine models in a single type of 

equipment, some of which may need 

catalyzed mufflers while others would 

use a conventional muffler. The 

appearance and function of such 

mufflers with and without catalysts 

would be virtually indistinguishable, 

which increases the likelihood of 

accidentally installing the wrong 

muffler. 

The provisions described above are 

intended to minimize the risks 

associated with this practice. However, 

this concern is heightened for 

companies that would use the 

delegated-assembly provisions to import 

noncompliant engines with the 

expectation that equipment 

manufacturers in the United States 

would add catalyzed mufflers as 

specified in the engine manufacturer’s 

application for certification. This raises 

two potential problems. First, this 

practice could create a loophole in 

EPA’s enforcement program that would 

allow for widespread importation of 

noncompliant engines, with the 

financial incentive for equipment 

manufacturers to complete assembly 

with noncompliant mufflers. Since all 

engines have mufflers, and since proper 

catalyst installation generally can be 

confirmed only with an emission test or 

a destructive inspection, it would be 

very difficult to find and correct any 

problems that might occur. Second, 

engine manufacturers outside the 

United States may be willing to take 

risks with noncompliant products based 

on their limited exposure to EPA 

enforcement. As described in Section 

VI.F we are considering bonding 

requirements for imported engines to 

ensure that we will be able to fully 

resolve compliance or enforcement 

issues with companies that have little or 

no presence or selling history in the 

United States. We would expect to 

specify an increased bond payment for 

importation of engines using the 

delegated-assembly provisions. 

Increasing the per-engine bond value by 

20 percent corresponds roughly with the 


sroberts on PROD1PC70 with PROPOSALS
28152 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

value of catalyzed mufflers that would 

be required. We believe this would be 

an appropriate additional bond value to 

address the concerns for noncompliance 

from imported engines. 

While this section describes the 

compliance provisions we believe are 

necessary for addressing the practice of 

delegating assembly of emission-related 

components to equipment 

manufacturers, providing a broader 

view of the context for delegated 

assembly is also appropriate for 

understanding our concern regarding 

the duplicative aspects of delegated 

assembly with other provisions in this 

rulemaking. Recent evaluation of a wide 

range of equipment models powered by 

Small SI engines has led to several 

important observations. Many 

equipment models have mufflers 

installed away from all other 

components such that they have no 

space or packaging constraints. Other 

equipment models with mufflers that 

are installed inside a cage or 

compartment generally include 

substantial space around the muffler, 

which is necessary to isolate the 

muffler’s high surface temperatures and 

radiant heat from operators and any 

heat-sensitive components. Another 

important observation was the striking 

uniformity of muffler geometries, even 

where equipment manufacturers 

obtained mufflers directly from muffler 

manufacturers. Most mufflers on Class II 

engines are cylindrical models with the 

size varying to correspond with the size 

of the engines. Other Class II engine 

models use a box-shaped muffler 

design, but these mufflers also exhibited 

little variation across models. These 

observations have fundamental 

implications for the regulatory 

provisions we are proposing for 

ensuring a smooth transition to the 

Phase 3 emission standards. 

For example, in situations that limit 

equipment manufacturers to 

standardized muffler configurations, 

they would at most need to make 

modest changes to their equipment to 

accommodate somewhat different 

muffler geometries. We have taken these 

equipment design changes into account 

with the Transition Program for 

Equipment Manufacturers described 

below. We are therefore concerned that 

the proposed provisions for delegated 

assembly and the Transition Program for 

Equipment Manufacturers may be 

duplicative in providing additional time 

and/or flexibilities for equipment 

manufacturers to redesign their 

equipment for accommodating engines 

that meet the Phase 3 standards. If this 

is the case, the proposed provisions for 

delegated assembly merely serve to 

preserve the current business 

arrangements for the different types of 

manufacturers. We request comment on 

the need for these delegated-assembly 

provisions in light of the Transition 

Program for Equipment Manufacturers. 

We also request comment on the 

appropriateness of adopting these 

delegated-assembly provisions for Class 

I engines since these engine 

manufacturers already install complete 

exhaust systems for the large majority of 

their engines. Finally, we request 

comment on the need to allow for the 

use of the more restrictive delegatedassembly provisions in § 1068.260 in the 

event that we do not finalize the 

delegated-assembly provisions 

described above. 

(3) Transition Program for Equipment 

Manufacturers 

Given the level of the proposed Phase 

3 exhaust emission standards for Class 

II engines, we believe there may be 

situations where the use of a catalyzed 

muffler could require equipment 

manufacturers to modify their 

equipment. We are therefore proposing 

a set of provisions to provide equipment 

manufacturers with reasonable lead 

time for transition to the proposed 

standards. The proposed provisions are 

similar to the program we adopted for 

nonroad diesel engines (69 FR 38958, 

June 29, 2004). 

Equipment manufacturers would not 

be obligated to use any of these 

provisions, but all equipment 

manufacturers that produce Class II 

equipment would be eligible to do so. 

We are also proposing that all entities 

under the control of a common entity 

would have to be considered together 

for the purposes of applying these 

allowances. Manufacturers would be 

eligible for the allowances described 

below only if they have primary 

responsibility for designing and 

manufacturing equipment, and if their 

manufacturing procedures include 

installing engines in the equipment. 

(a) General Provisions 

Under the proposed approach, 

beginning in the 2011 model year and 

lasting through the 2014 model year, 

each equipment manufacturer may 

install Class II engines not certified to 

the proposed Phase 3 emission 

standards in a limited number of 

equipment applications produced for 

the U.S. market (see § 1054.625). We 

refer to these here as ‘‘flex engines.’’

These flex engines would need to meet 

the Phase 2 standards. The maximum 

number of ‘‘allowances’’ each 

manufacturer could use would be based 

on 30 percent of an average year’s 

production of Class II equipment. The 

number of ‘‘allowances’’ would be 

calculated by determining the average 

annual U.S.-directed production of 

equipment using Class II engines 

produced from January 1, 2007 through 

December 31, 2009. Thirty percent of 

this average annual production level 

would be the total number of 

‘‘allowances’’ under this transition 

program over four years. Manufacturers 

could use these allowances for their 

Class II equipment over four model 

years from 2011 through 2014, with the 

usage spread over these model years as 

determined by the equipment 

manufacturer. Equipment produced 

under these provisions could use 

engines that meet the Phase 2 emission 

standards instead of the Phase 3 

standards. If an equipment 

manufacturer newly enters the Class II 

equipment market during 2007, 2008 or 

2009, the manufacturer would calculate 

its average annual production level 

based only on the years during which it 

actually produced Class II equipment. 

Equipment manufacturers newly 

entering the Class II equipment market 

after 2009 would not receive any 

allowances under the transition program 

and would need to incorporate Phase 3 

compliant engines into the Class II 

equipment beginning in 2011. 

Equipment using engines built before 

the effective date of the proposed Phase 

3 standards would not count toward an 

equipment manufacturer’s allowances. 

Equipment using engines that are 

exempted from the Phase 3 standards 

for any reason would also not count 

toward an equipment manufacturer’s 

allowances. For example, we are 

proposing that small-volume engine 

manufacturers may continue to produce 

Phase 2 engines for two model years 

after the Phase 3 standards apply. All 

engines subject to the Phase 3 standards, 

including those engines that are 

certified to FELs at higher levels than 

the standard, but for which an engine 

manufacturer uses exhaust ABT credits 

to demonstrate compliance, would 

count as Phase 3 complying engines and 

would not be included in an equipment 

manufacturer’s count of allowances. 

The choice of the allowances based on 

30 percent of one year’s production is 

based on our best estimate of the degree 

of reasonable lead time needed by the 

largest equipment manufacturers to 

modify their equipment designs as 

needed to accommodate engines and 

exhaust systems that have changed as a 

result of more stringent emission 

standards. We believe the proposed 

level of allowances responds to the need 

for lead time to accommodate the 

workload related to redesigning 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28153 

equipment models to incorporate 

catalyzed mufflers while ensuring a 

significant level of emission reductions 

in the early years of the proposed 

program. 

Equipment manufacturers may face 

similar challenges in transitioning to 

rotational-molded fuel tanks that meet 

the proposed permeation standards. We 

are therefore proposing to allow 

equipment manufacturers to use 

noncompliant rotational-molded fuel 

tanks with any equipment that is 

counted under the allowances described 

in this section which use engines 

meeting Phase 2 exhaust emission 

standards (see § 1054.627). As part of 

this expanded rotational-molded fuel 

tank allowance, we are requiring that 

equipment manufacturers first use up 

any available credits or allowances 

generated from early compliance with 

the fuel tank permeation requirements 

(see Section VI.D.4). 

A similar concern applies for 

controlling running losses. As described 

in Section VI, technologies for 

controlling running losses may involve 

a significant degree of integration 

between engine and equipment designs. 

In particular, routing a vapor line from 

the fuel tank to the engine’s intake 

system depends on engine 

modifications that would allow for this 

connection. As a result, we are 

proposing that any equipment using flex 

engines would not need to meet running 

loss standards. 

(b) Coordination Between Engine and 

Equipment Manufacturers 

We are proposing two separate paths 

for complying with administrative 

requirements related to the proposed 

transition program, depending on how 

the engine manufacturer chooses to 

make flex engines available under the 

transition program. Engine 

manufacturers choosing to use the 

delegated-assembly provisions 

described above would be enabling 

equipment manufacturers to make the 

decision whether to complete the engine 

assembly in the Phase 3 configuration or 

to use a noncatalyzed muffler such that 

the engine would meet Phase 2 

standards and would therefore need to 

be counted as a flex engine. If engine 

manufacturers do not use the delegatedassembly provisions, equipment 

manufacturers would need to depend on 

engine manufacturers to produce and 

ship flex engines that are already in a 

configuration meeting Phase 2 standards 

and labeled accordingly. Each of these 

scenarios involves a different set of 

compliance provisions, which we 

describe below. 

(i) Compliance based on engine 

manufacturers. Engine manufacturers 

will in many cases produce complete 

engines. This would be the case if the 

engine does not require a catalyst or if 

the engine manufacturer chooses to 

design their own exhaust systems and 

ship complete engine assemblies to 

equipment manufacturers. 

Under this scenario, we propose to 

require that equipment manufacturers 

request a certain number of flex engines 

from the engine manufacturer. The 

proposed regulatory provisions would 

specifically allow engine manufacturers 

to continue to build and sell Phase 2 

engines needed to meet the market 

demand created by the transition 

program for equipment manufacturers 

provided they receive the written 

assurance from the equipment 

manufacturer that such engines are 

being procured for this purpose. We are 

proposing to require that engine 

manufacturers keep copies of the 

written assurance from equipment 

manufacturers for at least five years after 

the final year in which allowances are 

available. 

Engine manufacturers are currently 

required to label their certified engines 

with a variety of information. We are 

proposing that engine manufacturers 

producing complete flex engines under 

this program identify on the engine 

label that they are flex engines. In 

addition, equipment manufacturers 

would be required to apply an 

Equipment Flexibility Label to the 

engine or piece of equipment that 

identifies the equipment as using an 

engine produced under the Phase 3 

transition program for equipment 

manufacturers. These proposed labeling 

requirements would allow EPA to easily 

identify flex engines and equipment, 

verify which equipment manufacturers 

are using these flex engines, and more 

easily monitor compliance with the 

transition provisions. Labeling of the 

equipment could also help U.S. 

Customs to quickly identify equipment 

being imported lawfully using the 

Transition Program for Equipment 

Manufacturers. 

While manufacturers would need to 

meet Phase 2 standards with their flex 

engines, they would not need to certify 

them for the current model year. We are 

proposing instead to apply the 

requirements in 40 CFR 1068.260, 

which requires that manufacturers keep 

records showing that they meet 

emission standards without requiring 

submission of an application for 

certification. We request comment on 

these requirements and whether these 

engines should be certified annually 

along with the Phase 3 engines. 

(ii) Compliance based on equipment 

manufacturers. We are proposing to set 

up a different set of compliance 

provisions for engine manufacturers that 

ship the engine separately from the 

exhaust system. Under this scenario, as 

discussed above, the engine 

manufacturers must establish a 

relationship with the equipment 

manufacturers allowing the equipment 

manufacturer to install catalysts to 

complete engine assembly for 

compliance with Phase 3 standards. 

In this case, engine manufacturers 

would design and produce their Phase 

3 engines and label them accordingly. 

The normal path for these engines 

covered by the delegated-assembly 

provisions would involve shipment of 

the engine without an exhaust system to 

the equipment manufacturer, the 

equipment manufacturer would then 

follow the engine manufacturer’s 

instructions to add the exhaust system 

including the catalyst to bring the 

engine into a certified Phase 3 

configuration. Under the proposed 

transition program, equipment 

manufacturers would choose for each of 

these engines to either follow the engine 

manufacturer’s instructions to install a 

catalyst to make it compliant with Phase 

3 standards or follow a different set of 

instructions to install a non-catalyzed 

muffler to make it compliant with Phase 

2 standards. Any such engines 

downgraded to Phase 2 standards would 

count toward the equipment 

manufacturer’s total number of 

allowances under the transition 

program. 

To make this work, engine 

manufacturers would need to take 

certain steps to ensure overall 

compliance. First, engine manufacturers 

would need to include emission data in 

the application for certification showing 

that the engine would meet Phase 2 

standards without any modification 

other than installing a non-catalyzed 

exhaust system. This may include a 

specified range of backpressures that 

equipment manufacturers would need 

to meet in procuring a non-catalyst 

muffler. If the Phase 3 engine without a 

catalyst would otherwise still be 

covered by the emission data from 

engines produced in earlier model years 

under the Phase 2 standards, 

manufacturers could rely on carryover 

emission data to make this showing. 

Second, the installation instructions we 

specify under the delegated-assembly 

provisions would need to describe the 

steps equipment manufacturers would 

need to take to make either Phase 3 

engines or Phase 2 flex engines. Third, 

for engine families that generate positive 

emission credits under the exhaust ABT 


sroberts on PROD1PC70 with PROPOSALS
28154 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

program, engine manufacturers must 

decrease the number of ABT credits 

generated by the engine family by 10 

percent. We believe the 10 percent 

decrease should provide an emission 

adjustment commensurate with the 

potential use of the equipment 

manufacturer flexibility provisions. 

Equipment manufacturers using 

allowances under these provisions 

would need to keep records that would 

allow EPA or engine manufacturers to 

confirm that equipment manufacturers 

followed appropriate procedures and 

produced an appropriate number of 

engines without catalysts. In addition, 

we are proposing to require that 

equipment manufacturers place a label 

on the engine as close as possible to the 

engine manufacturer’s emission control 

information label to identify it as a flex 

engine. This could be the full label 

described above or it could be a 

simplified label that has only the 

equipment manufacturer’s name and a 

simple statement that this is a flex 

engine. The location of this label is 

important since it effectively serves as 

an extension of the engine 

manufacturer’s label, clarifying that the 

engine meets Phase 2 standards, not the 

Phase 3 standards referenced on the 

original label. This avoids the 

problematic situation of changing or 

replacing labels, or requiring engine 

manufacturers to send different labels. 

We request comment on an approach in 

which we would require the full label 

for equipment manufacturers to be 

placed on the engine adjacent to the 

engine manufacturer’s label to prevent 

confusion and the risks associated with 

multiple labels. 

Engine manufacturers might choose to 

produce Phase 3 engines before the 2011 

model year and set up arrangements for 

separate shipment of catalyzed mufflers 

as described in Section V.E.2. We would 

expect any engine manufacturers 

producing these early Phase 3 engines to 

continue production of comparable 

engine models that meet Phase 2 

standards rather than forcing all 

equipment manufacturers to 

accommodate the new engine design 

early. We believe it would not be 

appropriate for equipment 

manufacturers to buy Phase 3 engines in 

2010 or earlier model years and 

downgrade them to meet Phase 2 

emission standards as described above. 

We are therefore proposing to allow the 

downgrading of Phase 3 engines only for 

2011 and later model years. 

Because equipment manufacturers in 

many cases depend on engine 

manufacturers to supply certified 

engines in time to produce complying 

equipment, we are also proposing a 

hardship provision for all equipment 

manufacturers (see § 1068.255). An 

equipment manufacturer would be 

required to use all of its allowances 

under the transition program described 

above before being eligible to use this 

hardship. See Section VIII.C.9 for 

further discussion of this proposed 

hardship provision for equipment 

manufacturers. 

As described in Section V.E.2, we are 

concerned that the Transition Program 

for Equipment Manufacturers and the 

provisions related to delegated assembly 

may be redundant approaches to 

address the need to design equipment 

models to accommodate upgraded 

engines. The transition program is 

intended to give equipment 

manufacturers four years to make the 

design changes needed to reach a point 

of being able to accommodate lowemission Phase 3 engines, even for the 

most challenging equipment models. If 

equipment manufacturers are able to 

continue to independently source their 

exhaust systems based on the catalyst 

specifications determined by the engine 

manufacturer, it is not clear that 

allowances for additional lead time 

would be needed. We request comment 

on the relative advantages of these two 

approaches and, more specifically, 

which approach we should adopt in the 

final rule to address equipment 

manufacturers’ needs for designing and 

producing equipment with Phase 3 

engines. We request comment on an 

alternative approach of relying on the 

delegated-assembly provisions in 

§ 10654.610 and the equipmentmanufacturer hardship provisions in 

§ 1068.255. This combination of tools 

would still allow for substantial 

flexibility in helping equipment 

manufacturers transition to Phase 3 

engines. The hardship provisions of 

§ 1068.255 were an important element 

of the successful transition to new 

emission standards for Large SI engines. 

(iii) Reporting and recordkeeping 

requirements. Equipment manufacturers 

choosing to participate in the transition 

program would be required to keep 

records of the U.S-directed production 

volumes of Class II equipment in 2007 

through 2009 broken down by 

equipment model and calendar year. 

Equipment manufacturers would also 

need to keep records of the number of 

flex engines they use under this 

program. 

We are also proposing some 

notification requirements for equipment 

manufacturers. Under this proposal, 

equipment manufacturers wishing to 

participate in the transition provisions 

would need to notify EPA by June 30, 

2010 that they plan to participate. They 

must submit information on production 

of Class II equipment over the three-year 

period from 2007 through 2009, 

calculate the number of allowances 

available, and provide basic business 

information about the company. For 

example, we would want to know the 

names of related companies operating 

under the same parent company that 

would be required to count engines 

together under this program. This early 

notification will not be a significant 

burden to the equipment manufacturer 

and will greatly enhance our ability to 

ensure compliance. Indeed, equipment 

manufacturers would need to have the 

information required in the notification 

to know how to use the allowances. 

We are proposing an ongoing 

reporting requirement for equipment 

manufacturers participating in the Phase 

3 transition program. Under this 

proposal, participating equipment 

manufacturers would be required to 

submit an annual report to EPA that 

shows its annual number of equipment 

produced with flex engines under the 

transition provisions in the previous 

year. Each report would include a 

cumulative count of the number of 

equipment produced with flex engines 

for all years. To ease the reporting 

burden on equipment manufacturers, 

EPA intends to work with the 

manufacturers to develop an electronic 

means for submitting information to 

EPA. 

(c) Additional Allowances for Smalland Medium-Sized Companies 

We believe small-volume equipment 

manufacturers would need a greater 

degree of lead time than manufacturers 

that sell large volumes of equipment. 

The small companies are less likely to 

have access to prototype engines from 

engine manufacturers and generally 

have smaller engineering departments 

for making the necessary design 

changes. Allowances representing thirty 

percent of annual U.S.-directed 

production provide larger companies 

with substantial lead time to plan their 

product development for compliance 

but smaller companies may have a 

product mix that requires extensive 

work to redesign products in a short 

amount of time. We are therefore 

proposing to specify that small-volume 

equipment manufacturers may use this 

same transition program with 

allowances totaling 200 percent of the 

average annual U.S.-directed production 

of equipment using Class II engines 

from 2007 through 2009. For purposes 

of this program, a small-volume 

equipment manufacturer would be a 

manufacturer that produces fewer than 

5,000 pieces of nonhandheld equipment 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28155 

81See, for example, 40 CFR 80.410 concerning 

provisions for foreign refiners with individual 

gasoline sulfur baselines. 

per year subject to EPA regulations in 

each of the three years from 2007 

through 2009 or meets the SBA 

definition of small business equipment 

manufacturer (i.e., generally fewer than 

500 employees for manufacturers of 

most types of equipment). These 

allowances would be spread over the 

same four-year period between 2011 and 

2014. For example, a small-volume 

equipment manufacturer could 

potentially use Phase 2 engines on all 

their Class II equipment for two years or 

they might sell half their Class II 

equipment with Phase 2 engines for four 

years assuming production stayed 

constant over the four years. 

Medium-sized equipment 

manufacturers, i.e., companies that 

produce too much equipment to be 

considered a small-volume equipment 

manufacturer but produce fewer than 

50,000 pieces of Class II equipment, 

may also face difficulties similar to that 

of small-volume equipment 

manufacturers. These companies may be 

like small-volume manufacturers if they 

have numerous product lines with 

varied approaches to installing engines 

and mufflers. Other companies may be 

more like bigger companies if they 

produce most of their equipment in a 

small number of high-volume models or 

have consistent designs related to 

engine and muffler installations. We are 

therefore proposing to create special 

provisions that would enable us to 

increase the number of transition 

allowances that are available to these 

medium-sized companies that have 

annual U.S.-directed production of 

Class II equipment of between 5,000 and 

50,000 in each of the three years from 

2007 through 2009. To obtain 

allowances greater than 30 percent of 

average annual production, a mediumsized manufacturer would need to 

notify us by January 31, 2010 if they 

believe the standard allowances based 

on 30 percent of average annual 

production of Class II equipment would 

not provide adequate lead time starting 

in the 2011 model year. Additional 

allowances could be requested only if 

the equipment manufacturer can show 

they are on track to produce a number 

of equipment models representing at 

least half of their total U.S.-directed 

production volume of Class II 

equipment in the 2011 model year 

compliant with all exhaust and 

evaporative emission standards. As part 

of their request, the equipment 

manufacturer would need to describe 

why more allowances are needed to 

accommodate anticipated changes in 

engine designs resulting from engine 

manufacturers’ compliance with 

changing exhaust emission standards. 

The equipment manufacturer would 

also request a specific number of 

additional allowances needed with 

supporting information to show why 

that many allowances are needed. We 

may approve additional allowances up 

to 70 percent of the average annual U.S.- 

directed production of Class II 

equipment from 2007 through 2009. If a 

medium-sized company were granted 

the full amount of additional 

allowances, they would have 

allowances equivalent to 100 percent of 

the average annual production volume 

of Class II equipment. 

As noted above, the determination of 

whether a company is a small- or 

medium-sized manufacturer will be 

based primarily on production data over 

the 2007 through 2009 period submitted 

to EPA during 2010. After a company’s 

status as a small- or medium-sized 

company has been established based on 

that data, EPA is proposing that 

manufactures would keep that status 

even if a company’s production volume 

grows during the next few years, such 

that the company would no longer 

qualify as a small- or medium-sized 

company. EPA believes that equipment 

manufacturers need to know at the 

beginning of the transition program (i.e., 

2011) how many allowances they will 

receive under the program. Changing a 

company’s size determination during 

the program, which could affect the 

number of allowances available, would 

make it difficult for companies to plan 

and could lead to situations where a 

company is in violation of the 

provisions based on the use of 

allowances that were previously 

allowed. Likewise, if a company is 

purchased by another company or 

merges with another company after the 

determination of small- or medium-size 

status is established in 2010, EPA is 

proposing that the combined company 

could, at its option, keep the status for 

the individual portions of the combined 

company. If the combined company 

chooses to keep the individual 

designations, the combined company 

would submit the annual reports on the 

use of allowances broken down for each 

of the previously separate companies. 

(i) Requirements for foreign 

equipment manufacturers and 

importers. Under this proposal, only 

companies that manufacture equipment 

would qualify for the relief provided 

under the Phase 3 transition provisions. 

Foreign equipment manufacturers who 

comply with the compliance related 

provisions discussed below would enjoy 

the same transition provisions as 

domestic manufacturers. Foreign 

equipment manufacturers that do not 

comply with the compliance-related 

provisions discussed below would not 

receive allowances. Importers that do 

not manufacture equipment would not 

receive any transition relief directly, but 

could import equipment with a flex 

engine if it is covered by an allowance 

or transition provision associated with a 

foreign equipment manufacturer. This 

would allow transition provisions to be 

used by foreign equipment 

manufacturers in the same way as 

domestic equipment manufacturers, at 

the option of the foreign manufacturer, 

while avoiding the potential for 

importers to inappropriately use 

allowances. For the purposes of this 

proposal, a foreign equipment 

manufacturer would include any 

equipment manufacturer that produces 

equipment outside of the United States 

that is eventually sold in the United 

States. 

All foreign equipment manufacturers 

wishing to use the transition provisions 

would have to comply with all 

requirements discussed above. Along 

with the equipment manufacturer’s 

notification described earlier, a foreign 

equipment manufacturer would have to 

comply with various compliance related 

provisions similar to those adopted for 

nonroad diesel engines (see 

§ 1054.626).81 As part of the 

notification, the foreign equipment 

manufacturer would have to: 

• Agree to provide EPA with full, 

complete and immediate access to 

conduct inspections and audits; 

• Name an agent in the District of 

Columbia for service; 

• Agree that any enforcement action 

related to these provisions would be 

governed by the Clean Air Act; 

• Submit to the substantive and 

procedural laws of the United States; 

• Agree to additional jurisdictional 

provisions; 

• Agree that the foreign equipment 

manufacturer will not seek to detain or 

to impose civil or criminal remedies 

against EPA inspectors or auditors for 

actions performed within the scope of 

EPA employment related to the 

provisions of this program; 

• Agree that the foreign equipment 

manufacturer becomes subject to the full 

operation of the administrative and 

judicial enforcement powers and 

provisions of the United States without 

limitation based on sovereign immunity; 

and 

• Submit all reports or other 

documents in the English language, or 

include an English language translation. 


sroberts on PROD1PC70 with PROPOSALS
28156 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

In addition to these proposed 

requirements, we are proposing to 

require foreign equipment 

manufacturers that participate in the 

transition program to comply with a 

bond requirement for equipment 

imported into the United States. We 

describe a bond program below that we 

believe could be an important tool for 

ensuring that foreign equipment 

manufacturers are subject to the same 

level of enforcement as domestic 

equipment manufacturers. Specifically, 

we believe a bonding requirement for 

the foreign equipment manufacturer is 

an important enforcement tool for 

ensuring that EPA has the ability to 

collect any judgments assessed against a 

foreign equipment manufacturer for 

violations of these transition provisions. 

We request comments on all aspects of 

the specific program we describe here, 

but also on alternative measures that 

would achieve the same goal. 

Under a bond program, the 

participating foreign equipment 

manufacturer would have to maintain a 

bond in the proper amount that is 

payable to satisfy judgments that result 

from U.S. administrative or judicial 

enforcement actions for conduct in 

violation of the Clean Air Act. The 

foreign equipment manufacturer would 

generally obtain a bond in the proper 

amount from a third party surety agent 

that has been listed with the Department 

of the Treasury. As discussed in 

Sections V.E.6.c and V.E.6.d, EPA is 

proposing other bond requirements as 

well. An equipment manufacturer 

required to post a bond under any of 

these provisions would be required to 

obtain only one bond of the amount 

specified for those sections. 

In addition to the foreign equipment 

manufacturer requirements discussed 

above, EPA also proposes to require 

importers of equipment with flex 

engines from a complying foreign 

equipment manufacturer to comply with 

certain provisions. EPA believes these 

importer provisions are essential to 

EPA’s ability to monitor compliance 

with the transition provisions. EPA 

proposes that the regulations would 

require each importer to notify EPA 

prior to their initial importation of 

equipment with flex engines. Importers 

would be required to submit their 

notification prior to the first calendar 

year in which they intend to import 

equipment with flex engines from a 

complying foreign equipment 

manufacturer. The importer’s 

notification would need to include the 

following information: 

• The name and address of importer 

(and any parent company); 

• The name and address of the 

manufacturers of the equipment and 

engines the importer expects to import; 

and 

• Number of units of equipment with 

flex engines the importer expects to 

import for each year broken down by 

equipment manufacturer. 

In addition, EPA is proposing that any 

importer electing to import to the 

United States equipment with flex 

engines from a complying foreign 

equipment manufacturer would have to 

submit annual reports to EPA. The 

annual report would include the 

number of units of equipment with flex 

engines the importer actually imported 

to the United States in the previous 

calendar year; and identify the 

equipment manufacturers and engine 

manufacturers whose equipment and 

engines were imported. 

(4) Equipment Manufacturer 

Recertification 

Generally, it has been engine 

manufacturers who certify with EPA for 

exhaust emissions because the 

standards are engine-based. However, 

because the Phase 3 nonhandheld 

standards under consideration are 

expected to result in the use of catalysts, 

a number of equipment manufacturers, 

especially those that make low-volume 

models, believe it may be necessary to 

produce their own unique engine/ 

muffler designs, but using the same 

catalyst substrate already used in a 

muffler certified by the engine 

manufacturer. In this situation, the 

engine would not be covered by the 

engine manufacturer’s certificate, as the 

engine/muffler design is not within the 

specifications for the certified engine. 

The equipment manufacturer is 

therefore producing a new distinct 

engine which is not certified and needs 

to be certified with EPA. In order to 

allow the possibility of an equipment 

manufacturer certifying an engine/ 

muffler design with EPA, we are 

proposing a simplified engine 

certification process for nonhandheld 

equipment manufacturers (see 

§ 1054.612). Under this simplified 

certification process, the nonhandheld 

equipment manufacturer would need to 

demonstrate that it is using the same 

catalyst substrate as the approved 

engine manufacturer’s engine family, 

provide information on the differences 

between their engine/exhaust system 

and the engine/exhaust system certified 

by the engine manufacturer, and explain 

why the emissions deterioration data 

generated by the engine manufacturer 

would be representative for the 

equipment manufacturer’s 

configuration. The equipment 

manufacturer would need to perform 

low-hour emission testing on an engine 

equipped with their modified exhaust 

system and demonstrate that it meets 

the emission standards after applying 

the engine manufacturer’s deterioration 

factors for the certified engine family. 

We would not require production-line 

testing for these engines. The equipment 

manufacturer would be responsible to 

meet all of the other requirements of an 

engine manufacturer under the 

regulations, including labeling, 

warranty, defect reporting, payment of 

certification fees, and other things. EPA 

requests comments on the usefulness of 

such a provision. EPA also requests 

comments on whether such a simplified 

certification provision should expire 

after a period of time, for example, after 

five years. If the provision were to 

expire, an equipment manufacturer 

could continue to certify, but they 

would have to follow the general 

certification regulations at that point. 

(5) Special Provisions Related to 

Altitude 

As described in Section V.C.1, we 

allow manufacturers of handheld and 

nonhandheld engines to comply with 

emission standards at high altitudes 

using an altitude kit. We are proposing 

to keep the provisions that already 

apply in part 90 related to descriptions 

of these altitude kits in the application 

for certification. This would include a 

description of how engines comply with 

emission standards at varying 

atmospheric pressures, a description of 

the altitude kits, and the associated part 

numbers. The manufacturer would also 

identify the altitude range for which it 

expects proper engine performance and 

emission control with and without the 

altitude kit, state that engines will 

comply with applicable emission 

standards throughout the useful life 

with the altitude kit installed according 

to instructions, and include any 

supporting information. Finally, 

manufacturers would need to describe a 

plan for making information and parts 

available such that altitude kits would 

reasonably be expected to be widely 

used in high-altitude areas. For 

nonhandheld engines, this would 

involve all counties with elevations 

substantially above 4,000 feet (see 

Appendix III to part 1054). This 

includes all U.S. counties where 75 

percent of the land mass and 75 percent 

of the population are above 4,000 feet 

(see 45 FR 5988, January 24, 1980 and 

45 FR 14079, March 4, 1980). For 

handheld engines, this would involve 

all areas at an elevation at or above that 

which they identify in their application 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28157 

for certification for needing an altitude 

kit to meet emission standards. 

We are also proposing to require 

information related to altitude kits to be 

on the emission control information 

label, unless space limitations prevent 

it. We believe it is important for 

operators to know that engines may 

need to be modified to run properly at 

high elevations. 

We request comment on all aspects of 

this approach for compliance at highaltitude conditions. (See §§ 1054.115, 

1054.135, 1054.205, and 1054.655.) 

(6) Special Provisions for Compliance 

Assurance 

EPA’s experiences in recent years 

have highlighted the need for more 

effective tools for preventing the 

introduction into commerce of 

noncompliant engines. These include 

noncompliant engines sold without 

engine labels or with counterfeit engine 

labels. We are proposing the special 

provisions in the following sections to 

help us address these problems. 

(a) Importation Form 

Importation of engines is regulated 

both by EPA and U.S. Customs. The 

current regulations for U.S. Customs 

specify that anyone importing a nonroad 

engine (or equipment containing a 

nonroad engine) must complete a 

declaration form before importation. 

EPA has created Declaration Form 

3520–21 for this purpose. Customs 

requires this in many cases, but there 

are times when they allow engines to be 

imported without the proper form. It 

would be an important advantage for 

EPA’s own compliance efforts to be able 

to enforce this requirement. We are 

therefore proposing to modify part 90 to 

mirror the existing Customs requirement 

(and the EPA requirement in § 1068.301) 

for importers to complete and retain the 

declaration form before importing 

engines (see § 90.601). This would 

facilitate a more straightforward 

processing of cases in which 

noncompliant products are brought to a 

U.S. port for importation because 

currently no requirement exists for 

measuring emissions or otherwise 

proving that engines are noncompliant 

at the port facility. Since this is already 

a federal requirement, we are proposing 

to make this effective immediately with 

the final rule. 

(b) Assurance of Warranty Coverage 

Manufacturers of Small SI engines 

subject to the standards are required to 

provide an emission-related warranty so 

owners are able to have repairs done at 

no expense for emission-related defects 

during an initial warranty period. 

Established companies are able to do 

this with a network of authorized repair 

facilities that can access replacement 

parts and properly correct any defects. 

In contrast, we are aware that some 

manufacturers are selling certified 

engines in the United States without 

any such network for processing 

warranty claims. As such, owners who 

find that their engines have an 

emission-related defect are unable to 

properly file a warranty claim or get 

repairs that should be covered by the 

warranty. In effect, this allows 

companies to certify their engines and 

agree to provide warranty coverage 

without ever paying for legitimate 

repairs that should be covered by the 

warranty. We are therefore proposing to 

require that manufacturers demonstrate 

several things before we will approve 

certification for their engines (see 

§ 90.1103 and § 1054.120). The 

following provisions would apply to 

manufacturers who certify engines, and 

would include importers who certify 

engines. First, we are proposing to 

require manufacturers to provide and 

monitor a toll-free telephone number 

and an e-mail address for owners to 

receive information about how to make 

a warranty claim and how to make 

arrangements for authorized repairs. 

Second, we are proposing to require 

manufacturers to provide a source of 

replacement parts within the United 

States. For imported parts, this would 

require at least one distributor within 

the United States. 

Finally, we are proposing to require 

manufacturers to have a network of 

authorized repair facilities or to take one 

of several alternate approaches to ensure 

that owners will be able to get free 

repair work done under warranty. If 

warranty-related repairs are limited to 

authorized repair facilities, we are 

proposing to require that manufacturers 

have enough such facilities that owners 

do not have to go more than 100 miles 

for repairs. An exception would be 

made for remote areas where we would 

allow for approval of greater travel 

distances for getting repairs as long as 

the longer travel distance applies to no 

more than 10 percent of affected 

owners. For small businesses, start-up 

companies, or importers, it may not be 

realistic to maintain a national repair 

network. We are proposing a variety of 

alternative methods for such companies 

to meet their warranty obligations. 

Manufacturers would be able to meet 

warranty obligations by informing 

owners that free shipping to and from 

an authorized service center is available, 

a service technician will be provided to 

come to the owner to make the warranty 

repair, or repair costs at a local 

nonauthorized service center will be 

reimbursed. 

We believe these proposed 

requirements are both necessary and 

effective for ensuring proper warranty 

coverage for all owners. At the same 

time, we are proposing a flexible 

approach that allows companies to 

choose from widely varying alternatives 

to provide warranty service. We 

therefore believe these proposed 

requirements are readily achievable for 

any company. We are therefore 

proposing to implement these 

requirements starting with the 2009 

model year. This should allow time for 

the administrative steps necessary to 

arrange for any of the allowable 

compliance options described above. 

We request comment on these 

provisions to ensure proper warranty 

coverage. We also request comment on 

alternative means of demonstrating 

effective warranty coverage comparable 

to that described above. 

(c) Bond Requirements Related to 

Enforcement and Compliance Assurance 

Certification initially involves a 

variety of requirements to demonstrate 

that engines and equipment are 

designed to meet applicable emission 

standards. After certification is 

complete, however, several important 

obligations apply to the certifying 

manufacturer or importer. For example, 

we require ongoing testing of 

production engines, warranty coverage 

for emission-related defects, reporting of 

recurring defects, and payment of 

penalties if there is a violation. For 

companies operating within the United 

States, we are generally able to take 

steps to communicate clearly and insist 

on compliance with applicable 

regulations. For companies without staff 

or assets in the United States, this is not 

the case. Accordingly, we have limited 

ability to enforce these requirements or 

recover any appropriate penalties, 

which increases the risk of 

environmental problems as well as 

problems for owners. This creates the 

potential for a company to gain a 

competitive advantage if they do not 

operate in the United States by avoiding 

some of the costs of complying with 

EPA regulations. 

We request comment on a 

requirement for importers of certified 

engines and equipment to post a bond 

to cover any potential compliance or 

enforcement actions under the Clean Air 

Act. Importers would be exempt from 

the bond requirement if they were able 

to sufficiently demonstrate an assurance 

that they would meet any complianceor enforcement-related obligations. We 


sroberts on PROD1PC70 with PROPOSALS
28158 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

would consider adopting provisions to 

waive the bonding requirement based 

on a variety of specific criteria. For 

example, importers might show that 

they have physical assets in the United 

States with a value equal to the retail 

value of the engines that they will 

import during the model year (or 

equipment that they will import during 

the model year if they import 

equipment). Also, we may be able to 

establish an objective measure for a 

company to demonstrate long-term 

compliance with applicable regulations. 

Another alternative might involve a 

showing that an importer has been 

certified under certain industry 

standards for production quality and 

regulatory compliance. Finally, we may 

be able to rely on a company’s 

commitment to periodically perform 

voluntary in-use testing in the United 

States to show that engines comply with 

emission standards. In addition to these 

specific criteria, we would consider 

adopting a provision that allows an 

individual importer to request a waiver 

from bonding requirements based on 

that importer’s particular circumstances. 

If we adopt a bonding requirement, we 

would expect to apply that starting with 

the 2009 model year. 

We would expect the per-engine bond 

amount to be $25 for handheld engines 

and Class I engines. Class II engines 

cover a much wider range of 

applications, so we further differentiate 

the bond for those engines. The 

proposed per-engine bond amounts for 

Class II engines would be $50 for 

engines between 225 and 740 cc, $100 

for engines between 740 and 1,000 cc, 

and $200 for engines above 1,000 cc. 

These values are generally scaled to be 

approximately 10 to 15 percent of the 

retail value. In the case of handheld 

engines, this is based on the retail value 

of equipment with installed engines, 

since these products are generally 

traded that way. Class II engines are 

very often sold as loose engines to 

equipment manufacturers, so the 

corresponding per-engine bond values 

are based on the retail value of the 

engine alone. This approach is similar 

to the bond requirements that apply for 

nonroad diesel engines (see § 1039.626). 

The total bond amount would be 

based on the value of imported products 

over a one-year period. If an importer’s 

bond would be used to satisfy a 

judgment, the importer would then be 

required to increase the amount of the 

bond within 90 days of the date the 

bond is used to cover the amount that 

was used. Also, we would require the 

bond to remain in place for five years 

after the importer no longer imports 

Small SI engines. 

(d) Bond Requirements Related to 

Recall 

Recall is another potential compliance 

obligation. The Clean Air Act specifies 

that EPA must require the manufacturer 

to conduct a recall if EPA determines 

that a substantial number of engines do 

not conform to the regulations. We have 

experience with companies that have 

faced compliance-related problems 

where it was clear that they did not 

have the resources to conduct a recall if 

that were necessary. Such companies 

benefit from certification without 

bearing the full range of associated 

obligations. We believe it is appropriate 

again to add a requirement to post a 

bond to ensure that a company can meet 

their recall obligations. The concern for 

being able to meet these obligations 

applies similarly to domestic and 

foreign manufacturers. The biggest 

indicator of a manufacturer’s ability to 

make recall repairs relates to the 

presence of repair facilities in the 

United States. We are therefore 

proposing a bond requirement starting 

with the 2009 model year for all 

manufacturers (including importers) 

that do not have assembly facilities in 

the United States that are available for 

processing recall repairs or a repair 

network in the United States capable of 

processing recall repairs (see § 90.1007 

and § 1054.685). Note that a single bond 

payment would be required for 

companies that must post bond for 

compliance-related obligations, as 

described above, in addition to the 

recall-related obligations. Such a repair 

network would need to involve at least 

100 authorized repair facilities in the 

United States or at least one such 

facility for each 5,000 engines sold in 

the United States, whichever is less. 

Companies not meeting these criteria 

would need to post a bond as described 

above for compliance assurance. We 

would allow these companies to arrange 

for any applicable recall repairs to be 

done at independent facilities. 

(e) Restrictions Related to Naming 

Model Years 

New exhaust emission standards 

apply based on the date of engine 

assembly. We similarly require that 

equipment manufacturers use engines 

meeting emission standards in the same 

model year as equipment based on the 

equipment assembly date. For example, 

a manufacturer of a 2007 model year 

piece of equipment must generally use 

a 2007 model year engine. However, we 

allow equipment manufacturers to 

deplete their normal inventories of 

engines from the previous model year as 

long as there is no stockpiling of those 

earlier engines. We also note that this 

restriction does not apply if emission 

standards are unchanged for the current 

model year. We have found many 

instances where companies will import 

new engines usually installed in 

equipment and claim that the engine 

was built before emission standards 

took effect, even if the start date for 

emission standards was several years 

earlier. We believe many of these 

engines were in fact built later than the 

named model year, but it is difficult to 

prove the date of manufacture, which 

then makes it difficult to properly 

enforce these requirements. Now that 

emission standards have been in place 

for Small SI engines for almost ten 

years, we believe it is appropriate to 

implement a provision that prevents 

new engines manufactured several years 

previously to be imported when more 

recent emission standards have been 

adopted. This would prevent companies 

from importing noncompliant products 

by inappropriately declaring a 

manufacture date that precedes the 

point at which the current standards 

started to apply. It would also put a time 

limit on our existing provisions that 

allow for normal inventory management 

to use the supply of engines from 

previous model years when there has 

been a change in standards. 

Starting January 1, 2009, we are 

proposing to specify that engines and 

equipment will be treated as having a 

model year at most one year earlier than 

the calendar year in which the 

importation occurs when there is a 

change in emission standards (see 

§ 90.616 and § 1054.695). For example, 

for new standards starting in the 2011 

model year, beginning January 1, 2012, 

all imported new products would be 

considered 2011 or later model year 

engines and would need to comply with 

new 2011 standards, regardless of the 

actual build date of the engines or 

equipment. (Engines or equipment 

would be considered new unless the 

importer demonstrates that the engine 

or equipment had already been placed 

into service, as described below.) This 

would allow a minimum of twelve 

months for manufactured engines to be 

shipped to equipment manufacturers, 

installed in equipment and imported 

into the United States. This time 

interval would be substantially longer 

for most engines because the engine 

manufacturer’s model year typically 

ends well before the end of the calendar 

year. Also, engines produced earlier in 

the model year would have that much 

more time to be shipped, installed, and 

imported. 

Manufacturers have expressed 

concern that the one-year limitation on 

imported products may be too short 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28159 

since there are often delays related to 

shipping, inventory, and perhaps most 

significantly, unpredictable fluctuations 

in actual sales volumes. We do not 

believe it is appropriate to maintain 

long-term inventories of these products 

outside the United States for eventual 

importation when it is clear several 

years ahead that the new standards are 

scheduled to take effect. Companies 

may be able to import these products 

shortly after manufacturing and keep 

their inventories in a U.S. distribution 

network to avoid the situation of being 

unable to sell these products. We 

request comment on the need to extend 

the one-year limit to account for the 

business dynamics. We also request 

comment on any narrower provisions 

that would allow for exceptions in 

certain circumstances. For example, 

should we consider allowing an 

additional year for products if 

manufacturers let us know ahead of 

time that they have certain numbers of 

engines or equipment that will not be 

imported in time, and they can 

demonstrate that they are not 

stockpiling or circumventing regulatory 

requirements? 

In years where the standards do not 

change, this proposed provision would 

have no practical effect because, for 

example, a 2004 model year engine 

meets the 2006 model year standards. 

We would treat such an engine as 

compliant based on its 2004 emission 

label, any emission credit calculations 

for the 2004 model year, and so on. 

These engines could therefore be 

imported anytime until the end of the 

calendar year in which new standards 

take effect. Also, because the changes do 

not affect importation until there is a 

change in the standards, we are 

proposing to implement these 

provisions starting with the Phase 3 

standards. 

We do not intend for these proposed 

provisions to delay the introduction of 

emission standards by one year. It is 

still a violation to produce an engine in 

the 2011 calendar year and call it a 2010 

model year engine to avoid being 

subject to 2011 standards. 

Importation of equipment that is not 

new is handled differently. These 

products would not be required to be 

upgraded to meet new emission 

standards that started to apply after the 

engine and equipment were 

manufactured. However, to avoid the 

situation where companies simply 

declare that they are importing used 

equipment to avoid new standards, we 

are proposing to require that they 

provide clear and convincing evidence 

that such engines have been placed into 

service prior to importation. Such 

evidence would generally include 

documentary evidence of purchase and 

maintenance history and visible wear 

that is consistent with the reported 

manufacture date. Importing products 

for resale or importing more than one 

engine or piece of equipment at a time 

would generally call for closer 

evaluation to determine that this degree 

of evidence has been met. 

(f) Import-Specific Information at 

Certification 

We are proposing to require 

additional information to improve our 

ability to oversee compliance related to 

imported engines (see § 90.107 and 

§ 1054.205). In the application for 

certification, we are proposing to 

require the following additional 

information: (1) The port or ports at 

which the manufacturer intends to 

import the engines, (2) the names and 

addresses of the agents the manufacturer 

has authorized to import the engines, 

and (3) the location of the test facilities 

in the United States where the 

manufacturer would test the engines if 

we select them for testing under a 

selective enforcement audit. This 

information should be readily available 

so we propose to require it for the 2009 

model year. The current regulations in 

part 90 do not include these specific 

requirements; however, we do specify 

already that we may select imported 

engines at a port of entry. In such a case, 

we would generally direct the 

manufacturer to do testing at a facility 

in the United States. The proposed 

provision allows the manufacturers to 

make these arrangements ahead of time 

rather than relying on EPA’s selection of 

a test lab. The current regulations also 

state clearly in § 90.119 that EPA may 

conduct testing at any facility to 

determine whether engines meet 

emission standards. 

(g) Counterfeit Emission Labels 

We have observed that some 

importers attempt to import 

noncompliant products by creating an 

emission control information label that 

is an imitation of a valid label from 

another company. We are not proposing 

to require that certifying manufacturers 

take steps to prevent this, but we are 

proposing to include a provision that 

specifically allows manufacturers to add 

appropriate features to prevent 

counterfeit labels. This may include the 

engine’s serial number, a hologram, or 

some other unique identifying feature. 

We propose to apply this provision 

immediately upon completion of the 

final rule since it is an allowance and 

not a requirement (see § 1054.135). 

(h) Partially Complete Engines 

As described in Section XI, we are 

proposing to clarify engine 

manufacturers’ responsibilities for 

certification with respect to partially 

complete engines. While this is 

intended to establish a path for 

secondary engine manufacturers to get 

their engines from the original engine 

manufacturer, we are aware that this 

will also prevent manufacturers from 

selling partially complete engines as a 

strategy to circumvent certification 

requirements. If long blocks or engines 

without fuel systems are introduced into 

U.S. commerce, either the original 

manufacturer or the company 

completing engine assembly would 

need to hold a certificate for that engine. 

(7) Using Certified Small SI Engines in 

Marine Applications 

Manufacturers have described 

situations in which Small SI engines are 

used in marine applications. As 

described in Section III.E.5, we are 

proposing to allow certified Small SI 

engines to be used in outboard or 

personal watercraft applications without 

certifying to the Marine SI emission 

standards in part 1045. We request 

comment on the appropriateness of this 

provision. In particular, we request 

comment on the extent to which the 

proposed provisions will address the 

unique situations that apply for swamp 

boats and other unusual configurations. 

(8) Other Provisions 

We are also proposing a variety of 

changes in the provisions that make up 

the certification and compliance 

program. Most of these changes serve 

primarily to align with the regulations 

we have started to apply to other types 

of engines. 

The proposed warranty provisions are 

based on the requirements that already 

apply under 40 CFR part 90. We are 

proposing to add an administrative 

requirement to describe the provisions 

of the emission-related warranty in the 

owners manual. We expect that many 

manufacturers already do this but 

believe it is appropriate to require this 

as a routine practice. (See § 1054.120.) 

Testing new engines requires a period of 

engine operation to stabilize emission 

levels. The regulations specify two 

separate figures for break-in periods for 

purposes of certification testing. First, 

engines are generally operated long 

enough to stabilize emission levels. 

Second, we establish a limit on how 

much an engine may operate and still be 

considered a ‘‘low-hour’’ engine. The 

results of testing with the low-hour 

engine are compared with a deteriorated 


sroberts on PROD1PC70 with PROPOSALS
28160 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

value after some degree of service 

accumulation to establish a 

deterioration factor. For Marine SI 

engines, we are proposing that the 

engine can be presumed to have 

stabilized emission levels after 12 hours 

of engine operation, with a provision 

allowing approval for more time if 

needed, and we generally require that 

low-hour test engines have no more 

than 30 hours of engine operation. 

However, given the shorter useful life 

for many Small SI engines, this would 

not make for a meaningful process for 

establishing deterioration factors. For 

example, emission levels in Small SI 

engines may not stabilize before 

deterioration begins to affect emission 

levels, which would prevent the engine 

from ever truly having stabilized 

emission levels. Also, the low-hour 

emission test should occur early enough 

to adequately represent the deterioration 

over the engine’s lifetime. 

We are proposing that Small SI 

engines with a useful life above 300 

hours can be presumed stable after 12 

hours with low-hour testing generally 

occurring after no more than 24 hours 

of engine operation. For Small SI 

engines with useful life below 300 

hours, we are proposing a combination 

of provisions to address this concern. 

First, we are proposing to allow 

manufacturers to establish a 

stabilization period that is less than 12 

hours without showing that emission 

levels have fully stabilized (see 

§ 1054.501). Second, we propose to 

specify that low-hour testing must 

generally occur after no more than 15 

hours of engine operation (see 

§ 1054.801). This allows some 

substantial time for break-in, 

stabilization, and running multiple 

tests, without approaching a significant 

fraction of the useful life. Third, we are 

proposing that manufacturers 

consistently test low-hour productionline engines (and emission-data engines 

in the case of carryover deterioration 

factors for certification) using the same 

degree of service accumulation to avoid 

inaccurate application of deterioration 

factors (see § 1054.301). 

As described in Section VII.C, we are 

proposing to clarify the maintenance 

that manufacturers may perform during 

service accumulation as part of the 

certification process. The general 

approach is to allow any amount of 

maintenance that is not emissionrelated, but to allow emission-related 

maintenance only if it is a routine 

practice with in-use engines. In most of 

our emission control programs we 

specify that 80 percent of in-use engines 

should undergo a particular 

maintenance step before manufacturers 

can do that maintenance during service 

accumulation for certification testing. 

We are aware that Small SI engines are 

predominantly operated by homeowners 

with widely varying practices in 

servicing their lawn and garden 

equipment. As such, achieving a rate of 

80 percent may be possible only for the 

most obvious maintenance steps. We are 

therefore proposing a more 

accommodating approach for Small SI 

engines. In particular, we are proposing 

to allow manufacturers to perform a 

maintenance step during certification 

based on information showing that 60 to 

80 percent of in-use engines get the 

specified maintenance at the 

recommended interval. We would 

approve the use of such maintenance 

based on the relative effect on 

performance and emissions. For 

example, we may allow scheduled fuelinjector replacement if survey data show 

this is done at the recommended 

interval for 65 percent of engines and 

performance degradation is shown to be 

roughly proportional to the degradation 

in emission control for engines that do 

not have their fuel injectors replaced. 

One maintenance step of particular 

interest will be replacement of air 

filters. In larger spark-ignition engines, 

we don’t treat replacement of air filters 

as critical emission-related 

maintenance, largely because those 

engines have feedback controls to 

compensate for changes in varying 

pressure drop across the air filter. 

However, for Small SI engines varying 

air flow through the air filter has a 

direct effect on the engine’s air-fuel 

ratio, which in turn directly affects the 

engine’s emission rates for each of the 

regulated pollutants. Service 

accumulation generally takes place in 

laboratory conditions with far less 

debris, dust, or other ambient particles 

that would cause filter loading, so filter 

changes should be unnecessary to 

address this conventional concern. We 

are concerned that the greater affect is 

from fuel and oil that may deposit on 

the back side of the filter, especially 

from crankcase ventilation into the 

intake. If filters are changed before an 

emission test, this effect will go 

undetected. If filter changes are 

disallowed before emission testing, 

manufacturers would need to design 

their intake systems to prevent internal 

filter contamination. We request 

comment on the need for replacing air 

filters, the effect on emission levels, and 

on the extent of change that would be 

needed to prevent filter contamination 

from recirculating crankcase gases. We 

also request comment on the extent to 

which air filters are changed with in-use 

engines. While this is clearly done with 

many engines, it is not clear that the 

experience is common enough that we 

would consider it to be routine, and 

therefore appropriate for certification 

engines. Since the cost of equipment, 

the types of jobs performed, and the 

operating lifetime varies dramatically 

for Class I and Class II engines, 

commenters should distinguish between 

in-use maintenance that is done by 

engine class as much as possible. We 

may, for example, conclude that owners 

of riding mowers and other Class II 

equipment routinely replace air filters to 

keep their equipment operating 

properly, while owners of walk-behind 

mowers and other Class I equipment are 

more likely to treat their equipment as 

a disposable product and therefore not 

replace the air filter. 

We are proposing to define criteria for 

establishing engine families that are 

very similar to what is currently 

specified in 40 CFR part 90. We are 

proposing to require that engines with 

turbochargers be in a different family 

than naturally aspirated engines since 

that would be likely to substantially 

change the engine’s emission 

characteristics. Very few if any Small SI 

engines are turbocharged today so this 

change will not be disruptive. We are 

also specifying that engines must have 

the same number, arrangement, and 

approximate bore diameter of cylinders. 

This will help us avoid the situation 

where manufacturers argue that engines 

with substantially different engine 

blocks should be in the same engine 

family. We would expect to implement 

this provision consistent with the 

approach adopted by California ARB in 

which they limit engine families to 

include no more than 15 percent 

variation in total engine displacement. 

Similarly, the current regulations in part 

90 do not provide a clear way of 

distinguishing engine families by 

cylinder dimensions (bore and stroke) 

so we are also proposing to change part 

90 to limit the variation in displacement 

within an engine family to 15 percent. 

(See § 1054.230 and § 90.116.) 

The test procedures for Small SI 

engines are designed for engines 

operating in constant-speed 

applications. This covers the large 

majority of affected equipment; 

however, we are aware that engines 

installed in some types of equipment, 

such as small utility vehicles or go carts, 

are not governed to operate only at a 

single rated speed. These engines would 

be certified based on their emission 

control over the constant-speed duty 

cycle even though they do not 

experience constant-speed operation in 

use. We are not prepared to propose a 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28161 

new duty cycle for these engines but we 

are proposing to require engine 

manufacturers to explain how their 

emission control strategy is not a defeat 

device in the application for 

certification. For example, if engines 

will routinely experience in-use 

operation that differs from the specified 

duty cycle for certification, the 

manufacturer should describe how the 

fuel-metering system responds to 

varying speeds and loads not 

represented by the duty cycle. We are 

also proposing to require that engine 

distributors and equipment 

manufacturers that replace installed 

governors must have a reasonable 

technical basis for believing that the 

effectiveness of the modified engine’s 

emission controls over the expected 

range of in-use operation will be similar 

to that measured over the specified duty 

cycle (see § 1054.650). This may require 

test data. While this does not require a 

new certificate of conformity, it may 

require testing to confirm that the 

engine modification should not be 

considered tampering. In addition, we 

would require that engine distributors 

and equipment manufacturers notify the 

engine manufacturer before modifying 

the engine, follow any instructions from 

the engine manufacturer related to the 

emission control system, and avoid 

making any other changes to the engine 

that would remove it from its certified 

configuration. We request comment on 

these provisions. 

F. Small Business Provisions 

(1) Small Business Advocacy Review 

Panel 

On August 17, 2006, we convened a 

Small Business Advocacy Review Panel 

(SBAR Panel or the Panel) under section 

609(b) of the Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA). The 

purpose of the Panel was to collect the 

advice and recommendations of 

representatives of small entities that 

could be affected by this proposed rule 

and to prepare a report containing the 

Panel’s recommendations for small 

entity flexibilities based on those 

comments, as well as on the Panel’s 

findings and recommendations 

regarding the elements of the Initial 

Regulatory Flexibility Analysis (IRFA) 

under section 603 of the RFA. Those 

elements of an IRFA are: 

• A description of, and where 

feasible, an estimate of the number of 

small entities to which the proposed 

rule will apply; 

• A description of projected 

reporting, recordkeeping, and other 

compliance requirements of the 

proposed rule, including an estimate of 

the classes of small entities that will be 

subject to the requirements and the type 

of professional skills necessary for 

preparation of the report or record; 

• An identification, to the extent 

practicable, of all relevant Federal rules 

that may duplicate, overlap, or conflict 

with the proposed rule; and 

• A description of any significant 

alternative to the proposed rule that 

accomplishes the stated objectives of 

applicable statutes and that minimizes 

any significant economic impact of the 

proposed rule on small entities. 

The report of the Panel has been 

placed in the rulemaking record for this 

proposal. 

In addition to EPA’s Director of the 

Office of Regulatory Management and 

Information who acted as chairperson, 

the Panel consisted of the Director of the 

EPA’s Assessment and Standards 

Division of the Office of Transportation 

and Air Quality, the Administrator of 

the Office of Management and Budget’s 

Office of Information and Regulatory 

Affairs, and the Chief Counsel for 

Advocacy of the Small Business 

Administration. 

Using definitions provided by the 

Small Business Administration (SBA), 

companies that manufacture internalcombustion engines and that employ 

fewer than 1,000 people are considered 

small businesses for the SBAR Panel. 

Companies that manufacture equipment 

and that employ fewer than 500 people, 

or fewer than 750 people for 

manufacturers of construction 

equipment, or fewer than 1,000 people 

for manufacturers of generators, are 

considered small businesses for the 

SBAR Panel. Based on this information, 

we asked 25 companies that met the 

SBA small business thresholds to serve 

as small entity representatives for the 

duration of the Panel process. Of these 

25 companies, 14 of them represented a 

cross-section of Small SI engine 

manufacturers, equipment 

manufacturers, and fuel system 

component manufacturers. (The rest of 

the companies were involved in the 

Marine SI market.) 

With input from small entity 

representatives, the Panel drafted a 

report providing findings and 

recommendations to us on how to 

reduce the potential burden on small 

businesses that may occur as a result of 

this proposed rule. The Panel report is 

included in the rulemaking record for 

this proposal. In light of the Panel 

report, and where appropriate, we have 

identified provisions anticipated for the 

proposed rule. The proposed flexibility 

options, based on the recommendations 

of the Panel, are described below. 

(2) Proposed Burden Reduction 

Approaches for Small-Volume 

Nonhandheld Engine Manufacturers 

We are proposing several provisions 

for small business nonhandheld engine 

manufacturers. The purpose of these 

provisions is to reduce the burden on 

companies for which fixed costs cannot 

be distributed over a large number of 

engines. We request comment on the 

appropriateness of these provisions 

which are described in detail below. 

Under EPA’s current Phase 2 

regulations, EPA provided a number of 

provisions for small-volume engine 

manufacturers. For the Phase 2 

regulations, the criteria for determining 

if a company was a ‘‘small-volume 

engine manufacturer’’ was based on 

whether the company projected at time 

of certification to have production of no 

more than 10,000 nonhandheld engines 

per year (excluding engines sold in 

California that are subject to the 

California ARB standards). Based on 

past experience, EPA believes that 

determining the applicability of the 

provisions based on number of 

employees, as compared to volume of 

products, can be more problematic 

given the nature of the workforce in 

terms of full-time, part-time, contract, 

overseas versus domestic, and parent 

companies. EPA believes it can avoid 

these potential complications and still 

provide relief to nearly all small 

businesses by continuing to use the 

annual sales criteria for determining 

which entities qualify as a small volume 

engine manufacturer under the Phase 3 

program. For these reasons, EPA is 

proposing to retain the current 

production-based criteria for 

determining who is a small-volume 

engine manufacturer and, as a result, 

eligible for the Phase 3 flexibilities 

described below (see § 1054.801). 

Based on confidential sales data 

provided to EPA by engine 

manufacturers, the 10,000 unit cut-off 

for engine manufacturers would include 

all of the small business engine 

manufacturers currently identified using 

SBA’s employee-based definition. To 

ensure all small businesses have access 

to the flexibilities described below, EPA 

is also proposing to allow engine 

manufacturers which exceed the 

production cut-off level noted above but 

have fewer than 1,000 employees to 

request treatment as a small-volume 

engine manufacturer (see § 1054.635). In 

such a case, the manufacturer would 

need to provide information to EPA 

demonstrating that the manufacturer has 


sroberts on PROD1PC70 with PROPOSALS
28162 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

fewer employees than the 1,000 cut-off 

level. 

If a small-volume engine 

manufacturer grows over time and 

exceeds the production volume limit of 

10,000 nonhandheld engines per year, 

the engine manufacturer would no 

longer be eligible for the small volume 

flexibilities. However, because some of 

the flexibilities described below provide 

manufacturers with the ability to avoid 

certain testing such as durability testing 

or production line testing, it may be 

difficult for a manufacturer to fully 

comply with all of the testing 

requirements immediately upon losing 

its small-volume status. In such cases, 

EPA is proposing that the engine 

manufacturer would be able to contact 

EPA and request additional time, 

subject to EPA approval, to meet the 

testing requirements that generally 

apply to engine manufacturers. 

(a) Assigned Deterioration Factors 

We are proposing that small-volume 

engine manufacturers may rely on an 

assigned deterioration factor to 

demonstrate compliance with the 

standards for the purposes of 

certification rather than doing service 

accumulation and additional testing to 

measure deteriorated emission levels at 

the end of the regulatory useful life (see 

§ 1054.240). EPA is not proposing actual 

levels for the assigned deterioration 

factors with this proposal. EPA intends 

to analyze emissions deterioration 

information that becomes available over 

the next few years to determine what 

deterioration factors would be 

appropriate for nonhandheld engines. 

This is likely to include deterioration 

data for engines certified to comply with 

California ARB’s Tier 3 standards and 

engines certified early to EPA’s Phase 3 

standards. Prior to the implementation 

date for the Phase 3 standards, EPA will 

provide guidance to engine 

manufacturers specifying the levels of 

the assigned deterioration factors for 

small-volume engine manufacturers. 

(b) Exemption From Production-Line 

Testing 

We are proposing that small-volume 

engine manufacturers would be exempt 

from the production-line testing 

requirements (see § 1054.301). While we 

are proposing to exempt small-volume 

engine manufacturers from production 

line testing, we believe requiring limited 

production-line testing could be 

beneficial to implement the ongoing 

obligation to ensure that production 

engines are complying with the 

standards. Therefore, we request 

comment on the alternative of applying 

limited production-line testing to smallvolume engine manufacturers with a 

requirement to test one production 

engine per year. 

(c) Additional Lead Time 

We are proposing that small-volume 

engine manufacturers could delay 

implementation of the Phase 3 exhaust 

emission standards for two years (see 

§ 1054.145). Small-volume engine 

manufacturers would be required to 

comply with the Phase 3 exhaust 

emission standards beginning in model 

year 2014 for Class I engines and model 

year 2013 for Class II engines. Under 

this approach, manufacturers would be 

able to apply this delay to all of their 

nonhandheld engines or to just a 

portion of their production. For those 

engine families that are certified to meet 

the Phase 3 standards prior to these 

delayed dates by selecting an FEL at or 

below the Phase 3 standards, small 

volume engine manufacturers could 

generate early Phase 3 credits (as 

discussed in Section V.C.3) through the 

2013 model year for Class I engines and 

through the 2012 model years for Class 

II engines. This option provides more 

lead time for small-volume engine 

manufacturers to redesign their 

products. They would also be able to 

learn from some of the hurdles 

overcome by larger manufacturers. 

(d) Broad Engine Families 

We are also proposing that smallvolume engine manufacturers may use a 

broader definition of engine family for 

certification purposes. Under the 

existing engine family criteria specified 

in the regulations, manufacturers group 

their various engine lines into engine 

families that have similar design 

characteristics including the 

combustion cycle, cooling system, 

cylinder configuration, number of 

cylinders, engine class, valve location, 

fuel type, aftertreatment design, and 

useful life category. We are proposing to 

allow small-volume engine 

manufacturers to group all of their 

Small SI engines into a single engine 

family for certification by engine class 

and useful life category, subject to good 

engineering judgment (see § 1054.230). 

(e) Hardship Provisions 

We are also proposing two types of 

hardship provisions for nonhandheld 

engine manufacturers consistent with 

the Panel recommendations. The first 

type of hardship is an unusual 

circumstances hardship which would be 

available to all businesses, regardless of 

size. The second type of hardship is an 

economic hardship provision which 

would be available to small businesses 

only. Sections VIII.C.8 and VIII.C.9 

provide a description of the proposed 

hardship provisions that would apply to 

nonhandheld engine manufacturers. 

(3) Proposed Burden Reduction 

Approaches for Small-Volume 

Nonhandheld Equipment Manufacturers 

We are proposing three provisions for 

small-volume nonhandheld equipment 

manufacturers. The purpose of these 

provisions is to reduce the burden on 

companies for which fixed costs cannot 

be distributed over large sales volumes. 

We are offering these provisions because 

equipment manufacturers may need 

more lead time to redesign their 

equipment to accommodate the new 

Phase 3 engine designs. We request 

comment on the appropriateness of the 

flexibilities described below. 

Under EPA’s current Phase 2 

regulations, EPA provided a number of 

lead time provisions for small-volume 

equipment manufacturers. For the Phase 

2 regulations, the criteria for 

determining if a company was a ‘‘smallvolume equipment manufacturer’’ was 

based on whether the company 

produced fewer than 5,000 

nonhandheld pieces of equipment per 

year (excluding equipment sold in 

California that are subject to the 

California ARB standards). For the same 

reasons noted above for engine 

manufacturers, EPA is proposing to 

retain the current production-based 

criteria for determining who is a smallvolume equipment manufacturer and, as 

a result, eligible for the Phase 3 

flexibilities described below (see 

§ 1054.801). The determination of which 

companies qualify as small-volume 

equipment manufacturers for the 

purposes of the flexibilities described 

below would be based on the annual 

U.S.-directed production of 

nonhandheld equipment in each of the 

three years from 2007 through 2009. 

Based on estimated sales data for 

equipment manufacturers, EPA believes 

the 5,000 unit cut-off for equipment 

manufacturers would include almost all 

of the small business equipment 

manufacturers using SBA’s employeebased definition. However to ensure all 

small businesses have access to the 

flexibilities described below, EPA is 

also proposing to allow equipment 

manufacturers which exceed the 

production cut-off level noted above but 

have fewer than 500 employees for 

equipment manufacturers, or 750 

employees for construction equipment 

manufacturers, or 1,000 employees for 

generator manufacturers, to request 

treatment as a small-volume equipment 

manufacturer (see § 1054.635). In such a 

case, the manufacturer would need to 

provide information to EPA 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28163 

demonstrating that the manufacturer has 

fewer employees than the applicable 

employee cut-off level. 

(a) Additional Lead Time 

As described in Section V.E.3., EPA is 

proposing a transition program for all 

equipment manufacturers that produce 

Class II equipment. Under that program, 

equipment manufacturers can install 

Phase 2 engines in limited numbers of 

Class II equipment over the first four 

years the Phase 3 standards apply (i.e., 

2011 through 2014). The number of 

equipment that can use Phase 2 engines 

is based on 30 percent of an average 

annual production level of Class II 

equipment. To implement this two-year 

extension for small-volume equipment 

manufacturers within the context of the 

transition program for equipment 

manufacturers, EPA is proposing that 

small-volume manufacturers may use 

Phase 2 engines at a level of 200 percent 

of an average annual production level of 

Class II equipment. Small-volume 

equipment manufacturers could use 

these allowances over the four year 

period of the transition program (see 

§ 1054.625). Therefore, a small-volume 

equipment manufacturer could 

potentially use Phase 2 engines on all 

their Class II equipment for two years, 

consistent with the SBAR Panel’s 

recommendation, or they might, for 

example, sell half their Class II 

equipment with Phase 2 engines for four 

years assuming sales stay constant over 

time. 

(b) Simplified Certification Procedure 

We are proposing a simplified engine 

certification procedure for all 

equipment manufacturers, including 

small-volume equipment manufacturers. 

See Section V.E.4 for further discussion 

of this provision. 

(c) Hardship Provisions 

Because nonhandheld equipment 

manufacturers in many cases depend on 

engine manufacturers to supply certified 

engines in time to produce complying 

equipment, we are also proposing a 

hardship provision for all nonhandheld 

equipment manufacturers, regardless of 

size. The proposed hardship would 

allow the manufacturer to request more 

time if they are unable to obtain a 

certified engine and they are not at fault 

and would face serious economic 

hardship without an extension (see 

§ 1068.255). Section VIII.C.10 provides a 

description of the proposed hardship 

provision that would apply to 

nonhandheld equipment manufacturers. 

G. Technological Feasibility 

(1) Level of Standards 

We are proposing new, more stringent 

exhaust HC+NOX standards for Class I 

and II Small SI engines. We are also 

proposing a new CO standard for Small 

SI engines used in marine generator 

applications. 

In the 2005 model year manufacturers 

certified over 500 Class I and II engine 

families to the Phase 2 standards using 

a variety of engine designs and emission 

control technology. All Class I engines 

were produced using carbureted air-fuel 

induction systems. A small number of 

engines used catalyst-based emission 

control technology. Similarly, Class II 

engines were predominately carbureted. 

A limited number of these engines used 

catalyst technology, electronic engine 

controls and fuel injection, or were 

water cooled. In both classes, several 

engine families were certified at levels 

that would comply with the proposed 

Phase 3 standards. Also, a number of 

families were very close to the proposed 

emission standards. This suggests that, 

even accounting for the relative increase 

in stringency associated with our 

proposed Phase 3 requirements, a 

number of families either will not need 

to do anything or will require only 

modest reductions in their emission 

performance to meet the proposed 

standards. However, many engine 

families clearly will have to do more to 

improve their emissions performance. 

Based on our own testing of advanced 

technology for these engines, our 

engineering assessments, and statements 

from the affected industry, we believe 

the proposed requirements will require 

many engine manufacturers to adopt 

exhaust aftertreatment technology using 

catalyst-based systems. Other likely 

changes include improved engine 

designs and fuel delivery systems. 

Finally, adding electronic controls or 

fuel injection systems may obviate the 

need for catalytic aftertreatment for 

some engine families, with the most 

likely candidates being multi-cylinder 

engine designs. 

(2) Implementation Dates 

We are proposing HC+NOX exhaust 

emission standards of 10.0 g/kW-hr for 

Class I engines starting in the 2012 

model year and 8.0 g/kW-hr for Class II 

engines starting in the 2011 model year. 

For both classes of nonhandheld 

engines, we are proposing to maintain 

the existing CO standard of 610 g/kWhr. We expect manufacturers to meet 

these standards by improving engine 

combustion and adding catalysts. 

For spark-ignition engines used in 

marine generators, we are proposing a 

more stringent Phase 3 CO emission 

standard of 5.0 g/kW-hr. This would 

apply equally to all sizes of engines 

subject to the Class I and II Small SI 

standards, with implementation dates as 

described above relative to Class I and 

Class II engines. 

(3) Technological Approaches 

Our feasibility assessment began by 

evaluating the emissions performance of 

current technology for Small SI engines 

and equipment. These initial efforts 

focused on developing a baseline for 

emissions and general engine 

performance so that we could assess the 

potential for new emission standards for 

engines and equipment in this category. 

This process involved laboratory and 

field evaluations of the current engines 

and equipment. We reviewed 

engineering information and data on 

existing engine designs and their 

emissions performance. Patents of 

existing catalyst/muffler designs for 

Class I engines were also reviewed. We 

engaged engine manufacturers and 

suppliers of emission control-related 

engine components in discussions 

regarding recent and expected advances 

in emissions performance beyond that 

required to comply with the current 

Phase 2 standards. Finally, we 

purchased catalyst/muffler units that 

were already in mass production by an 

original equipment manufacturer for use 

on European walk-behind lawn mowers 

and conducted engineering and 

chemical analyses on the design and 

materials of those units. 

We used the information and 

experience gathered in the above effort 

along with the previous catalyst design 

experience of our engineering staff, to 

design and build prototype catalystbased emission control systems that 

were capable of effectively and safely 

achieving the proposed Phase 3 

requirement based on dynamometer and 

field testing. We also used the 

information and the results of our 

engine testing to assess the potential 

need for improvements to engine and 

fuel system designs, and the selective 

use of electronic engine controls and 

fuel injection on some engine types. A 

great deal of this effort was conducted 

in association with our more exhaustive 

study regarding the efficacy and safety 

of implementing advanced exhaust 

emission controls on Small SI engines, 

as well as new evaporative requirements 

for these engines. In other testing, we 

evaluated advanced emission controls 

on a multi-cylinder Class II engine with 

electronic fuel injection. The results of 

that study are also discussed in Section 

XII. 


sroberts on PROD1PC70 with PROPOSALS
28164 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

In our test program to assess the 

feasibility of achieving the proposed 

Phase 3 HC+NOX standard, we 

evaluated 15 Class I engines of varying 

displacements and valve-train designs. 

Each of these engines was equipped 

with a catalyst-based control system and 

all achieved the applicable standard at 

the end of their regulatory useful lives. 

Our work also suggests that 

manufacturers of Class I engines may 

also need to improve the durability of 

their basic engine designs, ignition 

systems, or fuel metering systems for 

some engines in order to comply with 

the emission regulations. 

We tested five single-cylinder, 

overhead-valve Class II engines with 

prototype catalyst/muffler control 

systems. Three of the engines were 

carbureted and two were equipped with 

electronic engine and fuel controls. This 

latter technology improves the 

management of air-fuel mixtures and 

ignition spark timing. This itself can 

reduce engine-out emissions relative to 

a carbureted system and also allows the 

use of larger catalyst volumes and 

higher precious metal loading. Each of 

the engines achieved the requisite 

emission limit for HC+NOX (e.g., 8.0 g/ 

kW-hr). Based on this work and 

information from one manufacturer of 

emission controls, we believe that either 

a catalyst-based system or electronic 

engine controls appear sufficient to 

meet the standard. Nonetheless, some 

applications may require the use of both 

technologies. Finally, similarly to Class 

I engines, we found that manufacturers 

of Class II engines may also need to 

improve the durability of their ignition 

systems or fuel metering systems for 

some engines in order to comply with 

the emission regulations. 

Multi-cylinder Class II engines are 

very similar to their single-cylinder 

counterparts regarding engine design 

and combustion characteristics. There 

are no multi-cylinder Class I engines. 

Base on these attributes and our testing 

of two twin-cylinder engines, we 

conclude that the proposed Phase 3 

HC+NOX standard is technically 

feasible. 

Nonetheless, we also found that 

multi-cylinder engines may present 

unique concern with the application of 

catalytic control technology under 

atypical operation conditions. More 

specifically, the concern relates to the 

potential consequences of combustion 

misfire or a complete lack of 

combustion in one of the two or more 

cylinders when a single catalyst/muffler 

design is used. A single muffler is 

typically used in Class II applications. 

In a single-catalyst system, the 

unburned fuel and air mixture from the 

malfunctioning cylinder would combine 

with hot exhaust gases from the other, 

properly operating cylinder. This 

condition would create high 

temperatures within the muffler system 

as the unburned fuel and air charge 

from the misfiring cylinder combusts 

within the exhaust system. This could 

potentially destroy the catalyst. 

One solution is simply to have a 

separate catalyst/muffler for each 

cylinder. Another solution is to employ 

electronic engine controls to monitor 

ignition and put the engine into ‘‘limpmode’’ until necessary repairs are made. 

For engines using carburetors, this 

would effectively require the addition of 

electronic controls. For engines 

employing electronic fuel injection that 

may need to add a small catalyst, it 

would require that the electronic 

controls incorporate ignition misfire 

detection if they do not already utilize 

the inherent capabilities within the 

engine management system. 

As described earlier, we also expect 

some engine families may use electronic 

fuel injection to meet the proposed 

Phase 3 standard without employing 

catalytic aftertreatment. Engine families 

that already use these fuel metering 

systems and are reasonably close to 

complying with the proposed 

requirement are likely to need only 

additional calibration changes to the 

engine management system for 

compliance. In addition, we expect that 

some engine families which currently 

use carbureted fuel systems will convert 

directly to electronic fuel injection. 

Manufacturers may adopt this strategy 

to couple achieving the standard 

without a catalyst and realizing other 

advantages of using fuel injection such 

as easier starting, more stable and 

reliable engine operation, and reduced 

fuel consumption. 

Our evaluation of electronic fuel 

injection systems that could be used to 

attain the proposed standard found that 

a rather simple, low-cost system should 

be sufficient. We demonstrated this 

proof of concept as part of the engine 

test program we conducted for our 

safety study. In that program, we fitted 

two single-cylinder Class II engines with 

an electronic control unit and fuel 

system components developed for Asian 

motor-scooters and small-displacement 

motorcycles. The sensors for the system 

were minimized to include a throttle 

position sensor, air charge temperature 

sensor, oil temperature sensor, manifold 

absolute pressure sensor, and a 

crankshaft position sensor. This is in 

contrast to the original equipment 

manufacturer fuel injection systems 

currently used in some equipment with 

two-cylinder Class II engine 

applications that employ more 

sophisticated and expensive 

automotive-based components. 

Finally, there are a number of Class II 

engines that use gaseous fuels (i.e., 

liquid propane gas or compressed 

natural gas). Based on our engineering 

evaluation of current and likely 

emission control technology for these 

engines, we conclude that there are no 

special concerns relative to achieving 

the proposed Phase 3 HC+NOX

standard. 

Turning to the proposed Phase 3 CO 

standard for Class I and II Small SI 

engines used in marine generator 

applications, these engines have several 

rather unique design considerations that 

are relevant to achieving the proposed 

CO standard. Marine generator engines 

are designed to operate for very long 

periods. Manufacturers generally design 

the engines to operate at lower loads to 

accommodate continuous operation. 

Manufacturers also design them to take 

advantage of the cooling available from 

the water in the lake or river where the 

boat is operating (seawater). By routing 

seawater through the engine block, or 

using a heat exchanger that transfers 

heat from the engine coolant to the 

seawater, manufacturers are able to 

maintain engine temperatures as well or 

better than automotive engines. Stable 

temperatures in the engine block make 

a very significant difference in engine 

operation, enabling much less distortion 

of the cylinders and a much more 

consistent combustion event. These 

operating characteristics make it 

possible to introduce advanced 

technology for controlling emissions. 

Manufacturers also use this cooling 

water in a jacketing system around the 

exhaust in order to minimize surface 

temperatures and reduce the risk of fires 

on boats. 

The vast majority of gasoline marine 

generators are produced by two engine 

manufacturers. Recently, these two 

manufacturers have announced that 

they are converting their marine 

generator product lines to new designs 

which can achieve more than a 99 

percent reduction in CO emissions. 

These manufacturers stated that this 

action is to reduce the risk of CO 

poisoning and is a result of boat builder 

demand. These low CO emission 

designs used closed-loop electronic fuel 

injection and catalytic control. Both of 

these manufacturers have certified some 

low CO engines and have expressed 

their intent to convert their full product 

lines in the near future. These 

manufacturers also make use of 

electronic controls to monitor catalyst 

function. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28165 

82An entire vehicle is placed in a SHED (Sealed 

Housing for Evaporative Determination) and total 

evaporative emissions are measured over prescribed 

test cycles. 

(4) Consideration of Regulatory 

Alternatives 

In developing the proposed emission 

standards, we considered what was 

achievable with catalyst technology. 

Our technology assessment work 

indicated that the proposed emission 

standards are feasible in the context of 

provisions for establishing emission 

standards prescribed in section 213 of 

the Clean Air Act. We also considered 

what could be achieved with larger, 

more efficient catalysts and improved 

fuel induction systems. In particular, 

Chapter 4 of the Draft RIA presents data 

on Class I engines with more active 

catalysts and on Class II engines with 

closed-loop control fuel injection 

systems in addition to a catalyst. In both 

cases larger emission reductions were 

achieved. 

Based on this work we considered 

HC+NOX standards which would have 

involved a 50 percent reduction for 

Class I engines and a 65–70 percent 

reduction for Class II engines. Chapter 

11 of the Draft RIA evaluates these 

alternatives, including an assessment of 

the overall technology and costs of 

meeting more stringent standards. For 

Class I engines a 50 percent reduction 

standard would require base engine 

changes not necessarily involved with 

the standards we are proposing and the 

use of a more active catalyst. For Class 

II engines this would require the 

widespread use of closed loop control 

fuel injection systems rather than 

carburetors, some additional engine 

upgrades, and the use three-way 

catalysts. We believe it is not 

appropriate at this time to propose more 

stringent exhaust emission standards for 

Small SI engines. Our key concern is 

lead time. More stringent standards 

would require three to five years of lead 

time beyond the 2011 model year start 

date we are proposing for the program. 

We believe it would be more effective to 

implement the proposed Phase 3 

standards to achieve near-term emission 

reductions needed to reduce ozone 

precursor emissions and to minimize 

growth in the Small SI exhaust 

emissions inventory in the post 2010 

time frame. More efficient catalysts, 

engine improvements, and closed loop 

electronic fuel injection could be the 

basis for more stringent Phase 4 

emission standards at some point in the 

future. 

(5) Our Conclusions 

We believe the proposed Phase 3 

exhaust emission standards for 

nonhandheld Small SI engines will 

achieve significant emission reductions. 

Manufacturers will likely meet the 

proposed standards with a mix of threeway catalysts packaged in the mufflers 

and fuel-injection systems. Test data 

using readily available technologies 

have demonstrated the feasibility of 

achieving the proposed emission levels. 

As discussed in Section X, we do not 

believe the proposed standards would 

have negative effects on energy, noise, 

or safety and may lead to some positive 

effects. 

VI. Evaporative Emissions 

A. Overview 

Evaporative emissions refer to 

hydrocarbons released into the 

atmosphere when gasoline or other 

volatile fuels escape from a fuel system. 

The primary source of evaporative 

emissions from nonroad gasoline 

engines and equipment is known as 

permeation, which occurs when fuel 

penetrates the material used in the fuel 

system and reaches the ambient air. 

This is especially common through 

rubber and plastic fuel-system 

components such as fuel lines and fuel 

tanks. Diurnal emissions are another 

important source of evaporative 

emissions. Diurnal emissions occur as 

the fuel heats up due to increases in 

ambient temperature. As the fuel heats, 

liquid fuel evaporates into the vapor 

space inside the tank. In a sealed tank, 

these vapors would increase the 

pressure inside the tank; however, most 

tanks are vented to prevent this pressure 

buildup. The evaporating fuel therefore 

drives vapors out of the tank into the 

atmosphere. Diffusion emissions occur 

when vapor escapes the fuel tank 

through an opening as a result of 

random molecular motion, independent 

of changing temperature. Running loss 

emissions are similar to diurnal 

emissions except that vapors escape the 

fuel tank as a result of heating from the 

engine or some other source of heat 

during operation rather than from 

normal daily temperature changes. 

Refueling losses are vapors that are 

displaced from the fuel tank to the 

atmosphere when someone fills a fuel 

tank. Refueling spitback is the spattering 

of liquid fuel droplets coming out of the 

filler neck during a refueling event. 

Spillage is fuel that is spilled while 

refueling. Regulatory provisions to set 

standards for several of these types of 

evaporative emissions effectively define 

the terms for establishing the specific 

test procedures for measuring 

emissions. See the proposed regulatory 

text for more information. 

This proposal is part of a larger effort 

to control evaporative emissions from 

all mobile sources. Motor vehicles have 

stringent evaporative emission controls 

based on SHED testing of complete 

vehicles.82 As a result, motor vehicle 

manufacturers must control diurnal 

emissions, permeation through all fuelsystem components, running loss 

emissions, refueling vapor 

displacement, refueling spitback, and to 

some extent, spillage. We recently 

established evaporative emission 

standards for recreational vehicles and 

Large SI engines (67 FR 68242, 

November 8, 2002). These standards 

include permeation requirements for 

fuel tanks and fuel lines. In addition, 

equipment using Large SI engines must 

control diurnal emissions and running 

losses. Fuel systems used with Small SI 

engines and Marine SI engines are not 

yet subject to evaporative emission 

standards. 

In August 2002, we proposed 

permeation and diurnal emission 

standards for fuel systems related to 

Marine SI engines (67 FR 53050, August 

14, 2002). We finalized other portions of 

that proposal but chose to delay 

promulgation of Marine SI evaporative 

standards. At the time of the earlier 

proposal there were still open issues 

regarding emission control technologies 

for rotational-molded fuel tanks and for 

pressurizing fuel tanks as a diurnal 

emission control strategy. Since then, 

EPA has continued gathering 

information and performing tests on 

new technologies that could be used to 

address these issues. In this notice we 

are updating the proposed evaporative 

emission standards for Marine SI fuel 

systems. The standards in this proposal 

incorporate this new information. 

We are also proposing standards for 

controlling evaporative emissions from 

fuel systems used with Small SI 

engines. These proposed standards 

include requirements for controlling 

permeation, diffusion, and running loss 

emissions. 

B. Fuel Systems Covered by This Rule 

The proposed evaporative emission 

standards would apply to fuel systems 

for both Small SI engines and Marine SI 

engines. The marine standards apply to 

fuel systems related to both propulsion 

and auxiliary engines. In some cases, 

specific standards are proposed only for 

certain types of equipment, as described 

below. These standards would apply 

only to new products, as described in 

Section VII.A. 

We are proposing to write the 

regulations related to evaporative 

emission standards in 40 CFR part 1060, 


sroberts on PROD1PC70 with PROPOSALS
28166 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

83An exception to component certification is the 

design standard for contolling running loss 

emissions. 

which is devoted to evaporative 

emission controls from nonroad engines 

and equipment. The exhaust standardsetting part (part 1045 for Marine SI and 

part 1054 for Small SI) defines the 

emission standards, but references part 

1060 for certification and testing 

procedures, in addition to definitions, 

compliance-related issues, and other 

special provisions. Section VII describes 

further how the different parts work 

together in the certification process. 

Also, as described in Section XI, we are 

proposing to allow component 

manufacturers and some equipment 

manufacturers to certify products under 

the provisions of part 1060 with respect 

to recreational vehicles. We also plan to 

clarify in a separate action that marine 

and land-based compression-ignition 

engines that operate on volatile liquid 

fuels (such as methanol or ethanol) are 

subject to evaporative requirements 

related to part 1060. The draft 

regulations in part 1060 describe how 

those provisions would apply for 

compression-ignition engines, but these 

regulations impose no obligations until 

we adopt those as requirements in a 

separate rulemaking. 

The following definitions are 

important in establishing which 

components would be covered by the 

proposed standards: ‘‘evaporative,’’

‘‘fuel system,’’ ‘‘fuel line,’’ ‘‘portable 

nonroad fuel tank,’’ and ‘‘installed 

marine fuel tank.’’ See the full text of 

these definitions in the proposed 

regulations at § 1060.801. 

Note in particular that the proposed 

standards would apply to fuel lines, 

including hose or tubing that contains 

liquid fuel. This would include fuel 

supply lines but not vapor lines or vent 

lines not normally exposed to liquid 

fuel. We consider fuel return lines for 

handheld engines to be vapor lines, not 

fuel lines. Data in Chapter 5 of the Draft 

RIA suggest that permeation rates 

through vapor lines and vent lines are 

already lower than the proposed 

standard; this is due to the low vapor 

concentration in the vapor line. In 

contrast, permeation rates for materials 

that are consistently exposed to 

saturated fuel vapor are generally 

considered to be about the same as that 

for liquid fuel. The standards also do 

not apply to primer bulbs exposed to 

liquid fuel only for priming. This 

standard would apply to marine filler 

necks that are filled or partially filled 

with liquid fuel after a refueling event 

where the operator fills the tank as full 

as possible. In the case where the fuel 

system is designed to prevent liquid fuel 

from standing in the fill neck, the fill 

neck would be considered a vapor line 

and not subject to the proposed fuel line 

permeation standard. We request 

comment on the appropriateness of 

applying permeation standards to filler 

necks, vapor lines and vent lines for 

Small SI engines and Marine SI engines. 

One special note applies to fuel 

systems for auxiliary marine engines. 

These engines must meet exhaust 

emission standards that apply to landbased engines. This is appropriate 

because these engines, typically used to 

power generators, operate more like 

land-based engines than like marine 

propulsion engines. For evaporative 

emissions, however, it is important that 

the fuel systems for propulsion and 

auxiliary engines be subject to the same 

standards because these engines 

typically draw fuel from a common fuel 

tank and share other fuel-system 

components. We are therefore proposing 

to apply the Marine SI evaporative 

emission standards and certification 

requirements to the fuel systems for 

both auxiliary and propulsion marine 

engines on marine vessels. 

Our evaporative emission standards 

for automotive applications are based on 

a comprehensive measurement from the 

whole vehicle. However, the 

evaporative standards in this proposal 

are generally based on individual fuelsystem components. For instance, we 

are proposing permeation standards for 

fuel lines and fuel tanks rather than for 

the equipment as a whole.83 We are 

taking this approach for several reasons. 

First, most production of Small SI 

equipment and Marine SI vessels is not 

vertically integrated. In other words, the 

fuel line manufacturer, the engine 

manufacturer, the fuel tank 

manufacturer, and the equipment 

manufacturer are often separate 

companies. In addition, there are several 

hundred equipment manufacturers and 

boat builders, many of which are small 

businesses. Testing the systems as a 

whole would place the entire 

certification burden on the equipment 

manufacturers and boat builders. 

Specifying emission standards and 

testing for individual components 

allows for measurements that are 

narrowly focused on the source of 

emissions and on the technology 

changes for controlling emissions. This 

correspondingly allows for component 

manufacturers to certify that their 

products meet applicable standards. We 

believe it would be most appropriate for 

component manufacturers to certify 

their products since they are best 

positioned to apply emission control 

technologies and demonstrate 

compliance. Equipment manufacturers 

and boat builders would then be able to 

purchase certified fuel-system 

components rather than doing all their 

own testing on individual components 

or whole systems to demonstrate 

compliance with every requirement. In 

contrast, controlling running loss 

emissions cannot be done on a 

component basis so we are proposing to 

require engine or equipment 

manufacturers to certify that they meet 

the running loss standard. We would 

otherwise expect most equipment 

manufacturers to simply identify a range 

of certified components and install the 

components as directed by the 

component manufacturer to 

demonstrate compliance with the 

proposed emission standards. 

Second, a great deal of diversity exists 

in fuel-system designs (hose lengths, 

tank sizes/shapes, number of 

connections, etc.). In most cases, the 

specific equipment types are lowvolume production runs so sales would 

not be large enough to cover the expense 

of SHED-type testing. Third, there are 

similarities in fuel lines and tanks that 

allow for component data to be used 

broadly across products in spite of 

extensive variety in the geometry and 

design of fuel systems. Fourth, many 

equipment types, primarily boats, 

would not fit in standard-size SHEDs 

and would require the development of 

very large, very expensive test facilities 

if the entire vessel were tested. 

Finally, by proposing separate 

standards for fuel line permeation, fuel 

tank permeation, diurnal emissions, and 

diffusion emissions, we are able to 

include simplified certification 

requirements without affecting the level 

of the standards. Specifying a 

comprehensive test with a single 

standard for all types of evaporative 

emissions would make it difficult or 

impossible to rely on design-based 

certification. Requiring emission tests to 

cover the wide range of equipment 

models would greatly increase the cost 

of compliance with little or no increase 

in the effectiveness of the certification 

program. We believe the proposed 

approach allows substantial opportunity 

for market forces to appropriately divide 

compliance responsibilities among 

affected manufacturers and accordingly 

results in an effective compliance 

program at the lowest possible cost to 

society. 

The proposed emission standards 

generally apply to the particular engines 

and their associated fuel systems. 

However, for ease of reference, we may 

refer to evaporative standards as being 

related to Small SI equipment or Marine 

SI vessels, meaning the relevant 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28167 

84 ‘‘Small SI equipment’’ includes all nonroad 

equipment powered by Small SI engines. ‘‘Marine 

SI vessels’’ includes all vessels powered by engines 

that run on volatile liquid fuels. In almost all cases 

these engines are powered by gasoline. Note also 

that volatile liquid fuels include methanol or 

ethanol, which could be used in a compressionignition engine. While we are aware of no such 

equipment or vessels today, they would be covered 

by the proposed regulations. In this preamble, we 

nevertheless refer to all the vessels that fall within 

the scope of the proposed regulations as marine SI 

vessels. Throughout this section, we generally refer 

to Small SI equipment and Marine SI vessels as 

‘‘equipment,’’ consistent with the proposed 

regulatory text. 

evaporative standards for engines and 

fuel systems used in such equipment or 

vessels.84 See Section VI.F for a more 

detailed description of certification 

responsibilities for all the proposed 

evaporative standards. 

C. Proposed Evaporative Emission 

Standards 

We are proposing permeation 

standards for Small SI equipment and 

Marine SI vessels, covering permeation 

from fuel tanks and fuel lines. We are 

also proposing diurnal emission 

standards for Marine SI vessels. We are 

proposing diffusion emission standards 

but not diurnal emission standards for 

nonhandheld Small SI equipment. In 

addition, we are proposing a running 

loss standard for nonhandheld Small SI 

equipment (except wintertime engines), 

with a variety of specified options for 

manufacturers to demonstrate 

compliance. Based on the current state 

of technology, we believe the proposed 

standards are a logical extension of the 

standards proposed for marine vessels 

in August 2002 and the standards 

finalized for recreational vehicles in 

November 2002. 

All the proposed evaporative 

emission standards would apply to new 

equipment for a useful life period in 

years that matches the useful life of the 

corresponding engine. We propose to 

specify a five-year useful life for 

evaporative requirements for Small SI 

equipment (we are not proposing a yearbased useful life requirement related to 

exhaust emissions for Small SI engines). 

Manufacturers have expressed concern 

that they will not have time to gain five 

years of in-use experience on lowpermeation fuel tanks by the proposed 

dates of the tank permeation standards. 

Unlike barrier fuel line, which is well 

established technology, some fuel tanks 

may use barrier technologies that have 

not been used extensively in other 

applications. An example of this 

technology would be barrier surface 

treatments that must be properly 

matched to the fuel tank material. 

Therefore, we are proposing a shorter 

useful life of two years for Marine SI 

and Small SI fuel tanks through the 

2013 model year to allow manufacturers 

to gain experience in use (see 

§§ 1045.145 and 1054.145). We do not 

expect this interim provision to affect 

manufacturer designs or in-use 

compliance efforts. We do not believe 

this interim provision to specify a 

shorter useful life period is necessary 

for other fuel-system components, either 

because there is adequate durability 

experience in other sectors or because 

the control inherently does not involve 

a concern over in-use deterioration. 

The rest of this section summarizes 

the proposed standards, additional 

requirements, and implementation 

dates. Unless otherwise stated, 

implementation dates specified below 

refer to the model year. Section VI.D 

describes how manufacturers may use 

emission credits to meet fuel tank 

permeation standards. Section VI.E 

describes the test procedures 

corresponding to each standard. Section 

VI.F describes how component and 

equipment manufacturers certify their 

products and how their responsibilities 

overlap in some cases. Section VI.F also 

describes the simplified process of 

design-based certification for meeting 

many of the proposed standards. 

(1) Fuel Line Permeation Standards and 

Dates 

The proposed fuel line permeation 

standard applies to fuel lines intended 

for use in new Small SI equipment and 

Marine SI vessels is 15 g/m2/day at 

23 °C on a test fuel containing 10 

percent ethanol (see § 1060.102 and 

§ 1060.515). The form of the standard 

refers to grams of permeation over a 24- 

hour period divided by the inside 

surface area of the fuel line. This 

proposed standard is consistent with 

that adopted for fuel lines in 

recreational vehicles. The move toward 

low-permeation fuel lines in 

recreational vehicles—and further 

development work in this area since the 

first proposed rule for marine 

evaporative emissions—demonstrates 

that low-permeation fuel lines are 

available on the market today for Small 

SI equipment and Marine SI vessels. In 

addition, many manufacturers are 

already using low-permeation 

technologies in response to permeation 

standards in California. We are therefore 

proposing that this standard apply 

beginning with 2008 for nonhandheld 

Small SI equipment and 2009 for 

Marine SI vessels. For handheld 

equipment, we are proposing a fuel line 

permeation implementation date of 

2012, except that small-volume families 

as defined in § 1054.801 would have 

until 2013. Although low-permeation 

fuel line technology is available, 

handheld equipment is not currently 

subject to fuel line permeation 

requirements in California and does not 

typically use low-permeation fuel lines 

today. In addition, much of the fuel line 

used on handheld equipment is not 

straight-run fuel line for which lowpermeation replacements are readily 

available; thus, more lead time is 

required. We request comment on the 

proposed standard and implementation 

dates. 

Component manufacturers would be 

required to certify to the proposed 

emission standard for fuel lines (this 

may involve certification to a family 

emission limit above the emission 

standard for handheld engines, as 

described in Section VI.D), except in 

certain circumstances. Equipment 

manufacturers may need to certify that 

their fuel lines meet the proposed 

emission standards if they use any 

sections or pieces of fuel line that are 

not already certified by the fuel line 

manufacturer, or if they comply using 

emission credits, as described in Section 

VI.F. 

To address the short lead time 

associated with the 2008 requirements 

for Small SI equipment, we are 

proposing an interim arrangement in 

which engine manufacturers would 

include compliant fuel lines under their 

existing certification (see § 90.127). This 

would prevent the need for other 

companies to submit new applications 

for certification that would need to be 

processed immediately. This 

arrangement would allow for engine 

manufacturers to start complying well 

ahead of the time that the fuel line 

standards become mandatory. The 

certification requirements described 

above for component manufacturers 

would start once Small SI engines and 

equipment would be subject to Phase 3 

standards. 

By specifying standards for fuelsystem components rather than the 

entire fuel system, we must separately 

address appropriate requirements for 

connecting pieces, such as valves, Orings, seals, plugs, and grommets that 

are exposed to liquid fuel but are not 

part of the fuel line. We are proposing 

to require that these ancillary pieces 

meet the broad specifications described 

in § 1060.101(f), which generally 

requires that fittings and connections be 

designed to prevent leaks. As described 

in Section VI.E.1, we are also proposing 

to allow testing of fuel line assemblies 

that include connecting pieces, primer 

bulbs, and other fuel line components as 

a single item (see § 1060.102). For 

example, manufacturers may certify fuel 

lines for portable marine fuel tanks as 


sroberts on PROD1PC70 with PROPOSALS
28168 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

assemblies of fuel line, primer bulbs, 

and self-sealing end connections. 

Finally, we are proposing to require that 

detachable fuel lines be self-sealing 

when they are removed from the fuel 

tank or the engine because this would 

otherwise result in high evaporative 

emissions (see § 1060.101). To the 

extent that equipment manufacturers 

and boat builders certify their products, 

they would need to describe how they 

meet the equipment-based requirements 

proposed in § 1060.101(e) and (f) in 

their application for certification. If boat 

builders rely on certified components 

instead of certifying, they would need to 

keep records describing how they meet 

the equipment-based requirements 

proposed in § 1060.101(e) and (f). 

Handheld equipment manufacturers 

have raised concerns that fuel lines 

constructed of available low-permeation 

materials may not perform well in some 

handheld applications under extreme 

cold weather conditions such as below 

¥30 °C. These products often use 

injected molded fuel lines with complex 

shapes and designs needed to address 

the unique equipment packaging issues 

and the high vibration and random 

movement of the fuel lines within the 

overall equipment when in use. 

Industry has expressed concern and the 

data in Chapter 5 of the Draft RIA 

suggest that durability issues may occur 

from using certain low-permeation 

materials in these applications when the 

weather is extremely cold and that these 

could lead to unexpected fuel line leaks. 

Handheld equipment types that could 

be considered as cold-weather products 

include cut-off saws, clearing saws, 

brush cutters over 40cc, commercial 

earth and wood drills, ice augers, and 

chainsaws. 

The extreme cold temperatures 

needed to induce the potential fuel line 

failures are very rare but do occur each 

year in Alaska and the continental 

United States. EPA considered a number 

of different options aimed at developing 

special provisions for equipment most 

likely to be used in these extreme cold 

weather situations without providing 

relief to all of the equipment sold in the 

broad categories identified by industry 

as cold weather products. These 

included focusing the provisions on 

products used by professionals (longer 

useful life equipment or Class V 

equipment only), geographic-based 

retrofit kits, product segregation, and 

special labeling. While each of the 

options has some merit, none could 

provide the full assurance that handheld 

equipment using low-permeation fuel 

lines not compatible with extreme cold 

weather would not be used in such 

weather conditions. While very low 

temperature materials are available that 

can achieve the fuel line permeation 

standards discussed above, these 

materials come at a substantially higher 

cost than that for fuel lines used in non 

cold weather products and none have 

been evaluated in fuel lines on the 

handheld equipment at issue. 

If we consider a less stringent 

standard, we believe there are lower 

cost materials available that could be 

used to achieve permeation reductions 

in equipment designed for cold weather 

applications without creating potential 

safety concerns related to fuel leaks. As 

discussed in the Draft RIA, rubbers with 

high acrylonitrile (ACN) content are 

used in some handheld applications. 

These materials have about half the 

permeation of lower ACN-content 

rubbers also used in handheld 

applications. To capture the capability 

of these materials to reduce permeation 

emissions without creating other issues 

for cold weather products, we are 

proposing a fuel line permeation 

standard of 175 g/m2/day in 2013 for 

cold-weather products. We request 

comment on appropriateness of this 

standard and whether there are 

materials that could be used to achieve 

larger fuel line permeation reductions 

from cold-weather products. 

We request comment on what 

products should be considered to be 

cold-weather products and if it would 

be possible to distinguish between 

products used in warm versus cold 

climates. We also request comment 

regarding whether the proposed ABT 

program discussed below for handheld 

equipment would provide enough 

flexibility to manufacturers to address 

cold weather issues through credit 

trading rather than through a 

differentiated standard. 

Outboard engine manufacturers have 

expressed concern that it would be 

difficult for them to meet proposed 2009 

date for the sections of fuel lines that are 

mounted on their engines under the 

engine cowl. While some sections of 

straight-run fuel line are used on the 

outboards, many of the smaller sections 

between engine mounted fuel-system 

components and connectors are 

preformed or even injection-molded 

parts. Outboard engine manufacturers 

stated that they would need additional 

time to redesign and perform testing on 

low-permeation fuel lines under the 

cowl. PWC and SD/I manufacturers 

have indicated that this is not an issue 

on their engines because they are 

dominantly straight-run pieces. 

Outboard engine manufacturers have 

also stated that, in contrast to under 

cowl fuel line, they would be able to 

facilitate the introduction of lowpermeation fuel line, from the fuel tank 

to the engine, in 2008. 

We request comment on 

implementing an optional program 

where the implementation dates for fuel 

line under the cowl can be delayed 

beyond 2009, provided low-permeation 

fuel line from the fuel tank to the engine 

is used beginning on January 1, 2008. 

Under this approach, permeation 

standards for primer bulbs on fuel lines 

from the tank to the engine would still 

begin in 2009. One specific approach 

would be to phase in the use of lowpermeation fuel lines on outboards 

based on the total inside surface area of 

the under cowl fuel lines. For instance 

the following phase-in could be 

implemented: 30 percent in 2010, 60 

percent in 2011, and 90 percent in 2012. 

This would allow manufacturers to 

transition to the use of low-permeation 

fuel lines in an orderly fashion. Also, it 

would give them some flexibility to 

continue to use short sections of 

uncontrolled fuel lines, in the longer 

term, that are more difficult or costly to 

replace with low-permeation fuel lines. 

At some point in the future, such as 

2015, we could require the use of 100 

percent low-permeation fuel lines. 

Manufacturers would be expected to 

target 100 percent use of lowpermeation fuel lines in new engine 

designs. If the surface area percentages 

were weighted across a manufacturers 

entire product line of outboard engines 

(rather than on a per-engine basis), it 

would allow manufacturers to use 100 

percent low-permeation fuel lines on 

new engine designs, while making less 

changes to engines that are planned to 

be phased out of production. 

We also request comment on how the 

above program could be implemented 

given that the fuel line from the tank to 

the engine is typically installed by the 

boat builder while the under-cowl fuel 

line is installed by the engine 

manufacturer. One approach that has 

been considered is requiring the engine 

manufacturer to specify low-permeation 

fuel line in its installation instructions 

beginning in 2008. The engines would 

not be made available to boat builders 

who do not begin using low-permeation 

fuel lines in 2008. 

(2) Fuel Tank Permeation Standards and 

Dates 

Except as noted below, we are 

proposing a fuel tank permeation 

standard of 1.5 g/m2/day for tanks 

intended for use in new Small SI 

equipment and Marine SI vessels based 

on the permeation rate of gasoline 

containing 10 percent ethanol at a test 

temperature of 28 °C (see § 1060.103 and 

§ 1060.520). The emission standard is 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28169 

based on the inside surface area of the 

fuel tank rather than the volumetric 

capacity because permeation is a 

function of surface area exposed to fuel. 

This proposed standard is consistent 

with that adopted for fuel tanks in 

recreational vehicles. 

We are proposing a fuel tank 

permeation standard of 2.5 g/m2/day for 

handheld equipment with structurally 

integrated nylon fuel tanks (see 

§ 1060.801 for the proposed definition 

of structurally integrated nylon fuel 

tanks). These fuel tanks are molded as 

part of the general structure of the 

equipment. In most cases, these fuel 

tanks are made of glass-reinforced nylon 

for strength and temperature resistance. 

These nylon constructions typically 

have significantly lower permeation 

rates than other plastics used for fuel 

tanks, such as high-density 

polyethylene; however, based on data in 

Chapter 5 of the Draft RIA the nylon 

constructions may not be able meet a 

standard of 1.5 g/m2/day. Therefore, we 

believe a higher standard is necessary 

for these fuel tank constructions. We 

request comment on this separate 

permeation standards for structurally 

integrated fuel tanks. 

Many Small SI equipment 

manufacturers are currently using lowpermeation fuel tanks for products 

certified in California. The California 

tank permeation test procedures use a 

nominal test temperature of 40 °C with 

California certification gasoline while 

we are proposing to require testing at 

28 °C with gasoline containing 10 

percent ethanol. We are proposing to 

allow manufacturers the alternative of 

testing their fuel tanks at 40 °C with our 

test fuel. Because permeation increases 

as a function of temperature, we are 

proposing an alternative standard of 2.5 

g/m2/day for fuel tanks tested at 40 °C. 

For structurally integrated nylon fuel 

tanks, the alternative standard at 40 °C 

would be 4.0 g/m2/day. 

We consider three distinct classes of 

marine fuel tanks: (1) Portable marine 

fuel tanks (generally used with small 

outboards); (2) personal watercraft 

(PWC) fuel tanks; and (3) other installed 

marine fuel tanks (generally used with 

SD/I and larger outboards). The fuel 

tank permeation standards are proposed 

to start in 2011 for all Small SI 

equipment using Class II engines and for 

personal watercraft and portable marine 

fuel tanks. For Small SI equipment 

using Class I engines and for other 

installed marine fuel tanks, we propose 

to apply the same standard starting in 

2012. Most of the marine fuel tanks with 

the later standards are produced in low 

volumes using rotational-molded crosslink polyethylene or fiberglass 

construction, both of which generally 

present a greater design challenge. We 

believe the additional lead time will be 

necessary for these fuel tanks to allow 

for a smooth transition to lowpermeation designs. For Small SI 

equipment, these dates also align with 

the schedule for introducing the 

proposed Phase 3 exhaust emission 

standards. 

Component manufacturers would be 

required to certify to the proposed 

permeation emission standard for fuel 

tanks (this may involve certification to 

a family emission limit above the 

emission standard, as described in 

Section VI.D), except in certain 

circumstances. Equipment 

manufacturers would need to certify 

that their fuel tanks meet the proposed 

emission standards if they are not 

already certified by the fuel tank 

manufacturer, or if they comply using 

emission credits, as described in Section 

VI.F. However, we are proposing that 

manufacturers of portable marine fuel 

tanks be required to certify that their 

products meet the new permeation 

standard. This is necessary because 

portable fuel tanks are not sold to boat 

builders for installation in a vessel. 

There is therefore no other manufacturer 

who could be treated as the 

manufacturer and responsible for 

meeting emission standards that apply 

to portable marine fuel tanks. 

For handheld equipment, we are 

proposing a phased-in implementation 

of the fuel tank permeation standards. 

Manufacturers would be required to 

meet the proposed fuel tank permeation 

standards in 2009 for products that they 

already certify in California (see 

§ 90.129). The remaining equipment, 

except for structurally integrated nylon 

fuel tanks and small-volume families, 

would be subject to the proposed tank 

permeation standards in 2010 (see 

§ 1054.110). Structurally integrated 

nylon fuel tanks would be subject to the 

proposed standards in 2011 and smallvolume families would have to meet the 

proposed tank permeation standards 

beginning in 2013. Manufacturers 

would need to start using EPA-specified 

procedures starting in 2010, except that 

equipment certified using carryover data 

would be allowed to use data collected 

using procedures specified for 

compliance in California for model 

years 2010 and 2011 (see § 1054.145). 

For the purpose of the proposed fuel 

tank permeation standards, a fuel cap 

mounted on the fuel tank is considered 

to be part of the fuel tank. We consider 

a fuel cap to be mounted on the fuel 

tank unless the fuel tank is designed to 

have a filler neck at least 12 inches long 

with the opening at least six inches 

above the top of the fuel tank. The fuel 

cap would therefore be included in the 

tank permeation standard and test. The 

cap may optionally be tested separately 

from the tank and the results combined 

to determine the total tank permeation 

rate (see § 1060.521). Cap manufacturers 

could also test their caps and certify 

them separately to a separate 1.5 g/m2/ 

day cap permeation standard. The 

permeation requirements apply 

independently of the diffusion 

standards described below, which 

address venting of fuel vapors. We are 

concerned that allowing certification of 

fuel caps could add complexity to the 

certification process. It would also add 

a measure of uncertainty in our efforts 

to ensure compliance with emission 

standards—for fuel tanks certified to 

permeation standards alone, it would be 

hard ensure that the fuel tanks in the 

final installation would be in a certified 

configuration with respect to diffusion 

emissions. We therefore request 

comment on the value to manufacturers 

of allowing fuel caps to be certified 

independently from the fuel tank. Note 

that a single certification fee would 

apply to fuel tanks that are certified to 

permeation and diffusion emission 

standards, but only if there is no 

optional fuel cap certification. With the 

option of fuel cap certification, a 

separate certification fee would apply to 

diffusion and permeation families, even 

if a single fuel tank manufacturer 

certifies to both standards. 

(3) Diurnal Emission Standards and 

Dates 

We are proposing diurnal emission 

standards for fuel tanks intended for use 

in new Marine SI vessels (see 

§ 1045.107). We consider three distinct 

classes of marine fuel tanks: (1) Portable 

marine fuel tanks (used with small 

outboards); (2) personal watercraft 

(PWC) fuel tanks; and (3) other installed 

fuel tanks (used with SD/I and larger 

outboards). For diurnal emissions from 

portable fuel tanks, we are proposing a 

design requirement that the tank remain 

sealed up to a pressure of 5.0 psi, 

starting in the 2009 model year (see 

§ 1060.105). We are also proposing that 

portable fuel tanks must continue to be 

self-sealing when disconnected from an 

engine. 

We are proposing a general emission 

standard of 0.40 g/gal/day based on a 

25.6–32.2 °C temperature profile for 

installed tanks. The applicable test 

procedures are described in Section 

VI.E.3. Manufacturers have expressed 

concerns that some very large boats stay 

in the water throughout the boating 

season and therefore will see a much 

smaller daily swing in fuel 


sroberts on PROD1PC70 with PROPOSALS
28170 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

temperatures, which corresponds with a 

smaller degree of diurnal emissions. We 

are proposing to address this concern 

with an alternative standard and test 

procedure that would apply only for 

nontrailerable boats. Using available 

measurements related to fuel 

temperatures and emission models to 

relate temperatures to projected diurnal 

emission levels, we are proposing an 

alternative standard of 0.16 g/gal/day 

based on a 27.6–30.2 °C temperature 

cycle for fuel tanks installed in 

nontrailerable boats. For the purposes of 

this rule, we are proposing to define a 

nontrailerable boat as 26 feet or more in 

length, which is consistent with the U.S. 

Fish and Wildlife Service definition for 

‘‘nontrailerable recreational vessels’’ in 

50 CFR 86.12. The diurnal emission 

standards would apply starting in 2009 

for PWC fuel tanks and in 2010 for other 

installed fuel tanks. 

Component manufacturers would be 

required to certify to the proposed 

diurnal emission standard for fuel tanks, 

except in certain circumstances. 

Equipment manufacturers would need 

to certify that their fuel tanks meet the 

proposed emission standards if they are 

not already certified by the fuel tank 

manufacturer, as described in Section 

VI.F. As described above for permeation 

standards, we are proposing to require 

manufacturers of portable marine fuel 

tanks to certify that they meet the 

proposed diurnal emission standards 

since there is no ‘‘equipment 

manufacturer’’ to assume certification 

responsibility for those tanks. 

We believe the proposed requirements 

would achieve at least a 50 percent 

reduction in diurnal emissions from 

PWC and other installed marine fuel 

tanks and nearly a 100 percent 

reduction from portable marine tanks. 

We request comment on the proposed 

diurnal emission standards for Marine 

SI vessels. 

It is common today for portable 

marine fuel tanks to maintain an airtight 

seal when the engine is not operating. 

These tanks typically have caps that are 

fitted with a valve that can be manually 

opened during engine operation and 

closed when the fuel tank is stored. 

Although this technology could be used 

to control diurnal emissions effectively, 

it depends on user intervention. We are 

proposing that portable fuel tanks be 

required to be fitted with a self-sealing 

vent rather than a manually-controlled 

vent. For instance, a one-way diaphragm 

valve could be used to allow air in when 

fuel is drawn from the tank (to prevent 

vacuum conditions), but otherwise seal 

the fuel tank. Current portable marine 

fuel tanks are small and designed to 

hold pressure when the manual valve is 

closed. We are proposing to require that 

portable marine fuel tanks be designed 

to maintain a seal to allow for pressure 

buildup resulting from normal 

temperature swings. These tanks should 

include valves that prevent a vacuum in 

the tank during engine operation which 

could restrict fuel flow to the engine 

and potentially stall the engine. We 

believe portable marine fuel tanks with 

valves that seal automatically will 

control diurnal emissions without 

relying on user operation. We are 

proposing to implement this design 

standard beginning with the 2009 model 

year. We request comment on this 

approach. 

Manufacturers will likely control 

emissions from installed marine fuel 

tanks either by sealing the fuel system 

up to 1.0 psi or by using a carbon 

canister in the vent line. As discussed 

below, we believe PWC manufacturers 

will likely seal the fuel tank with a 

pressure-relief valve while 

manufacturers of other boats with 

installed fuel tanks are more likely to 

use carbon canisters. However, either 

technology would be acceptable for 

either kind of installed marine fuel tank 

as long as every system meets the 

numerical standard applicable to the 

specific tank. 

Personal watercraft currently use 

sealed fuel systems for preventing fuel 

from exiting, or water from entering, the 

fuel tank during typical operation. 

These vessels use pressure-relief valves 

for preventing excessive positive 

pressure in the fuel system; the pressure 

to trigger the valve may range from 0.5 

to 4.0 psi. Such fuel systems would also 

need a low-pressure vacuum relief valve 

to allow the engine to draw fuel from 

the tank during operation. In the 2002 

proposal, we discussed a diurnal 

emission standard largely based on the 

use of a sealed system with a 1.0 psi 

pressure-relief valve. The Personal 

Watercraft Industry Association (PWIA) 

expressed support in their comments for 

this proposal. We estimate that diurnal 

emissions from a sealed system with a 

1.0 psi pressure-relief valve would be 

about half that of the same system on a 

PWC with an open vent. For personal 

watercraft, we are proposing an 

implementation date of 2009 because 

the anticipated technology is widely 

used today. 

The National Marine Manufacturers 

Association (NMMA) expressed concern 

in their comments on the 2002 proposal 

that pressurized fuel tanks could lead to 

safety issues for larger installed fuel 

tanks. NMMA commented that these 

tanks would deform under pressure and 

that pressure could lead to fuel leaks. 

Manufacturers also commented that 

bladder fuel systems, which would not 

be pressurized, would be too expensive. 

At the time of the 2002 proposal, we 

considered the use of carbon canisters to 

control diurnal emissions, but were 

concerned that active purging would 

occur infrequently due to the low hours 

of operation per year seen by many 

boats. However, we have since collected 

data on carbon canisters showing that 

canisters can reduce emissions by more 

than 50 percent with passive purge that 

occurs during the normal breathing 

process without creating any significant 

pressure in the fuel tank. For installed 

marine fuel tanks, other than PWC, we 

are therefore proposing an 

implementation date of 2010 to allow 

additional lead time for designing and 

producing canisters for marine vessels. 

During the SBREFA process described 

in Section VI.I, NMMA expressed 

general support of the feasibility of 

using carbon canisters on boats. 

However, they commented that there are 

many small boat builders that may need 

additional time to become familiar with 

and install carbon canisters in their 

boats. We request comment on either a 

three-year phase-in (say 33/66/100 

percent over the 2010 through 2012 

model years) or an extra year of lead 

time for small businesses to comply 

with the proposed diurnal emission 

standards. We also request comment on 

which small business companies would 

be eligible for this flexibility. One 

option would be to use the SBA 

definition of a small boat builder which 

is based on having fewer than 500 

employees. Another option would be to 

base the flexibility on the annual boat 

sales of the company. One issue with 

the latter approach would be the wide 

range of boat sizes and sales prices in 

the marine industry. With a given 

number of employees, many more small 

than large boats can be manufactured in 

a year. 

If a manufacturer uses a canisterbased system to comply with the 

standard applicable to the specific tank, 

we are also proposing to require that 

manufacturers design their systems not 

to allow liquid gasoline to reach the 

canister during refueling or from fuel 

sloshing (see § 1060.105). Liquid 

gasoline would significantly degrade the 

carbon’s ability to capture hydrocarbon 

vapors. One example of an approach to 

protect the canister from exposure to 

liquid gasoline is a design in which the 

canister is mounted higher than the fuel 

level and a small orifice or a float valve 

is installed in the vent line to stop the 

flow of liquid gasoline to the canister. 

Several manufacturers have stated 

that it is common for users to fill their 

fuel tank until they see fuel coming out 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28171 

of the vent line. In addition to being a 

source of hydrocarbon emissions, if 

liquid fuel were to reach a carbon 

canister, it would significantly reduce 

the effectiveness of the canister. 

Solutions for this problem are relatively 

straightforward and have been used in 

automotive applications for many years. 

We are therefore proposing to require 

that boat builders use good engineering 

judgment in designing fuel systems that 

address diurnal emission control in a 

way that does not increase the 

occurrence of fuel spitback or spillage 

during refueling beginning in the years 

specified in Table VI–1. While this 

provision is not detailed or prescriptive, 

it communicates a requirement that 

manufacturers appropriately take 

refueling design into account, and it 

allows EPA to make enforcement 

decisions as the industry establishes 

sound practices in this area. In addition, 

we are proposing that manufacturers 

would have to meet certain 

specifications with their fuel tank caps, 

including requirements to tether the cap 

to the equipment and designing the cap 

to provide physical or audible feedback 

when the vapor seal is established. Also, 

adding vents to a fuel tank would 

generally not be allowed. To the extent 

that boat builders certify their vessels to 

meet emission standards, they would 

need to describe how they meet these 

refueling-related requirements in their 

application for certification. If boat 

builders rely on certified components 

instead of applying for certification, 

they would need to keep records 

describing how they meet these 

refueling-related requirements; Section 

VI.F describes how such companies can 

meet certification requirements without 

applying for a certificate. 

Any increase in fuel temperature 

resulting from engine operation would 

cause a potential for emissions that is 

very similar to diurnal emissions. We 

are therefore proposing to disallow 

manufacturers from disabling their 

approaches for controlling diurnal 

emissions during engine operation (see 

§ 1060.105). This would ensure that any 

running loss emissions that would 

otherwise occur will be controlled to a 

comparable degree as diurnal emissions. 

We are not proposing diurnal 

emission standards for Small SI 

equipment. However, we request 

comment on such a requirement. We 

believe passively purging carbon 

canisters could reduce diurnal 

emissions by 50 to 60 percent from 

Small SI equipment. Active purging 

would result in even greater reductions. 

However, we believe some important 

issues would need to be resolved, such 

as cost, packaging, and vibration. The 

cost sensitivity is especially noteworthy 

given the relatively low emissions levels 

(on a per-equipment basis) from such 

small fuel tanks. We request comment 

on the appropriate level of such a 

standard and when it could be 

implemented. 

There are some small outboard marine 

engines that have fuel tanks directly 

mounted on the engine. In these cases, 

the fuel tank could be considered to be 

more similar to those on Small SI 

equipment than other marine fuel tanks. 

Typically, these outboard engines have 

fuel tanks on the order of 1–2 liters in 

size. Manufacturers have expressed 

concern about the practicality of using 

carbon canisters for these applications 

due to space constraints and durability 

impacts of engine handling. We request 

comment on excluding fuel tanks less 

than 2 liters in size that are mounted on 

outboard engines from the proposed 

diurnal emission requirements. Since it 

may be a viable alternative, comments 

should address the feasibility of using 

sealed fuel tanks with pressure relief in 

these applications. Similar to Small SI 

equipment, marine fuel tanks mounted 

on the engine are directly exposed to 

heat from the engine during operation. 

In the case where diurnal standards 

were not applied to these fuel tanks, we 

request comment on applying the 

proposed diffusion and running loss 

standards, described below, to these fuel 

tanks. 

(4) Diffusion Standards and Dates 

As described above, diffusion 

emissions occur when vapor escapes the 

fuel tank through an opening as a result 

of random molecular motion, 

independent of changing temperature. 

Diffusion emissions can be easily 

controlled by venting fuel tanks in a 

way that forces fuel vapors to go 

through a long, narrow path to escape. 

We are proposing that manufacturers 

may choose between certifying to a 

performance standard or a design 

standard. Under a performance 

standard, we specify a test procedure 

and a maximum emission rate. Under a 

design standard, we specify certain 

designs that a manufacturer may use to 

comply with the standard. This 

standard would take effect at the same 

time as the exhaust emission 

standards—2011 for Class II engines and 

2012 for Class I engines. 

We are proposing a performance 

standard of 0.80 g/day for diffusion 

emissions for fuel tanks intended for use 

in new nonhandheld Small SI 

equipment (§ 1060.105). This standard 

would not apply to a manufacturer who 

certifies using one of the four alternative 

design standards described below. 

1. We are proposing a design standard 

for diffusion in which the tank must be 

sealed except for a single vent line. This 

vent line would need to be at least 180 

mm long and have a ratio of length to 

the square of the diameter of at least 5.0 

mm-1 (127 inches-1). For example, a vent 

line with 6 mm inside diameter would 

have to be at least 180 mm long to meet 

this design standard. 

2. We are proposing a second 

alternative design standard for diffusion 

in which vapors from a fuel tank are 

vented solely through a tortuous path 

through the fuel cap. Many fuel cap 

manufacturers use this cap design today 

to prevent fuel from splashing out 

through the vent during operation. As 

described in Chapter 5 of the Draft RIA, 

we tested three low-diffusion fuel caps 

used on Class I equipment with high 

annual sales. Based on these designs, we 

proposing to define a tortuous path fuel 

cap as one that is vented through a 

small path in the gasket and then 

around the threads where the cap 

screws onto the fuel tank. Specifically, 

we are proposing an average path length 

to total cross sectional area in the gasket 

pathways of greater than 1 mm-1 and a 

vent path through at least 360° of the 

threads. 

3. We are proposing a third alternative 

design standard for diffusion in which 

the fuel tank is sealed except for a vent 

through a carbon canister. Carbon 

canisters are one technology that 

manufacturers may use to meet diurnal 

emission standards in California. 

4. We are proposing a fourth 

alternative design standard for diffusion 

in which a fuel tank is sealed so that 

vapors may not exit the fuel tank. Under 

this design standard, it would be 

acceptable to have a pressure relief 

valve with an opening pressure of at 

least 0.5 psi. 

We request comment on the 

appropriateness of setting a design 

standard for diffusion and on the 

designs described above. We also 

request comment on any additional 

diffusion data from fuel caps that are 

capable of meeting the proposed 

performance-based diffusion standard 

and on the design of these fuel caps. 

Even without the alternative of a design 

standard, we anticipate that fuel cap 

manufacturers, with a small number of 

designs covering a large number of 

equipment models, would be able to 

perform the necessary testing for a 

performance-standard without being 

unreasonably burdened. 

Fuel tank manufacturers would be 

required to certify that their products 

limit venting sufficiently to meet the 

proposed diffusion emission standard, 

except in certain circumstances. Fuel 


sroberts on PROD1PC70 with PROPOSALS
28172 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

cap manufacturers may optionally 

certify their fuel caps to the diffusion 

emission standard, in which case they 

would become subject to all the 

compliance requirements related to the 

standards, including certification. 

Equipment manufacturers would need 

to certify that their fuel tanks meet the 

proposed emission standards if they are 

not already certified by the fuel tank 

manufacturer, as described in Section 

VI.F. 

We are also proposing that equipment 

manufacturers subject to diffusion 

emission standards must ensure that the 

fuel cap is tethered to the fuel tank or 

the equipment to prevent it from being 

accidentally misplaced (see § 1060.101). 

A missing fuel tank cap would bypass 

any design intended to control these 

losses and could lead to very high 

emission rates. Fuel cap or fuel tank 

manufacturers could address this as part 

of their component certification. If this 

is not part of the component 

certification, an equipment 

manufacturer would need to describe 

how it meets the tethering requirement 

in its application for certification. 

We are not proposing diffusion 

standards for handheld equipment. 

Handheld equipment use fuel caps that 

are either sealed or have tortuous 

venting pathways to prevent fuel from 

spilling during operation. We believe 

these fuel cap designs limit diffusion 

emissions sufficiently that handheld 

equipment already meet the proposed 

standard. In addition, we are not 

proposing diffusion standards for 

Marine SI vessels. The diurnal emission 

standard for Marine SI vessels will lead 

manufacturers to adopt technologies 

that automatically limit diffusion losses, 

so there is no need to propose a separate 

diffusion standard for those systems. 

Similarly, we would not finalize the 

proposed diffusion standard if we adopt 

a diurnal emission standard for Small SI 

equipment. We request comment on the 

proposed diffusion standard for 

nonhandheld equipment and whether it 

should apply to handheld equipment 

and marine vessels as well. 

(5) Running Loss Emission Standards 

and Dates 

We are proposing standards to control 

running loss emissions from 

nonhandheld Small SI equipment 

beginning in the same year as the 

proposed Phase 3 exhaust emission 

standards—2012 for Class I engines and 

2011 for Class II engines (see 

§ 1060.104). Equipment manufacturers 

would need to certify that their 

equipment models meet the proposed 

running loss requirements since 

component certification is not practical. 

We have measured fuel temperatures 

and found that some types of equipment 

experience significant fuel heating 

during engine operation. This was 

especially true for fuel tanks mounted 

on or near the engine. This occurs in 

many types of Small SI equipment. 

It would be very difficult to define a 

measurement procedure to consistently 

and accurately quantify running losses. 

Also, a performance standard with such 

a procedure would introduce a 

challenging testing requirement for 

hundreds of small-volume equipment 

manufacturers. Moreover, we believe 

there are several different design 

approaches that will reliably and 

effectively control running losses. We 

are therefore not proposing to control 

running losses using the conventional 

approach of establishing a procedure to 

measure running losses and adopting a 

corresponding emission standard. 

Manufacturers could choose from one of 

the following approaches to meet this 

requirement: 

• Vent running loss fuel vapors from 

the fuel tank to the engine’s intake 

manifold in a way that burns the fuel 

vapors in the engine instead of venting 

them to the atmosphere. The use of an 

actively purged carbon canister would 

qualify under this approach. 

• Use a bladder to minimize fuel 

vapor volume in a sealed fuel tank. 

• Design the equipment so that fuel 

temperature does not rise more than 8 °C 

during normal operation. Such a design 

may use insulation or forced cooling to 

minimize temperature increases. This 

would require measuring fuel 

temperatures to show that each covered 

equipment configuration does not 

exceed the temperature threshold (see 

§ 1060.535). 

• Show that the equipment qualifies 

as wintertime equipment. 

We believe any of these approaches 

will ensure that manufacturers will be 

substantially controlling running losses, 

either by preventing or managing 

running loss vapors. While none of 

these approaches are expected to require 

extensive design changes or lead time, 

any manufacturer choosing the option to 

vent running loss fuel vapors into the 

engine’s intake manifold would need to 

make this change in coordination with 

the engine design. As a result, we 

believe it is appropriate to align the 

timing of the running loss standards 

with the introduction of the proposed 

Phase 3 standards. 

We request comment on the proposed 

running loss requirement for 

nonhandheld Small SI equipment. We 

also request comment on any other 

design approaches that will reliably and 

effectively control running losses. 

Examples of other approaches may be to 

seal the fuel tank for pressures up to 3.5 

psi or, for equipment that does not 

include fuel recirculation, locate the 

fuel tank at least 12 inches away from 

the engine and other heat sources (such 

as exhaust pipes, hydraulic lines, etc.). 

We are not proposing to apply the 

running loss requirements to handheld 

Small SI engines. We believe running 

loss emission standards should not 

apply to handheld engines at this time 

because the likely approach to 

controlling running losses could require 

that manufacturers revisit their design 

for controlling exhaust emissions. As 

described above, we are not proposing 

to change the exhaust emission 

standards for handheld engines in this 

rulemaking. In addition, there are some 

technical challenges that would require 

further investigation. For example, the 

compact nature of the equipment makes 

it harder to isolate the fuel tank from the 

engine and the multi-positional nature 

of the operation may prevent a reliable 

means of venting fuel vapors into the 

intake manifold while the engine is 

running. We request comment on the 

appropriateness of requiring 

manufacturers to address running loss 

emissions from handheld engines. 

Furthermore, we are not proposing to 

apply running loss requirements to 

Marine SI engines. Installed marine fuel 

tanks are generally not mounted near 

the engine or other heat sources so 

running losses should be very low. A 

possible exception to this is personal 

watercraft since they are designed with 

the fuel tank closer to the engine. 

However, under the proposed standard 

for controlling diurnal emissions, we 

expect that manufacturers will design 

their fuel tanks to stay pressurized up to 

1 psi. This would also help control 

running loss emissions. We request 

comment on applying running loss 

controls to Marine SI engines. In 

particular, we request comment on the 

possibility that other design 

configurations would have higher 

running loss emissions. One example 

may be outboard applications in which 

a fuel tank is mounted directly on the 

engine. 

(6) Requirements Related to Refueling 

Refueling spitback and spillage 

emissions represent a substantial 

additional amount of fuel evaporation 

that contributes to overall emissions 

from equipment with gasoline-fueled 

engines. We are not proposing 

measurement procedures with 

corresponding emission standards to 

address these emission sources. 

However, we believe equipment 

manufacturers can take significant steps 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28173 

to address these refueling issues by 

incorporating sound practices into their 

equipment designs. For example, 

designing a marine filler neck with a 

horizontal segment near the fuel inlet 

will almost inevitably lead to high 

levels of spillage since fuel flow will 

invariably reach the nozzle, leading to 

substantial fuel flow out of the fuel 

system. In contrast, designing for 

automatic shutoff would prevent this. 

Also, maintaining a vertical orientation 

of the filler neck would allow the fuel 

to flow back into the filler neck and into 

the tank after the nozzle shuts off. 

For Small SI equipment, designing 

fuel inlets that are readily accessible 

and large enough to see the rising fuel 

level (either through the tank wall or the 

fuel inlet) will substantially reduce 

accidental spillage during refueling. We 

are therefore proposing to require that 

equipment manufacturers design and 

build their equipment such that 

operators could reasonably be expected 

to fill the fuel tank without spitback or 

spillage during the refueling event (see 

§ 1060.101). This proposed requirement 

mirrors the following requirement 

recently adopted with respect to 

portable fuel containers (72 FR 8428, 

February 26, 2007): 

You are required to design your portable 

fuel containers to minimize spillage during 

refueling to the extent practical. This requires 

that you use good engineering judgment to 

avoid designs that will make it difficult to 

refuel typical vehicle and equipment designs 

without spillage. (40 CFR 59.611(c)(3)) 

While the proposed requirement is 

not as objective and quantifiable as the 

other standards and requirements we 

are proposing, we believe this is 

important, both to set a requirement for 

manufacturers in designing their 

products and to give EPA the ability to 

require manufacturers to select designs 

that are consistent with good 

engineering practice regarding effective 

refueling strategies. To the extent that 

equipment manufacturers and boat 

builders certify their products to 

emission standards, they would need to 

describe how they meet this refuelingrelated requirement in their application 

for certification. If boat builders rely on 

certified components instead of 

applying for certification, they would 

need to keep records describing how 

they meet this refueling-related 

requirement; Section VI.F describes how 

such companies can meet certification 

requirements without applying for a 

certificate. We request comment on this 

approach to addressing refueling 

emissions from nonroad spark-ignition 

engines. We also request comment on 

the possibility of relying on current or 

future published industry standards to 

establish designs for equipment and 

fueling containers that minimize 

refueling emissions under normal in-use 

conditions. 

Spitback and spillage are a particular 

concern for gasoline-fueled boats. 

Marine operators have reported that 

relatively large quantities of gasoline are 

released into the marina environment 

during refueling events. The American 

Boat and Yacht Council (ABYC) has a 

procedure in place to define a standard 

practice to address refueling. However, 

this procedure calls for testing by 

refueling up to a 75 percent fill level at 

a nominal flow rate of 5 gallons per 

minute. This procedure is clearly not 

consistent with prevailing practices and 

is not effective in preventing spills. We 

believe the most effective means of 

addressing this problem is for ABYC to 

revise their test procedure to reflect 

current practices. Specifically, we 

would recommend a procedure in 

which the marine fuel tank is filled at 

flow rates between 5 and 20 gallons per 

minute until automatic shutoff occurs. 

A variety of technological solutions 

are available to address spitback and 

spillage from marine vessels. The 

simplest would be a system much like 

is used on cars. A small-diameter tube 

could run along the filler neck from the 

top of the tank to a point near the top 

of the filler neck. Once liquid fuel 

would reach the opening of the filler 

neck and the extra tube, the fuel would 

go faster up the small-diameter tube and 

trigger automatic shutoff before the fuel 

climbs up the filler neck. This design 

would depend on the user to use the 

equipment properly and may not be 

fully effective, for example, with long 

filler necks and low refueling rates. An 

alternative design would involve a snug 

fit between the nozzle’s spout and the 

filler neck, which would allow for a 

tube to run from a point inside the tank 

(at any predetermined level) directly to 

the shutoff venturi on the spout. The 

pressure change from the liquid fuel in 

the tank reaching the tube’s opening 

would trigger automatic shutoff of the 

nozzle. This system would prevent 

overflowing fuel without depending on 

the user. These are just two of several 

possible configurations that would 

address fuel spillage from marine 

vessels. 

We request comment on the degree of 

fuel spillage with current technologies 

and practices with marine vessels. We 

request comment on the potential for 

ABYC standards to address fuel spillage 

or on the need for EPA to adopt such 

procedures and standards. We request 

comment on the specific procedures 

that would be appropriate for measuring 

spitback and spillage. Finally, we 

request comment on adopting 

provisions such as those in 40 CFR 

80.22 to regulate the dimensions of 

refueling nozzles for marine 

applications, including a specification 

of a nominal nozzle diameter of 

1.187±0.010 inches and nominal venturi 

placement 5⁄8 inch from the terminal 

end of the nozzle. 

(7) Summary Table of Proposed 

Evaporative Emission Standards 

Table VI–1 summarizes the proposed 

standards and implementation dates 

discussed above for evaporative 

emissions from Small SI equipment and 

Marine SI vessels. Where a standard 

does not apply to a given class of 

equipment, ‘‘NA’’ is used in the table to 

indicate ‘‘not applicable.’’ 

TABLE VI.–1.—PROPOSED EVAPORATIVE EMISSION STANDARDS AND MODEL YEAR DATES

Standard/ 

category 

Hose 

permeation 

Tank 

permeation Diurnal Diffusion Running loss 

Proposed Standards 

Standard level ............ 15 g/m2 /day .............. 1.5 g/m2 /day ............. 0.40 g/gal/day ........... 0.80 g/day ................. Design standard. 

Implementation Dates: Small SI Equipment 

Handheld .................... 2012 a b ...................... 2009–2013 c d ............ NA ............................. NA ............................. NA. 

Class I ........................ 2008 .......................... 2012 .......................... NA ............................. 2012 g ........................ 2012. 

Class II ....................... 2008 .......................... 2011 .......................... NA ............................. 2011 g ........................ 2011. 


sroberts on PROD1PC70 with PROPOSALS
28174 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE VI.–1.—PROPOSED EVAPORATIVE EMISSION STANDARDS AND MODEL YEAR DATES—Continued 

Standard/ 

category 

Hose 

permeation 

Tank 

permeation Diurnal Diffusion Running loss 

Implementation Dates: Marine Vessels 

Portable tanks ............ 2009 .......................... 2011 .......................... 2009 e ........................ NA ............................. NA. 

PWC ........................... 2009 .......................... 2011 .......................... 2009 .......................... NA ............................. NA. 

Other installed tanks .. 2009 .......................... 2012 .......................... 2010 f ......................... NA ............................. NA. 

a 2013 for small-volume families and cold weather equipment. 

bFuel line permeation standard of 175 g/m2 /day for cold-weather equipment. c 2.5 g/m2 /day for structurally integrated nylon fuel tanks. d 2009 for families certified in California, 2013 for small-volume families, 2011 for structurally integrated nylon fuel tanks, and 2010 for remaining families. e Design standard. 

fFuel tanks installed in nontrailerable boats (≥26 ft. in length) may meet a standard of 0.16 g/gal/day over an alternative test cycle. gAlternatively, may meet a design standard. 

D. Emission Credit Programs 

A common feature of mobile source 

emission requirements is an emission 

credit program that allows 

manufacturers to generate emission 

credits based on certified emission 

levels for engine families that are more 

stringent than the standard. See Section 

VII for background information and 

general provisions related to emission 

credit programs. 

We believe it is appropriate to 

consider compliance based on emission 

credits relative to permeation standards 

for fuel lines used with handheld 

engines and for fuel tanks used in all 

applications. As described above, the 

emission standards apply to the fuel 

tanks and fuel lines directly, such that 

we would generally expect component 

manufacturers to certify their products. 

However, we believe it is best to avoid 

placing the responsibility for 

demonstrating a proper emission credit 

balance on component manufacturers 

for three main reasons. First, it is in 

many cases not clear whether these 

components will be produced for one 

type of application or another. 

Component manufacturers might 

therefore be selling similar products 

into different applications that are 

subject to different standards—or no 

standards at all. Component 

manufacturers may or may not know in 

which application their products will be 

used. Second, there will be situations in 

which equipment manufacturers and 

boat builders take on the responsibility 

for certifying components. This may be 

the result of an arrangement with the 

component manufacturer, or equipment 

manufacturers and boat builders might 

build their own fuel tanks. We believe 

it would be much more difficult to 

manage an emission credit program in 

which manufacturers at different places 

in the manufacturing chain would be 

keeping credit balances. There would 

also be a significant risk of doublecounting of emission credits. Third, 

most component manufacturers would 

be in a position to use credits or 

generate credits, but not both. 

Equipment manufacturers and boat 

builders are more likely to be in a 

position where they would keep an 

internal balance of generating and using 

credits to meet applicable requirements. 

Our experience with other programs 

leads us to believe that an emission 

credit program that depends on trading 

is not likely to be successful. 

We are therefore proposing emission 

credit provisions in which equipment 

manufacturers and boat builders keep a 

balance of credits for their product line. 

Equipment manufacturers and boat 

builders choosing to comply based on 

emission credits would need to certify 

all their products that either generate or 

use emission credits. Component 

manufacturers would be able to produce 

their products with emission levels 

above or below applicable emission 

standards but would not be able to 

generate emission credits and would not 

need to maintain an accounting to 

demonstrate a balance of emission 

credits. 

We are aware that some component 

manufacturers would be making 

products that generate emission credits 

that would belong to equipment 

manufacturers or boat builders. 

Equipment manufacturers or boat 

builders could in turn use those 

emission credits to enable them to buy 

components from different competing 

component manufacturers. This would 

potentially put fuel tank manufacturers 

producing low-FEL products at a 

competitive disadvantage with other 

manufacturers producing high-FEL fuel 

tanks. We request comment on the best 

approach to setting up an ABT program. 

We specifically request comment on 

special provisions that may be 

appropriate to address these 

competitiveness issues for component 

manufacturers. 

(1) Averaging, Banking, and Trading for 

Nonhandheld Equipment and Marine 

Vessels 

We are proposing averaging, banking, 

and trading (ABT) provisions for fuel 

tank permeation from nonhandheld 

Small SI equipment and Marine SI 

vessels (see subpart H in parts 1045 and 

1054). See the following section for 

similar provisions for handheld Small 

SI equipment. 

We are aware of certain control 

technologies that would allow 

manufacturers to produce fuel tanks that 

reduce emissions more effectively than 

we would require. These technologies 

may not be feasible or practical in all 

applications, but we are proposing to 

allow equipment manufacturers using 

such low-emission technologies to 

generate emission credits. In other 

cases, an equipment manufacturer may 

want to or need to use emission credits 

that would allow for fuel tanks with 

permeation rates above the applicable 

standards. Equipment manufacturers 

would quantify positive or negative 

emission credits by establishing a 

Family Emission Limit (FEL) to define 

the applicable emission level, then 

factoring in sales volumes and useful 

life to calculate a credit total. This FEL 

could be based on testing done either by 

the component manufacturer or the 

equipment manufacturer. Through 

averaging, these emission credits could 

be used by the same equipment 

manufacturer to offset other fuel tanks 

in the same model year that do not have 

control technologies that control 

emissions to the level of the standard. 

Through banking, such an equipment 

manufacturer could use the emission 

credits in later model years to offset 

high-emitting fuel tanks. The emission 

credits could also be traded to another 

equipment manufacturer to offset that 

company’s high-emitting fuel tanks. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28175 

We believe an ABT program is 

potentially very advantageous for fuel 

tanks because of the wide variety of tank 

designs. The geometry, materials, 

production volumes, and market 

dynamics for some fuel tanks are well 

suited to applying emission controls but 

other fuel tanks pose a bigger challenge. 

The proposed emission credit program 

allows us to set a single standard that 

applies broadly without dictating that 

all fuel tanks be converted to use lowpermeation technology at the same time. 

We are requesting comment on one 

particular issue. We are not proposing to 

limit the life of evaporative emission 

credits under the proposed banking 

program. However, we are concerned 

that this could result in a situation 

where credits generated by a fuel tank 

sold in a model year are not used until 

many years later when the fuel tanks 

generating the credits have been 

scrapped and are no longer part of the 

fleet. EPA believes there may be value 

to limiting the use of credits to the 

period that the credit-generating fuel 

tanks exist in the fleet. For this reason, 

EPA requests comment on limiting the 

lifetime of the credits generated under 

the proposed evaporative emission ABT 

program to five years. The five-year 

period is consistent with the proposed 

useful life for fuel tank evaporative 

emissions. 

We are proposing not to allow 

manufacturers to generate emission 

credits by using metal fuel tanks. These 

tanks would have permeation rates well 

below the standard, but there is 

extensive use of metal tanks today, so it 

would be difficult to allow these 

emission credits without undercutting 

the stringency of the standard and the 

expected emission reductions from the 

standard. 

Emission control technologies and 

marketing related to portable marine 

fuel tanks are quite different than for 

installed tanks. Since these fuel tanks 

are not installed in vessels that are 

subject to emission standards, the fuel 

tank manufacturer would need to take 

on the responsibility for certification. As 

a result, we would treat these 

companies as both component 

manufacturer and equipment 

manufacturer with respect to their 

portable fuel tanks. As described above, 

we are proposing that component 

manufacturers not be responsible for 

compliance as part of an emission credit 

program. We would expect all portable 

fuel tank manufacturers to also make 

nonportable fuel tanks, which would 

again lead to a confusing combination of 

manufacturers maintaining credit 

balances to demonstrate compliance. In 

addition, most if not all portable fuel 

tanks are made using high-density 

polyethylene in a blow-molding 

process. The control technologies for 

these tanks are relatively 

straightforward and readily available so 

we do not anticipate that these 

companies will need emission credits to 

meet the proposed standards. We are 

therefore proposing to require portable 

marine fuel tanks to meet emission 

standards without an emission credit 

program. 

We are proposing not to allow crosstrading of emission credits between 

Small SI equipment and Marine SI 

vessels. The proposed standards are 

intended to be technology-forcing for 

each equipment category. We are 

concerned that cross-trading may allow 

marginal credits in one area to hamper 

technological advances in another area. 

We are also proposing not to allow 

credit exchanges with Small SI 

equipment certified in California 

because California has its own emission 

standards for these products. Similarly, 

if California ARB adopts different 

evaporative requirements or separate 

ABT provisions for Marine SI vessels, 

we would not allow credit exchanges 

with marine vessels certified in 

California. These restrictions are 

consistent with our existing ABT 

programs. We also would not allow 

credit exchanges between handheld and 

nonhandheld equipment or between 

Class I and Class II equipment. We are 

concerned that cross trading between 

these equipment types could give an 

unfair competitive advantage to 

equipment manufacturers with broader 

product lines. We request comment 

regarding whether the competitive 

nature of the market warrants such a 

restriction in cross-trading between 

Class I and Class II equipment. 

In the early years of the ABT program 

we are proposing not to have an FEL 

cap. This would give manufacturers 

additional time to use uncontrolled fuel 

tanks, primarily in small-volume 

applications, until they could convert 

their full product lines to having fuel 

tanks with permeation control. After an 

initial period of three years after the 

implementation date of the fuel tank 

standards, we are proposing an FEL cap 

of 5.0 g/m2 /day (8.3 g/m2 /day if tested 

at 40 °C). For Class II equipment, 

portable marine fuel tanks, and personal 

watercraft, the FEL cap would begin in 

2014. For Class I equipment, handheld 

equipment, and other installed marine 

fuel tanks, the FEL cap would begin in 

2015. See § 1045.107 and § 1054.110. 

For small volume, Small SI equipment 

families, we are proposing an FEL cap 

of 8.0 g/m2 /day (13.3 g/m2 /day if tested 

at 40 °C). The purpose of the FEL cap 

would be to prevent the long-term 

production of fuel tanks without 

permeation control, while still 

providing regulatory flexibility. We 

request comment on the level of the FEL 

that would be necessary to achieve this 

goal. 

While the FEL cap is intended to 

require manufacturers to move toward 

widespread use of emission control 

technologies, we are aware of 

technologies that have measured 

emission levels between the proposed 

standard and the proposed FEL cap. As 

a result, the effect of an FEL cap may be 

that there will be little or no use of 

emission credits as a compliance 

strategy once the FEL cap applies. We 

request comment on the usefulness of 

maintaining an ABT program after we 

implement an FEL cap. 

We are proposing that emission 

credits under the tank permeation 

standards would be calculated using the 

following equation: Credits [grams] = 

(Standard ¥ FEL) × useful life [years] × 

365 days/year × inside surface area [m2]. 

Both the standard and the FEL are in 

units of g/m2 /day based on testing at 

28 °C. 

As discussed earlier, we are proposing 

an alternative standard for tank 

permeation testing performed at 40 °C. 

Because permeation is higher at this 

temperature than the primary test 

temperature, emissions credits and 

debits calculated at this test temperature 

would be expected to be higher as well. 

An FEL 10 percent below the standard 

would generate 0.15 grams of credit for 

the primary standard and 0.25 grams of 

credit for the alternative standard. 

Therefore, we are proposing that credits 

and debits that are calculated based on 

the alternative standard be adjusted 

using a multiplicative factor of 0.6 (1.5/ 

2.5 = 0.6). 

We request comment on the need for 

averaging, banking and trading for fuel 

tanks and on the specific provisions 

proposed above. 

(2) Averaging, Banking, and Trading 

Program for Handheld Equipment 

We are proposing an ABT program for 

handheld equipment that would include 

fuel tanks and fuel lines. Under this 

program, a manufacturer would be able 

to use credits from fuel tanks to offset 

debits from fuel lines, or vice versa. 

This category of equipment generally 

involves very short sections of fuel 

lines, which are often made using 

complex, injection-molded designs. We 

believe an ABT program would help 

handheld equipment manufacturers 

meet fuel line permeation standards 

sooner than would otherwise be 

possible. 


sroberts on PROD1PC70 with PROPOSALS
28176 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

As discussed earlier, we are proposing 

a higher standard level of 2.5 g/m2 /day 

for structurally integrated handheld fuel 

tanks. This standard is intended to 

reflect the measured permeation rates 

and characteristics of materials used in 

these fuel tanks and manufacturer 

concerns regarding uncertainty about 

the permeation rates from tanks used in 

the wider range of products and the lack 

of definitive control strategies to reduce 

emissions while meeting other product 

requirements. A similar issue exists for 

cold-weather fuel lines, for which we 

are proposing a less stringent 

permeation standard of 175 g/m2 /day to 

address uncertainty associated with the 

availability of appropriate lowpermeation cold-weather materials in 

the time frame of the new standards. We 

are concerned that windfall credits that 

may be generated for these applications 

if products are produced that are below 

the adjusted standards, but do not meet 

the primary standards for fuel tanks and 

fuel lines. To address this issue, we are 

proposing that credits would only be 

earned below 1.5 g/m2 /day for fuel 

tanks and below 15 g/m2 /day for fuel 

lines on handheld equipment. To 

promote early introduction of lowpermeation products, we are proposing 

to allow manufacturers to be able to 

earn credits on this basis even before the 

permeation standards go into effect. 

Credit use would be calculated based on 

the applicable standards. Emission 

credits would otherwise be calculated 

using the same equation described in 

Section VI.D.1 above. 

Both the fuel line and fuel tank 

standards are in units of g/m2 /day. 

However, fuel line testing is performed 

at 23 °C while tank testing is performed 

at 28 °C. Because permeation tends to 

increase with increases in temperature, 

we request comment regarding whether 

the credits should be adjusted to 

account for temperature. This 

adjustment would be smaller than the 

adjustment described above for a 28 °C 

versus 40 °C test. 

For non-structurally integrated fuel 

tanks, we are proposing to apply an FEL 

cap of 5.0 g/m2 /day (8.3 g/m2 /day if 

tested at 40°C) beginning in 2015. For 

structurally integrated fuel tanks we are 

proposing an FEL cap of 3.0 g/m2 /day 

(5.0 g/m2 /day if tested at 40 °C) in 2015. 

We believe this cap gives adequate 

flexibility for manufacturers to address 

variability in the permeation rates of 

these fuel tanks. For small volume, 

Small SI equipment families (including 

handheld and nonhandheld equipment), 

we are proposing a long term FEL cap 

of 8.0 g/m2 /day (13.3 g/m2 /day if tested 

at 40°C) to provide additional regulatory 

flexibility where costs cannot be spread 

over high production volumes. We 

request comment on the need for 

continuing an ABT program once there 

is an FEL cap, as described for 

nonhandheld equipment above. 

(3) Other Evaporative Sources 

We are not proposing an emission 

credit program for other evaporative 

sources. We believe technologies are 

readily available to meet the applicable 

standards for fuel line permeation, 

diurnal emissions and diffusion 

emissions (see Section VI.H.). The 

exception to this is for fuel lines on 

handheld equipment as discussed 

above. In addition, the diurnal emission 

standards for portable marine fuel tanks 

and PWC fuel tanks are largely based on 

existing technology so any meaningful 

emission credit program with the 

proposed standards would result in 

windfall credits. The running loss 

standard is not based on emission 

measurements and refueling-related 

requirements are based on design 

specifications only, so it is not 

appropriate or even possible to calculate 

emission credits. 

(4) Early-Allowance Programs 

Manufacturers may in some cases be 

able to meet the proposed emission 

standards earlier than we would require. 

We are proposing provisions for 

equipment manufacturers using lowemission evaporative systems early to 

generate allowances before the 

standards apply. These early allowances 

could be used, for a limited time, after 

the implementation date of the 

standards to sell equipment or fuel 

tanks that have emissions above the 

standards. We are proposing two types 

of allowances. The first is for Small SI 

equipment as a whole where for every 

year that a piece of equipment is 

certified early, another piece of 

equipment could delay complying with 

the proposed standards by an equal time 

period beyond the proposed 

implementation date. The second is 

similar but would be just for the fuel 

tank rather than the whole equipment 

(Small SI or Marine SI). Equipment or 

fuel tanks certified for the purposes of 

generating early allowances would be 

subject to all applicable requirements. 

These allowances are similar to the 

emission credit program elements 

described above but they are based on 

counting compliant products rather than 

calculating emission credits. 

Establishing appropriate credit 

calculations would be difficult because 

the early compliance is in some cases 

based on products meeting different 

standards using different procedures. 

(a) Nonhandheld Small SI Equipment 

Many Small SI equipment 

manufacturers are currently certifying 

products to evaporative emission 

standards in California. The purpose of 

the proposed early-allowance program 

is to provide an incentive for 

manufacturers to begin selling lowemission products nationwide. We are 

proposing to give allowances to 

manufacturers for equipment meeting 

the California evaporative emission 

standards that are sold in the United 

States outside of California and are 

therefore not subject to California’s 

emission standards. Manufacturers 

would need to have California 

certificates for these equipment types. 

See § 1054.145. 

Allowances could be earned in any 

year before 2012 for Class I equipment 

and before 2011 for Class II equipment. 

We are proposing that the allowances 

may be used through the 2014 model 

year for Class I and through the 2013 

model year for Class II equipment. We 

are proposing not to allow trading of 

allowances between Class I and Class II. 

To keep this program simpler, we are 

not proposing to adjust the allowances 

based on the anticipated emission rates 

from the equipment. Therefore, we 

believe it is necessary to at least 

distinguish between Class I and Class II 

equipment. We request comment on the 

early allowance program described 

above for nonhandheld Small SI 

equipment. 

(b) Fuel Tanks 

We are also proposing an earlyallowance program for nonhandheld 

Small SI equipment for fuel tanks (see 

§ 1054.145). This program would be 

similar to the program described above 

for equipment allowances, except that it 

would be for fuel tanks only. We would 

accept California-certified 

configurations. Allowances could be 

earned prior to 2011 for Class II 

equipment and prior to 2012 for Class 

II equipment; allowances could be used 

through 2013 for Class II equipment and 

through 2014 for Class II equipment. 

Allowances would not be exchangeable 

between Class I and Class II equipment. 

See Section V.E.3 for a description of 

how this provision would interact with 

the proposed transition program for 

equipment manufacturers. 

The proposed early-allowance 

program for marine fuel tanks would be 

similar except that there are no 

California standards for these tanks (see 

§ 1045.145). Manufacturers certifying 

early to the proposed fuel tank 

permeation standards would be able to 

earn allowances that they could use to 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28177 

85Society of Automotive Engineers Surface 

Vehicle Standard, ‘‘Fuel and Oil Hoses,’’ SAE J30, 

June 1998 (Docket EPA–HQ–OAR–2004–0008–

0176). 

86SAE Recommended Practice J1527, ‘‘Marine 

Fuel Hoses,’’ 1993, (Docket EPA–HQ–OAR–2004–

0008–0195–0177). 

87ASTM Fuel C is a mix of equal parts toluene 

and isooctane. We refer to gasoline blended with 

ethanol as E10. 

88SAE Recommended Practice J1737, ‘‘Test 

Procedure to Determine the Hydrocarbon Losses 

from Fuel Tubes, Hoses, Fittings, and Fuel Line 

Assemblies by Recirculation,’’ 1997, (Docket EPA–

HQ–OAR–2004–0008–0178). 

offset high-emitting fuel tanks after the 

proposed standards go into place. We 

are proposing not to allow cross-trading 

of allowances between portable fuel 

tanks, personal watercraft, and other 

installed fuel tanks. Each of these 

categories includes significantly 

different tank sizes and installed tanks 

have different implementation dates and 

are expected to use different permeation 

control technology. For portable fuel 

tanks and personal watercraft, 

allowances could be earned prior to 

2011 and used through the 2013 model 

year. For other installed tanks, 

allowances could be earned prior to 

2012 and used through the 2014 model 

year. 

E. Testing Requirements 

Compliance with the emission 

standards is determined by following 

specific testing procedures. This section 

describes the proposed test procedures 

for measuring fuel line permeation, fuel 

tank permeation, diurnal emissions, and 

diffusion emissions. We also describe 

measurement procedures related to 

running loss emissions. As discussed in 

Section VI.H, we are proposing designbased certification as an alternative to 

testing for certain standards. 

(1) Fuel Line Permeation Testing 

Procedures 

We are proposing that fuel line 

permeation be measured at a 

temperature of 23 ± 2 °C using a weightloss method similar to that specified in 

SAE J30 85 and J1527 86 recommended 

practices (see § 1060.515). We are 

proposing two modifications to the SAE 

recommended practice. The first 

modification is for the test fuel to 

contain ethanol; the second 

modification is to require 

preconditioning of the fuel line through 

a fuel soak. These modifications are 

described below and are consistent with 

our current requirements for 

recreational vehicles. 

(a) Test Fuel 

The recommended practice in SAE 

J30 and J1527 is to use ASTM Fuel C 

(defined in ASTM D471–98) as a test 

fuel. We are proposing to use a test fuel 

containing 10 percent ethanol. We 

believe the test fuel must contain 

ethanol because it is commonly blended 

into in-use gasoline and because ethanol 

substantially increases the permeation 

rates for many materials. 

Specifically, we are proposing to use 

a test fuel of ASTM Fuel C blended with 

10 percent ethanol by volume (CE10).87

Manufacturers have expressed support 

of this test fuel because it is a consistent 

test fluid compared to gasoline and 

because it is widely used today by 

industry for permeation testing. In 

addition, most of the data used to 

develop the proposed fuel line 

permeation standards were collected on 

this test fuel. This fuel is allowed today 

as one of two test fuels for measuring 

permeation from fuel lines under the 

recreational vehicle standards. 

We request comment on allowing 

permeation testing using EPA 

certification gasoline (known as 

indolene and specified in 40 CFR 

1065.710) blended with 10 percent 

ethanol as the test fuel (IE10). This test 

fuel is also specified in the recreational 

vehicle standards and has the advantage 

of being more similar to in-use fuel than 

CE10. Based on data contained in 

Chapter 5 of the Draft RIA, most 

materials used in fuel line constructions 

have lower permeation rates on IE10 

than CE10. Because the proposed 

standards are based primarily on data 

collected using CE10 as a test fuel, we 

also request comment on how the level 

of the standard would need to be 

adjusted for testing performed on IE10. 

(b) Preconditioning Soak 

The second difference from weightloss procedures in SAE practices is in 

fuel line preconditioning. We believe 

the fuel line should be preconditioned 

with an initial fuel fill followed by a 

long enough soak to ensure that the 

permeation rate has stabilized. We are 

proposing a soak period of four to eight 

weeks at 23 ± 5 °C. Manufacturers 

should use the longer soak period as 

necessary to achieve a stabilized 

permeation rate for a given fuel line 

design, consistent with good 

engineering judgment. For instance, 

thick-walled marine fuel line may take 

longer to reach a stable permeation rate 

than the fuel line used in Small SI 

equipment. After this fuel soak, the fuel 

reservoir and fuel line would be drained 

and immediately refilled with fresh test 

fuel prior to the weight-loss test. We 

request comment on the need to require 

a longer fuel soak, especially for marine 

lines. 

(c) Alternative Approaches 

We also propose to allow permeation 

measurements using alternative 

equipment and procedures that provide 

equivalent results (see § 1060.505). To 

use these alternative methods, 

manufacturers would first need to get 

our approval. Examples of alternative 

approaches that we anticipate 

manufacturers may use are the 

recirculation technique described in 

SAE J1737 or enclosure-type testing 

such as in 40 CFR part 86.88 Note that 

the proposed test fuel, test temperatures, 

and preconditioning soak described 

above would still apply. Because 

permeation increases with temperature 

we would accept data collected at 

higher temperatures (greater than 23 °C) 

for a demonstration of compliance. 

For portable marine fuel tanks, the 

fuel line assembly from the engine to 

the fuel tank typically includes two 

sections of fuel line with a primer bulb 

in-between and quick-connect 

assemblies on either end. We are 

proposing a provision to allow 

manufacturers to test the full assembly 

as a single fuel line to simplify testing 

for these fuel line assemblies (see 

§ 1060.102). This gives the manufacturer 

the flexibility to use a variety of 

materials as needed for performance 

reasons while meeting the fuel line 

permeation standard for the fully 

assembled product. Measured values 

would be based on the total measured 

permeation divided by the total internal 

surface area of the fuel line assembly. 

However, where it is impractical to 

calculate the internal surface area of 

individual parts of the assembly, such 

as a primer bulb, we would allow a 

simplified calculation that treats the full 

assembly as a straight fuel line. This 

small inaccuracy would cause reported 

emission levels (in g/m2/day) to be 

slightly higher so it would not 

jeopardize a manufacturer’s effort to 

demonstrate compliance with the 

applicable standard. 

We request comment on the above 

approaches for fuel line permeation 

testing and on the proposed test fuel. 

(2) Fuel Tank Permeation Testing 

Procedures 

The proposed test procedure for fuel 

tank permeation includes 

preconditioning, durability simulation, 

and a weight-loss permeation test (see 

§ 1060.520). The preconditioning and 

the durability testing may be conducted 


sroberts on PROD1PC70 with PROPOSALS
28178 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

89 Draft SAE Information Report J1769, ‘‘Test 

Protocol for Evaluation of Long Term Permeation 

Barrier Durability on Non-Metallic Fuel Tanks,’’

(Docket EPA–HQ–OAR–2004–0008–0195). 

simultaneously; manufacturers would 

put the tank through durability testing 

while the tank is undergoing its 

preconditioning fuel soak to reach a 

stabilized permeation level. We request 

comment on the proposed tank 

permeation test procedures and options. 

(a) Test Fuel 

Similar to the proposed fuel line 

testing procedures, we are proposing to 

use a test fuel containing 10 percent 

ethanol to help ensure in-use emission 

reductions with the full range of in-use 

fuels. We are proposing to specify IE10 

as the test fuel; this is made up of 90 

percent certification gasoline and 10 

percent ethanol (see 40 CFR 1065.710). 

This is the same test fuel specified for 

testing fuel tanks for recreational 

vehicles. In addition, IE10 is 

representative of in-use test fuels. We 

are proposing that Fuel CE10 may be 

used as an alternative test fuel. Data in 

Chapter 5 of the Draft RIA suggest that 

permeation tends to be somewhat higher 

on CE10 than IE10, so testing on CE10 

should be an acceptable demonstration 

of compliance. We request comment on 

the proposed test fuels. 

We included a provision allowing 

recreational vehicle manufacturers to 

perform emission measurements after 

preconditioning using IE10. This 

allowance has created substantial 

confusion and necessitated including 

additional provisions to prevent 

manufacturers from exercising the test 

option in a way that undermines the 

objective of maintaining a procedure 

that accounts for the effect of ethanol. 

As a result, we believe it is appropriate 

to propose a test procedure for Small SI 

equipment and Marine SI vessels that 

maintains a consistent approach by 

including ethanol in the test fuel for 

both preconditioning and emission 

measurements. We request comment on 

this approach. 

(b) Preconditioning Fuel Soak 

Before testing fuel tanks for 

permeation, the fuel tank must be 

preconditioned by allowing it to sit with 

fuel inside until the hydrocarbon 

permeation rate has stabilized. Under 

this step, we are proposing that the fuel 

tank be filled with test fuel and 

soaked—either for 20 weeks at 28 ± 5 °C 

or for 10 weeks at 43 ± 5 °C. The 

manufacturer may need to use a longer 

soak period if necessary to achieve a 

stabilized permeation rate for a given 

fuel tank, consistent with good 

engineering judgment. 

The tank would have to be sealed 

during this fuel soak and we are 

proposing that any components that are 

directly mounted to the fuel tank, such 

as a fuel cap, must be attached. Other 

openings, such as fittings for fuel lines 

or petcocks, would be sealed with 

impermeable plugs. In addition, if there 

is a vent path through the fuel cap, that 

vent path may be sealed. Alternatively, 

we are proposing that the opening could 

be sealed for testing and the fuel cap 

tested separately for permeation 

(discussed below). If the fuel tank is 

designed to have a separate fill neck 

between the fuel cap and the tank that 

is at least 12 inches long and at least 6 

inches above the top of the fuel tank, the 

tank may be sealed with something 

other than a production fuel cap. 

Manufacturers may do the durability 

testing described below during the time 

period specified for preconditioning. 

The time spent in durability testing may 

count as preconditioning time as long as 

the fuel tank has fuel inside the entire 

time. During the slosh testing, a fuel fill 

level of 40 percent would be considered 

acceptable for the fuel soak. Otherwise, 

we are proposing to require that the fuel 

tank be filled to nominal capacity 

during the fuel soak. 

(c) Durability Tests 

We are proposing three tests to 

evaluate the durability of fuel tank 

permeation controls: (1) Fuel sloshing; 

(2) pressure-vacuum cycling; and (3) 

ultraviolet exposure. The purpose of 

these deterioration tests would be to 

help ensure that the technology is 

durable under the wide range of in-use 

operating conditions. For sloshing, the 

fuel tank would be filled to 40 percent 

capacity with E10 fuel and rocked for 

one million cycles. The pressurevacuum testing would consist of 10,000 

cycles from ¥0.5 to 2.0 psi. These two 

proposed durability tests are based on 

draft recommended SAE practice.89 The 

third durability test would be intended 

to assess potential impacts of ultraviolet 

sunlight (i.e., light with wavelength 

ranging from 300 to 400 nanometers) on 

the durability of surface treatment. In 

this test, the tank would be exposed to 

ultraviolet light with an intensity of at 

least 0.40 W-hr/m2/min on the tank 

surface for 450 hours. Alternatively, we 

are proposing the tank could be exposed 

to direct natural sunlight for an 

equivalent period of time. 

We are proposing to include a 

provision that would allow 

manufacturers to omit one or more of 

the durability tests if it is not 

appropriate for a certain tank design. 

For example, coextruded plastic tanks 

rely on a thin layer of material within 

the wall of the tank. This material is 

never exposed to sunlight or liquid fuel 

so the sloshing, pressure, and 

ultraviolet-exposure tests would not be 

necessary. At the same time, we request 

comment on whether other durability 

tests would be necessary to ensure that 

the fuel tank would not be compromised 

for safety due to changes to address 

permeation. Examples may be 

temperature cycling or impact testing. 

(d) Weight-Loss Test 

Following the fuel soak, we are 

proposing that the fuel tank must be 

drained and refilled with fresh fuel 

immediately after to prevent the fuel 

tank from drying out. The tank would 

have to be sealed within eight hours 

after refreshing the fuel at the end of the 

soak period. The permeation rate from 

fuel tanks would be measured by 

comparing mass measurements of the 

tank before and after a soaking period of 

at least two weeks at a temperature of 

28 ± 2 °C. In the case of fuel tanks with 

very low permeation, the weight loss of 

the fuel tank over two week period 

could be too small to obtain an accurate 

measurement. We are proposing that 

manufacturers may extend the test 

period by two weeks to obtain an 

accurate measurement for fuel tanks 

with low permeation rates, consistent 

with good engineering judgment. 

A change in atmospheric pressure 

over the weeks of testing can affect the 

accuracy of measured weights for testing 

due to the buoyancy of the fuel tank. 

The buoyancy effect on emission 

measurements is proportional to the 

volume of the fuel tank, so this 

procedure is appropriate even for testing 

very small fuel tanks. To address this 

we are proposing a procedure in which 

a reference fuel tank filled with sand or 

some other inert material to the 

approximate total weight of the test tank 

be used to zero the scale used for 

measuring the test tank. This would 

result in measured and reported values 

representing the change in mass from 

permeation losses rather than a 

comparison of absolute masses. This is 

similar to an approach in which 

weighing would determine absolute 

masses with a mathematical correction 

to account for the effects of buoyancy. 

We believe the proposed approach is 

better because it minimizes the 

possibility of introducing or propagating 

error. 

We propose to allow permeation 

measurements for certification using 

alternative equipment and procedures 

that provide equivalent results. To use 

these alternative methods, 

manufacturers would first need to get 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28179 

90See 40 CFR part 86, subpart B, for the 

automotive evaporative emission test procedures. 

91 Volatility is specified based on a procedure 

known as Reid Vapor Pressure (see ASTM D 323–

99a). 

our approval. An example of an 

alternative weight-loss measurement 

procedure would be to test the fuel tank 

in a SHED and determine the 

permeation by measuring the 

concentration of hydrocarbons in the 

enclosure. 

(e) Fuel Cap Permeation Testing 

As discussed above, we are proposing 

that manufacturers would have the 

option to test the fuel cap separately 

from the tank and combine the results 

to determine the total tank permeation 

rate. In this case, the permeation test 

would be performed as described above 

except that the fuel cap would be 

mounted on an impermeable reservoir 

such as a metal or glass tank. The 

volume of the test reservoir would have 

to be at least one liter to ensure 

sufficient fuel vapor exposure. We are 

proposing that the ‘‘tank’’ surface area 

for calculating the results would be the 

smallest inside cross sectional area of 

the opening on which the cap is 

mounted. The fuel cap would need to be 

tested in conjunction with a 

representative gasket. In the case where 

the vent path is through grooves in the 

gasket, another gasket of the same 

material and dimensions, without the 

vent grooves, may be used. In the case 

where the vent is through the cap, that 

vent would be sealed for testing. 

(3) Diurnal Emission Testing Procedures 

The proposed test procedure for 

diurnal emissions from installed marine 

fuel tanks involves placing the fuel tank 

in a SHED, varying the temperature over 

a prescribed profile, and measuring the 

hydrocarbons escaping from the fuel 

tank (see § 1060.525). The final result 

would be reported in grams per gallon 

where the grams are the mass of 

hydrocarbons escaping from the fuel 

tank over 24 hours and the gallons are 

the nominal fuel tank capacity. The 

proposed test procedure is derived from 

the automotive evaporative emission 

test with modifications specific to 

marine applications.90 We request 

comment on the proposed diurnal test 

procedures described below. 

(a) Temperature Profile 

We believe it is appropriate to base 

diurnal measurements on a summer day 

with ambient temperatures ranging from 

72 to 96 °F (22.2 to 35.6 °C). This 

temperature profile, which is also used 

for automotive testing, represents a hot 

summer day when ground-level ozone 

formation is most likely. Due to the 

thermal mass of the fuel and, in some 

cases, the inherent insulation provided 

by the boat hull, the fuel temperatures 

would cover a narrower range. Data 

presented in Chapter 5 of the Draft RIA 

suggest that the fuel temperature in an 

installed marine fuel tank would see a 

total change of about half the ambient 

temperature swing. We are therefore 

proposing a test temperature range of 78 

to 90 °F (25.6 to 32.2 °C) for installed 

marine fuel tanks. This testing would be 

based on fuel temperature instead of 

ambient temperature. 

We are proposing an alternative, 

narrower temperature range for fuel 

tanks installed in nontrailerable boats 

(≥26 ft.). Data presented in Chapter 5 of 

the Draft RIA suggest that the fuel 

temperature swing in a boat stored in 

the water would be about 20 percent of 

the ambient temperature swing. Based 

on this relationship, we are proposing 

an alternative temperature cycle for 

tanks installed in nontrailerable boats of 

81.6 to 86.4 °F (27.6 to 30.2 °C). This 

alternative temperature cycle would be 

associated with an alternative standard 

as discussed earlier. See the proposed 

regulations at § 1060.525 for further 

detail. We request comment on the 

proposed test temperatures, especially 

on the appropriateness of the alternative 

test procedure and standard for tanks 

installed in nontrailerable boats. 

The automotive diurnal test 

procedure includes a three-day 

temperature cycle to ensure that the 

carbon canister can hold at least three 

days of diurnal emissions without 

vapors breaking through to the 

atmosphere. For marine vessels using 

carbon canisters as a strategy for 

controlling evaporative emissions, we 

are proposing a three-day cycle here for 

the same reason. In the automotive test, 

the canister is loaded and then purged 

by the engine during a warm-up drive 

before the first day of testing. Here, we 

are proposing a different approach 

because we anticipate that canisters on 

marine applications will be passively 

purged. Before the first day of testing, 

the canister would be loaded to full 

working capacity and then run over the 

diurnal test temperature cycle, starting 

and ending at the lowest temperature, to 

allow one day of passive purging. The 

test result would then be based on the 

highest recorded value during the 

following three days. 

For fuel systems using a sealed system 

(including those that rely on pressurerelief valves with no canister), we 

believe a three-day test would not be 

necessary. Before the first day of testing, 

the fuel would be stabilized at the initial 

test temperature. Following this 

stabilization, the SHED would be 

purged, followed by a single run 

through the diurnal temperature cycle. 

Because this technology does not 

depend on purging or storage capacity 

of a canister, multiple days of testing 

should not be necessary. We are 

therefore proposing a one-day test for 

the following technologies: Sealed 

systems, sealed systems with a pressurerelief valve, bladder fuel tanks, and 

sealed fuel tanks with a volumecompensating air bag. We request 

comment on this simplified approach. 

(b) Test Fuel 

Consistent with the automotive test 

procedures, we are proposing to specify 

a gasoline test fuel with a volatility of 

9 psi.91 We are not proposing that the 

fuel used in diurnal emission testing 

include ethanol for two reasons. First, 

we do not believe that ethanol in the 

fuel affects the diurnal emissions or 

control effectiveness other than the 

effect that ethanol in the fuel may have 

on fuel volatility. Second, in-use fuels 

containing ethanol are generally 

blended in such a way as to control for 

ethanol effects in order to meet fuel 

volatility requirements. We request 

comment on the proposed test fuel and 

whether it would be appropriate to 

specify a test fuel blended with ethanol 

either as the primary test fuel or as an 

optional test fuel. If so, we request 

comment regarding whether the 

volatility of the test fuel should be 

controlled to 9 psi or if ethanol should 

be blended into certification gasoline. 

We also request comment on the effect 

of ethanol in the fuel on controlled 

diurnal emissions and if the standard 

would need to be adjusted to account 

for ethanol in the test fuel. 

Diurnal emissions are not only a 

function of temperature and fuel 

volatility, but of the size of the vapor 

space in the fuel tank. Consistent with 

the automotive procedures, we are 

proposing that the fill level at the start 

of the test be 40 percent of the nominal 

capacity of the fuel tank. Nominal 

capacity of the fuel tank would be 

defined as the a fuel tank’s volume as 

specified by the fuel tank manufacturer, 

using at least two significant figures, 

based on the maximum volume of fuel 

the tank can hold with standard 

refueling techniques. The ‘‘permanent’’

vapor space above a fuel tank that has 

been filled to capacity would not be 

considered in the nominal capacity of 

the fuel tank. 


sroberts on PROD1PC70 with PROPOSALS
28180 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(c) Fuel Tank Configuration 

The majority of marine fuel tanks are 

made of plastic. Even plastic fuel tanks 

designed to meet our proposed 

standards would be expected to have 

some amount of permeation. However, 

over the length of the diurnal test, if it 

were performed on a new tank that had 

not been previously exposed to fuel, the 

effect of permeation on the test results 

should be insignificant. For fuel tanks 

that have reached their stabilized 

permeation rate (such as testing on inuse tanks), we believe it would be 

appropriate to correct for permeation. In 

such a case, we propose that the 

permeation rate be measured from the 

fuel tank and subtracted from the final 

diurnal test result. The fuel tank 

permeation rate would be measured 

with the established procedure for 

measuring permeation emissions, except 

that the test fuel would be the same as 

that used for diurnal emission testing. 

This test measurement would have to be 

made just before the diurnal emission 

test to ensure that the permeation rate 

does not change when measuring 

diurnal emissions. In no case would we 

allow a permeation correction higher 

than that corresponding to the 

applicable permeation standard for a 

tank with a given inside surface area. 

Because not correcting for permeation 

represents the worst-case test result, we 

would accept data from manufacturers 

in which no permeation correction was 

applied. We request comment on this 

approach. 

(4) Diffusion Testing Procedures 

The proposed procedure for 

measuring diffusion emissions is very 

similar to that for diurnal emissions, 

with three primary differences (see 

§ 1060.530). First, the fuel tank should 

be filled to 90 percent of its nominal 

capacity. Second, the fuel tank is held 

in a controlled environment to stabilize 

at test temperatures. Third, the test run 

is proposed to be six hours in length. 

Testing has shown that diffusion occurs 

at a steady rate, so we would want 

manufacturers to be able to run a full 

test in a single day’s shift rather than 

running a test for a full 24 hours. 

Measured emissions are then adjusted 

mathematically for comparison to the 

gram-per-day standard. 

There is some concern that fluctuating 

temperatures during this test could 

cause small diurnal effects that would 

result in higher measured emissions. 

Filling the fuel tank to 90 percent would 

help minimize the potential for diurnal 

effects by increasing the thermal mass of 

the fuel and by reducing the volume of 

the vapor space. In addition, the 

proposed diffusion standard is based on 

data collected from testing in this 

manner. 

As described above, we are proposing 

to allow fuel cap manufacturers to 

voluntarily certify their fuel caps to 

diffusion standard. This would require 

a separate test with a fuel cap mounted 

on a test tank with a representative 

sealing configuration of production 

tanks. 

As described for diurnal 

measurements, we are proposing that 

manufacturers would be able to 

separately quantify permeation 

emissions occurring during the 

diffusion test and subtract the 

permeation contribution so the reported 

result isolates the test to quantifying 

diffusion emissions. 

(5) Measurement Procedures Related to 

Running Loss Emissions 

We do not specify a procedure for 

measuring running loss emissions, but 

we are proposing to allow 

manufacturers to demonstrate control of 

running losses by showing that fuel 

temperatures will not increase by more 

than 8 °C during normal operation (see 

§ 1060.104 and § 1060.535). This 

requires testing to measure fuel 

temperatures on each equipment 

configuration. We are proposing a fuel 

temperature test that includes filling the 

fuel tank with commercially available 

gasoline and operating the equipment 

for one hour over a normal in-use duty 

cycle with a load factor approximately 

the same as the specified test cycle. If 

the equipment consumes 80 percent of 

the fuel capacity in one hour of 

operation, a shorter period may be used 

based on time until the fuel tank is 

drained to 20 percent capacity. We are 

proposing that manufacturers would be 

required to document a description of 

the operation and include grass height 

or equivalent variables affecting load. 

We are proposing that the testing 

must occur outdoors with a beginning 

ambient temperature ranging from 20 to 

30 °C with no precipitation and with 

average wind speeds below fifteen miles 

per hour. The ambient temperature 

would have to be steady or increasing 

during the test and it must be during a 

mostly sunny time period with a 

maximum cloud cover of 25 percent as 

reported by the nearest local airport 

making hourly meteorological 

observations. 

We are proposing that the temperature 

of the fuel in the tank must be within 

2 °C of (but not exceeding) the ambient 

temperature at the beginning of the test. 

Fuel temperature would be measured 

with a thermocouple positioned in the 

fuel but not touching the inside walls or 

bottom of the tank. Ambient 

temperature would be measured on-site 

in the shade. The equipment 

configuration meets the requirement to 

control running losses if measured 

minimum and maximum fuel 

temperatures throughout the period of 

operation do not differ by more than 

8 °C. In the case were the equipment has 

multiple fuel tanks, the temperature 

would have to be measured on each fuel 

tank. We request comment on this 

procedure for measuring fuel 

temperatures. 

We are also proposing to allow 

manufacturers to use an alternative 

procedure in a laboratory with prior 

EPA approval. The alternative test 

procedure would need to simulate 

outdoor conditions and consider engine 

operation, solar load, temperature, and 

wind speed. The manufacturer would be 

required to make a demonstration of 

equivalency. 

F. Certification and Compliance 

Provisions 

Sections VII and VIII describe several 

general provisions related to certifying 

emission families and meeting other 

regulatory requirements. This section 

notes several particulars related to 

applying these general provisions to 

evaporative emissions. 

Marine vessels do not always include 

installed fuel systems. Manufacturers of 

vessels without installed fuel systems 

do not have the ability to control engine 

or fuel system design parameters. We 

are therefore proposing that vessels 

without an installed fuel system would 

not be subject to the proposed standards 

(see § 1045.5). As a result, it is necessary 

for us to treat manufacturers of 

uninstalled fuel-system components as 

the equipment manufacturer with 

respect to evaporative emission 

standards. This includes manufacturers 

of outboard engines (including any fuel 

lines or fuel tanks produced with the 

engine), portable fuel tanks, and the fuel 

line system (including fuel line, primer 

bulb, and connectors). 

For ease of reference, Small SI 

equipment manufacturers, Marine SI 

boat builders, and manufacturers of 

portable marine fuel tanks (and 

associated fuel-system components) are 

all referred to as equipment 

manufacturers in this section. 

(1) Liability for Certification and 

Compliance 

The proposed standards for fuel lines 

and fuel tanks apply to any such 

components that are used with or 

intended to be used with Small SI 

engines or Marine SI engines (see 

§ 1060.1 and § 1060.601). Section VI.C 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28181 

describes for each standard which 

manufacturer is expected to certify. 

Engine manufacturers would describe 

these fuel-system components in the 

same certification application in which 

they document their compliance with 

exhaust emission standards (see 

§ 1045.201 and § 1054.201). 

In most cases, nonroad standards 

apply to the manufacturer of the engine 

or the manufacturer of the nonroad 

equipment. Here, the products subject to 

the standards (fuel lines and fuel tanks) 

are typically manufactured by a 

different manufacturer. In most cases 

the engine manufacturers do not 

produce complete fuel systems and 

would therefore not be in a position to 

do all the testing and certification work 

necessary to cover the whole range of 

products that will be used. We are 

therefore proposing an arrangement in 

which manufacturers of fuel-system 

components are in most cases subject to 

the standards and are subject to 

certification and other compliance 

requirements associated with the 

applicable standards. We are proposing 

to prohibit the introduction into 

commerce of noncompliant fuel-system 

components that are intended for 

installation in Small SI equipment or 

Marine SI vessels unless the component 

manufacturer either certifies the 

component or has a contractual 

arrangement for each equipment 

manufacturers using their products to 

certify those components. As a matter of 

good practice, any components not 

intended for installation in Small SI 

equipment or Marine SI vessels should 

be labeled accordingly to prevent the 

possibility of improper installation to 

prevent confusion in this regard. 

As described in Section VI.D, 

component manufacturers may certify 

with measured emission levels showing 

that the components meet the emission 

standard, or they may certify to an FEL 

above or below the standard. If any 

component manufacturer certifies using 

an FEL, the FEL becomes the emission 

standard for that emission family for all 

practical purposes. The component 

manufacturer however would not be 

required to meet any overall average for 

their products, but would have the 

option to certify to an FEL above or 

below the standard. This is to facilitate 

the use of ABT by equipment 

manufacturers, as discussed below. 

Equipment manufacturers would be 

subject to all the proposed evaporative 

standards. This applies for the general 

standards described above with respect 

to fuel caps, miscellaneous fuel-system 

components, and refueling. These 

standards generally depend on design 

specifications rather than emission 

measurements, so we believe it is 

appropriate to simply deem these 

products to be certified if they are 

designed and produced to meet the 

standards we specify. The vessel 

manufacturer would also need to keep 

records of the components used (see 

§ 1060.210). This would allow us, by 

operation of the regulation, to have 

certified products without requiring the 

paperwork burden associated with 

demonstrating compliance with these 

relatively straightforward specifications. 

Manufacturers could optionally apply 

for and receive a certificate of 

conformity with respect to these general 

standards, but this would not be 

necessary and we would expect this to 

be a rare occurrence. 

Equipment manufacturers would also 

be subject to all the proposed emission 

standards. Equipment manufacturers 

may comply with requirements related 

to evaporative emission standards in 

three different situations. First, 

equipment manufacturers might install 

only components certified by the 

component manufacturer, without using 

emission credits. In this case all the 

components must meet the proposed 

emission standard or have an FEL below 

the standard. Such an equipment 

manufacturer would be subject to the 

fuel line and fuel tank standards, but 

would be able to satisfy their 

requirements by using certified 

components. They would need to apply 

for certification only with respect to the 

remaining emission standards they are 

subject to, such as running loss 

emissions (if applicable). Equipment 

manufacturers must also design and 

produce their equipment to meet the 

requirements specified in § 1060.101(f), 

though this would not necessarily 

involve an application for certification. 

Such an equipment manufacturer would 

generally need only to use certified 

components, add an emission label, and 

follow any applicable emission-related 

installation instructions to ensure that 

certified components are properly 

installed. This is similar to an 

equipment manufacturer that is required 

to properly install certified engines in 

its equipment, except that the 

equipment manufacturer must meet 

general design standards and shares the 

liability for meeting emission standards. 

Second, equipment manufacturers 

may be required to certify certain 

components based on contractual 

arrangements with the manufacturer of 

those components. In this case, the 

equipment manufacturer’s certification 

causes the component manufacturer to 

no longer be subject to the standard. 

This approach might involve the 

equipment manufacturer relying on test 

data from the component manufacturer. 

The equipment manufacturer might also 

be producing its own fuel tanks for 

installation in its equipment, in which 

case it would be subject to the standards 

and all requirements related to 

certification and compliance. In either 

case, the equipment manufacturer 

would take on all the responsibilities 

associated with certification and 

compliance with respect to those 

components. 

Third, equipment manufacturers may 

comply with evaporative emission 

requirements by using certified 

components, some of which are certified 

to an FEL above the standard. The 

equipment manufacturer would then 

comply based on emission credits. In 

this case, the equipment manufacturer 

would take on all the certification and 

compliance responsibilities with respect 

to any components that are part of the 

equipment manufacturer’s emission 

credit calculations. Equipment 

manufacturers would generally use only 

certified components for meeting 

evaporative emission requirements, but 

they might also hold the certificate for 

such components. For purposes of 

certification, equipment manufacturers 

would not need to submit new test data 

if they use certified components. 

Equipment manufacturers would make 

an annual accounting to demonstrate a 

net balance of credits for the model 

year. Under this approach, the 

component manufacturer would 

continue to be subject to the standards 

for its products and be required to meet 

the certification and compliance 

responsibilities related to the standard. 

However, as in the first option, the 

component manufacturer would not be 

required to meet any averaging 

requirements or be required to use 

emissions credits. Where equipment 

manufacturers use ABT with 

components that have already been 

certified by the component 

manufacturer, there will be overlapping 

certifications between the two parties. 

We propose to address this by 

specifying that all parties are 

responsible for meeting applicable 

requirements associated with the 

standards to which they have certified, 

but if any specific requirement is met by 

one company, we will consider the 

requirement to be met for all companies 

(see § 1060.5). For example, either the 

component manufacturer or the 

equipment manufacturer could honor 

warranty claims, but we may hold both 

companies responsible for the violation 

if there is a failure to meet warranty 

obligations. 

Similarly, if we find that new 

equipment is sold without a valid 


sroberts on PROD1PC70 with PROPOSALS
28182 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

certificate of conformity for the fuel 

lines or fuel tanks, then the equipment 

manufacturer and all the affected fuelsystem manufacturers subject to the 

standards would be liable for the 

noncompliance (see § 1060.601). 

Liability for recall of noncompliant 

products would similarly fall to any 

manufacturer whose product is subject 

to the standard, as described above. If 

more than one manufacturer is subject 

to the standards for a noncompliant 

product, we would have the discretion 

to assign recall liability to any one of 

those manufacturers. In assigning this 

liability, we would generally consider 

factors such as which manufacturer has 

substantial manufacturing responsibility 

and which manufacturer holds the 

certificate (see § 1060.5). However, we 

may hold equipment manufacturers 

liable for recall even if they don’t 

manufacture or certify the defective 

product. This would generally be 

limited to cases where the component 

manufacturer is unavailable to execute 

any remedial action. For example, if a 

foreign component manufacturer 

discontinues their participation in the 

U.S. market or a component 

manufacturer goes out of business, we 

would turn to the equipment 

manufacturer. 

The proposed running loss standards 

for nonhandheld Small SI engines are 

not geared toward component 

certification, which necessitates some 

special provisions. If engine 

manufacturers sell their engines with a 

complete fuel system, which is typical 

for Class I engines, they would also be 

subject to and need to comply with 

running loss standards as part of their 

overall certification. Of the available 

alternatives for demonstrating 

compliance with the running loss 

standard, we would expect the only 

practical approach for these companies 

would be to route vapors from the fuel 

tank into the engine’s air intake system 

for combustion. Any engine 

manufacturer certifying its engines this 

way would need to test for exhaust 

emissions with an installed running loss 

vent (see § 1054.501). If equipment 

manufacturers use only fuel-system 

components that have been certified by 

component manufacturers (without 

using emission credits) and engines that 

are certified by the engine manufacturer 

to meet both exhaust and running loss 

standards, they would have no 

responsibility to certify. However, if the 

engine manufacturer does not sell its 

engine with a complete fuel system that 

has been certified for running loss 

control, the equipment manufacturer 

would need to certify with respect to the 

running loss standard. 

The running loss standard is not a 

typical standard based on emission 

measurements using established 

procedures. Some of the available 

compliance demonstrations involve 

straightforward design specifications 

that involve no measurement at all. The 

approach of keeping fuel temperatures 

from increasing above a specified 

threshold involves a test procedure with 

a performance standard, but does not 

involve emission measurements. As 

described above, it may be possible to 

identify design specifications that 

would replace the need for the proposed 

temperature measurements. In this case 

running loss control would be a 

straightforward design standard that we 

could treat like the general standards 

above, in which equipment 

manufacturers are deemed to be 

certified by operation of the regulations, 

rather than submitting an application 

for certification. The regulations would 

prohibit the sale of equipment without 

the specified running loss controls. 

(2) Regulatory Requirements Related to 

Certification 

The established provisions for 

implementing exhaust emission 

standards apply similarly for 

evaporative emission standards; 

however, because the control 

technologies are very different, these 

requirements require further 

clarification. For example, scheduled 

maintenance is an important part of 

certifying engines to exhaust emission 

standards. There is little or no 

maintenance involved for the expected 

technologies for controlling evaporative 

emissions. The regulations still require 

manufacturers to identify specified 

maintenance procedures, if there are 

any, but there are no specific limitations 

on the maintenance intervals and no 

distinction for emission-related 

maintenance. Manufacturers may not do 

any maintenance during testing for 

certification. (See § 1060.125 and 

§ 1060.235.) We also do not expect that 

emission-related warranty claims would 

be common, but we are proposing a twoyear period for emission-related 

warranties with respect to evaporative 

emission controls. 

Similarly, we do not expect 

manufacturers to use evaporative 

emission control technologies that 

involve adjustable parameters or 

auxiliary emission control devices. 

Technologies that control evaporative 

emissions are generally passive designs 

that prevent vapors from escaping, in 

contrast to the active systems engines 

use to control exhaust emissions. The 

regulations state the basic expectation 

that systems must comply with 

standards throughout any adjustable 

range without auxiliary emission 

control devices, but it is clear that these 

provisions will not apply to most 

evaporative systems. We also do not 

allow emission control strategies that 

cause or contribute to an unreasonable 

risk to public health or welfare or that 

involve defeat devices. While these are 

additional statutory provisions that are 

meaningful primarily in the context of 

controlling exhaust emissions, we are 

proposing to include them for 

addressing evaporative emissions (see 

§ 1045.101). This also addresses the 

possibility that future technologies may 

be different in a way that makes these 

provisions more meaningful. We request 

comment on this approach. In particular 

we request comment on best way of 

adapting these provisions to evaporative 

emission controls. 

The testing specified for certifying 

fuel systems to the evaporative emission 

standards includes measurements for 

evaluating the durability of emission 

control technologies where appropriate. 

While we adopted evaporative 

requirements for recreational vehicles 

relying on a testing approach that used 

deterioration factors, we believe it is 

more appropriate to incorporate the 

durability testing for each family 

directly. Therefore, no requirement 

exists for generating deterioration 

factors for any evaporative emission 

standard. We request comment on the 

best approach to incorporate durability 

testing for evaporative emission 

standards 

We are proposing to require that 

Small SI engine or equipment 

manufacturers add an emission control 

information label if they certify with 

respect to running losses or if they 

certify based on the use of emission 

credits. We are proposing to require that 

Marine SI engine or vessel 

manufacturers add an emission control 

information label for evaporative 

emission only if they certify based on 

the use of emission credits. (See 

§ 1060.135.) If engine, equipment, or 

vessel manufacturers also certify fuelsystem components separately, they 

may include that additional information 

in a combined label. If the equipment is 

produced by the same company that 

certifies the engine for exhaust 

standards, the emission control 

information label for the engine may 

include all the appropriate information 

related to evaporative emissions. 

In addition, we are proposing a 

simplified labeling requirement for fuel 

lines (see § 1060.136). This would 

involve only the fuel line 

manufacturer’s name, EPA’s 

standardized designation for an 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28183 

emission family, and the family 

emission limit (FEL), if applicable. This 

labeling information would need to be 

repeated continuously, with not more 

than 12 inches before repeating. There 

is some concern that if short sections of 

fuel lines are used, that sections of the 

fuel line may be found on equipment 

without sufficient markings on them. 

We request comment regarding whether 

the length of the repeated labeling 

information should be shorter than 12 

inches. We are proposing simplified 

labeling requirements for fuel filters, 

primer bulbs, or short preformed fuel 

lines (less than 12 inches long) (see 

§ 1060.138). 

Fuel tanks that are certified separately 

would need to include an emission 

control information label (see 

§ 1060.137). This would involve fuel 

tank manufacturer’s name, EPA’s 

standardized designation for an 

emission family, the FEL (if applicable), 

a simple compliance statement, and a 

description of the method of controlling 

emissions. For example, a label on a 

certified marine fuel tank would need to 

describe how it meets permeation 

emission standards and identify the part 

numbers of any associated components 

for meeting diurnal emission standards. 

Including the fuel tank’s family 

emission limit is important, not only for 

EPA oversight, but also to communicate 

this information to equipment 

manufacturers and end users. Unlike the 

situation for exhaust emissions, the 

certifying manufacturer establishes the 

FEL, but does not maintain a balance of 

emission credits. Equipment 

manufacturers may buy fuel tanks and 

fuel lines that have an FEL, which 

would be the basis for calculating 

emission credits for the equipment 

manufacturer. Any other approach 

would require equipment manufacturers 

to be vigilant about verifying FEL values 

with EPA or the component 

manufacturer, or both. Also, as 

described in Section VI.F.6, we are 

proposing to require that owners find 

replacement fuel tanks and fuel lines 

with FELs that match or exceed the 

emission control performance 

represented by the original parts. This is 

an unrealistic expectation unless the 

FEL is readily available on the original 

equipment. 

Other fuel-system components would 

need to be labeled with the 

manufacturer’s name and part number, 

if space allows, and EPA’s standardized 

designation for an emission family (see 

§ 1060.138). This would apply for 

carbon canisters, fuel tanks that are not 

certified separately, and any other fuelsystem components (such as fuel caps) 

that are certified separately. Equipment 

manufacturers could meet the 

requirement to label fuel tanks by 

placing the overall equipment label on 

the fuel tank, as long as the fuel tank 

and label are positioned such that the 

label can be read easily. 

Manufacturers have expressed 

concern that it would be very difficult 

to properly label very small fuel tanks 

and fuel lines. To the extent that engine 

manufacturers are certifying their 

products with respect to evaporative 

emissions, this problem can be 

addressed in part by putting the 

information related to evaporative 

emissions on the engine label already 

required for exhaust emissions. This is 

most likely to be the case for the 

smallest products. We request comment 

on any additional provisions we would 

need to specify to address space 

limitations on very small fuel-system 

components. 

While we are proposing no 

requirement for manufacturers to test 

production-line or in-use products, we 

may pursue testing of certified products 

to evaluate compliance with evaporative 

emission standards (see § 1060.301). 

(3) Emission Families 

To certify equipment or components, 

manufacturers would first define their 

emission families. This is generally 

based on selecting groups of products 

that have similar emission 

characteristics throughout the useful life 

(see § 1060.230). For example, fuel tanks 

could be grouped together if they were 

made of the same material (including 

consideration of additives such as 

pigments, plasticizers, and UV 

inhibitors that may affect emissions) 

and the same control technology. For 

running loss control for nonhandheld 

Small SI engines and equipment, 

emission families are based on the 

selected compliance demonstration. For 

example, certifying manufacturers 

would have one emission family for all 

their products that vent fuel vapors to 

the engine’s air intake system, and 

another emission family for all their 

products that comply based on keeping 

fuel temperatures below the specified 

threshold. 

The manufacturer would then select a 

single product from the emission family 

for certification testing. This product 

would be the one that is most likely to 

exceed the applicable emission 

standard. For instance, the ‘‘worst-case’’

fuel tank in a family of monolayer tanks 

would likely be the tank with the 

thinnest average wall thickness. For fuel 

lines or co-extruded fuel tanks with a 

permeation barrier layer, the worst-case 

configuration may be the thinnest 

barrier thickness. 

Testing with those products, as 

specified above, would need to show 

compliance with emission standards. 

The manufacturers would then send us 

an application for certification. After 

reviewing the information in the 

application, we would issue a certificate 

of conformity allowing equipment 

manufacturers to introduce into 

commerce certified equipment from the 

covered emission family, or 

alternatively, equipment with the 

components from certified emission 

families. 

(4) Compliance Provisions From 40 CFR 

Part 1068 

As described in Section VIII, we are 

proposing to apply the provisions of 40 

CFR part 1068 to Small SI and Marine 

SI engines, equipment, and vessels. This 

section describes how some of the 

provisions of part 1068 apply 

specifically with respect to evaporative 

emissions. 

The provisions of § 1068.101 prohibit 

introducing into commerce new 

nonroad engines and equipment unless 

they are covered by a certificate of 

conformity and labeled appropriately. 

Section VI.F.1 describes the 

responsibilities for engine 

manufacturers, equipment 

manufacturers, and manufacturers of 

fuel-system components with respect to 

the prohibition against introducing 

uncertified products into commerce. In 

the case of portable marine fuel tanks 

and outboard engines, there is no 

equipment manufacturer so we are 

proposing to treat manufacturers of 

these items as equipment manufacturers 

relative to this prohibition. 

While engine rebuilding or extensive 

engine maintenance is commonplace in 

the context of exhaust emission 

controls, there is very little analogous 

servicing related to evaporative 

emission controls. Nevertheless, it can 

be expected that individual 

components, such as fuel lines, fuel 

tanks, or other fuel-system components, 

may be replaced periodically. While the 

detailed rebuilding provisions of 

§ 1068.120 have no meaning for 

evaporative emission controls, the 

underlying requirement applies 

generally. Specifically, if someone is 

servicing a certified system, there must 

be a reasonable basis to believe that the 

modified emission control system will 

perform at least as well as the original 

system. We are not proposing any 

recordkeeping requirements related to 

maintenance of evaporative emission 

control systems. 

There are many instances where we 

specify in 40 CFR part 1068, subparts C 

and D, that engines (and the associated 


sroberts on PROD1PC70 with PROPOSALS
28184 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

equipment) are exempt from emission 

standards under certain circumstances, 

such as for testing, national security, or 

export. Our principle objective in 

applying these provisions to evaporative 

emission standards is to avoid 

confusion. We are therefore proposing 

that an exemption from exhaust 

emission standards, automatically 

triggers a corresponding exemption from 

evaporative emission standards for the 

same products. We believe it is unlikely 

that an equipment manufacturer will 

need a separate exemption from 

evaporative emission standards, but the 

exemptions related to national security, 

testing, and economic hardship would 

apply if such a situation were to occur. 

We believe these are the only three 

reasons that would ever call for 

evaporative systems to be exempt when 

the engines have not already been 

exempted for some reason. We request 

comment on this approach to addressing 

exemptions and importation provisions 

for evaporative requirements. 

Given the extended times required to 

precondition fuel-system components, 

we have no plans to require evaporative 

testing of units from the production 

line. This means that evaporative 

measurements are not part of the 

production-line testing program or 

selective enforcement audits. On the 

other hand, we may require certifying 

manufacturers to supply us with 

production equipment or components as 

needed for our own testing or we may 

find our own source of products for 

testing. 

The defect-reporting requirements of 

§ 1068.501 apply to certified evaporative 

systems. This requires the certifying 

manufacturer to maintain information, 

such as warranty claims, that may 

indicate an emission-related defect. The 

regulations describe when 

manufacturers must pursue an 

investigation of apparent defects and 

when to report defects to EPA. These 

provisions apply to every certifying 

manufacturer and their certified 

products, including component 

manufacturers. 

(5) Interim Compliance Flexibility for 

Small SI Equipment 

Most Small SI equipment 

manufacturers are currently certifying 

products to evaporative emission 

requirements in California. However, 

these standards and their associated test 

procedures differ somewhat from those 

proposed in this document. Although 

the standards are different, we believe 

evaporative emission control 

technologies are available to meet the 

California ARB’s standards and our 

proposed emission standards. To help 

manufacturers transition to selling lowemission equipment nationwide, we are 

proposing to accept California ARB 

certification of equipment and 

components in the early years of the 

proposed federal program. 

As discussed above, we are proposing 

to accept California ARB certification 

for nonhandheld equipment and fuel 

tanks for the purposes of the proposed 

early-allowance program (see 

§§ 1045.145 and 1054.145). We are also 

proposing to accept California ARB 

certification of handheld fuel tanks 

through the 2011 model year (see 

§ 90.129). 

We are proposing to accept Class I/ 

Class II fuel lines meeting California 

ARB certification or certain SAE 

specifications through the 2011/2010 

model years (see § 90.127). These SAE 

specifications include SAE J30 R11A, 

SAE J30 R12, and SAE J2260 Category 

1. Such fuel lines would need to be 

labeled accordingly. As described in 

Section VI.C.1, we are proposing to 

require that engine manufacturers 

certify fuel lines used with their engines 

until the proposed Phase 3 standards are 

in place. The purpose of this provision 

is to give Small SI equipment 

manufacturers additional lead time 

before they have to certify to the 

proposed standards. For any fuel lines 

installed on the equipment, but not 

supplied with the engine, we are 

proposing that the engine manufacturer 

would be required to supply lowpermeation fuel line specifications in its 

installation instructions (see § 90.128). 

Equipment manufacturers would be 

required, under the prohibited acts 

specified in the regulations, to use the 

fuel line specified by the engine 

manufacturer. 

We are proposing to allow 

certification of walk-behind mowers 

under § 90.127 as an alternative to the 

proposed fuel line permeation standards 

if manufacturers rely on SHED-based 

certification to meet the California 

standards that apply to the overall 

equipment (diurnal, tank permeation, 

and fuel line permeation). While this 

might allow for use of fuel lines that 

exceed the proposed standards, we 

believe the overall emission control will 

be at least as great from systems that 

have been tested and certified using 

SHED-based procedures. The Phase 3 

standards described above do not rely 

on diurnal emission control, so we do 

not intend to continue the provision for 

SHED-based testing and certification. 

However, we request comment on the 

possible administrative advantages or 

emission control advantages of 

continuing this alternative approach in 

the Phase 3 time frame. 

(6) Replacement Parts 

We are proposing to apply the 

tampering prohibition in 

§ 1068.101(b)(1) for evaporative systems. 

This means that it would be a violation 

to replace compliant fuel tanks or fuel 

lines with noncompliant products. This 

would effectively disable the applicable 

emission controls. To address the 

concern that low-cost replacement 

products will be easy to make available 

and difficult to prevent, we are 

proposing several new noncompliancerelated provisions. In § 1060.610 we 

clarify the meaning of tampering for 

evaporative systems and propose two 

requirements. First, for the period from 

January 1, 2012 to December 31, 2019, 

we propose to require that 

manufacturers, distributors, retailers, 

and importers of these replacement 

parts clearly label their products with 

respect to the applicable requirements. 

For example, a package might be labeled 

as compliant with the requirements in 

40 CFR part 1060 or it might be labeled 

as noncompliant and appropriate only 

for use in applications not covered by 

EPA standards. Unless the packaging 

clearly states otherwise, the product is 

presumed to be intended for 

applications that are subject to EPA 

standards. Second, starting in 2020 we 

are proposing a provision stating that it 

is presumed that all replacement parts 

intended for applications covered by 

EPA standards will be installed in such 

equipment. This presumption 

significantly enhances our ability to 

enforce the tampering prohibition 

because the replacement part is then 

noncompliant before it is installed in a 

vessel or a piece of equipment. We 

believe shifting to a blanket 

presumption in 2020 is appropriate 

since in-use vessels and equipment will 

be almost universally subject to EPA’s 

evaporative emission standards by that 

time. 

We are aware that producing lowpermeation fuel tanks in very low 

production volumes can be costly. In 

particular, some equipment owners may 

need to replace a fuel tank that has been 

certified to a Family Emission Limit 

(FEL) that is lower than the emission 

standard. The owner would need to find 

and install a replacement fuel tank that 

is certified with an FEL that is the same 

as or lower than that of the replaced fuel 

tank. However, we are concerned that 

such replacement fuel tanks may in 

some cases not be available. We are 

proposing to allow equipment owners to 

ask for an exemption from the 

tampering prohibition if there is no lowFEL tank available. The replacement 

tank would still need to meet applicable 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28185 

standards, but would not need to meet 

the more stringent emission levels 

reflected by the old tank’s FEL. We 

request comment on the need for this 

provision. In particular, we request 

comment on the likelihood that owners 

would be unable to find replacement 

tanks that match the emission level of 

the fuel tanks being replaced. 

(7) Certification Fees 

Under our current certification 

program, manufacturers pay a fee to 

cover the costs associated with various 

certification and other compliance 

activities associated with an EPA issued 

certificate of conformity. These fees are 

based on the projected costs to EPA per 

emission family. For the fees rule 

published May 11, 2004, we conducted 

a cost study to assess EPA’s costs 

associated with conducting programs for 

the industries that we certify (69 FR 

26222). A copy of the cost study 

worksheets that were used to assess the 

fees per category may be found on EPA’s 

fees Web site at http://www.epa.gov/ 

otaq/proprule.htm. We are proposing to 

establish a new fees category for 

certification related to the proposed 

evaporative emission standards. The 

costs for this category will be 

determined using the same method used 

in conducting the previous cost study. 

As under the current program, this 

depends on an assessment of the 

anticipated number of emission families 

and the corresponding EPA staffing 

necessary to perform this work. At this 

time, EPA plans to perform a basic level 

of certification review of information 

and data submitted to issue certificates 

of conformity for the evaporative 

emission standards, as well as 

conducting some testing to measure 

evaporative emissions. This is 

especially the case for equipment 

manufacturers that use only certified 

components for meeting applicable 

emission standards. We are proposing a 

fee of $241 based on Agency costs for 

half of a federal employee’s time and 

three employees hired through the 

National Senior Citizens Education and 

Research Center dedicated to the 

administration of the evaporative 

certification program, including the 

administrative, testing, and overhead 

costs associated with these people. The 

total cost to administer the program is 

estimated to be $362,225. We divided 

this cost by the estimated number of 

certificates, 1503, to calculate the 

proposed fee. 

We will update the fees related to 

evaporative emission certificates each 

year when we update the fees for all 

categories. The actual fee in 2015 and 

later model years will depend on these 

annual calculations. The fees update 

will be based upon EPA’s costs of 

implementing the evaporative category 

multiplied by the consumer price index 

(CPI), then divided by the average of the 

number of certificates received in the 

two years prior to the update. The CPI 

will be applied to all of EPA’s costs 

except overhead. This is a departure 

from EPA’s current fees program 

wherein the CPI is applied only to 

EPA’s labor costs. In the most recent 

fees rulemaking, commenters objected 

to applying the CPI to EPA’s fixed costs. 

In the proposed fee program for the 

evaporative category, however, there are 

no fixed costs. EPA expects all its costs 

to increase with inflation and we 

therefore think it is appropriate to apply 

the inflation adjustment to all of the 

program costs. 

Where a manufacturer holds the 

certificates for compliance with exhaust 

emission standards and includes 

certification for evaporative emissions 

in that same certificate, we would assess 

an additional charge related to 

compliance with evaporative emission 

standards to that for the exhaust 

emission certification. 

EPA believes it appropriate to charge 

less for a certificate related to 

evaporative emissions relative to the 

existing charge for certificates of 

conformity for exhaust emissions from 

the engines in these same vessels and 

equipment. The amount of time and 

level of effort associated with reviewing 

the latter certificates is higher than that 

projected for the certificates for 

evaporative emissions. 

(8) Engineering Design-Based 

Certification 

Certification of equipment or 

components that are subject to 

performance-based emission standards 

depends on test data showing that 

products meet the applicable standards. 

We are proposing a variety of 

approaches that reduce the level of 

testing needed to show compliance. As 

described above, we allow 

manufacturers to group their products 

into emission families so that a test on 

a single worst-case configuration can be 

used to show that all products in the 

emission family are compliant. Also, 

test data from a given year could be 

‘‘carried over’’ for later years for a given 

emission control design (see 

§ 1060.235). These steps help reduce the 

overall cost of testing. 

Design-based certification is an 

additional step that may be available to 

reduce testing requirements (see 

§ 1060.240). To certify their products 

using design-based certification, 

certifying manufacturers would 

describe, from an engineering 

perspective, how their fuel systems 

meet the applicable design 

specifications. These manufacturers 

could then forego the testing described 

in Section VI.E. We believe there are 

several emission control designs that 

use established technologies that are 

well understood to have certain 

emission characteristics. At the same 

time, while engineering design-based 

certification is a useful tool for reducing 

the test burden associated with 

certification, this does not remove a 

manufacturer’s liability for meeting the 

emission standard throughout the useful 

life. 

The following sections describe how 

we propose to implement engineering 

design-based certification for each of the 

different performance standards. We are 

proposing that we may establish 

additional engineering design-based 

certification options where we find that 

new test data demonstrate that the use 

of other technology designs will ensure 

compliance with the applicable 

emission standards. These designs 

would need to produce emission levels 

comfortably below the proposed 

emission standards when variability in 

the emission control performance is 

considered. 

(a) Fuel Line Permeation 

In our program for recreational 

vehicles, we specified that fuel lines 

meeting certain SAE specifications 

could be certified by design. However, 

we are not proposing to allow this for 

Small SI equipment or marine vessels. 

That decision was appropriate for 

recreational vehicles, because that 

program did not include provisions for 

component certification. Fuel line 

manufacturers will need to conduct 

testing anyway to qualify their fuel lines 

as meeting the various industry ratings 

so any testing burden to demonstrate 

compliance with EPA standards should 

be minimal. We would allow test data 

used to meet industry standards to be 

used to certify to the proposed 

standards provided that the data were 

collected in a manner consistent with 

this proposal and that the data were 

made available to EPA if required. 

(b) Fuel Tank Permeation 

We are proposing to consider that a 

metal fuel tank meets the design criteria 

for a design-based certification as a lowpermeation fuel tank. There is also a 

body of existing test data showing that 

co-extruded fuel tanks from automotive 

applications have permeation rates that 

are well below the proposed standard. 

We are proposing to allow design-based 

certification for co-extruded highVerDate Aug<31>2005 17:21 May 17, 2007 Jkt 211001 PO 00000 Frm 00089 Fmt 4701 Sfmt 4702 E:\FR\FM\18MYP2.SGM 18MYP2

sroberts on PROD1PC70 with PROPOSALS
28186 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

density polyethylene fuel tanks with a 

continuous ethylene vinyl alcohol 

barrier layer. The EVOH barrier layer 

would be required to be at least 2 

percent of the wall thickness of the fuel 

tank. 

To address the permeability of the 

fuel cap, seals, and gaskets used on 

metal and co-extruded tanks, we are 

proposing that the design criteria 

include a specification that seals and 

gaskets that are not made of lowpermeation materials must have a total 

exposed surface area smaller than 1000 

mm2. A metal or co-extruded fuel tank 

with seals that meet this design criterion 

would reliably pass the standard. 

However, we believe it is not 

appropriate to assign an emission level 

to fuel tanks using a design-based 

certification option that would allow 

them to generate emission credits. Given 

the uncertainty of emission rates from 

the seals and gaskets, we would not 

consider these tanks to be any more 

effective than other fuel tanks meeting 

emission standards. 

(c) Diurnal Emissions 

For portable marine fuel tanks, we are 

proposing a design standard based on 

automatically sealing the tank to 

prevent fuel venting while fuel 

temperatures are rising. The options 

described below for design-based 

certification therefore deal only with 

installed marine fuel tanks (including 

personal watercraft). 

We are proposing that fuel systems 

sealed to 1.0 psi would meet the criteria 

for engineering design-based 

certification to the proposed diurnal 

emission standards. Systems that 

remain sealed up to positive pressures 

of 1.0 psi have a predictable 

relationship to changing fuel 

temperatures that ensure that total 

diurnal emissions over the specified test 

procedure will be below the proposed 

standard. This type of system would 

allow venting of fuel vapors only when 

pressures exceed 1.0 psi or when the 

fuel cap is removed for refueling. Note 

that systems with anti-siphon valves 

would have to be designed to prevent 

fuel releases when the system is under 

pressure to meet Coast Guard 

requirements. 

Bladder fuel tanks and tanks with a 

volume-compensating air bag are 

specialized versions of tanks that may 

meet the specifications for systems that 

remain sealed up to positive pressures 

of 1.0 psi. In each of these designs, 

volume changes within a sealed system 

prevent pressure buildup. As long as 

these designs meet basic specifications 

for system integrity they would also 

qualify for design-based certification. 

We are proposing that fuel tanks 

equipped with a passively purged 

carbon canister to control diurnal 

emissions may be certified by design, 

subject to several technical 

specifications. To ensure that there is 

enough carbon to collect a sufficient 

mass of hydrocarbon vapors, we 

propose to specify a minimum butane 

working capacity of 9 g/dL based on the 

test procedures specified in ASTM 

D5228–92. The carbon canister would 

need a minimum carbon volume of 

0.040 liters per gallon of fuel tank 

capacity. For fuel tanks certified to the 

optional standards for tanks in 

nontrailerable boats ( 26 ft. in length), 

we are proposing a minimum carbon 

volume of 0.016 liters per gallon of fuel 

tank capacity. 

We are proposing two additional 

specifications for the quality of the 

carbon. We believe these specifications 

are necessary to ensure that the canister 

will continue to function effectively 

over the full useful life of a marine 

vessel. First, the carbon would need to 

meet a moisture adsorption capacity 

maximum of 0.5 grams of water per 

gram of carbon at 90 percent relative 

humidity and a temperature of 25 ± 

5 °C. Second, the carbon would need to 

pass a dust attrition test similar to that 

in ASTM D3802–79. The moisture 

adsorption and dust attrition tests are 

described in more detail in Chapter 5 of 

the Draft RIA. We are also proposing 

that the carbon canister must be 

properly designed to ensure the in-use 

effectiveness of the carbon. 

The canisters would need to be 

designed using good engineering 

judgment to ensure structural integrity. 

They must include a volume 

compensator or other device to hold the 

carbon pellets in place under vibration 

and changing temperatures and the 

vapor flow would need to be directed so 

that it reaches the whole carbon bed 

rather than just passing through part of 

the carbon. We are proposing that the 

geometry of the carbon canister must 

have a length to diameter ratio of at least 

3.5. 

The emission data we used to develop 

these proposed engineering designbased certification options are presented 

in Chapter 5 of the Draft RIA. 

Manufacturers wanting to use designs 

other than those we discuss here would 

have to perform the applicable testing. 

However, once an additional technology 

is proven, we may consider adding it to 

the list as one that qualifies for 

engineering design-based certification. 

For example, if several manufacturers 

were to pool resources to test a diurnal 

emission control strategy and submit 

this data to EPA, we could consider this 

particular technology, with any 

appropriate design specifications, as one 

that qualifies to be considered 

compliant under engineering designbased certification. We would intend to 

revise the regulations to include any 

additional technologies we decide are 

suitable for design-based certification, 

but we would be able to approve the use 

of additional engineering design-based 

certification with these technologies 

before changing the regulations. We 

request comment on this approach to 

design-based certification for diurnal 

emission control technologies and on 

the specific technologies discussed 

above. Section IV.H presents a more 

detailed description of these 

technologies and how they can be used 

to reduce evaporative emissions. 

G. Small-Business Provisions 

(1) Small Business Advocacy Review 

Panel 

On May 3, 2001, we convened a Small 

Business Advocacy Review Panel under 

section 609(b) of the Regulatory 

Flexibility Act as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. The purpose of the 

Panel was to collect the advice and 

recommendations of representatives of 

small entities that could be affected by 

this proposed rule and to report on 

those comments and the Panel’s 

findings and recommendations as to 

issues related to the key elements of the 

Initial Regulatory Flexibility Analysis 

under section 603 of the Regulatory 

Flexibility Act. We convened a Panel 

again on August 17, 2006 to update our 

findings for this new proposal. The 

Panel reports have been placed in the 

rulemaking record for this proposal. 

Section 609(b) of the Regulatory 

Flexibility Act directs the review Panel 

to report on the comments of small 

entity representatives and make findings 

as to issues related to identified 

elements of an initial regulatory 

flexibility analysis (IRFA) under RFA 

section 603. Those elements of an IRFA 

are: 

• A description of, and where 

feasible, an estimate of the number of 

small entities to which the proposed 

rule will apply; 

• A description of projected 

reporting, recordkeeping, and other 

compliance requirements of the 

proposed rule, including an estimate of 

the classes of small entities that will be 

subject to the requirements and the type 

of professional skills necessary for 

preparation of the report or record; 

• An identification, to the extent 

practicable, of all relevant Federal rules 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28187 

that may duplicate, overlap, or conflict 

with the proposed rule; and 

• A description of any significant 

alternative to the proposed rule that 

accomplishes the stated objectives of 

applicable statutes and that minimizes 

any significant economic impact of the 

proposed rule on small entities. 

In addition to the EPA’s Small 

Business Advocacy Chairperson, the 

Panel consisted of the Director of the 

Assessment and Standards Division of 

the Office of Transportation and Air 

Quality, the Administrator of the Office 

of Information and Regulatory Affairs 

within the Office of Management and 

Budget, and the Chief Counsel for 

Advocacy of the Small Business 

Administration. 

Using definitions provided by the 

Small Business Administration (SBA), 

companies that manufacture internalcombustion engines and that employ 

fewer than 1000 people are considered 

small businesses for a Small Business 

Advocacy Review (SBAR) Panel. 

Equipment manufacturers, boat 

builders, and fuel-system component 

manufacturers that employ fewer than 

500 people are considered small 

businesses for the SBAR Panel. Based 

on this information, we asked 25 

companies that met the SBA small 

business thresholds to serve as small 

entity representatives for the duration of 

the Panel process. These companies 

represented a cross-section of engine 

manufacturers, equipment 

manufacturers, and fuel-system 

component manufacturers. 

With input from small-entity 

representatives, the Panel drafted a 

report providing findings and 

recommendations to us on how to 

reduce potential burden on small 

businesses that may occur as a result of 

this proposed rule. The Panel Report is 

included in the rulemaking record for 

this proposal. We are proposing all of 

the recommendations as presented in 

the Panel Report. The proposed 

flexibility options recommended to us 

by the Panel, and any updated 

assessments, are described below. 

(2) Proposed Burden Reduction 

Approaches for Small Businesses 

Subject to the Proposed Evaporative 

Emission Standards 

The SBAR Panel Report includes six 

general recommendations for regulatory 

flexibility for small businesses affected 

by the proposed evaporative emission 

standards. This section discusses the 

provisions being proposed based on 

each of these recommendations. In this 

industry sector, we believe the burden 

reduction approaches presented in the 

Panel Report should be applied to all 

businesses with the exception of one 

general economic hardship provision 

described below which is designed 

specifically for small businesses. The 

majority of fuel tanks produced for the 

Small SI equipment and Marine SI 

vessel market are made by small 

businesses or by companies producing 

small volumes of these products. The 

purpose of these options is to reduce the 

potential burden on companies for 

which fixed costs cannot be distributed 

over a large product line. For this 

reason, we often also consider the 

production volume when making 

decisions regarding burden reduction 

options. 

(a) Consideration of Appropriate Lead 

Time 

Small businesses commented that 

they would need to make significant 

changes to their plastic fuel tank designs 

and molding practices to meet the 

proposed fuel tank permeation 

standards. For blow-molded tank 

designs with a molded-in permeation 

barrier, new blow-molding machines 

would be needed that could produce 

multi-layer fuel tanks. One small 

business commented that, due to the 

lead time needed to install a new 

machine and to perform quality checks 

on the tanks, they would not be ready 

to sell multi-layer blow-molded fuel 

tanks until 2011 for the Small SI and 

Marine SI markets. 

Small businesses that rotational-mold 

fuel tanks were divided in their opinion 

of when they would be ready to produce 

low-permeation fuel tanks. One 

manufacturer stated that it is already 

producing fuel tanks with a lowpermeation inner layer that are used in 

Small SI applications. This company 

also sells marine fuel tanks, but not with 

the low-permeation characteristics. 

However, they have performed Coast 

Guard durability testing on a prototype 

40 gallon marine tank using their 

technology which passed the tests. Two 

other small businesses, that rotationally 

mold fuel tanks, stated that they have 

not been able to identify and 

demonstrate a low-permeation 

technology that would meet their cost 

and performance needs. They 

commented that developing and 

demonstrating low-permeation 

technology is especially an issue for the 

marine industry because of the many 

different tank designs and Coast Guard 

durability requirements. 

Consistent with the Panel 

recommendations in response to the 

above comments, we are proposing to 

provide sufficient lead time for blowmolded and marine rotational molded 

fuel tanks. We are proposing tank 

permeation implementation dates of 

2011 for Class II equipment and 2012 for 

Class I equipment. For marine fuel 

tanks, we are proposing to implement 

the tank permeation standards in 2011 

with an additional year (2012) for 

installed fuel tanks which are typically 

rotational-molded marine fuel tanks (see 

§ 1054.110 and § 1045.107). 

There was no disagreement on the 

technological feasibility of the Marine SI 

diurnal emission standard EPA is 

considering. Small businesses 

commented that they would like 

additional time to install carbon 

canisters in their vessels. They stated 

that some boat designs would require 

deck and hull changes to assist in 

packaging the canisters and they would 

like to make these changes in the 

normal turnover cycle of their boat 

molds. Small businesses commented 

that they would consider asking EPA to 

allow the use of low-permeation fuel 

line prior to 2009 as a method of 

creating an emission neutral option for 

providing extra time for canisters. We 

are requesting comment on phase-in 

schemes or other burden reduction 

approaches which would provide small 

businesses additional lead time to meet 

these requirements without losing 

overall emission reductions. 

The majority of large equipment 

manufacturers have indicated that they 

will be using low-permeation fuel lines 

in the near term as part of their current 

product plans. As a result, we are 

proposing an implementation date of 

2008 for Small SI fuel line permeation 

standards for nonhandheld equipment 

(see § 90.127). The Panel expressed 

concern that small equipment 

manufacturers who do not sell products 

in California may not necessarily be 

planning on using low-permeation fuel 

line in 2008. Therefore, we are 

proposing a 2009 implementation date 

for low-permeation fuel line for small 

businesses producing Small SI 

nonhandheld equipment. 

(b) Fuel Tank ABT and Early-Incentive 

Program 

The Panel recommended that we 

propose an ABT program for fuel tank 

permeation and an early-allowance 

program for fuel tank permeation. Our 

proposed ABT and early-allowance 

programs are described above. We are 

requesting comment on including 

service tanks in the ABT program. These 

are tanks that are sold as replacement 

parts for in-use equipment. 

(c) Broad Definition of Emission Family 

The Panel recommended that we 

propose broad emission families for fuel 

tank emission families similar to the 


sroberts on PROD1PC70 with PROPOSALS
28188 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

existing provisions for recreational 

vehicles. As described above, we are 

proposing permeation emission families 

be based on type of material (including 

additives such as pigments, plasticizers, 

and UV inhibitors), emission control 

strategy, and production methods. Fuel 

tanks of different sizes, shapes, and wall 

thicknesses would be grouped into the 

same emission family (see § 1045.230 

and § 1054.230). Manufacturers 

therefore would be able to broadly 

group similar fuel tanks into the same 

emission family and then only test the 

configuration most likely to exceed the 

emission standard. Although Small SI 

and Marine SI fuel tanks would not be 

allowed in the same emission family, it 

could be possible to carry-across 

certification test data from one category 

to another. 

(d) Compliance Progress Review for 

Marine Fuel Tanks 

One manufacturer of rotationalmolded fuel tanks has stated that they 

are already selling low-permeation tanks 

into the Small SI market and they have 

plans to sell them into marine 

applications. However, other 

manufacturers of rotational-molded 

marine fuel tanks have expressed 

concern that they do not have 

significant in-use experience to 

demonstrate the durability of lowpermeation rotational-molded fuel tanks 

in boats. To address this uncertainty, 

EPA intends to continue to engage on a 

technical level with rotational-molded 

marine fuel tank manufacturers and 

material suppliers to assess the progress 

of low-permeation fuel tank 

development and compliance. If 

systematic problems are identified 

across the industry, this would give EPA 

the opportunity to address the problem. 

If problems were identified only for 

individual businesses, this would give 

EPA early notice of the issues that may 

need to be addressed through the 

proposed hardship relief provisions. 

(e) Engineering Design-Based 

Certification 

In the existing evaporative emission 

program for recreational vehicles, 

manufacturers using metal fuel tanks 

may certify by design to the tank 

permeation standards. Tanks using 

design-based certification provisions are 

not included in the ABT program 

because they are assigned a certification 

emission level equal to the standard. 

The Panel recommended that we 

propose to allow design-based 

certification for metal tanks and plastic 

fuel tanks with a continuous EVOH 

barrier. The Panel also recommended 

that we propose design-based 

certification for carbon canisters. A 

detailed description of the proposed 

design-based certification options that 

are consistent with the Panel 

recommendations is presented earlier in 

this document. 

The National Marine Manufacturers 

Association (NMMA) the American Boat 

and Yacht Council (ABYC) and the 

Society of Automotive Engineers (SAE) 

have industry recommended practices 

for boat designs that must be met as a 

condition of NMMA membership. 

NMMA stated that they are working to 

update these recommended practices to 

include carbon canister installation 

instructions and low-permeation fuel 

line design. The Panel recommended 

that EPA accept data used for meeting 

the voluntary requirements as part of 

the EPA certification. We are proposing 

that this data could be used as part of 

EPA certification as long as it is 

collected consistent with the test 

procedures and other requirements 

described in this proposal. 

(f) Hardship Provisions 

We are proposing two types of 

hardship provisions consistent with the 

Panel recommendations. The first type 

of hardship is an unusual circumstances 

hardship which would be available to 

all businesses, regardless of size. The 

second type of hardship is an economic 

hardship provision which would be 

available to small businesses only. 

Sections VIII.C.8 and VIII.C.9 provide a 

description of the proposed hardship 

provisions that would apply to the range 

of manufacturers subject to the 

proposed Marine SI and Small SI 

evaporative emission requirements. This 

would include Marine SI engine 

manufacturers, nonhandheld engine 

manufacturers, nonhandheld equipment 

manufacturers, handheld equipment 

manufacturers, boat builders, and fuelsystem component manufacturers. 

The proposed criteria for small 

businesses are presented earlier in 

Sections III.F.2 and IV.G for Marine SI 

engine manufacturers, Section V.F.2 for 

nonhandheld engine manufacturers, and 

Section V.F.3 for nonhandheld 

equipment manufacturers. For handheld 

equipment manufacturers, EPA is 

proposing to use the existing smallvolume manufacturer criteria which 

relies on a production cut-off of 25,000 

pieces of handheld equipment per year. 

For boat builders and fuel-system 

component manufacturers, EPA is 

proposing to base the determination of 

whether a company is a small business 

based on the SBA definition. The SBA 

small business definition for companies 

manufacturing boats subject to the 

proposed standards is fewer than 500 

employees. Likewise, the SBA small 

business definition for companies 

manufacturing fuel-system components 

such as fuel tanks and fuel lines is fewer 

than 500 employees. 

Because many boat builders, 

nonhandheld equipment manufacturers, 

and handheld equipment manufacturers 

will depend on fuel tank manufacturers 

and fuel line manufacturers to supply 

certified products in time to produce 

complying vessels and equipment, we 

are also proposing a hardship provision 

for all boat builders and Small SI 

equipment manufacturers, regardless of 

size. The proposed hardship would 

allow the boat builder or equipment 

manufacturer to request more time if 

they are unable to obtain a certified fuel 

system component and they are not at 

fault and would face serious economic 

hardship without an extension (see 

§ 1068.255). Section VIII.C.10 provides a 

description of the proposed hardship 

provisions that would apply to boat 

builders and Small SI equipment 

manufacturers. 

H. Technological Feasibility 

We believe there are several strategies 

that manufacturers can use to meet the 

proposed evaporative emission 

standards. We have collected and will 

continue to collect emission test data on 

a wide range of technologies for 

controlling evaporative emissions. The 

design-based certification levels 

discussed above are based on this test 

data and we may amend the list of 

approved designs and emission levels as 

more data become available. 

In the following sections we briefly 

describe how we decided to propose 

specific emission standards and 

implementation dates, followed by a 

more extensive discussion of the 

expected emission control technologies. 

A more detailed discussion of the 

feasibility of the proposed evaporative 

requirements, including all the 

underlying test data, is included in 

Chapter 5 of the Draft RIA. See Table 

VI–1 for a summary of the proposed 

evaporative emission standards. 

(1) Level of Standards 

The proposed fuel line and fuel tank 

permeation standards for Small SI 

equipment and Marine SI vessels are 

based on the standards already adopted 

for recreational vehicles. These 

applications use similar technology in 

their fuel systems. In cases where the 

fuel systems differ we have identified 

technological approaches that could be 

used to meet these same emission 

levels. The control strategies are 

discussed below. For structurally 

integrated nylon fuel tanks and for fuel 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28189 

lines used with cold-weather 

equipment, we are proposing slightly 

relaxed standards based on available 

permeation data. In addition, we have 

proposed higher numerical standards 

for fuel tank permeation for tests 

performed at higher temperature (40 °C 

vs. 28 °C). These higher numerical 

standards are based on data described in 

Chapter 5 of the Draft RIA. 

For fuel tanks installed in personal 

watercraft and for portable marine fuel 

tanks, we are proposing diurnal 

emission standards based on the current 

capabilities of these systems. We are 

basing the proposed standard for other 

installed marine fuel tanks on the 

capabilities of passive systems that store 

emitted vapors in a carbon canister. The 

Draft RIA describes the test results on 

passively purged canisters, and other 

technologies, that led us to the proposed 

level of the diurnal emission standard. 

Control of diffusion emissions from 

Small SI equipment requires application 

of a simple technological approach that 

is widely used today. The Draft RIA 

describes the testing we conducted on 

fuel caps with tortuous vent paths and 

short vent lines on which we based the 

diffusion emission standard. 

We have measured running loss 

emissions and found that some Small SI 

products have very high emission 

levels. The large variety of 

manufacturers and equipment types 

makes it impractical to design a 

measurement procedure, which means 

that we are unable to specify a 

performance standard. We are proposing 

a design standard for running losses 

from Small SI equipment by specifying 

that manufacturers may use any of a 

variety of specified design solutions, as 

described in Section VI.C.6. Several of 

these design options are already in 

common use today. 

We are proposing to require that 

equipment and vessel manufacturers 

use good engineering judgment in their 

designs to minimize refueling spitback 

and spillage. In general, it would simply 

require manufacturers to use system 

designs that are commonly used today. 

Several refueling spitback and spillage 

control strategies are discussed in 

Chapter 5 of the Draft RIA. 

(2) Implementation Dates 

Low-permeation fuel line is available 

today. Many Small SI equipment 

manufacturers certifying to permeation 

standards in California are selling 

products with low-permeation fuel line 

nationwide. In addition, many boat 

builders have begun using lowpermeation marine fuel lines to feed 

fuel from the fuel tank to the engine. For 

this reason, we are proposing to 

implement the fuel line permeation 

standards in 2008 for nonhandheld 

Small SI equipment and in 2009 for 

Marine SI vessels. This date is the same 

as for recreational vehicles and is two 

years later than the California 

requirements for Small SI equipment. 

For handheld equipment, there are no 

fuel line permeation requirements in 

California. In addition, injection molded 

fuel lines are common in many 

applications rather than straight-run 

extruded fuel line. For this reason we 

are proposing to delay implementation 

of fuel line permeation standards for 

handheld equipment until 2012 (or 2013 

for small volume emission families). We 

request comment on the proposed 

implementation dates for fuel line 

permeation standards. 

Similar to fuel line technology, lowpermeation fuel tank constructions are 

used today in automotive and portable 

fuel tank applications. This technology 

is also being developed for use in 

recreational vehicles and for Small SI 

equipment sold in California. The 

available technology options include 

surface treatment and multi-layer 

constructions, though rotational 

molding presents some unique design 

challenges. Based on discussions with 

fuel tank manufacturers, and on our 

own assessment of the lead time 

necessary to change current industry 

practices, we believe low-permeation 

fuel tank technology can be applied in 

the 2011–2012 model years for Small SI 

and Marine SI fuel tanks. We are 

proposing to implement the fuel tank 

permeation standards in 2011 for Class 

II equipment and portable and PWC 

marine fuel tanks. For Class I equipment 

and installed marine fuel tanks, we are 

proposing an implementation date of 

2012. We are proposing to phase-in the 

handheld fuel tank standards on the 

following schedule: 2009 for equipment 

models certifying in California, 2013 for 

small-volume families, and 2010 for the 

remaining fuel tanks on handheld 

equipment. We believe this will 

facilitate an orderly transition from 

current fuel tank designs to lowpermeation fuel tanks. 

We are proposing the additional year 

of lead time for the large fuel tanks 

installed in marine vessels largely due 

to concerns raised over the application 

of low-permeation rotational-molded 

fuel tank technology to marine 

applications. The majority of these fuel 

tanks are typically rotational-molded by 

small businesses. Although lowpermeation technology has emerged for 

these applications, we believe 

additional lead time will be necessary 

for all manufacturers to be ready to 

implement this technology. This will 

give these manufacturers additional 

time to make changes to their 

production processes to comply with 

the standards and to make any tooling 

changes that may be necessary. We are 

similarly proposing the implementation 

of fuel tank permeation standards for 

Class I fuel tanks installed in Small SI 

equipment in 2012, mostly to align with 

the implementation date for the Phase 3 

exhaust emission standards. This is 

especially important for Class I engines 

where most of the engine manufacturers 

will also be responsible for meeting all 

evaporative emission standards. We 

request comment on the proposed 

implementation dates for the proposed 

fuel tank permeation standards. 

We are proposing to implement the 

running loss standards for nonhandheld 

Small SI equipment in the same year as 

the exhaust emission standards. We 

believe this is appropriate because the 

running loss vapor will in some cases be 

routed to the intake manifold for 

combustion in the engine. 

Manufacturers would need to account 

for the effect of the additional running 

loss vapor in their engine calibrations. 

We request comment on this approach. 

We are proposing to implement the 

proposed diurnal standards for portable 

marine fuel tanks and personal 

watercraft in 2009. We believe these 

requirements will not result in a 

significant change from current practice 

so this date will provide sufficient lead 

time for manufacturers to comply with 

standards. For other installed fuel tanks, 

however, we are proposing a later 

implementation date of 2010. The 

development of canisters as an approach 

to control diurnal emissions without 

pressurizing the tanks has substantially 

reduced the expected level of effort to 

redesign and retool for making fuel 

tanks. However, canister technology has 

not yet been applied commercially to 

marine applications and additional lead 

time may be necessary to work out 

various technical parameters, such as 

design standards and installation 

procedures to ensure component 

durability and system integrity. We 

request comment on the proposed 

diurnal implementation dates. 

(3) Technological Approaches 

We believe several emission control 

technologies can be used to reduce 

evaporative emissions from Small SI 

equipment and Marine SI vessels. These 

emission control strategies are discussed 

below. Chapter 5 of the Draft RIA 

presents more detail on these 

technologies and Chapter 6 provides 

information on the estimated costs. We 

request comment on these or other 

technological approaches for reducing 


sroberts on PROD1PC70 with PROPOSALS
28190 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

92 Society of Automotive Engineers Surface 

Vehicle Standard, ‘‘Personal Watercraft Fuel 

Systems,’’ SAE J2046, Issues 1993–01–19 (Docket 

EPA–HQ–OAR–2004–0008–0179). 

evaporative emissions from these 

engines and equipment. 

(a) Fuel Line Permeation 

Fuel lines produced for use in Small 

SI equipment and Marine SI 

applications are generally extruded 

nitrile rubber with a cover for abrasion 

resistance. Fuel lines used in Small SI 

applications often meet SAE J30 R7 

recommendations, including a 

permeation limit of 550 g/m2/day at 

23 °C on ASTM Fuel C. Fuel lines for 

personal watercraft are typically 

designed to meet SAE J2046, which 

includes a permeation limit of 300 g/m2/ 

day at 23 °C on ASTM Fuel C.92 Marine 

fuel lines subject to Coast Guard 

requirements under 33 CFR part 183 are 

designated as either Type A or Type B 

and either Class 1 or Class 2. SAE J1527 

provides detail on these fuel line 

designs. Type A fuel lines pass the U.S. 

Coast Guard fire test while Type B 

designates fuel lines that have not 

passed this test. Class 1 fuel lines are 

intended for fuel-feed lines where the 

fuel line is normally in contact with 

liquid fuel and has a permeation limit 

of 100 g/m2/day at 23 °C. Class 2 fuel 

lines are intended for vent lines and fuel 

fill necks where liquid fuel is not 

continuously in contact with the fuel 

line; it has a permeation limit of 300 g/ 

m2/day at 23 °C. In general practice, 

most boat builders use Class 1 fuel lines 

for both vent lines and fuel-feed lines to 

avoid carrying two types of fuel lines. 

Most fuel fill necks, which have a much 

larger diameter and are constructed 

differently, use materials meeting 

specifications for Class 2 fuel lines. The 

marine industry is currently in the 

process of revising SAE J1527 to include 

a permeation rating of 15 g/m2/day at 

23 °C on fuel CE10 for marine fuel lines. 

Low-permeability fuel lines are in 

production today. One fuel line design, 

already used in some marine 

applications, uses a thermoplastic layer 

between two rubber layers to control 

permeation. This thermoplastic barrier 

may either be nylon or ethyl vinyl 

acetate. Barrier approaches in 

automotive applications include fuel 

lines with fluoroelastomers such as 

FKM and fluoroplastics such as Teflon 

and THV. In addition to presenting data 

on low-permeation fuel lines, Chapter 5 

of the Draft RIA lists several fuel-system 

materials and their permeation rates. 

Molded rubber fuel line components, 

such as primer bulbs and some 

handheld fuel lines, could meet the 

standard by using a fluoroelastomer 

such as FKM. The Draft RIA also 

discusses low-permeation materials that 

retain their flexibility at very low 

temperatures. 

Automotive fuel lines made of lowpermeation plastic tubing are generally 

made from fluoroplastics. An added 

benefit of these low-permeability fuel 

lines is that some fluoropolymers can be 

made to conduct electricity and 

therefore prevent the buildup of static 

charges. This type of fuel line can 

reduce permeation by more than an 

order of magnitude below the level 

associated with barrier-type fuel lines, 

but it is relatively inflexible and would 

need to be molded in specific shapes for 

each equipment or vessel design. 

Manufacturers have commented that 

they need flexible fuel lines to fit their 

many designs, resist vibration, prevent 

kinking, and simplify connections and 

fittings. An alternative to custom 

molding is to manufacture fuel lines 

with a corrugated profile (like a vacuum 

hose). Producing flexible fluoropolymer 

fuel lines is somewhat more expensive 

but the result is a product that meets 

emission standards without 

compromising in-use performance or 

ease of installation. 

(b) Fuel Tank Permeation 

Blow-molding is widely used for the 

manufacture of Small SI, portable 

marine, and PWC fuel tanks. Typically, 

blow-molding is performed by creating 

a hollow tube, known as a parison, by 

pushing high-density polyethylene 

(HDPE) through an extruder with a 

screw. The parison is then pinched in 

a mold and inflated with an inert gas. 

In highway applications, nonpermeable 

plastic fuel tanks are produced by blow 

molding a layer of ethylene vinyl 

alcohol (EVOH) or nylon between two 

layers of polyethylene. This process is 

called coextrusion and requires at least 

five layers: the barrier layer, adhesive 

layers on either side of the barrier layer, 

and two outside layers of HDPE that 

make up most of the thickness of the 

fuel tank walls. However, multi-layer 

construction requires additional 

extruder screws, which significantly 

increases the cost of the blow-molding 

process. One manufacturer has 

developed a two-layer barrier approach 

using a polyarylamide inner liner. This 

technology is not in production yet but 

appears to be capable of permeation 

levels similar to the traditional EVOH 

barrier designs. This approach would 

enable blow-molding of low-permeation 

fuel tanks with only one additional 

extruder screw. 

Multi-layer fuel tanks can also be 

formed using injection molding. In this 

method a low-viscosity polymer is 

forced into a thin mold to create the two 

sides of the fuel tank (e.g., top and 

bottom), which are then fused together. 

To add a barrier layer, a thin sheet of the 

barrier material is placed inside the 

mold before injecting the poleythylene. 

The polyethylene, which generally has 

a much lower melting point than the 

barrier material, bonds with the barrier 

material to create a shell with an inner 

liner. 

A less expensive alternative to 

coextrusion is to blend a low-permeable 

resin with the HDPE and extrude it with 

a single screw to create barrier platelets. 

The trade name typically used for this 

permeation control strategy is Selar. The 

low-permeability resin, typically EVOH 

or nylon, creates noncontinuous 

platelets in the HDPE fuel tank to 

reduce permeation by creating long, 

tortuous pathways that the hydrocarbon 

molecules must navigate to escape 

through the fuel tank walls. Although 

the barrier is not continuous, this 

strategy can still achieve greater than a 

90 percent reduction in permeation of 

gasoline. EVOH has much higher 

permeation resistance to alcohol than 

nylon so it would likely be the preferred 

material for meeting the proposed 

standard based on testing with a 10 

percent ethanol fuel. 

Many fuel tanks for Small SI 

equipment are injection-molded out of 

either HDPE or nylon. Injection-molding 

can be used with lower production 

volumes than blow-molding due to 

lower tooling costs. In this method, a 

low-viscosity polymer is forced into a 

thin mold to create the two sides of the 

fuel tank; these are then fused together 

using vibration, hot plate or sonic 

welding. A strategy such as Selar has 

not been demonstrated to work with 

injection-molding due to high shear 

forces. 

An alternative to injection-molding is 

thermoforming which is also costeffective for lower production volumes. 

In this process, sheet material is heated 

and then drawn into two vacuum dies. 

The two halves are then fused while the 

plastic is still molten to form the fuel 

tank. Low-permeation fuel tanks can be 

constructed using this process by using 

multi-layer sheet material. This multilayer sheet material can be extruded 

using similar materials to multi-layer 

blow-molded fuel tank designs. A 

typical barrier construction would 

include a thin EVOH barrier, adhesion 

layers on both sides, a layer of HDPE 

regrind, and outside layers of pure 

virgin HDPE. 

Regardless of the molding process, 

another type of low-permeation 

technology for HDPE fuel tanks would 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28191 

be to treat the surfaces with a barrier 

layer. Two ways of achieving this are 

known as fluorination and sulfonation. 

The fluorination process causes a 

chemical reaction where exposed 

hydrogen atoms are replaced by larger 

fluorine atoms, which creates a barrier 

on the surface of the fuel tank. In this 

process, batches of fuel tanks are 

generally processed post-production by 

stacking them in a steel container. The 

container is then voided of air and 

flooded with fluorine gas. By pulling a 

vacuum in the container, the fluorine 

gas is forced into every crevice in the 

fuel tanks. Fluorinating with this 

process would treat both the inside and 

outside surfaces of the fuel tank, thereby 

improving the reliability and durability 

of the permeation-resistance. As an 

alternative, fuel tanks can be fluorinated 

during production by exposing the 

inside surface of the fuel tank to 

fluorine during the blow-molding 

process. However, this method may not 

prove as effective as post-production 

fluorination. 

Sulfonation is another surface 

treatment technology where sulfur 

trioxide is used to create the barrier by 

reacting with the exposed polyethylene 

to form sulfonic acid groups on the 

surface. Current practices for 

sulfonation are to place fuel tanks on a 

small assembly line and expose the 

inner surfaces to sulfur trioxide, then 

rinse with a neutralizing agent. 

However, sulfonation can also be 

performed using a batch method. Either 

of these sulfonation processes can be 

used to reduce gasoline permeation by 

more than 95 percent. 

Over the first month or so of use, 

polyethylene fuel tanks can experience 

a material expansion of as much as three 

percent due to saturation of the plastic 

with fuel. Manufacturers have raised the 

concern that this hydrocarbon 

expansion could degrade the 

effectiveness of surface treatments like 

fluorination or sulfonation. However, 

we believe this will not significantly 

affect these surface treatments. 

California ARB has performed extensive 

permeation testing on portable fuel 

containers with and without these 

surface treatments. Prior to the 

permeation testing, the tanks were 

prepared by performing a durability 

procedure where the fuel container 

cycled a minimum of 1,000 times 

between—1 psi and 5 psi. In addition, 

the fuel containers were soaked with 

fuel for a minimum of four weeks before 

testing. Their test data, presented in 

Chapter 5 of the Draft RIA, show that 

fluorination and sulfonation are still 

effective after this durability testing. We 

have conducted our own permeation 

testing on fluorinated fuel tanks that 

have been exposed to fuel for more than 

a year with excellent results. These 

results are presented in the Draft RIA. 

Manufacturers have also commented 

that fuel sloshing in the tank under 

normal in-use operation could wear off 

the surface treatments. However, we 

believe this is unlikely to occur. These 

surface treatments actually result in an 

atomic change in the structure of the 

surface of the fuel tank. To wear off the 

treatment, the plastic itself would need 

to be worn away. In addition, testing by 

California ARB shows that the fuel tank 

permeation standard can be met by fuel 

tanks that have undergone 1.2 million 

slosh cycles. Test data on a sulfonated 

automotive HDPE fuel tank after five 

years of use showed no deterioration in 

the permeation barrier. These data are 

presented in Chapter 5 of the Draft RIA. 

A fourth method for molding plastic 

fuel tanks is called rotational-molding. 

Rotational-molding is a lower-cost 

alternative for smaller production 

volumes. In this method, a mold is filled 

with a powder form of polyethylene 

with a catalyst material. While the mold 

is rotated in an oven, the heat melts the 

plastic. When cross-link polyethylene 

(XLPE) is used, this heat activates a 

catalyst in the plastic, which causes a 

strong cross-link material structure to 

form. This method is often used for 

relatively large fuel tanks in Small SI 

equipment and for installed marine fuel 

tanks. The advantages of this method 

are low tooling costs, which allow for 

smaller production volumes, and 

increased strength and flame resistance. 

Flame resistance is especially important 

for installed marine fuel tanks subject to 

33 CFR part 183. At this time, the 

barrier treatment approaches discussed 

above for HDPE have not been 

demonstrated to be effective for XLPE. 

We have evaluated two permeation 

control approaches for rotationalmolded fuel tanks. The first is to form 

an inner layer during the molding 

process. Historically, the primary 

approach for this is to use a drop-box 

that opens after the XLPE tank begins to 

form. However, processes have been 

developed that eliminate the need for a 

drop box. With this construction a lowpermeation inner liner can be molded 

into the fuel tank. Manufacturers are 

currently developing acetyl copolymer, 

nylon, and polybutylene terephthalate 

inner liners for this application. In fact, 

one fuel tank manufacturer is already 

selling tanks with a nylon inner liner 

into Class II Small SI equipment 

applications. Initial testing suggests that 

these barrier layers could be used to 

achieve the proposed standards. 

The second approach to creating a 

barrier layer on XLPE rotational-molded 

fuel tanks is to use an epoxy barrier 

coating. One manufacturer has 

demonstrated that a low-permeation 

barrier coating can be adhered to an 

XLPE fuel tank that results in a 

permeation rate below the proposed 

standard. In this case, the manufacturer 

used a low level of fluorination to 

increase the surface energy of the XLPE 

so the epoxy would adhere properly. 

Marine fuel tanks are also fabricated 

out of either metal or fiberglass. Metal 

does not permeate so tanks that are 

constructed and installed properly to 

prevent corrosion should meet the 

proposed standards throughout their 

full service life. For fiberglass fuel tanks, 

one manufacturer has developed a 

composite that has been demonstrated 

to meet the proposed fuel tank 

permeation standard. Permeation 

control is achieved by incorporating 

fillers into a resin system and coating 

the assembled tank interior and exterior. 

This filler is made up of 

nanocomposites (very small particles of 

treated volcanic ash) which are 

dispersed into a carrier matrix. These 

particles act like the barrier platelets 

discussed above by creating a tortuous 

pathway for hydrocarbon migration 

through the walls of the fuel tank. 

(c) Diurnal 

Portable marine fuel tanks are 

currently equipped with a valve that can 

be closed by the user when the tank is 

stored to hold vapor in the fuel tank. 

These fuel tanks are designed to hold 

the pressure that builds up when a 

sealed fuel tank undergoes normal daily 

warming. This valve must be opened 

when the engine is operating to prevent 

a vacuum from forming in the fuel tank 

as the fuel level in the tank decreases. 

A vacuum in the fuel tank could prevent 

fuel from being drawn into the engine. 

Because the valve is user-controlled, 

any emission control is dependent on 

user behavior. This can be corrected by 

replacing the user-controlled valve with 

a simple one-way valve in the fuel cap. 

For instance, a diaphragm valve that is 

common in many automotive 

applications seals when under pressure 

but opens at low-vacuum conditions. 

Personal watercraft currently use 

sealed systems with pressure-relief 

valves that start venting vapors when 

pressures reach a threshold that ranges 

from 0.5 to 4.0 psi. We believe the 

proposed standard can be met through 

the use of a sealed fuel system with a 

1.0 psi pressure-relief valve. Personal 

watercraft should therefore be able to 

meet the proposed standard with little 

or no change to current designs. 


sroberts on PROD1PC70 with PROPOSALS
28192 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

For other vessels with installed fuel 

tanks, manufacturers have commented 

that even 1.0 psi of pressure would be 

too high for their applications. They 

expressed concern that their fuel tanks 

had large, flat surfaces that would 

deform or leak at pressures of 0.5 psi or 

higher. This concern led us to consider 

several technologies for controlling 

diurnal emissions without pressurizing 

the tank, including carbon canisters, 

volume-compensating air bags, and 

bladder fuel tanks. 

The primary evaporative emission 

control device used in automotive 

applications is a carbon canister. With 

this technology, vapor generated in the 

tank is vented to a canister containing 

activated carbon. The fuel tank must be 

sealed such that the only venting that 

occurs is through the carbon canister. 

This prevents more than a minimal 

amount of positive or negative pressure 

in the tank. The activated carbon 

collects and stores the hydrocarbons. 

The activated carbon bed in the canister 

is refreshed by purging. 

In a marine application, an engine 

purge is not practical; therefore, 

canisters were not originally considered 

to be a practical technology for 

controlling diurnal vapor from boats. 

Since that time, however, we have 

collected information showing that the 

canister is purged sufficiently during 

cooling periods to reduce diurnal 

emissions effectively. When the fuel in 

the tank cools, fresh air is drawn back 

through the canister into the fuel tank. 

This fresh air partially purges the 

canister and returns hydrocarbons to the 

fuel tank. This creates open sites in the 

carbon so the canister can again collect 

vapor during the next heating event. 

Test data presented in Chapter 5 of the 

Draft RIA show that a canister starting 

from empty is more than 90 percent 

effective until it reaches the point of 

saturation. Once it reaches saturation, a 

canister is still capable of reducing 

diurnal emissions by more than 60 

percent due to the normal airflow across 

the canister bed during cooling periods. 

Adding active purging during engine 

operation would improve the level of 

control somewhat depending on how 

often the engine is operated. 

Manufacturers have raised the 

concern that it is common for fuel to 

pass out the vent line during refueling. 

If there were a canister in the vent line 

it would become saturated with fuel. 

While this would not likely cause 

permanent damage to the canister, we 

believe marine fuel systems should 

prevent liquid fuel from exiting the vent 

line for both environmental and safety 

reasons. A float valve or small orifice in 

the entrance to the vent line from the 

fuel tank would prevent liquid fuel from 

reaching the canister or escaping from 

the tank. Any pressure build-up from 

such a valve would cause fuel to back 

up the fill neck and shut off the fuel 

dispensing nozzle. Manufacturers have 

also expressed concerns for canister 

durability in marine applications due to 

vibration, shock, and humidity. 

However, there are now marine grades 

of activated carbon that are harder and 

more moisture-resistant than typical 

automotive carbon. Industry installed 

canisters equipped with the marine 

grade carbon on 14 boats in a pilot 

program and no problems were 

encountered. This is discussed in more 

detail in Chapter 5 of the Draft RIA. 

Another concept for minimizing 

pressure in a sealed fuel tank is through 

the use of a volume-compensating air 

bag. The purpose of the bag is to fill up 

the vapor space above the liquid fuel. 

By minimizing the vapor space, the 

equilibrium concentration of fuel vapors 

occupies a smaller volume, resulting in 

a smaller mass of vapors. As the 

equilibrium vapor concentration 

increases with increasing temperature, 

the vapor space expands, which forces 

air out of the bag through the vent to 

atmosphere. Because the bag volume 

decreases to compensate for the 

expanding vapor space, total pressure 

inside the fuel tank stays very close to 

atmospheric pressure. Once the fuel 

tank cools in response to cooling 

ambient temperatures the resulting 

vacuum in the fuel tank will make the 

bag expand again by drawing air from 

the surrounding environment. Our test 

results show that pressure could be kept 

below 0.8 psi using a bag with a 

capacity equal to 25 percent of the fuel 

tank capacity. The use of a volumecompensating air bag, in conjunction 

with a pressure-relief valve, would be 

very effective in controlling diurnal 

emissions. 

Probably the most effective 

technology for reducing diurnal 

emissions from marine fuel tanks is 

through the use of a collapsible fuel 

bladder. In this concept, a lowpermeation bladder is installed in the 

fuel tank to hold the fuel. As fuel is 

drawn from the bladder the vacuum 

created collapses the bladder. There is, 

therefore, no vapor space and no 

pressure build-up from fuel heating. No 

vapors would be vented to the 

atmosphere since the bladder is sealed. 

This option could also significantly 

reduce emissions during refueling that 

would normally result from dispensed 

fuel displacing vapor in the fuel tank. 

We have received comments that this 

would be cost-prohibitive because it 

could increase costs from 30 to 100 

percent, depending on tank size. 

However, bladder fuel tanks have safety 

advantages and they are already sold by 

at least one manufacturer to meet 

market demand in niche applications. 

(d) Running Loss 

Running loss emissions can be 

controlled by sealing the fuel cap and 

routing vapors from the fuel tank to the 

engine intake. In doing so, vapors 

generated by heat from the engine will 

be burned in the engine’s combustion 

chamber. It may be necessary to use a 

valve or limited-flow orifice in the 

purge line to prevent too much fuel 

vapor from reaching the engine and to 

prevent liquid fuel from entering the 

line if the equipment flips over. 

Depending on the configuration of the 

fuel system and purge line, a one-way 

valve in the fuel cap may be desired to 

prevent a vacuum in the fuel tank 

during engine operation. We anticipate 

that a system like this would eliminate 

running loss emissions. However, 

higher temperatures during operation 

and the additional length of vapor line 

would slightly increase permeation. 

Considering these effects, we still 

believe that the system described here 

would reduce running losses from Small 

SI equipment by more than 90 percent. 

Other approaches would be to move the 

fuel tank away from heat sources or to 

use heat protection such as a shield or 

directed air flow. 

We are not considering running loss 

controls for marine vessels. For portable 

fuel tanks and installed fuel tanks on 

larger vessels we would expect the 

significant distance from the engine and 

the cooling effect of operating the vessel 

in water to prevent significant heating of 

the fuel tanks during engine operation. 

For personal watercraft, fuel tanks have 

a sealed system with pressure relief that 

should help contain running loss 

emissions. For other installed fuel tanks, 

we would expect the system for 

controlling diurnal emissions would 

capture about half of any running losses 

that would occur. 

(e) Diffusion 

Many manufacturers today use fuel 

caps that effectively limit the diffusion 

of gasoline from fuel tanks. In fact, the 

proposed diffusion emission standard 

for Small SI equipment is based to a 

large degree on the diffusion control 

capabilities of these fuel caps. As 

discussed in Chapter 5 of the Draft RIA, 

venting a fuel tank through a tube 

(rather than through an open orifice) 

also greatly reduces diffusion. We have 

conducted additional testing with short, 

narrow-diameter vent lines that provide 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28193 

93For additional background related to plans for 

migrating regulations, see ‘‘Plain Language Format 

of Emission Regulations for Nonroad Engines,’’

EPA420–F–02–046, September 2002 (http:// 

www.epa.gov/otaq/regs/nonroad/2002/f02046.pdf). 

enough resistance to diffusion to meet 

the proposed emission standards. 

A secondary benefit of the running 

loss control described above for Small 

SI equipment relates to diffusion 

emissions. In a system that vents 

running loss vapors to the engine, 

venting losses would occur through the 

vapor line to the engine intake, rather 

than through open vents in the fuel cap. 

This approach should therefore 

eliminate diffusion emissions. 

(4) Regulatory Alternatives 

We considered both less and more 

stringent evaporative emission control 

alternatives for fuel systems used in 

Small SI equipment and Marine SI 

vessels. Chapter 11 of the Draft RIA 

presents details on this analysis of 

regulatory alternatives. The results of 

this analysis are summarized below. We 

believe the proposed permeation 

standards are reflective of available 

technology and represent a step change 

in emissions performance. Therefore, 

we consider the same permeation 

control scenario in the less stringent and 

more stringent regulatory alternatives. 

For Small SI equipment, we 

considered a less stringent alternative 

without running loss emission 

standards Small SI engines. However, 

we believe controlling running loss and 

diffusion emissions from nonhandheld 

equipment is feasible at a relatively low 

cost. Running loss emissions can be 

controlled by sealing the fuel cap and 

routing vapors from the fuel tank to the 

engine intake. Other approaches would 

be to move the fuel tank away from heat 

sources or to use heat protection such as 

a shield or directed air flow. Diffusion 

can be controlled by simply using a 

tortuous tank vent path, which is 

commonly used today on Small SI 

equipment to prevent fuel splashing or 

spilling. These emission control 

technologies are relatively straightforward, inexpensive, and achievable in 

the near term. Not requiring these 

controls would be inconsistent with 

section 213 of the Clean Air Act. For a 

more stringent alternative, we 

considered applying a diurnal emission 

standard for all Small SI equipment. We 

believe passively purging carbon 

canisters could reduce diurnal 

emissions by 50 to 60 percent from 

Small SI equipment. However, we 

believe some important issues would 

need to be resolved for diurnal emission 

control, such as cost, packaging, and 

vibration. The cost sensitivity is 

especially noteworthy given the 

relatively low emissions levels (on a 

per-equipment basis) from such small 

fuel tanks. 

For marine vessels, we considered a 

less stringent alternative, where there 

would be no diurnal emission standard 

for vessels with installed fuel tanks. 

However, installed fuel tanks on marine 

vessels are much larger in capacity than 

those used in Small SI applications. Our 

analysis indicates that traditional 

carbon canisters are feasible for boats at 

relatively low cost. While packaging and 

vibration are also issues with marine 

applications, we believe these issues 

have been addressed. Carbon canisters 

were installed on fourteen boats by 

industry in a pilot program. The results 

demonstrated the feasibility of this 

technology. The proposed standards 

would be achievable through 

engineering design-based certification 

with canisters that are very much 

smaller than the fuel tanks. In addition, 

sealed systems, with pressure control 

strategies would be accepted under the 

proposed engineering design-based 

certification. For a more stringent 

scenario, we consider a standard that 

would require boat builders to use an 

actively purged carbon canister. This 

means that, when the engine is 

operating, it would draw air through the 

canister to purge the canister of stored 

hydrocarbons. However, we rejected 

this option because active purge occurs 

infrequently due to the low hours of 

operation per year seen by many boats. 

The gain in overall efficiency would be 

quite small relative to the complexity 

active purge adds into the system in that 

the engine must be integrated into a 

vessel-based control strategy. The 

additional benefit of an actively purged 

diurnal control system is small in 

comparison to the cost and complexity 

of such a system. 

(5) Our Conclusions 

We believe the proposed evaporative 

emission standards reflect what 

manufacturers can achieve through the 

application of available technology. We 

believe the proposed lead time is 

necessary and adequate for fuel tank 

manufacturers, equipment 

manufacturers, and boat builders to 

select, design, and produce evaporative 

emission control strategies that will 

work best for their product lines. We 

expect that meeting these requirements 

will pose a challenge, but one that is 

feasible when taking into consideration 

the availability and cost of technology, 

lead time, noise, energy, and safety. The 

role of these factors is presented in 

detail in Chapters 5 and 6 of the Draft 

RIA. As discussed in Section X, we do 

not believe the proposed standards 

would have negative effects on energy, 

noise, or safety and may lead to some 

positive effects. 

VII. General Concepts Related to 

Certification and Other Requirements 

This section describes general 

concepts concerning the proposed 

emission standards and various 

requirements related to these standards. 

There is a variety of proposed 

requirements that serve to ensure 

effective implementation of the 

emission standards, such as applying for 

certification, labeling engines, and 

meeting warranty requirements. The 

following discussion reviews these 

requirements for Small SI engines and 

outboard and personal-watercraft 

engines that have already been subject 

to exhaust emission standards, explains 

a variety of changes, and describes how 

these provisions apply to evaporative 

emissions. Sterndrive and inboard 

marine engines will be subject to 

emission standards for the first time so 

all these requirements are new for those 

engines. 

Rather than making changes to 

existing regulations, we have drafted 

new regulatory text describing the new 

emission standards and related 

requirements and included that text in 

this proposal. The proposed regulations 

are written in plain-language format. In 

addition to the improved clarity of the 

regulatory text, this allows us to 

harmonize the regulations with our 

other programs requiring control of 

engine emissions.93

The proposed regulatory text migrates 

the existing requirements for Small SI 

engines, including all the emission 

standards and other requirements 

related to getting and keeping a valid 

certificate of conformity, from 40 CFR 

part 90 to 40 CFR part 1054. For 

nonhandheld engines, manufacturers 

must comply with all the provisions in 

part 1054 once the Phase 3 standards 

begin to apply in 2011 or 2012. For 

handheld engines, manufacturers must 

comply with the provisions in part 1054 

starting in 2010. Similarly, we are 

proposing to migrate the existing 

requirements for Marine SI engines from 

40 CFR part 91 to 40 CFR part 1045. 

Manufacturers must comply with the 

provisions in part 1045 for an engine 

once the proposed exhaust emission 

standards begin to apply in 2009. 

The proposed requirements for 

evaporative emissions are described in 

40 CFR part 1060, with some categoryspecific provisions in 40 CFR parts 1045 

and 1054, which are referred to as the 

exhaust standard-setting parts for each 


sroberts on PROD1PC70 with PROPOSALS
28194 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

type of engine. Adopting the provisions 

related to evaporative emissions in a 

broadly applicable part has two main 

advantages. First, we anticipate that in 

many cases boat builders, equipment 

manufacturers, and manufacturers of 

fuel-system components will need to 

certify their products only to the 

standards for evaporative emissions, 

with no corresponding responsibility for 

exhaust emissions. These companies 

will not need to focus on the exhaust 

standard-setting part except to read the 

short section defining the evaporative 

emission standards and requirements. 

Second, manufacturers of fuel-system 

components make products that are not 

necessarily unique to a specific category 

of engines. The regulations in 40 CFR 

parts 1045 and 1054 will highlight the 

standards that apply and provide any 

specific directions in applying the 

general provisions in part 1060. The 

standards, test procedures, and 

certification provisions are almost 

completely uniform across our programs 

so this combined set of evaporativerelated provisions will make it much 

easier for companies to certify their 

products if they are not subject to the 

exhaust emission standards. In Section 

XI we describe how we might apply the 

provisions of part 1060 to recreational 

vehicles regulated under 40 CFR part 

1051. 

Other provisions describing general 

testing procedures, including detailed 

laboratory and equipment specifications 

and procedures for equipment 

calibration and emission measurements, 

are written in 40 CFR part 1065. The 

exhaust standard-setting parts also 

include testing specifications that are 

specific to each type of engine, 

including duty cycles, test-fuel 

specifications, and procedures to 

establish deterioration factors. See 

Section IX for further discussion of 

these test procedures. Engines, 

equipment, and vessels subject to the 

new standard-setting parts (parts 1045, 

1054, and 1060) will also be subject to 

the general compliance provisions in 40 

CFR part 1068. These include 

prohibited acts and penalties, 

exemptions and importation provisions, 

selective enforcement audits, defect 

reporting and recall, and hearing 

procedures. See Section VIII for further 

discussion of these general compliance 

provisions. Both part 1065 and part 

1068 already apply to various other 

engine categories. We are therefore 

publishing in this proposal only the 

changes needed to apply the existing 

regulations to the engines, equipment, 

and vessels covered by this rulemaking. 

A. Scope of Application 

This proposal covers spark-ignition 

propulsion marine engines and vessels 

powered by those engines introduced 

into commerce in the United States. The 

proposal also covers other nonroad 

spark-ignition engines rated at or below 

19 kW and the corresponding 

equipment. The following sections 

describe generally when emission 

standards apply to these products. Refer 

to the specific program discussion in 

Sections III through VI for more 

information about the scope of 

application and timing of the proposed 

standards. 

(1) Do the standards apply to all 

engines, equipment, and vessels or only 

to new products? 

The scope of this proposal is broadly 

set by Clean Air Act section 213(a)(3), 

which instructs us to set emission 

standards for new nonroad engines and 

new nonroad vehicles. Generally 

speaking, the proposed rule is intended 

to cover all new engines and vehicles in 

the identified categories (including any 

associated vehicles, vessels, or other 

equipment). Once the emission 

standards apply to an engine, piece of 

equipment, or fuel-system component 

manufacturers must get a certificate of 

conformity from us before selling them 

or otherwise introducing them into 

commerce in the United States. Note 

that the term ‘‘manufacturer’’ includes 

any individual or company introducing 

into commerce in the United States 

engines, equipment, vessels, or 

components that are subject to emission 

standards. These Clean Air Act 

requirements relate to importation and 

any other means of introducing covered 

products into commerce. In addition to 

any applicable evaporative 

requirements, we also require 

equipment manufacturers that install 

engines from other companies to install 

only certified engines once emission 

standards apply. The certificate of 

conformity (and corresponding emission 

control information label) provides 

assurance that manufacturers have met 

their obligation to make engines, 

equipment, and vessels that meet 

emission standards over the useful life 

we specify in the regulations. 

(2) How do I know if my engine or 

equipment is new? 

We are proposing to define ‘‘new’’

consistent with previous rulemakings. 

Under the proposed definition, a 

nonroad engine (or nonroad equipment) 

is considered new until its title has been 

transferred to the ultimate purchaser or 

the engine has been placed into service. 

This proposed definition would apply 

to engines, equipment, and vessels so 

the nonroad equipment using these 

engines would be considered new until 

their title has been transferred to an 

ultimate buyer. In Section VII.B.1 we 

describe how to determine the model 

year of individual engines, equipment, 

and vessels. 

To further clarify the proposed 

definition of new nonroad engine, we 

are proposing to specify that a nonroad 

engine, equipment, or vessel is placed 

into service when it is used for its 

intended purpose. We are therefore 

proposing that an engine subject to the 

proposed standards is used for its 

intended purpose when it is installed in 

a vessel or other piece of nonroad 

equipment. We need to make this 

clarification because some engines are 

made by modifying a highway or landbased nonroad engine that has already 

been installed on a vessel or other piece 

of equipment, so without this 

clarification, these engines may escape 

regulation. For example, an engine 

installed in a marine vessel after it has 

been used for its intended purpose as a 

land-based highway or nonroad engine 

is considered ‘‘new’’ under this 

definition. We believe this is a 

reasonable approach because the 

practice of adapting used highway or 

land-based nonroad engines may 

become more common if these engines 

are not subject to the standards in this 

proposal. 

In summary, an engine would be 

subject to the proposed standards if it is: 

• Freshly manufactured, whether 

domestic or imported; this may include 

engines produced from engine block 

cores; 

• Installed for the first time in 

nonroad equipment after having 

powered a car, a truck, or a category of 

nonroad equipment subject to different 

emission standards; 

• Installed in new nonroad 

equipment, regardless of the age of the 

engine; or 

• Imported—whether new or used, as 

long as the engine was not built before 

the initial emission standards started to 

apply. 

(3) When do imported engines, 

equipment, and vessels need to meet 

emission standards? 

The proposed emission standards 

would apply to all new engines, 

equipment, and vessels that are used in 

the United States. According to Clean 

Air Act section 216 ‘‘new’’ includes 

engines or equipment that are imported 

by any person, whether freshly 

manufactured or used. Thus, the 

proposed program would include 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28195 

engines that are imported for use in the 

United States whether they are imported 

as loose engines or are already installed 

on a vessel or other piece of nonroad 

equipment built elsewhere. All 

imported engines would need an EPAissued certificate of conformity to clear 

customs, with limited exemptions (as 

described in Section VIII). 

If an engine or piece of nonroad 

equipment that was built after emission 

standards take effect is imported 

without a currently valid certificate of 

conformity, we would still consider it to 

be a new engine, equipment, or vessel. 

This means it would need to comply 

with the emission standards that apply 

based on its model year. Thus, for 

example, a marine vessel manufactured 

in a foreign country in 2009, then 

imported into the United States in 2010, 

would be considered ‘‘new.’’ The 

engines on that piece of equipment 

would have to comply with the 

requirements for the 2009 model year, 

assuming that the engine has not been 

modified and no other exemptions 

apply. This provision is important to 

prevent manufacturers from avoiding 

emission standards by building 

products abroad, transferring their title, 

and then importing them as used 

products. Note that if an imported 

engine has been modified it must meet 

emission standards based on the year of 

modification rather than the year of 

manufacture. See Section V.E.6 and 

Section XI.C for proposed and 

contemplated restrictions related model 

years for importation of new engines 

and equipment. 

(4) Do the standards apply to exported 

engines, equipment, or vessels? 

Engines, equipment, or vessels 

intended for export would generally not 

be subject to the requirements of the 

proposed emission control program, 

except that we would not exempt 

engines exported to countries having 

standards identical to the United States. 

However, engines, equipment, or vessels 

that are exported and subsequently reimported into the United States must be 

certified. For example, this would be the 

case when a foreign company purchases 

engines manufactured in the United 

States for installation in nonroad 

equipment for export back to the United 

States. Those engines would be subject 

to the emission standards that apply on 

the date the engine was originally 

manufactured. If the engine is later 

modified and certified (or recertified), 

the engine is subject to emission 

standards that apply on the date of the 

modification. So, for example, foreign 

equipment manufacturers buying U.S.- 

made engines without recertifying the 

engines will need to make sure they 

purchase complying engines for the 

products they sell in the United States. 

(5) Are there any new products that 

would be exempt from the emission 

standards? 

We are proposing to extend our basic 

nonroad exemptions to the engines, 

equipment, and vessels covered by this 

proposal. These include the testing 

exemption, the manufacturer-owned 

exemption, the display exemption, and 

the national security exemption. These 

exemptions are described in more detail 

in Section VIII.C. 

In addition, the Clean Air Act does 

not consider engines used solely for 

competition to be nonroad engines so 

the proposed emission standards do not 

apply to them. The Clean Air Act 

similarly does not consider engines 

used in stationary applications to be 

nonroad engines; however, EPA has 

proposed to apply emission standards 

for stationary spark-ignition engines that 

are comparable to the standards that 

apply to nonroad engines (71 FR 33804, 

June 12, 2006). As described in Section 

V, we are proposing in this notice to 

apply the Phase 3 standards for Small SI 

engines equally to stationary sparkignition engines at or below 19 kW. 

Refer to the program discussions in 

Sections III through VI for a discussion 

of how the various exclusions apply for 

different categories of engines. 

B. Emission Standards and Testing 

(1) How is the model year determined? 

The proposed emission standards are 

effective on a model-year basis. We are 

proposing to define model year much 

like we do for passenger cars. It would 

generally mean either the calendar year 

or some other annual production period 

based on the manufacturer’s production 

practices. For example, manufacturers 

could start selling 2006 model year 

engines as early as January 2, 2005 as 

long as the production period extends 

until at least January 1, 2006. All of a 

manufacturer’s engines from a given 

model year would have to meet 

emission standards for that model year. 

For example, manufacturers producing 

new engines in the 2006 model year 

would need to comply with the 2006 

standards. 

(2) How do adjustable engine 

parameters affect emission testing? 

Many engines are designed with 

components that can be adjusted for 

optimum performance under changing 

conditions, such as varying fuel quality, 

high altitude, or engine wear. Examples 

of adjustable parameters include spark 

timing, idle speed setting, and fuel 

injection timing. While we recognize the 

need for this practice, we are also 

concerned that engines maintain a 

consistent level of emission control for 

the whole range of adjustability. We are 

therefore proposing to require that 

engines meet emission standards over 

the full adjustment range. 

Manufacturers would have to provide 

a physical stop to prevent adjustment 

outside the established range. Operators 

would then be prohibited from adjusting 

engines outside this range. Refer to the 

proposed regulatory text for more 

information about adjustable engine 

parameters. See especially the proposed 

sections 40 CFR 1045.115 for Marine SI 

engines and 40 CFR 1054.115 for Small 

SI engines. 

(3) Alternate Fuels 

The emission standards apply to all 

spark-ignition engines regardless of the 

fuel they use. Almost all Marine SI 

engines and Small SI engines operate on 

gasoline, but these engines may also 

operate on other fuels, such as natural 

gas, liquefied petroleum gas, ethanol, or 

methanol. The test procedures in 40 

CFR part 1065 describe adjustments 

needed for operating test engines with 

oxygenated fuels. 

In some special cases, a single engine 

is designed to alternately run on 

different fuels. For example, some 

engines can switch back and forth 

between natural gas and LPG. We 

request comment on the best way of 

certifying such engines so they can be 

in a single engine family, even though 

we would normally require engines 

operating on different fuels to be in 

separate engine families. We could 

require such manufacturers to conduct 

emission testing with emission-data 

engines operating on both fuels to 

establish the worst-case configuration. 

In particular, we request comment on 

the appropriate data for demonstrating 

compliance at the end of the serviceaccumulation period for durability 

testing. 

Once an engine is placed into service, 

someone might want to convert it to 

operate on a different fuel. This would 

take the engine out of its certified 

configuration, so we are proposing to 

require that someone performing such a 

fuel conversion go through a 

certification process. We would expect 

to allow certification of the complete 

engine using normal certification 

procedures, or the aftermarket 

conversion kit could be certified using 

the provisions of 40 CFR part 85, 

subpart V. This contrasts with the 

existing provisions that allow for fuel 

conversions that can be demonstrated 


sroberts on PROD1PC70 with PROPOSALS
28196 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

not to increase emission levels above 

the applicable standard. We propose to 

apply this requirement starting January 

1, 2010. (See § 90.1003 and § 1054.635.) 

C. Demonstrating Compliance 

We are proposing a compliance 

program to accompany emission 

standards. This consists first of a 

process for certifying engine models and 

fuel systems (either as a part of or 

independently from the vessel or 

equipment). In addition to certification, 

we are proposing several provisions to 

ensure that emission control systems 

continue to function over long-term 

operation in the field. Most of these 

certification and durability provisions 

are consistent with previous 

rulemakings for these and other nonroad 

engines, equipment, and vessels. Refer 

to the discussion of the specific 

programs in Sections III through VI for 

additional information about these 

requirements for each engine category. 

(1) How would I certify my engines, 

equipment, or vessels? 

Sections III through VI describe the 

proposed emission standards for new 

engines, equipment, and vessels. 

Section VI in particular describes which 

companies are responsible for certifying 

to the new standards. This section 

describes the general certification 

process. 

We are proposing a certification 

process similar to that already adopted 

for these and other engines and 

equipment. Certifying manufacturers 

generally test representative prototype 

engines or fuel system components and 

submit the emission data along with 

other information to EPA in an 

application for a Certificate of 

Conformity. If we approve the 

application, then the manufacturer’s 

Certificate of Conformity allows the 

manufacturer to sell the engines, 

equipment, or vessels described in the 

application in the United States. We are 

proposing to include clarifying language 

to specify that the certificate is valid 

starting with the indicated effective 

date, but that it is not valid for any 

production after December 31 of the 

model year for which it is issued. We 

are also proposing a provision to 

preclude issuance of certificates after 

December 31 of a given model year. This 

would avoid a situation in which a 

manufacturer receives certification after 

it is no longer valid for further 

production. 

We are proposing that manufacturers 

certify their engine models by grouping 

them into emission families. Under this 

approach, engines expected to have 

similar emission characteristics would 

be classified in the same emission 

family. The emission family definition 

is fundamental to the certification 

process and to a large degree determines 

the amount of testing required for 

certification. The proposed regulations 

include specific engine characteristics 

for grouping emission families for each 

category of products. To address a 

manufacturer’s unique product mix, we 

may approve using broader or narrower 

emission families as long as the 

manufacturer can show that all the 

engines in an engine family will have 

similar emission control characteristics 

over the engines’ useful life. 

The useful life period specified in the 

regulations defines the period over 

which manufacturers are responsible for 

meeting emission standards. The useful 

life values included in our regulations 

are intended to reflect the period during 

which engines are designed to properly 

function without being remanufactured. 

Useful life values are unique for each 

category of engines. As proposed, for 

purposes of certification, manufacturers 

would be required to use test data to 

estimate the rate of deterioration for 

each emission family over its useful life. 

Manufacturers would show that each 

emission family meets the emission 

standards after incorporating the 

estimated deterioration in emission 

control. 

The emission-data engine is the 

engine from an emission family that will 

be used for certification testing. To 

ensure that all engines in the family 

meet the standards, we are proposing 

that manufacturers select for 

certification testing the engine from the 

family that is most likely to exceed 

emission standards. In selecting this 

‘‘worst-case’’ engine, the manufacturer 

uses good engineering judgment. 

Manufacturers would consider, for 

example, all engine configurations and 

power ratings within the emission 

family and the range of allowed options. 

Requiring the worst-case engine to be 

tested ensures that all engines within 

the emission family are complying with 

emission standards. A similar approach 

would be used for evaporative emission 

control systems in emission families. 

We are proposing to require 

manufacturers to include in their 

application for certification the results 

of all emission tests from their emissiondata units (engines, fuel tanks, etc.), 

including any diagnostic-type 

measurements (such as ppm testing) and 

invalidated tests. This complete set of 

test data ensures that the valid tests 

forming the basis of the manufacturer’s 

application are a robust indicator of 

emission control performance rather 

than a spurious or incidental test result. 

Clean Air Act section 206(h) specifies 

that test procedures for certification 

(including the test fuel) should 

adequately represent in-use operation. 

We are proposing test fuel specifications 

intended to represent in-use fuels. 

Engines would have to meet the 

standards on fuels with properties 

anywhere in the range of proposed test 

fuel specifications. The test fuel is 

generally to be used for all testing 

associated with the regulations 

proposed in this document, including 

certification, production-line testing, 

and in-use testing. 

We are proposing to require that 

engine manufacturers give engine 

operators instructions for properly 

maintaining their engines. We are 

including limitations on the frequency 

of scheduled maintenance that a 

manufacturer may specify for emissionrelated components to help ensure that 

emission control systems do not depend 

on an unreasonable expectation of 

maintenance in the field. These 

maintenance limits would also apply 

during any service accumulation that a 

manufacturer may do to establish 

deterioration factors. This approach is 

common to all our engine programs. We 

are proposing new regulatory language 

to clarify that engine manufacturers may 

perform emission-related maintenance 

during service accumulation only to the 

extent that they can demonstrate that 

such maintenance will be done with inuse engines. It is important to note, 

however, that these provisions would 

not limit the maintenance an operator 

could perform. It would merely limit the 

maintenance that operators would be 

expected to perform on a regularly 

scheduled basis. Some of these 

requirements are new for engines that 

are already subject to standards. We 

believe it is important to define limits 

to these maintenance parameters, 

especially with the expectation that 

engines will begin to incorporate 

aftertreatment technologies. See 

§ 1045.125 and § 1054.125 of the 

proposed regulations for more 

information. 

(2) What emission labels are required? 

Once an emission family is certified 

every product a manufacturer produces 

from that emission family would need 

an emission label with basic identifying 

information. We request comment on 

the proposed requirements for the 

design and content of engine labels, 

which are detailed in § 1045.135 and 

§ 1054.135 of the proposed regulation 

text. 

The current regulations require 

equipment manufacturers to put a 

duplicate label on the equipment if the 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28197 

94Auxiliary emission control device is defined at 

40 CFR 90.2 and 91.2 as ‘‘ any element of design 

that senses temperature, vehicle speed, engine 

RPM, transmission gear, or any other parameter for 

the purpose of activating, modulating, delaying or 

deactivating the operation of any part of the 

emission control system.’’

engine is installed in a way that 

obscures the label on the engine. We are 

proposing to clarify this requirement for 

duplicate labels to ensure that labels are 

accessible without creating a supply of 

duplicate labels that are not authentic or 

are not used appropriately. Specifically, 

we are proposing to require engine 

manufacturers to supply duplicate 

labels to equipment manufacturers that 

request them and keep records to show 

how many labels they supply. Similarly, 

we are proposing that equipment 

manufacturers must request from engine 

manufacturers a specific number of 

duplicate labels, with a description of 

which engine and equipment models 

are involved and why the duplicate 

labels are necessary. Equipment 

manufacturers would need to destroy 

any excess labels and keep records to 

show the disposition of all the labels 

they receive. This would make it easier 

for us to verify that engines are meeting 

requirements and it would be easier for 

U.S. Customs to clear imported 

equipment with certified engines. 

(3) What requirements apply to 

auxiliary emission control devices? 

Clean Air Act section 203(a) and 

existing regulations prohibit the use of 

a defeat device (see 40 CFR 90.111 and 

91.111). The defeat device prohibition is 

intended to ensure that engine 

manufacturers do not use auxiliary 

emission control devices (AECD) in a 

regulatory test procedure that reduce the 

effectiveness of the emission control 

system during operation that is not 

substantially included in the regulatory 

test procedure.94 We are proposing to 

require manufacturers to describe their 

AECDs and explain why these are not 

defeat devices. 

Under the current regulations, there 

has been limited use of AECDs. 

However, with the proposed new 

emission standards and the 

corresponding engine technologies, we 

expect manufacturers to increase their 

use of engine designs that rely on 

AECDs. Disclosure of the presence and 

purpose of an AECD is essential in 

allowing us to evaluate the AECD and 

determine whether it represents a defeat 

device. 

(4) What warranty requirements apply 

to engines or other products that are 

subject to emission standards? 

Consistent with our current emission 

control programs, we are proposing that 

manufacturers provide a design and 

defect warranty covering emissionrelated components. If the manufacturer 

offers a longer mechanical warranty for 

the engine or any of its components 

without an additional charge, the 

proposed regulations would require that 

the emission-related warranty period 

must be at least as long as the 

commercial warranty for the engine or 

the applicable components. Extended 

warranties that are available for an extra 

price would not trigger a need for a 

longer emission-related warranty. See 

the proposed regulation language for a 

description of which components are 

emission-related. 

If an operator makes a valid warranty 

claim for an emission-related 

component during the warranty period, 

the engine manufacturer is generally 

obligated to replace the component at 

no charge to the operator. The engine 

manufacturer may deny warranty claims 

if the operator failed to do prescribed 

maintenance that contributed to the 

warranty claim. 

We are also proposing a defect 

reporting requirement that applies 

separately from the emission-related 

warranty (see Section VIII.F). In general, 

defect reporting applies when a 

manufacturer discovers a pattern of 

component failures whether that 

information comes from warranty 

claims, voluntary investigation of 

product quality, or other sources. 

(5) Can I meet standards with emission 

credits? 

We are proposing a new emissioncredit program for sterndrive and 

inboard marine engines and for 

evaporative emissions. We are also 

proposing to revise the existing 

emission-credit provisions for outboard 

and personal-watercraft engines and for 

Small SI engines. An emission-credit 

program is an important factor we take 

into consideration in setting emission 

standards that are appropriate under 

Clean Air Act section 213. An emissioncredit program can reduce the cost and 

improve the technological feasibility of 

achieving standards, helping to ensure 

the standards achieve the greatest 

achievable reductions, considering cost 

and other relevant factors, in a time 

frame that is earlier than might 

otherwise be possible. Manufacturers 

gain flexibility in product planning and 

the opportunity for a more cost-effective 

introduction of product lines meeting a 

new standard. Emission-credit programs 

also create an incentive for the early 

introduction of new technology, which 

allows certain emission families to act 

as trailblazers for new technology. This 

can help provide valuable information 

to manufacturers on the technology 

before they apply the technology 

throughout their product line. This early 

introduction of clean technology 

improves the feasibility of achieving the 

standards and can provide valuable 

information for use in other regulatory 

programs that may benefit from similar 

technologies. 

Emission-credit programs generally 

involve averaging, banking, or trading. 

Averaging would allow a manufacturer 

to certify one or more emission families 

at emission levels above the applicable 

emission standards as long as the 

increased emissions are offset by one or 

more emission families certified below 

the applicable standards. The overcomplying families generate credits that 

are used by the under-complying 

families. Compliance is determined on a 

total mass emissions basis to account for 

differences in production volume, 

power, and useful life among emission 

families. The average of all emissions 

for a particular manufacturer’s 

production must be at or below the level 

of the applicable emission standards. 

This calculation generally factors in 

sales-weighted average power, 

production volume, useful life, and load 

factor. Banking and trading would allow 

a manufacturer to generate emission 

credits and bank them for future use in 

its own averaging program in later years 

or sell them to another company. 

A manufacturer choosing to 

participate in an emission-credit 

program would certify each 

participating emission family to a 

Family Emission Limit (FEL). In its 

certification application, a manufacturer 

would determine a separate FEL for 

each pollutant included in the emissioncredit program. The FEL selected by the 

manufacturer becomes the emission 

standard for that emission family. 

Emission credits are based on the 

difference between the emission 

standard that applies and the FEL. The 

engines have to meet the FEL for all 

emission testing. At the end of the 

model year, manufacturers would 

generally need to show that the net 

effect of all their emission families 

participating in the emission-credit 

program is a zero balance or a net 

positive balance of credits. A 

manufacturer could generally choose to 

include only a single pollutant from an 

emission family in the emission-credit 

program or, alternatively, to establish an 

FEL for each of the regulated pollutants. 


sroberts on PROD1PC70 with PROPOSALS
28198 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Refer to the program discussions in 

Sections III through VI for more 

information about emission-credit 

provisions for individual engine or 

equipment categories. We request 

comment on all aspects of the emissioncredit programs discussed in this 

proposal. In particular, we request 

comment on the structure of the 

proposed emission-credit programs and 

how the various provisions may affect 

manufacturers’ ability to utilize 

averaging, banking, or trading to achieve 

the desired emission-reductions in the 

most efficient and economical way. 

(6) How does EPA define maximum 

engine power? 

Maximum engine power is used to 

calculate the value of emission credits. 

For Small SI engines, it is also used to 

determine whether the standards apply; 

for example engines above 1000 cc are 

subject to Small SI standards only if 

maximum engine power is at or below 

19 kW. For Marine SI engines, 

maximum engine power is also used to 

determine the emission standard that 

applies to a particular engine and to 

calculate emission credits. The 

regulations give no specific direction for 

defining maximum power for 

determining whether part 90 applies. 

Marine SI engine manufactures declare 

a rated power based on a procedure 

specified in a voluntary consensus 

standard, while credit calculations are 

based on sales-weighted average power 

for an engine family. We are concerned 

that these terms and specifications are 

not objective enough to ensure 

consistent application of regulatory 

requirements to all manufacturers. To 

the extent that manufacturers can 

determine different values of rated 

power or maximum engine power, they 

could be subject to different emission 

standards and calculate emission credits 

differently for otherwise identical 

engines. We believe it is important that 

a single power value be determined 

objectively according to a specific 

regulatory definition. Note that 

maximum engine power is not used 

during engine testing. 

We are proposing to standardize the 

determination of maximum engine 

power by relying primarily on the 

manufacturer’s design specifications 

and the maximum torque curve that the 

manufacturer expects will represent the 

actual production engines. Under this 

approach the manufacturer would take 

the torque curve that is projected for an 

engine configuration, based on the 

manufacturer’s design and production 

specifications, and convert it into a 

‘‘nominal power curve’’ that would 

relate the maximum expected power to 

engine speed when a production engine 

is mapped according to our specified 

mapping procedures. The maximum 

engine power is the maximum power 

point on that nominal power curve. This 

has become the standard approach for 

all our emission control programs. 

Manufacturers would report the 

maximum engine power of each 

configuration in the application for 

certification. As with other engine 

parameters, manufacturers would 

ensure that the engines they produce 

under the certificate have maximum 

engine power consistent with those 

described in their applications. 

However, since we recognize that 

variability is a normal part of engine 

production, we allow a tolerance around 

the nominal value. We would instead 

require only that the power specified in 

the application be within the normal 

power range for production engines (see 

§ 1045.140 and § 1054.140). We would 

typically expect the specified power to 

be within one standard deviation of the 

mean power of the production engines. 

If a manufacturer determines that the 

specified power is outside of the normal 

range for production engines, we may 

require the manufacturer to amend the 

application for certification. 

Manufacturer could alternatively change 

their engines to conform to the 

parameters detailed in the application 

for certification. In deciding whether to 

require a change to the application for 

certification, we would consider the 

degree to which the specified power 

differed from that of the production 

engines, the normal power variability 

for those engines, whether the engine 

used or generated emission credits, and 

whether the error affects which 

standards apply to the engine. 

(7) What are the proposed productionline testing requirements? 

We are proposing to modify 

production-line testing requirements for 

engines already subject to exhaust 

emission standards and to extend these 

requirements to sterndrive and inboard 

marine engines. According to these 

requirements, manufacturers would 

routinely test production-line engines to 

help ensure that newly assembled 

engines control emissions at least as 

well as the emission-data engines tested 

for certification. Production-line testing 

serves as a quality-control step, 

providing information to allow early 

detection of any problems with the 

design or assembly of freshly 

manufactured engines. This is different 

than selective enforcement auditing 

where we would give a test order for 

more rigorous testing for productionline engines in a particular emission 

family (see Section VIII.E). 

If an engine fails to meet an emission 

standard, the manufacturer must modify 

it to bring that specific engine into 

compliance. If too many engines exceed 

emission standards, the manufacturer 

will need to correct the problem for the 

engine family. This correction may 

involve changes to assembly procedures 

or engine design, but the manufacturer 

must, in any case, do sufficient testing 

to show that the emission family 

complies with emission standards. 

The proposed production-line testing 

programs would depend on the 

Cumulative Sum (CumSum) statistical 

process for determining the number of 

engines a manufacturer needs to test. 

We have used CumSum procedures for 

production-line testing with several 

other engine categories. Each 

manufacturer selects engines randomly 

at the beginning of a new sampling 

period. If engines must be tested at a 

facility where final assembly is not yet 

completed, manufacturers must 

randomly select engine components and 

assemble the test engine according to 

their established assembly instructions. 

The sampling period is a calendar 

quarter for engine families over 1,600 

units. The minimum testing rate for 

these families is five engines per year. 

For engine families with projected sales 

at or below 1,600 units, the sampling 

period is a calendar year and the 

minimum testing rate is two engines. 

We may waive testing requirements for 

Marine SI engine families with 

projected sales below 150 units per year 

and for Small SI engine families with 

projected sales below 5,000 units per 

year. The CumSum program uses the 

emission results to calculate the number 

of tests required for the remainder of the 

sampling period to reach a pass or fail 

determination. If tested engines have 

relatively high emissions, the statistical 

sampling method calls for an increased 

number of tests to show that the 

emission family meets emission 

standards. The remaining number of 

tests is recalculated after the 

manufacturer tests each engine. Engines 

selected should cover the broadest range 

of production configurations possible. 

Tests should also be distributed evenly 

throughout the sampling period to the 

extent possible. 

Under the CumSum approach, a 

limited number of individual engines 

can exceed the emission standards 

before the Action Limit is met and the 

engine family itself fails under the 

production-line testing program. If an 

engine family fails, we may suspend the 

certificate. The manufacturer would 

then need to take steps to address the 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28199 

95The regulatory text in the proposal does not 

republish the provisions of part 1068 that we are 

not proposing to change. For the latest full-text 

version of part 1068, see http://www.gpoaccess.gov/ 

ecfr/index.html. Note that part 1068 is in Title 40, 

Protection of Environment. 

nonconformity, which may involve 

amending the application for 

certification. This could involve 

corrected production procedures, a 

modified engine design. This may also 

involve changing the Family Emission 

Limit if there is no defect and the 

original Family Emission Limit was 

established using good engineering 

judgment. Note, however, that we 

propose to require manufacturers to 

adjust or repair every failing engine and 

retest it to show that it meets the 

emission standards. Note also that all 

production-line emission measurements 

must be included in the periodic reports 

to us. This includes any type of 

screening or surveillance tests 

(including ppm measurements), all data 

points for evaluating whether an engine 

controls emissions ‘‘off-cycle,’’ and any 

engine tests that exceed the minimum 

required level of testing. 

While the proposed requirements may 

involve somewhat more testing than is 

currently required under 40 CFR part 90 

or 91, there are several factors that limit 

the additional burden. First, the testing 

regulations in 40 CFR part 1065 specify 

that manufacturers may use field-testing 

equipment and procedures to measure 

emissions from production-line engines. 

This may substantially reduce the cost 

of testing individual engines by 

allowing much lower-cost equipment 

for measuring engines following 

assembly. 

Second, we are proposing to reduce 

the testing requirements for emission 

families that consistently meet emission 

standards. The manufacturer may 

request a reduced testing rate for 

emission families with no productionline tests exceeding emission standards 

for two consecutive years. The 

minimum testing rate is one test per 

emission family for one year. Our 

approval for a reduced testing rate 

would apply for a single model year. 

Third, as we have concluded in other 

engine programs, some manufacturers 

may have unique circumstances that 

call for different methods to show that 

production engines comply with 

emission standards. We therefore 

propose to allow a manufacturer to 

suggest an alternate plan for testing 

production-line engines as long as the 

alternate program is as effective at 

ensuring that the engines will comply. 

A manufacturer’s petition to use an 

alternate plan should address the need 

for the alternative and should justify 

any changes from the regular testing 

program. The petition must also 

describe in detail the equivalent 

thresholds and failure rates for the 

alternate plan. If we approve the plan, 

we would use these criteria to 

determine when an emission family 

would become noncompliant. It is 

important to note that this allowance is 

intended only to provide flexibility and 

is not intended to affect the stringency 

of the standards or the production-line 

testing program. 

Refer to the specific program 

discussions in Sections III, IV, and V for 

additional information about 

production-line testing for different 

types of engines. 

D. Other Concepts 

(1) What are the proposed emissionrelated installation instructions? 

For manufacturers selling loose 

engines to equipment manufacturers, we 

are proposing to require that the engine 

manufacturer develop a set of emissionrelated installation instructions. This 

would include anything that the 

installer would need to know to ensure 

that the engine operates within its 

certified design configuration. For 

example, the installation instructions 

could specify a total capacity needed 

from the engine cooling system, 

placement of catalysts after final 

assembly, or specification of parts 

needed to control evaporative 

emissions. If equipment manufacturers 

fail to follow the established emissionrelated installation instructions, we 

would consider this tampering, which 

could subject them to significant civil 

penalties. Refer to the proposed 

regulations for more information about 

specific provisions related to 

installation instructions (see § 1045.130 

and § 1054.130). 

(2) What is an agent for service? 

We are proposing to require that 

manufacturers identify an agent for 

service in the United States in their 

application for certification. The named 

person should generally be available 

within a reasonable time to respond to 

our attempts to make contact, either by 

telephone, e-mail, or in person. The 

person should also be capable of 

communicating about matters related to 

emission program requirements in 

English. (See § 1045.205 and 

§ 1054.205). 

(3) Are there special provisions for 

small manufacturers of these engines, 

equipment, and vessels? 

The scope of this proposal includes 

many engine, equipment, and vessel 

manufacturers that have not been 

subject to our regulations or certification 

process. Many of these manufacturers 

are small businesses. The sections 

describing the proposed emission 

control program include discussion of 

proposed special compliance provisions 

designed to address small business 

issues for the different types of engines 

and other products covered by the rule. 

Section XIV.B gives an overview of the 

inter-agency process in which we 

developed these small-volume 

provisions. 

VIII. General Nonroad Compliance 

Provisions 

This section describes a wide range of 

compliance provisions that apply 

generally to all the engines and 

equipment that would be subject to the 

proposed standards. Several of these 

provisions apply not only to engine 

manufacturers but also to equipment 

manufacturers installing certified 

engines, remanufacturing facilities, 

operators, and others. 

For standards that apply to equipment 

or fuel-system components, the 

provisions generally applicable to 

engine manufacturers would also apply 

to the equipment or component 

manufacturers. While this preamble 

section is written as if it would apply to 

engine exhaust standards, the same 

provisions would apply for equipment 

or component evaporative standards. 

We are proposing extensive revisions to 

the regulations to more carefully make 

these distinctions. 

As described in Section VII, we are 

proposing to migrate these general 

compliance provisions from 40 CFR 

parts 90 and 91 to the established 

regulatory text in 40 CFR part 1068. The 

provisions in part 1068 already apply to 

other engine categories and we believe 

they can be applied to Small SI engines 

and Marine SI engines with minimal 

modification. Note that Section XI.C 

describes a variety of proposed changes 

and updates to the regulatory provisions 

in part 1068. We request comment on all 

aspects of part 1068 for these engines. 

The following discussion follows the 

sequence of the existing regulatory text 

in part 1068.95

A. Miscellaneous Provisions (Part 1068, 

Subpart A) 

This regulation contains some general 

provisions, including general 

applicability and the definitions that 

apply to part 1068. Other provisions 

concern good engineering judgment, 

how we would handle confidential 

information, how the EPA 

Administrator delegates decisionVerDate Aug<31>2005 17:21 May 17, 2007 Jkt 211001 PO 00000 Frm 00103 Fmt 4701 Sfmt 4702 E:\FR\FM\18MYP2.SGM 18MYP2

sroberts on PROD1PC70 with PROPOSALS
28200 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

96 ‘‘Interim Tampering Enforcement Policy,’’ EPA 

memorandum from Norman D. Shutler, Office of 

General Counsel, June 25, 1974 (Docket A–2000–01; 

document II–B–20). 

97EPA acted to adjust the maximum penalty 

amount in 1996 (61 FR 69364, December 31, 1996). 

See also 40 CFR part 19. 

making authority, and when we may 

inspect facilities, engines, or records. 

The process of testing engines and 

preparing an application for 

certification requires the manufacturer 

to make a variety of judgments. This 

includes, for example, selecting test 

engines, operating engines between 

tests, and developing deterioration 

factors. EPA has the authority to 

evaluate whether a manufacturer’s use 

of engineering judgment is reasonable. 

The regulations describe the 

methodology we use to address any 

concerns related to a manufacturer’s use 

of good engineering judgment in cases 

where the manufacturer has such 

discretion (see 40 CFR 1068.5). We will 

take into account the degree to which 

any error in judgment was deliberate or 

in bad faith. This subpart is consistent 

with provisions already adopted for 

light-duty highway vehicles and various 

other nonroad engines. 

B. Prohibited Acts and Related 

Requirements (Part 1068, Subpart B) 

The proposed provisions in this 

subpart lay out a set of prohibitions for 

engine manufacturers, equipment 

manufacturers, operators, and engine 

rebuilders to ensure that engines 

comply with the emission standards. 

These provisions are summarized below 

but readers are encouraged to review the 

regulatory text. These provisions are 

intended to help ensure that each new 

engine sold or otherwise entered into 

commerce in the United States is 

certified to the relevant standards, that 

it remains in its certified configuration 

throughout its lifetime, and that only 

certified engines are used in the 

appropriate nonroad equipment. 

(1) General Prohibitions (§ 1068.101) 

This proposed regulation contains 

several prohibitions consistent with the 

Clean Air Act. We generally prohibit 

selling a new engine in the United 

States without a valid certificate of 

conformity issued by EPA, deny us 

access to relevant records, or keep us 

from entering a facility to test or inspect 

engines. In addition, no one may 

manufacture any device that will make 

emission controls ineffective or remove 

or disable a device or design element 

that may affect an engine’s emission 

levels, which we would consider 

tampering. We have generally applied 

the existing policies developed for 

tampering with highway engines and 

vehicles to nonroad engines.96 Other 

prohibitions reinforce manufacturers’

obligations to meet various certification 

requirements. We also prohibit selling 

engine parts that prevent emission 

control systems from working properly. 

Finally, for engines that are excluded 

from regulation based on their use in 

certain applications, we generally 

prohibit using these engines in 

applications for which emission 

standards apply. 

Each prohibited act has a 

corresponding maximum penalty as 

specified in Clean Air Act section 205. 

As provided for in the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, Pub. L. 10–410, these maximum 

penalties are in 1970 dollars and should 

be periodically adjusted by regulation to 

account for inflation. The current 

penalty amount for most violations is 

$32,500.97

(2) Equipment Manufacturer Provisions 

(§ 1068.105) 

The provisions of § 1068.105 require 

equipment manufacturers to use 

certified engines in their new 

equipment once the emission standards 

begin to apply. We would allow a grace 

period for equipment manufacturers to 

deplete their supply of uncertified 

engines if they follow their normal 

inventory practices for buying engines, 

rather than stockpiling noncompliant 

(or previous-tier) engines to circumvent 

the new standards. 

We require equipment manufacturers 

to observe the engine manufacturers’

emission-related installation 

instructions to ensure that the engines 

remain consistent with the application 

for certification. This may include such 

things as radiator specifications, 

diagnostic signals and interfaces, and 

placement of catalytic converters. 

If equipment manufacturers install a 

certified engine in a way that obscures 

the engine label, we propose to require 

that they add a duplicate label on the 

equipment. The equipment 

manufacturer would need to request 

from the engine manufacturer a specific 

number of duplicate labels, describe 

which engine and equipment models 

are involved, and explain why the 

duplicate labels are necessary. 

Equipment manufacturers would need 

to destroy any excess labels and keep 

records to show the disposition of all 

the labels they receive. This would 

make it easier for us to verify that 

engines are meeting requirements and it 

would be easier for U.S. Customs to 

clear imported equipment with certified 

engines. 

Equipment manufacturers not 

fulfilling the responsibilities we 

describe in this section would be in 

violation of one or more of the 

prohibited acts described above. 

(3) In-Service Engines (§ 1068.110) 

The regulations generally prevent 

manufacturers from requiring owners to 

use any certain brand of aftermarket 

parts as well as give the manufacturers 

responsibility for engine servicing for 

emission-related warranty issues, 

leaving the responsibility for all other 

maintenance with the owner. This 

proposed regulation would also reserve 

our right to do testing (or require 

testing), for example, to investigate 

potential defeat devices or in-use 

noncompliance, as authorized by the 

Clean Air Act. 

(4) Engine Rebuilding (§ 1068.120) 

We are proposing to apply rebuild 

provisions for all the nonroad engines 

subject to the proposed emission 

standards. This approach is similar to 

what applies to heavy-duty highway 

engines and most other nonroad 

engines. This is necessary to prevent an 

engine rebuilder from rebuilding 

engines in a way that disables the 

engine’s emission controls or 

compromises the effectiveness of the 

emission control system. We are 

proposing minimal recordkeeping 

requirements for businesses involved in 

commercial engine rebuilding to show 

that they comply with the regulations. 

In general, anyone who rebuilds a 

certified engine must restore it to its 

original (or a lower-emitting) 

configuration. Rebuilders must also 

replace some critical emission control 

components such as fuel injectors and 

oxygen sensors in all rebuilds for 

engines that use those technologies. 

Rebuilders must replace an existing 

catalyst if there is evidence that it is not 

functional; for example, if rattling 

pieces inside a catalyst show that it has 

lost its physical integrity, it would need 

to be replaced. See § 1068.120 for more 

detailed information. 

These rebuilding provisions define 

good maintenance and rebuilding 

practices to help someone avoid 

violating the prohibition on ‘‘removing 

or disabling’’ emission control systems. 

These provisions therefore apply also to 

individuals who rebuild their own 

engines. However, we do not require 

such individuals to keep records to 

document compliance. 

We request comment on applying 

these proposed requirements for engine 

rebuilding and maintenance to the 

engines and vehicles subject to this 

rulemaking. In addition, we request 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28201 

comment on the associated 

recordkeeping requirements. 

C. Exemptions (Part 1068, Subpart C) 

We are proposing to apply several 

exemptions for certain specific 

situations, consistent with previous 

rulemakings. In general, exempted 

engines would need to comply with the 

requirements only in the sections 

related to the exemption. Note that 

additional restrictions could apply to 

importing exempted engines (see 

Section VIII.D). We may also require 

manufacturers (or importers) to add a 

permanent label describing that the 

engine is exempt from emission 

standards for a specific purpose. In 

addition to helping us enforce emission 

standards, this would help ensure that 

imported engines clear Customs without 

difficulty. 

(1) Testing 

Anyone would be allowed to request 

an exemption for engines used only for 

research or other investigative purposes. 

(2) Manufacturer-Owned Engines 

Engines that are used by engine 

manufacturers for development or 

marketing purposes could be exempted 

from regulation if they are maintained 

in the manufacturers’ possession and 

are not used for any revenue-generating 

service. In contrast with the testing 

exemption, only certificate holders 

would be able to use this exemption. 

(3) Display Engines 

Anyone may request an exemption for 

an engine if it is for display only. 

(4) National Security 

Engine manufacturers could receive 

an exemption for engines they can show 

are needed by an agency of the federal 

government responsible for national 

defense. For cases where the engines 

will not be used on combat applications, 

the manufacturer would have to request 

the exemption with the endorsement of 

the procuring government agency. 

(5) Exported Engines 

Engines that will be exported to 

countries that do not have the same 

emission standards as those that apply 

in the United States would be exempted 

without need for a request. This 

exemption would not be available if the 

destination country has the same 

emission standards as those in the 

United States. 

(6) Competition Engines 

New engines that are used solely for 

competition are excluded from 

regulations applicable to nonroad 

engines. For purposes of our 

certification requirements, a 

manufacturer would receive an 

exemption if it can show that it 

produces the engine specifically for use 

solely in competition (see Sections III 

through V for specific provisions). In 

addition, engines that have been 

modified for use in competition would 

be exempt from the prohibition against 

tampering described above (without 

need for request). The literal meaning of 

the term ‘‘used solely for competition’’

would apply for these modifications. 

We would therefore not allow the 

engine to be used for anything other 

than competition once it has been 

modified. This also applies to someone 

who would later buy the engine, so we 

would require the person modifying the 

engine to remove or deface the original 

engine label and inform a subsequent 

buyer in writing of the conditions of the 

exemption. 

(7) Replacement Engines 

An exemption would be available to 

engine manufacturers without request if 

that is the only way to replace an engine 

from the field that was produced before 

the current emission standards took 

effect. If less stringent standards applied 

to the old engine when it was new, the 

replacement engine would also have to 

meet those standards. 

(8) Unusual Circumstance Hardship 

Provision 

Under the unusual circumstances 

hardship provision, any manufacturer 

subject to the proposed standards would 

be able to apply for hardship relief if 

circumstances outside their control 

cause the failure to comply and if failure 

to sell the subject engines or equipment 

or fuel system component would have a 

major impact on the company’s 

solvency (see § 1068.245). An example 

of an unusual circumstance outside a 

manufacturer’s control may be an ‘‘Act 

of God,’’ a fire at the manufacturing 

plant, or the unforeseen shutdown of a 

supplier with no alternative available. 

The terms and time frame of the relief 

would depend on the specific 

circumstances of the company and the 

situation involved. As part of its 

application for hardship, a company 

would be required to provide a 

compliance plan detailing when and 

how it would achieve compliance with 

the standards. This hardship provision 

would be available to all manufacturers 

of engines, equipment, boats, and fuel 

system components subject to the 

proposed standards, regardless of 

business size. 

(9) Economic Hardship Provision for 

Small Businesses 

An economic hardship provision 

would allow small businesses subject to 

the proposed standards to petition EPA 

for limited additional lead time to 

comply with the standards (see 

§ 1068.250). A small business would 

have to make the case that it has taken 

all possible business, technical, and 

economic steps to comply, but the 

burden of compliance costs would have 

a significant impact on the company’s 

solvency. Hardship relief could include 

requirements for interim emission 

reductions and/or the purchase and use 

of emission credits. The length of the 

hardship relief decided during review of 

the hardship application would be up to 

one year, with the potential to extend 

the relief as needed. We anticipate that 

one to two years would normally be 

sufficient. As part of its application for 

hardship, a company would be required 

to provide a compliance plan detailing 

when and how it would achieve 

compliance with the standards. This 

hardship provision would be available 

only to small manufacturers of engines, 

equipment, boats, and fuel system 

components subject to the standards. 

For the purpose of determining which 

manufacturers qualify as a small 

business, EPA is proposing criteria 

based on either a production cut-off or 

the number of employees. The proposed 

criteria for determining which 

companies qualify as a small business 

are contained in Section III.F.2 for SD/ 

I engines, Section IV.G for OB/PWC 

engines, Sections V.F.2 for nonhandheld 

engines, V.F.3 for nonhandheld 

equipment, and Section VI.G.2.f for 

handheld equipment, boats, and fuel 

system components. 

(10) Hardship for Equipment 

Manufacturers, Vessel Manufacturers, 

and Secondary Engine Manufacturers 

Equipment manufacturers and boat 

builders in many cases will depend on 

engine manufacturers and fuel system 

component manufacturers to supply 

certified engines and fuel system 

components in time to produce 

complying equipment or boats by the 

date emission standards begin to apply. 

We are aware of other regulatory control 

programs where certified engines have 

been available too late for equipment 

manufacturers to adequately 

accommodate changing engine size or 

performance characteristics. To address 

this concern, we are proposing to allow 

Small SI equipment manufacturers and 

Marine SI boat builders to request up to 

one extra year before using certified 

engines or fuel system components if 


sroberts on PROD1PC70 with PROPOSALS
28202 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

they are unable to obtain certified 

product and they are not at fault and 

would face serious economic hardship 

without an extension. See § 1068.255 for 

the proposed regulatory text related to 

this hardship. 

In addition, we are aware that some 

manufacturers of nonroad engines are 

dependent on another engine 

manufacturer to supply base engines 

that are then modified for the final 

application. Similar to equipment or 

vessel manufacturers, these ‘‘secondary 

engine manufacturers’’ may face 

difficulty in producing certified engines 

if the manufacturer selling the base 

engine makes an engine model 

unavailable with short notice. These 

secondary engine manufacturers 

generally each buy a relatively small 

number of engines and would therefore 

not necessarily be able to influence the 

marketing or sales practices of the 

engine manufacturer selling the base 

engine. As a result, we are proposing 

that secondary engine manufacturers 

could apply for this hardship as well. 

However, because these secondary 

engine manufacturers control the final 

design of their modified engine and 

could benefit in the market if they are 

allowed to produce a product certified 

to less stringent standards than their 

competitors, we would generally not 

approve an exemption unless the 

secondary engine manufacturer 

committed to a plan to make for any 

calculated loss in environmental 

benefit. Provisions similar to this 

hardship were already adopted for Large 

SI engines and recreational vehicles. See 

the existing regulatory text in 

§ 1068.255(c). 

(11) Delegated Final Assembly 

The regulations in 40 CFR 1068.260 

allow for flexible manufacturing for 

companies that produce engines that 

rely on aftertreatment. These regulations 

allow for equipment manufacturers to 

receive separate shipment of 

aftertreatment devices with the 

obligation resting on the equipment 

manufacturer to correctly install the 

aftertreatment on the engine when 

installing the engine in the equipment. 

Allowing for this practice requires an 

exemption from provisions which 

prohibit an engine from being 

introduced into commerce in its 

uncertified configuration. The 

provisions in § 1068.260 to prevent 

improper use of this exemption include 

requirements to (1) Have contractual 

arrangements with equipment 

manufacturers; (2) submit affidavits to 

EPA regarding the use of the exemption; 

(3) include the price of the 

aftertreatment in the cost of the engine 

(to avoid giving equipment 

manufacturers an incentive to reduce 

costs inappropriately); and (4) 

periodically audit the affected 

equipment manufacturers. 

These provisions are not likely to be 

necessary for most Marine SI engine 

manufacturers. We do not expect 

outboard or personal watercraft engine 

manufacturers to use aftertreatment 

technology. For sterndrive/inboard 

engines, we expect catalyst designs 

generally to be so integral to the exhaust 

manifold that engine manufacturers will 

include them with their engines. 

However, their may be some less 

common designs, such as engines on 

large vessels or airboats, where engine 

manufacturers may want to use the 

provisions allowing for separate 

shipment of aftertreatment. We are 

therefore proposing to adopt the 

provisions of § 1068.260 without change 

for Marine SI engines. 

Manufacturers of handheld Small SI 

engines typically build both the engine 

and the equipment so we are proposing 

not to allow for delegated assembly with 

these engines. 

In contrast, nonhandheld engines 

(especially Class II) are built by engine 

manufacturers and sold to equipment 

manufacturers, often without complete 

fuel or exhaust systems. Ensuring that 

consumers get only engines that are in 

a certified configuration therefore 

requires a carefully crafted program. As 

described in Section V.E.2, we are 

proposing special provisions to 

accommodate the unique circumstances 

related to nonhandheld Small SI 

engines. 

(12) Uncertified Engines Subject to 

Emission Standards 

In some cases we require 

manufacturers to meet certain emission 

standards without requiring 

certification, most commonly for 

replacement engines. In 40 CFR 

1068.265 we spell out manufacturers 

obligations for these compliant but 

uncertified engines. Manufacturers must 

have test data showing that their 

engines meet the applicable emission 

standards and are liable for the emission 

performance of their engines, much like 

for certified engines, but are not 

required to submit an application for 

certification and get EPA approval 

before selling the engine. We propose to 

apply these provisions without 

modification for Small SI engines and 

Marine SI engines. 

D. Imports (Part 1068, Subpart D) 

In general, the same certification 

requirements would apply to engines 

and equipment whether they are 

produced in the United States or are 

imported. The regulations in part 1068 

also include some additional provisions 

that would apply if someone wants to 

import an exempted or excluded engine. 

All the proposed exemptions 

described above for new engines would 

also apply to importation, though some 

of these exemptions apply only on a 

temporary basis. An approved 

temporary exemption would be 

available only for a defined period. We 

could require the importer to post bond 

while the engine is in the United States. 

There are several additional proposed 

exemptions that would apply only to 

imported engines. 

• Identical configuration: This is a 

permanent exemption to allow 

individuals to import engines that were 

designed and produced to meet 

applicable emission standards. These 

engines may be different than certified 

engines only in the fact that the 

emission label is missing because they 

were not intended for sale in the United 

States. 

• Ancient engines: We would 

generally treat used engines as new if 

they are imported without a certificate 

of conformity. However, this permanent 

exemption would allow for importation 

of uncertified engines if they are more 

than 20 years old and remain in their 

original configuration. 

• Repairs or alterations: This is a 

temporary exemption to allow 

companies to repair or modify engines. 

This exemption does not allow for 

operating the engine except as needed to 

do the intended work. This exemption 

would also apply for the practice for 

retiring bigger engines; noncompliant 

engines may be imported under this 

exemption for the purpose of recovering 

the engine block. 

• Diplomatic or military: This is a 

temporary exemption to allow 

diplomatic or military personnel to use 

uncertified engines during their term of 

service in the U.S. 

We request comment on all these 

exemptions for domestically produced 

and imported engines and vehicles. 

E. Selective Enforcement Audit (Part 

1068, Subpart E) 

Clean Air Act section 206(b) gives us 

the discretion in any program with 

vehicle or engine emission standards to 

do selective enforcement auditing of 

production engines. We would do a 

selective enforcement audit by choosing 

an engine family and giving the 

manufacturer a test order that details a 

testing program to show that 

production-line engines meet emission 

standards. The regulation text describes 

the audit procedures in greater detail. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28203 

We intend generally to rely on 

manufacturers’ testing of productionline engines to show that they are 

consistently building products that 

conform to the standards. However, we 

reserve our right to do selective 

enforcement auditing if we have reason 

to question the emission testing 

conducted and reported by the 

manufacturer or for other reasons. 

F. Defect Reporting and Recall (Part 

1068, Subpart F) 

We are proposing to apply the defect 

reporting requirements of § 1068.501 to 

replace the provisions of 40 CFR part 85 

for nonroad engines. The requirements 

obligate manufacturers to tell us when 

they learn that emission control 

components or systems are defective 

and to conduct investigations under 

certain circumstances to determine if an 

emission-related defect is present. We 

are also proposing a requirement that 

manufacturers initiate these 

investigations when warranty claims 

and other available information indicate 

that a defect investigation may be 

fruitful. For this purpose, we consider 

defective any part or system that does 

not function as originally designed for 

the regulatory useful life of the engine 

or the scheduled replacement interval 

specified in the manufacturer’s 

maintenance instructions. 

We believe the investigation 

requirement proposed in this rule will 

allow both EPA and the engine 

manufacturers to fully understand the 

significance of any unusually high rates 

of warranty claims that may have an 

impact on emissions. We believe 

prudent engine manufacturers already 

conduct a thorough investigation when 

available data indicate recurring parts 

failures as part of their normal practice 

to ensure product quality. Such data are 

valuable and readily available to most 

manufacturers and, under this proposal, 

must be considered to determine 

whether or not there is a possible defect 

of an emission-related part. 

Defect reports submitted in 

compliance with the current regulations 

are based on a single threshold 

applicable to engine families of all 

production volumes. No affirmative 

requirement for gathering information 

about the full extent of the problem 

applies. Many Small SI engine families 

have very high sales volumes. The 

proposed approach may therefore result 

in fewer total defect reports that should 

be submitted compared with the 

traditional approach because the 

number of defects triggering the 

submission requirement generally rises 

in proportion to the engine family size. 

Under the existing regulations, very 

small engine families would likely 

never report even a prominent defect 

because a relatively high proportion of 

such engines would have to be known 

to be defective before reporting is 

required under a scheme with fixed 

thresholds. The proposed threshold for 

reporting for the smallest engine 

families is therefore lower than under 

the current regulations. 

We are aware that accumulation of 

warranty claims will likely include 

many claims and parts that do not 

represent defects, so we are establishing 

a relatively high threshold for triggering 

the manufacturer’s responsibility to 

investigate whether there is, in fact, a 

real occurrence of an emission-related 

defect. 

This proposal is intended to require 

manufacturers to use information we 

would expect them to keep in the 

normal course of business. We believe 

in most cases manufacturers would not 

be required to institute new programs or 

activities to monitor product quality or 

performance. A manufacturer that does 

not keep warranty information may ask 

for our approval to use an alternate 

defect-reporting methodology that is at 

least as effective in identifying and 

tracking potential emission-related 

defects as the proposed requirements. 

However, until we approve such a 

request, the proposed thresholds and 

procedures continue to apply. 

The proposed investigation thresholds 

are ten percent of total production to 

date up to a total production of 50,000 

engines, but never fewer than 50 for any 

single engine family in one model year. 

For production between 50,000 and 

550,000 units, the investigation 

threshold would increase at a marginal 

rate of four percent. For all production 

above 550,000 an investigation 

threshold of 25,000 engines would 

apply. For example, for an engine family 

with a sales volume of 20,000 units in 

a given model year, the manufacturer 

would have to investigate potential 

emission-related defects after 

identifying 2,000 possible defects. For 

an engine family with a sales volume of 

450,000 units in a given model year, the 

manufacturer would have to investigate 

potential emission-related defects after 

identifying 21,000 possible defects. 

These thresholds reflect the relevant 

characteristics of nonroad engines, such 

as the varying sales volumes, engine 

technologies, and warranty and 

maintenance practices. 

To carry out an investigation to 

determine if there is an emission-related 

defect, manufacturers would have to use 

available information such as 

preexisting assessments of warranted 

parts. Manufacturers would also have to 

gather information by assessing 

previously unexamined parts submitted 

with warranty claims and replacement 

parts which are available or become 

available for examination and analysis. 

If available parts are deemed too 

voluminous to conduct a timely 

investigation, manufacturers would be 

permitted to employ appropriate 

statistical analyses of representative 

data to help draw timely conclusions 

regarding the existence of a defect. 

These investigative activities should be 

summarized in the periodic reports of 

recently opened or closed 

investigations, as discussed below. It is 

important to note that EPA does not 

regard having reached the investigation 

thresholds as conclusive proof of the 

existence of a defect, only that initiation 

of an appropriate investigation is 

merited to determine whether a defect 

exists. 

The second threshold in this proposal 

specifies when a manufacturer must 

report that an emission-related defect 

exists. This threshold involves a smaller 

number of engines because each 

potential defect has been screened to 

confirm that it is an emission-related 

defect. In counting engines to compare 

with the defect-reporting threshold, the 

manufacturer would consider a single 

engine family and model year. However, 

when a defect report is required, the 

manufacturer would report all 

occurrences of the same defect in all 

engine families and all model years that 

use the same part. The threshold for 

reporting a defect is two percent of total 

production for any single engine family 

for production up to 50,000 units, but 

never fewer than 20 for any single 

engine family in one model year. For 

production between 50,000 and 550,000 

units, the investigation threshold would 

increase at a marginal rate of one 

percent. For all production above 

550,000 an investigation threshold of 

6,000 engines would apply. 

It is important to note that while EPA 

regards occurrence of the defect 

threshold as proof of the existence of a 

reportable defect, it does not regard that 

occurrence as conclusive proof that 

recall or other action is merited. 

If the number of engines with a 

specific defect is found to be less than 

the threshold for submitting a defect 

report, but warranty claims or other 

information later indicate additional 

potentially defective engines, under this 

proposal the information must be 

aggregated for the purpose of 

determining whether the threshold for 

submitting a defect report has been met. 

If a manufacturer has knowledge from 

any source that the threshold for 

submitting a defect report has been met, 


sroberts on PROD1PC70 with PROPOSALS
28204 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

98Note that the published procedures still apply 

if we approve a manufacturer’s use of an alternative 

procedure. EPA testing may be done using the 

published procedures or the alternate procedures 

approved for a given engine family. 

a defect report would have to be 

submitted even if the trigger for 

investigating has not yet been met. For 

example, if manufacturers receive 

information from their dealers, technical 

staff, or other field personnel showing 

conclusively that a recurring emissionrelated defect exists, they would have to 

submit a defect report if the submission 

threshold is reached. 

At specified times, the manufacturer 

would have to report open 

investigations as well as recently closed 

investigations that did not require a 

defect report. We are not proposing a 

fixed time limit for manufacturers to 

complete their investigations. However, 

the periodic reports required by the 

regulations will allow us to monitor 

these investigations and determine if it 

is necessary or appropriate for us to take 

further action. 

We request comment on all aspects of 

this approach to defect reporting. We 

also request comment on whether these 

reporting requirements should also 

apply to the current Phase 2 compliance 

program and if so, when these 

provisions should be applied. 

Under Clean Air Act section 207, if 

we determine that a substantial number 

of engines within an engine family, 

although properly used and maintained, 

do not conform to the appropriate 

emission standards, the manufacturer 

must remedy the problem and conduct 

a recall of the noncomplying engine 

family. However, we recognize that in 

some cases recalling noncomplying 

nonroad engines may not achieve 

sufficient environmental protection, so 

instead of making a determination of a 

substantial number of nonconforming 

engines (and thereby triggering a recall 

responsibility), we may allow 

manufacturers in some cases to 

nominate alternative remedial measures 

to address most potential 

noncompliance situations. 

G. Hearings (Part 1068, Subpart G) 

According to this regulation, 

manufacturers would have the 

opportunity to challenge our decision to 

deny an application for certification or 

to suspend, revoke, or void an engine 

family’s certificate. This also applies to 

our decision to reject the manufacturer’s 

use of good engineering judgment (see 

§ 1068.5), and to our decisions related to 

emission-credit programs. Part 1068, 

subpart G, references the proposed 

procedures for a hearing to resolve such 

disputes. 

IX. General Test Procedures 

The regulatory text in part 1065 is 

written with the intent to apply broadly 

to EPA engine programs. Part 1065 was 

originally adopted on November 8, 2002 

(67 FR 68242) and currently applies for 

nonroad diesel engines, large nonroad 

spark-ignition engines and recreational 

vehicles under 40 CFR parts 1039, 1048 

and 1051, respectively. The regulatory 

text was substantially revised in a recent 

rulemaking to make a variety of 

corrections and improvements (70 FR 

40420, July 13, 2005). 

This proposal applies to anyone who 

tests engines to show that they meet the 

emission standards for Small SI engines 

or Marine SI engines. This includes 

certification testing as well as all 

production-line and in-use testing. See 

the program descriptions above for 

testing provisions that are unique to 

each category of engines. 

We are proposing to apply the 

existing test provisions in part 1065 for 

all Small SI engines and Marine SI 

engines. See Sections III through V for 

testing issues that are specific to the 

particular engine categories. In addition, 

we are proposing to allow 

manufacturers to use the provisions of 

part 1065 even before the proposed new 

standards take effect. This would allow 

manufacturers to migrate to the new test 

procedures sooner. This may involve 

upgrading to different types of analyzers 

that are specified in part 1065 but not 

in part 90 or part 91. It may also involve 

recoding computers to do modal 

calculations specified in part 1065 

instead of the weight-based calculations 

in part 90 or part 91. At the same time, 

this would allow EPA to do 

confirmatory testing using the upgraded 

procedures without waiting for the 

proposed new standards to apply. This 

is important because EPA testing 

facilities are used for many different 

programs and the conversion to testing 

according to part 1065 specifications is 

well underway. We are aware that the 

new test specifications regarding engine 

mapping, generating duty cycles, and 

applying cycle-validation criteria would 

affect the emission measurements so we 

would follow the manufacturers’

methods for these parameters in any 

case. For any other parameters, we 

would understand any differences 

between test procedures specified in 

parts 90, 91, and 1065 either to have no 

effect on emission measurements or to 

improve the accuracy of the 

measurement. 

We have identified various provisions 

in part 90 and part 91 that may need 

correction or adjustment. We request 

comment on the following possible 

changes: 

• Changing the standard temperature 

condition for volume-related 

calculations in § 90.311(a)(2) and 

§ 91.311(a)(2) from 25 °C to 20 °C. This 

would be consistent with EPA’s test 

regulations, including the specifications 

in § 1065.640. 

• Removing the requirement to derive 

calibration and span gas concentrations 

from NIST Standard Reference Materials 

in § 90.312(c) and § 91.312(c). This goes 

beyond the traceability requirements of 

other EPA test regulations and standard 

lab practices. We could instead refer to 

§ 1065.750 for calibration and span gas 

concentrations. 

• Changing the direction for 

specifying gas concentrations in 

§ 90.312(c)(3) and § 91.312(c)(3) from a 

volumetric basis to a molar basis. 

• Correcting inconsistent 

requirements related to gas dividers. 

The regulations at § 90.312(c)(4) and 

§ 91.312(c)(4) specify an accuracy of ±2 

percent, while § 90.314(c) and 

§ 91.314(c) specify an accuracy of ±1.5 

percent. We could select one of these 

values, or we could refer to the gas 

divider specifications in § 1065.248 and 

§ 1065.307. 

• Correcting inconsistent 

specifications related to the timing of 

CO interference checks. The regulations 

at § 90.317(b) and § 91.317(b) specify 

that interference checks occur as part of 

annual maintenance, § 90.325(a) and 

§ 91.325(a) specify that interference 

checks occur after any major repairs that 

could affect analyzer performance. We 

believe it would be most appropriate to 

make these consistent based on the 

specification in § 1065.303, which calls 

for interference checks to occur after 

major maintenance. 

As we have done in previous 

programs, we are proposing specific test 

procedures to define how measurements 

are to be made but would allow the use 

of alternate procedures if they are 

shown to be equivalent to our specified 

procedures.98 The test procedures 

proposed in part 1065 are derived from 

our test procedures in 40 CFR part 86 

for highway heavy-duty gasoline 

engines and light-duty vehicles. The 

procedures have been simplified (and to 

some extent generalized) to better fit 

nonroad engines. The procedures in part 

1065 currently apply to recreational 

vehicles and to nonroad spark-ignition 

engines above 19 kW. We request 

comment on all aspects of these 

proposed test procedures. We also 

request comment regarding whether any 

additional parts of the test procedures 

contained in 40 CFR part 86 (for 

highway vehicles and engines), in other 

parts that apply to nonroad engines, or 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28205 

in ISO 8178 should be incorporated into 

the final test procedures. 

A. Overview 

Part 1065 is organized by subparts as 

shown below: 

• Subpart A: General provisions; 

global information on applicability, 

alternate procedures, units of measure, 

etc. 

• Subpart B: Equipment 

specifications; required hardware for 

testing 

• Subpart C: Measurement 

instruments 

• Subpart D: Calibration and 

verifications; for measurement systems 

• Subpart E: Engine selection, 

preparation, and maintenance 

• Subpart F: Test protocols; step-bystep sequences for laboratory testing and 

test validation 

• Subpart G: Calculations and 

required information 

• Subpart H: Fuels, fluids, and 

analytical gases 

• Subpart I: Oxygenated fuels; special 

test procedures 

• Subpart J: Field testing and portable 

emissions measurement systems 

• Subpart K: Definitions, references, 

and symbols 

The regulations prescribe scaled 

specifications for test equipment and 

measurement instruments by parameters 

such as engine power, engine speed and 

the emission standards to which an 

engine must comply. That way this 

single set of specifications will cover the 

full range of engine sizes and our full 

range of emission standards. 

Manufacturers will be able to use these 

specifications to determine what range 

of engines and emission standards may 

be tested using a given laboratory or 

field testing system. 

The content already adopted in part 

1065 is mostly a combination of 

material from our most recent updates 

to other test procedures and from test 

procedures specified by the 

International Organization for 

Standardization (ISO). There are also 

some provisions we created specifically 

for part 1065, generally to address very 

recent advances such as measuring very 

low concentrations of emissions, using 

new measurement technology, using 

portable emissions measurement 

systems, and performing field testing. 

The content in part 1065 also reflects 

a shift in our approach for specifying 

measurement performance. In the past 

we specified numerous calibration 

accuracies for individual measurement 

instruments, and we specified some 

verifications for individual components 

such as NO2-to-NO converters. We have 

shifted our focus away from individual 

instruments and toward the overall 

performance of complete measurement 

systems. We did this for several reasons. 

First, some of what we specified in the 

past precluded the implementation of 

new measurement technologies. These 

new technologies, sometimes called 

‘‘smart analyzers,’’ combine signals from 

multiple instruments to compensate for 

interferences that were previously 

tolerable at higher emissions levels. 

These analyzers are useful for detecting 

low concentrations of emissions. They 

are also useful for detecting emissions 

from raw exhaust, which can contain 

high concentrations of interferences, 

such as water vapor. This is particularly 

important for field testing, which will 

most likely rely upon raw exhaust 

measurements. Second, this new 

‘‘systems approach’’ requires periodic 

verifications for complete measurement 

systems, which we feel will provide a 

more robust assurance that a 

measurement system as a whole is 

operating properly. Third, the systems 

approach provides a direct pathway to 

demonstrate that a field test system 

performs similarly to a laboratory 

system. Finally, we feel that our systems 

approach will lead to a more efficient 

way of ensuring measurement 

performance in the laboratory and in the 

field. We believe this efficiency will 

stem from less frequent calibrations of 

individual instruments and higher 

confidence that a complete 

measurement system is operating 

properly. 

Below is a brief description of the 

content of each subpart. The discussion 

highlights some recent changes to part 

1065. We are not proposing any changes 

to part 1065 as part of this proposal, but 

we intend to make various changes to 

part 1065 as part of a concurrent 

rulemaking to set new emission 

standards for marine diesel and 

locomotive engines. Manufacturers of 

engines that are the subject of this 

proposal are encouraged to stay abreast 

of testing changes that we propose in 

this other rulemaking. 

(1) Subpart A General Provisions 

In Subpart A we identify the 

applicability of part 1065 and describe 

how procedures other than those in part 

1065 may be used to comply with a 

standard-setting part. In § 1065.10(c)(1) 

we specify that testing must be 

conducted in a way that represents inuse engine operation, such that in the 

rare case where provisions in part 1065 

result in unrepresentative testing, we 

may cooperate with manufacturers to 

work out alternative testing approaches 

for demonstrating compliance with 

emission standards. Another aspect of 

representative testing relates to the 

desire to maintain consistency between 

certification testing and in-use testing. If 

we or manufacturers test in-use engines, 

we would expect the engine to be 

removed from the equipment and 

installed on an engine dynamometer for 

testing with no changes to the engine 

(including the governor, fuel system, 

exhaust system and other components). 

In § 1065.10(c)(7) and § 1065.12 we 

describe a process by which we may 

approve alternative test procedures that 

we determine to be equivalent to (or 

more accurate than) the specified 

procedures. Given the new testing 

specifications in part 1065 and the 

standard-setting parts, and this more 

detailed approach to approving 

alternative test procedures, we will not 

allow manufacturers to continue testing 

based on any earlier approvals for 

alternative testing under part 90 or part 

91. Any manufacturer wishing to 

continue testing with any method, 

device, or specification that departs 

from that included in this proposal 

would need to request approval for such 

testing under § 1065.10(c)(7). 

Other information in this subpart 

includes a description of the 

conventions we use regarding units and 

certain measurements and we discuss 

recordkeeping. We also provide an 

overview of how emissions and other 

information are used for determining 

final emission results. The regulations 

in § 1065.15 include a figure illustrating 

the different ways we allow brakespecific emissions to be calculated. 

In this same subpart, we describe how 

continuous and batch sampling may be 

used to determine total emissions. We 

also describe the two ways of 

determining total work that we approve. 

Note that the figure indicates our default 

procedures and those procedures that 

require additional approval before we 

will allow them. 

(2) Subpart B Equipment Specifications 

Subpart B first describes engine and 

dynamometer related systems. Many of 

these specifications are scaled to an 

engine’s size, speed, torque, exhaust 

flow rate, etc. We specify the use of inuse engine subsystems such as air intake 

systems wherever possible to best 

represent in-use operation when an 

engine is tested in a laboratory. 

Subpart B also describes sampling 

dilution systems. These include 

specifications for the allowable 

components, materials, pressures, and 

temperatures. We describe how to 

sample crankcase emissions. 

The regulations in § 1065.101 include 

a diagram illustrating all the available 

equipment for measuring emissions. 


sroberts on PROD1PC70 with PROPOSALS
28206 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(3) Subpart C Measurement Instruments 

Subpart C specifies the requirements 

for the measurement instruments used 

for testing. These specifications apply to 

both laboratory and field testing. In 

subpart C we recommend accuracy, 

repeatability, noise, and response time 

specifications for individual 

measurement instruments, but note that 

we require that overall measurement 

systems meet the calibrations and 

verifications in Subpart D. 

In some cases we allow new 

instrument types to be used where we 

previously did not allow them. For 

example, we now allow the use of a 

nonmethane cutter for NMHC 

measurement, a nondispersive 

ultraviolet analyzers for NOX

measurement, zirconia sensors for O2

measurement, various raw-exhaust flow 

meters for laboratory and field testing 

measurement, and an ultrasonic flow 

meter for CVS systems. 

(4) Subpart D Calibrations and 

Verifications 

Subpart D describes what we mean 

when we specify accuracy, repeatability 

and other parameters in Subpart C. 

These specifications apply to both 

laboratory and field testing. We are 

adopting calibrations and verifications 

that scale with engine size and with the 

emission standards to which an engine 

is certified. We are replacing some of 

what we have called ‘‘calibrations’’ in 

the past with a series of verifications, 

such as a linearity verification, which 

essentially verifies the calibration of an 

instrument without specifying how the 

instrument must be initially calibrated. 

Because new instruments have built-in 

routines that linearize signals and 

compensate for various interferences, 

our existing calibration specifications 

sometimes conflicted with an 

instrument manufacturer’s instructions. 

In addition, there are new verifications 

in subpart D to ensure that the new 

instruments we specify in Subpart C are 

used correctly. 

(5) Subpart E Engine Selection, 

Preparation, and Maintenance 

Subpart E describes how to select, 

prepare, and maintain a test engine. We 

updated these provisions to include 

both gasoline and diesel engines. 

(6) Subpart F Test Protocols 

Subpart F describes the step-by-step 

protocols for engine mapping, test cycle 

generation, test cycle validation, pre-test 

preconditioning, engine starting, 

emission sampling, and post-test 

validations. We adopted an improved 

way to map and generate cycles for 

constant-speed engines that would 

better represent in-use engine operation. 

We adopted a more streamlined set of 

test cycle and validation criteria. We 

allow modest corrections for drift of 

emission analyzer signals within a 

certain range. 

(7) Subpart G Calculations and Required 

Information 

Subpart G includes all the 

calculations required in part 1065. We 

adopted definitions of statistical 

quantities such as mean, standard 

deviation, slope, intercept, t-test, F-test, 

etc. By defining these quantities 

mathematically we intend to resolve any 

potential ambiguity when we discuss 

these quantities in other subparts. We 

have written all calculations for 

calibrations and emission calculations 

in international units to comply with 15 

CFR part 1170, which removes the 

voluntary aspect of the conversion to 

international units for federal agencies. 

Furthermore, Executive Order 12770 (56 

FR 35801, July 29, 1991) reinforces this 

policy by providing Presidential 

authority and direction for the use of the 

metric system of measurement by 

Federal agencies and departments. For 

our standards that are not completely in 

international units (i.e., grams/ 

horsepower-hour, grams/mile), we 

specify in part 1065 the correct use of 

internationally recognized conversion 

factors. 

We also specify emission calculations 

based on molar quantities for flow rates 

instead of volume or mass. This change 

eliminates the frequent confusion 

caused by using different reference 

points for standard pressure and 

standard temperature. Instead of 

declaring standard densities at standard 

pressure and standard temperature to 

convert volumetric concentration 

measurements to mass-based units, we 

declare molar masses for individual 

elements and compounds. Since these 

values are independent of all other 

parameters, they are known to be 

universally constant. 

(8) Subpart H Fuels, Fluids, and 

Analytical Gases 

Subpart H specifies test fuels, 

lubricating oils and coolants, and 

analytical gases for testing. We are not 

identifying any detailed specification 

for service accumulation fuel. Instead, 

we specify that service accumulation 

fuel must be either a test fuel or a 

commercially available in-use fuel. This 

helps ensure that testing is 

representative of in-use engine 

operation. We are adding a list of ASTM 

specifications for in-use fuels as 

examples of appropriate service 

accumulation fuels. Compared to the 

proposed regulatory language, we have 

clarified that § 1065.10(c)(1) does not 

require test fuels to be more 

representative than the specified test 

fuels. We have added an allowance to 

use similar test fuels that do not meet 

all of the specifications provided they 

do not compromise the manufacturer’s 

ability to demonstrate compliance. We 

also now allow the use of ASTM test 

methods specified in 40 CFR part 80 in 

lieu of those specified in part 1065. We 

did this because we may more 

frequently review and update the ASTM 

methods in part 80 versus those in part 

1065. 

Proper testing requires the use of good 

engineering judgment to maintain the 

stability of analytical gases. 

(9) Subpart I Oxygenated Fuels 

Subpart I describes special procedures 

for measuring certain hydrocarbons 

whenever oxygenated fuels are used. We 

updated the calculations for these 

procedures in Subpart G. We have made 

some revisions to the proposed text to 

make it consistent with the original 

content of the comparable provisions in 

part 86. We have also added an 

allowance to use the California NMOG 

test procedures to measure alcohols and 

carbonyls. 

(10) Subpart J Field Testing and Portable 

Emissions Measurement Systems 

Portable Emissions Measurement 

Systems (PEMS) for field testing for 

marine spark-ignition engines must 

generally meet the same specifications 

and verifications that laboratory 

instruments must meet according to 

subparts B, C, and D. However, we 

allow some deviations from laboratory 

specifications. In addition to meeting 

many of the laboratory system 

requirements, a PEMS must meet an 

overall verification relative to laboratory 

measurements. This verification 

involves repeating a duty cycle several 

times. The duty cycle itself must have 

several individual field-test intervals 

(e.g., NTE events) against which a PEMS 

is compared to the laboratory system. 

This is a comprehensive verification of 

a PEMS. We also adopted a procedure 

for preparing and conducting a field test 

and adopted drift corrections for 

emission analyzers. Given the evolving 

state of PEMS technology, the fieldtesting procedures provide for a number 

of known measurement techniques. We 

have added provisions and conditions 

for using PEMS in an engine 

dynamometer laboratory to conduct 

laboratory testing. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28207 

99 Department of the Interior, Environment, and 

Related Agencies Appropriations Act, 2006, Pub. L. 

109–54, Title II, sec. 205, 119 Stat. 499, 532 (August 

2, 2005). 

100 ‘‘EPA Technical Study on the Safety of 

Emission Controls for Nonroad Spark-Ignition 

Engines < 50 Horsepower,’’ Office of Transportation 

and Air Quality, U.S. Environmental Protection 

Agency, Washington, DC, EPA420–R–06–006, 

March 2006. This document is available in Docket 

EPA–HQ–OAR–2004–0008. This report was also 

subject to peer review, as described in a peer review 

report that is also available in the docket. 

(11) Subpart K Definitions, References, 

and Symbols 

Subpart K includes all the defined 

terms, identification of reference 

materials, and lists of acronyms and 

abbreviations used throughout part 

1065. 

B. Special Provisions for Nonroad 

Spark-Ignition Engines 

While part 1065 defines a wide range 

of specifications to define appropriate 

test procedures, several parameters are 

unique to each program. For example, 

each category of engines has one or 

more duty cycles that describe exactly 

how to operate each engine during the 

test. These category-specific provisions 

are described in part 1045, subpart F, for 

Marine SI engines and in part 1054, 

subpart F, for Small SI engines. 

Manufacturers may run the specified 

steady-state duty cycle either as a series 

of discrete modes or as a ramped-modal 

cycle. The ramped-modal cycle specifies 

the same engine speeds and loads as in 

conventional discrete-mode testing, but 

the modes are connected by gradual 

ramps in engine speed and torque for a 

single, continuous emission-sampling 

period. The different modes are 

connected with twenty-second linear 

speed and torque transitions during 

which emissions are measured. 

Emission sampling therefore starts at the 

beginning of a ramped-modal cycle and 

does not stop until its last mode is 

completed. 

Ramped-modal cycles involve a 

different sequence of modes than is 

specified for discrete-mode testing. For 

example, the first mode, which is engine 

idle, is split so that half the idle mode 

occurs at the beginning of the test and 

half occurs at the end of the test. This 

helps facilitate certain technical aspects 

of emission sampling. Instead of using 

weighting factors for each steady-state 

mode, a ramped-modal cycle specifies 

different time durations for each mode. 

Time durations of the modes and 

transitions are proportioned to the 

established modal weighting factors for 

the specified cycle. 

There are several advantages to 

ramped-modal testing. Using discretemode testing, manufacturers sample 

emissions for an unspecified time 

duration near the end of each individual 

mode. The result is several separate 

measurements that must be combined 

mathematically to yield an overall 

emission result in g/kW-hr. The 

ramped-modal cycle has a single 

emission-sampling period. This 

decreases testing variability and reduces 

the overall cost of running tests. 

Ramped-modal testing also enables the 

use of batch sampling systems such as 

bag samplers. 

X. Energy, Noise, and Safety 

Section 213 of the Clean Air Act 

directs us to consider the potential 

impacts on safety, noise, and energy 

when establishing the feasibility of 

emission standards for nonroad engines. 

Furthermore, section 205 of EPA’s 2006 

Appropriations Act requires us to assess 

potential safety issues, including the 

risk of fire and burn to consumers in 

use, associated with the proposed 

emission standards for nonroad sparkignition engines below 50 horsepower.99

As further detailed in the following 

sections, we expect that the proposed 

exhaust and evaporative emission 

standards will either have no adverse 

affect on safety, noise, and energy or 

will improve certain aspects of these 

important characteristics. A more in 

depth discussion of these topics relative 

to the proposed exhaust and evaporative 

emission standards is contained in 

Chapters 4 and 5 of the Draft RIA, 

respectively. Also, our conclusions 

relative to safety are fully documented 

in our comprehensive safety study 

which is discussed in the next section. 

A. Safety 

We conducted a comprehensive, 

multi-year safety study of spark-ignition 

engines that focused on the four areas 

where we are proposing new emission 

standards.100 These areas are: 

• New catalyst-based HC+NOX

exhaust emission standards for Class I 

and Class II nonhandheld spark-ignition 

engines; 

• New fuel evaporative emission 

standards for nonhandheld and 

handheld equipment; 

• New HC+NOX exhaust emission 

standards for outboard and personal 

watercraft engines and vessels, and a 

new CO exhaust emission standard for 

nonhandheld engines used in marine 

auxiliary applications; and 

• New fuel evaporative emission 

standards for outboard and personal 

watercraft engines and vessels. 

Each of these four areas is discussed 

in greater detail in the next sections. 

(1) Exhaust Emission Standards for 

Small Spark-Ignition Engines 

The technology approaches that we 

assessed for achieving the proposed 

Small SI engine standards included 

exhaust catalyst aftertreatment and 

improvements to engine and fuel system 

designs. In addition to our own testing 

and development effort, we also met 

with engine and equipment 

manufacturers to better understand their 

designs and technology and to 

determine the state of technological 

progress beyond EPA’s Phase 2 emission 

standards. 

The scope of our safety study 

included Class I and Class II engine 

systems that are used in residential 

walk-behind and ride-on lawn mower 

applications, respectively. Residential 

lawn mower equipment was chosen for 

the following reasons. 

• Lawn mowers and the closelyrelated category of lawn tractors 

overwhelmingly represent the largest 

categories of equipment using Class I 

and Class II engines. 

• Consumer Product Safety 

Commission (CPSC) data indicate that 

more thermal burn injuries are 

associated with lawn mowers than 

occur with other nonhandheld 

equipment; lawn mowers therefore 

represent the largest thermal burn risk 

for these classes of engines. 

• General findings regarding 

advanced emission control technologies 

for residential lawn and garden 

equipment carry over to commercial 

lawn and turf care equipment as well as 

to other nonhandheld equipment using 

Class I and Class II engines. 

We conducted the technical study of 

the incremental risk on several fronts. 

First, working with CPSC, we evaluated 

their reports and databases and other 

outside sources to identify those in-use 

situations which create fire and burn 

risk for consumers. The outside sources 

included meetings, workshops, and 

discussions with engine and equipment 

manufacturers. From this information, 

we identified ten scenarios for 

evaluation that covered a 

comprehensive variety of in-use 

conditions or circumstances which 

potentially could lead to an increased 

risk in burns or fires. 

Second, we conducted extensive 

laboratory and field testing of both 

current technology (Phase 2) and 

prototype catalyst-equipped advancedtechnology engines and equipment 

(Phase 3) to assess the emission control 

performance and thermal characteristics 

of the engines and equipment. This 

testing included a comparison of 

exhaust system, engine, and equipment 


sroberts on PROD1PC70 with PROPOSALS
28208 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

101 ‘‘EPA Technical Study on the Safety of 

Emission Controls for Nonroad Spark-Ignition 

Engines < 50 Horsepower,’’ Office of Transportation 

and Air Quality, U.S. Environmental Protection 

Agency, Washington, DC, EPA420-R–06–006, 

March 2006. This document is available in Docket 

EPA-HQ-OAR–2004–0008. 

102 ‘‘EPA Technical Study on the Safety of 

Emission Controls for Nonroad Spark-Ignition 

Engines < 50 Horsepower,’’ Office of Transportation 

and Air Quality, U.S. Environmental Protection 

Agency, Washington, DC, EPA420-R–06–006, 

March 2006. This document is available in Docket 

EPA-HQ-OAR–2004–0008. 

surface temperatures using still and full 

motion video thermal imaging 

equipment. 

Third, we conducted a design and 

process Failure Mode and Effects 

Analyses (FMEA) comparing current 

Phase 2 and Phase 3 compliant engines 

and equipment to evaluate incremental 

changes in risk probability as a way of 

evaluating the incremental risk of 

upgrading Phase 2 engines to meet 

Phase 3 emission standards.101 This is 

an engineering analysis tool to help 

engineers and other professional staff to 

identify and manage risk. In an FMEA, 

potential failure modes, causes of 

failure, and failure effects are identified 

and a resulting risk probability is 

calculated from these results. This risk 

probability is used by the FMEA team 

to rank problems for potential action to 

reduce or eliminate the causal factors. 

Identifying these causal factors is 

important because they are the elements 

that a manufacturer can consider to 

reduce the adverse effects that might 

result from a particular failure mode. 

Our technical work and subsequent 

analysis of all of the data and 

information strongly indicate that 

effective catalyst-based standards can be 

implemented without an incremental 

increase in the risk of fire or burn to the 

consumer either during or after using 

the equipment. Similarly, we did not 

find any increase in the risk of fire 

during refueling or in storage near 

typical combustible materials. For 

example, our testing program 

demonstrated that properly designed 

catalyst-mufflers could, in some cases, 

actually result in systems that were 

significantly cooler than many current 

original equipment mufflers. A number 

of design elements appear useful to 

properly managing heat loads including: 

(1) The use of catalyst designs that 

minimize CO oxidation through careful 

selection of catalyst size, washcoat 

composition, and precious metal 

loading; (2) positioning the catalyst 

within the cooling air flow of the engine 

fan or redirecting some cooling air over 

the catalyst area with a steel shroud; (3) 

redirecting exhaust flow through 

multiple chambers or baffles within the 

catalyst-muffler; and (4) larger catalystmuffler volumes than the original 

equipment muffler. 

(2) Fuel Evaporative Emission Standards 

for Nonhandheld and Handheld Engines 

and Equipment 

We reviewed the fuel line and fuel 

tank characteristics for nonhandheld 

and handheld equipment and evaluated 

control technology which could be used 

to reduce evaporative emissions from 

these two subcategories. The available 

technology is capable of achieving 

reductions in fuel tank and fuel line 

permeation without an adverse 

incremental impact on safety. For fuel 

lines and fuel tanks, the applicable 

consensus safety standards, 

manufacturer specific test procedures 

and EPA requirements are sufficient to 

ensure that there will be no increase in 

the types of fuel leaks that lead to fire 

and burn risk during in-use operation. 

Instead, these standards will reduce 

vapor emissions both during operation 

and in storage. That reduction, coupled 

with some expected equipment 

redesign, is expected to lead to 

reductions in the risk of fire or burn 

without affecting component durability. 

The Failure Mode and Effects 

Analyses, which was described in the 

previous section, also evaluated 

permeation and running loss controls on 

nonhandheld engines. We found that 

these controls would not increase the 

probability of fire and burn risk from 

those expected with current fuel 

systems, but could in fact lead to 

directionally improved systems from a 

safety perspective. Finally, the running 

loss control program being proposed for 

nonhandheld equipment will lead to 

changes that are expected to reduce risk 

of fire during in-use operation. Moving 

fuel tanks away from heat sources, 

improving cap designs to limit leakage 

on tip over, and requiring a tethered cap 

will all help to eliminate conditions 

which lead to in-use problems related to 

fuel leaks and spillage. Therefore, we 

believe the application of emission 

control technology to reduce 

evaporative emissions from these fuel 

lines and fuel tanks will not lead to an 

increase in incremental risk of fires or 

burns and in some cases is likely to at 

least directionally reduce such risks. 

(3) Exhaust Emission Standards for 

Outboard and Personal Watercraft 

Marine Engines and Vessels and Marine 

Auxiliary Engines 

Our analysis of exhaust emission 

standards for OB/PWC engines and 

marine auxiliary engines found that the 

U. S. Coast Guard (USCG) has 

comprehensive safety standards that 

apply to engines and fuel systems used 

in these vessels. Additionally, 

organizations such as the Society of 

Automotive Engineers, Underwriters 

Laboratories, and the American Boat 

and Yacht Council (ABYC) also have 

safety standards that apply in this area. 

We also found that the four-stroke and 

two-stroke direct injection engine 

technologies which are likely to be used 

to meet the exhaust emission standards 

contemplated for OB/PWC engines are 

in widespread use in the vessel fleet 

today. These more sophisticated engine 

technologies are replacing the 

traditional two-stroke carbureted 

engines. The four-stroke and two-stroke 

direct injection engines meet applicable 

USCG and ABYC safety standards and 

future products will do so as well. The 

proposed emission standards must be 

complementary to existing safety 

standards and our analysis indicates 

that this will be the case. There are no 

known safety issues with the advanced 

technologies compared with two-stroke 

carbureted engines. The newertechnology engines arguably provide 

safety benefits due to improved engine 

reliability and range in-use. Based on 

the applicability of USCG and ABYC 

safety standards and the good in-use 

experience with advanced-technology 

engines in the current vessel fleet, we 

believe new emission standards would 

not create an incremental increase in the 

risk of fire or burn to the consumer. 

(4) Fuel Evaporative Emission Standards 

for Outboard and Personal Watercraft 

Engines and Vessels 

We reviewed the fuel line and fuel 

tank characteristics for marine vessels 

and evaluated control technology which 

could be used to reduce evaporative 

emissions from boats. With regard to 

fuel lines, fuel tanks, and diurnal 

controls, there are rigorous USCG, 

ABYC, United Laboratories, and Society 

of Automotive Engineers standards 

which manufacturers will continue to 

meet for fuel system components. All of 

these standards are designed to address 

the in-use performance of fuel systems, 

with the goal of eliminating fuel leaks. 

The low-permeation fuel lines and tanks 

needed to meet the Phase 3 

requirements would need to pass these 

standards and every indication is that 

they would pass.102

Furthermore, the EPA permeation 

certification requirements related to 

emissions durability will add an 

additional layer of assurance. Lowpermeation fuel lines are used safely 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28209 

103See section 428 of the Appropriations Act for 

2004. 

104 ‘‘Petition to Amend Rules Implementing Clean 

Air Act section 209(e),’’ American Road and 

Transportation Builders Association (ARTBA), July 

12, 2002. Also, EPA received an additional 

communication from ARTBA urging EPA to grant 

the petition after the decision of the U.S. Supreme 

Court in EMA v. SCAQMD, 541 U.S. 246 (2004). See 

‘‘ARTBA Petition,’’ L. Joseph, ARTBA, to D. 

Dickinson & R. Doyle, EPA, April 30, 2004. These 

documents are available in Docket EPA–HQ–OAR–

2004–0008. 

105 In 1994, EPA promulgated an interpretive rule 

at Appendix A to subpart A of 40 CFR part 89. The 

appendix provides that state restrictions on the use 

and operation of nonroad engines are not 

preempted under section 209. 

today in many marine vessels. Lowpermeation fuel tanks and diurnal 

emission controls have been 

demonstrated in various applications for 

many years without an increase in 

safety risk. Furthermore, a properly 

designed fuel system with fuel tank and 

fuel line permeation controls and 

diurnal emission controls would reduce 

the fuel vapor in the boat, thereby 

reducing the opportunities for fuel 

related fires. In addition, using 

improved low-permeation materials 

coupled with designs meeting USCG 

and ABYC requirements should reduce 

the risk of fuel leaks into the vessel. We 

believe the application of emission 

control technologies on marine engines 

and vessels for meeting the proposed 

fuel evaporative emission standards 

would not lead to an increase in 

incremental risk of fires or burns, and in 

many cases may incrementally decrease 

safety risk in certain situations. 

B. Noise 

As automotive technology 

demonstrates, achieving low emissions 

from spark-ignition engines can 

correspond with greatly reduced noise 

levels. Direct-injection two-stroke and 

four-stroke OB/PWC have been reported 

to be much quieter than traditional 

carbureted two-stroke engines. Catalysts 

in the exhaust act as mufflers which can 

reduce noise. Additionally, adding a 

properly designed catalyst to the 

existing muffler found on all Small SI 

engines can offer the opportunity to 

incrementally reduce noise. 

C. Energy 

(1) Exhaust Emission Standards 

Adopting new technologies for 

controlling fuel metering and air-fuel 

mixing, particularly the conversion of 

some carbureted engines to advanced 

fuel injection technologies, will lead to 

improvements in fuel consumption. 

This is especially true for OB/PWC 

engines where we expect the proposed 

standards to result in the replacement of 

old technology carbureted two-stroke 

engines with more fuel-efficient 

technologies such as two-stroke direct 

injection or four-stroke engines. 

Carbureted crankcase-scavenged twostroke engines are inefficient in that 25 

percent or more of the fuel entering the 

engine may leave the engine unburned. 

EPA estimates that conversion to more 

fuel efficient recreational marine 

engines would save 61 million gallons 

of gasoline per year in 2030. The 

conversion of some carbureted Small SI 

engines to fuel injection technologies is 

also expected to improve fuel economy. 

We estimate approximately 18 percent 

of the Class II engines will be converted 

to fuel injection and that this will result 

in a fuel savings of about 10 percent for 

each converted engine. This translates 

to a fuel savings of about 56 million 

gallons of gasoline in 2030 when all of 

the Class II engines used in the U.S. will 

comply with the proposed Phase 3 

standards. By contrast, the use of 

catalyst-based control systems on Small 

SI engines is not expected to change 

their fuel consumption characteristics. 

(2) Fuel Evaporative Emission Standards 

We anticipate that the proposed fuel 

evaporative emission standards will 

have a positive impact on energy. By 

capturing or preventing the loss of fuel 

due to evaporation, we estimate that the 

lifetime average fuel savings would be 

about 1.6 gallons for an average piece of 

Small SI equipment and 32 gallons for 

an average boat. This translates to a fuel 

savings of about 41 million gallons for 

Small SI equipment and 30 million 

gallons for Marine SI vessels in 2030 

when most of the affected equipment 

used in the U.S. would be expected to 

have evaporative emission controls. 

XI. Proposals Affecting Other Engine 

and Vehicle Categories 

We are proposing to make several 

regulatory changes that would affect 

engines, equipment, and vessels other 

than Small SI and Marine SI. These 

changes are described in the following 

sections. We request comment on all 

aspects of these proposed changes. 

A. State Preemption 

Section 209(e) of the Clean Air Act 

prohibits states and their political 

subdivisions from adopting or enforcing 

standards and other requirements 

relating to the control of emissions from 

nonroad engines or vehicles. Section 

209(e) authorizes EPA to waive this 

preemption for California for standards 

and other requirements for nonroad 

engines and vehicles, excluding new 

engines that are smaller than 175 

horsepower used in farm or 

construction equipment or vehicles and 

new locomotives or new engines used in 

locomotives. States other than California 

may adopt and enforce standards 

identical to California standards 

authorized by EPA. 

EPA promulgated regulations 

implementing section 209(e) on July 20, 

1994 (59 FR 36987). EPA subsequently 

promulgated revised regulations 

implementing section 209(e) on 

December 30, 1997 (62 FR 67733). See 

40 CFR part 85, subpart Q. We are 

proposing to create a new part 1074 that 

would describe the federal preemption 

of state and local emission 

requirements. This is being done as part 

of EPA’s ongoing effort to write its 

regulations in plain language format in 

subchapter U of title 40 of the CFR. The 

proposed regulations are based directly 

on the existing regulations in 40 CFR 

part 85, subpart Q. With the exception 

of the simplification of the language and 

specific changes described in this 

section, we are not changing the 

meaning of these regulations. 

Pursuant to section 428 of the 2004 

Consolidated Appropriations Act, we 

are proposing to add regulatory 

language to implement the legislative 

restriction on states other than 

California adopting, after September 1, 

2003, standards or other requirements 

applicable to spark-ignition engines 

smaller than 50 horsepower. We are also 

proposing to add, pursuant to that 

legislation, criteria for EPA’s 

consideration in authorizing California 

to adopt and enforce standards 

applicable to such engines.103

On July 12, 2002, the American Road 

and Transportation Builders Association 

(ARTBA) petitioned EPA to amend 

EPA’s rules implementing section 209(e) 

of the Act.104 In particular, ARTBA 

petitioned EPA to amend its regulations 

and interpretive rule regarding 

preemption of state and local 

requirements ‘‘that impose in-use and 

operational controls or fleet-wide 

purchase, sale or use standards on 

nonroad engines.’’105

ARTBA believes such controls should 

be preempted. As we are already 

revising the preemption provisions to a 

certain extent in this rule, we believe it 

is appropriate to respond to ARTBA’s 

petition in the context of this rule, while 

giving the public the ability to respond 

to provide comments regarding 

ARTBA’s petition. EPA is not proposing 

to adopt the explicit changes requested 

by ARTBA in its petition; however, EPA 

will continue to review the arguments 

raised by ARTBA’s petition, as well as 

all further arguments provided by 

ARTBA and other commenters during 

the period for notice and comment on 


sroberts on PROD1PC70 with PROPOSALS
28210 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

this issue. We will respond to the 

petition, and if appropriate, make any 

changes to the regulations to conform 

our response to ARTBA and other 

commenters in the final rule. We 

request comment from the public 

regarding issues related to ARTBA’s 

petition and how we should respond. 

B. Certification Fees 

Under our current certification 

program, manufacturers pay a fee to 

cover the costs associated with various 

certification and other compliance 

activities associated with an EPA issued 

certificate of conformity. These fees are 

based on the actual and/or projected 

cost to EPA per emission family. We are 

proposing to establish a new fees 

category for certification related to the 

proposed evaporative emission 

standards. Sections III and VI describe 

how these fees would apply to 

sterndrive/inboard marine engines and 

equipment and vessels subject to 

evaporative emission standards since 

these products are not currently 

required to pay certification fees. 

In addition, we are proposing to 

create a new part 1027 in title 40 that 

would incorporate the new and existing 

fee requirements under a single part in 

the regulations. This is being done as 

part of EPA’s ongoing effort to write its 

regulations in plain language format in 

subchapter U of title 40 of the CFR. The 

proposed regulations are based directly 

on the existing regulations in 40 CFR 

part 85, subpart Y. Aside from a variety 

of specific changes, moving this 

language to part 1027 is not intended to 

affect the substance of the existing fee 

provisions. We are proposing the 

following adjustments and clarifications 

to the existing regulations: 

• Establishing a new fees category for 

new evaporative emission standards. 

• Eliminating one of the paths for 

applying for a reduced fee. The existing 

regulations specify that applications 

covering fewer than six vehicles or 

engines, each with an estimated retail 

sales price below $75,000, shall receive 

a certificate for five vehicles or engines. 

Holders of these certificates are required 

to submit an annual model year reduced 

fee payment report adjusting the fees 

paid. We are proposing to eliminate this 

pathway and the associated report, as 

they are complex and have been rarely 

used. 

• Clarifying the obligation to make 

additional payment on a reduced fee 

certificate if the actual final sales price 

is more than the projected retail sales 

price for a reduced fee vehicle or 

engine. As before, the final fee payment 

must also reflect the actual number of 

vehicles. 

• Applying the calculated fee changes 

for later years, which are based on the 

Consumer Price Index and the total 

number of certificates, only after the 

change in the fee’s value since the last 

reported change has reached $50. The 

fee change for the ‘‘Other’’ category for 

calendar year 2005 to 2006 changed 

from $826 to $839 and for non-road 

compression-ignition engines from 

$1822 to $1831. Under the proposal, the 

fee would not change until such time as 

the fee increase would be $50.00 or 

greater. This might not occur after one 

year, but after two or more years the 

calculated increase in a fee based on the 

change in the Consumer Price Index 

might be more than $50.00. The same 

applies if the price goes both up and 

down. For example, if the fee published 

in EPA guidance for a category of engine 

was $1,000 in 2011 and the calculated 

fee for 2012 is $990 and in 2013 is 

$1040, the fee in 2013 would remain at 

$1,000 since the change from the 2011 

fee is only $40. This would minimize 

confusion related to changing fees 

where the calculated fee is very close to 

that already established for the previous 

year. It will also lessen paperwork and 

administrative burdens for 

manufacturers and EPA in making 

adjustments for small fees changes for 

applications that are completed around 

the change in a calendar year. The 

number of certificates may go up or 

down in any given year, while the 

Consumer Price Index would generally 

increase annually. As a result, this 

change would be revenue-neutral or 

would perhaps slightly decrease overall 

revenues. 

• Clarifying that all fee-related 

records need to be kept, not just those 

related to the ‘‘final reduced fee 

calculation and adjustment.’’

• Adding www.Pay.gov or other 

methods specified in guidance as 

acceptable alternative methods for 

payment and filing of fee forms. We 

anticipate several changes in 

administration of the fees program in 

coming months. It is likely that future 

payment of fees by electronic funds 

transfers (other than wire payments 

through the Federal Reserve) will be 

available only through online payments 

via www.Pay.gov. We are also receiving 

an increasing number of fee forms 

through e-mail submissions, which has 

proved to be a reliable and convenient 

method. We will be establishing a 

specific e-mail address for these 

submissions. 

• Establishing a single deadline for all 

types of refunds: total, partial for 

reduced fees, and partial for corrections. 

In all cases, refund requests must be 

received within six months of the end 

of the model year. A common type of 

request is due to an error in the fee 

amount paid as a result of changed fees 

for a new calendar year. We frequently 

apply these overpayments to other 

pending certification applications. This 

is less burdensome than applying for a 

simple refund, both for EPA and for 

most manufacturers. Applications to 

apply such refunds to other certification 

applications must also be received 

within six months of the end of the 

model year of the original engine family 

or test group. 

• Emphasizing with additional cross 

references that the same reduced fee 

provisions that apply to Independent 

Commercial Importers also apply to 

modification and test vehicle certificates 

under 40 CFR 85.1509 and 89.609: the 

number of vehicles covered is listed on 

the certificate, a revision of the 

certificate must be applied for and 

additional reduced fee payments made 

if additional vehicles are to be covered, 

and the certificate must be revised to 

show the new total number of vehicles 

to be covered. 

C. Amendments to General Compliance 

Provisions in 40 CFR Part 1068 

The provisions of part 1068 currently 

apply for nonroad diesel engines 

regulated under 40 CFR part 1039, Large 

SI engines regulated under 40 CFR part 

1048, and recreational vehicles 

regulated under 40 CFR part 1051. We 

are proposing to apply these provisions 

also for Small SI and Marine SI engines, 

equipment, and vessels. Any changes 

we make to part 1068 will apply equally 

for these other types of engines and 

vehicles. We therefore encourage 

comment from any affected companies 

for any of these proposed changes. 

The most significant change we are 

proposing for part 1068 is to clarify the 

language throughout to make necessary 

distinctions between engines, 

equipment, and fuel-system 

components—and particularly between 

equipment using certified engines and 

equipment that has been certified to 

meet equipment-based standards. This 

becomes necessary because the 

evaporative emission standards 

proposed in this document apply in 

some cases to equipment manufacturers 

and boat builders, while the exhaust 

emission standards apply only to engine 

manufacturers. Some provisions in part 

1068 apply to equipment manufacturers 

differently if they hold a certificate of 

conformity rather than merely installing 

certified engines (or certified fuelsystem components). The proposed 

changes in regulatory language are 

intended to help make those 

distinctions. See § 1068.2 for a 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28211 

description of the proposed terminology 

that we intend to use throughout part 

1068. 

We are aware that in some cases 

manufacturers produce nonroad engines 

by starting with a complete or partially 

complete engine from another 

manufacturer and modifying it as 

needed for the particular application. 

This is especially common for Marine SI 

and Large SI engines and equipment, 

but it may also occur for other types of 

nonroad engines and equipment. We are 

concerned that an interpretation of the 

prohibited acts in § 1068.101 would 

disallow this practice because the 

original engine manufacturer is arguably 

selling an engine that is not covered by 

a certificate of conformity even though 

emission standards apply. We are 

addressing this first by proposing to 

define ‘‘engine’’ for the purposes of the 

regulations (see § 1068.30). To do this, 

we differentiate between complete 

engines and partially complete engines, 

both of which need to be covered by a 

certificate. Partially complete engines 

would include any engine, consisting of 

the engine block plus at least one 

attached component such that the 

engine is not yet in its final, certified 

configuration. We are also proposing to 

allow for a path by which the original 

engine manufacturer would not need to 

certify partially complete engines or 

request approval for an exemption (see 

§ 1068.262). To do this though, the 

original engine manufacturer would 

need a written request from a secondary 

engine manufacturer who already holds 

a valid certificate of conformity for the 

engine based on its final configuration 

and application. These proposed 

provisions are intended generally to be 

clarifications of the existing regulatory 

provisions, particularly those in 

§ 1068.330 for imported engines. 

One situation involving partially 

complete engines involves the engine 

block as a replacement part where the 

original engine had major structural 

damage. In this case the engine 

manufacturer will typically sell an 

engine block with piston, crankshaft, 

and other internal components to allow 

the user to repower with many of the 

components from the original engine. 

Under the proposed definitions, these 

short blocks or three-quarter blocks 

would be new engines subject to 

emission standards. We believe it would 

be appropriate to address this situation 

in the regulations with the replacement 

engine provisions in § 1068.240, which 

provides a path for making new engines 

that are exempt from current emission 

standards. We request comment on 

applying these replacement-engine 

provisions to engine blocks as 

replacement parts. 

We are proposing to further clarify the 

requirement for engine manufacturers to 

sell engines in their certified 

configuration. The existing provisions 

in § 1068.260 describe how 

manufacturers may use delegated 

assembly to arrange for equipment 

manufacturers to separately source 

aftertreatment components for engines 

that depend on aftertreatment to meet 

emission standards. We are proposing to 

include language to clarify that we will 

consider an engine to be in its certified 

configuration in certain circumstances 

even if emission-related components are 

not assembled to the engine. This is 

intended to reflect common practice 

that has developed over the years. We 

are also proposing to clarify that engines 

may be shipped without radiators or 

other components that are unrelated to 

emission controls, and that we may 

approve requests to ship engines 

without emission-related components in 

some circumstances. This would 

generally be limited to equipmentrelated components such as vehiclespeed sensors. We could specify 

conditions that we determine are 

needed to ensure that shipping the 

engine without such components will 

not result in the engine being operated 

outside of its certified configuration. 

We adopted a definition of ‘‘nonroad 

engine’’ that continues to apply today 

(see § 1068.30). This definition 

distinguishes between portable or 

transportable engines that may be 

considered either nonroad or stationary, 

depending on the way they will be used. 

The distinction between nonroad and 

stationary engines is most often relevant 

for new engines in determining which 

emission standards apply. However, we 

have received numerous questions 

related to equipment whose usage has 

changed so that the original designation 

no longer applies. The definition does 

not address these situations. We are 

therefore proposing to adopt provisions 

that would apply when an engine 

previously used in a nonroad 

application is subsequently used in an 

application other than a nonroad 

application, or when an engine previous 

used in a stationary application is 

moved (see § 1068.31). 

In addition, we are proposing several 

amendments to part 1068 to clarify 

various items. These include: 

• § 1068.101(a)(1): Revising the 

prohibited act to specify that engines 

must be ‘‘covered by’’ a certificate rather 

than ‘‘having’’ a certificate. The revised 

language is more descriptive and 

consistent with the Clean Air Act. 

• § 1068.101(a)(1)(i): Clarifying that 

engines or equipment are considered to 

be uncertified if they are not in a 

configuration that is included in the 

applicable certificate of conformity. 

This would apply even if the product 

had an emission label stating that it 

complies with emission standards. 

• § 1068.101(a)(2): Clarifying the 

prohibition on recordkeeping to apply 

also to submission of records to the 

Agency. 

• § 1068.101(b)(2): Adding a 

prohibition against using engines in a 

way that renders emission controls 

inoperative, such as misfueling or 

failing to use additives that the 

manufacturer specifies as part of the 

engine’s certified configuration. This is 

more likely to apply for compressionignition engines than spark-ignition 

engines. 

• § 1068.101(b)(7): Clarifying the 

prohibitions related to warranty to 

require the submission of specified 

information in the application for 

certification; adding language to identify 

obligations related to recall; and 

preventing the manufacturer from 

communicating to users that warranty 

coverage is conditioned on using 

authorized parts or service facilities. 

These provisions are consistent with 

requirements that apply in other EPA 

programs. 

• § 1068.105(a): Revising the 

regulation to allow equipment 

manufacturers to use up normal 

inventories of previous model year 

engines only if it is a continuation of 

ongoing production with existing 

inventories. These provisions would not 

apply for an equipment manufacturer 

starting to produce a new equipment 

model. 

• § 1068.105: Eliminating paragraph 

(b) related to using highway certification 

for nonroad engines or equipment, since 

these provisions are spelled out 

specifically for each nonroad program 

where appropriate. 

• § 1068.105(b): Clarifying the 

requirement to follow emission-related 

installation instructions to include 

installation instructions from 

manufacturers that certify components 

to evaporative emission standards. 

• § 1068.120: Clarifying the 

rebuilding provisions to apply to 

maintenance related to evaporative 

emissions. 

• § 1068.240: Clarifying that the scope 

of the exemption for new replacement 

engines is limited to certain engines; 

also clarifying that the replacement 

engine provisions apply for replacing 

engines that meet alternate emission 

standards (such as those produced 


sroberts on PROD1PC70 with PROPOSALS
28212 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

under the Transition Program for 

Equipment Manufacturers). 

• § 1068.250: Revising the 

applicability of the hardship provisions 

to small businesses more broadly by 

referring to a term that is defined in 

§ 1068.30; this would include small 

businesses as identified in the 

standard-setting part, or any companies 

that meet the criteria established by the 

Small Business Administration. 

• § 1068.250: Clarifying the timing 

related to hardship approvals, and the 

ability to get extensions under 

appropriate circumstances. 

• § 1068.260: Revising the provisions 

related to delegated assembly as 

described in Section XI.F and clarifying 

that reduced auditing rates as specified 

in paragraph (a)(6) should be based on 

the number of equipment manufacturers 

involved rather than the number of 

engines; also specifying that 

manufacturers may itemize invoices to 

ensure that the Customs valuation for 

assessment of import duties is based on 

the price of the imported engine without 

the aftertreatment components that are 

being shipped separately. We request 

comment on adding a provision 

allowing for a separate invoice for 

aftertreatment components that are 

shipped separately. 

• § 1068.305: Clarifying that the 

requirement to submit importation 

forms applies to all engines, not just 

nonconforming engines; also adding a 

requirement to keep these records for 

five years. Both of these changes are 

consistent with the Customs regulations 

at 19 CFR 12.74. 

• Part 1068, Appendix I: Clarifying 

that the fuel system includes 

evaporative-related components and 

that the parts comprising the engine’s 

combustion chamber are emissionrelated components. 

Manufacturers have also expressed a 

concern that the engine rebuilding 

provisions in § 1068.120 do not clearly 

address the situation in which rebuilt 

engines are used to repower equipment 

where the engine being replaced meets 

alternate emission standards (such as 

those produced under the Transition 

Program for Equipment Manufacturers). 

These engines are not certified to the 

emission standards that would 

otherwise apply for the given model 

year, so there may be some confusion 

regarding the appropriate way of 

applying these regulatory requirements. 

In Section V.E.6 we describe several 

proposed special compliance provisions 

that are intended to improve our ability 

to oversee our emission control program 

for Small SI engines. For example, we 

are proposing that manufacturers take 

steps to ensure that they will be able to 

honor emission-related warranty claims, 

meet any compliance- or enforcementrelated obligations that may arise, and 

import new engines and equipment in a 

timely manner after we adopt new 

standards. We request comment on the 

appropriateness of adopting any or all of 

those provisions under part 1068 such 

that they would apply to all engines and 

equipment subject to part 1068. We also 

request comment on any adjustments to 

those provisions that would be 

appropriate for other categories of 

engines and equipment, whether we 

choose to adopt these provisions in this 

proposal or in a separate rulemaking. 

In addition, we request comment on 

early application of the provisions of 

part 1068 before the standards proposed 

in this notice take effect. For example, 

for any provisions not directly related to 

the emission standards, we could revise 

the regulations in part 90 and part 91 to 

reference the corresponding provisions 

in part 1068. We similarly request 

comment on making these changes for 

diesel engines regulated under part 89 

(land-based) and part 94 (marine). This 

would allow us to accelerate the 

transition to plain-language regulations 

and prevent confusion from maintaining 

multiple versions of similar provisions 

for several years. We would also be able 

to substantially decrease printing costs. 

The provisions most appropriately 

considered for early transition to part 

1068 include: (1) Selective enforcement 

audits, (2) exemptions, (3) importation 

provisions, (4) defect reporting and 

recall, (5) hearing procedures, and (6) 

treatment of confidential information. 

We are also seeking comment on 

revisions to 40 CFR 1068.101. Section 

203 of the Act (42 U.S.C. 7522) states 

that performing certain acts, ‘‘and 

causing thereof,’’ constitutes a 

prohibited act. We are interested in 

revising the regulations to specifically 

include this prohibition on the 

‘‘causing’’ of any of the prohibited acts 

listed in the statute and the regulations. 

Adding this clarification would help 

people who are subject to the 

regulations to more fully understand 

what actions are prohibited and may 

potentially subject them to enforcement 

proceedings under the Act. The 

revisions themselves would not be 

intended to add new enforcement 

authorities beyond what is already 

specified in the statute. 

If we consider it a violation to cause 

someone to commit a prohibited act, 

then persons causing any prohibited act 

would also be subject to the full 

administrative and judicial enforcement 

actions allowable under the Act and the 

regulations. The prohibition on 

‘‘causing’’ a prohibited act would apply 

to all persons and would not be limited 

to manufacturers or importers of 

regulated engines or equipment. 

If this provision is adopted, EPA 

would interpret the ‘‘causation’’ aspect 

of section 203 broadly. In assessing 

whether a person has caused a 

prohibited act, EPA would evaluate the 

totality of circumstances. For example, 

in certain circumstances EPA believes a 

retailer may be responsible for causing 

the importation of engines or equipment 

not covered by a valid certificate of 

conformity or otherwise in violation of 

our regulations, such as the labeling 

requirements. In addition to the 

prohibitions that apply to manufacturers 

and importers generally under section 

203, EPA will also consider many 

factors in assessing whether a 

manufacturer, importer, retailer, 

distributor or other person has caused a 

prohibited act, including, but not 

limited to, the following: (1) The 

contractual or otherwise established 

business relationship of those persons 

involved in producing and/or selling 

new engines and equipment; (2) the 

particular efforts or influence of the 

alleged violator contributing to, leading 

to or resulting in the prohibited act; and 

(3) the efforts, or lack thereof, of the 

person to prevent such a violation. EPA 

will evaluate the entire circumstances in 

determining whether a person caused 

another person to commit a prohibited 

act such as importing engines or 

equipment in violation of our 

regulations. 

D. Amendments Related to Large SI 

Engines (40 CFR Part 1048) 

Manufacturers of Large SI engines are 

encouraged to review the proposed 

changes described in Section XI.C 

related to 40 CFR part 1068. 

Some of the issues related to Marine 

SI engines described in Section III relate 

to Large SI engines. In particular, the 

uncertain availability of certain base 

engine models from General Motors for 

use in nonroad applications poses a 

challenge for efforts to certify the 

engines to the Large SI standards. In 

particular, the uncertain lead time 

associated with getting the new engines 

and the level of effort expected for 

certifying the existing engine models 

that are planned for obsolescence make 

it difficult for companies, especially 

small businesses, to go through the 

certification process and recover costs 

for repeated testing. Of greatest concern 

are requirements related to developing 

deterioration factors for these engines. 

The existing regulations allow for 

assigned deterioration factors for small 

businesses, but these apply only to 

companies with fewer than 200 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28213 

106 ‘‘C’’ refers to fuel C as specified in ASTM D 

412, E10 refers to 10 percent ethanol, and M15 

refers to 15 percent methanol. 

employees. We are therefore proposing 

to expand the definition of smallvolume engine manufacturer to also 

include companies with annual U.S. 

sales of no more than 2000 Large SI 

engines. This would align with the 

provisions already adopted by 

California ARB. Similarly, we are 

proposing a provision allowing for 

assigned deterioration factors for smallvolume engine families for Small SI 

engines (see Section V). A similar 

dynamic applies for Large SI engines. 

Any such allowance would apply to 

engine families with projected sales up 

to 300 or 500 units to reflect to different 

production volumes. We request 

comment on allowing assigned 

deterioration factors for small-volume 

engine families for Large SI engines, and 

on the appropriate threshold for this 

provision. 

We are also proposing to revise the 

provisions related to competition 

engines to align with the proposal for 

Small SI engines. Any Small SI engine 

that is produced under the competition 

exemption will very likely exceed 19 

kW. As a result, we believe it is 

appropriate to make these provisions 

identical to avoid confusion. 

Manufacturers have notified us that 

the transient test for constant-speed 

engines does not represent in-use 

operation in a way that significantly 

affects measured emission levels. This 

notification is required by 

§ 1065.10(c)(1). In particular, 

manufacturers have pointed out that the 

specified operation involves light 

engine loads such that combustion and 

exhaust temperatures do not rise enough 

to reach catalyst light-off temperatures. 

As a result, meeting the standard using 

the constant-speed transient test would 

require the use of significantly oversized 

catalysts, which would add significant 

costs without a commensurate 

improvement for in-use emission 

control. We faced a similar dilemma in 

the effort to adopt transient standards 

for nonroad diesel engines, concluding 

that the transient standards should not 

apply until we develop a more suitable 

duty cycle that more appropriately 

reflects in-use operation. We are 

proposing to take this same approach for 

Large SI engines, waiving the 

requirement constant speed engines to 

meet the transient standards until we 

are able to develop a more appropriate 

duty cycle. Manufacturers must 

continue to meet the standards for 

steady-state testing and the field-testing 

standards continue to apply. We are also 

proposing to clarify that manufacturers 

certifying constant-speed engines 

should describe their approach to 

controlling emissions during transient 

operation in their application for 

certification. 

Manufacturers have also pointed out 

that a multiplicative deterioration factor 

is problematic for engines with very low 

emission levels. While the HC+NOX

emissions may be as high as 2.7 g/kWhr, manufacturers are certifying some 

engine families with deteriorated 

emission levels below 0.1 g/kW-hr. 

These very low emission levels are well 

below the standard, but the 

measurement systems are challenged to 

produce a precisely repeatable emission 

level at that point. As a result, 

measurement variability and minor 

engine-to-engine variability can lead to 

small absolute differences in emission 

levels that become magnified by a 

deterioration factor that reflects the 

extremely small low-hour measurement. 

We are therefore proposing to specify 

that manufacturers use an additive 

deterioration factor if their low-hour 

emission levels are below 0.3 g/kW-hr. 

This change would accommodate the 

mathematical and analyzer effects of 

very low emission levels without 

changing the current practice for the 

majority of engines that are certified 

with emission levels closer to the 

standard. This change would remove 

the incentive for manufacturers to 

increase their engine’s emission levels 

to avoid an artificially large 

deterioration factor. The only exception 

would be for cases in which good 

engineering judgment dictates that a 

multiplicative deterioration factor 

would nevertheless be appropriate for 

engines with very low emissions. This 

may be the case if an engine’s 

deterioration can be attributed, even at 

very low emission levels, to 

proportionally decreased catalyst 

conversion of emissions from an aged 

engine. It is important to note that Large 

SI engine manufacturers are subject to 

in-use testing to demonstrate that they 

meet emission standards throughout the 

useful life. Should such testing indicate 

that an additive deterioration factor 

does not appropriately reflect actual 

performance, we would require 

manufacturers to revise their 

deterioration factors appropriately, as 

required under the current regulations. 

If such discrepancies appear for 

multiple manufacturers, we would 

revise the regulation to again require 

multiplicative deterioration factors for 

all aftertreatment-based systems. We 

also request comment on a further 

refinement of the form of the 

deterioration factor to more closely 

reflect the degradation in catalyst 

conversion efficiency. For example, 

measuring engine-out emissions would 

allow for calculating catalyst conversion 

efficiency, such that changes in this 

parameter over an engine’s useful life 

could be factored into a calculation to 

characterize an engine’s actual rate of 

deterioration. 

Most Large SI engines are installed in 

equipment that has metal fuel tanks. 

This formed the basis of the regulatory 

approach to set evaporative emission 

standards and certification 

requirements. Manufacturers have 

raised questions about the appropriate 

steps to take for systems that rely on 

plastic fuel tanks. These tanks are able 

to meet standards, but questions have 

been raised about the engine 

manufacturer’s role in certifying a range 

of fuel tanks with their engines. We 

request comment on the extent to which 

the current regulatory requirements 

might limit the range of fuel tank 

designs. 

The current permeation standards for 

Large SI equipment references Category 

1 fuel lines as defined in the version of 

SAE J2260 that was issued in November, 

1996. In 2004, the Society of 

Automotive Engineers (SAE) updated 

SAE J2260. Manufacturers have asked 

whether we will approve fuel lines 

based on the updated procedures. The 

new procedures have two primary 

differences related to fuel line 

permeation. First, the test fuel was 

changed from CM15 to CE10.106 Second, 

the associated limits for the different 

categories of fuel line permeation were 

revised. Data presented in Chapter 5 of 

the Draft RIA suggest that permeation 

from low-permeation fuel line materials 

can be less than half on CE10 than on 

CM15. The permeation specification for 

Category 1 fuel line was revised by SAE 

from 0–25 g/m2/day to 3–10 g/m2/day. 

(A new Category 0 was added at 0–3 g/ 

m2/day.) Directionally, the new 

Category 1 permeation limits seem to 

account for the change in the test fuel. 

In addition, ethanol fuel blends are 

commonly used in-use while methanol 

fuel blends are less common. We 

request comment on updating the 

regulations for Large SI equipment to 

reference the Category 1 fuel line 

specifications in the updated version of 

SAE J2260 (revised November 2004). We 

also request comment on whether this 

new specification would affect the 

stringency of the standard or the choice 

of fuel line constructions for this 

equipment. 

We are also proposing several 

technical amendments to part 1048. 

Many of these simply correct 


sroberts on PROD1PC70 with PROPOSALS
28214 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

typographical errors or add references to 

the proposed regulatory cites in part 

1054. Several changes are intended 

merely to align regulatory language with 

that of other programs, including those 

that would be subject to the standards 

proposed in this notice. In addition, we 

are proposing the following changes: 

• § 1048.5: Clarifying that locomotive 

propulsion engines are not subject to 

Large SI emission standards, even if 

they use spark-ignition engines. This is 

based on the separate provisions that 

apply to locomotives in Clean Air Act 

section 213. 

• § 1048.101: Clarifying 

manufacturer’s responsibility to meet 

emission standards for different types of 

testing, especially to differentiate 

between field-testing standards and 

duty-cycle standards. 

• § 1048.105: Clarifying that only the 

permeation standards of SAE J2260 

apply to fuel lines used with Large SI 

engines. 

• § 1048.105: Clarifying that the 

requirement to prevent fuel boiling is 

affected by the pressure in the fuel tank. 

The regulation currently characterizes 

the boiling point of fuel only at 

atmospheric pressure. Pressurizing the 

fuel tank increases the boiling point of 

the fuel. 

• § 1048.105: Reorganizing the 

regulatory provisions to align with the 

new language in 40 CFR part 1060. This 

is not intended to change any of the 

applicable requirements. 

• § 1048.110: Clarifying that 

‘‘malfunctions’’ relate to engines failing 

to maintain emission control and not to 

diagnostic systems that fail to report 

signals; and clarifying that the 

malfunction indicator light needs to stay 

illuminated for malfunctions or for 

system errors. 

• § 1048.120: Clarifying that the 

emission-related warranty covers only 

those components from 40 CFR part 

1068, Appendix I, whose failure will 

increase emissions. 

• § 1048.125: Clarifying the 

provisions related to noncritical 

emission-related maintenance. 

• § 1048.135: Revising the engine 

labeling requirements to allow omission 

of the manufacturing date only if the 

date is stamped or engraved on the 

engine, rather than allowing 

manufacturers to keep records of engine 

build dates. This is important for 

verifying that engines comply with 

standards based on their build date. 

• § 1048.205: Removing detailed 

specifications for describing auxiliary 

emission control devices in the 

application for certification. This 

responds to the concern expressed by 

manufacturers that the existing, very 

prescriptive approach requires much 

more information than is needed to 

adequately describe emission control 

systems. We are proposing to leave in 

place a broad requirement to describe 

emission control systems and 

parameters in sufficient detail to allow 

EPA to confirm that no defeat devices 

are employed. Manufacturers should be 

motivated to include substantial 

information to make such 

determinations in the certification 

process, rather than being subject to this 

type of investigation for emission 

control approaches that are found to be 

outside of the scope of the application 

for certification. 

• § 1048.205: Adding requirement to 

align projected sales volumes with 

actual sales from previous years. This 

does not imply additional reporting or 

recordkeeping requirements. It is 

intended simply to avoid situations 

where manufacturers intentionally misstate their projected sales volume to 

gain some advantage under the 

regulations. 

• § 1048.205: Specifying that 

manufacturers must submit modal 

emission results rather than just 

submitting a weighted average. Since 

this information is already part of the 

demonstration related to the fieldtesting standards, this should already be 

common practice. 

• § 1048.220: Clarifying that if 

manufacturers change their 

maintenance instructions after starting 

production for an engine family, they 

may not disqualify engines for in-use 

testing or warranty claims based on the 

fact that operators did not follow the 

revised maintenance instructions. 

• § 1048.225: Clarifying the 

terminology to refer to ‘‘new or 

modified engine configurations’’ rather 

than ‘‘new or modified nonroad 

engines.’’ This is necessary to avoid 

using the term ‘‘new nonroad engine’’ in 

a way that differs from the definitions 

in § 1048.801. 

• § 1048.230: Clarifying that engine 

families relate fundamentally to 

emission certification and that we 

would expect manufacturers to suggest 

a tailored approach to specifying engine 

families under § 1048.230(d) to occur 

only in unusual circumstances. 

• 1048.240: Adding a requirement for 

design-based certification for the 

diurnal standards that fuel tanks need to 

use low-permeation materials. 

• 1048.245: Adding the provision to 

allow for component certification for 

plastic fuel tanks. The revised language 

clarifies the requirement related to 

allowing pressure relief for vacuum 

pressures and for controlling 

permeation rates from plastic fuel tanks. 

• § 1048.250: Adding a requirement 

for manufacturers to report their sales 

volumes for an engine family if they are 

using a provision that depends on 

production volumes. 

• § 1048.301: Clarifying that engine 

families with projected sales volumes 

below 150 units may have reduced 

testing rates for production-line testing. 

This level of production does not allow 

for adequate testing to use the statistical 

techniques before exceeding specified 

maximum testing rates. 

• § 1048.305: Clarifying that (1) 

Tested engines should be built in a way 

that represents production engines; (2) 

the field-testing standards apply for any 

testing conducted (this may involve 

simply comparing modal results to the 

field-testing standards); and (3) we may 

review a decision to use emission 

results from a retested engine instead of 

the original results. 

• § 1048.310: Clarifying the 

relationship between quarterly testing 

and compliance with the annual testing 

requirements. 

• § 1048.315: Correcting the equation 

for the CumSum statistic to prevent 

negative values. 

• § 1048.410: Clarifying that repeat 

tests with an in-use test engine are 

acceptable, as long as the same number 

of repeat tests are performed for all 

engines. 

• § 1048.415: Clarifying that the 

provisions related to defect reporting in 

40 CFR 1068.501 apply for in-use 

testing. 

• § 1048.501: Removing specified 

mapping procedures, since these are 

addressed in 40 CFR part 1065. 

• § 1048.505: Removing redundant 

text and removing sampling times 

specified in Table 1, since these are 

addressed in § 1048.505(a)(1). 

• § 1048.505: Correcting the mode 

sequence listed in the table for the 

ramped-modal testing. 

• § 1048.505: Clarifying that cycle 

statistics for discrete-mode testing must 

be calculated separately for each mode. 

• §§ 1048.605 and 1048.610: 

Requiring some demonstration that the 

sales restrictions that apply for these 

sections are met, and clarifying the 

provisions related to emission credits 

for vehicles that generate or use 

emission credits under 40 CFR part 86. 

• § 1048.801: Revising several 

definitions to align with updated 

definitions adopted (or proposed) for 

other programs. 

We request comment on changing 

§ 1048.220 to prevent manufacturers 

from distributing revised emissionrelated maintenance instructions until 

we have approved them. We are taking 

this approach for Small SI and Marine 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28215 

SI engines in this proposal (see 

§§ 1045.220 and 1054.220) because we 

believe it would be inappropriate for 

manufacturers to specify increased or 

decreased emission-related maintenance 

without EPA approval of those changes. 

The same concern applies equally to all 

nonroad spark-ignition engines and 

vehicles, so we would expect to apply 

the same policy to all these engines. 

For Small SI and Marine SI engines 

we are proposing to require 

manufacturers of imported engines to 

include basic information in the 

application for certification, including 

identification of associated importers, 

specific ports intended for importation, 

and testing facilities where testing could 

be done in the United States. We request 

comment on extending these provisions 

to Large SI engines. See § 1054.205. 

E. Amendments Related To Recreational 

Vehicles (40 CFR Part 1051) 

Manufacturers of recreational vehicles 

are encouraged to review the proposed 

changes described in Section XI.C 

related to 40 CFR part 1068. 

We are proposing in this notice to 

establish a process by which 

manufacturers of fuel system 

components certify that their products 

meet emission standards. For 

recreational vehicles we adopted a 

program in which the exhaust and 

evaporative emission standards apply to 

the vehicle so we did not set up a 

process for certifying fuel-system 

components. We continue to believe 

that evaporative emission standards 

should apply to the vehicle. However, 

we are proposing to allow 

manufacturers of fuel-system 

components to opt in to this program by 

certifying their fuel tanks or fuel lines 

to the applicable standards. While this 

would be a voluntary step, any 

manufacturer opting into the program in 

this way would be subject to all the 

requirements that apply to certificate 

holders. While manufacturers of 

recreational vehicles would continue to 

be responsible for meeting standards 

and certifying their vehicles, it may be 

appropriate to simplify their compliance 

effort by allowing them to rely on the 

certification of the fuel-line 

manufacturer or fuel-tank manufacturer. 

We also request comment on 

specifying that vehicle manufacturers 

use the certification and testing 

procedures proposed in 40 CFR part 

1060 to meet the evaporative emission 

standards included in part 1051. This 

would not be intended to affect the 

stringency of current requirements. This 

would simply allow us to maintain 

consistent requirements across programs 

and avoid publishing redundant 

specifications. 

We are also proposing several 

technical amendments to part 1051. 

Many of these simply correct 

typographical errors or add references to 

the proposed regulatory cites in part 

1054. Several changes are intended 

merely to align regulatory language with 

that of other programs, including those 

that would be subject to the standards 

proposed in this notice. 

In addition, we are proposing the 

following changes: 

• § 1051.1: Revising the speed 

threshold for offroad utility vehicles to 

be subject to part 1051. Changing from 

‘‘25 miles per hour or higher’’ to ‘‘higher 

than 25 miles per hour’’ aligns this 

provision with the similar threshold for 

qualifying as a motor vehicle in 40 CFR 

85.1703. 

• § 1051.5: Clarifying the status of 

very small recreational vehicles to 

reflect the provisions in the current 

regulations in 40 CFR part 90 to treat 

such vehicles with a dry weight under 

20 kilograms as Small SI engines. 

• § 1051.25: Clarifying that 

manufacturers of recreational vehicles 

that use engines certified to meet 

exhaust emission standards must still 

certify the vehicle with respect to the 

evaporative emission standards. 

• § 1051.120: Clarifying that the 

emission-related warranty covers only 

those components from 40 CFR part 

1068, Appendix I, whose failure will 

increase emissions. 

• § 1051.125: Clarifying the 

provisions related to noncritical 

emission-related maintenance. 

• § 1051.135: Revising the labeling 

requirements to allow omission of the 

manufacturing date only if the date is 

stamped or engraved on the vehicle, 

rather than allowing manufacturers to 

keep records of vehicle build dates. This 

is important for verifying that vehicles 

comply with standards based on their 

build date. 

• § 1051.135: Adding a requirement 

to include family emission limits related 

to evaporative emissions to the emission 

control information label. Since this 

change may involve some time for 

manufacturers to comply, we are 

proposing to apply this starting with the 

2009 model year. 

• § 1051.137: Clarifying how the 

labeling requirements apply with 

respect to the averaging program and 

selected family emission limits. 

• § 1051.205: Removing detailed 

specifications for describing auxiliary 

emission control devices in the 

application for certification. This 

responds to the concern expressed by 

manufacturers that the existing, very 

prescriptive approach requires much 

more information that is needed to 

adequately describe emission control 

systems. We are proposing to leave in 

place a broad requirement to describe 

emission control systems and 

parameters in sufficient detail to allow 

EPA to confirm that no defeat devices 

are employed. Manufacturers should be 

motivated to include substantial 

information to make such 

determinations in the certification 

process, rather than being subject to this 

type of investigation for emission 

control approaches that are found to be 

outside of the scope of the application 

for certification. 

• § 1051.205: Requirements to align 

projected sales volumes with actual 

sales from previous years. This does not 

imply additional reporting or 

recordkeeping requirements. It is 

intended simply to avoid situations 

where manufacturers intentionally misstate their projected sales volume to 

gain some advantage under the 

regulations. 

• § 1051.220: Clarifying that if 

manufacturers change their 

maintenance instructions after starting 

production for an engine family, they 

may not disqualify vehicles for warranty 

claims based on the fact that operators 

did not follow the revised maintenance 

instructions. 

• § 1051.225: Clarifying the 

terminology to refer to ‘‘new or 

modified vehicle configurations’’ rather 

than ‘‘new or modified vehicles.’’ This 

is necessary to avoid confusion with the 

term ‘‘new vehicle’’ as it relates to 

introduction into commerce. 

• § 1051.225: Clarifying the 

provisions related to changing an engine 

family’s Family Emission Limit after the 

start of production. 

• § 1051.255: Adopting a different 

SAE standard for specifying lowpermeability materials to allow for 

design-based certification of metal fuel 

tanks with gaskets made of polymer 

materials. The existing language does 

not adequately characterize the 

necessary testing and material 

specifications. 

• § 1051.230: Clarifying that engine 

families relate fundamentally to 

emission certification and that we 

would expect manufacturers to suggest 

a tailored approach to specifying engine 

families under § 1051.230(e) to occur 

only in unusual circumstances. 

• § 1051.250: Adding a requirement 

for manufacturers to report their sales 

volumes for an engine family if they are 

using a provision that depends on 

production volumes. 

• § 1051.301: Clarifying that engine 

families with projected sales volumes 


sroberts on PROD1PC70 with PROPOSALS
28216 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

below 150 units may be exempted from 

production-line testing. This level of 

production does not allow for adequate 

testing to use the statistical techniques 

before exceeding specified maximum 

testing rates. 

• § 1051.305: Clarifying that tested 

vehicles should be built in a way that 

represents production vehicles. 

• § 1051.310: Clarifying the 

relationship between quarterly testing 

and compliance with the annual testing 

requirements; and clarifying the testing 

provisions that apply for engine families 

where the production period is 

substantially less than a full year. 

• § 1051.315: Correcting the equation 

for the CumSum statistic to prevent 

negative values. 

• § 1051.325: Clarifying the basis on 

which we would approve retroactive 

changes to the Family Emission Limit 

for an engine family that has failed 

under production-line testing. 

• § 1051.505: Clarifying that cycle 

statistics for discrete-mode testing must 

be calculated separately for each mode. 

• §§ 1051.605 and 1051.610: 

Requiring some demonstration that the 

sales restrictions that apply for these 

sections are met. 

• § 1051.650: Add a requirement to 

certify vehicles that are converted to run 

on a different fuel. We expect this is a 

rare occurrence, but one that we should 

make subject to certification 

requirements (see Section VII.B.3). 

• § 1051.701: Clarifying that 

manufacturers using emission credits to 

meet emission standards must base their 

credit calculations on their full product 

line-up, rather than considering only 

those engine families with Family 

Emission Limits above or below the 

emission standard. We are also 

clarifying that a single family may not 

generate emission credits for one 

pollutant while using emission credits 

for another pollutant, which is common 

to all our emission control programs. 

• § 1051.735: Adding a requirement 

to keep records related to banked 

emission credits for as long as a 

manufacturer intends for those credits 

to be valid. This is necessary for us to 

verify the appropriateness of credits 

used for demonstrating compliance with 

emission standards in later model years. 

• § 1051.801: Revising several 

definitions to align with updated 

definitions adopted (or proposed) for 

other programs. 

We request comment on changing 

§ 1051.220 to prevent manufacturers 

from distributing revised emissionrelated maintenance instructions until 

we have approved them. We are taking 

this approach for Small SI and Marine 

SI engines in this proposal (see 

§§ 1045.220 and 1054.220) because we 

believe it would be inappropriate for 

manufacturers to specify increased or 

decreased emission-related maintenance 

without EPA approval of those changes. 

The same concern applies equally to all 

nonroad spark-ignition engines and 

vehicles, so we would expect to apply 

the same policy to all these engines. 

For Small SI and Marine SI engines 

we are proposing to require 

manufacturers of imported engines to 

include basic information in the 

application for certification, including 

identification of associated importers, 

specific ports intended for importation, 

and testing facilities where testing could 

be done in the United States. We request 

comment on extending these provisions 

to recreational vehicles. See § 1054.205. 

F. Amendments Related to Heavy-Duty 

Highway Engines (40 CFR Part 85) 

We are proposing to make several 

adjustments to the provisions related to 

delegated assembly specified in 

§ 85.1713. These adjustments include: 

• Removing the provision related to 

auditing outside the United States since 

equipment manufactured in other 

countries would not be subject to these 

provisions 

• Clarifying that the exemption 

expires when the equipment 

manufacturer takes possession of the 

engine, but not before it reaches the 

point of final assembly 

• Clarifying the prohibition related to 

following installation instructions to 

ensure that engines will be in their 

certified configuration when installed in 

a piece of equipment. 

We believe all these amendments are 

straightforward adjustments that are 

appropriate for maintaining a program 

that allows for appropriate oversight 

and implementation. 

G. Amendments Related to Stationary 

Spark-Ignition Engines (40 CFR Part 60) 

On June 12, 2006 we proposed 

emission standards for stationary sparkignition engines (71 FR 33804). The 

June 2006 proposal specified that 

stationary spark-ignition engines at or 

below 19 kW would be subject to all the 

same emission standards and 

certification requirements that apply to 

Small SI engines. If we would include 

the new Phase 3 standards for Small SI 

engines in 40 CFR part 90, these 

requirements would apply 

automatically to those stationary 

engines. However, since the Phase 3 

standards will be in 40 CFR part 1054, 

as described in Section V, we are 

proposing to revise the regulatory 

language for stationary spark-ignition 

engines in 40 CFR part 60, subpart JJJJ, 

to directly reference the Phase 3 

standards part 1054. 

XII. Projected Impacts 

A. Emissions from Small Nonroad and 

Marine Spark-Ignition Engines 

As discussed in previous sections, 

this proposal will reduce exhaust 

emissions from specific sizes of 

nonhandheld Small SI and Marine SI 

engines. It will also reduce evaporative 

emissions from the fuel systems used on 

nonhandheld and handheld Small SI 

equipment and Marine SI vessels (for 

simplicity we collectively include the 

evaporative emission requirements from 

equipment or vessels when referring to 

Small SI or Marine SI engines in the 

remainder of this section). The proposed 

exhaust and evaporative emission 

standards will directly affect volatile 

organic hydrocarbon compounds (VOC), 

oxides of nitrogen (NOX), and to a lesser 

extent carbon monoxide (CO). Also, we 

anticipate that the emission control 

technology which is likely to be used to 

meet the exhaust emission standards 

will affect directly emitted particulate 

matter, most importantly particles with 

diameters of 2.5 micrometers or less 

(PM2.5). It will also incrementally reduce 

air toxic emissions. A detailed analysis 

of the effects of this proposal on 

emissions and emission inventories can 

be found in Chapter 3 of the Draft RIA. 

The contribution of exhaust and 

evaporative emissions from Small SI 

and Marine SI engines to total 50-state 

emission inventories is significant and 

will remain so into the future. Table 

XII–1 presents the nationwide inventory 

for these engines for both 2001 and 

2020. (The inventories cover all Small 

SI and Marine SI engines including the 

portion of Small SI engines regulated by 

the California ARB.) Table XII–1 shows 

that for the primary pollutants affected 

by this proposal, these engines 

contribute about 25 to 30 percent of the 

nationwide VOC emissions from all 

mobile sources. The nationwide 

contribution to the total mobile source 

NOX inventory is about 5 percent or 

less. Finally, for PM2.5, the contribution 

ranges from about 25 to 30 percent. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28217 

TABLE XII–1.—CONTRIBUTION OF SMALL NONROAD AND MARINE SI ENGINES TO NATIONAL (50-STATE) MOBILE SOURCE

EMISSION INVENTORIES

Pollutant 

2001 2020 

Small SI/marine SI inventory, tons Percent of 

mobile source 

inventory 

Small SI/marine SI inventory, tons Percent of 

mobile source 

inventory 

VOC ................................................................................................................. 2,239,056 28 1,351,739 27 

NOX .................................................................................................................. 159,051 1 201,789 4 

PM2.5 ................................................................................................................ 42,294 9 39,271 16 

CO .................................................................................................................... 20,867,436 24 16,373,518 31 

(1) VOC 

Table XII–2 shows the VOC emissions 

and emission reductions we expect both 

with and without the proposed 

standards for engines, equipment, and 

vessels affected by the proposal. In 

2001, Small SI and Marine SI emitted 

approximately 1,081,000 and 961,000 

tons of VOC, respectively. Without the 

proposed standards, these emissions 

will decrease because of the effect of the 

existing emission control requirements 

to about 1,005,000 and 490,000 tons by 

2040, respectively. With the proposed 

controls, this pollutant will be further 

reduced by 34 percent for Small SI 

engines and 74 percent for Marine SI 

engines by 2040. The VOC emission 

inventory trends over time for both 

categories of engines that are subject to 

the proposal are shown in Figure 

XII–1. 

TABLE XII–2.—NATIONAL (50-STATE) VOC EMISSIONS AND EMISSION REDUCTIONS FOR SMALL SI AND MARINE SI 

ENGINES

Year Category Without proposed rule 

With proposed 

rule Reduction Percent reduction 

2001 ............ Small Engine .......................................................................... 1,080,898 1,080,898 

Marine .................................................................................... 961,240 961,240 

Both ........................................................................................ 2,042,138 2,042,138 

2015 ............ Small Engine .......................................................................... 708,331 510,617 197,714 28 

Marine .................................................................................... 513,105 372,020 141,086 27 

Both ........................................................................................ 1,221,436 882,637 338,799 28 

2020 ............ Small Engine .......................................................................... 764,453 508,677 255,776 33 

Marine .................................................................................... 466,624 232,697 233,927 50 

Both ........................................................................................ 1,231,078 741,375 489,703 40 

2030 ............ Small Engine .......................................................................... 884,188 581,766 302,422 34 

Marine .................................................................................... 464,490 135,956 328,533 71 

Both ........................................................................................ 1,348,678 717,723 630,955 47 

2040 ............ Small Engine .......................................................................... 1,005,403 659,976 345,427 34 

Marine .................................................................................... 490,052 127,158 362,893 74 

Both ........................................................................................ 1,495,455 787,135 708,320 47 


sroberts on PROD1PC70 with PROPOSALS
28218 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(2) NOX

Table XII–3 shows the NOX emissions 

and emission reductions we expect both 

with and without the proposed 

standards for engines affected by the 

proposal. In 2001, Small SI and Marine 

SI emitted approximately 102,000 and 

41,500 tons of NOX, respectively. 

Without the proposed standards, these 

emissions will increase to about 

135,000, and 95,400 tons by 2040, 

respectively. With the proposed 

controls, this pollutant will be reduced 

by 47 percent for Small SI engines and 

51 percent for Marine SI engines by 

2040. The NOX emission inventory 

trends over time for both categories of 

engines that are subject to the proposal 

are shown in Figure XII–2. 

TABLE XII–3.—NATIONAL (50-STATE) NOX EMISSIONS AND EMISSION REDUCTIONS FOR SMALL SI AND MARINE SI 

ENGINES

Year Category Without proposed rule 

With proposed 

rule Reduction Percent reduction 

2001 ............ Small Engine .......................................................................... 101,928 101,928 

Marine .................................................................................... 41,514 41,514 

Both ........................................................................................ 143,442 143,442 

2015 ............ Small Engine .......................................................................... 94,432 58,117 36,315 38 

Marine .................................................................................... 73,583 59,024 14,558 20 

Both ........................................................................................ 168,015 117,141 50,874 30 

2020 ............ Small Engine .......................................................................... 102,310 55,241 47,069 46 

Marine .................................................................................... 80,655 55,656 24,999 31 

Both ........................................................................................ 182,965 110,896 72,069 39 

2030 ............ Small Engine .......................................................................... 118,615 62,778 55,837 47 

Marine .................................................................................... 89,225 46,859 42,366 47 

Both ........................................................................................ 207,840 109,637 98,203 47 

2040 ............ Small Engine .......................................................................... 135,136 71,361 63,775 47 

Marine .................................................................................... 95,440 46,874 48,567 51 

Both ........................................................................................ 230,577 118,235 112,342 49 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.001</GPH>
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28219 

(3) PM2.5 

Table XII–4 shows the PM2.5 

emissions and emission reductions we 

expect both with and without the 

proposed standards for engines affected 

by the proposal. In 2001, Small SI and 

Marine SI emitted 23,200 and 15,600 

tons of PM2.5, respectively. Without the 

proposed standards, the PM2.5 

emissions from Small SI engines will 

increase to 39,100 by 2040, while those 

from Marine SI will decrease to about 

6,000 tons in that year due to the effects 

of the existing emission control 

requirements for certain types of 

recreational marine engines, e.g, 

outboards. With the proposed controls, 

this pollutant will be reduced by 5 

percent for Small SI engines and a 

further 84 percent for Marine SI engines 

by 2040. The PM2.5 emission inventory 

trends over time for both categories of 

engines that are subject to the proposal 

are shown in Figure XII–3. 

TABLE XII–4.—NATIONAL (50-STATE) PM2.5 EMISSIONS AND EMISSION REDUCTIONS FOR SMALL SI AND MARINE SI 

ENGINES

Year Category Without proposed rule 

With proposed 

rule Reduction Percent reduction 

2001 ............ Small Engine .......................................................................... 23,163 23,163 

Marine .................................................................................... 15,625 15,625 

Both ........................................................................................ 38,789 38,789 

2015 ............ Small Engine .......................................................................... 27,747 26,647 1,100 4 

Marine .................................................................................... 6,823 4,666 2,157 32 

Both ........................................................................................ 34,570 31,313 3,256 9 

2020 ............ Small Engine .......................................................................... 30,009 28,574 1,435 5 

Marine .................................................................................... 5,908 2,448 3,461 59 

Both ........................................................................................ 35,917 31,022 4,896 14 

2030 ............ Small Engine .......................................................................... 34,535 32,849 1,686 5 

Marine .................................................................................... 5,719 1,107 4,613 81 

Both ........................................................................................ 40,255 33,956 6,299 16 

2040 ............ Small Engine .......................................................................... 39,079 37,153 1,926 5 

Marine .................................................................................... 6,016 985 5,031 84 

Both ........................................................................................ 45,095 38,138 6,957 15 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.002</GPH>
28220 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(4) CO 

Table XII.–5 shows the CO emissions 

and emission reductions we expect both 

with and without the proposed 

standards for engines affected by the 

proposal. In 2001, Small SI and Marine 

SI emitted 16,108,000 and 2,585,000 

tons of PM2.5, respectively. Without the 

proposed standards, these emissions 

will increase slightly for Small SI 

engines to 16,727,000 and decrease 

slightly for Marine SI engines to 

2,122,000 tons by 2040, respectively. 

With the proposed controls, this 

pollutant will be reduced by 16 percent 

for Small SI engines and a further 22 

percent for Marine SI engines by 2040. 

The CO emission inventory trends over 

time for both categories of engines that 

are subject to the proposal are shown in 

Figure XII–4. 

TABLE XII–5.—NATIONAL (50-STATE) CO EMISSIONS AND EMISSION REDUCTIONS FOR SMALL SI AND MARINE SI ENGINES

Year Category Without proposed rule 

With proposed 

rule Reduction Percent reduction 

2001 ............ Small Engine .......................................................................... 16,108,103 16,108,103 ........................ ........................

Marine .................................................................................... 2,584,786 2,584,786 ........................ ........................

Both ........................................................................................ 18,692,890 18,692,890 ........................ ........................

2015 ............ Small Engine .......................................................................... 11,797,078 10,317,051 1,480,027 13 

Marine .................................................................................... 2,031,684 1,883,241 148,443 7 

Both ........................................................................................ 13,828,762 12,200,291 1,628,471 12 

2020 ............ Small Engine .......................................................................... 12,712,775 10,782,258 1,930,518 15 

Marine .................................................................................... 1,968,663 1,718,956 249,707 13 

Both ........................................................................................ 14,681,439 12,501,214 2,180,225 15 

2030 ............ Small Engine .......................................................................... 14,700,521 12,411,661 2,288,860 16 

Marine .................................................................................... 2,009,248 1,607,678 401,570 20 

Both ........................................................................................ 16,709,768 14,019,339 2,690,429 16 

2040 ............ Small Engine .......................................................................... 16,726,708 14,113,517 2,613,191 16 

Marine .................................................................................... 2,122,336 1,665,392 456,943 22 

Both ........................................................................................ 18,849,044 15,778,910 3,070,134 16 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.003</GPH>
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28221 

B. Estimated Costs 

In assessing the economic impact of 

setting emission standards, we have 

made a best estimate of the costs 

associated with the technologies we 

anticipate manufacturers will use in 

meeting the standards. In making our 

estimates for the proposed rule, we have 

relied on our own technology 

assessment, which includes information 

developed by EPA’s National Vehicle 

and Fuel Emissions Laboratory 

(NVFEL). Estimated costs include 

variable costs (e.g. hardware and 

assembly time) and fixed costs (e.g. 

research and development, retooling, 

engine certification and test cell 

upgrades to 40 CFR 1065 requirements). 

We projected that manufacturers will 

recover the fixed costs over five years of 

production and used an amortization 

rate of 7 percent in our analysis. The 

analysis also considers total operating 

costs, including maintenance and fuel 

consumption. Cost estimates based on 

the projected technologies represent an 

expected change in the cost of engines 

as they begin to comply with new 

emission standards. All costs are 

presented in 2005 dollars. Full details of 

our cost analysis can be found in 

Chapter 6 of the Draft RIA. Estimated 

costs related to exhaust emissions were 

also subject to peer review, as described 

in a set of peer review reports that are 

available in the docket for this 

rulemaking. 

Cost estimates based on the current 

projected costs for our estimated 

technology packages represent an 

expected incremental cost of equipment 

in the near term. For the longer term we 

have identified factors that would cause 

cost impacts to decrease over time. First, 

as noted above, we project that 

manufacturers will spread their fixed 

costs over the first five years of 

production. After the fifth year of 

production, we project that the fixed 

costs would be retired and the unit costs 

could be reduced as a result. 

The cost analysis considers both longterm and short-term costs. We expect 

that over time, manufacturers will 

undergo a learning process that will 

lead to lower variable costs. For 

instance, the analysis incorporates the 

expectation that Small SI engine 

manufacturers will optimize the catalyst 

muffler offerings available and thereby 

streamline their production and reduce 

costs. The cost analysis generally 

incorporates this learning effect by 

decreasing estimated variable costs by 

20 percent starting in the sixth year of 

production. Long-term impacts on costs 

are expected to decrease as 

manufacturers fully amortize their fixed 

costs and learn to optimize their designs 

and production processes to meet the 

standards more efficiently. The learning 

curve has not been applied to Small SI 

EFI systems due to the fact that the 

technologies are currently well 

established on similar sized engines in 

other applications. 

We project average costs to comply 

with the proposed exhaust emission 

standards for Small SI engines and 

equipment to range from $9–$15 per 

Class I equipment to meet the Phase 3 

standards. We anticipate the 

manufacturers will meet the emission 

standard with several technologies 

including engine improvements and 

catalysts. For Class II equipment, we 

project average costs to range from $22–

$47 per equipment to meet the proposed 

emission standards. We anticipate the 

manufacturers of Class II engines would 

meet the proposed exhaust emission 

standards by engine improvements and 

adding catalysts and/or electronic fuel 

injection to their engines. 

For Small SI equipment, we have also 

estimated a per-unit cost for the 

proposed evaporative emission 

standards. The average short-term costs 

without fuel savings are projected to be 

$0.82 for handheld equipment, $3.16 for 

Class I equipment, and $6.90 for Class 

II equipment. These costs are based on 

fuel tank and fuel line permeation 

control, and for non-handheld 

equipment, running loss and diffusion 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.004</GPH>
28222 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

control. Because evaporative emissions 

are composed of otherwise usable fuel 

that is lost to the atmosphere, measures 

that reduce evaporative emissions will 

result in fuel savings. We estimate that 

the average fuel savings, due to 

permeation control, be about 1.2 gallons 

over the 5-year average operating 

lifetime. This translates to a discounted 

lifetime savings of more than $2 at an 

average fuel price of $1.81 per gallon. 

For marine engines, we estimated perengine costs for OB, PWC, and SD/I 

engines for meeting the proposed 

exhaust emission standards. The shortterm cost estimates without fuel savings 

are $280 for OB, $360 for PWC, and 

$360 for SD/I engines. For OB/PWC 

engines, we anticipate that 

manufacturers would meet the 

standards through the expanded 

production of existing low-emission 

technologies such as four-stroke and 

direct-injection two-stroke engines. For 

SD/I engines, we anticipate that 

manufacturers would use catalytic 

control to meet the proposed standards. 

For marine vessels, we have also 

estimated a per-unit cost for the 

proposed evaporative emission 

standards. The average short-term costs 

without fuel savings are projected to be 

$12 for boats with portable fuel tanks, 

$17 for PWC, and $74 for boats with 

installed fuel tanks. These costs are 

based on fuel tank and fuel line 

permeation control and diurnal 

emission control. For portable fuel 

tanks, diurnal emission control is based 

on an automatic sealing vent, for PWC 

we estimate that changes will not be 

necessary from current designs, and for 

other boats with installed fuel tanks, the 

estimated costs are based on the use of 

a passively-purged carbon canister. 

Because evaporative emissions are 

composed of otherwise usable fuel that 

is lost to the atmosphere, measures that 

reduce evaporative emissions will result 

in fuel savings. We estimate that the 

average fuel savings, due to permeation 

control, be about 31 gallons over the 15- 

year average operating lifetime. This 

translates to a discounted lifetime 

savings of about $36 at an average fuel 

price of $1.81 per gallon. 

C. Cost per Ton 

We have calculated the cost per ton of 

the Phase 3 standards contained in this 

proposal by estimating costs and 

emission benefits for these engines. We 

made our best estimates of the 

combination of technologies that engine 

manufacturers might use to meet the 

new standards, best estimates of 

resultant changes to equipment design, 

engine manufacturer compliance 

program costs, and fuel savings in order 

to assess the expected economic impact 

of the proposed Phase 3 emission 

standards for Small SI engines and 

Marine SI engines. Emission reduction 

benefits are taken from the results of the 

Inventory chapter of the RIA (Chapter 

3). 

A summary of the annualized costs to 

Small SI and Marine SI engine 

manufacturers is presented in Table 

XII–6. These annualized costs are over 

a 30-year period and presented both 

with a 3-percent and a 7-percent 

discount rate. The annualized fuel 

savings for Small SI engines are due to 

reduced fuel costs from the use of 

electronic fuel injection on Class II 

engines as well as fuel savings from 

evaporative measures on all Small SI 

engines. The annualized fuel savings for 

Marine SI engines are due to reduced 

fuel costs from the expected elimination 

of 2-stroke outboard motors from the 

new engine fleet as well as fuel savings 

from evaporative emission controls on 

all vessels. 

TABLE XII–6.—ESTIMATED ANNUALIZED COST TO MANUFACTURERS AND ANNUALIZED FUEL SAVINGS OVER 30 YEARS DUE

TO THE PHASE 3 SMALL SI AND MARINE SI ENGINE STANDARDS

[2005$, 3 and 7 percent discount rates] 

Engine category Emissions category 

Annualized cost to 

manufactuers (millions/yr) 

Annualized fuel savings 

(millions/yr) 

3% 7% 3% 7% 

Small SI Engines ...................................... Exhaust ..................................................... $281 $267 $71 $63 

Evaporative ............................................... 70 67 58 52 

Aggregate ................................................. 350 334 129 114 

Marine SI Engines .................................... Exhaust ..................................................... 134 141 76 67 

Evaporative ............................................... 26 26 29 25 

Aggregate ................................................. 160 167 105 92 

We have estimated the Small SI and 

Marine SI engine cost per ton of the 

Phase 3 HC+NOX standards over the 

typical lifetime of the equipment that 

are covered by this proposal. We have 

examined the cost per ton by performing 

a nationwide cost per ton analysis in 

which the net present value of the cost 

of compliance per year is divided by the 

net present value of the HC+NOX

benefits over 30 years. The resultant 

discounted cost per ton is presented in 

Table XII–7. The total (exhaust and 

evaporative) cost per ton, using a 7 

percent discount rate, with fuel savings 

is $950 for Small SI equipment and 

$350 for marine vessels. For the 

proposal as a whole, the cost per ton of 

HC+NOX reduction is $660. Reduced 

operating costs offset a portion of the 

increased cost of producing the cleaner 

Small SI and Marine SI engines. 

Reduced fuel consumption also offsets 

the costs of permeation control. Chapter 

7 of the RIA contains a more detailed 

discussion of the cost per ton analysis. 

TABLE XII–7.—ESTIMATED COST PER TON OF THE HC+NOX EMISSION STANDARDS

[2005$, 3 and 7 percent discount rates] 

Category Implementation dates 

Discounted cost per ton 

Without fuel 

savings 

(3%/7%) 

With fuel 

savings 

(3%/7%) 

Small SI Exhaust ......................................................................................................................... 2011–2012 $1700/$1860 $1270/$1420 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28223 

TABLE XII–7.—ESTIMATED COST PER TON OF THE HC+NOX EMISSION STANDARDS—Continued 

[2005$, 3 and 7 percent discount rates] 

Category Implementation dates 

Discounted cost per ton 

Without fuel 

savings 

(3%/7%) 

With fuel 

savings 

(3%/7%) 

Small SI Evaporative ................................................................................................................... 2008–2013 720/770 120/170 

Marine SI Exhaust ....................................................................................................................... 2009–2013 690/820 300/430 

Marine SI Evaporative ................................................................................................................. 2009–2012 530/630 (70)/35 

Aggregate .................................................................................................................................... 2008–2013 660/1120 226/660 

As is discussed above, we are also 

expecting some reduction in direct PM 

emissions and carbon monoxide. These 

reductions will come primarily as 

product of the technology being used to 

meet HC and NOX standards and not 

directly as a result of the 

implementation of specific technology 

to achieve these gains. Thus, we have 

elected to focus our cost per ton analysis 

on HC+NOX. 

One useful purpose of cost per ton 

analysis is to compare this program to 

other programs designed to achieve 

similar air quality objectives. Toward 

that end, we made a comparison 

between the HC+NOX cost per ton 

values presented in Table C–2 and the 

HC+NOX cost per ton of other recent 

mobile source programs. Table XII–8 

summarizes the HC+NOX cost per ton of 

several recent EPA actions for 

controlled emissions from mobile 

sources. While the analyses for each 

rule were not completely identical, it is 

clear that the Small SI and Marine SI 

values compare favorably with the other 

recent actions. 

TABLE XII–8.—COST PER TON OF PREVIOUSLY IMPLEMENTED HC+NOX MOBILE SOURCE PROGRAMS

[2005$, 7 percent discount with fuel savings] 

Program Discounted 

cost per ton 

2002 HH engines Phase 2 ................................................................................................................................................................ 840 

2001 NHH engines Phase 2 ............................................................................................................................................................. * neg 

1998 Marine SI engines .................................................................................................................................................................... 1900 

2004 Comm Marine CI ...................................................................................................................................................................... 200 

2007 Large SI exhaust ...................................................................................................................................................................... 80 

2006 ATV exhaust ............................................................................................................................................................................. 300 

2006 Off-highway motorcycle ............................................................................................................................................................ 290 

2006 Recreational marine CI ............................................................................................................................................................ 700 

2010 Snowmobile .............................................................................................................................................................................. 1430 

2006 <50cc highway motorcycle ....................................................................................................................................................... 1860 

2010 Class 3 highway motorcycle .................................................................................................................................................... 1650 

* Fuel savings outweigh engineering/hardware costs. 

D. Air Quality Impact 

Information on the air quality impacts 

of this proposed action can be found in 

Section II of this preamble. Section II 

includes health effect information on 

ozone, PM, CO and air toxics. It also 

includes modeled projections of future 

ozone concentrations with and without 

the controls detailed in this proposal. 

The proposed emission reductions 

would lead to reductions in ambient 

concentrations of ozone, PM, CO and air 

toxics. 

E. Benefits 

This section presents our analysis of 

the health and environmental benefits 

that can be expected to occur as a result 

of the proposed Small SI and Marine SI 

engine standards throughout the period 

from initial implementation through 

2030. Nationwide, the engines that are 

subject to the proposed emission 

standards in this rule are a significant 

source of mobile source air pollution. 

The proposed standards would reduce 

exposure to hydrocarbon, CO and NOX

emissions and help avoid a range of 

adverse health effects associated with 

ambient ozone and PM2.5 levels. In 

addition, the proposed standards would 

help reduce exposure to CO, air toxics, 

and PM2.5 for persons who operate or 

who work with or are otherwise active 

in close proximity to these engines. 

EPA typically quantifies PM- and 

ozone-related benefits in its regulatory 

impact analyses (RIAs) when possible. 

In the analysis of past air quality 

regulations, ozone-related benefits have 

included morbidity endpoints and 

welfare effects such as damage to 

commercial crops. EPA has not recently 

included a separate and additive 

mortality effect for ozone, independent 

of the effect associated with fine 

particulate matter. For a number of 

reasons, including (1) Advice from the 

Science Advisory Board (SAB) Health 

and Ecological Effects Subcommittee 

(HEES) that EPA consider the 

plausibility and viability of including an 

estimate of premature mortality 

associated with short-term ozone 

exposure in its benefits analyses and (2) 

conclusions regarding the scientific 

support for such relationships in EPA’s 

2006 Air Quality Criteria for Ozone and 

Related Photochemical Oxidants (the 

CD), EPA is in the process of 

determining how to appropriately 

characterize ozone-related mortality 

benefits within the context of benefits 

analyses for air quality regulations. As 

part of this process, we are seeking 

advice from the National Academy of 

Sciences (NAS) regarding how the 

ozone-mortality literature should be 

used to quantify the reduction in 

premature mortality due to diminished 

exposure to ozone, the amount of life 

expectancy to be added and the 


sroberts on PROD1PC70 with PROPOSALS
28224 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

107Pope, C.A., III, R.T. Burnett, M.J. Thun, E.E. 

Calle, D. Krewski, K. Ito, and G.D. Thurston. 2002. 

‘‘Lung Cancer, Cardiopulmonary Mortality, and 

Long-term Exposure to Fine Particulate Air 

Pollution.’’ Journal of the American Medical 

Association 287:1132–1141. 

108National Research Council (NRC). 2002. 

Estimating the Public Health Benefits of Proposed 

Air Pollution Regulations. Washington, DC: The 

National Academies Press. 

109Laden, F., J. Schwartz, F.E. Speizer, and D.W. 

Dockery. 2006. Reduction in Fine Particulate Air 

Pollution and Mortality. American Journal of 

Respiratory and Critical Care Medicine. 173: 667–

672. 

110U.S. Environmental Protection Agency. 

September 2000. Guidelines for Preparing Economic 

Analyses. EPA 240–R–00–003. 

111U.S. Office of Management and Budget (OMB). 

2003. Circular A–4 Guidance for Federal Agencies 

Preparing Regulatory Analyses, Available at: 

http://www/whitehouse.gov/omb/inforeg/ 

iraguide.html. Accessed December 15, 2005. 

112See 68 FR 28327, May 23, 2003. 

monetary value of this increased life 

expectancy in the context of health 

benefits analyses associated with 

regulatory assessments. In addition, the 

agency has sought advice on 

characterizing and communicating the 

uncertainty associated with each of 

these aspects in health benefit analyses. 

Since the NAS effort is not expected 

to conclude until 2008, the agency is 

currently deliberating how best to 

characterize ozone-related mortality 

benefits in its rulemaking analyses in 

the interim. For the analysis of the 

proposed standards, we do not quantify 

an ozone mortality benefit. So that we 

do not provide an incomplete picture of 

all of the benefits associated with 

reductions in emissions of ozone 

precursors, we have chosen not to 

include an estimate of total ozone 

benefits in the proposed RIA. By 

omitting ozone benefits in this proposal, 

we acknowledge that this analysis 

underestimates the benefits associated 

with the proposed standards. Our 

analysis, however, indicates that the 

rule’s monetized PM2.5 benefits alone 

substantially exceed our estimate of the 

costs. 

The PM2.5 benefits are scaled based on 

relative changes in PM2.5 precursor 

emissions (direct PM and NOX) between 

this rule and the proposed Clean Air 

Nonroad Diesel (CAND) rule. As 

explained in Section 8.2.1 of the RIA for 

this rule, the PM2.5 benefits scaling 

approach is limited to those studies, 

health impacts, and assumptions that 

were used in the proposed CAND 

analysis. As a result, PM-related 

premature mortality is based on the 

updated analysis of the American 

Cancer Society cohort (ACS; Pope et al., 

2002).107 However, it is important to 

note that since the CAND rule, EPA’s 

Office of Air and Radiation (OAR) has 

adopted a different format for its 

benefits analyses in which 

characterization of the uncertainty in 

the concentration-response function is 

integrated into the main benefits 

analysis. This new approach follows the 

recommendation of NRC’s 2002 report 

‘‘Estimating the Public Health Benefits 

of Proposed Air Pollution Regulations’’

to begin moving the assessment of 

uncertainties from its ancillary analyses 

into its main benefits presentation 

through the conduct of probabilistic 

analyses.108 Within this context, 

additional data sources are available, 

including a recent expert elicitation and 

updated analysis of the Six-Cities Study 

cohort (Laden et al., 2006).109 Please see 

the PM NAAQS RIA for an indication of 

the sensitivity of our results to use of 

alternative concentration-response 

functions. The PM2.5-related benefits 

associated with the proposed standards 

are presented in table XII–9. 

It should be noted that since the 

CAND rule, EPA’s Office of Air and 

Radiation (OAR) has adopted a different 

format for its benefits analysis in which 

characterization of uncertainty is 

integrated into the main benefits 

analysis. The benefits scaling approach 

used in the analysis of the proposed 

standards limits our ability to integrate 

uncertainty into the main analysis. For 

the benefits analysis of the final 

standards, we will adopt this integrated 

uncertainty approach. Please see the PM 

NAAQS RIA for an indication of the 

uncertainty present in the base estimate 

of benefits and the sensitivity of our 

results to the use of alternative 

concentration-response functions. 

TABLE XII–9.—ESTIMATED MONETIZED PM-RELATED HEALTH BENEFITS OF THE PROPOSED STANDARDS

Total Benefits a, b, c (billions 

2005$) 

2020 2030 

Using a 3% discount rate ........................................................................................................................................ $2.1 + B $3.4 + B 

Using a 7% discount rate ........................................................................................................................................ $1.9 + B $3.1 + B 

aBenefits include avoided cases of mortality, chronic illness, and other morbidity health endpoints. PM-related mortality benefits estimated 

using an assumed PM threshold at background levels (3 μg/m3). There is uncertainty about which assumed threshold to use and this may impact 

the magnitude of the total benefits estimate. For a more detailed discussion of this issue, please refer to Section 8.6.2.2 of the RIA. bFor notational purposes, unquantified benefits are indicated with a ‘‘B’’ to represent the sum of additional monetary benefits and disbenefits. 

A detailed listing of unquantified health and welfare effects is provided in Table XII–12. c Results reflect the use of two different discount rates: 3 and 7 percent, which are recommended by EPA’s Guidelines for Preparing Economic 

Analyses110 and OMB Circular A–4.111 Results are rounded to two significant digits for ease of presentation and computation. 

(1) Quantified Human Health and 

Environmental Effects of the Proposed 

Standards 

In this section we discuss the PM2.5

benefits of the proposed standards. To 

estimate PM2.5 benefits, we rely on a 

benefits transfer technique. The benefits 

transfer approach uses as its foundation 

the relationship between reductions in 

precursors to PM2.5 (NOX and direct 

PM2.5 emissions) and ambient PM2.5

concentrations modeled across the 

contiguous 48 states (and DC) for the 

Clean Air Nonroad Diesel (CAND) 

proposal.112 For a given future year, we 

first calculate the ratio between CAND 

direct PM2.5 emission reductions and 

direct PM2.5 emission reductions 

associated with the proposed control 

standards (proposed emission 

reductions/CAND emission reductions). 

We calculate a similar ratio for NOX. We 

then multiply these ratios by the percent 

that direct PM2.5 and NOX emissions, 

respectively, contribute towards 

population-weighted reductions in 

ambient PM2.5 due to the CAND 

standards. This calculation results in a 

‘‘benefits apportionment factor’’ for the 

relationship between direct PM 

emissions and ambient PM2.5 and NOX

emissions and ambient PM2.5, which are 

then applied to the incidence and 

monetized benefits from the CAND 

proposal. In this way, we apportion the 

results of the proposed CAND analysis 

to its underlying PM precursor emission 

reductions and scale the apportioned 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28225 

113Note that while the proposed regulations 

control hydrocarbons (VOCs), which contribute to 

PM formation, the benefits transfer scaling 

approach only scales benefits based on NOX, SO2, 

and direct PM emission reductions. PM benefits 

will likely be underestimated as a result, though we 

are unable to estimate the magnitude of the 

underestimation. Note also that PM-related 

mortality benefits estimated for the CAND analysis 

used an assumed PM threshold at background 

levels (3 μg/m3). There is uncertainty about which 

threshold to use and this may impact the magnitude 

of the total benefits estimate. For a more detailed 

discussion of this issue, please refer to Chapter 8.2 

of the RIA. 

114See: Mobile Source Air Toxics proposed rule 

(71 FR 15803, March 29, 2006); Clean Air Nonroad 

Diesel final rule (69 FR 38958, June 29, 2004); 

Nonroad Large Spark-Ignition Engines and 

Recreational Engines standards (67 FR 68241, 

November 8, 2002); Final Industrial Boilers and 

Process Heaters NESHAP (69 FR 55217, September 

13, 2004); Final Reciprocating Internal Combustion 

Engines NESHAP (69 FR 33473, June 15, 2004); 

Final Clean Air Visibility Rule (EPA–452/R–05–

004, June 15, 2005); Ozone Implementation Rule 

(documentation forthcoming). 

115The ‘‘primary estimate’’ refers to the estimate 

of benefits that reflects the suite of endpoints and 

assumptions that EPA believes yields the expected 

value of air quality improvements related to the 

proposed standards. The impact that alternative 

endpoints and assumptions have on the benefit 

estimates are explored in appendixes to the RIA. 

116Pope, C.A., III, R.T. Burnett, M.J. Thun, E.E. 

Calle, D. Krewski, K. Ito, and G.D. Thurston. 2002. 

‘‘Lung Cancer, Cardiopulmonary Mortality, and 

Long-term Exposure to Fine Particulate Air 

Pollution.’’ Journal of American Medical 

Association 287:1132–1141. 

117Woodruff, T.J., J. Grillo, and K.C. Schoendorf. 

1997. ‘‘The Relationship Between Selected Causes 

of Postneonatal Infant Mortality and Particulate 

Infant Mortality and Particulate Air Pollution in the 

United States.’’ Environmental Health Perspectives 

105(6):608–612. 

118U.S. Environmental Protection Agency, 2000. 

Guidelines for Preparing Economic Analyses. 

www.yosemite1.epa.gov/ee/epa/eed/hsf/pages/ 

Guideline.html. 

119Office of Management and Budget, The 

Executive Office of the President, 2003. Circular 

A–4. http://www.whitehouse.gov/omb/circulars. 

benefits to reflect differences in 

emission reductions between the two 

rules.113 This benefits transfer method is 

consistent with the approach used in 

other recent mobile and stationary 

source rules.114

Table XII–10 presents the primary 

estimates of reduced incidence of PMrelated health effects for the years 2020 

and 2030 for the proposed emission 

control strategy.115 In 2030, we estimate 

that PM-related annual benefits include 

approximately 450 fewer premature 

fatalities, 290 fewer cases of chronic 

bronchitis, 800 fewer non-fatal heart 

attacks, 460 fewer hospitalizations (for 

respiratory and cardiovascular disease 

combined), 310,000 days of restricted 

activity due to respiratory illness and 

approximately 52,000 fewer work-loss 

days. We also estimate substantial 

health improvements for children from 

reduced upper and lower respiratory 

illness, acute bronchitis, and asthma 

attacks. 

TABLE XII–10.—ESTIMATED ANNUAL REDUCTIONS IN INCIDENCE OF HEALTH EFFECTS a

Health effect 

2020 annual 

incidence 

reduction 

2030 annual 

incidence 

reduction 

PM-Related Endpoints: 

Premature Mortality b—

Adult, age 30 and over plus Infant, age < 1 year ............................................................................................. 290 450 

Chronic bronchitis (adult, age 26 and over) ..................................................................................................... 200 290 

Non-fatal myocardial infarction (adult, age 18 and over) ................................................................................. 490 800 

Hospital admissions—respiratory (all ages) c ................................................................................................... 160 270 

Hospital admissions—cardiovascular (adults, age > 18) d ............................................................................... 130 200 

Emergency room visits for asthma (age 18 years and younger) .................................................................... 210 310 

Acute bronchitis, (children, age 8–12) ............................................................................................................. 470 700 

Lower respiratory symptoms (children, age 7–14) ........................................................................................... 5,600 8,300 

Upper respiratory symptoms (asthmatic children, age 9–18) .......................................................................... 4,300 6,300 

Asthma exacerbation (asthmatic children, age 6–18) ...................................................................................... 7,000 10,000 

Work loss days ................................................................................................................................................. 38,000 52,000 

Minor restricted activity days (adults age 18–65) ............................................................................................ 220,000 310,000 

a Incidence is rounded to two significant digits. The PM estimates represent benefits from the proposed rule nationwide. The ozone estimates 

only represent benefits from the Eastern 37 states and DC, though the program is national in scope. bPM-related adult mortality based upon studies by Pope, et al 2002.116 PM-related infant mortality based upon studies by Woodruff, Grillo, and 

Schoendorf,1997.117

c Respiratory hospital admissions for PM include admissions for chronic obstructive pulmonary disease (COPD), pneumonia and asthma. d Cardiovascular hospital admissions for PM include total cardiovascular and subcategories for ischemic heart disease, dysrhythmias, and 

heart failure. 

(2) Monetized Benefits 

Table XII–11 presents the estimated 

monetary value of reductions in the 

incidence of health and welfare effects. 

Annual PM-related health benefits are 

approximately $3.4 billion in 2030, 

assuming a 3 percent discount rate (or 

$3.1 billion assuming a 7 percent 

discount rate). All monetized estimates 

are stated in 2005 dollars. These 

estimates account for growth in real 

gross domestic product (GDP) per capita 

between the present and the years 2020 

and 2030. As the table indicates, total 

benefits are driven primarily by the 

reduction in premature fatalities each 

year, which accounts for well over 90 

percent of total benefits. 

Table XII–11 indicates with a ‘‘B’’

those additional health and 

environmental benefits of the rule that 

we were unable to quantify or monetize. 

These effects are additive to the estimate 

of total benefits, and are related to the 

following sources: 

• There are many human health and 

welfare effects associated with ozone, 

PM, and toxic air pollutant reductions 

that remain unquantified because of 

current limitations in the methods or 

available data. A full appreciation of the 

overall economic consequences of the 

proposed standards requires 

consideration of all benefits and costs 

expected to result from the new 

standards, not just those benefits and 

costs which could be expressed here in 

dollar terms. A listing of the benefit 

categories that could not be quantified 

or monetized in our benefit estimates 

are provided in Table XII–12. 

• The PM air quality model only 

captures the benefits of air quality 

improvements in the 48 states and DC; 

PM benefits for Alaska and Hawaii are 

not reflected in the estimate of benefits. 


sroberts on PROD1PC70 with PROPOSALS
28226 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE XII–11.—ESTIMATED ANNUAL MONETARY VALUE OF REDUCTIONS IN INCIDENCE OF HEALTH AND WELFARE

EFFECTS (2005$) a, b

Health effect Pollutant 

2020 estimated value of 

reductions 

(millions) 

2030 estimated value of 

reductions 

(millions) 

PM-Related Premature mortality c, d

Adult >30 years ................................................................................................................. PM2.5.

3 percent discount rate .............................................................................................. ........................... $2,000 $3,100 

7 percent discount rate .............................................................................................. ........................... 1,800 2,800 

Child <1 year ..................................................................................................................... ........................... 5 6 

Chronic bronchitis (adults, 26 and over) .................................................................................. PM2.5 ................. 90 140 

Non-fatal acute myocardial infarctions 

3 percent discount rate ...................................................................................................... ........................... 50 77 

7 percent discount rate ...................................................................................................... PM2.5 ................. 48 75 

Hospital admissions for respiratory causes .............................................................................. PM2.5 ................. 2.9 5.0 

Hospital admissions for cardiovascular causes ....................................................................... PM2.5 ................. 3.1 4.7 

Emergency room visits for asthma ........................................................................................... PM2.5 ................. 0.07 0.11 

Acute bronchitis (children, age 8–12) ....................................................................................... PM2.5 ................. 0.20 0.30 

Lower respiratory symptoms (children, age 7–14) ................................................................... PM2.5 ................. 0.11 0.16 

Upper respiratory symptoms (asthma, age 9–11) .................................................................... PM2.5 ................. 0.13 0.19 

Asthma exacerbations .............................................................................................................. PM2.5 ................. 0.36 0.54 

Work loss days ......................................................................................................................... PM2.5 ................. 5.8 7.0 

Minor restricted activity days (MRADs) .................................................................................... PM2.5 ................. 14 19 

Monetized Total e

Base estimate: 

3 percent discount rate .............................................................................................. PM2.5 ................. 2,100 + B 3,400 + B 

7 percent discount rate .............................................................................................. ........................... 1,900 + B 3,100 + B 

a Incidence is rounded to two significant digits. The PM estimates represent benefits from the proposed rule nationwide. 

b Monetary benefits adjusted to account for growth in real GDP per capita between 1990 and the analysis year (2020 or 2030). 

cValuation of premature mortality based on long-term PM exposure assumes discounting over the SAB recommended 20 year segmented lag 

structure described in the Regulatory Impact Analysis for the Final Clean Air Interstate Rule (March 2005). Results show 3 percent and 7 percent 

discount rates consistent with EPA and OMB guidelines for preparing economic analyses (US EPA, 2000 and OMB, 2003).118, 119

dAdult mortality based upon the ACS cohort study (Pope et al., 2002). Infant mortality based upon studies by Woodruff, Grillo, and 

Schoendorf, 1997. eB represents the monetary value of health and welfare benefits not monetized. A detailed listing is provided in Table XII–12. 

TABLE XII–12.—UNQUANTIFIED AND NON-MONETIZED EFFECTS OF THE PROPOSED SMALL SPARK IGNITION/RECREATIONAL

MARINE ENGINE RULE

Pollutant/effects Effects not included in primary estimates—changes in: 

Ozone Health a ................................ Premature mortality: short-term exposures b. 

Hospital admissions: respiratory. 

Emergency room visits for asthma. 

Minor restricted-activity days. 

School loss days. 

Asthma attacks. 

Cardiovascular emergency room visits. 

Acute respiratory symptoms. 

Chronic respiratory damage. 

Premature aging of the lungs. 

Non-asthma respiratory emergency room visits. 

Increased exposure to UVb. 

Ozone Welfare ................................ Yields for 

—commercial forests. 

—some fruits and vegetables. 

—non-commercial crops. 

Damage to urban ornamental plants. 

Impacts on recreational demand from damaged forest aesthetics. 

Ecosystem functions. 

Increased exposure to UVb. 

PM Health c ..................................... Premature mortality—short term exposures d. 

Low birth weight. 

Pulmonary function. 

Chronic respiratory diseases other than chronic bronchitis. 

Non-asthma respiratory emergency room visits. 

Exposure to UVb (±)e. 

PM Welfare ..................................... Visibility in Class I areas. 

Residential and recreational visibility in non-Class I areas. 

Soiling and materials damage. 

Damage to ecosystem functions. 

Exposure to UVb (±) e. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28227 

TABLE XII–12.—UNQUANTIFIED AND NON-MONETIZED EFFECTS OF THE PROPOSED SMALL SPARK IGNITION/RECREATIONAL

MARINE ENGINE RULE—Continued 

Pollutant/effects Effects not included in primary estimates—changes in: 

Nitrogen and Sulfate Deposition 

Welfare.

Commercial forests due to acidic sulfate and nitrate deposition. 

Commercial freshwater fishing due to acidic deposition. 

Recreation in terrestrial ecosystems due to acidic deposition. 

Existence values for currently healthy ecosystems. 

Commercial fishing, agriculture, and forests due to nitrogen deposition. 

Recreation in estuarine ecosystems due to nitrogen deposition. 

Ecosystem functions. 

Passive fertilization. 

CO Health ....................................... Behavioral effects. 

HC Health f ...................................... Cancer (benzene, 1,3-butadiene, formaldehyde, acetaldehyde). 

Anemia (benzene). 

Disruption of production of blood components (benzene). 

Reduction in the number of blood platelets (benzene). 

Excessive bone marrow formation (benzene). 

Depression of lymphocyte counts (benzene). 

Reproductive and developmental effects (1,3-butadiene). 

Irritation of eyes and mucus membranes (formaldehyde). 

Respiratory irritation (formaldehyde). 

Asthma attacks in asthmatics (formaldehyde). 

Asthma-like symptoms in non-asthmatics (formaldehyde). 

Irritation of the eyes, skin, and respiratory tract (acetaldehyde). 

Upper respiratory tract irritation and congestion (acrolein). 

HC Welfare ..................................... Direct toxic effects to animals. 

Bioaccumulation in the food chain. 

Damage to ecosystem function. 

Odor. 

a In addition to primary economic endpoints, there are a number of biological responses that have been associated with ozone health effects 

including increased airway responsiveness to stimuli, inflammation in the lung, acute inflammation and respiratory cell damage, and increased 

susceptibility to respiratory infection. The public health impact of these biological responses may be partly represented by our quantified 

endpoints. b Recent analyses provide evidence that short-term ozone exposure is associated with increased premature mortality. As a result, EPA is considering how to incorporate ozone mortality benefits into its benefits analyses as a separate estimate of the number of premature deaths that 

would be avoided due to reductions in ozone levels. c In addition to primary economic endpoints, there are a number of biological responses that have been associated with PM health effects including morphological changes and altered host defense mechanisms. The public health impact of these biological responses may be partly represented by our quantified endpoints. dWhile some of the effects of short-term exposures are likely to be captured in the estimates, there may be premature mortality due to shortterm exposure to PM not captured in the cohort study upon which the primary analysis is based. e May result in benefits or disbenefits. 

f Many of the key hydrocarbons related to this rule are also hazardous air pollutants listed in the Clean Air Act. 

(3) What Are the Significant Limitations 

of the Benefits Analysis? 

Every benefit-cost analysis examining 

the potential effects of a change in 

environmental protection requirements 

is limited to some extent by data gaps, 

limitations in model capabilities (such 

as geographic coverage), and 

uncertainties in the underlying 

scientific and economic studies used to 

configure the benefit and cost models. 

Deficiencies in the scientific literature 

often result in the inability to estimate 

quantitative changes in health and 

environmental effects, such as potential 

increases in premature mortality 

associated with increased exposure to 

carbon monoxide. Deficiencies in the 

economics literature often result in the 

inability to assign economic values even 

to those health and environmental 

outcomes which can be quantified. 

These general uncertainties in the 

underlying scientific and economics 

literature, which can cause the 

valuations to be higher or lower, are 

discussed in detail in the RIA and its 

supporting references. Key uncertainties 

that have a bearing on the results of the 

benefit-cost analysis of the proposed 

standards include the following: 

• The exclusion of potentially 

significant and unquantified benefit 

categories (such as health, odor, and 

ecological benefits of reduction in 

ozone, air toxics, and PM); 

• Errors in measurement and 

projection for variables such as 

population growth; 

• Uncertainties in the estimation of 

future year emissions inventories and 

air quality, especially regarding the 

discrepancy between the modeled and 

proposed suite of standards and their 

impact on emissions inventories; 

• Uncertainties associated with the 

scaling of the PM results of the modeled 

benefits analysis to the proposed 

standards, especially regarding the 

assumption of similarity in geographic 

distribution between emissions and 

human populations and years of 

analysis; 

• Uncertainty in the estimated 

relationships of health and welfare 

effects to changes in pollutant 

concentrations including the shape of 

the concentration-response function, the 

size of the effect estimates, and the 

relative toxicity of the many 

components of the PM mixture; 

• Uncertainties in exposure 

estimation; and 

• Uncertainties associated with the 

effect of potential future actions to limit 

emissions. 

As Table XII–11 indicates, total 

benefits are driven primarily by the 

reduction in premature fatalities each 

year. Elaborating on the list of 

uncertainties above, some key 

assumptions underlying the primary 

estimate for the premature mortality 

category include the following: 


sroberts on PROD1PC70 with PROPOSALS
28228 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

120The scaling approach relies on the incidence 

and valuation estimates derived from the studies 

available at the time of the CAND analysis. 

Incidence estimates and monetized benefits derived 

from new information, including mortality derived 

from the full expert elicitation, are not available for 

scaling. Please refer to section 2 of this preamble 

and Chapter 12 of the RIA for more information 

about the benefits scaling approach. 

121Laden, F., J. Schwartz, F.E. Speizer, and D.W. 

Dockery. 2006. Reduction in Fine Particulate Air 

Pollution and Mortality. American Journal of 

Respiratory and Critical Care Medicine. 173: 667–

672. 

122 Dockery, D.W., C.A. Pope, X.P. Xu, J.D. 

Spengler, J.H. Ware, M.E. Fay, B.G. Ferris, and F.E. 

Speizer. 1993. ‘‘An Association between Air 

Pollution and Mortality in Six U.S. Cities.’’ New 

England Journal of Medicine 329(24):1753–1759. 

123See Chapter 4 of the Final Clean Air Interstate 

Rule RIA (http://www.epa.gov/cair) for a discussion 

of EPA’s ongoing efforts to address the NAS 

recommendations in its regulatory analyses. 

• Inhalation of fine particles is 

causally associated with premature 

death at concentrations near those 

experienced by most Americans on a 

daily basis. Although biological 

mechanisms for this effect have not yet 

been completely established, the weight 

of the available epidemiological, 

toxicological, and experimental 

evidence supports an assumption of 

causality. The impacts of including a 

probabilistic representation of causality 

were explored in the expert elicitationbased results of the recently published 

PM NAAQS RIA. Because the analysis 

of the proposed standards is constrained 

to the studies included in the CAND PM 

benefits scaling approach, we are unable 

to conduct the same analysis of expert 

elicitation-based mortality incidence for 

the proposed standards.120 However, we 

qualitatively describe the expert 

elicitation-based mortality results 

associated with the final PM NAAQS to 

provide an indication of the sensitivity 

of our PM-related premature mortality 

results to use of alternative 

concentration-response functions. We 

present this discussion in the RIA. 

• Since the publication of CAIR, a 

follow up to the Harvard six-city study 

on premature mortality was published 

(Laden et al., 2006 based on Dockery et 

al., 1993),121 122 which both confirmed 

the effect size from the first study and 

provided additional evidence that 

reductions in PM2.5 directly result in 

reductions in the risk of premature 

death. The impacts of including this 

study in the primary analysis were 

explored in the results of the recently 

published PM NAAQS RIA. Because the 

analysis of the proposed standards is 

constrained to the studies included in 

the CAND PM benefits scaling 

approach, we are unable to characterize 

PM-related mortality based on Laden et 

al. However, we discuss the 

implications of these results in the RIA 

for the proposed standards. 

• All fine particles, regardless of their 

chemical composition, are equally 

potent in causing premature mortality. 

This is an important assumption, 

because PM produced via transported 

precursors emitted from Small SI and 

Marine SI engines may differ 

significantly from PM precursors 

released from electric generating units 

and other industrial sources. However, 

no clear scientific grounds exist for 

supporting differential effects estimates 

by particle type. 

• The concentration-response 

function for fine particles is 

approximately linear within the range of 

ambient concentrations under 

consideration. Thus, the estimates 

include health benefits from reducing 

fine particles in areas with varied 

concentrations of PM, including both 

regions that may be in attainment with 

PM2.5 standards and those that are at 

risk of not meeting the standards. 

Taking into account these 

uncertainties, we believe this benefitcost analysis provides a conservative 

estimate of the expected economic 

benefits of the proposed standards in 

future years because of the exclusion of 

potentially significant benefit categories. 

Acknowledging benefits omissions and 

uncertainties, we present a best estimate 

of the total benefits based on our 

interpretation of the best available 

scientific literature and methods. 

Furthermore, our analysis reflects many 

methodological improvements that were 

incorporated into the analysis of the 

final Clean Air Interstate Rule (CAIR), 

including a revised value of a statistical 

life, a revised baseline rate of future 

mortality, and a revised mortality lag 

assumption. Details of these 

improvements can be found in the RIA 

for this rule and in the final CAIR rule 

RIA.123 Once again, however, it should 

be noted that since the CAIR rule, EPA’s 

Office of Air and Radiation (OAR) has 

adopted a different format for its 

benefits analysis in which 

characterization of uncertainty is 

integrated into the main benefits 

analysis. Please see the PM NAAQS RIA 

for an indication of the uncertainty 

present in the base estimate of benefits 

and the sensitivity of our results to the 

use of alternative concentrationresponse functions. 

(4) How Do the Benefits Compare to the 

Costs of the Proposed Standards? 

The proposed rule establishes 

separate standards that reduce the 

evaporative and exhaust emissions from 

Small SI and Marine SI engines. A full 

appreciation of the overall economic 

consequences of these provisions 

requires consideration of the benefits 

and costs expected to result from each 

standard. Due to limitations in data 

availability and analytical methods, 

however, we are only able to present the 

benefits of the entire proposed rule in 

the aggregate for both PM2.5 and ozone. 

There are also a number of health and 

environmental effects associated with 

the proposed standards that we were 

unable to quantify or monetize (see 

Table XII–12). 

Table XII–13 contains the estimates of 

monetized PM2.5-related benefits of the 

proposed standards and estimated social 

welfare costs for each of the proposed 

control programs. The annual social 

welfare costs of all provisions of this 

proposed rule are described more fully 

in the next section. The results in Table 

XII–13 suggest that the 2020 and 2030 

monetized benefits of the proposed 

standards are much greater than the 

expected social welfare costs. 

Specifically, the annual benefits of the 

program would be approximately $2.1 + 

B billion annually in 2020 using a three 

percent discount rate (or $1.9 + B billion 

using a seven percent discount rate), 

compared to estimated social welfare 

costs of approximately $252 million in 

that same year. The net benefits are 

expected to increase to $3.4 + B billion 

annually in 2030 using a three percent 

discount rate (or $3.1 + B billion using 

a seven percent discount rate), even as 

the social welfare costs of that program 

fall to $241 million. 

In Table XII–13, we present the costs 

and PM-related benefits related to each 

of the two broad engine classes 

regulated by the proposed standards: 

Small SI and Marine SI engines. Table 

XII–13 also presents the costs and PMrelated benefits related to the specific 

engine classes regulated by the 

proposed standards: Small SI—Class I, 

Class II, and Handheld (HH); Marine 

SI—Sterndrive/Inboard (SD/I), and 

Outboard/Personal Water Craft (OB/ 

PWC). Using the same PM scaling 

approach described in Chapter 8.2 of the 

RIA, we are able to split out the 

estimated PM benefits related to the 

different Small SI and Marine SI engine 

classes. One can see that in all cases, the 

PM benefits accrued by the engine 

classes are greater than the costs, even 

when fuel savings is not factored into 

the cost estimate. The benefit-to-cost 

ratio would be even greater if we 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28229 

124U.S. Environmental Protection Agency, 2000. 

Guidelines for Preparing Economic Analyses. 

http:// www.yosemite1.epa.gov/ee/epa/eed/hsf/

pages/Guideline.html. 

125Office of Management and Budget, The 

Executive Office of the President, 2003. Circular 

A–4. http://www.whitehouse.gov/omb/circulars. 

estimated the ozone benefits related to 

the proposed standards. 

TABLE XII–13.—SUMMARY OF ANNUAL BENEFITS, COSTS, AND NET BENEFITS OF THE PROPOSED SMALL SI AND MARINE

SI ENGINE RULE a

Description 

2020 

(Millions of 

2005 dollars) 

2030 

(Millions of 

2005 dollars) 

Estimated Social Welfare Costs b c

Small SI .................................................................................................................................................... $351 $404 

Class I ............................................................................................................................................... 145 167 

Class II .............................................................................................................................................. 199 229 

HH d ................................................................................................................................................... 7 8 

Marine SI .................................................................................................................................................. 154 164 

SD/I .................................................................................................................................................... 41 44 

OB/PWC ............................................................................................................................................ 113 120 

Total ........................................................................................................................................... 505 569 

Fuel Savings .............................................................................................................................. (253 ) (327 ) 

Total Social Welfare Costs .............................................................................................................................. 252 241 

Estimated Benefits e f

PM-Only Small SI Benefits 

3 percent discount rate ..................................................................................................................... 861 1,280 

7 percent discount rate ..................................................................................................................... 782 1,160 

Class I 

3 percent discount rate ....................................................................................................... 478 647 

7 percent discount rate ....................................................................................................... 434 587 

Class II 

3 percent discount rate ....................................................................................................... 383 627 

7 percent discount rate ....................................................................................................... 348 570 

PM-Only Marine SI Benefits 

3 percent discount rate ..................................................................................................................... 1,280 2,110 

7 percent discount rate ..................................................................................................................... 1,160 1,190 

SD/I 

3 percent discount rate ..................................................................................................................... 209 487 

7 percent discount rate ..................................................................................................................... 190 442 

OB/PWC 

3 percent discount rate ..................................................................................................................... 1,070 1,620 

7 percent discount rate ..................................................................................................................... 969 1,470 

Total PM-Only Benefits g

3 percent discount rate ..................................................................................................................... 2,140+B 3,380+B 

7 percent discount rate ..................................................................................................................... 1,940+B 3,070+B 

Annual Net PM-Only Benefits (Total Benefits-Total Costs) g

3 percent discount rate ..................................................................................................................... 1,890+B 3,140+B 

7 percent discount rate ..................................................................................................................... 1,690+B 2,830+B 

aAll estimates are rounded to three significant digits and represent annualized benefits and costs anticipated for the years 2020 and 2030. Columnar totals may not sum due to rounding. b Note that costs are the annual total costs of reducing all pollutants associated with each provision of the proposed control package, while the 

benefits reflect the value of reductions in PM2.5 only. cTo calculate annual fixed costs, we use a 7 percent average before-tax rate of return on private capital (see Chapter 9). We do not present 

annual costs using an alternative rate of return. In Chapter 9, however, we use both a 3 percent and 7 percent social discount rate to calculate 

the net present value of total social costs consistent with EPA and OMB guidelines for preparing economic analyses (US EPA, 2000 and OMB, 

2003).124 125

d Handheld emission reductions associated with the proposed standards, volatile organic hydrocarbons, are not accounted for in the PM benefits scaling approach. The PM benefit scaling approach is based upon changes in NOX and direct PM2.5 (see section 8.2 of the RIA). We therefore do not estimate any PM-related benefits associated with emission reductions in the handheld engine class. ePM-related benefits in this table are nationwide. 

fValuation of premature mortality based on long-term PM exposure assumes discounting over the SAB recommended 20-year segmented lag 

structure described in section 8.3 of the RIA. Valuation of non-fatal myocardial infarctions is based on the cost-of-illness over a 5-year period 

after the incident. The valuation of both endpoints therefore requires the use of a discount rate. We present the PM-related benefits results using 

a 3 percent and 7 percent social discount rate consistent with EPA and OMB guidelines for preparing economic analyses (US EPA, 2000 and 

OMB, 2003). g Not all possible benefits or disbenefits are quantified and monetized in this analysis. B is the sum of all unquantified benefits and disbenefits. 

Potential benefit categories that have not been quantified and monetized are listed in Table XII–12. 

F. Economic Impact Analysis 

We prepared an Economic Impact 

Analysis (EIA) to estimate the economic 

impacts of the proposed emission 

control program on the Small SI and 

Marine SI engine and equipment 

markets. In this section we briefly 

describe the Economic Impact Model 

(EIM) we developed to estimate the 

market-level changes in price and 

outputs for affected markets, the social 

costs of the program, and the expected 

distribution of those costs across 

affected stakeholders. We also present 

the results of our analysis. We request 

comment on all aspects of the analysis, 


sroberts on PROD1PC70 with PROPOSALS
28230 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

126All estimates presented in this section are in 

2005$. 127This analysis is based on an earlier version of 

the engineering compliance developed for this rule. 

The net present value of the engineering costs used 

in this analysis (without taking the fuel savings into 

account, at a 3 percent discount rate over the period 

of the analysis) is $10.0 billion, which is about $100 

million less than the net present value of the final 

estimated engineering costs, $10.1 billion. We do 

not expect that a difference of this magnitude 

would change the overall results of this economic 

impact analysis, in terms of market impacts and 

how the costs are expected to be shared among 

stakeholders. 

128EPA Guidelines for Preparing Economic 

Analyses, EPA 240-R–00–003, September 2000, p 

113. A copy of this document can be found at 

http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/ 

Guidelines.html. 

129The Outdoor Power Equipment Institute 

(OPEI) provides annual estimates of Small SI 

shipments (unit volumes) broken out into 

commercial and residential markets. For 2003 and 

2004, the commercial share for NHH products is 

estimated to be 3.3 percent and 2.8 percent, 

respectively; for all Small SI products is estimated 

to be 1.4 percent and 1.2 percent. Similarly, 

commercial uses of Marine SI vessels are limited. 

See the industry characterizations prepared for this 

proposal for more information (RTI, 2006). 

including the model and the model 

inputs. 

We estimate the net social costs of the 

proposed program to be about $241 

million in 2030.126, 127 This estimate 

reflects the estimated compliance costs 

associated with the Small SI and Marine 

SI engine standards and the expected 

fuel savings from improved evaporative 

controls. When the fuel savings are not 

taken into account, the results of the 

economic impact modeling suggest that 

the social costs of these programs are 

expected to be about $569 million in 

2030. Consumers of Small SI and 

Marine products are expected to bear 

about 75 percent of these costs. Small SI 

engine and equipment manufacturers 

are expected to bear 6 percent and 19 

percent, respectively. We estimate fuel 

savings of about $327 million in 2030, 

which will accrue to consumers. 

With regard to market-level impacts 

in 2030, the average price increase for 

Small SI engines is expected to be about 

9.1 percent ($17 per unit). The average 

price increase for Marine SI engines is 

expected to be about 1.7 percent ($195 

per unit). The largest average price 

increase for Small SI equipment is 

expected to be about 5.6 percent ($15 

per unit) for Class I equipment. The 

largest average price increase for Marine 

SI vessels is expected to be about 2.1 

percent ($178 per unit) for Personal 

Watercraft. 

(1) What is an Economic Impact 

Analysis? 

An Economic Impact Analysis (EIA) is 

prepared to inform decision makers 

about the potential economic 

consequences of a regulatory action. The 

analysis consists of estimating the social 

costs of a regulatory program and the 

distribution of these costs across 

stakeholders. These estimated social 

costs can then be compared with 

estimated social benefits (as presented 

in Section XII.E). As defined in EPA’s 

Guidelines for Preparing Economic 

Analyses, social costs are the value of 

the goods and services lost by society 

resulting from (a) The use of resources 

to comply with and implement a 

regulation and (b) reductions in 

output.128 In this analysis, social costs 

are explored in two steps. In the market 

analysis, we estimate how prices and 

quantities of goods affected by the 

proposed emission control program can 

be expected to change once the program 

goes into effect. In the economic welfare 

analysis, we look at the total social costs 

associated with the program and their 

distribution across stakeholders. 

(2) What Is the Economic Impact Model? 

The EIM is a behavioral model 

developed for this proposal to estimate 

price and quantity changes and total 

social costs associated with the 

emission controls under consideration. 

The EIM simulates how producers and 

consumers of affected products can be 

expected to respond to an increase in 

production costs as a result of the 

proposed emission control program. In 

this EIM, compliance costs are directly 

borne by producers of affected goods. 

Depending on the producers’ and 

consumers’ sensitivity to price changes, 

producers of affected products will try 

to pass some or all of the increased 

production costs on to the consumers of 

these goods through price increases. In 

response to the price increases, 

consumers will decrease their demand 

for the affected good. Producers will 

react to the decrease in quantity 

demanded by decreasing the quantity 

they produce; the market will react by 

setting a higher price for those fewer 

units. These interactions continue until 

a new market equilibrium quantity and 

price combination is achieved. The 

amount of the compliance costs that can 

be passed on to the consumers is 

ultimately limited by the price 

sensitivity of consumers and producers 

in the relevant market (represented by 

the price elasticity of demand or 

supply). The EIM explicitly models 

these behavioral responses and 

estimates the new equilibrium prices 

and output and the resulting 

distribution of social costs across these 

stakeholders (producers and 

consumers). 

(3) What Economic Sectors Are 

Included in This Economic Impact 

Analysis? 

There are two broad economic sectors 

affected by the emission control 

program described in this proposal: (1) 

Small SI engines and equipment, and (2) 

Marine SI engines and equipment. For 

Small SI engines and equipment we 

distinguish between handheld and 

nonhandheld sectors. For handheld, we 

model one integrated handheld engine 

and equipment category. On the 

nonhandheld side, we model 6 engine 

categories, depending on engine class 

and useful life (Class I: UL125, UL250, 

and UL500; Class II: UL250, UL500, 

UL1000), and 8 equipment categories 

(agriculture/construction/general 

industrial; utility and recreational 

vehicles; lawn mowers; tractors; other 

lawn and garden; generator sets/ 

welders; pumps/compressors/pressure 

washers; and snowblowers). For Marine 

SI engines and equipment, we 

distinguish between sterndrives and 

inboards (SD/I), outboards (OB), and 

personal watercraft (PWC). SD/I and OB 

are further categorized by whether they 

are luxury or not. All of these markets 

are described in more detail in Chapter 

9 of the RIA and in the industry 

characterizations prepared for this 

proposal. 

This analysis assumes that all of these 

products are purchased and used by 

residential households. This means that 

to model the behavior change associated 

with the proposed standards we model 

all uses as residential lawn and garden 

care or power generation (Small SI) or 

personal recreation (Marine SI). We do 

not explicitly model commercial uses 

(how the costs of complying with the 

proposed programs may affect the 

production of goods and services that 

use Small SI or Marine SI engines or 

equipment as production inputs); we 

treat all commercial uses as if they were 

residential uses. We believe this 

approach is reasonable because the 

commercial share of the end use 

markets for both Small SI and Marine SI 

equipment is very small.129 In addition, 

for any commercial uses of these 

products the share of the cost of these 

products to total production costs is also 

small (e.g., the cost of a Small SI 

generator is only a very small part of the 

total production costs for a construction 

firm). Therefore, a price increase of the 

magnitude anticipated for this control 

program is not expected to have a 

noticeable impact on prices or 

quantities of goods or services produced 

using Small SI or Marine SI equipment 

as inputs (e.g., commercial turf care, 

construction, or fishing). 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28231 

130U.S. Environmental Protection Agency, Office 

of Air Quality Planning and Standards, Innovative 

Strategies and Economics Group, OAQPS Economic 

Analysis Resource Document, April 1999. A copy 

of this document can be found at http:// 

www.epa.gov/ttn/ecas/econdata/Rmanual2. 

131EPA Guidelines for Preparing Economic 

Analyses, EPA 240–R–00–003, September 2000, p. 

125–6. 132See, for example, EPA Guidelines for 

Preparing Economic Analyses, EPA 240–R–00–003, 

September 2000, p 126. 

In the EIM the Small SI and Marine 

SI markets are not linked (there is no 

feedback mechanism between the Small 

SI and Marine SI market segments). This 

is appropriate because the affected 

equipment is not interchangeable and 

because there is very little overlap 

between the engine producers in each 

market. These two sectors represent 

different aspects of economic activity 

(lawn and garden care and power 

generation as opposed to recreational 

marine) and production and 

consumption of one product is not 

affected by the other. In other words, an 

increase in the price of lawnmowers is 

not expected to have an impact on the 

production and supply of personal 

watercraft, and vice versa. Production 

and consumption of each of these 

products are the results of other factors 

that have little cross-over impacts (the 

need for residential garden upkeep or 

power generation; the desire for 

personal recreation). 

(4) What Are the Key Features of the 

Economic Impact Model? 

A detailed description of the features 

of the EIM and the data used in this 

analysis is provided in Chapter 9 of the 

RIA prepared for this rule. The model 

methodology is firmly rooted in applied 

microeconomic theory and was 

developed following the methodology 

set out in OAQPS’s Economic Analysis 

Resource Document.130

The EIM is a computer model 

comprised of a series of spreadsheet 

modules that simulate the supply and 

demand characteristics of the markets 

under consideration. The initial market 

equilibrium conditions are shocked by 

applying the compliance costs for the 

control program to the supply side of 

the markets (this is done by shifting the 

relevant supply curves by the amount of 

the compliance costs). The EIM uses the 

model equations, model inputs, and a 

solution algorithm to estimate 

equilibrium prices and quantities for the 

markets with the regulatory program. 

These new prices and quantities are 

used to estimate the social costs of the 

model and how those costs are shared 

among affected markets. 

The EIM uses a multi-market partial 

equilibrium approach to track changes 

in price and quantity for the modeled 

markets. As explained in EPA’s 

Guidelines for Preparing Economic 

Analyses, ‘‘partial equilibrium’’ means 

that the model considers markets in 

isolation and that conditions in other 

markets are assumed either to be 

unaffected by a policy or unimportant 

for social cost estimation. Multi-market 

analysis models go beyond partial 

equilibrium by extending the inquiry to 

more than just single markets and 

attempt to capture at least some of the 

interaction between markets—in this 

case, between selected engine and 

equipment markets sectors.131

The EIM uses an intermediate run 

time frame. This means that some 

factors of production are fixed and some 

are variable. In very short analyses, all 

factors of production would be assumed 

to be fixed, leaving the producers with 

no means to respond to the increased 

production costs associated with the 

regulation (e.g., they cannot adjust labor 

or capital inputs). Under this time 

horizon, the costs of the regulation fall 

entirely on the producer. In the long 

run, all factors of production are 

variable and producers can adjust 

production in response to cost changes 

imposed by the regulation (e.g., using a 

different labor/capital mix). In the 

intermediate run there is some resource 

immobility which may cause producers 

to suffer producer surplus losses, but 

they can also pass some of the 

compliance costs to consumers. 

The EIM assumes a perfectly 

competitive market structure. The 

perfect competition assumption is a 

widely accepted economic practice for 

this type of analysis, and only in rare 

cases are other approaches used.132 It 

should be noted that the perfect 

competition assumption is not about the 

number of firms in a market, it is about 

how the market operates. The markets 

included in this analysis do not exhibit 

evidence of noncompetitive behavior: 

there are no indications of barriers to 

entry, the firms in these markets are not 

price setters, and there is no evidence of 

high levels of strategic behavior in the 

price and quantity decisions of the 

firms. These markets are also mature 

markets as evidenced by unit sales 

growing at the rate of population 

increases. Pricing power in such 

markets is typically limited. In addition, 

the products produced within each 

market are somewhat homogeneous in 

that engines and equipment from one 

firm can be purchased instead of 

engines and equipment from another 

firm. Finally, according to contestable 

market theory, oligopolies and even 

monopolies will behave very much like 

firms in a competitive market if it is 

possible to enter particular markets 

without cost (i.e., there are no sunk 

costs associated with market entry or 

exit). This is the case with these 

markets, as there is significant excess 

production capacity in both the Small SI 

and Marine SI industries, in part due to 

improved productivity and efficiency in 

current plants. Idle production capacity 

also limits the ability of firms to raise 

prices, since competitors can easily 

capture market share by increasing their 

production at the expense of a producer 

that increases its prices. For all of these 

reasons it is appropriate to use a perfect 

competition model to estimate the 

economic impacts of this proposal. 

The perfect competition assumption 

has an impact on the way the EIM is 

structured. In a competitive market the 

supply curve is based on the industry 

marginal cost curve; fixed costs do not 

influence production decisions at the 

margin. Therefore, in the market 

analysis the model is shocked by 

variable costs only. However, the nature 

of the Small SI and Marine SI markets 

suggests the market supply curve shifts 

in the model should include fixed and 

variable compliance costs. This is 

because Small SI and Marine SI engine 

and equipment manufacturers produce a 

product that changes very little over 

time. These manufacturers may not 

engage in research and development to 

improve their products on a continuous 

basis (as opposed to highway vehicles or 

nonroad engines and equipment). If this 

is the case, then the product changes 

that would be required to comply with 

the proposed standards would require 

these manufacturers to devote new 

funds and resources to product redesign 

and facilities changes. In this situation, 

Small SI and Marine SI engine and 

equipment manufacturers would be 

expected to increase their prices by the 

full amount of the compliance costs 

(both fixed and variable) to attempt to 

recover those costs. To reflect these 

conditions, the supply shift in this EIM 

is based on both fixed and variable 

costs, even though the model assumes 

perfect competition. A sensitivity 

analysis was performed to investigate 

the impacts under the alternative 

scenarios of shifting the supply curve by 

the variable costs only. The results of 

that analysis can be found in the RIA 

prepared for this proposal. We request 

comment on the extent to which 

manufacturers can be expected to 

devote additional funds to cover the 

fixed costs associated with the 

standards, or whether they in fact do 

provide for product development 

resources on a continuous basis and can 


sroberts on PROD1PC70 with PROPOSALS
28232 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

be expected to use those funds to cover 

the fixed costs. We also request 

comment on whether companies would 

attempt to pass fixed costs to consumers 

as an additional price increase and, if 

so, how much of the fixed costs would 

be based on and for how long. 

The market interactions modeled in 

the EIM are those between producers 

and consumers of the specified engines 

and the equipment that use those 

engines. The EIM does not consider 

sales distribution networks or how the 

regulated goods are sold to final 

consumers through wholesalers and/or 

retailers. This is appropriate because the 

proposed regulatory program does not 

impose additional costs on the 

distribution networks and those 

relationships are not expected to change 

as a result of the standards. In the case 

of Small SI equipment, however, 

concerns have been raised about the 

potential for dominant retailers (big box 

stores such as Wal-Mart, Sears and KMart) to affect the ability of 

manufacturers to pass along cost 

increases associated with new emission 

control requirements, forcing them to 

absorb the compliance costs associated 

with the proposed standards. As 

described in greater detail in Chapter 9 

of the RIA, dominant retailers are not 

expected to affect market interactions in 

ways that would offset the assumption 

of perfect competition by preventing 

firms from passing on increases in costs 

associated with the control program. 

This is because all firms in the market 

are expected to comply with the control 

program, and all will experience an 

increase in marginal costs. Profitmaximizing manufacturers will 

continue to follow a marginal cost 

pricing rule regardless of the 

distribution arrangements. If large retail 

distributors attempted to prevent 

efficient manufacturers from raising 

prices in response to the standards, 

manufacturers would likely respond to 

a retailer’s price pressure by reducing 

output. This would result in large 

excess demand in the equipment market 

which would ultimately have to be 

satisfied through a new higher 

equilibrium price, which in turn would 

result in greater supply, thus bidding 

the price down to a new market 

equilibrium after the application of the 

control program. 

The relationships modeled in the EIM 

do not include substitution away from 

Small SI and Marine SI engines and 

equipment to diesel or electric 

alternatives. This is appropriate because 

consumers are not likely to make these 

substitutions. Substitution to diesel 

Small SI equipment is not a viable 

option for most residential consumers, 

either because diesel equipment does 

not exist (e.g., diesel string trimmers) or 

because there would be a large price 

premium that would discourage the use 

of diesel equipment (e.g., diesel 

lawnmowers and diesel recreational 

marine vessels). In addition, most 

households are not equipped to handle 

the additional fuel type and misfueling 

would carry a high cost. Finally, the 

lack of a large infrastructure system 

already in place like the one supporting 

the use of gasoline equipment for 

residential and recreational purposes, 

including refueling and maintenance, 

represents a large barrier to substitution 

from gasoline to diesel equipment. On 

the electric side, the impact of 

substitution to electric for Small SI 

equipment (there are no comparable 

options for Marine SI) is also expected 

to be negligible. Gasoline is the power 

source of choice for small and 

inexpensive equipment due to its low 

initial cost. Gasoline equipment is also 

inherently portable, which make them 

more attractive to competing electric 

equipment that must be connected with 

a power grid or use batteries that require 

frequent recharging. 

The EIM is a market-level analysis 

that estimates the aggregate economic 

impacts of the control program on the 

relevant market. It is not a firm-level 

analysis and therefore the supply 

elasticity or individual compliance costs 

facing any particular manufacturer may 

be different from the market average. 

This difference can be important, 

particular where the rule affects 

different firms’ costs over different 

volumes of production. However, to the 

extent there are differential effects on 

individual firms, EPA believes that the 

wide array of compliance flexibilities 

provided in this proposal are adequate 

to address any cost inequities that are 

likely to arise. 

Finally, consistent with the proposed 

emission controls, this EIA covers 

engines sold in 49 states. California 

engines are not included because 

California has its own state-level 

controls for Small SI and Marine SI 

engines. The sole exceptions are Small 

SI engines used in agriculture and 

construction applications in California. 

These engines are included in the 

control program and in this analysis 

because the Clean Air Act pre-empts 

California from setting standards for 

these engines. 

(5) What Are the Key Model Inputs? 

Key model inputs for the EIM are the 

behavioral parameters, the market 

equilibrium quantities and prices, and 

the compliance cost estimates. 

The model’s behavioral paramaters 

are the price elasticities of supply and 

demand. These parameters reflect how 

producers and consumers of the engines 

and equipment affected by the standards 

can be expected to change their 

behavior in response to the costs 

incurred in complying with the 

standards. More specifically, the price 

elasticity of supply and demand 

(reflected in the slope of the supply and 

demand curves) measure the price 

sensitivity of consumers and producers. 

The price elasticities used in this 

analysis are summarized in Table XII.F–

1 and are described in more detail in 

Chapter 9 of the RIA. An ‘‘inelastic’’

price elasticity (less than one) means 

that supply or demand is not very 

responsive to price changes (a one 

percent change in price leads to less 

than one percent change in demand). 

An ‘‘elastic’’ price elasticity (more than 

one) means that supply or demand is 

sensitive to price changes (a one percent 

change in price leads to more than one 

percent change in demand). A price 

elasticity of one is unit elastic, meaning 

there is a one-to-one correspondence 

between a change in price and change 

in demand. 

TABLE XII. F–1.—BEHAVIORAL PARAMETERS USED IN SMALL SI/MARINE SI ECONOMIC IMPACT MODEL

Sector Market Demand elasticity Source Supply elasticity Source 

Engine ........................ Small SI and Marine 

SI Engine Market.

Derived ...................... N/A ............................ 3.8 (elastic) ............... EPA Econometric Estimate. 

Small SI Equipment ... All handheld .............. ¥1.9 (elastic) ............ EPA Econometric Estimate.3.4 (elastic) ............... EPA Econometric Estimate. 

Lawn Mowers ............ ¥0.2 (inelastic) ......... EPA Econometric Estimate.Same as above.

Other lawn & garden ¥0.9 (inelastic) ......... EPA Econometric Estimate.Same as above.


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28233 

TABLE XII. F–1.—BEHAVIORAL PARAMETERS USED IN SMALL SI/MARINE SI ECONOMIC IMPACT MODEL—Continued 

Sector Market Demand elasticity Source Supply elasticity Source 

Gensets/welders 

(class I).

¥1.4 (elastic) ............ EPA Econometric Estimate.3.3 (elastic) ............... EPA Econometric Estimate. 

Gensets/welders 

(class II).

¥1.1 (elastic) ............ EPA Econometric Estimate.Same as above.

All other nonhandheld.¥1.0 (unit elastic) ..... EPA Econometric Estimate.3.4 (elastic) Same as 

above.

Marine SI Equipment .. PWC .......................... ¥2.0 (elastic) ............ EPA Econometric Estimate.3.4 (elastic) ............... EPA Econometric Estimate. 

All other vessels 

types.

Same as above ......... ................................... 2.3 (elastic) ............... EPA Econometric Estimate. 

The estimated supply and demand 

elasticities were based on best data we 

could find. We used (1) The industrylevel data published by the National 

Bureau of Economic Research (NBER)- 

Center for Economic Studies 

(Bartlesman, Becker, and Gray, 2000); 

(2) Current Industrial Reports (CIR) 

series from the U.S. Census Bureau; (3) 

several data series reported in a study 

by Air Improvement Resource Inc. and 

National Economic Research Associates 

(AIR/NERA, 2003) for the walk-behind 

lawnmowers; (4) the U.S. Census 

Bureau historical data on household 

income and housing starts (U.S. Census 

Bureau, 2002; 2004); (5) price, wage, 

and material cost indexes from the 

Bureau of Labor Statistics (BLS) (BLS, 

2004a,b,c,d,e); (6) the implicit gross 

domestic product (GDP) price deflator 

reported by the U.S. Bureau of 

Economic Analysis (BEA, 2004). It 

should be noted that the aggregate data 

we used to estimate elasticities include 

data on other markets as well as the 

Small SI or Marine SI markets. If we had 

been able to obtain market-specific data 

for Small SI or Marine SI only, the 

estimated price elasticities may have 

been different. 

The estimated supply elasticities for 

all of the equipment and engine markets 

are elastic, ranging from 2.3 for all 

recreational marine except PWC, to 3.3 

for generators, 3.4 for PWCs and all 

Small SI except generators, and 3.8 for 

engines. This means that quantities 

supplied are expected to be fairly 

sensitive to price changes (e.g., a 1% 

change in price yields a 3.3 percent 

change in quantity of generators 

produced). 

On the demand side, the Marine SI 

equipment market estimated demand 

elasticity is elastic, at ¥2.0. This is 

consistent with the discretionary nature 

of purchases of recreational marine 

vessels (consumers can easily decide to 

spend their recreational budget on other 

alternatives). 

The estimated demand elasticity for 

handheld equipment is elastic, at ¥1.9. 

This suggests that consumers are more 

sensitive to price changes for handheld 

equipment than for other Small SI 

equipment. In other words, they are 

more likely to change their purchase 

decision for a small change in the price 

of a string trimmer, perhaps opting for 

trimmer shears or deciding to forego 

trimming altogether. 

The estimated demand elasticity for 

lawnmowers is very inelastic at ¥0.2. 

This suggests that consumers of this 

equipment are not very sensitive to 

price changes. Most of this equipment is 

sold to individual homeowners, who are 

often required by local authorities to 

keep their lawns trimmed. Household 

ownership of a gasoline lawnmower is 

often their least expensive option. 

Lawncare services are more expensive 

since the price for these services 

includes labor and other factors of 

production. Purchasing other equipment 

may also not be attractive, since electric 

and diesel mowers are generally more 

expensive and often less convenient. 

Finally, the option of using landscape 

alternatives (e.g., prairie, wildflower, or 

rock gardens) may not be attractive for 

homeowners who may also use their 

yards for recreational purposes. For all 

these reasons, the price sensitivity of 

homeowners to lawnmower prices 

would be expected to be inelastic. 

All the other demand elasticities, for 

gensets, welders, compressors, and ag/ 

construction equipment, are about unit 

elastic, at ¥1.0 meaning a 1 percent 

change in price is expected to result in 

a 1 percent change in demand. 

The demand elasticities for the engine 

markets are internally derived as part of 

the process of running the model. This 

is an important feature of the EIM, 

which allows it to link the engine and 

equipment components of each model 

and simulate how compliance costs can 

be expected to ripple through the 

affected market. In actual markets, for 

example, the quantity of lawnmowers 

produced in a particular period depends 

on the price of engines (the Small SI 

engine market) and the demand for 

equipment by residential consumers. 

Similarly, the number of engines 

produced depends on the demand for 

engines (the lawnmower market) which 

depends on consumer demand for 

equipment. Changes in conditions in 

one of these markets will affect the 

others. By designing the model to derive 

the engine demand elasticities, the EIM 

simulates these connections between 

supply and demand among the product 

markets and replicates the economic 

interactions between producers and 

consumers. 

Initial market equilibrium quantities 

for these markets are simulated using 

the same current year sales quantities 

used in the engineering cost analysis. 

The initial market equilibrium prices for 

Small SI and Marine SI engines and 

equipment were derived from industry 

sources and published data and are 

described in Chapter 9 of the Draft RIA. 

The compliance costs used to shock 

the model, to simulate the application of 

the control program, are the same as the 

engineering costs described in Chapter 

6. However, the EIM uses an earlier 

version of the engineering compliance 

developed for this rule. The net present 

value of the engineering costs used in 

this analysis (without taking the fuel 

savings into account, at a 3 percent 

discount rate over the period of the 

analysis) is $10.0 billion, which is about 

$100 million less than the net present 

value of the final estimated engineering 

costs, $10.1 billion. We do not expect 

that a difference of this magnitude 

would change the overall results of this 

economic impact analysis, in terms of 

market impacts and how the costs are 

expected to be shared among 

stakeholders. 

As explained in Section XII.F.4, the 

EIM uses both fixed and variable 

engineering costs to shock the initial 

equilibrium conditions. The fixed costs 

are amortized over the first 5 years of 

the standards and include a 7 percent 

cost of capital. For some elements of the 

program (i.e., evaporative emission 

controls), fixed costs are incurred 


sroberts on PROD1PC70 with PROPOSALS
28234 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

133Li, Chi. 2007. Memorandum to Docket EPA–

HQ–OAR–2004–0008. Detailed Results From 

Economic Impact Model. 

134For example, PWC and handheld equipment 

producers generally integrate equipment and engine 

manufacturing processes and are included in the 

EIM as one-level equipment markets. Since there is 

no engine market for these engines, the EIM does 

not include PWC and handheld engine 

throughout the period of analysis due to 

the need to replace tooling. 

Additional costs that need to be 

considered in the EIM are the operating 

costs (fuel savings) associated with the 

evaporative emission controls. These 

fuel savings are not included in the 

market analysis for this economic 

impact analysis. This is because all 

available evidence suggests that fuel 

savings do not affect consumer 

decisions with respect to the purchase 

of this equipment. Unlike motor 

vehicles or other consumer goods, 

neither Small SI nor Marine SI 

equipment is labeled with expected fuel 

consumption or expected annual 

operating costs. Therefore, there is no 

information available for the consumer 

to use to make this decision. Instead 

consumers base their purchase decision 

on other attributes of the product for 

which the manufacturer provides 

information. For lawn mowers this may 

be the horsepower of the engine, 

whether the machine has a bag or has 

a mulching feature, its blade size, etc. 

For PWC it may be how many people it 

can carry, its maximum speed, its 

horsepower, etc. In many cases, 

especially for Small SI equipment, the 

consumer may not even be aware of the 

fuel savings when operating the 

equipment, especially if he or she uses 

the same portable fuel storage container 

to fuel several different pieces of 

equipment. 

These fuel savings are included in the 

social cost analysis. This is because they 

are savings that accrue to society. These 

savings are attributed to consumers of 

the relevant equipment. As explained in 

more detail in Section 9.3.5 of the Draft 

RIA, the social cost analysis is based on 

the equivalent of the pre-tax price of 

gasoline in that analysis. Although the 

consumer will realize a savings equal to 

the pump price of gasoline (post-tax), 

part of that savings is offset by a tax loss 

to governmental agencies and is thus a 

loss to consumers of the services 

supported by those taxes. This tax 

revenue loss, considered a transfer 

payment in this analysis, does not affect 

the benefit-cost analysis results. 

(6) What Are the Results of the 

Economic Impact Modeling? 

Using the model and data described 

above, we estimated the economic 

impacts of the proposed emission 

control program. We performed a 

market analysis for all years and all 

engine and equipment types. In this 

section we present summarized results 

for selected markets and years. More 

detail can be found in the appendices to 

Chapter 9 of the RIA and in the docket 

for this rule.133 Also included in 

Appendix 9H to that chapter are 

sensitivity analyses for several key 

inputs. 

The EIA consists of two parts: a 

market analysis and a welfare analysis. 

The market analysis looks at expected 

changes in prices and quantities for 

affected products. The welfare analysis 

looks at economic impacts in terms of 

annual and present value changes in 

social costs. 

As explained in Section XII.F.4, the 

EIM is shocked by the sum of fixed and 

variable costs. For the market analysis, 

this leads to a small increase in 

estimated price impacts for the years 

2011 through 2016, the period during 

which fixed costs are recovered. The 

increase is small because, for many 

elements of the program, annual per 

unit fixed costs are smaller than annual 

per unit variable costs. For the welfare 

analysis, applying both fixed and 

variable costs means that the burden of 

the social costs attributable to producers 

and consumers remains fixed 

throughout the period of analysis. This 

is because producers pass the fixed 

costs to consumers at the same rate as 

the variable costs instead of having to 

absorb them internally. 

(a) Market Impact Analysis 

In the market analysis, we estimate 

how prices and quantities of goods 

affected by the proposed emission 

control program can be expected to 

change once the program goes into 

effect. The analysis relies on the initial 

market equilibrium prices and 

quantities for each type of equipment 

and the price elasticity of supply and 

demand. It predicts market reactions to 

the increase in production costs due to 

the new compliance costs (variable and 

fixed). It should be noted that this 

analysis does not allow any other factors 

of production to vary. In other words, it 

does not consider that manufacturers 

may adjust their production processes 

or marketing strategies in response to 

the control program. Also, as explained 

above, while the markets are shocked by 

both fixed and variable costs, the market 

shock is not offset by fuel savings. 

A summary of the estimated market 

impacts is presented in Table XII.F–2 

for 2013, 2018, and 2030. These years 

were chosen because 2013 is the year of 

highest compliance; after 2018, the fixed 

costs are recovered and the market 

impacts reflect variable costs as well as 

growth in equipment population; and 

2030 illustrates the long-term impacts of 

the program. 

Market level impacts are reported for 

the engine and equipment markets 

separately. This is because the EIM is a 

two-level model that treats these 

markets separately. However, changes in 

equipment prices and quantities are due 

to impacts of both direct equipment 

compliance costs and indirect engine 

compliance costs that are passed 

through to the equipment market from 

the engine market through higher engine 

prices. 

The average market-level impacts 

presented in this section are designed to 

provide a broad overview of the 

expected market impacts that is useful 

when considering the impacts of the 

rule on the economy as a whole. The 

average price impacts are productweighted averages of the results for the 

individual engine and equipment 

categories included in that sub-sector 

(e.g., the estimated Marine SI engine 

price and quantity changes are weighted 

averages of the estimated results for all 

of the Marine SI engine markets). The 

average quantity impacts are the sum of 

the decrease in units produced units 

across sub-markets. Price increases and 

quantity decreases for specific types of 

engines and equipment are likely to be 

different. 

Although each of the affected 

equipment in this analysis generally 

requires one engine (the exception being 

Marine SI sterndrive/inboards), the 

estimated decrease in the number of 

engines produced in Table XII.F–2 is 

less than the estimated decrease in the 

number of equipment produced. At first 

glance, this result seems 

counterintuitive because it does not 

reflect the approximate one-to-one 

correspondence between engines and 

equipment. This discrepancy occurs 

because the engine market-level analysis 

examines only output changes for 

engines that are produced by 

independent engine manufacturers and 

subsequently sold to independent 

equipment manufacturers. Engines 

produced and consumed by vertically 

integrated equipment/engine 

manufacturers are not explicitly 

modeled. Therefore, the market-level 

analysis only reflects engines sold on 

the ‘‘open market,’’ and estimates of 

output changes for engines consumed 

internally are not reflected in this 

number.134 Despite the fact that changes 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28235 

consumption changes in engine market-level 

results. 

135 It should be noted that the absolute change in 

the number of engines and equipment does not 

match. This is because the absolute change in the 

quantity of engines represents only engines sold on 

the open market. Reductions in engines consumed 

internally by integrated engine/equipment 

manufacturers are not reflected in this number but 

are captured in the social cost analysis. 

136See previous note. 

in consumption of internally consumed 

engines are not directly reported in the 

market-level analysis results, the costs 

associated with these engines are 

included in the market-level analysis (as 

supply shift for the equipment markets). 

In addition, the cost and welfare 

analyses include the compliance costs 

associated with internally consumed 

engines. 

Marine SI Market Analysis 

The average price increase for Marine 

SI engines in 2013, the high cost year, 

is estimated to be about 2.3 percent, or 

$257. By 2018, this average price 

increase is expected to decline to about 

1.7 percent, or $196, and remain at that 

level for later years. The market impact 

analysis predicts that with these 

increases in engine prices the expected 

average decrease in total sales in 2013 

is about 2.0 percent, or 8,800 engines. 

This decreases to about 1.6 percent in 

2018, or about 7,000 engines. 

On the vessel side, the average price 

change reflects the direct equipment 

compliance costs plus the portion of the 

engine costs that are passed on to the 

equipment purchaser (via higher engine 

prices). The average price increase in 

2013 is expected to be about 1.3 percent, 

or $232. By 2018, this average price 

increase is expected to decline to about 

1 percent, or $178. These price increases 

are expected to vary across vessel 

categories. The category with the largest 

price increase in 2013 is expected to be 

personal watercraft engines, with an 

estimated price increase of about 2.8 

percent in 2013; this is expected to 

decrease to 2.1 percent in 2018. The 

smallest expected change in 2013 is 

expected to be for sterndrive/inboards 

and outboard recreational vessels, 

which are expected to see price 

increases of about 0.7 percent. The 

market impact analysis predicts that 

with these increases in vessel prices the 

expected average decrease in quantity 

produced in 2013 is about 2.7 percent, 

or 11,000 vessels.135 This is expected to 

decrease to about 2.0 percent in 2018, or 

about 8,600 vessels. The personal 

watercraft category is expected to 

experience the largest decline in 2013, 

about 5.6 percent (4,800 vessels). The 

smallest percentage decrease in 

production is expected for sterndrive/ 

inboards at 1.4 percent (1,300 vessels); 

the smallest absolute decrease in 

quantity is expected for outboard 

recreational vessels, at 113 vessels (1.5 

percent). 

Small SI Market Analysis 

The average price increase for Small 

SI engines in 2013, the high cost year, 

is estimated to be about 11.7 percent, or 

$22. By 2018, this average price increase 

is expected to decline to about 9.1 

percent, or $17, and remain at that level 

for later years. The market impact 

analysis predicts that with these 

increases in engine prices the expected 

average decrease in total sales in 2013 

is expected to be about 2.3 percent, or 

371,000 engines. This is expected to 

decrease to about 1.7 percent in 2018, or 

about 299,000 engines. 

On the equipment side, the average 

price change reflects the direct 

equipment compliance costs plus the 

portion of the engine costs that are 

passed on to the equipment purchaser 

(via higher engine prices). The average 

price increase for all Small SI 

equipment in 2013 is expected to be 

about 3.1 percent, or $14. By 2018, this 

average price increase is expected to 

decline to about 2.4 percent, or $10. The 

average price increase and quantity 

decrease differs by category of 

equipment. As shown in Table XII.F–2, 

the price increase for Class I equipment 

is estimated to be about 6.9 percent 

($19) in 2013, decreasing to 5.5 percent 

($15) in 2018. The market impact 

analysis predicts that with these 

increases in equipment prices the 

expected average decrease in the 

quantity of Class I equipment produced 

in 2013 is about 2.2 percent, or 219,400 

units.136 This is expected to decrease to 

about 1.8 percent in 2018, or about 

189,700 units. For Class II equipment, a 

higher price increase is expected, about 

3.9 percent ($41) in 2013, decreasing to 

2.6 percent ($25) in 2018. The expected 

average decrease in the quantity of Class 

II equipment produced in 2013 is about 

4.3 percent, or 157,300 units, decreasing 

to 2.8 percent, or about 114,000 units, 

in 2018. 

For the handheld equipment market, 

prices are expected to increase about 0.3 

percent for all years, and quantities are 

expected to decrease about 0.6 percent. 

TABLE XII.F–2.—ESTIMATED MARKET IMPACTS FOR 2013, 2018, 2030 

[2005$] 

Market 

Change in price Change in quantity 

Absolute Percent Absolute Percent 

2013 

Marine: 

Engines ..................................................................................................................... $257 2.3 ¥8,846 ¥2.0 

Equipment ................................................................................................................. 232 1.3 ¥10,847 ¥2.7 

SD/I .................................................................................................................... 252 0.7 ¥1,336 ¥1.4 

OB Recreational ................................................................................................ 638 0.7 ¥113 ¥1.5 

OB Luxury ......................................................................................................... 206 1.1 ¥4,579 ¥2.1 

PWC .................................................................................................................. 237 2.8 ¥4,819 ¥5.6 

Small SI: 

Engines ..................................................................................................................... 22 11.7 ¥371,097 ¥2.3 

Equipment ................................................................................................................. 14 3.1 ¥482,942 ¥1.9 

Class I ............................................................................................................... 19 6.9 ¥219,400 ¥2.2 

Class II .............................................................................................................. 41 3.9 ¥157,306 ¥4.3 

HH ..................................................................................................................... 0.3 0.3 ¥106,236 ¥0.6 


sroberts on PROD1PC70 with PROPOSALS
28236 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE XII.F–2.—ESTIMATED MARKET IMPACTS FOR 2013, 2018, 2030—Continued 

[2005$] 

Market 

Change in price Change in quantity 

Absolute Percent Absolute Percent 

2018 

Marine: 

Engines ..................................................................................................................... 196 1.7 ¥7,002 ¥1.6 

Equipment ................................................................................................................. 178 1.0 ¥8,563 ¥2.0 

SD/I .................................................................................................................... 195 0.5 ¥1,072 ¥1.1 

OB Recreational ................................................................................................ 496 0.6 ¥91 ¥1.1 

OB Luxury ......................................................................................................... 160 0.8 ¥3,634 ¥1.6 

PWC .................................................................................................................. 178 2.1 ¥3,766 ¥4.2 

Small SI: 

Engines ..................................................................................................................... 17 9.1 ¥298,988 ¥1.7 

Equipment ................................................................................................................. 10 2.4 ¥401,025 ¥1.4 

Class I ............................................................................................................... 15 5.5 ¥189,771 ¥1.8 

Class II .............................................................................................................. 25 2.6 ¥113,999 ¥2.8 

HH ..................................................................................................................... 0.2 0.3 ¥97,255 ¥0.5 

2030 

Marine: 

Engines ..................................................................................................................... 195 1.7 ¥7,728 ¥1.6 

Equipment ................................................................................................................. 179 1.0 ¥9,333 ¥2.0 

SD/I .................................................................................................................... 195 0.5 ¥1,161 ¥1.1 

OB Recreational ................................................................................................ 496 0.6 ¥98 ¥1.1 

OB Luxury ......................................................................................................... 160 0.8 ¥3,998 ¥1.7 

PWC .................................................................................................................. 178 2.1 ¥4,076 ¥4.2 

Small SI: 

Engines ..................................................................................................................... 17 9.1 ¥354,915 ¥1.7 

Equipment ................................................................................................................. 10 2.4 ¥475,825 ¥1.4 

Class I ............................................................................................................... 15 5.6 ¥225,168 ¥1.8 

Class II .............................................................................................................. 25 2.6 ¥135,400 ¥2.8 

HH ..................................................................................................................... 0.2 0.3 ¥115,257 ¥0.5 

(b) Economic Welfare Analysis 

In the economic welfare analysis we 

look at the costs to society of the 

proposed program in terms of losses to 

consumer and producer surplus. These 

surplus losses are combined with the 

fuel savings to estimate the net 

economic welfare impacts of the 

proposed program. Estimated annual net 

social costs for selected years are 

presented in Table XII–F–3. This table 

shows that total social costs for each 

year are slightly less than the total 

engineering costs. This is because the 

total engineering costs do not reflect the 

decreased sales of engines and 

equipment that are incorporated in the 

total social costs. 

TABLE XII.F–3.—ESTIMATED ANNUAL ENGINEERING AND SOCIAL COSTS, THROUGH 2038 

[2005$, $million] 

Year Total engineering costs 

Total social 

costs Fuel savings 

Net engineering costs (including fuel 

savings) 

Net social 

costs (including fuel savings) 

2008 ..................................................................................... $9.5 $9.5 $3.1 $6.4 $6.4 

2009 ..................................................................................... 171.7 168.8 13.7 157.9 155.1 

2010 ..................................................................................... 191.1 188.0 25.4 165.7 162.6 

2011 ..................................................................................... 470.5 463.4 64.9 405.7 398.5 

2012 ..................................................................................... 647.3 638.2 103.5 543.8 534.7 

2013 ..................................................................................... 652.5 643.4 136.5 516.0 506.9 

2014 ..................................................................................... 621.1 613.1 161.2 459.9 451.9 

2015 ..................................................................................... 627.0 619.0 182.3 444.7 436.7 

2016 ..................................................................................... 520.9 515.2 200.9 320.0 314.2 

2017 ..................................................................................... 492.6 487.5 216.2 276.4 271.3 

2018 ..................................................................................... 497.2 492.0 229.9 267.3 262.1 

2019 ..................................................................................... 503.6 498.4 242.1 261.5 256.2 

2020 ..................................................................................... 510.0 504.7 253.1 256.9 251.6 

2021 ..................................................................................... 516.4 511.0 263.3 253.1 247.8 

2022 ..................................................................................... 522.7 517.3 272.9 249.8 244.4 

2023 ..................................................................................... 529.1 523.7 281.4 247.7 242.3 

2024 ..................................................................................... 535.8 530.3 289.3 246.5 241.0 

2025 ..................................................................................... 542.3 536.7 296.6 245.6 240.0 

2026 ..................................................................................... 548.7 543.1 303.6 245.1 239.5 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28237 

TABLE XII.F–3.—ESTIMATED ANNUAL ENGINEERING AND SOCIAL COSTS, THROUGH 2038—Continued 

[2005$, $million] 

Year Total engineering costs 

Total social 

costs Fuel savings 

Net engineering costs (including fuel 

savings) 

Net social 

costs (including fuel savings) 

2027 ..................................................................................... 555.2 549.4 310.1 245.1 239.3 

2028 ..................................................................................... 561.6 555.8 316.3 245.3 239.5 

2029 ..................................................................................... 568.0 562.2 322.0 246.1 240.2 

2030 ..................................................................................... 574.5 568.6 327.3 247.2 241.3 

2031 ..................................................................................... 580.9 575.0 332.3 248.6 242.6 

2032 ..................................................................................... 587.4 581.3 337.1 250.3 244.2 

2033 ..................................................................................... 593.8 587.7 341.7 252.1 246.0 

2034 ..................................................................................... 600.3 594.1 346.1 254.2 248.0 

2035 ..................................................................................... 606.7 600.5 350.4 256.3 250.1 

2036 ..................................................................................... 613.1 606.9 354.5 258.6 252.3 

2037 ..................................................................................... 619.6 613.2 358.5 261.1 254.7 

2038 ..................................................................................... 626.0 619.6 362.5 263.6 257.1 

NPV at 3% a ......................................................................... 9,996.2 9,882.2 4,356.2 5,640.1 5,526.0 

NPV at 7% a ......................................................................... 5,863.6 5,794.1 2,291.5 3,572.1 3,502.6 

aEPA EPA presents the present value of cost and benefits estimates using both a three percent and a seven percent social discount rate. According to OMB Circular A–4, ‘‘the 3 percent discount rate represents the ‘‘social rate of time preference’* * * [which] means the rate at which 

‘society’ discounts future consumption flows to their present value’’; ‘‘the seven percent rate is an estimate of the average before-tax rate of return to private capital in the U.S. economy* * * [that] approximates the opportunity cost of capital.’’

Table XII.F–4 shows how total social 

costs are expected to be shared across 

stakeholders, for selected years. 

According to these results, consumers in 

the Marine SI market are expected to 

bear approximately 66 percent of the 

cost of the Marine SI program. This is 

expected to be offset by the fuel savings. 

Vessel manufacturers are expected to 

bear about 22 percent of that program, 

and engine manufacturers the remaining 

11 percent. In the Small SI market, 

consumers are expected to bear 79 

percent of the cost of the Small SI 

program. This will also be offset by the 

fuel savings. Equipment manufacturers 

are expected to bear about 17 percent of 

that program, and engine manufacturers 

the remaining 4 percent. The estimated 

percentage changes in surplus are the 

same for all years because the initial 

equilibrium conditions are shocked by 

both fixed and variable costs; producers 

would pass the fixed costs to consumers 

at the same rate as the variable costs. 

TABLE XII.F–4: SUMMARY OF ESTIMATED SOCIAL COSTS FOR 2013, 2018, 2030 

[2005 $, $ million] 

Market 

Absolute 

change in 

surplus 

Percent 

change in 

surplus 

Fuel savings Total change 

in surplus 

2013 

Marine SI: 

Engine Manufacturers .............................................................................. ¥$21.54 11 ........................ ¥$21.54 

Equipment Manufacturers ........................................................................ ¥42.23 22 ........................ ¥42.23 

End User (Households) ............................................................................ ¥125.14 66 $42.27 ¥82.87 

Subtotal ............................................................................................. ¥188.91 ........................ ........................ ¥146.64 

Small SI: 

Engine Manufacturers .............................................................................. ¥18.36 4 ........................ ¥18.36 

Equipment Manufacturers ........................................................................ ¥80.16 18 ........................ ¥80.16 

End User (Households) ............................................................................ ¥355.95 78 94.26 ¥261.69 

Subtotal ............................................................................................. ¥454.47 ........................ ........................ ¥360.21 

Total ........................................................................................... ¥643.38 ........................ 136.53 ¥506.85 

2018 

Marine SI: 

Engine Manufacturers .............................................................................. ¥17.29 11 ........................ ¥17.29 

Equipment Manufacturers ........................................................................ ¥34.02 22 ........................ ¥34.02 

End User (Households) ............................................................................ ¥100.19 66 87.12 ¥13.07 

Subtotal ............................................................................................. ¥151.50 ........................ ........................ ¥64.38 

Small SI: 

Engine Manufacturers .............................................................................. ¥13.89 4 ........................ ¥13.89 

Equipment Manufacturers ........................................................................ ¥57.65 17 ........................ ¥57.65 


sroberts on PROD1PC70 with PROPOSALS
28238 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE XII.F–4: SUMMARY OF ESTIMATED SOCIAL COSTS FOR 2013, 2018, 2030—Continued 

[2005 $, $ million] 

Market 

Absolute 

change in 

surplus 

Percent 

change in 

surplus 

Fuel savings Total change 

in surplus 

End User (Households) ............................................................................ ¥268.95 79 142.78 ¥126.17 

Subtotal ............................................................................................. ¥340.49 ........................ ........................ ¥197.71 

Total ........................................................................................... ¥491.99 ........................ 229.90 ¥262.09 

2030 

Marine SI: 

Engine Manufacturers .............................................................................. ¥18.81 11 ........................ ¥18.81 

Equipment Manufacturers ........................................................................ ¥36.97 23 ........................ ¥36.97 

End User (Households) ............................................................................ ¥108.52 66 149.36 40.84 

Subtotal ............................................................................................. ¥164.30 ........................ ........................ ¥14.94 

Small SI: 

Engine Manufacturers .............................................................................. ¥16.49 4 ........................ ¥16.49 

Equipment Manufacturers ........................................................................ ¥68.45 17 ........................ ¥68.45 

End User (Households) ............................................................................ ¥319.31 79 177.89 ¥141.42 

Subtotal ............................................................................................. ¥404.25 ........................ ........................ ¥226.36 

Total ........................................................................................... ¥568.55 ........................ 327.25 ¥241.30 

Table XII.F–5 contains more detailed 

information on the sources of the social 

costs for 2013. This table shows that 

vessel and equipment manufacturers are 

expected to bear more of the burden of 

the program than engine manufacturers. 

On the marine side, the loss of producer 

surplus for the vessel manufacturers has 

two sources. First, they would bear part 

of the burden of the equipment costs. 

Second, they would also bear part of the 

engine costs, which are passed on to 

vessel manufacturers in the form of 

higher engine prices. Vessel 

manufacturers would not be able to pass 

along a greater share of the engine and 

vessel compliance costs to end 

consumers due to the elastic price 

elasticity of demand for consumers of 

these vessels. On the Small SI side, 

equipment manufacturers can pass on 

more of the compliance costs to end 

consumers because the price elasticity 

of demand in these markets is less 

elastic. 

TABLE XII.F–5.—DISTRIBUTION OF ESTIMATED SURPLUS CHANGES BY MARKET AND STAKEHOLDER FOR 2013 

[2005$, million$] 

Scenario 

Engineering 

compliance 

costs 

Producer 

surplus 

Consumer 

surplus 

Total 

surplus 

Fuel 

savings 

Net 

surplus 

Marine SI 

Engine Manufacturers ...................................................... $133.2 ¥$21.5 .................... ¥$21.5 .................... ¥$21.5 

Equipment Manufacturers ................................................ 59.1 ¥42.2 .................... ¥42.2 .................... ¥42.2 

Engine Price Changes ..................................................... .................... ¥18.7 .................... .................... .................... ....................

Equipment Cost Changes ................................................ .................... ¥23.6 .................... .................... .................... ....................

End User (Households) ................................................... .................... .................... ¥125.1 ¥125.1 42.3 ¥82.8 

Engine Price Changes ..................................................... .................... .................... ¥91.8 .................... .................... ....................

Equipment Price Changes ............................................... .................... .................... ¥33.3 .................... .................... ....................

Subtotal ..................................................................... 192.2 ¥63.8 ¥125.1 ¥188.9 42.3 ¥146.6 

Small SI 

Engine Manufacturers ...................................................... 371.9 ¥18.4 .................... ¥18.4 .................... ¥18.4 

Equipment Manufacturers ................................................ 88.4 ¥80.2 .................... ¥80.2 .................... ¥80.2 

Engine Price Changes ..................................................... .................... ¥59.0 .................... .................... .................... ....................

Equipment Cost Changes ................................................ .................... ¥21.1 .................... .................... .................... ....................

End User (Households) ................................................... .................... .................... ¥355.9 ¥355.9 94.3 ¥261.7 

Engine Price Changes ..................................................... .................... .................... ¥289.8 .................... .................... ....................

Equipment Cost Changes ................................................ .................... .................... ¥66.1 .................... .................... ....................

Subtotal ..................................................................... 460.3 ¥98.5 ¥355.9 ¥454.5 94.3 ¥360.2 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28239 

137EPA has historically presented the present 

value of cost and benefits estimates using both a 3 

percent and a 7 percent social discount. The 3 

percent rate represents a demand-side approach and 

reflects the time preference of consumption (the 

rate at which society is willing to trade current 

consumption for future consumption). The 7 

percent rate is a cost-side approach and reflects the 

shadow price of capital. 

TABLE XII.F–5.—DISTRIBUTION OF ESTIMATED SURPLUS CHANGES BY MARKET AND STAKEHOLDER FOR 2013—

Continued 

[2005$, million$] 

Scenario 

Engineering 

compliance 

costs 

Producer 

surplus 

Consumer 

surplus 

Total 

surplus 

Fuel 

savings 

Net 

surplus 

Total ................................................................... 652.5 ¥162.3 ¥481.1 ¥643.4 136.6 ¥506.8 

The present value of net social costs 

of the proposed standards through 2038 

at a 3 percent discount rate, shown in 

Table XII.F–6, is estimated to be $5.5 

billion, taking the fuel savings into 

account. We also performed an analysis 

using a 7 percent social discount rate.137

Using that discount rate, the present 

value of the net social costs through 

2038 is estimated to be $3.5 billion, 

including the fuel savings. 

TABLE XII.F–6.—ESTIMATED NET SOCIAL COSTS THROUGH 2038 BY STAKEHOLDER

[2005$, $million] 

Market 

Total 

change in 

surplus 

Percentage 

change in 

total surplus 

Fuel 

savings 

Net change 

in surplus 

Net Present Value 3% 

Marine SI: 

Engine Manufacturers .............................................................................................. ¥$354.4 11 .................... ¥$354.4 

Equipment Manufacturers ........................................................................................ ¥688.8 22 .................... ¥688.8 

End User (Households) ............................................................................................ ¥2,058.8 66 $1,831.3 ¥227.5 

Subtotal ..................................................................................................................... ¥3,102.0 .................... 1,831.3 ¥1,270.7 

Small SI: 

Engine Manufacturers .............................................................................................. ¥275.0 4 .................... ¥275.0 

Equipment Manufacturers ........................................................................................ ¥1,171.8 17 .................... ¥1,171.8 

End User (Households) ............................................................................................ ¥5,333.4 79 2,524.8 ¥2,808.6 

Subtotal ............................................................................................................. ¥6,780.2 .................... 2,524.8 ¥4,255.4 

Total ........................................................................................................... ¥9,882.2 .................... 4,356.1 ¥5,526.1 

Net Present Value 7% 

Marine SI: 

Engine Manufacturers .............................................................................................. ¥216.4 11 .................... ¥216.4 

Equipment Manufacturers ........................................................................................ ¥417.6 22 .................... ¥417.6 

End User (Households) ............................................................................................ ¥1,259.5 66 937.1 ¥322.8 

Subtotal ............................................................................................................. ¥1,893.8 .................... 937.1 956.8 

Small SI: 

Engine Manufacturers .............................................................................................. ¥157.8 4 .................... 157.8 

Equipment Manufacturers ........................................................................................ ¥680.4 17 1,354.4 680.4 

End User (Households) ............................................................................................ ¥3,062.1 79 1,354.4 1,707.7 

Subtotal ............................................................................................................. ¥3,900.3 .................... .................... ....................

Total ........................................................................................................... ¥5,794.2 .................... 2,291.5 ¥3,502.6 

(7) What Are the Significant Limitations 

of the Economic Impact Analysis? 

Every economic impact analysis 

examining the market and social welfare 

impacts of a regulatory program is 

limited to some extent by limitations in 

model capabilities, deficiencies in the 

economic literatures with respect to 

estimated values of key variables 

necessary to configure the model, and 

data gaps. In this EIA, there are three 

potential sources of uncertainty: (1) 

Uncertainty resulting from the way the 

EIM is designed, particularly from the 

use of a partial equilibrium model; (2) 

uncertainty resulting from the values for 

key model parameters, particularly the 

price elasticity of supply and demand; 

and (3) uncertainty resulting from the 

values for key model inputs, 

particularly baseline equilibrium price 

and quantities. 

Uncertainty associated with the 

economic impact model structure arises 

from the use of a partial equilibrium 

approach, the use of the national level 

of analysis, and the assumption of 

perfect competition. These features of 

the model mean it does not take into 

account impacts on secondary markets 

or the general economy, and it does not 


sroberts on PROD1PC70 with PROPOSALS
28240 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

consider regional impacts. The results 

may also be biased to the extent that 

firms have some control over market 

prices, which would result in the 

modeling over-estimating the impacts 

on producers of affected goods and 

services. 

The values used for the price 

elasticities of supply and demand are 

critical parameters in the EIM. The 

values of these parameters have an 

impact on both the estimated change in 

price and quantity produced expected 

as a result of compliance with the 

proposed standards and on how the 

burden of the social costs will be shared 

among producer and consumer groups. 

In selecting the values to use in the EIM 

it is important that they reflect the 

behavioral responses of the industries 

under analysis. 

Published estimates of price 

elasticities of supply and demand from 

the economic literature should be used 

whenever possible. Such estimates 

would be peer reviewed and generally 

constitute reasonable estimates for the 

industries in question. In this analysis, 

because we were unable to find 

published supply and demand 

elasticities for the Small SI and Marine 

SI markets, we estimated these 

parameters econometrically using the 

procedures described in Chapter 9 of the 

Draft RIA. 

The estimates on the supply elasticity 

reflect a production function approach 

using data at the industry level. This 

method was chosen because of 

limitations with the available data. We 

were not able to obtain firm-level or 

plant-level production data for 

companies that operate in the affected 

sectors. However, the use of aggregate 

industry level data may not be 

appropriate and may not be an accurate 

way to estimate the price elasticity of 

supply compared to firm-level or plantlevel data. This is because, at the 

aggregate industry level, the size of the 

data sample is limited to the time series 

of the available years and because 

aggregate industry data may not reveal 

each individual firm or plant 

production function (heterogeneity). 

There may be significant differences 

among the firms that may be hidden in 

the aggregate data but that may affect 

the estimated elasticity. In addition, the 

use of time series aggregate industry 

data may introduce time trend effects 

that are difficult to isolate and control. 

To address these concerns, EPA 

intends to investigate estimates for the 

price elasticity of supply for the affected 

industries for which published 

estimates are not available, using an 

alternative method and data inputs. 

This research program will use the 

cross-sectional data model at either the 

firm level or the plant level from the 

U.S. Census Bureau to estimate these 

elasticities. We plan to use the results of 

this research, provided the results are 

robust and they are available in time for 

the analysis for the final rule. 

Finally, uncertainty in measurement 

of data inputs can have an impact on the 

results of the analysis. This includes 

measurement of the baseline 

equilibrium prices and quantities and 

the estimation of future year sales. In 

addition, there may be uncertainty in 

how similar engines and equipment 

were combined into smaller groups to 

facilitate the analysis. There may also be 

uncertainty in the compliance cost 

estimations. 

To explore the effects of key sources 

of uncertainty, we performed a 

sensitivity analysis in which we 

examine the results of using alternative 

values for the price elasticity of supply 

and demand, alternative baseline prices 

for certain equipment markets, and 

alternative methods in compliance costs 

to shock the market. The results of these 

analyses are contained in Appendix 9H 

of the Draft RIA. 

Despite these uncertainties, we 

believe this economic impact analysis 

provides a reasonable estimate of the 

expected market impacts and social 

welfare costs of the proposed standards 

in future. Acknowledging benefits 

omissions and uncertainties, we present 

a best estimate of the social costs based 

on our interpretation of the best 

available scientific literature and 

methods supported by EPA’s Guidelines 

for Preparing Economic Analyses and 

the OAQPS Economic Analysis 

Resource Document. 

XIII. Public Participation 

We request comment on all aspects of 

this proposal. This section describes 

how you can participate in this process. 

In 2001 we published a proposed rule 

to adopt evaporative emission standards 

for marine vessels powered by sparkignition engines (67 FR 53050, August 

14, 2002). We are withdrawing that 

proposal and reissuing our proposal in 

this notice. We received several 

comments on that proposed rule and 

have attempted to take all those 

comments into account in this action. 

Commenters on the previous proposal 

who feel their concerns have not been 

addressed should send us updated 

comments expressing any remaining 

concerns. This proposal includes a 

variety of changes from the earlier 

proposal, mostly centered on testing 

methods and implementation dates. 

A hearing will be held on Tuesday, 

June 5, 2007 in Washington, DC. The 

hearing will start at 10 a.m. and 

continue until testimony is complete. 

See ADDRESSES above for location and 

phone information. 

Please notify the contact person listed 

above at least ten days before the 

hearing if you would like to present 

testimony at a public hearing. You 

should estimate the time you will need 

for your presentation and identify any 

needed audio/visual equipment. We 

suggest that you bring copies of your 

statement or other material for the EPA 

panel and the audience. It would also be 

helpful if you send us a copy of your 

statement or other materials before the 

hearing. 

We will conduct the hearing 

informally so technical rules of 

evidence will not apply. We will 

arrange for a written transcript of the 

hearing and keep the official record of 

the hearing open for 30 days to allow 

you to submit supplementary 

information. You may make 

arrangements to purchase copies of the 

transcript directly with the court 

reporter. 

The comment period for this rule will 

end on August 3, 2007. 

XIV. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review 

Under section 3(f)(1) of Executive 

Order (EO) 12866 (58 FR 51735, October 

4, 1993), this action is an ‘‘economically 

significant regulatory action’’ because it 

is likely to have an annual effect on the 

economy of $100 million or more. 

Accordingly, EPA submitted this action 

to the Office of Management and Budget 

(OMB) for review under EO 12866 and 

any changes made in response to OMB 

recommendations have been 

documented in the docket for this 

action. 

In addition, EPA prepared an analysis 

of the potential costs and benefits 

associated with this action. This 

analysis is contained in the Draft 

Regulatory Impact Analysis, which is 

available in the docket for this action 

and is summarized in Section XII. 

B. Paperwork Reduction Act 

The information collection 

requirements in this proposed rule have 

been submitted for approval to the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act, 44 U.S.C. 3501 et seq. The 

Information Collection Request (ICR) 

document prepared by EPA has been 

assigned EPA ICR number 2251.01. 

The Agency proposes to collect 

information to ensure compliance with 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28241 

the provisions in this rule. This 

includes a variety of requirements, both 

for engine manufacturers, equipment 

manufacturers and manufacturers of 

fuel system components. Section 208(a) 

of the Clean Air Act requires that 

manufacturers provide information the 

Administrator may reasonably require to 

determine compliance with the 

regulations; submission of the 

information is therefore mandatory. We 

will consider confidential all 

information meeting the requirements of 

section 208(c) of the Clean Air Act. 

As shown in Table XIV–1, the total 

annual burden associated with this 

proposal is about 131,000 hours and $18 

million based on a projection of 1,100 

respondents. The estimated burden for 

engine manufacturers is a total estimate 

for both new and existing reporting 

requirements. Most information 

collection is based on annual reporting. 

Burden means the total time, effort, or 

financial resources expended by persons 

to generate, maintain, retain, or disclose 

or provide information to or for a 

Federal agency. This includes the time 

needed to review instructions; develop, 

acquire, install, and utilize technology 

and systems for the purposes of 

collecting, validating, and verifying 

information, processing and 

maintaining information, and disclosing 

and providing information; adjust the 

existing ways to comply with any 

previously applicable instructions and 

requirements; train personnel to be able 

to respond to a collection of 

information; search data sources; 

complete and review the collection of 

information; and transmit or otherwise 

disclose the information. 

TABLE XIV–1.—ESTIMATED BURDEN FOR REPORTING AND RECORDKEEPING REQUIREMENTS

Industry sector Number of respondents 

Average burden 

per respondent 

Annual burden 

hours 

Annualized capital costs Annual labor 

costs 

Annual operation 

and maintenance 

costs 

Small SI engine manufacturers ............................ 58 885 51,301 $5,529,000 $2,065,643 $3,100,306 

Small SI equipment & fuel 

system component mfr. 

(evaporative) ................. 623 1,568 62,715 0 497,631 624,066 

Marine SI engine manufacturers ........................ 40 19 11,605 0 2,677,821 8,299,569 

Marine SI equipment & 

fuel system component 

mfr. (evaporative) ......... 380 14 5,241 0 224,871 383,024 

Total .......................... 1,101 2,486 130,862 5,529,000 5,465,966 12,406,965 

...................................... Total Annual Cost = 18,012,246 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to a collection of information 

unless it displays a currently valid OMB 

control number. The OMB control 

numbers for EPA’s regulations in 40 

CFR are listed in 40 CFR part 9. 

To comment on the Agency’s need for 

this information, the accuracy of the 

provided burden estimates, and any 

suggested methods for minimizing 

respondent burden, including the use of 

automated collection techniques, EPA 

has established a public docket for this 

rule, which includes this ICR, under 

Docket ID number EPA–HQ–OAR–

2004–0008. Submit any comments 

related to the ICR for this proposed rule 

to EPA and OMB. See ADDRESSES

section at the beginning of this notice 

for where to submit comments to EPA. 

Send comments to OMB at the Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 725 

17th Street, NW., Washington, DC 

20503, Attention: Desk Office for EPA. 

Since OMB is required to make a 

decision concerning the ICR between 30 

and 60 days after May 18, 2007, a 

comment to OMB is best assured of 

having its full effect if OMB receives it 

by June 18, 2007. The final rule will 

respond to any OMB or public 

comments on the information collection 

requirements contained in this proposal. 

C. Regulatory Flexibility Act 

(1) Overview 

The Regulatory Flexibility Act (RFA) 

generally requires an agency to prepare 

a regulatory flexibility analysis of any 

rule subject to notice and comment 

rulemaking requirements under the 

Administrative Procedure Act or any 

other statute unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. Small entities 

include small businesses, small 

organizations, and small governmental 

jurisdictions. 

For purposes of assessing the impacts 

of this action on small entities, small 

entity is defined as: (1) A small business 

as defined by the Small Business 

Administration’s (SBA) regulations at 13 

CFR 121.201 (see Table XIV–2, below); 

(2) a small governmental jurisdiction 

that is a government of a city, county, 

town, school district or special district 

with a population of smaller than 

50,000; and (3) a small organization that 

is any not-for-profit enterprise which is 

independently owned and operated and 

is not dominant in its field. The 

following table provides an overview of 

the primary SBA small business 

categories potentially affected by this 

regulation. 

TABLE XIV–2.—SMALL BUSINESS DEFINITIONS FOR ENTITIES AFFECTED BY THIS RULE

Industry NAICSa codes 

Threshold definitions for 

small business b

(employees) 

Small SI and Marine SI Engine Manufacturers ....................................................................................................... 333618 1,000 


sroberts on PROD1PC70 with PROPOSALS
28242 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE XIV–2.—SMALL BUSINESS DEFINITIONS FOR ENTITIES AFFECTED BY THIS RULE—Continued 

Industry NAICSa codes 

Threshold definitions for 

small business b

(employees) 

Equipment Manufacturers: 

Farm Machinery ................................................................................................................................................ 333111 500 

Lawn and Garden ............................................................................................................................................. 333112 500 

Construction ...................................................................................................................................................... 333120 750 

Sawmill and Woodworking ............................................................................................................................... 333210 500 

Pumps ............................................................................................................................................................... 333911 500 

Air and Gas Compressors ................................................................................................................................ 333912 500 

Generators ........................................................................................................................................................ 335312 1,000 

Boat Builders ........................................................................................................................................................... 336612 500 

Fuel Tank Manufacturers: 

Other Plastic Products ...................................................................................................................................... 326199 500 

Metal Stamping ................................................................................................................................................. 332116 500 

Metal Tank (Heavy Gauge) .............................................................................................................................. 332420 500 

Fuel Line Manufacturers: 

Rubber and Plastic Fuel Lines ......................................................................................................................... 326220 500 

a North American Industry Classification System 

bAccording to SBA’s regulations (13 CFR 121), businesses with no more than the listed number of employees are considered ‘‘small entities’’

for RFA purposes. 

Pursuant to section 603 of the RFA, 

EPA prepared an initial regulatory 

flexibility analysis (IRFA) that examines 

the impact of the proposed rule on small 

entities along with regulatory 

alternatives that could reduce that 

impact. The IRFA, as summarized 

below, is available for review in the 

docket and Chapter 10 of the Draft RIA. 

(2) Background 

Air pollution is a serious threat to the 

health and well-being of millions of 

Americans and imposes a large burden 

on the U.S. economy. Ground-level 

ozone and carbon monoxide are linked 

to potentially serious respiratory health 

problems, especially respiratory effects 

and environmental degradation, 

including visibility impairment in and 

around our national parks. (Section II of 

this preamble and Chapter 2 of the Draft 

RIA for this rule describe these 

pollutants and their health effects.) Over 

the past quarter century, state and 

federal representatives have established 

emission control programs that 

significantly reduce emissions from 

individual sources. Many of these 

sources now pollute at only a small 

fraction of their pre-control rates. 

This proposal includes standards that 

would require manufacturers to 

substantially reduce exhaust emissions 

and evaporative emissions from Marine 

SI engines and vessels and from Small 

SI engines and equipment. We are 

proposing the standards under section 

213(a)(3) of the CAA which directs EPA 

to set emission standards that ‘‘achieve 

the greatest degree of emission 

reduction achievable through the 

application of technology’’ giving 

appropriate consideration to cost, noise, 

energy, safety, and lead time. In 

addition to the general authority to 

regulate nonroad engines under the 

CAA, Section 428 of 2004 Consolidated 

Appropriations Act requires EPA to 

propose and finalize new regulations for 

nonroad spark-ignition engines below 

50 horsepower. 

(3) Summary of Regulated Small Entities 

The standards being proposed for 

Small SI engines and equipment will 

affect manufacturers of both handheld 

equipment and nonhandheld 

equipment. Based on EPA certification 

records, the Small SI nonhandheld 

engine industry is made up primarily of 

large manufacturers including Briggs 

and Stratton, Tecumseh, Honda, Kohler 

and Kawasaki. The Small SI handheld 

engine industry is also made up 

primarily of large manufacturers 

including Electrolux Home Products, 

MTD, Homelite, Stihl and Husqvarna. 

EPA has identified 10 Small SI engine 

manufacturers that qualify as a small 

business under SBA definitions. Half of 

these small manufacturers certify 

gasoline engines and the other half 

certify liquefied petroleum gas (LPG) 

engines. 

The Small SI equipment market is 

dominated by a few large businesses 

including Toro, John Deere, MTD, 

Briggs and Stratton, and Electrolux 

Home Products. While the Small SI 

equipment market may be dominated by 

just a handful of companies, there are 

many small businesses in the market; 

however these small businesses account 

for less than 10 percent of equipment 

sales. We have identified over three 

hundred equipment manufacturers that 

qualify as a small business under the 

SBA definitions. More than 90 percent 

of these small companies manufacture 

fewer than 5,000 pieces of equipment 

per year. The median employment level 

is 65 employees for nonhandheld 

equipment manufacturers and 200 

employees for handheld equipment 

manufacturers. The median sales 

revenue is approximately $9 million for 

nonhandheld equipment manufacturers 

and $20 million for handheld 

equipment manufacturers. 

EPA has identified 25 manufacturers 

that produce fuel tanks for the Small SI 

equipment market that meet the SBA 

definition of a small business. Fuel tank 

manufacturers rely on three different 

processes for manufacturing plastic 

tanks—rotational molding, blow 

molding and injection molding. EPA has 

identified small business fuel tank 

manufacturers using the rotational 

molding and blow molding processes 

but has not identified any small 

business manufacturers using injection 

molding. In addition, EPA has identified 

two manufacturers that produce fuel 

lines for the Small SI equipment market 

that meet the SBA definition of a small 

business. The majority of fuel line in the 

Small SI market is made by large 

manufacturers including Avon 

Automotive and Dana Corporation. 

The standards being proposed for 

Marine SI engines and vessels will affect 

manufacturers in the OB/PWC market 

and the SD/I market. Based on EPA 

certification records, the OB/PWC 

market is made up primarily of large 

manufacturers including, Brunswick 

(Mercury), Bombardier Recreational 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28243 

Products, Yamaha, Honda, Kawasaki, 

Polaris, Briggs & Stratton, Nissan, and 

Tohatsu. One company that qualifies as 

a small business under the SBA 

definitions has certified their product as 

a PWC. This company is Surfango who 

makes a small number of motorized 

surfboards. 

The SD/I market is made up mostly of 

small businesses; however, these 

businesses account for less than 20 

percent of engine sales. Two large 

manufacturers, Brunswick (Mercruiser) 

and Volvo Penta, dominate the market. 

We have identified 28 small entities 

manufacturing SD/I marine engines. The 

third largest company is Indmar, which 

has much fewer than the SBA threshold 

of 1,000 employees. Based on sales 

estimates, number of employees 

reported by Thomas Register, and 

typical engine prices, we estimate that 

the average revenue for the larger small 

SD/I manufacturers is about $50–60 

million per year. However, the vast 

majority of the SD/I engine 

manufacturers produce low production 

volumes of engines and typically have 

fewer than 50 employees. 

The two largest boat building 

companies are Brunswick and Genmar. 

Brunswick owns approximately 25 boat 

companies and Genmar owns 

approximately 12 boat companies. 

Based on a manufacturer list maintained 

by the U.S. Coast Guard, there are over 

1,600 boat builders in the United States. 

We estimate that, based on 

manufacturer identification codes, more 

than 1,000 of these companies produce 

boats using gasoline marine engines. 

According to the National Marine 

Manufacturers Association (NMMA), 

most of these boat builders are small 

businesses. These small businesses 

range from individuals building one 

boat per year to businesses near the SBA 

small business threshold of 500 

employees. 

We have identified 15 marine fuel 

tank manufacturers in the United States 

that qualify as small businesses under 

the SBA definition. These 

manufacturers include five rotational 

molders, three blow molders, six 

aluminum fuel tank manufacturers, and 

one specialty fuel tank manufacturer. 

The small rotational molders average 

fewer than 50 employees while the 

small blow-molders average over 100 

employees. Moeller qualifies as a large 

business because they are owned by 

Moore; however, their rotational 

molding business is a small part of the 

company and operates similar to the 

smaller businesses. Other blow-molders 

are in the same situation such as 

Attwood which is owned by Brunswick. 

We have only identified one small 

fuel line manufacturer that produces for 

the Marine SI market. Novaflex 

primarily distributes fuel lines made by 

other manufacturers but does produce 

its own filler necks. Because we expect 

vessel manufacturers will design their 

fuel systems such that there will not be 

standing liquid fuel in the fill neck (and 

therefore the proposed low-permeation 

fuel line requirements will not apply to 

the fill neck), we have not included this 

manufacturer in our analysis. The 

majority of fuel line in the Marine SI 

market is made by large manufacturers 

including Goodyear and ParkerHannifin. 

To gauge the impact of the proposed 

standards on small businesses, EPA 

employed a cost-to-sales ratio test to 

estimate the number of small businesses 

that would be impacted by less than one 

percent, between one and three percent, 

and above three percent. For this 

analysis, EPA assumed that the costs of 

complying with the proposed standards 

are completely absorbed by the 

regulated entity. Overall, EPA projects 

that 60 small businesses will be 

impacted by one to three percent, 18 

small businesses will be impacted by 

over three percent, and the remaining 

companies (over 1,000 small businesses) 

will be impacted by less than one 

percent. Table XIV–3 summarizes the 

impacts on small businesses from the 

proposed exhaust and evaporative 

emission standards for Small SI engines 

and equipment and Marine SI engines 

and vessels. A more detailed description 

of the inputs used for each affected 

industry sector and the methodology 

used to develop the estimated impact on 

small businesses in each industry sector 

is included in the IRFA as presented in 

Chapter 10 of the Draft RIA for this 

rulemaking. 

TABLE XIV–3.—SUMMARY OF IMPACTS ON SMALL BUSINESSES

Industry sector 0–1 percent 1–3 percent 

> 3 percent 

Manufacturers of Marine OB/PWC engines .................................................................................. 1 ................................... 0 0 

Manufacturers of Marine SD/I engines < 373 kW ......................................................................... 4 ................................... 5 0 

Manufacturers of Marine SD/I engines ≥ 373 kW (high-performance) ......................................... 2 ................................... 17 0 

Boat Builders ................................................................................................................................. >1,000 ......................... 0 0 

Manufacturers of Fuel Lines and Fuel Tanks for Marine SI Vessels ........................................... 15 ................................. 0 0 

Small SI engines and equipment .................................................................................................. 314 ............................... 38 18 

Manufacturers of Fuel Lines and Fuel Tanks for Small SI Applications ....................................... 27 ................................. 0 0 

Total ........................................................................................................................................ 363 + >1,000 boat 

builders.

60 18 

(4) Potential Reporting, Recordkeeping, 

and Compliance 

For any emission control program, 

EPA must have assurances that the 

regulated products will meet the 

standards. Historically, EPA’s programs 

for Small SI engines and Marine SI 

engines have included provisions 

requiring that engine manufacturers be 

responsible for providing these 

assurances. The program that EPA is 

considering for manufacturers subject to 

this proposal may include testing, 

reporting, and recordkeeping 

requirements for manufacturers of 

engines, equipment, vessels, and fuel 

system components including fuel 

tanks, fuel lines, and fuel caps. 

For Small SI engine manufacturers 

and OB/PWC engine manufacturers, 

EPA is proposing to continue the same 

reporting, recordkeeping, and 

compliance requirements prescribed in 

the current regulations. For SD/I engine 

manufacturers, which are not currently 

subject to EPA regulation, EPA is 

proposing to apply similar reporting, 

recordkeeping, and compliance 

requirements to those for OB/PWC 

engine manufacturers. Testing 

requirements for engine manufacturers 

would include certification emission 

(including deterioration factor) testing 

and production-line testing. Reporting 

requirements would include emission 

test data and technical data on the 

engines. Manufacturers would also need 

to keep records of this information. 


sroberts on PROD1PC70 with PROPOSALS
28244 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Because of the proposed evaporative 

emission requirements, there would be 

new reporting, recordkeeping and 

compliance requirements for Small SI 

equipment manufacturers. Small SI 

equipment manufacturers participating 

in the proposed transition program 

would also be subject to reporting, 

recordkeeping and compliance 

requirements. There may also be new 

reporting, recordkeeping and 

compliance requirements for fuel tank 

manufacturers, fuel line manufacturers, 

fuel cap manufacturers and marine 

vessel manufacturers. Testing 

requirements for these manufacturers 

could include certification emission 

testing. Reporting requirements could 

include emission test data and technical 

data on the designs. Manufacturers 

would also need to keep records of this 

information. 

(5) Relevant Federal Rules 

For Small SI engines and equipment, 

the primary federal rules that are related 

to the rule under consideration are 

EPA’s Phase 1 rule for Small SI engines 

(60 FR 34582, July 3, 1995), EPA’s Phase 

2 rule for Small SI nonhandheld engines 

(64 FR 15208, March 30, 2004), and 

EPA’s Phase 2 rule for Small SI 

handheld engines (65 FR 24268, April 

25, 2000). For Marine SI engines and 

vessels, the primary federal rule that is 

related to the rule under consideration 

is EPA’s October 1996 final rule (61 FR 

52088, October 4, 1996). 

Three other federal agencies have 

regulations that relate to the equipment 

and vessels under consideration. These 

agencies are the Consumer Product 

Safety Commission (CPSC), United 

States Department of Agriculture 

(USDA), and the United States Coast 

Guard (USCG). CPSC has safety 

requirements that apply to walk-behind 

lawnmowers to protect operators of 

such equipment. USDA has design 

requirements intended to reduce the 

potential fire threat of Small SI 

equipment. The USCG has safety 

regulations for marine engine and fuel 

system designs. The USCG safety 

regulations include standards for 

exhaust system temperature, fuel tank 

durability and fuel line designs, 

including specific requirements related 

to system survivability in a fire. 

Manufacturers will need to consider 

both EPA and other federal standards 

when certifying their products. 

(6) Significant Alternatives 

For Small SI engines and equipment, 

EPA looked at the existing Phase 2 rule 

for small engines, as well as other recent 

EPA rules, to provide potential 

flexibilities which might be offered with 

the Phase 3 standards. For engine 

manufacturers, the potential flexibilities 

considered included extra time before 

the Phase 3 requirements would apply 

and reduced testing burden, such as 

assigned deterioration factors for 

certification purposes and exemption 

from the production-line testing 

requirements. For equipment 

manufacturers, the potential flexibilities 

considered included extra time before 

having to use Phase 3 engines and the 

ability to request extra time for a variety 

of reasons, including technical 

hardship, economic hardship, and 

unusual circumstances. For fuel tank 

and fuel line manufacturers, EPA has 

tried to develop the timing of the 

proposal to accommodate all 

manufacturers, including small 

businesses. We also considered offering 

manufacturers the ability to request 

extra time for a variety of reasons, 

including economic hardship and 

unusual circumstances. 

For Marine SI engines and vessels, 

EPA previously convened two Small 

Business Advocacy Review Panel 

(SBAR Panel, or the Panel) to obtain 

advice and recommendation of 

representatives of the small entities that 

potentially would be subject to the 

requirements under consideration at the 

time. The Panels took place in 1999 and 

2001 and addressed small business 

issues related to exhaust and 

evaporative emission standards similar 

to those described in this proposal. 

Nineteen small entities that sell in the 

Marine SI engine and vessel sectors 

participated as Small Entity 

Representatives (SERs) in the two 

previous Panels. 

On June 7, 1999, we convened a 

SBAR Panel to address small entity 

issues related to anticipated exhaust 

emission standards for SD/I marine 

engines. As part of that Panel, we 

considered a range of regulatory 

options, including standards that would 

be expected to require the use of 

catalytic control. With input from the 

SERs, the 1999 Panel drafted a report 

providing findings and 

recommendations to us on how to 

reduce potential burden on small 

businesses that may occur as a result of 

this proposed rule. Small business 

flexibility approaches recommended by 

the 1999 Panel included the following: 

• Broad definition of engine families 

for certification. 

• Minimizing compliance testing 

requirements. 

• Design-based certification (as an 

option to emission testing). 

• Use of emission credits. 

• Delay of the implementation date of 

the standards. 

• Hardship provisions (for economic 

reasons or under unusual 

circumstances). 

• Limited temporary exemptions for 

small boat builders. 

On May 3, 2001, we convened a SBAR 

Panel to address potential small entity 

issues for a number of emission 

programs under consideration. One of 

the programs was evaporative emission 

standards for boats using gasoline 

engines. With input from SERs, the 2001 

Panel drafted a report providing 

findings and recommendations to us on 

how to reduce potential burden on 

small businesses that may occur as a 

result of this proposed rule. The 

flexibility approaches recommended by 

the 2001 Panel included the following: 

• Broad definition of emission 

families for certification. 

• Design-based certification (as an 

option to emission testing). 

• Use of emission credits. 

• Delay of the implementation date of 

the standards. 

• Hardship provisions (for economic 

reasons or under unusual 

circumstances). 

In the time since the 1999 and 2001 

SBAR Panels were completed, a great 

deal of development has been 

performed on exhaust and evaporative 

emission control technology. We 

considered the flexibilities 

recommended by the 1999 and 2001 

Panels (as noted above) in the context of 

this new information. 

(7) Panel Process and Panel Outreach 

As required by section 609(b) of the 

RFA, as amended by SBREFA, EPA also 

has conducted outreach to small entities 

and convened a SBAR Panel to obtain 

advice and recommendation of 

representatives of the small entities that 

potentially would be subject to the 

requirements of this rule. On August 17, 

2006 EPA’s Small Business Advocacy 

Chairperson convened a Panel under 

section 609(b) of the RFA. In addition to 

the Chair, the Panel consisted of the 

Division Director the Assessment and 

Standards Division within EPA’s Office 

of Air and Radiation, the Chief Counsel 

for Advocacy of the Small Business 

Administration, and the Administrator 

of the Office of Information and 

Regulatory Affairs within the Office of 

Management and Budget. 

As part of the SBAR Panel process we 

conducted outreach with 

representatives from 25 various small 

entities that would be affected by this 

rule. The SERs included engine, 

equipment, fuel tank and fuel line 

manufacturers for the Small SI market 

and engine, vessel, fuel tank and fuel 

line manufacturers for the Marine SI 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28245 

market. We met with these SERs to 

discuss the potential rulemaking 

approaches and potential options to 

decrease the impact of the rulemaking 

on their industries. We distributed 

outreach materials to the SERs; these 

materials included background on the 

rulemaking, possible regulatory 

approaches, and possible rulemaking 

alternatives (as noted earlier). The Panel 

met with SERs from the industries that 

will be impacted directly by this rule on 

September 12, 2006 to discuss the 

outreach materials and receive feedback 

on the approaches and alternatives 

detailed in the outreach packet. (EPA 

also met with SERs on July 11, 2006 for 

an initial outreach meeting.) The Panel 

received written comments from the 

SERs following the meeting in response 

to discussions at the meeting and the 

questions posed to the SERs by the 

Agency. The SERs were specifically 

asked to provide comment on regulatory 

alternatives that could help to minimize 

the rule’s impact on small businesses. 

(8) Panel Recommendations for Small 

Business Flexibilities 

The Panel recommended that EPA 

consider and seek comment on a wide 

range of regulatory alternatives to 

mitigate the impacts of the rulemaking 

on small businesses, including those 

flexibility options described below. The 

following section summarizes the SBAR 

Panel recommendations. EPA has 

proposed provisions consistent with 

each of the Panel’s recommendations. 

Consistent with the RFA/SBREFA 

requirements, the Panel evaluated the 

assembled materials and small-entity 

comments on issues related to elements 

of the IRFA. A copy of the Final Panel 

Report (including all comments 

received from SERs in response to the 

Panel’s outreach meeting (Appendix D) 

as well as summaries of both outreach 

meetings that were held with the SERs 

(Appendices B and C)) is included in 

the docket for this proposed rule. A 

summary of the Panel recommendations 

is detailed below. As noted above, this 

proposal includes proposed provisions 

for each of the Panel recommendations. 

(a) Manufacturer Flexibilities for Small 

SI Engine Exhaust Standards 

The Panel’s recommendations for the 

Phase 3 exhaust emission standards for 

nonhandheld engines are summarized 

below. A complete discussion of the 

proposed small business provisions in 

response to each of the Panel 

recommendations noted below can be 

found in Section V.F of this preamble. 

Additional Lead Time for 

Nonhandheld Engine Manufacturers—

The Panel recommended that EPA 

propose two additional years of lead 

time before the Phase 3 standards take 

effect for small business engine 

manufacturers. For Class I engines, the 

effective date for small business engine 

manufacturers would be 2014. For Class 

II engines, the effective date for small 

business engine manufacturers would 

be 2013. 

Assigned Deterioration Factors—The 

Panel recommended EPA propose that 

small business engine manufacturers be 

allowed the option to use EPAdeveloped assigned deterioration factors 

in demonstrating compliance with the 

Phase 3 exhaust emission standards. 

Production-Line Testing Exemption—

The Panel recommended EPA propose 

that small business engine 

manufacturers be exempted from the 

production line testing requirements for 

the Phase 3 exhaust emission standards. 

Broader Definition of Engine Family—

The Panel recommended that EPA 

propose allowing small business engine 

manufacturers to group all of their 

Small SI engines into a single engine 

family for certification by engine class 

and useful life category, subject to good 

engineering judgment. 

Simplified Engine Certification for 

Equipment Manufacturers—Generally, 

it has been engine manufacturers who 

certify with EPA for the exhaust 

emission standards since the standards 

are engine-based standards. However, a 

number of equipment manufacturers, 

especially those that make low-volume 

models, believe it may be necessary for 

equipment manufacturers to certify their 

own unique engine/muffler designs 

with EPA (but using the same catalyst 

substrate already used in a muffler 

certified by the engine manufacturer). 

The Panel recommended that EPA 

propose a simplified engine certification 

process for small business equipment 

manufacturers in such situations. Under 

such a simplified certification process, 

the equipment manufacturer would 

need to demonstrate that it is using the 

same catalyst substrate as the approved 

engine manufacturer’s family, provide 

information on the differences between 

their engine/exhaust system and the 

engine/exhaust system certified by the 

engine manufacturer, and explain why 

the deterioration data generated by the 

engine manufacturer would be 

representative for the equipment 

manufacturer’s configuration. 

Additional Lead Time for Small SI 

Equipment Manufacturers—The Panel 

recommended that EPA propose a 

transition program that would allow 

small business equipment 

manufacturers to continue using Phase 

2 engine designs (i.e., engines meeting 

the Phase 2 exhaust emission standards) 

during the first two years that the Phase 

3 standards take effect. (For equipment 

using Class I engines, the provision 

would apply in 2012 and 2013. For 

equipment using Class II engines, the 

provision would apply in 2011 and 

2012.) The Panel also recommended 

that EPA propose to allow small 

business equipment manufacturers to 

use Phase 3 engines without the catalyst 

during this initial two-year period 

provided the engine manufacturer has 

demonstrated that the engine without 

the catalyst would comply with the 

Phase 2 exhaust emission standards and 

labels it appropriately. 

Eligibility for the Small Business 

Flexibilities—For purposes of 

determining which engine and 

equipment manufacturers are eligible 

for the small business flexibilities 

described above, EPA is proposing 

criteria based on a production cut-off of 

10,000 nonhandheld engines per year 

for engine manufacturers and 5,000 

pieces of nonhandheld equipment per 

year for equipment manufacturers. The 

Panel recommended that EPA propose 

to allow engine and equipment 

manufacturers which exceed the 

production cut-off levels noted above 

but meet the SBA definitions for a small 

business (i.e., fewer than 1,000 

employees for engine manufacturers or 

fewer than 500 employees for most 

types of equipment manufacturers) to 

request treatment as a small business. 

(b) Manufacturer Flexibilities for SD/I 

Marine Exhaust Standards 

The Panel’s recommendations for the 

exhaust emission standards for SD/I 

marine engines are summarized below. 

A complete discussion of the proposed 

small business provisions in response to 

each of the Panel recommendations 

noted below can be found in Section 

III.F of this preamble. 

Additional Lead Time for SD/I Engine 

Manufacturers—The Panel 

recommended that EPA propose an 

implementation date of 2011 for SD/I 

engines below 373 kW produced by 

small business marine engine 

manufacturers and an implementation 

date of 2013 for small business 

manufacturers of high performance SD/ 

I marine engines (at or above 373 kW). 

Based on the proposed 2009 

implementation date for the remaining 

SD/I engine manufacturers (i.e., the 

large businesses), these dates would 

provide small business SD/I engine 

manufacturers with two years additional 

lead time for SD/I engines below 373 

kW and four years additional lead time 

for SD/I engines at or above 373 kW. 

Exhaust Emission ABT—EPA is 

proposing an averaging, banking and 


sroberts on PROD1PC70 with PROPOSALS
28246 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

trading (ABT) program for the SD/I 

engine standards. Because EPA is 

proposing an ABT program for SD/I 

engines, the Panel recommended that 

EPA request comment on the 

desirability of credit trading between 

high performance and other SD/I marine 

engines and the impact it could have on 

small business. 

Early Credit Generation for ABT—

EPA is proposing an early banking 

program for SD/I marine engines. Under 

the early banking provisions, 

manufacturers can generate ‘‘bonus’’

credits for the early introduction of 

engines meeting the proposed emission 

standards. The Panel supports EPA 

proposing an early banking program and 

believes that bonus credits will provide 

greater incentive for more small 

business engine manufacturers to 

introduce advanced technology earlier 

than would otherwise occur. 

Assigned Emission Rates for High 

Performance SD/I Engines—The Panel 

recommended that EPA propose to 

allow the use of default emission rates 

that could be used by small business 

high performance SD/I engine 

manufacturers as part of their 

certification. Based on currently 

available test data, the proposed default 

baseline emission levels for high 

performance engines are 30 g/kW-hr 

HC+NOX and 350 g/kW-hr CO. 

Alternative Standards for High 

Performance SD/I Engines—SERs 

expressed concern that that catalysts 

have not been demonstrated on high 

performance engines and that they may 

not be practicable for this application. 

While EPA is proposing a standard 

based on the use of catalysts, EPA is 

requesting comment on a standard for 

high performance SD/I marine engines 

that could be met without the use of a 

catalyst. (Based on available data, levels 

of 16 g/kW-hr HC+NOX and 350 g/kWhr CO were discussed with the SERs). 

The Panel recommended EPA request 

comment on a non-catalyst based 

standard for high performance marine 

engines. 

EPA is proposing to not apply the notto-exceed (NTE) standards to high 

performance SD/I engines. The Panel 

supports excluding high performance 

SD/I engines from NTE requirements. 

Broad Engine Families for High 

Performance SD/I Engines—The Panel 

recommended that EPA propose 

allowing small businesses to group all of 

their high performance SD/I engines 

into a single engine family for 

certification, subject to good engineering 

judgment. 

Simplified Test Procedures for High 

Performance SD/I Engines—For high 

performance SD/I engines, it may be 

difficult to hold the engine at idle or 

high power within the tolerances 

currently specified in existing EPA test 

procedures. The Panel recommended 

that EPA propose less restrictive 

specifications and tolerances for small 

businesses testing high performance SD/ 

I engines, which would allow the use of 

portable emission measurement 

equipment. 

Eligibility for the Small Business 

Flexibilities—For purposes of 

determining which engine 

manufacturers are eligible for the small 

business flexibilities described above for 

SD/I engine manufacturers, EPA is 

proposing criteria based on a production 

cut-off of 5,000 SD/I engines per year. 

The Panel recommended EPA propose 

to allow engine manufacturers that 

exceed the production cut-off level 

noted above but meet the SBA 

definitions for a small business (i.e., 

fewer than 1,000 employees for engine 

manufacturers), to request treatment as 

a small business. 

(c) Manufacturer Flexibilities for Small 

SI and Marine SI Evaporative Standards 

The Panel’s recommendations for the 

evaporative emission standards for 

Small SI engines and equipment and 

SD/I marine engines and vessels are 

summarized below. SERs raised many of 

the same issues regarding evaporative 

emission standards for both Small SI 

and marine applications. In fact, many 

of the SERs supply fuel system 

components to both industries. For 

these reasons, the Panel’s 

recommendations on regulatory 

flexibility discussed below would apply 

to Small SI equipment and to SD/I 

marine vessels except where noted. 

Because the majority of fuel tanks 

produced for the Small SI equipment 

and the SD/I marine vessel market are 

made by small businesses, the details of 

the evaporative emissions program 

under consideration and the flexibility 

provisions shared by EPA with the SERs 

were noted as being available to all fuel 

tank manufacturers. Therefore, the 

Panel recommendations on regulatory 

flexibility for fuel tank manufacturers 

discussed below are being proposed to 

apply to all fuel tank manufacturers. A 

complete discussion of the proposed 

provisions in response to each of the 

Panel recommendations noted below 

can be found in Section VI.G of this 

preamble. 

Consideration of Appropriate Lead 

Time—The Panel recommended that 

EPA propose to implement the fuel tank 

permeation standards in 2011 with an 

additional year (2012) for rotationally 

molded marine fuel tanks. The extra 

year for rotationally molded marine 

tanks would give manufacturers time to 

address issues that are specific to the 

marine industry. 

With regard to diurnal emissions 

control, SERs commented that they 

would like additional time to install 

carbon canisters in their vessels because 

of deck and hull changes that might be 

needed to accommodate the carbon 

canisters. SERs commented that they 

would consider asking EPA to allow the 

use of low-permeation fuel lines prior to 

2009 as a method of creating an 

emission neutral flexibility option for 

providing extra time for canisters. The 

Panel recommended that EPA continue 

discussions with the marine industry 

and request comment on 

environmentally neutral approaches to 

provide more flexibility in meeting the 

potential diurnal emission standards. 

Fuel Tank ABT and Early Incentive 

Program—The Panel recommended that 

EPA propose an ABT program for fuel 

tank permeation. The Panel also 

recommended that EPA request 

comment on including service tanks 

(i.e., replacement tanks) in the ABT 

program. Finally, the Panel 

recommended that EPA request 

comment on an early incentive program 

for tank permeation. 

Broad Definition of Evaporative 

Emission Family for Fuel Tanks—The 

Panel recommended that EPA propose a 

broad emission family definition for 

Small SI fuel tanks and for Marine SI 

fuel tanks similar to that in the 

regulations for recreational vehicles. 

Under the recreation vehicle 

evaporative emission regulations, EPA 

specifies that fuel tank permeation 

emission families be based on type of 

material (including additives such as 

pigments, plasticizers, and ultraviolet 

(UV) inhibitors), emission control 

strategy, and production methods. Fuel 

tanks of different sizes, shapes, and wall 

thicknesses may be grouped into the 

same emission family. 

Compliance Progress Review for 

Marine Fuel Tanks—While there is 

clearly a difference of opinion among 

the SERs involved in tank 

manufacturing, some SERs expressed 

concern that there is not an established 

low-permeation technology available for 

rotationally molded marine fuel tanks. 

These SERs stated that they are working 

on developing such technology but do 

not have in-use experience to 

demonstrate the durability of lowpermeation rotationally molded fuel 

tanks. The Panel recommended that if a 

rule is implemented, EPA undertake a 

‘‘compliance progress review’’

assessment with the manufacturers. In 

this effort, EPA should continue to 

engage on a technical level with 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28247 

rotationally-molded marine fuel tank 

manufacturers and material suppliers to 

assess the progress of low-permeation 

fuel tank development and compliance. 

Design-Based Certification—The 

Panel recommended that EPA propose a 

design-based certification for carbon 

canisters and fuel tanks. For the carbon 

canisters, the design requirement would 

call for a ratio of carbon volume (liters) 

to fuel tank capacity (gallons) of 0.04 

liter/gallon for boats less than 26 feet in 

length, and 0.016 liter/gallon for larger 

boats. The different canister sizes are 

intended to account for the differences 

between boats normally trailered to the 

water for use versus boats normally 

stored in the water between uses. For 

fuel tanks, the Panel recommended that 

EPA propose to allow design-based 

certification for metal tanks and plastic 

fuel tanks with a continuous EVOH 

barrier. 

SERs commented that the American 

Boat and Yacht Council (ABYC) and the 

Society of Automotive Engineers (SAE) 

have industry recommended practices 

for boat designs that must be met as a 

condition of membership in the 

National Marine Manufacturers 

Association (NMMA). NMMA is 

working to update these recommended 

practices to include carbon canister 

installation specifications and a lowpermeation fuel line designation. The 

Panel recommended that EPA propose 

to accept data used for meeting the 

voluntary requirements as part of the 

EPA certification. 

Additional Lead Time for Small SI 

Fuel Line Requirement—EPA is 

proposing to apply the fuel line 

permeation requirements beginning 

with the 2008 model year for Small SI 

nonhandheld equipment. Given the 

short lead time before 2008, small 

business equipment manufacturers may 

not be ready for such a requirement. The 

Panel recommended EPA propose a 

2009 implementation date for lowpermeation fuel line for small business 

equipment manufacturers producing 

Small SI nonhandheld equipment. 

(d) Manufacturer Hardship Provisions 

The Panel recommended that EPA 

propose hardship programs for affected 

manufacturers. EPA has adopted 

hardship provisions in a number of 

previous rules. The following section 

summarizes the hardship provisions 

recommended by the Panel which 

would be available to engine 

manufacturers, equipment 

manufacturers, vessel manufacturers, 

and fuel system component 

manufacturers (i.e., fuel tank, fuel line, 

and fuel cap manufacturers). A 

discussion of the proposed hardship 

provisions can be found in Sections 

VIII.C.8, VIII.C.9, and VIII.C.10. 

Unusual Circumstances Hardship—

The Panel recommended that EPA 

propose a provision allowing for 

hardship relief under unusual 

circumstances for manufacturers 

affected by this rule. Manufacturers 

would be able to apply for hardship 

relief if circumstances outside their 

control cause the failure to comply and 

if failure to sell the subject engines or 

equipment would jeopardize the 

company’s solvency. An example of an 

unusual circumstance outside a 

manufacturer’s control may be an ‘‘Act 

of God,’’ a fire at the manufacturing 

plant, or the unforeseen shut down of a 

supplier with no alternative available. 

Economic Hardship—The Panel 

recommended that EPA propose 

economic hardship provisions for small 

businesses affected by this rule. Small 

manufacturers would be able to petition 

EPA for limited additional lead time to 

comply with the standards. A 

manufacturer would have to make the 

case that it has taken all possible 

business, technical, and economic steps 

to comply but the burden of compliance 

costs would have a significant impact 

on the company’s solvency. 

We invite comments on all aspects of 

the proposal and its impacts on small 

entities. 

D. Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA), Public 

Law 104–4, establishes requirements for 

federal agencies to assess the effects of 

their regulatory actions on state, local, 

and tribal governments and the private 

sector. Under section 202 of the UMRA, 

EPA generally must prepare a written 

statement, including a cost-benefit 

analysis, for proposed and final rules 

with ‘‘federal mandates’’ that may result 

in expenditures to state, local, and tribal 

governments, in the aggregate, or to the 

private sector, of $100 million or more 

in any one year. Before promulgating an 

EPA rule for which a written statement 

is needed, section 205 of the UMRA 

generally requires that EPA identify and 

consider a reasonable number of 

regulatory alternatives and adopt the 

least costly, most cost-effective, or least 

burdensome alternative that achieves 

the objectives of the rule. The 

provisions of section 205 do not apply 

when they are inconsistent with 

applicable law. Moreover, section 205 

allows EPA to adopt an alternative other 

than the least costly, most cost-effective, 

or least burdensome alternative if the 

Administrator publishes with the final 

rule an explanation of why that 

alternative was not adopted. 

Before EPA establishes any regulatory 

requirements that may significantly or 

uniquely affect small governments, 

including tribal governments, it must 

have developed under section 203 of the 

UMRA a small government agency plan. 

The plan must provide for notifying 

potentially affected small governments, 

enabling officials of affected small 

governments to have meaningful and 

timely input in the development of EPA 

regulatory proposals with significant 

federal intergovernmental mandates, 

and informing, educating, and advising 

small governments on compliance with 

the regulatory requirements. 

This rule contains no federal 

mandates for state, local, or tribal 

governments as defined by the 

provisions of Title II of the UMRA. The 

rule imposes no enforceable duties on 

any of these governmental entities. 

Nothing in the rule would significantly 

or uniquely affect small governments. 

EPA has determined that this rule 

contains federal mandates that may 

result in expenditures of more than 

$100 million to the private sector in any 

single year. EPA believes that the 

proposal represents the least costly, 

most cost-effective approach to achieve 

the air quality goals of the rule. The 

costs and benefits associated with the 

proposal are discussed above and in the 

Draft Regulatory Impact Analysis as 

required by the UMRA. 

E. Executive Order 13132: Federalism 

Executive Order 13132, entitled 

‘‘Federalism’’ (64 FR 43255, August 10, 

1999), requires EPA to develop an 

accountable process to ensure 

‘‘meaningful and timely input by State 

and local officials in the development of 

regulatory policies that have federalism 

implications.’’ ‘‘Policies that have 

federalism implications’’ is defined in 

the Executive Order to include 

regulations that have ‘‘substantial direct 

effects on the States, on the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government.’’

Under section 6 of Executive Order 

13132, EPA may not issue a regulation 

that has federalism implications, that 

imposes substantial direct compliance 

costs, and that is not required by statute, 

unless the Federal government provides 

the funds necessary to pay the direct 

compliance costs incurred by State and 

local governments, or EPA consults with 

State and local officials early in the 

process of developing the proposed 

regulation. EPA also may not issue a 

regulation that has federalism 

implications and that preempts State 

law, unless the Agency consults with 


sroberts on PROD1PC70 with PROPOSALS
28248 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

State and local officials early in the 

process of developing the proposed 

regulation. 

Section 4 of the Executive Order 

contains additional requirements for 

rules that preempt State or local law, 

even if those rules do not have 

federalism implications (i.e., the rules 

will not have substantial direct effects 

on the States, on the relationship 

between the national government and 

the states, or on the distribution of 

power and responsibilities among the 

various levels of government). Those 

requirements include providing all 

affected State and local officials notice 

and an opportunity for appropriate 

participation in the development of the 

regulation. If the preemption is not 

based on express or implied statutory 

authority, EPA also must consult, to the 

extent practicable, with appropriate 

State and local officials regarding the 

conflict between State law and 

Federally protected interests within the 

agency’s area of regulatory 

responsibility. 

This proposed rule does have 

federalism implications. It does not 

propose any significant revisions from 

current statutory and regulatory 

requirements, but it proposes to codify 

existing statutory requirements. Prior to 

the passage of Public Law 108–199, the 

various states could adopt and enforce 

nonroad emission control standards 

previously adopted by the state of 

California under section 209(e) of the 

Clean Air Act, once California had 

received authorization from EPA to 

enforce such standards. As part of 

directing EPA to undertake this 

rulemaking, section 428 of Public Law 

108–199 has taken away the authority of 

states to adopt California standards for 

any nonroad spark-ignition engine 

under 50 horsepower that they had not 

already adopted by September 1, 2003. 

No state had done so by that date. No 

current state law is affected by the 

provisions of Public Law 108–199 

mentioned above. Today’s action 

proposes to codify the statutory 

provision prohibiting other states from 

adopting California standards for 

nonroad spark-ignition engines under 

50 horsepower. It does not affect the 

independent authority of California. 

EPA did consult with representatives 

of various State and local governments 

in developing this rule. EPA has also 

consulted representatives from the 

National Association of Clean Air 

Agencies (NACAA), which represents 

state and local air pollution officials. 

These officials participated in two EPA 

workshops regarding the Small SI safety 

study in which they expressed concern 

about the language of section 428 of 

Public Law 108–199 limiting the states 

ability to adopt the California standards 

for nonroad spark-ignition engines 

under 50 horsepower and urged EPA to 

move expeditiously in adopting new 

Federal emission standards for this 

category. 

In the spirit of Executive Order 13132, 

and consistent with EPA policy to 

promote communications between EPA 

and State and local governments, EPA 

specifically solicits comment on this 

proposed rule from State and local 

officials. 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

Executive Order 13175, entitled 

‘‘Consultation and Coordination with 

Indian Tribal Governments’’ (65 FR 

67249, November 9, 2000), requires EPA 

to develop an accountable process to 

ensure ‘‘meaningful and timely input by 

tribal officials in the development of 

regulatory policies that have tribal 

implications.’’

This proposed rule does not have 

tribal implications as specified in 

Executive Order 13175. This rule will be 

implemented at the Federal level and 

impose compliance costs only on engine 

and equipment manufacturers. Tribal 

governments will be affected only to the 

extent they purchase and use equipment 

with regulated engines. Thus, Executive 

Order 13175 does not apply to this rule. 

EPA specifically solicits additional 

comment on this proposed rule from 

tribal officials. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

and Safety Risks 

Executive Order 13045, ‘‘Protection of 

Children from Environmental Health 

Risks and Safety Risks’’ (62 FR 19885, 

April 23, 1997) applies to any rule that 

(1) Is determined to be ‘‘economically 

significant’’ as defined under Executive 

Order 12866, and (2) concerns an 

environmental health or safety risk that 

EPA has reason to believe may have a 

disproportionate effect on children. If 

the regulatory action meets both criteria, 

section 5–501 of the Order directs the 

Agency to evaluate the environmental 

health or safety effects of the planned 

rule on children, and explain why the 

planned regulation is preferable to other 

potentially effective and reasonably 

feasible alternatives considered by the 

Agency. 

This proposed rule is not subject to 

the Executive Order because it does not 

involve decisions on environmental 

health or safety risks that may 

disproportionately affect children. 

The effects of ozone on children’s 

health were addressed in detail in EPA’s 

rulemaking to establish the NAAQS for 

these pollutants, and EPA is not 

revisiting those issues here. EPA 

believes, however, that the emission 

reductions from the strategies proposed 

in this rulemaking will further reduce 

air toxic emissions and the related 

adverse impacts on children’s health. 

H. Executive Order 12898: Federal 

Actions to Address Environmental 

Justice in Minority Populations and 

Low-Income Populations. 

Executive Order (EO) 12898 (59 FR 

7629 (Feb. 16, 1994)) establishes federal 

executive policy on environmental 

justice. Its main provision directs 

federal agencies, to the greatest extent 

practicable and permitted by law, to 

make environmental justice part of their 

mission by identifying and addressing, 

as appropriate, disproportionately high 

and adverse human health or 

environmental effects of their programs, 

policies, and activities on minority 

populations and low-income 

populations in the United States. 

EPA has determined that this 

proposed rule will not have 

disproportionately high and adverse 

human health or environmental effects 

on minority or low-income populations 

because it increases the level of 

environmental protection for all affected 

populations without having any 

disproportionately high and adverse 

human health or environmental effects 

on any population, including any 

minority or low-income population. 

This proposed rule will reduce air 

pollution from mobile sources in 

general and thus decrease the amount of 

such emissions to which all affected 

populations are exposed. 

I. Executive Order 13211: Actions That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This rule is not a ‘‘significant energy 

action’’ as defined in Executive Order 

13211, ‘‘Actions Concerning Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use’’ (66 FR 28355, May 

22, 2001), because it is not likely to have 

a significant adverse effect on the 

supply, distribution, or use of energy. If 

promulgated, this proposed rule is 

expected to result in the use of emission 

control technologies that are estimated 

to reduce nationwide fuel consumption 

by around 100 million gallons per year 

by 2020. 

J. National Technology Transfer 

Advancement Act 

Section 12(d) of the National 

Technology Transfer and Advancement 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28249 

Act of 1995 (‘‘NTTAA’’), Public Law 

104–113, section 12(d) (15 U.S.C. 272 

note) directs EPA to use voluntary 

consensus standards in its regulatory 

activities unless doing so would be 

inconsistent with applicable law or 

otherwise impractical. Voluntary 

consensus standards are technical 

standards (e.g., materials specifications, 

test methods, sampling procedures, and 

business practices) that are developed or 

adopted by voluntary consensus 

standards bodies. NTTAA directs EPA 

to provide Congress, through OMB, 

explanations when the Agency decides 

not to use available and applicable 

voluntary consensus standards. 

This proposed rulemaking involves 

technical standards. EPA proposes to 

use the test procedures specified in 40 

CFR part 1065, as described in Section 

IX. While the Agency identified the test 

procedures specified by the 

International Organization for 

Standardization (ISO 8178) as being 

potentially applicable, we do not 

propose to use it in this rulemaking. The 

use of this voluntary consensus 

standard would be impractical because 

we have been working with engine 

manufacturers and other interested 

parties in comprehensive improvements 

to test procedures for measuring engine 

emissions, as reflected by the provisions 

in part 1065. We expect these 

procedures to form the basis for 

internationally harmonized test 

procedures that will be adopted by ISO, 

other testing organizations, and other 

national governments. 

EPA welcomes comments on this 

aspect of the proposed rulemaking and, 

specifically, invites the public to 

identify potentially applicable voluntary 

consensus standards and to explain why 

such standards should be used in this 

regulation. 

List of Subjects 

40 CFR Part 60 

Administrative practice and 

procedure, Air pollution control, 

Incorporation by reference, 

Intergovernmental relations, Reporting 

and recordkeeping requirements. 

40 CFR Part 63 

Administrative practice and 

procedure, Air pollution control, 

Hazardous substances, Incorporation by 

reference, Intergovernmental relations, 

Reporting and recordkeeping 

requirements. 

40 CFR Part 85 

Confidential business information, 

Imports, Labeling, Motor vehicle 

pollution, Reporting and recordkeeping 

requirements, Research, Warranties. 

40 CFR Part 89 

Environmental protection, 

Administrative practice and procedure, 

Confidential business information, 

Imports, Labeling, Motor vehicle 

pollution, Reporting and recordkeeping 

requirements, Research, Vessels, 

Warranty. 

40 CFR Part 90 

Environmental protection, 

Administrative practice and procedure, 

Confidential business information, 

Imports, Labeling, Reporting and 

recordkeeping requirements, Research, 

Warranty. 

40 CFR Part 91 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Confidential 

business information, Imports, Labeling, 

Penalties, Reporting and recordkeeping 

requirements, Warranties. 

40 CFR Part 1027 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Imports, 

Reporting and recordkeeping 

requirements. 

40 CFR Parts 1045, 1048, 1051, 1054, 

and 1060 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Confidential 

business information, Imports, 

Incorporation by Reference, Labeling, 

Penalties, Reporting and recordkeeping 

requirements, Warranties. 

40 CFR Part 1065 

Environmental protection, 

Administrative practice and procedure, 

Incorporation by reference, Reporting 

and recordkeeping requirements, 

Research. 

40 CFR Part 1068 

Environmental protection, 

Administrative practice and procedure, 

Confidential business information, 

Imports, Motor vehicle pollution, 

Penalties, Reporting and recordkeeping 

requirements, Warranties. 

40 CFR Part 1074 

Environmental protection, 

Administrative practice and procedure, 

Motor vehicle pollution. 

Dated: April 17, 2007. 

Stephen L. Johnson, 

Administrator. 

For the reasons set out in the 

preamble, title 40, chapter I of the Code 

of Federal Regulations is proposed to be 

amended as set forth below. 

PART 60—STANDARDS OF 

PERFORMANCE FOR NEW 

STATIONARY SOURCES 

1. The authority citation for part 60 

continues to read as follows: 

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

Subpart JJJJ—[Amended] 

2. Section 60.4231 as proposed on 

June 12, 2006 (71 FR 33804) is proposed 

to be further amended by revising the 

section heading and paragraphs (a), (b), 

and (c) and adding paragraph (e) to read 

as follows: 

§ 60.4231 What emission standards must I 

meet if I am a manufacturer of stationary SI 

internal combustion engines or equipment 

containing such engines? 

(a) Stationary SI internal combustion 

engine manufacturers must certify their 

stationary SI ICE with a maximum 

engine power less than or equal to 19 

KW (25 HP) manufactured on or after 

January 1, 2008 to the certification 

emission standards and other 

requirements for new nonroad SI 

engines in 40 CFR part 90 or 1054, as 

follows: 

If engine displacement is . . . and manufacturing dates are . . . 

the engine must meet emission standards and 

related requirements for nonhandheld engines 

under . . . 

(1) below 225 cc ................................................ January 1, 2008 to December 31, 2011 .......... 40 CFR part 90. 

(2) below 225 cc ................................................ January 1, 2012 or later ................................... 40 CFR part 1054. 

(3) at or above 225 cc ....................................... January 1, 2008 to December 31, 2010 .......... 40 CFR part 90. 

(4) at or above 225 cc ....................................... January 1, 2011 or later ................................... 40 CFR part 1054. 


sroberts on PROD1PC70 with PROPOSALS
28250 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(b) Stationary SI internal combustion 

engine manufacturers must certify their 

stationary SI ICE with a maximum 

engine power greater than 19 KW (25 

HP) that use gasoline and that are 

manufactured on or after the applicable 

date in § 60.4230(a)(2) to the 

certification emission standards and 

other requirements for new nonroad SI 

engines in 40 CFR part 1048. Stationary 

SI internal combustion engine 

manufacturers may certify their 

stationary SI ICE with a maximum 

engine power less than or equal to 30 

KW (40 HP) with a total displacement 

less than or equal to 1,000 cubic 

centimeters (cc) to the certification 

emission standards and other 

requirements for new nonroad SI 

engines in 40 CFR part 90 or 1054, as 

appropriate. 

(c) Stationary SI internal combustion 

engine manufacturers must certify their 

stationary SI ICE with a maximum 

engine power greater than 19 KW (25 

HP) that are rich burn engines that use 

LPG and that are manufactured on or 

after the applicable date in 

§ 60.4230(a)(2) to the certification 

emission standards and other 

requirements for new nonroad SI 

engines in 40 CFR part 1048. Stationary 

SI internal combustion engine 

manufacturers may certify their 

stationary SI ICE with a maximum 

engine power less than or equal to 30 

KW (40 HP) with a total displacement 

less than or equal to 1,000 cc to the 

certification emission standards and 

other requirements for new nonroad SI 

engines in 40 CFR part 90 or 1054, as 

appropriate. 

* * * * * 

(e) Manufacturers of equipment 

containing stationary SI internal 

combustion engines meeting the 

provisions of 40 CFR part 1054 must 

meet the provisions of 40 CFR part 

1060, to the extent they apply to 

equipment manufacturers. 

3. Section 60.4238 as proposed on 

June 12, 2006 (71 FR 33804) is revised 

to read as follows: 

§ 60.4238 What are my compliance 

requirements if I am a manufacturer of 

stationary SI internal combustion engines 

≤19 KW (25 HP) or a manufacturer of 

equipment containing such engines? 

Stationary SI internal combustion 

engine manufacturers who are subject to 

the emission standards specified in 

§ 60.4231(a) must certify their stationary 

SI ICE using the certification procedures 

required in 40 CFR part 90, subpart B, 

or 40 CFR part 1054, subpart C, as 

applicable, and must test their engines 

as specified in those parts. 

Manufacturers of equipment containing 

stationary SI internal combustion 

engines meeting the provisions of 40 

CFR part 1054 must meet the provisions 

of 40 CFR part 1060, subpart C, to the 

extent they apply to equipment 

manufacturers. 

4. Section 60.4239 as proposed on 

June 12, 2006 (71 FR 33804) is revised 

to read as follows: 

§ 60.4239 What are my compliance 

requirements if I am a manufacturer of 

stationary SI internal combustion engines 

>19 KW (25 HP) that use gasoline or a 

manufacturer of equipment containing such 

engines? 

Stationary SI internal combustion 

engine manufacturers who are subject to 

the emission standards specified in 

§ 60.4231(b) must certify their stationary 

SI ICE using the certification procedures 

required in 40 CFR part 1048, subpart C, 

and must test their engines as specified 

in that part. Stationary SI internal 

combustion engine manufacturers who 

certify their stationary SI ICE with a 

maximum engine power less than or 

equal to 30 KW (40 HP) with a total 

displacement less than or equal to 1,000 

cc to the certification emission 

standards and other requirements for 

new nonroad SI engines in 40 CFR part 

90 or 40 CFR part 1054 must certify 

their stationary SI ICE using the 

certification procedures required in 40 

CFR part 90, subpart B, or 40 CFR part 

1054, subpart C, as applicable, and must 

test their engines as specified in those 

parts. Manufacturers of equipment 

containing stationary SI internal 

combustion engines meeting the 

provisions of 40 CFR part 1054 must 

meet the provisions of 40 CFR part 

1060, subpart C, to the extent they apply 

to equipment manufacturers. 

5. Section 60.4240 as proposed on 

June 12, 2006 (71 FR 33804) is revised 

to read as follows: 

§ 60.4240 What are my compliance 

requirements if I am a manufacturer of 

stationary SI internal combustion engines 

>19 KW (25 HP) that are rich burn engines 

that use LPG? 

Stationary SI internal combustion 

engine manufacturers who are subject to 

the emission standards specified in 

§ 60.4231(c) must certify their stationary 

SI ICE using the certification procedures 

required in 40 CFR part 1048, subpart C, 

and must test their engines as specified 

in that part. Stationary SI internal 

combustion engine manufacturers who 

certify their stationary SI ICE with a 

maximum engine power less than or 

equal to 30 KW (40 HP) with a total 

displacement less than or equal to 1,000 

cc to the certification emission 

standards and other requirements for 

new nonroad SI engines in 40 CFR part 

90 or 40 CFR part 1054 must certify 

their stationary SI ICE using the 

certification procedures required in 40 

CFR part 90, subpart B, or 40 CFR part 

1054, subpart C, as applicable, and must 

test their engines as specified in those 

parts. Manufacturers of equipment 

containing stationary SI internal 

combustion engines meeting the 

provisions of 40 CFR part 1054 must 

meet the provisions of 40 CFR part 

1060, subpart C, to the extent they apply 

to equipment manufacturers. 

6. Section 60.4242 as proposed on 

June 12, 2006 (71 FR 33804) is amended 

by revising paragraphs (a) and (b) to 

read as follows: 

§ 60.4242 What other requirements must I 

meet if I am a manufacturer of stationary SI 

internal combustion engines or equipment 

containing stationary SI internal 

combustion engines or a manufacturer of 

equipment containing such engines? 

(a) Stationary SI internal combustion 

engine manufacturers must meet the 

provisions of 40 CFR part 90, 40 CFR 

part 1048, or 40 CFR part 1054, as 

applicable, as well as 40 CFR part 1068 

for engines that are certified to the 

emission standards in 40 CFR part 1048 

or 1054, except that engines certified 

pursuant to the voluntary certification 

procedures in § 60.4241 are permitted to 

provide instructions to owners and 

operators allowing for deviations from 

certified configurations, if such 

deviations are consistent with the 

provisions of paragraphs § 60.4241(c) 

through (f). Manufacturers of equipment 

containing stationary SI internal 

combustion engines meeting the 

provisions of 40 CFR part 1054 must 

meet the provisions of 40 CFR part 

1060, as applicable. Labels on engines 

certified to 40 CFR part 1048 must refer 

to stationary engines, rather than or in 

addition to nonroad engines, as 

appropriate. 

(b) An engine manufacturer certifying 

an engine family or families to 

standards under this subpart that are 

identical to standards applicable under 

40 CFR part 90, 40 CFR part 1048, or 40 

CFR part 1054 for that model year may 

certify any such family that contains 

both nonroad and stationary engines as 

a single engine family and/or may 

include any such family containing 

stationary engines in the averaging, 

banking and trading provisions 

applicable for such engines under those 

parts. This provision also applies to 

equipment or component manufacturers 

certifying to standards under 40 CFR 

part 1060. 

* * * * * 

7. Section 60.4243 as proposed on 

June 12, 2006 (71 FR 33804) is amended 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28251 

by revising paragraph (a) to read as 

follows: 

§ 60.4243 What are my compliance 

requirements if I am an owner or operator 

of a stationary SI internal combustion 

engine? 

(a) If you are an owner or operator, 

you must operate and maintain the 

stationary SI internal combustion engine 

and control device according to the 

manufacturer’s written instructions or 

procedures developed by the owner or 

operator that are approved by the engine 

manufacturer. In addition, owners and 

operators of certified engines may only 

change those settings that are allowed 

by the manufacturer to ensure 

compliance with the applicable 

emission standards. If you own or 

operate a stationary SI internal 

combustion engine that is certified to 40 

CFR part 90, 1048, 1054, or 1060, you 

must also meet the requirements of 40 

CFR parts 90, 1048, 1054, 1060, and/or 

part 1068, as they apply to you. 

* * * * * 

8. Section 60.4245 as proposed on 

June 12, 2006 (71 FR 33804) is amended 

by revising the introductory text and 

paragraph (a) to read as follows: 

§ 60.4245 What are my notification, 

reporting, and recordkeeping requirements 

if I am an owner or operator of a stationary 

SI internal combustion engine? 

Owners or operators of stationary SI 

ICE must meet the following 

notification, reporting and 

recordkeeping requirements. 

(a) Owners and operators of all 

stationary SI ICE must keep records of 

the information in paragraphs (a)(1) 

through (4) of this section. 

(1) All notifications submitted to 

comply with this subpart and all 

documentation supporting any 

notification. 

(2) Maintenance conducted on the 

engine. 

(3) If the stationary SI internal 

combustion engine is a certified engine, 

documentation from the manufacturer 

that the engine is certified to meet the 

emission standards and information as 

required in 40 CFR parts 90, 1048, 1054, 

and 1060, as applicable. 

(4) If the stationary SI internal 

combustion engine is not a certified 

engine, documentation that the engine 

meets the emission standards. 

* * * * * 

9. Section 60.4246 as proposed on 

June 12, 2006 (71 FR 33804) is amended 

by revising the definitions for ‘‘Certified 

stationary internal combustion engine’’

and ‘‘Useful life’’ to read as follows: 

§ 60.4246 What definitions apply to this 

subpart? 

* * * * * 

Certified stationary internal 

combustion engine means an engine that 

belongs to an engine family that has a 

certificate of conformity that complies 

with the emission standards and 

requirements in this part, or of 40 CFR 

part 90, 40 CFR part 1048, or 40 CFR 

part 1054, as appropriate. 

* * * * * 

Useful life means the period during 

which the engine is designed to 

properly function in terms of reliability 

and fuel consumption, without being 

remanufactured, specified as a number 

of hours of operation or calendar years, 

whichever comes first. The values for 

useful life for stationary SI ICE with a 

maximum engine power less than or 

equal to 19 KW (25 HP) are given in 40 

CFR 90.105, 40 CFR 1054.107, and 40 

CFR 1060.101, as appropriate. The 

values for useful life for stationary SI 

ICE with a maximum engine power 

greater than 19 KW (25 HP) certified to 

40 CFR part 1048 are given in 40 CFR 

1048.101(g). The useful life for 

stationary SI ICE with a maximum 

engine power greater than 19 KW (25 

HP) certified under the voluntary 

manufacturer certification program of 

this subpart is 8,000 hours or 10 years, 

whichever comes first. 

* * * * * 

10. Table 1 to subpart JJJJ of part 60 

as proposed on June 12, 2006 (71 FR 

33804) is amended by revising footnote 

a to read as follows: 

Table 1 to Subpart JJJJ of Part 60—NOX, 

NMHC, and CO Emission Standards in 

g/HP-hr for Stationary SI Engines >25 

HP (except Gasoline and Rich Burn 

LPG Engines) 

* * * * * aStationary SI natural gas and lean burn 

LPG engines between 25 and 50 HP may 

comply with the requirements of 40 CFR part 

1048, instead of this table. Stationary SI 

internal combustion engine manufacturers 

may certify their stationary SI ICE with a 

maximum engine power less than or equal to 

30 KW (40 HP) with a total displacement less 

than or equal to 1,000 cc to the certification 

emission standards and other requirements 

for new nonroad SI engines in 40 CFR part 

90 or 1054, as appropriate. 

PART 63—NATIONAL EMISSION 

STANDARDS FOR HAZARDOUS AIR 

POLLUTANTS FOR SOURCE 

CATEGORIES 

11. The authority citation for part 63 

continues to read as follows: 

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

Subpart A—[Amended] 

12. Section 63.6675 as proposed to be 

amended on June 12, 2006 (71 FR 

33804) is amended by revising the 

definitions for ‘‘Certified stationary 

RICE’’ and ‘‘Useful life’’ to read as 

follows: 

§ 63.6675 What definitions apply to this 

subpart? 

* * * * * 

Certified stationary RICE means an 

engine that belongs to an engine family 

that has a certificate of conformity that 

complies with the emission standards 

and requirements in this part, or in 40 

CFR parts 89, 90, 1039, 1048, or 1054, 

as appropriate. 

* * * * * 

Useful life means the period during 

which the engine is designed to 

properly function in terms of reliability 

and fuel consumption, without being 

remanufactured, specified as a number 

of hours of operation or calendar years, 

whichever comes first. The values for 

useful life for stationary CI ICE with a 

displacement of less than 10 liters per 

cylinder are given in 40 CFR 1039.101. 

The values for useful life for stationary 

CI ICE with a displacement of greater 

than or equal to 10 liters per cylinder 

and less than 30 liters per cylinder are 

given in 40 CFR 94.9. The values for 

useful life for stationary SI ICE with a 

maximum engine power less than or 

equal to 25 HP are given in 40 CFR 

90.105, 40 CFR 1054.107, or 40 CFR 

1060.101, as appropriate. The values for 

useful life for stationary SI ICE with a 

maximum engine power greater than 25 

HP certified to 40 CFR part 1048 are 

given in 40 CFR 1048.101 and 1048.105. 

The useful life for stationary SI ICE with 

a maximum engine power greater than 

25 HP certified under the voluntary 

manufacturer certification program 40 

CFR part 60, subpart JJJJ, is 8,000 hours 

or 10 years, whichever comes first. 

PART 85—CONTROL OF AIR 

POLLUTION FROM MOBILE SOURCES 

13. The authority citation for part 85 

continues to read as follows: 

Authority: 42 U.S.C. 7401–7671q. 

Subpart Q—[Removed] 

14. Subpart Q is removed. 

Subpart R—[Amended] 

15. Section 85.1713 is amended as 

follows: 

a. By revising the introductory text 

and paragraphs (a), (c)(3)(iv), and (d) 

through (k). 

b. By adding paragraph (l). 


sroberts on PROD1PC70 with PROPOSALS
28252 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

c. By removing and reserving 

paragraph (c)(3)(v). 

§ 85.1713 Delegated-assembly exemption. 

The provisions of this section apply 

with respect to heavy-duty highway 

engines. This section is addressed to 

engine manufacturers unless specified 

otherwise. 

(a) Shipping an engine separately 

from an aftertreatment component that 

you have specified as part of its certified 

configuration will not be a violation of 

the prohibitions in Clean Air Act 

section 203 (42 U.S.C. 7522) if you 

follow the provisions of paragraph (b), 

(c), or (d) of this section. 

* * * * * 

(c) * * * 

(3) * * * 

(iv) Audits must involve the 

assembling companies’ facilities, 

procedures, and production records to 

monitor their compliance with your 

instructions, must include investigation 

of some assembled engines, and must 

confirm that the number of 

aftertreatment devices shipped were 

sufficient for the number of engines 

produced. 

* * * * * 

(d) If you manufacture engines and 

install them in equipment you also 

produce, you must take steps to ensure 

that your facilities, procedures, and 

production records are set up to ensure 

that equipment and engines are 

assembled in their proper certified 

configurations. You may demonstrate 

compliance with the requirements of 

this section by maintaining a database 

showing how you pair aftertreatment 

components with the appropriate 

engines. 

(e) The engine’s model year does not 

change based on the date the vehicle 

manufacturer adds the aftertreatment 

device. 

(f) Once the vehicle manufacturer 

takes possession of an engine exempted 

under this section and the engine 

reaches the point of final vehicle 

assembly, the exemption expires and 

the engine is subject to all the 

prohibitions in Clean Air Act section 

203 (42 U.S.C. 7522). 

(g) You must notify us within 15 days 

if you find from an audit or another 

source that a vehicle manufacturer has 

failed to meet its obligations under this 

section. 

(h) We may suspend, revoke, or void 

an exemption under this section, as 

follows: 

(1) We may suspend or revoke your 

exemption for the entire engine family 

if we determine that any of the engines 

are not in their certified configuration 

after installation in the vehicle, or if you 

fail to comply with the requirements of 

this section. If we suspend or revoke the 

exemption for any of your engine 

families under this paragraph (g), this 

exemption will not apply for future 

certificates unless you demonstrate that 

the factors causing the nonconformity 

do not apply to the other engine 

families. We may suspend or revoke the 

exemption for shipments to a single 

facility where final assembly occurs. 

(2) We may void your exemption for 

the entire engine family if you 

intentionally submit false or incomplete 

information or fail to keep and provide 

to EPA the records required by this 

section. 

(i) You are liable for the in-use 

compliance of any engine that is exempt 

under this section. 

(j) It is a violation of the Act for any 

person to introduce into U.S. commerce 

a previously exempted engine, 

including as part of a vehicle, without 

complying fully with the installation 

instructions. 

(k) [Reserved] 

(l) You may ask us to provide a 

temporary exemption to allow you to 

complete production of your engines at 

different facilities, as long as you 

maintain control of the engines until 

they are in their certified configuration. 

We may require you to take specific 

steps to ensure that such engines are in 

their certified configuration before 

reaching the ultimate purchaser. You 

may request an exemption under this 

paragraph (l) in your application for 

certification, or in a separate 

submission. 

16. Subpart Y is revised to read as 

follows: 

Subpart Y—Fees for the Motor Vehicle 

and Engine Compliance Program 

§ 85.2401 Assessment of fees. 

See 40 CFR part 1027 for the 

applicable fees associated with 

certifying engines, vehicles, and 

equipment under this chapter. 

PART 90—CONTROL OF EMISSIONS 

FROM NONROAD SPARK-IGNITION 

ENGINES AT OR BELOW 19 

KILOWATTS 

17. The authority citation for part 90 

continues to read as follows: 

Authority: 42 U.S.C. 7401—7671q. 

Subpart A—[Amended] 

18. Section 90.1 is amended by 

revising paragraphs (d)(1) and (d)(5) and 

adding paragraphs (d)(8) and (h) to read 

as follows: 

§ 90.1 Applicability. 

* * * * * 

(d) * * * 

(1) Engines that are certified to meet 

the requirements of 40 CFR part 1051, 

or are otherwise subject to 40 CFR part 

1051 (for example, engines used in 

snowmobiles and all-terrain vehicles). 

This part nevertheless applies to 

engines used in recreational vehicles if 

the manufacturer uses the provisions of 

40 CFR 1051.145(a)(3) to exempt them 

from the requirements of 40 CFR part 

1051. Compliance with the provisions of 

this part is a required condition of that 

exemption. 

* * * * * 

(5) Engines certified to meet the 

requirements of 40 CFR part 1048, or are 

otherwise subject to 40 CFR part 1048, 

subject to the provisions of § 90.913. 

* * * * * 

(8) Engines that are subject to 

emission standards under 40 CFR part 

1054. See 40 CFR 1054.1 to determine 

when part 1054 applies. Note that 

certain requirements and prohibitions 

apply to engines built on or after 

January 1, 2009 if they are installed in 

equipment that will be used solely for 

competition, as described in 40 CFR 

1054.1 and 40 CFR 1068.1; those 

provisions apply instead of the 

provisions of this part 90. 

* * * * * 

(h) Although the definition of 

nonroad engine in § 90.3 excludes 

certain engines used in stationary 

applications, stationary engines 

manufactured after January 1, 2008 are 

required under 40 CFR part 60 to 

comply with this part. 

19. Section 90.2 is amended by 

adding paragraph (d) to read as follows: 

§ 90.2 Effective dates. 

* * * * * 

(d) Engines used in emergency and 

rescue equipment as described in 

§ 90.1(d)(7) are subject to the provisions 

of this part through December 31, 2009. 

Starting January 1, 2010 the provisions 

in 40 CFR 1054.660 apply instead of 

those in § 90.1(d)(7). 

20. Section 90.3 is amended by 

adding a definition for ‘‘Fuel line’’ in 

alphabetical order to read as follows: 

§ 90.3 Definitions. 

* * * * * 

Fuel line has the meaning given in 40 

CFR 1054.801. 

* * * * * 

21. Section 90.7 is amended by 

adding paragraph (b)(3) to read as 

follows: 

§ 90.7 Reference materials. 

* * * * * 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28253 

(b) * * * 

(3) California Air Resources Board 

material. The following table lists 

material from the California Air 

Resources Board that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the sections of this part where we 

reference it. Anyone may get copies of 

these materials from the California Air 

Resources Board, 9528 Telstar Ave., El 

Monte, California 91731. 

Document number and name Part 90 

reference 

‘‘Tier 3 standards for Small Off-Road Engines,’’ Mobile Source Division, California Air Resources Board ...................................... § 90.127 

Subpart B—[Amended] 

22. Section 90.101 is revised to read 

as follows: 

§ 90.101 Applicability. 

(a) The requirements of this subpart B 

are applicable to all nonroad engines 

and vehicles subject to the provisions of 

subpart A of this part. 

(b) In a given model year, you may ask 

us to approve the use of procedures for 

certification, labeling, reporting, and 

recordkeeping specified in 40 CFR part 

1054 or 1068 instead of the comparable 

procedures specified in this part 90. We 

may approve the request as long as it 

does not prevent us from ensuring that 

you fully comply with the intent of this 

part. 

23. Section 90.107 is amended by 

revising paragraph (d)(11)(ii) and adding 

paragraphs (d)(12), (d)(13), (d)(14), and 

(d)(15) to read as follows: 

§ 90.107 Application for certification. 

* * * * * 

(d) * * * 

(11) * * * 

(ii) Provide the applicable useful life 

as determined under § 90.105; 

(12) Describe in your application for 

certification how you comply with the 

requirements of §§ 90.127 and 90.129, if 

applicable. 

(13) A statement indicating whether 

the engine family contains only nonroad 

engines, only stationary engines, or 

both; 

(14) Identification of an agent for 

service located in the United States. 

Service on this agent constitutes service 

on you or any of your officers or 

employees for any action by EPA or 

otherwise by the United States related to 

the requirements of this part; and 

(15) For imported engines, 

identification of the following: 

(i) The port(s) at which the 

manufacturer will import the engines. 

(ii) The names and addresses of the 

agents authorized to import the engines. 

(iii) The location of test facilities in 

the United States where the 

manufacturer can test engines if EPA 

selects them for testing under a selective 

enforcement audit, as specified in 

subpart F of this part. 

* * * * * 

24. Section 90.114 is amended by 

adding paragraph (g) to read as follows: 

§ 90.114 Requirement of certification—

engine information label. 

* * * * * 

(g) Manufacturers may add 

appropriate features to prevent 

counterfeit labels. For example, 

manufacturers may include the engine’s 

unique identification number on the 

label. 

25. Section 90.116 is amended as 

follows: 

a. By revising paragraphs (a) 

introductory text and (d)(5). 

b. By removing and reserving 

paragraph (e)(1). 

c. By adding paragraph (g). 

§ 90.116 Certification procedure—

determining engine displacement, engine 

class, and engine families. 

(a) Except as specified in paragraph 

(g) of this section, engine displacement 

must be calculated using nominal 

engine values and rounded to the 

nearest whole cubic centimeter in 

accordance with ASTM E29–93a. This 

procedure has been incorporated by 

reference. See § 90.7. 

* * * * * 

(d) * * * 

(5) The engine class. In addition, 

engines of different displacements that 

are within 15 percent of the largest 

displacement may be included within 

the same engine family as long as all the 

engines are in the same class; 

* * * * * 

(g) Each engine produced under the 

provisions of § 90.1(b) must have a total 

displacement at or below 1000.0 cc after 

rounding to the nearest 0.1 cc. 

26. Section 90.120 is amended by 

adding paragraph (b)(3) to read as 

follows: 

§ 90.120 Certification procedure—use of 

special test procedures. 

* * * * * 

(b) * * * 

(3) A manufacturer may elect to use 

the test procedures in 40 CFR part 1065 

as an alternate test procedure without 

getting advance approval by the 

Administrator or meeting the other 

conditions of paragraph (b)(1) of this 

section. The manufacturer must identify 

in its application for certification that 

the engines were tested using the 

procedures in 40 CFR part 1065. For any 

EPA testing with Phase 1 or Phase 2 

engines, EPA will use the 

manufacturer’s selected procedures for 

mapping engines, generating duty 

cycles, and applying cycle-validation 

criteria. For any other parameters, EPA 

may conduct testing using either of the 

specified procedures. 

* * * * * 

27. A new § 90.127 is added to 

subpart B to read as follows: 

§ 90.127 Fuel line permeation from 

nonhandheld engines and equipment. 

The following permeation standards 

apply to new nonhandheld engines and 

equipment with respect to fuel lines: 

(a) Emission standards and related 

requirements. New nonhandheld 

engines and equipment that run on a 

volatile liquid fuel (such as gasoline) 

must meet the emission standards 

specified in paragraph (a)(1) or (a)(2) of 

this section starting in the 2009 model 

year for small-volume engine 

manufacturers and small-volume 

equipment manufacturers (as defined in 

40 CFR 1054.801), and in the 2008 

model year for all other engines and 

equipment, as follows: 

(1) New nonhandheld engines and 

equipment must use only fuel lines that 

meet a permeation emission standard of 

15 g/m2/day when measured according 

to the test procedure described in 40 

CFR 1060.515. This standard applies to 

any fuel line that is exposed to liquid 

fuel during normal operation. 

(2) Alternatively, new nonhandheld 

engines and equipment must use only 

fuel lines that meet standards that apply 

for these engines in California for the 

same model year (the California 

standards are incorporated by reference 

in § 90.7). This may involve SHEDbased measurements for equipment or 

testing with fuel lines alone. If this 

involves SHED-based measurements, all 

elements of the emission-control system 


sroberts on PROD1PC70 with PROPOSALS
28254 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

must remain in place for fully 

assembled engines and equipment. 

(3) The emission standards in this 

section apply with respect to discrete 

fuel line segments of any length. 

Compliance may also be demonstrated 

using aggregated systems that include 

multiple sections of fuel line with 

connectors, and fittings. The standard 

applies with respect to the total 

permeation emissions divided by the 

wetted internal surface area of the 

assembly. Where it is not practical to 

determine the wetted internal surface 

area of the assembly, the internal 

surface area per unit length of the 

assembly may be assumed to be equal to 

the ratio of internal surface area per unit 

length of the hose section of the 

assembly. 

(4) The emission standards in this 

section apply over a useful life of five 

years. 

(5) Fuel lines must be labeled in a 

permanent and legible manner with one 

of the following approaches: 

(i) By meeting the labeling 

requirements that apply for these 

engines in California. 

(ii) By identifying the certificate 

holder’s corporate name or trademark, 

or the fuel line manufacturer’s corporate 

name or trademark, and the fuel line’s 

permeation level. For example, the fuel 

line may identify the emission standard 

from this section, the applicable SAE 

classification, or the family number 

identifying compliance with California 

standards. A continuous stripe or other 

pattern may be added to help identify 

the particular type or grade of fuel line. 

(6) The requirements of this section 

do not apply to auxiliary marine 

engines. 

(b) Certification requirements. To 

certify that you meet the standards of 

this section, you must have emission 

data from your testing or from the fuel 

line manufacturer using the appropriate 

procedures that demonstrate 

compliance with the standard, 

including any of the following: 

(1) Emission data demonstrating 

compliance with fuel line permeation 

requirements for model year 2008 

equipment sold in California. You may 

satisfy this requirement by presenting 

an approved Executive Order from the 

California Air Resources Board showing 

that the fuel lines meet the applicable 

standards in California. 

(2) Emission data demonstrating a 

level of permeation control that meets 

any of the following industry standards: 

(i) R11A specifications in SAE J30 

(incorporated by reference in § 90.7). 

(ii) R12 specifications in SAE J30 

(incorporated by reference in § 90.7). 

(iii) Category 1 specifications in SAE 

J2260 (incorporated by reference in 

§ 90.7). 

(iv) Emission data demonstrating 

compliance with the fuel line 

permeation standards in 40 CFR 

1051.110. 

(c) Prohibitions. (1) Except as 

specified in paragraph (c)(2) of this 

section, introducing engines or 

equipment into U.S. commerce without 

meeting all the requirements of this 

section violates § 90.1003(a)(1). 

(2) It is not a violation to introduce 

your engines into U.S. commerce if 

other companies add fuel lines when 

installing your engines in their 

equipment. However, you must give 

equipment manufacturers any 

appropriate instructions so that fully 

assembled equipment will meet all the 

requirements in this section, as 

described in § 90.128. 

28. A new § 90.128 is added to 

subpart B to read as follows: 

§ 90.128 Installation instructions. 

(a) If you sell an engine for someone 

else to install in a piece of nonroad 

equipment, give the engine installer 

instructions for installing it consistent 

with the requirements of this part. 

Include all information necessary to 

ensure that an engine will be installed 

in its certified configuration. In 

particular, describe the steps needed to 

control evaporative emissions, as 

described in § 90.127. This may include 

information related to the delayed 

requirements for small-volume 

equipment manufacturers. 

(b) You do not need installation 

instructions for engines you install in 

your own equipment. 

(c) Provide instructions in writing or 

in an equivalent format. For example, 

you may post instructions on a publicly 

available website for downloading or 

printing. If you do not provide the 

instructions in writing, explain in your 

application for certification how you 

will ensure that each installer is 

informed of the installation 

requirements. 

(d) Equipment manufacturers failing 

to follow the engine manufacturer’s 

emission-related installation 

instructions will be considered in 

violation of § 90.1003(a)(3). 

29. A new § 90.129 is added to 

subpart B to read as follows: 

§ 90.129 Fuel tank permeation from 

handheld engines and equipment. 

The following permeation standards 

apply to certain new handheld engines 

and equipment with respect to fuel 

tanks: 

(a) Emission standards and related 

requirements. (1) New handheld engines 

and equipment that run on a volatile 

liquid fuel (such as gasoline) and have 

been certified to meet applicable fuel 

tank permeation standards in California 

must meet one of the following emission 

standards starting in the 2009 model 

year, as follows: 

(i) Engines and equipment must use 

only fuel tanks that meet a permeation 

emission standard of 2.0 g/m2/day when 

measured according to the applicable 

test procedure specified by the 

California Air Resources Board. 

(ii) Engines and equipment must use 

only fuel tanks that meet the fuel tank 

permeation standards in 40 CFR 

1060.103. 

(iii) Engines and equipment must use 

only fuel tanks that meet standards that 

apply for these engines in California for 

the same model year. This may involve 

SHED-based measurements for 

equipment or testing with fuel tanks 

alone. If this involves SHED-based 

measurements, all elements of the 

emission-control system must remain in 

place for fully assembled engines and 

equipment. 

(2) Engine and equipment 

manufacturers may generate or use 

emission credits to show compliance 

with the requirements of this section 

under the averaging program as 

described in 40 CFR part 1054, subpart 

H. 

(3) The emission standards in this 

section apply over a useful life of two 

years. 

(4) Equipment must be labeled in a 

permanent and legible manner with one 

of the following approaches: 

(i) By meeting the labeling 

requirements that apply for equipment 

in California. 

(ii) By identifying the certificate 

holder’s corporate name or trademark, 

or the fuel tank manufacturer’s 

corporate name or trademark. Also 

identify the family number identifying 

compliance with California standards or 

state: ‘‘THIS FUEL TANK COMPLIES 

WITH U.S. EPA STANDARDS.’’ This 

label may be applied to the fuel tank or 

it may be combined with the emission 

control information label required in 

§ 90.114. If the label information is not 

on the fuel tank, the label must include 

a part identification number that is also 

permanently applied to the fuel tank. 

(5) The requirements of this section 

do not apply to engines or equipment 

with structurally integrated nylon fuel 

tanks (as defined in 40 CFR 1054.801). 

(b) Certification requirements. To 

certify that you meet the standards of 

this section, you must have emission 

data from your testing or from the fuel 

tank manufacturer using the appropriate 

procedures that demonstrate 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28255 

compliance with the standard. You may 

satisfy this requirement by presenting 

an approved Executive Order from the 

California Air Resources Board showing 

that the fuel tanks meet the applicable 

standards in California. 

(c) Prohibitions. Introducing 

equipment into U.S. commerce without 

meeting all the requirements of this 

section violates § 90.1003(a)(1). 

Subpart C—[Amended] 

30. Section 90.201 is revised to read 

as follows: 

§ 90.201 Applicability. 

(a) The requirements of this subpart C 

are applicable to all Phase 2 sparkignition engines subject to the 

provisions of subpart A of this part 

except as provided in § 90.103(a). These 

provisions are not applicable to any 

Phase 1 engines. Participation in the 

averaging, banking and trading program 

is voluntary, but if a manufacturer elects 

to participate, it must do so in 

compliance with the regulations set 

forth in this subpart. The provisions of 

this subpart are applicable for HC+NOX

(NMHC+NOX) emissions but not for CO 

emissions. 

(b) See 40 CFR 1054.740 for special 

provisions for using emission credits 

generated under this part 90 from Phase 

2 engines to demonstrate compliance 

with engines certified under 40 CFR 

part 1054. 

31. Section 90.210 is amended by 

adding paragraph (i) to read as follows: 

§ 90.210 End-of-year and final reports. 

* * * * * 

(i) For 2007 and later model years, 

include in your end-of-year and final 

reports an accounting to show a separate 

balance of emission credits for handheld 

and nonhandheld engines. Use your 

best judgment to differentiate your 

current balance of banked credits for 

handheld and nonhandheld engines. 

You may exchange handheld and 

nonhandheld credits to demonstrate 

compliance with the requirements of 

this part 90. However, emission credits 

you generate for banking under this part 

90 will be restricted for engines subject 

to the requirements of 40 CFR part 1054. 

Subpart G—[Amended] 

32. Section 90.601 is amended by 

adding paragraph (c) to read as follows: 

§ 90.601 Applicability. 

* * * * * 

(c) Importers must complete the 

appropriate EPA declaration form before 

importing an engine. These forms are 

available on the Internet at http:// 

www.epa.gov/OTAQ/imports/ or by 

phone at 734–214–4100. Importers must 

keep the forms for five years and make 

them available promptly upon request. 

33. A new § 90.616 is added to 

subpart G to read as follows: 

§ 90.616 Model year restrictions related to 

imported engines and equipment. 

The provisions of 40 CFR 1054.695 

apply starting January 1, 2009. These 

provisions limit the importation of 

engines or equipment after new 

emission standards have started to 

apply where the engines or equipment 

were built before the emission standards 

took effect. 

Subpart J—[Amended] 

34. Section 90.910 is amended by 

adding paragraph (c) to read as follows: 

§ 90.910 Granting of exemptions. 

* * * * * 

(c) Manufacturers may ask EPA to 

apply the provisions of 40 CFR 

1068.201(i) to engines exempted or 

excluded under this subpart. 

Subpart K—[Amended] 

35. Section 90.1003 is amended by 

revising paragraph (b)(3) to read as 

follows: 

§ 90.1003 Prohibited acts. 

* * * * * 

(b) * * * 

(3) The following provisions apply for 

converting nonroad engine to use 

alternative fuels: 

(i) Until December 31, 2009, 

converting an engine to use a clean 

alternative fuel (as defined in Title II of 

the Act) is not considered a prohibited 

act under § 90.1003(a) if the vehicle or 

equipment complies with the applicable 

standard when operating on the 

alternative fuel, and the device or 

element is replaced upon completion of 

the conversion procedure. Also, in the 

case of engines converted to dual fuel or 

flexible use, the action must result in 

the proper functioning of the device or 

element when the nonroad engine 

operates on conventional fuel. 

(ii) The provisions of 40 CFR 

1054.635 apply starting January 1, 2010. 

* * * * * 

36. A new § 90.1007 is added to 

subpart K to read as follows: 

§ 90.1007 Bonding requirements related to 

recall and compliance assurance. 

The provisions of 40 CFR 1054. 685 

and 1054.690 apply starting with the 

2009 model year. These provisions 

include measures to ensure that 

certifying manufacturers are able to 

cover any potential compliance, 

enforcement, or recall actions under the 

Clean Air Act. 

Subpart L—[Amended] 

37. Section 90.1103 is amended by 

adding paragraph (e) to read as follows: 

§ 90.1103 Emission warranty, warranty 

period. 

* * * * * 

(e) Starting with the 2009 model year, 

you must meet the conditions specified 

in 40 CFR 1054.120(f) to ensure that 

owners will be able to promptly obtain 

warranty repairs. Describe in your 

application for certification how you 

will meet these conditions. 

PART 91— CONTROL OF EMISSIONS 

FROM MARINE SPARK-IGNITION 

ENGINES 

38. The authority citation for part 91 

continues to read as follows: 

Authority: 42 U.S.C. 7401—7671q. 

Subpart A—[Amended] 

39. Section 91.1 is amended by 

adding paragraph (d) to read as follows: 

§ 91.1 Applicability. 

* * * * * 

(d) This part does not apply to 

engines that are subject to emission 

standards under 40 CFR part 1045. See 

40 CFR 1045.1 to determine when that 

part 1045 applies. Note that certain 

requirements and prohibitions apply to 

engines built on or after January 1, 2009 

if they are installed in equipment that 

will be used solely for competition, as 

described in 40 CFR 1045.1 and 40 CFR 

1068.1; those provisions apply instead 

of the provisions of this part 91. 

Subpart B—[Amended] 

40. Section 91.101 is revised to read 

as follows: 

§ 91.101 Applicability. 

(a) The requirements of this subpart B 

are applicable to all engines subject to 

the provisions of subpart A of this part. 

(b) In a given model year, you may ask 

us to approve the use of procedures for 

certification, labeling, reporting, and 

recordkeeping specified in 40 CFR part 

1045 or 1068 instead of the comparable 

procedures specified in this part 91. We 

may approve the request as long as it 

does not prevent us from ensuring that 

you fully comply with the intent of this 

part. 

41. Section 91.107 is amended by 

adding paragraph (d)(12) to read as 

follows: 

§ 91.107 Application for certification. 

* * * * * 


sroberts on PROD1PC70 with PROPOSALS
28256 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(d) * * * 

(12) Identification of an agent for 

service located in the United States. 

Service on this agent constitutes service 

on you or any of your officers or 

employees for any action by EPA or 

otherwise by the United States related to 

the requirements of this part. 

* * * * * 

42. Section 91.119 is amended by 

adding paragraph (b)(3) to read as 

follows: 

§ 91.119 Certification procedure—use of 

special test procedures. 

* * * * * 

(b) * * * 

(3) A manufacturer may elect to use 

the test procedures in 40 CFR part 1065 

as an alternate test procedure without 

getting advance approval by the 

Administrator or meeting the other 

conditions of paragraph (b)(1) of this 

section. The manufacturer must identify 

in its application for certification that 

the engines were tested using the 

procedures in 40 CFR part 1065. For any 

EPA testing with engines subject to 

standards under this part, EPA will use 

the manufacturer’s selected procedures 

for mapping engines, generating duty 

cycles, and applying cycle-validation 

criteria. For any other parameters, EPA 

may conduct testing using either of the 

specified procedures. 

* * * * * 

Subpart K—[Amended] 

43. Section 91.1010 is amended by 

adding paragraph (c) to read as follows: 

§ 91.1010 Granting of exemptions. 

* * * * * 

(c) Manufacturers may ask EPA to 

apply the provisions of 40 CFR 

1068.201(i) to engines exempted or 

excluded under this subpart. 

44. A new § 91.1013 is added to 

subpart K to read as follows: 

§ 91.1013 Exemption for certified Small SI 

engines. 

The provisions of 40 CFR 1045.605 

apply for engines subject to the 

standards of this part 91. This generally 

allows manufacturers to use marine 

engines that have been certified to 

emission standards for nonroad sparkignition engines below 19 kW without 

recertifying those engines under this 

part 91. 

45. A new part 1027 is added to 

subchapter U of chapter I to read as 

follows: 

PART 1027—FEES FOR ENGINE, 

VEHICLE, AND EQUIPMENT 

COMPLIANCE PROGRAMS 

Sec. 

1027.101 To whom do these requirements 

apply? 

1027.105 How much are the fees? 

1027.110 What special provisions apply for 

certification related to motor vehicles? 

1027.115 What special provisions apply for 

certification related to nonroad and 

stationary engines? 

1027.120 Can I qualify for reduced fees? 

1027.125 Can I get a refund? 

1027.130 How do I make a fee payment? 

1027.135 What provisions apply to a 

deficient filing? 

1027.140 What reporting and recordkeeping 

requirements apply under this part? 

1027.150 What definitions apply to this 

subpart? 

1027.155 What abbreviations apply to this 

subpart? 

Authority: 42 U.S.C. 7401—7671q. 

§ 1027.101 To whom do these 

requirements apply? 

(a) This part prescribes fees 

manufacturers must pay for activities 

related to EPA’s engine, vehicle, and 

equipment compliance program 

(EVECP). This includes activities related 

to approving certificates of conformity 

and performing tests and taking other 

steps to verify compliance with 

emission standards. You must pay fees 

as described in this part if you are a 

manufacturer of any of the following 

products: 

(1) Motor vehicles and motor vehicle 

engines we regulate under 40 CFR part 

86. This includes light-duty vehicles, 

light-duty trucks, medium-duty 

passenger vehicles, highway 

motorcycles, and heavy-duty highway 

engines and vehicles. 

(2) The following nonroad engines 

and equipment: 

(i) Locomotives and locomotive 

engines we regulate under 40 CFR part 

92 or 1033. 

(ii) Nonroad compression-ignition 

engines we regulate under 40 CFR part 

89 or 1039. 

(iii) Marine compression-ignition 

engines we regulate under 40 CFR part 

94 or 1042. 

(iv) Marine spark-ignition engines and 

vessels we regulate under 40 CFR part 

91, 1045, or 1060. We refer to these as 

Marine SI engines. 

(v) Nonroad spark-ignition engines 

above 19 kW we regulate under 40 CFR 

part 1048. We refer to these as Large SI 

engines. 

(vi) Recreational vehicles we regulate 

under 40 CFR part 1051. 

(vii) Nonroad spark-ignition engines 

and equipment at or below 19 kW we 

regulate under 40 CFR part 90, 1054, or 

1060. We refer to these as Small SI 

engines. 

(3) The following stationary internal 

combustion engines: 

(i) Stationary compression-ignition 

engines we certify under 40 CFR part 

60, subpart IIII. 

(ii) Stationary spark-ignition engines 

we certify under 40 CFR part 60, subpart 

JJJJ. 

(b) This part applies to applications 

for certification that we receive on or 

after [EFFECTIVE DATE FOR FINAL 

RULE]. Earlier applications are subject 

to the provisions of 40 CFR part 85, 

subpart Y, as that provision read prior 

to [EFFECTIVE DATE FOR FINAL 

RULE]. 

(c) Nothing in this part limits our 

authority to conduct testing or to require 

you to conduct testing as provided in 

the Act, including our authority to 

require you to conduct in-use testing 

under section 208 of the Act (42 U.S.C. 

7542). 

(d) Paragraph (a) of this section 

identifies the parts of the CFR that 

define emission standards and other 

requirements for particular types of 

engines and vehicles. This part 1027 

refers to each of these other parts 

generically as the ‘‘standard-setting 

part.’’ For example, 40 CFR part 1051 is 

always the standard-setting part for 

recreational vehicles. For some nonroad 

engines, we allow for certification 

related to evaporative emissions 

separate from exhaust emissions. In this 

case, 40 CFR part 1060 is the standardsetting part for the equipment or fuel 

system components you produce. 

§ 1027.105 How much are the fees? 

(a) Fees are determined based on the 

date we receive a complete application 

for certification. Each reference to a year 

in this subpart refers to the calendar 

year, unless otherwise specified. 

Paragraph (b) of this section specifies 

baseline fees, which applied for 

certificates received in 2005. For engine 

and vehicles not yet subject to standards 

in 2005, these values represent the fees 

that apply initially based on available 

information to characterize what the 

fees would have been in 2005. See 

paragraph (c) of this section for 

provisions describing how we calculate 

fees for future years. 

(b) The following baseline fees for 

each application for certification: 

(1) Except as specified in paragraph 

(b)(2) of this section for Independent 

Commercial Importers, the following 

fees apply for motor vehicles and motor 

vehicle engines: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28257 

Category Certificate type Fee 

(i) Light-duty vehicles and trucks ................................................................................. Federal ...................................................... $33,883 

(ii) Light-duty vehicles and trucks ................................................................................ California-only ........................................... 16,944 

(iii) Medium-duty passenger vehicles ........................................................................... Federal ...................................................... 33,883 

(iv) Medium-duty passenger vehicles .......................................................................... California-only ........................................... 16,944 

(v) Highway motorcycle ................................................................................................ All .............................................................. 2,414 

(vi) Heavy-duty highway engine ................................................................................... Federal ...................................................... 21,578 

(vii) Heavy-duty highway engine .................................................................................. California-only ........................................... 826 

(viii) Complete heavy-duty highway vehicles ............................................................... Federal ...................................................... 33,883 

(ix) Complete heavy-duty highway vehicles ................................................................. California-only ........................................... 16,944 

(x) Heavy-duty vehicle .................................................................................................. Evap .......................................................... 826 

(2) A fee of $8,387 applies for 

Independent Commercial Importers 

with respect to the following motor 

vehicles: 

(i) Light-duty vehicles and light-duty 

trucks. 

(ii) Medium-duty passenger vehicles. 

(iii) Complete heavy-duty highway 

vehicles. 

(3) The following fees apply for 

nonroad and stationary engines, 

vehicles, equipment, and components: 

Category Certificate type Fee 

(i) Locomotives and locomotive engines ...................................................................... All .............................................................. $826 

(ii) Marine compression-ignition engines and stationary compression-ignition engines with per-cylinder displacement at or above 10 liters.All, including Annex VI .............................. 826 

(iii) Other nonroad compression-ignition engines and stationary compression-ignition engines with per-cylinder displacement below 10 liters.All .............................................................. 1,822 

(iv) Large SI engines .................................................................................................... All .............................................................. 826 

(v) Marine SI engines and Small SI engines ............................................................... Exhaust only ............................................. 826 

(vi) Recreational vehicles ............................................................................................. Exhaust (or combined exhaust and evap) 826 

(vii) Stationary spark-ignition engines .......................................................................... Exhaust (or combined exhaust and evap) 826 

(viii) Equipment and fuel system components associated with nonroad and stationary spark-ignition engines.Evap (where separate certification is required).241 

(c) We will calculate adjusted fees for 

later years based on changes in the 

Consumer Price Index and the number 

of certificates. We will announce 

adjusted fees for a given year by January 

31 of the preceding year. 

(1) We will adjust the values specified 

in paragraph (b) of this section for later 

years as follows: 

(i) Use the fee identified in 

§ 1027.105(b)(3) through 2014 for 

certification related to evaporative 

emissions from nonroad and stationary 

engines when a separate fee applies for 

certification to evaporative emission 

standards. Use the following equation 

starting with 2015: 

Certificate FeeCY = [(Op + L) · (CPICY-2/ 

CPI2006)] · 1.169/[(cert#MY-2 + 

cert#MY-3) · 0.5] 

Where: 

Certificate FeeCY = Fee per certificate for a 

given year. 

Op = operating costs are all of EPA’s 

nonlabor costs for each category’s 

compliance program, including any fixed 

costs associated with EPA’s testing 

laboratory, as described in paragraph 

(d)(1) of this section. 

L = the labor costs, to be adjusted by the 

Consumer Price Index, as described in 

paragraph (d)(1) of this section. 

CPICY-2 = the Consumer Price Index for the 

month of November two years before the 

applicable calendar year, as described in 

paragraph (d)(2) of this section. 

CPI2006 = 201.8. This is based on the October 

2006 value of the Consumer Price Index. 

OH = 1.169. This is based on EPA overhead, 

which is applied to all costs. 

cert#MY-2 = the total number of certificates 

issued for a fee category in the model 

year two years before the calendar year 

for the applicable fees as described in 

paragraph (d)(3) of this section. 

cert#MY-3 = the total number of certificates 

issued for a fee category in the model 

year three years before the calendar year 

for the applicable fees as described in 

paragraph (d)(3) of this section. 

(ii) Use the following equation for all 

other certificates for 2006 and later: 

Certificate FeeCY = [Op + L · (CPICY-2/ 

CPI2002)] · 1.169/[(cert#MY-2 + 

cert#MY-3) · 0.5] 

Where: 

CPI2002 = 180.9. This is based on the 

December 2002 value of the Consumer 

Price Index as described in paragraph 

(d)(2) of this section. 

(2) The fee for any year will remain 

at the previous year’s amount until the 

value calculated in paragraph (c)(1) of 

this section differs by at least $50 from 

the amount specified for the previous 

year. 

(d) Except as specified in 

§ 1027.110(a) for motor vehicles and 

motor vehicle engines, we will use the 

following values to determine adjusted 

fees using the equation in paragraph (c) 

of this section: 

(1) The following values apply for 

operating costs and labor costs: 

Engine or vehicle category Op L 

(i) Light-duty, medium-duty passenger, and complete heavy-duty highway vehicle certification ........................... $3,322,039 $2,548,110 

(ii) Light-duty, medium-duty passenger, and complete heavy-duty highway vehicle in-use testing ....................... 2,858,223 2,184,331 

(iii) Independent Commercial Importers identified in § 1027.105(b)(2) ................................................................... 344,824 264,980 

(iv) Highway motorcycles ......................................................................................................................................... 225,726 172,829 

(v) Heavy-duty highway engines ............................................................................................................................. 1,106,224 1,625,680 

(vi) Nonroad compression-ignition engines ............................................................................................................. 486,401 545,160 

(vii) Evaporative certificates related to nonroad and stationary engines ................................................................ 5,039 236,670 

(viii) All other ............................................................................................................................................................ 177,425 548,081 


sroberts on PROD1PC70 with PROPOSALS
28258 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(2) The applicable Consumer Price 

Index is based on the values published 

by the Bureau of Labor Statistics for all 

U.S. cities using the ‘‘U.S. city average’’

area, ‘‘all items,’’ and ‘‘not seasonally 

adjusted’’ numbers (see ftp://ftp.bls.gov/ 

pub/special.requests/cpi/cpiai.txt). For 

example, we calculated the 2006 fees 

using the Consumer Price Index for 

November 2004, which is 191.0. 

(3) Fee categories for counting the 

number of certificates issued are based 

on the grouping shown in paragraph 

(d)(1) of this section. 

(e) The following example for 

calculating the 2006 complete federal 

heavy duty highway vehicle fee 

illustrates the fee adjustment: 

Op = $1,106,224 

L = $1,625,680 

CPI2002 = 180.9 

CPI2004 = 191.0 

cert#2004 = 131 

cert#2003 = 95 

Fee06 = [$1,106,224 + $1,625,680 ·

(191.0/180.9)] · 1.169/[(131+95) ·

0.5] = $29,200.88 

Assessed Fee = $29,201 

§ 1027.110 What special provisions apply 

for certification related to motor vehicles? 

(a) We will adjust fees for 2006 and 

later years for light-duty, medium-duty 

passenger, and complete heavy-duty 

highway vehicles as follows: 

(1) California-only certificates. 

Calculate adjusted fees for Californiaonly certificates by applying the lightduty, medium-duty passenger, and 

complete heavy-duty highway vehicle 

certification Op and L values to the 

equation in § 1027.105(c). The total 

number of certificates issued will be the 

total number of California-only and 

federal light-duty, medium-duty 

passenger, and complete heavy-duty 

highway vehicle certificates issued 

during the appropriate model years. 

(2) Federal certificates. Calculate 

adjusted fees for federal certificates with 

the following three steps: 

(i) Apply the light-duty, medium-duty 

passenger, and complete heavy-duty 

highway vehicle certification Op and L 

values to the equation in § 1027.105(c) 

to determine the certification portion of 

the light-duty fee. The total number of 

certificates issued will be the total 

number of California-only and federal 

light-duty, medium-duty passenger and 

complete heavy-duty highway vehicle 

certificates issued during the 

appropriate model years. 

(ii) Apply the light-duty, mediumduty passenger, and complete heavyduty highway vehicle in-use testing Op 

and L values to the equation in 

§ 1027.105(c) to determine the in-use 

testing portion of the fee. The total 

number of certificates issued will be the 

total number of federal light-duty, 

medium-duty passenger, and complete 

heavy-duty highway vehicle certificates 

issued during the appropriate model 

years. 

(iii) Add the certification and in-use 

testing portions determined in 

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

section to determine the total light-duty, 

medium-duty passenger, and complete 

heavy-duty highway vehicle fee for each 

federal certificate. 

(b) For light-duty vehicles, light-duty 

trucks, medium-duty passenger 

vehicles, highway motorcycles, and 

complete heavy-duty highway vehicles 

subject to exhaust emission standards, 

the number of certificates issued as 

specified in § 1027.105(d)(3) is based 

only on engine families with respect to 

exhaust emissions. A separate fee 

applies for each evaporative family for 

heavy-duty engines. 

(c) If you manufacture a heavy-duty 

vehicle that another company has 

certified as an incomplete vehicle such 

that you exceed the maximum fuel tank 

size specified by the original 

manufacturer in the applicable 

certificate of conformity, you must 

submit a new application for 

certification and certification fee for the 

vehicle. 

§ 1027.115 What special provisions apply 

for certification related to nonroad and 

stationary engines? 

(a) For nonroad spark-ignition engines 

above 19 kW that we regulate under 40 

CFR part 1048 and for all compressionignition engines, the applicable fee is 

based only on engine families with 

respect to exhaust emissions. 

(b) For manufacturers certifying 

recreational vehicles with respect to 

both exhaust and evaporative emission 

standards, fees are determined using 

one of the following approaches: 

(1) If your engine family includes 

demonstration of compliance with both 

exhaust and evaporative emission 

standards, the applicable fee is based on 

certification related to the combined 

family. No separate fee applies for 

certification with respect to evaporative 

emission standards. These are all 

considered engine families complying 

with exhaust emissions for determining 

the number of certificates for calculating 

fees for later years. 

(2) If you have separate families for 

demonstrating compliance with exhaust 

and evaporative emission standards, a 

separate fee from the appropriate fee 

category applies for each unique family. 

Also, the number of certificates issued 

as specified in § 1027.105(d)(3) is based 

on a separate count of emission families 

for exhaust and evaporative emissions 

for each respective fee category. 

(c) For manufacturers certifying other 

spark-ignition engines or equipment 

with respect to exhaust and evaporative 

emission standards, a separate fee from 

the appropriate fee category applies for 

each unique family. A single engine or 

piece of equipment may involve 

separate emission families and 

certification fees for exhaust and 

evaporative emissions. Also, the number 

of certificates issued as specified in 

§ 1027.105(d)(3) is based on a separate 

count of emission families for exhaust 

and evaporative emissions for each 

respective fee category. 

(d) For any certification related to 

evaporative emissions from engines, 

equipment, or components not covered 

by paragraph (a) through (c) of this 

section, the fee applies for each certified 

product independent of certification for 

exhaust emissions, as illustrated in the 

following examples: 

(1) A fuel tank certified to meet 

permeation and diurnal emission 

standards would count as a single 

family for assessing the certification fee 

and for calculating fee amounts for 

future years. 

(2) If an equipment manufacturer 

applies for certification to generate or 

use emission credits for fuel, tanks and 

fuel lines, each affected fuel-tank and 

fuel-line family would count as a single 

family for assessing the certification fee 

and for calculating fee amounts for 

future years. This fee applies whether or 

not the equipment manufacturer is 

applying for certification to demonstrate 

compliance with another emission 

standard, such as running losses. 

(e) If you certify fuel system 

components under 40 CFR part 1060, a 

single fee applies for each emission 

family even if those components are 

used with different types of nonroad or 

stationary engines. 

(f) If your application for certification 

relates to emission standards that apply 

only in California, you must pay the 

same fee identified for meeting EPA 

standards. 

(g) For marine compression-ignition 

engines, if you apply for a federal 

certificate and an Annex VI certificate 

for the same engine family, a single fee 

applies for the engine family (see 40 

CFR parts 94 and 1042). 

(h) If you produce engines for 

multiple categories in a single engine 

family, a single fee applies for the 

engine family. For example, 40 CFR 

60.4210 allows you to produce 

stationary and nonroad compressionignition engines in a single engine 

family. If the certification fee for the 

different types of engines is different, 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28259 

the fee that applies for these engines is 

based on the emission standards to 

which you certify the engine family. For 

example, if you certify marine diesel 

engines to the standards that apply to 

land-based nonroad diesel engines 

under 40 CFR 94.912, the certification 

fee is based on the rate that applies for 

land-based nonroad diesel engines. 

§ 1027.120 Can I qualify for reduced fees? 

(a) Eligibility requirements. To be 

eligible for a reduced fee, the following 

conditions must be satisfied: 

(1) The certificate is to be used for 

sale of vehicles or engines within the 

United States; and 

(2) The full fee for an application for 

certification for a model year exceeds 

1.0% of the aggregate projected retail 

sales price of all vehicles or engines 

covered by that certificate. 

(b) Initial reduced fee calculation. (1) 

If the requirements of paragraph (a) of 

this section are satisfied, the initial fee 

paid shall be $750 or 1.0% of the 

aggregate projected retail sales price of 

all the vehicles or engines to be covered 

by the certification application, 

whichever is greater. 

(2) For vehicles or engines that are 

converted to operate on an alternative 

fuel, using as the basis for the 

conversion a vehicle or engine which is 

covered by an existing certificate of 

conformity, the cost basis used in this 

section must be the aggregate projected 

retail value-added to the vehicle or 

engine by the conversion rather than the 

full cost of the vehicle or engine. To 

qualify for this provision, the existing 

certificate must cover the same sales 

area and model year as the requested 

certificate for the converted vehicle or 

engine. 

(3) For ICI certification applications, 

the cost basis of this section shall be the 

aggregate projected retail cost of the 

entire vehicle(s) or engine(s), not just 

the value added by the conversion. If 

the vehicles/engines covered by an ICI 

certificate are not being offered for sale, 

the manufacturer shall use the fair retail 

market value of the vehicles/engines as 

the retail sale price required in this 

section. For an ICI application for 

certification, the retail sales price (or 

fair retail market value) must be based 

on the applicable National Automobile 

Dealer’s Association (NADA) appraisal 

guide and/or other evidence of the 

actual market value. 

(4) The aggregate cost used in this 

section must be based on the total 

projected sales of all vehicles and 

engines under a certificate, including 

vehicles and engines modified under 

the modification and test option in 40 

CFR 85.1509 and 89.609. The projection 

of the number of vehicles or engines to 

be covered by the certificate and their 

projected retail selling price must be 

based on the latest information available 

at the time of the fee payment. 

(5) A manufacturer may submit a 

reduced fee as described in this section 

if it is accompanied by a calculation of 

the fee based on the number of vehicles 

covered and the projected aggregate 

retail sales price as specified on the fee 

filing form. The reduced fee calculation 

shall be deemed approved unless EPA 

determines that the criteria of this 

section have not been met. The Agency 

may make such a determination either 

before or after EPA issues a certificate of 

conformity. If the Agency determines 

that the requirements of this section 

have not been met, EPA may deny 

future reduced fee applications and 

require submission of the full fee 

payment until such time as the 

manufacturer demonstrates to the 

satisfaction of the Administrator that its 

reduced fee submissions are based on 

accurate data and that final fee 

payments are made within 45 days of 

the end of the model year. 

(6) If the reduced fee is denied by the 

Administrator, the applicant will have 

30 days from the date of notification of 

the denial to submit the appropriate fee 

to EPA. 

(c) Revision of the number of vehicles 

or engines covered by the certificate. (1) 

If after the original certificate, including 

a certificate under which modification 

and test vehicles are imported under 40 

CFR 85.1509 and 89.609, is issued, the 

number of vehicles or engines to be 

produced or imported under the 

certificate exceeds the number indicated 

on the certificate, the manufacturer or 

importer shall—

(i) Request that EPA revise the 

certificate with a number that indicates 

the new projection of the vehicles or 

engines to be covered by the certificate. 

The revised certificate must be applied 

for, revised and issued before the 

vehicles or engines are sold or finally 

imported into the United States; and 

(ii) Submit payment of 1.0% of the 

aggregate projected retail sales price of 

all the vehicles or engines above the 

number of vehicles or engines listed on 

the certificate to be covered by the 

application for certification. 

(2) A manufacturer must receive a 

revised certificate prior to the sale or 

final importation of any vehicles or 

engines, including modification and test 

vehicles, that are not originally included 

in the certificate issued under paragraph 

(b) of this section, or as indicated in a 

revised certificate issued under 

paragraph (c)(1) of this section. In the 

event that a certificate is not timely 

revised such additional vehicles or 

engines are not covered by a certificate 

of conformity. 

(d) Final reduced fee calculation and 

adjustment. (1) If the initial fee payment 

is less than the final reduced fee, then 

the manufacturer shall pay the 

difference between the initial reduced 

fee and the final reduced fee using the 

provisions of § 1027.130. The final 

reduced fee shall be calculated using the 

procedures of paragraph (c) of this 

section but using actual production 

figures rather than projections and 

actual retail sales value rather than 

projected retail sales value. 

(2) This payment shall be paid within 

45 days of the end of the model year. 

The total fees paid for a certificate shall 

not exceed the applicable full fee of 

§ 1027.105. If a manufacturer fails to 

make complete payment with 45 days 

then the Agency may void ab initio the 

applicable certificate. EPA may also 

refuse to grant reduced fee requests 

submitted under paragraph (b)(5) of this 

section. 

(3) If the initial fee payment exceeds 

the final reduced fee then the 

manufacturer may request a refund 

using the procedures of § 1027.125. 

(e) Records retention. Manufacturers 

are subject to the applicable 

maintenance of records requirements of 

40 CFR part 86, subpart A. If a 

manufacturer fails to maintain the 

records or provide such records to EPA 

as required then EPA may void the 

certificate for which such records shall 

be kept. Manufacturers must retain in 

their records the basis used to calculate 

the projected sales and fair retail market 

value and the actual sales and retail 

price for the vehicles and engines 

covered by each certificate that is issued 

under the reduced fee provisions of this 

section. This information must be 

retained for a period of at least three 

years after the issuance of the certificate 

and must be provided to the Agency 

within 30 days of request. 

§ 1027.125 Can I get a refund? 

(a) We will refund the total fee 

imposed under this part if you ask for 

a refund after failing to get a certificate 

for any reason. 

(b) If your actual sales or the actual 

retail prices in a given year are less than 

you projected for calculating a reduced 

fee under § 1027.120, we will refund the 

appropriate portion of the fee. We will 

also refund a portion of the initial 

payment if it exceeds the final fee for 

the engines, vehicles, or equipment 

covered by the certificate application. 

(1) You are eligible for a partial refund 

related to a certificate only if you sold 


sroberts on PROD1PC70 with PROPOSALS
28260 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

engines, vehicles, or equipment under 

that certificate in the United States. 

(2) Include all the following in your 

request for a partial refund of reduced 

fee payments: 

(i) State that you sold engines, 

vehicles, or equipment under the 

applicable certificate in the United 

States. 

(ii) Identify the number of engines, 

vehicles, or equipment you produced or 

imported under the certificate, and 

whether the engines, vehicles, or 

equipment have been sold. 

(iii) Identify the reduced fee that you 

paid under the applicable certificate. 

(iv) Identify the actual retail sales 

price for the engines, vehicles, or 

equipment produced or imported under 

the certificate. 

(v) Calculate the final value of the 

reduced fee using actual production 

figures and retail prices. 

(vi) Calculate the refund amount. 

(c) We will approve your request to 

correct errors in the amount of the fee. 

(d) All refunds must be applied for 

within six months of the end of the 

model year. 

(e) Send refund and correction 

requests to the Fee Program Specialist, 

U.S. Environmental Protection Agency, 

Vehicle Programs and Compliance 

Division, 2000 Traverwood Dr., Ann 

Arbor, MI 48105, online at 

www.Pay.gov., or as specified in 

guidance by the Administrator. 

(e) You may request to have refund 

amounts applied to the amount due on 

another application for certification. 

§ 1027.130 How do I make a fee payment? 

(a) Pay fees to the order of the 

Environmental Protection Agency in 

U.S. dollars using any of the following 

methods: money order, bank draft, 

certified check, corporate check, 

electronic funds transfer, any method 

available for payment online at 

www.Pay.gov, or as specified in EPA 

guidance 

(b) Send a completed fee filing form 

to the address designated on the form 

for each fee payment or electronically at 

www.Pay.gov, or as provided in EPA 

guidance. These forms are available on 

the Internet at http://www.epa.gov/otaq/ 

guidance.htm. 

(c) You must pay the fee amount due 

before we will start to process an 

application for certification. 

(d) If we deny a reduced fee, you must 

pay the proper fee within 30 days after 

we notify you of our decision. 

§ 1027.135 What provisions apply to a 

deficient filing? 

(a) Any filing under this part is 

deficient if it is not accompanied by a 

completed fee filing form and full 

payment of the appropriate fee. 

(b) A deficient filing will be rejected 

unless the completed form and full 

payment are submitted within a time 

limit we specify. We will not process an 

application for certification if the 

associated filing is deficient. 

§ 1027.140 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for engines, vehicles, and equipment 

regulated under this part: 

(a) Filling out fee filing forms under 

§ 1027.130. 

(b) Retaining fee records, including 

reduced fee documentation, under 

§ 1027.120. 

§ 1027.150 What definitions apply to this 

subpart? 

The definitions in this section apply 

to this part. As used in this part, all 

undefined terms have the meaning the 

Act or the standard-setting part gives to 

them. The definitions follow: 

Annex VI means MARPOL Annex VI, 

which is an annex to the International 

Convention on the Prevention of 

Pollution from Ships, 1973, as modified 

by the protocol of 1978 relating thereto. 

This is an international treaty regulating 

disposal of waste products from marine 

vessels. 

Application for Certification means a 

manufacturer’s submission of an 

application for certification. 

California-only certificate is a 

certificate of conformity issued by EPA 

showing compliance with emission 

standards established by California. 

Federal certificate is a certificate of 

conformity issued by EPA showing 

compliance with EPA emission 

standards specified in one of the 

standard-setting parts specified in 

§ 1027.101(a). 

Light-duty means relating to lightduty vehicles and light-duty trucks. 

Manufacturer has the meaning given 

in section 216(1) of the Act. In general, 

this term includes any person who 

manufactures an engine, vehicle, vessel, 

or piece of equipment for sale in the 

United States or otherwise introduces a 

new engine, vehicle, vessel, or piece of 

equipment into commerce in the United 

States. This includes importers who 

import such products for resale, but not 

dealers. 

Total number of certificates issued 

means the number of certificates for 

which fees have been paid. This term is 

not intended to represent multiple 

certificates that are issued within a 

single family or test group. 

Void has the meaning given in 40 CFR 

1068.30. 

We (us, our) means the Administrator 

of the Environmental Protection Agency 

and any authorized representatives. 

§ 1027.155 What abbreviations apply to 

this subpart? 

The following symbols, acronyms, 

and abbreviations apply to this part: 

CFR Code of Federal Regulations 

EPA U.S. Environmental Protection 

Agency 

Evap Evaporative Emissions 

ICI Independent Commercial Importer 

46. A new part 1045 is added to 

subchapter U of chapter I to read as 

follows: 

PART 1045 CONTROL OF EMISSIONS 

FROM SPARK-IGNITION PROPULSION 

MARINE ENGINES 

Subpart A Overview and Applicability 

Sec. 

1045.1 Does this part apply for my 

products? 

1045.2 Who is responsible for compliance? 

1045.5 Which engines are excluded from 

this part’s requirements? 

1045.10 How is this part organized? 

1045.15 Do any other regulation parts apply 

to me? 

1045.20 What requirements apply to my 

vessels? 

1045.25 How do the requirements related to 

evaporative emissions apply to engines 

and their fuel systems? 

Subpart B Emission Standards and 

Related Requirements 

1045.101 What exhaust emission standards 

and requirements must my engines 

meet? 

1045.103 What exhaust emission standards 

must my outboard and personal 

watercraft engines meet? 

1045.105 What exhaust emission standards 

must my sterndrive/inboard engines 

meet? 

1045.107 What are the standards for 

evaporative emissions? 

1045.110 How must my engines diagnose 

malfunctions? 

1045.115 What other requirements apply? 

1045.120 What emission-related warranty 

requirements apply to me? 

1045.125 What maintenance instructions 

must I give to buyers? 

1045.130 What installation instructions 

must I give to vessel manufacturers? 

1045.135 How must I label and identify the 

engines I produce? 

1045.140 What is my engine’s maximum 

engine power? 

1045.145 Are there interim provisions that 

apply only for a limited time? 

Subpart C—Certifying Engine Families 

1045.201 What are the general requirements 

for obtaining a certificate of conformity? 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28261 

1045.205 What must I include in my 

application? 

1045.210 May I get preliminary approval 

before I complete my application? 

1045.220 How do I amend the maintenance 

instructions in my application? 

1045.225 How do I amend my application 

for certification to include new or 

modified engines or change an FEL? 

1045.230 How do I select engine families? 

1045.235 What emission testing must I 

perform for my application for a 

certificate of conformity? 

1045.240 How do I demonstrate that my 

engine family complies with exhaust 

emission standards? 

1045.245 How do I determine deterioration 

factors from exhaust durability testing? 

1045.250 What records must I keep and 

what reports must I send to EPA? 

1045.255 What decisions may EPA make 

regarding my certificate of conformity? 

Subpart D—Testing Production-line 

Engines 

1045.301 When must I test my productionline engines? 

1045.305 How must I prepare and test my 

production-line engines? 

1045.310 How must I select engines for 

production-line testing? 

1045.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

1045.320 What happens if one of my 

production-line engines fails to meet 

emission standards? 

1045.325 What happens if an engine family 

fails the production-line testing 

requirements? 

1045.330 May I sell engines from an engine 

family with a suspended certificate of 

conformity? 

1045.335 How do I ask EPA to reinstate my 

suspended certificate? 

1045.340 When may EPA revoke my 

certificate under this subpart and how 

may I sell these engines again? 

1045.345 What production-line testing 

records must I send to EPA? 

1045.350 What records must I keep? 

Subpart E—In-use Testing 

1045.401 What testing requirements apply 

to my engines that have gone into 

service? 

1045.405 How does this program work? 

1045.410 How must I select, prepare, and 

test my in-use engines? 

1045.415 What happens if in-use engines 

do not meet requirements? 

1045.420 What in-use testing information 

must I report to EPA? 

1045.425 What records must I keep? 

Subpart F—Test Procedures 

1045.501 How do I run a valid emission 

test? 

1045.505 How do I test engines using 

discrete-mode or ramped-modal duty 

cycles? 

1045.515 What are the test procedures 

related to not-to-exceed standards? 

1045.520 What testing must I perform to 

establish deterioration factors? 

Subpart G—Special Compliance Provisions 

1045.601 What compliance provisions 

apply to these engines? 

1045.605 What provisions apply to engines 

already certified under the motor-vehicle 

program or other nonroad spark-ignition 

engine programs? 

1045.620 What are the provisions for 

exempting engines used solely for 

competition? 

1045.630 What is the personal-use 

exemption? 

1045.635 What special provisions apply for 

small-volume engine manufacturers? 

1045.640 What special provisions apply to 

branded engines? 

1045.645 What special provisions apply for 

converting an engine to use an alternate 

fuel? 

1045.650 Do the provisions of 40 CFR 

1068.260 apply for marine engines? 

1045.660 How do I certify outboard or 

personal watercraft engines for use in jet 

boats? 

Subpart H—Averaging, Banking, and 

Trading for Certification 

1045.701 General provisions. 

1045.705 How do I generate and calculate 

exhaust emission credits? 

1045.706 How do I generate and calculate 

evaporative emission credits? 

1045.710 How do I average emission 

credits? 

1045.715 How do I bank emission credits? 

1045.720 How do I trade emission credits? 

1045.725 What must I include in my 

application for certification? 

1045.730 What ABT reports must I send to 

EPA? 

1045.735 What records must I keep? 

1045.745 What can happen if I do not 

comply with the provisions of this 

subpart? 

Subpart I—Definitions and Other Reference 

Information 

1045.801 What definitions apply to this 

part? 

1045.805 What symbols, acronyms, and 

abbreviations does this part use? 

1045.810 What materials does this part 

reference? 

1045.815 What provisions apply to 

confidential information? 

1045.820 How do I request a hearing? 

1045.825 What reporting and recordkeeping 

requirements apply under this part? 

Appendix I to Part 1045—Summary of 

Previous Emission Standards 

Appendix II to Part 1045—Duty Cycles for 

Propulsion Marine Engines 

Authority: 42 U.S.C. 7401—7671q. 

Subpart A—Overview and Applicability 

§ 1045.1 Does this part apply for my 

products? 

(a) Except as provided in § 1045.5, the 

regulations in this part 1045 apply as 

follows: 

(1) The requirements of this part 

related to exhaust emissions apply to 

new, spark-ignition propulsion marine 

engines beginning with the 2009 model 

year. 

(2) The requirements of this part 

related to evaporative emissions apply 

to fuel lines and fuel tanks used with 

marine engines that use a volatile liquid 

fuel (such as gasoline) beginning with 

the 2009 model year as specified in 40 

CFR part 1045.107. This includes fuel 

lines and fuel tanks used with auxiliary 

marine engines. This also includes 

portable marine fuel tanks and 

associated fuel lines. 

(b) We specify optional standards for 

certifying sterndrive/inboard engines 

before the 2009 model year in 

§ 1045.145(a). Engines certified to these 

standards are subject to all the 

requirements of this part as if these 

optional standards were mandatory. 

(c) See 40 CFR part 91 for 

requirements that apply to outboard and 

personal watercraft engines not yet 

subject to the requirements of this part 

1045. 

(d) The provisions of §§ 1045.620 and 

1045.801 apply for new engines used 

solely for competition beginning 

January 1, 2009. 

§ 1045.2 Who is responsible for 

compliance? 

The requirements and prohibitions of 

this part apply to manufacturers of 

engines and fuel-system components as 

described in § 1045.1. The requirements 

of this part are generally addressed to 

manufacturers subject to this part’s 

requirements. The term ‘‘you’’ generally 

means the certifying manufacturer. For 

provisions related to exhaust emissions, 

this generally means the engine 

manufacturer, especially for issues 

related to certification (including 

production-line testing, reporting, etc.). 

For provisions related to certification 

with respect to evaporative emissions, 

this generally means the manufacturer 

of fuel-system components. Vessel 

manufacturers must meet applicable 

requirements as described in § 1045.20. 

§ 1045.5 Which engines are excluded from 

this part’s requirements? 

(a) Auxiliary engines. The exhaust 

emission standards of this part do not 

apply to auxiliary marine engines. See 

40 CFR part 90, 1048, or 1054 for the 

exhaust emission standards that apply. 

(b) Hobby engines and vessels. This 

part does not apply with respect to 

reduced-scale models of vessels that are 

not capable of transporting a person. 

§ 1045.10 How is this part organized? 

This part 1045 is divided into the 

following subparts: 

(a) Subpart A of this part defines the 

applicability of this part 1045 and gives 

an overview of regulatory requirements. 


sroberts on PROD1PC70 with PROPOSALS
28262 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(b) Subpart B of this part describes the 

emission standards and other 

requirements that must be met to certify 

engines under this part. Note that 

§ 1045.145 discusses certain interim 

requirements and compliance 

provisions that apply only for a limited 

time. 

(c) Subpart C of this part describes 

how to apply for a certificate of 

conformity. 

(d) Subpart D of this part describes 

general provisions for testing 

production-line engines. 

(e) Subpart E of this part describes 

general provisions for testing in-use 

engines. 

(f) Subpart F of this part describes 

how to test your engines (including 

references to other parts of the Code of 

Federal Regulations). 

(g) Subpart G of this part and 40 CFR 

part 1068 describe requirements, 

prohibitions, and other provisions that 

apply to engine manufacturers, vessel 

manufacturers, owners, operators, 

rebuilders, and all others. 

(h) Subpart H of this part describes 

how you may generate and use exhaust 

and evaporative emission credits to 

certify your engines and vessels. 

(i) Subpart I of this part contains 

definitions and other reference 

information. 

§ 1045.15 Do any other regulation parts 

apply to me? 

(a) Part 1060 of this chapter describes 

standards and procedures that apply for 

evaporative emissions from engines 

fueled by gasoline or other volatile 

liquid fuels and the associated fuel 

systems. See § 1045.107 for information 

about how that part applies. 

(b) Part 1065 of this chapter describes 

procedures and equipment 

specifications for testing engines. 

Subpart F of this part 1045 describes 

how to apply the provisions of part 1065 

of this chapter to determine whether 

engines meet the emission standards in 

this part. 

(c) The requirements and prohibitions 

of part 1068 of this chapter apply to 

everyone, including anyone who 

manufactures, imports, installs, owns, 

operates, or rebuilds any of the engines 

subject to this part 1045, or vessels 

powered by these engines. Part 1068 of 

this chapter describes general 

provisions, including these seven areas: 

(1) Prohibited acts and penalties for 

engine manufacturers, vessel 

manufacturers, and others. 

(2) Rebuilding and other aftermarket 

changes. 

(3) Exclusions and exemptions for 

certain engines. 

(4) Importing engines. 

(5) Selective enforcement audits of 

your production. 

(6) Defect reporting and recall. 

(7) Procedures for hearings. 

(d) Other parts of this chapter apply 

if referenced in this part. 

§ 1045.20 What requirements apply to my 

vessels? 

(a) If you manufacture vessels with 

engines certified to the exhaust 

emission standards in this part, your 

vessels must meet all emission 

standards with the engine and fuel 

system installed. 

(b) You may need to certify your 

vessels or fuel systems as described in 

40 CFR 1060.1 and 1060.601. If you 

produce vessels subject to this part 

without obtaining a certificate, you must 

still meet the requirements of 40 CFR 

1060.101(e) and (f) and keep records as 

described in 40 CFR 1060.210. 

(c) You must identify and label 

vessels you produce under this section 

consistent with the requirements of 

§ 1045.135 and 40 CFR part 1060. 

(d) You must follow all emissionrelated installation instructions from the 

certifying manufacturers as described in 

§ 1045.130 and 40 CFR 1068.105. If you 

do not follow the installation 

instructions, we may consider your 

vessel to be not covered by the 

certificates of conformity. Introduction 

of such vessels into U.S. commerce 

violates 40 CFR 1068.101. 

§ 1045.25 How do the requirements related 

to evaporative emissions apply to engines 

and their fuel systems? 

(a) Engine manufacturers must 

provide the installation instructions 

required by § 1045.130 to the ultimate 

purchasers of the engine. These 

instructions may be combined with the 

maintenance instructions required by 

§ 1045.125. 

(b) Engines sold with attached fuel 

lines or installed fuel tanks must be 

covered by the appropriate certificates 

of conformity issued under 40 CFR part 

1060. 

(c) Fuel lines intended to be used 

with new engines and new portable fuel 

tanks must be certified to the applicable 

requirements of 40 CFR part 1060. 

(d) All persons installing engines 

certified under this part 1045 must 

follow the certifying manufacturer’s 

emission-related installation 

instructions (see § 1045.130 and 40 CFR 

1068.105). 

Subpart B—Emission Standards and 

Related Requirements 

§ 1045.101 What exhaust emission 

standards and requirements must my 

engines meet? 

(a) You must show that your engines 

meet the following requirements: 

(1) Outboard and personal watercraft 

engines must meet the exhaust emission 

standards in § 1045.103. 

(2) Sterndrive/inboard engines must 

meet the exhaust emission standards in 

§ 1045.105. Sterndrive/inboard engines 

may also meet the optional standards in 

§ 1045.145. 

(3) Sterndrive/inboard engines must 

meet the engine-diagnostic requirements 

in § 1045.110. 

(4) All engines must meet the 

requirements in § 1045.115. 

(b) It is important that you read 

§ 1045.145 to determine if there are 

other interim requirements or interim 

compliance provisions that apply for a 

limited time. 

§ 1045.103 What exhaust emission 

standards must my outboard and personal 

watercraft engines meet? 

(a) Emission standards. Starting in the 

2009 model year, exhaust emissions 

from your outboard and personal 

watercraft engines may not exceed 

emission standards as follows: 

(1) Measure emissions using the 

applicable steady-state test procedures 

described in subpart F of this part. 

(2) The exhaust emission standards 

from the following table apply: 

TABLE 1 TO § 1045.103—EMISSION STANDARDS FOR OUTBOARD AND PERSONAL WATERCRAFT ENGINES (G/KW-HR) 

Maximum Engine 

Power (P) HC+NOX CO 

P ≤ 40 kW .......................................................................................................................................................... 28 ¥ 0.3 × P .... 500 ¥ 5.0 × P 

P > 40 kW .......................................................................................................................................................... 16.0 .................. 300 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28263 

(3) For engines with maximum engine 

power at or below 40 kW, round the 

calculated HC+NOX emission standard 

to the nearest 0.1 g/kW-hr; round the 

calculated CO emission standard to the 

nearest g/kW-hr. 

(b) Averaging, banking, and trading. 

You may generate or use emission 

credits under the averaging, banking, 

and trading (ABT) program described in 

subpart H of this part for demonstrating 

compliance with HC+NOX emission 

standards. For CO emissions, you may 

generate or use emission credits for 

averaging as described in subpart H of 

this part, but not for banking or trading. 

To generate or use emission credits, you 

must specify a family emission limit for 

each pollutant you include in the ABT 

program for each engine family. These 

family emission limits serve as the 

emission standards for the engine family 

with respect to all required testing 

instead of the standards specified in this 

section. An engine family meets 

emission standards even if its family 

emission limit is higher than the 

standard, as long as you show that the 

whole averaging set of applicable engine 

families meets the emission standards 

using emission credits and the engines 

within the family meet the family 

emission limit. The following are the 

maximum values you may specify for 

family emission limits: 

(1) For engines with maximum engine 

power at or below 4.3 kW, the 

maximum value of the family emission 

limit for HC+NOX is 81.0 g/kW-hr. For 

all other engines, the maximum value of 

the family emission limit for HC+NOX is 

defined by the following formula, with 

results rounded to the nearest 0.1 g/kWhr: 

FELmax,HC∂NOX= 0.25(151 + 557/P0.9) + 

6.0. 

(2) For engines with maximum engine 

power above 40 kW, the maximum 

value of the family emission limit for 

CO is 450 g/kW-hr. For all other 

engines, the maximum value is defined 

by the following formula, with results 

rounded to the nearest g/kW-hr: 

FELmax,CO = 650 ¥ 5.0 × P 

(c) Not-to-exceed standards. Exhaust 

emissions may not exceed the not-toexceed standards, as follows: 

(1) Measure emissions using the notto-exceed procedures in subpart F of 

this part: 

(2) Determine the not-to-exceed 

standard, rounded to the same number 

of decimal places as the emission 

standard in Table 1 of this section, from 

the following equation: 

Not-to-exceed standard = (STD) × (M) 

Where: 

STD = The standard specified in paragraph 

(a) of this section if you certify without 

using ABT for that pollutant; or the FEL 

for that pollutant if you certify using 

ABT. 

M = The NTE multiplier for that pollutant, 

as defined in paragraph (c)(3) of this 

section. 

(3) Use one of the two sets of NTE 

multipliers from the following table 

across the applicable zone specified in 

§ 1045.515: 

TABLE 2 TO § 1045.103—NTE MULTIPLIERS FOR OUTBOARD AND PERSONAL WATERCRAFT ENGINES

Approach Pollutant Subzone 1 Subzone 2 Subzone 3 Subzone 4 

Primary ................................................................................. HC+NOX 1.20 1.20 1.20 1.60 

CO 1.50 1.50 1.50 1.50 

Alternative 1 ......................................................................... HC+NOX 2.00 0.80 0.80 2.00 

CO 3.00 1.50 1.00 1.00 

Alternative 2 ......................................................................... HC+NOX 1.00 1.00 1.00 3.00 

CO 1.50 1.00 1.00 2.00 

(d) Fuel types. The exhaust emission 

standards in this section apply for 

engines using the fuel type on which the 

engines in the engine family are 

designed to operate. You must meet the 

numerical emission standards for 

hydrocarbons in this section based on 

the following types of hydrocarbon 

emissions for engines powered by the 

following fuels: 

(1) Alcohol-fueled engines: THCE 

emissions. 

(2) Natural gas-fueled engines: NMHC 

emissions. 

(3) Other engines: THC emissions. 

(e) Useful life. Your engines must 

meet the exhaust emission standards in 

paragraphs (a) through (c) of this section 

over the full useful life as follows: 

(1) For outboard engines, the 

minimum useful life is 350 hours of 

engine operation or 10 years, whichever 

comes first. 

(2) For personal watercraft engines, 

the minimum useful life is 350 hours of 

engine operation or 5 years, whichever 

comes first. 

(3) You must specify a longer useful 

life in terms of hours for the engine 

family if the average service life of your 

vehicles is longer than the minimum 

value, as follows: 

(i) Except as allowed by paragraph 

(e)(3)(ii) of this section, your useful life 

(in hours) may not be less than either of 

the following: 

(A) Your projected operating life from 

advertisements or other marketing 

materials for any engines in the engine 

family. 

(B) Your basic mechanical warranty 

for any engines in the engine family. 

(ii) Your useful life may be based on 

the average service life of vehicles in the 

engine family if you show that the 

average service life is less than the 

useful life required by paragraph 

(e)(3)(i) of this section, but more than 

the minimum useful life (350 hours of 

engine operation). In determining the 

actual average service life of vehicles in 

an engine family, we will consider all 

available information and analyses. 

Survey data is allowed but not required 

to make this showing. 

(f) Applicability for testing. The dutycycle emission standards in this subpart 

apply to all testing performed according 

to the procedures in § 1045.505, 

including certification, production-line, 

and in-use testing. The not-to-exceed 

standards apply for all testing 

performed according to the procedures 

of subpart F of this part. 

§ 1045.105 What exhaust emission 

standards must my sterndrive/inboard 

engines meet? 

(a) Emission standards. Starting in the 

2009 model year, exhaust emissions 

from your sterndrive/inboard engines 

may not exceed emission standards as 

follows: 

(1) Measure emissions using the 

applicable steady-state test procedures 

described in subpart F of this part. 

(2) The exhaust emission standards 

from the following table apply: 


sroberts on PROD1PC70 with PROPOSALS
28264 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE 1 TO § 1045.105—EMISSION STANDARDS FOR STERNDRIVE/INBOARD ENGINES (G/KW-HR) 

Engine type HC+NOX CO 

Primary standard for sterndrive/inboard engines .................................................................................................... 5.0 75.0 

Alternate standards for high-performance engines ................................................................................................. 5.0 350 

(b) Averaging, banking, and trading. 

You may generate or use emission 

credits under the averaging, banking, 

and trading (ABT) program described in 

subpart H of this part for demonstrating 

compliance with HC+NOX and CO 

emission standards. To generate or use 

emission credits, you must specify a 

family emission limit for each pollutant 

you include in the ABT program for 

each engine family. These family 

emission limits serve as the emission 

standards for the engine family with 

respect to all required testing instead of 

the standards specified in this section. 

An engine family meets emission 

standards even if its family emission 

limit is higher than the standard, as long 

as you show that the whole averaging 

set of applicable engine families meets 

the emission standards using emission 

credits and the engines within the 

family meet the family emission limit. 

The following are the maximum values 

you may specify for family emission 

limits: 

(1) For high-performance engines, 

30.0 g/kW-hr for HC+NOX and 350 g/ 

kW-hr for CO. 

(2) For other engines, 16.0 g/kW-hr for 

HC+NOX and 150 g/kW-hr for CO. 

(c) Not-to-exceed standards. Exhaust 

emissions may not exceed the not-toexceed standards for all sterndrive/ 

inboard engines except highperformance engines, as follows: 

(1) Measure emissions using the notto-exceed procedures in subpart F of 

this part: 

(2) Determine the not-to-exceed 

standard, rounded to the same number 

of decimal places as the emission 

standard in Table 1 of this section from 

the following equation: 

Not-to-exceed standard = (STD) (M) 

Where: 

STD = The standard specified in paragraph 

(a) of this section if you certify without 

using ABT for that pollutant; or the FEL 

for that pollutant if you certify using 

ABT. 

M = The NTE multiplier for that pollutant, 

as defined in paragraph (c)(3) of this 

section. 

(3) Use the NTE multipliers from the 

following table across the applicable 

zone specified in § 1045.515: 

TABLE 2 TO § 1045.105—NTE MULTIPLIERS FOR STERNDRIVE/INBOARD ENGINES

Pollutant Subzone 1 Subzone 2 Subzone 3 Subzone 4 

HC+NOX ...... 1.50 1.00 1.00 1.50 

CO. .............. 3.50 1.00 1.00 1.00 

(d) Fuel types. The exhaust emission 

standards in this section apply for 

engines using the fuel type on which the 

engines in the engine family are 

designed to operate. You must meet the 

numerical emission standards for 

hydrocarbons in this section based on 

the following types of hydrocarbon 

emissions for engines powered by the 

following fuels: 

(1) Alcohol-fueled engines: THCE 

emissions. 

(2) Natural gas-fueled engines: NMHC 

emissions. 

(3) Other engines: THC emissions. 

(e) Useful life. Your engines must 

meet the exhaust emission standards in 

paragraphs (a) through (c) of this section 

over their full useful life, as follows: 

(1) For high-performance engines with 

maximum engine power above 485 kW, 

the minimum useful life is 50 hours of 

operation or 1 year, whichever comes 

first. For high-performance engines with 

maximum engine power at or below 485 

kW, the minimum useful life is 150 

hours of operation or 3 years, whichever 

comes first. 

(2) For all other engines, the 

minimum useful life is 480 hours of 

operation or ten years, whichever comes 

first. However, you may request in your 

application for certification that we 

approve a shorter useful life for an 

engine family. We may approve a 

shorter useful life, in hours of engine 

operation but not in years, if we 

determine that these engines will rarely 

operate longer than the shorter useful 

life. If engines identical to those in the 

engine family have already been 

produced and are in use, your 

demonstration must include 

documentation from such in-use 

engines. In other cases, your 

demonstration must include an 

engineering analysis of information 

equivalent to such in-use data, such as 

data from research engines or similar 

engine models that are already in 

production. Your demonstration must 

also include any overhaul interval that 

you recommend, any mechanical 

warranty that you offer for the engine or 

its components, and any relevant 

customer design specifications. Your 

demonstration may include any other 

relevant information. The useful life 

value may not be shorter than any of the 

following: 

(i) 150 hours of operation. 

(ii) Your recommended overhaul 

interval. 

(iii) Your mechanical warranty for the 

engine. 

(3) You must specify a longer useful 

life in terms of hours for the engine 

family if the average service life of your 

vehicles is longer than the minimum 

value, as follows: 

(i) Except as allowed by paragraph 

(e)(3)(ii) of this section, your useful life 

(in hours) may not be less than either of 

the following: 

(A) Your projected operating life from 

advertisements or other marketing 

materials for any engines in the engine 

family. 

(B) Your basic mechanical warranty 

for any engines in the engine family. 

(ii) Your useful life may be based on 

the average service life of vehicles in the 

engine family if you show that the 

average service life is less than the 

useful life required by paragraph 

(e)(3)(i) of this section, but more than 

the minimum useful life (480 hours of 

engine operation). In determining the 

actual average service life of vehicles in 

an engine family, we will consider all 

available information and analyses. 

Survey data is allowed but not required 

to make this showing. 

(f) Applicability for testing. The dutycycle emission standards in this section 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28265 

apply to all testing performed according 

to the procedures in § 1045.505, 

including certification, production-line, 

and in-use testing. The not-to-exceed 

standards apply for all testing 

performed according to the procedures 

of subpart F of this part. 

§ 1045.107 What are the standards for 

evaporative emissions? 

Fuel systems must meet the 

evaporative emission requirements of 40 

CFR part 1060 as specified in this 

section. The useful life of these 

standards is five years for personal 

watercraft and ten years for all other 

vessels. 

(a) Fuel line permeation. Nonmetal 

fuel lines must meet the permeation 

requirements specified in 40 CFR 

1060.102 for EPA NR fuel lines starting 

in the 2009 model year. Metal fuel lines 

are not subject to emission standards. 

(b) Tank permeation. Fuel tanks must 

meet the permeation requirements 

specified in 40 CFR 1060.103. Portable 

fuel tanks and fuel tanks for personal 

watercraft must meet permeation 

standards starting in the 2011 model 

year. Other installed fuel tanks must 

meet permeation standards starting in 

the 2012 model year. Vessel 

manufacturers may generate or use 

emission credits to show compliance 

with the requirements of this paragraph 

under the averaging, banking, and 

trading (ABT) program, as described in 

subpart H of this part. Starting in the 

2014 model year for personal watercraft 

and in the 2015 model year for other 

installed fuel tanks, family emission 

limits may not exceed 5.0 g/m2/day if 

testing occurs at a nominal temperature 

of 28° C, or 8.3 g/m2/day if testing 

occurs at a nominal temperature of 

40°C. Portable fuel tank manufacturers 

may not generate or use emission credits 

under subpart H of this part. See 

§ 1045.145(e) for special provisions 

related to the timing of these 

requirements. 

(c) Running loss. The running loss 

requirements specified in 40 CFR part 

1060 do not apply. 

(d) Diurnal emissions. Installed fuel 

tanks must meet the diurnal emission 

requirements specified in 40 CFR 

1060.105. Fuel tanks for personal 

watercraft must meet diurnal emission 

standards starting in the 2009 model 

year. Other installed fuel tanks must 

meet diurnal emission standards 

starting in the 2010 model year. Fuel 

tanks meeting the definition of portable 

marine fuel tank in § 1045.801 must 

comply with the diurnal requirements 

for portable nonroad fuel tanks in 40 

CFR part 1060 starting in the 2009 

model year. 

(e) Other requirements. The 

requirements of 40 CFR 1060.101(e) and 

(f) apply to vessel manufacturers even if 

they do not obtain a certificate. 

§ 1045.110 How must my engines 

diagnose malfunctions? 

The following engine-diagnostic 

requirements apply to sterndrive/ 

inboard engines only: 

(a) Equip your engines with a 

diagnostic system. Equip each engine 

with a diagnostic system that will detect 

significant malfunctions in its emission 

control system using one of the 

following protocols: 

(1) If your emission control strategy 

depends on maintaining air-fuel ratios 

at stoichiometry, an acceptable 

diagnostic design would identify 

malfunction whenever the air-fuel ratio 

does not cross stoichiometry for one 

minute of intended closed-loop 

operation. You may use other diagnostic 

strategies if we approve them in 

advance. 

(2) If the protocol described in 

paragraph (a)(1) of this section does not 

apply to your engine, you must use an 

alternative approach that we approve in 

advance. Your alternative approach 

must generally detect when the 

emission control system is not 

functioning properly. 

(3) Diagnostic systems approved by 

the California Air Resources Board for 

use with sterndrive/inboard engines 

fully satisfy the requirements of this 

section. 

(b) Use a malfunction-indicator light 

(MIL). The MIL must be readily visible 

to the operator; it may be any color 

except red. When the MIL goes on, it 

must display ‘‘Check Engine,’’ ‘‘Service 

Engine Soon,’’ or a similar message that 

we approve. You may use sound in 

addition to the light signal. The MIL 

must go on under each of these 

circumstances: 

(1) When a malfunction occurs, as 

described in paragraph (a) of this 

section. 

(2) When the diagnostic system 

cannot send signals to meet the 

requirement of paragraph (b)(1) of this 

section. 

(3) When the engine’s ignition is in 

the ‘‘key-on’’ position before starting or 

cranking. The MIL should go out after 

engine starting if the system detects no 

malfunction. 

(c) Control when the MIL can go out. 

If the MIL goes on to show a 

malfunction, it must remain on during 

all later engine operation until servicing 

corrects the malfunction. If the engine is 

not serviced, but the malfunction does 

not recur for three consecutive engine 

starts during which the malfunctioning 

system is evaluated and found to be 

working properly, the MIL may stay off 

during later engine operation. 

(d) Store trouble codes in computer 

memory. Record and store in computer 

memory any diagnostic trouble codes 

showing a malfunction that should 

illuminate the MIL. The stored codes 

must identify the malfunctioning system 

or component as uniquely as possible. 

Make these codes available through the 

data link connector as described in 

paragraph (g) of this section. You may 

store codes for conditions that do not 

turn on the MIL. The system must store 

a separate code to show when the 

diagnostic system is disabled (from 

malfunction or tampering). 

(e) Make data, access codes, and 

devices accessible. Make all required 

data accessible to us without any access 

codes or devices that only you can 

supply. Ensure that anyone servicing 

your engine can read and understand 

the diagnostic trouble codes stored in 

the onboard computer with generic tools 

and information. 

(f) Consider exceptions for certain 

conditions. Your diagnostic systems 

may disregard trouble codes for the first 

three minutes after engine starting. You 

may ask us to approve diagnosticsystem designs that disregard trouble 

codes under other conditions that 

would produce an unreliable reading, 

damage systems or components, or 

cause other safety risks. 

(g) Follow standard references for 

formats, codes, and connections. Follow 

conventions defined in the following 

documents (incorporated by reference in 

§ 1045.810) or ask us to approve using 

updated versions of (or variations from) 

these documents: 

(1) ISO 9141–2 Road vehicles—

Diagnostic systems—Part 2: CARB 

requirements for interchange of digital 

information, February 1994. 

(2) ISO 14230–4 Road vehicles—

Diagnostic systems—Keyword Protocol 

2000—Part 4: Requirements for 

emission-related systems, June 2000. 

§ 1045.115 What other requirements 

apply? 

The following requirements apply 

with respect to engines that are required 

to meet the emission standards of this 

part: 

(a) Crankcase emissions. Crankcase 

emissions may not be discharged 

directly into the ambient atmosphere 

from any engine throughout its useful 

life. 

(b) Torque broadcasting. 

Electronically controlled engines must 

broadcast their speed and output shaft 

torque (in newton-meters). Engines may 

alternatively broadcast a surrogate value 


sroberts on PROD1PC70 with PROPOSALS
28266 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

for determining torque. Engines must 

broadcast engine parameters such that 

they can be read with a remote device, 

or broadcast them directly to their 

controller area networks. This 

information is necessary for testing 

engines in the field (see 40 CFR part 

1065, subpart J). Small-volume engine 

manufacturers may omit this 

requirement. 

(c) EPA access to broadcast 

information. If we request it, you must 

provide us any hardware or tools we 

would need to readily read, interpret, 

and record all information broadcast by 

an engine’s on-board computers and 

electronic control modules. If you 

broadcast a surrogate parameter for 

torque values, you must provide us 

what we need to convert these into 

torque units. We will not ask for 

hardware or tools if they are readily 

available commercially. 

(d) [Reserved] 

(e) Adjustable parameters. Engines 

that have adjustable parameters must 

meet all the requirements of this part for 

any adjustment in the physically 

adjustable range. An operating 

parameter is not considered adjustable if 

you permanently seal it or if it is not 

normally accessible using ordinary 

tools. We may require that you set 

adjustable parameters to any 

specification within the adjustable range 

during any testing, including 

certification testing, production-line 

testing, or in-use testing. 

(f) Prohibited controls. You may not 

design your engines with emissioncontrol devices, systems, or elements of 

design that cause or contribute to an 

unreasonable risk to public health, 

welfare, or safety while operating. For 

example, this would apply if the engine 

emits a noxious or toxic substance it 

would otherwise not emit that 

contributes to such an unreasonable 

risk. 

(g) Defeat devices. You may not equip 

your engines with a defeat device. A 

defeat device is an auxiliary emission 

control device that reduces the 

effectiveness of emission controls under 

conditions that the engine may 

reasonably be expected to encounter 

during normal operation and use. This 

does not apply to auxiliary emission 

control devices you identify in your 

certification application if any of the 

following is true: 

(1) The conditions of concern were 

substantially included in the applicable 

duty-cycle test procedures described in 

subpart F of this part. 

(2) You show your design is necessary 

to prevent engine (or vessel) damage or 

accidents. 

(3) The reduced effectiveness applies 

only to starting the engine. 

§ 1045.120 What emission-related warranty 

requirements apply to me? 

(a) General requirements. You must 

warrant to the ultimate purchaser and 

each subsequent purchaser that the new 

engine, including all parts of its 

emission control system, meets two 

conditions: 

(1) It is designed, built, and equipped 

so it conforms at the time of sale to the 

ultimate purchaser with the 

requirements of this part. 

(2) It is free from defects in materials 

and workmanship that may keep it from 

meeting these requirements. 

(b) Warranty period. Your emissionrelated warranty must be valid during 

the periods specified in this paragraph 

(b). You may offer an emission-related 

warranty more generous than we 

require. The emission-related warranty 

for the engine may not be shorter than 

any published warranty you offer 

without charge for the engine. Similarly, 

the emission-related warranty for any 

component may not be shorter than any 

published warranty you offer without 

charge for that component. If an engine 

has no hour meter, we base the warranty 

periods in this paragraph (b) only on the 

engine’s age (in years). The warranty 

period begins when the engine is placed 

into service. 

(1) The minimum warranty period for 

outboard engines is 175 hours of engine 

operation or 5 years, whichever comes 

first. The minimum warranty period for 

personal watercraft engines is 175 hours 

of engine operation or 30 months, 

whichever comes first. 

(2) The minimum warranty period for 

sterndrive/inboard engines is shown in 

the following table: 

TABLE 1 TO § 1045.120—WARRANTY PERIODS FOR STERNDRIVE/INBOARD ENGINES 1

Maximum engine power Electronic components 

Mechanical components 

P < 373 kW ...................................................................................................................................... 3 years/480 hours ..... 3 years/480 hours. 

373 ≤ P < 485 kW ........................................................................................................................... 3 years/480 hours ..... 3 years/150 hours. 

P ≥ 485 kW ...................................................................................................................................... 3 years/480 hours ..... 1 year/50 hours. 

1The warranty period expires after the specified time period or number of operating hours, whichever comes first. 

(c) Components covered. The 

emission-related warranty covers all 

components whose failure would 

increase an engine’s emissions of any 

pollutant, including those listed in 40 

CFR part 1068, Appendix I, and those 

from any other system you develop to 

control emissions. The emission-related 

warranty covers these components even 

if another company produces the 

component. Your emission-related 

warranty does not cover components 

whose failure would not increase an 

engine’s emissions of any pollutant. 

(d) Limited applicability. You may 

deny warranty claims under this section 

if the operator caused the problem 

through improper maintenance or use, 

as described in 40 CFR 1068.115. 

(e) Owners manual. Describe in the 

owners manual the emission-related 

warranty provisions from this section 

that apply to the engine. 

§ 1045.125 What maintenance instructions 

must I give to buyers? 

Give the ultimate purchaser of each 

new engine written instructions for 

properly maintaining and using the 

engine, including the emission control 

system as described in this section. The 

maintenance instructions also apply to 

service accumulation on your emissiondata engines as described in § 1045.245 

and in 40 CFR part 1065. 

(a) Critical emission-related 

maintenance. Critical emission-related 

maintenance includes any adjustment, 

cleaning, repair, or replacement of 

critical emission-related components. 

This may also include additional 

emission-related maintenance that you 

determine is critical if we approve it in 

advance. You may schedule critical 

emission-related maintenance on these 

components if you meet the following 

conditions: 

(1) You demonstrate that the 

maintenance is reasonably likely to be 

done at the recommended intervals on 

in-use engines. We will accept 

scheduled maintenance as reasonably 

likely to occur if you satisfy any of the 

following conditions: 

(i) You present data showing that any 

lack of maintenance that increases 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28267 

emissions also unacceptably degrades 

the engine’s performance. 

(ii) You present survey data showing 

that at least 80 percent of engines in the 

field get the maintenance you specify at 

the recommended intervals. 

(iii) You provide the maintenance free 

of charge and clearly say so in 

maintenance instructions for the 

customer. 

(iv) You otherwise show us that the 

maintenance is reasonably likely to be 

done at the recommended intervals. 

(2) You may not schedule critical 

emission-related maintenance within 

the useful life period for aftertreatment 

devices, pulse-air valves, fuel injectors, 

oxygen sensors, electronic control units, 

superchargers, or turbochargers, except 

as specified in paragraph (b) or (c) of 

this section. 

(b) Recommended additional 

maintenance. You may recommend any 

additional amount of maintenance on 

the components listed in paragraph (a) 

of this section, as long as you state 

clearly that these maintenance steps are 

not necessary to keep the emissionrelated warranty valid. If operators do 

the maintenance specified in paragraph 

(a) of this section, but not the 

recommended additional maintenance, 

this does not allow you to disqualify 

those engines from in-use testing or 

deny a warranty claim. Do not take 

these maintenance steps during service 

accumulation on your emission-data 

engines. 

(c) Special maintenance. You may 

specify more frequent maintenance to 

address problems related to special 

situations, such as atypical engine 

operation. You must clearly state that 

this additional maintenance is 

associated with the special situation you 

are addressing. 

(d) Noncritical emission-related 

maintenance. Subject to the provisions 

of this paragraph (d), you may schedule 

any amount of emission-related 

inspection or maintenance that is not 

covered by paragraph (a) of this section 

(i.e., maintenance that is neither 

explicitly identified as critical emissionrelated maintenance, nor that we 

approve as critical emission-related 

maintenance). Noncritical emissionrelated maintenance generally includes 

changing spark plugs, re-seating valves, 

or any other emission-related 

maintenance on the components we 

specify in 40 CFR part 1068, Appendix 

I. You must state in the owners manual 

that these steps are not necessary to 

keep the emission-related warranty 

valid. If operators fail to do this 

maintenance, this does not allow you to 

disqualify those engines from in-use 

testing or deny a warranty claim. Do not 

take these inspection or maintenance 

steps during service accumulation on 

your emission-data engines. 

(e) Maintenance that is not emissionrelated. For maintenance unrelated to 

emission controls, you may schedule 

any amount of inspection or 

maintenance. You may also take these 

inspection or maintenance steps during 

service accumulation on your emissiondata engines, as long as they are 

reasonable and technologically 

necessary. This might include adding 

engine oil, changing air, fuel, or oil 

filters, servicing engine-cooling systems, 

and adjusting idle speed, governor, 

engine bolt torque, valve lash, or 

injector lash. You may perform this 

nonemission-related maintenance on 

emission-data engines at the least 

frequent intervals that you recommend 

to the ultimate purchaser (but not the 

intervals recommended for severe 

service). 

(f) Source of parts and repairs. State 

clearly on the first page of your written 

maintenance instructions that a repair 

shop or person of the owner’s choosing 

may maintain, replace, or repair 

emission control devices and systems. 

Your instructions may not require 

components or service identified by 

brand, trade, or corporate name. Also, 

do not directly or indirectly condition 

your warranty on a requirement that the 

engine be serviced by your franchised 

dealers or any other service 

establishments with which you have a 

commercial relationship. You may 

disregard the requirements in this 

paragraph (f) if you do one of two 

things: 

(1) Provide a component or service 

without charge under the purchase 

agreement. 

(2) Get us to waive this prohibition in 

the public’s interest by convincing us 

the engine will work properly only with 

the identified component or service. 

(g) Payment for scheduled 

maintenance. Owners are responsible 

for properly maintaining their engines. 

This generally includes paying for 

scheduled maintenance. However, 

manufacturers must pay for scheduled 

maintenance during the useful life if it 

meets all the following criteria: 

(1) Each affected component was not 

in general use on similar engines before 

the applicable dates shown in paragraph 

(5) of the definition of new propulsion 

marine engine in § 1045.801. 

(2) The primary function of each 

affected component is to reduce 

emissions. 

(3) The cost of the scheduled 

maintenance is more than 2 percent of 

the price of the engine. 

(4) Failure to perform the 

maintenance would not cause clear 

problems that would significantly 

degrade the engine’s performance. 

(h) Owners manual. Explain the 

owner’s responsibility for proper 

maintenance in the owners manual. 

§ 1045.130 What installation instructions 

must I give to vessel manufacturers? 

(a) If you sell an engine for someone 

else to install in a vessel, give the engine 

installer instructions for installing it 

consistent with the requirements of this 

part. Include all information necessary 

to ensure that an engine will be 

installed in its certified configuration. 

(b) Make sure these instructions have 

the following information: 

(1) Include the heading: ‘‘Emissionrelated installation instructions’’. 

(2) State: ‘‘Failing to follow these 

instructions when installing a certified 

engine in a vessel violates federal law 

(40 CFR 1068.105(b)), subject to fines or 

other penalties as described in the Clean 

Air Act.’’. 

(3) Describe the instructions needed 

to properly install the exhaust system 

and any other components. Include 

instructions consistent with the 

requirements of § 1045.205(t). 

(4) Describe the steps needed to 

control evaporative emissions as 

described in § 1045.107. This will 

generally require notification that the 

installer and/or vessel manufacturer 

must meet the requirements of 

§ 1045.107 and 40 CFR part 1060. 

(5) Describe any necessary steps for 

installing the diagnostic system 

described in § 1045.110. 

(6) Describe any limits on the range of 

applications needed to ensure that the 

engine operates consistently with your 

application for certification. For 

example, if your engines are certified 

only for personal watercraft, tell vessel 

manufacturers not to install the engines 

in vessels longer than 4.0 meters. 

(7) Describe any other instructions to 

make sure the installed engine will 

operate according to design 

specifications in your application for 

certification. For example, this may 

include specified limits for catalyst 

systems, such as exhaust backpressure, 

catalyst location, and temperature 

profiles during engine operation. 

(8) State: ‘‘If you install the engine in 

a way that makes the engine’s emission 

control information label hard to read 

during normal engine maintenance, you 

must place a duplicate label on the 

vessel, as described in 40 CFR 

1068.105.’’. 

(c) You do not need installation 

instructions for engines you install in 

your own vessels. 


sroberts on PROD1PC70 with PROPOSALS
28268 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(d) Provide instructions in writing or 

in an equivalent format. For example, 

you may post instructions on a publicly 

available website for downloading or 

printing. If you do not provide the 

instructions in writing, explain in your 

application for certification how you 

will ensure that each installer is 

informed of the installation 

requirements. 

§ 1045.135 How must I label and identify 

the engines I produce? 

The provisions of this section apply to 

engine manufacturers. 

(a) Assign each engine a unique 

identification number and permanently 

affix, engrave, or stamp it on the engine 

in a legible way. 

(b) At the time of manufacture, affix 

a permanent and legible label 

identifying each engine. The label must 

be—

(1) Attached in one piece so it is not 

removable without being destroyed or 

defaced. However, you may use twopiece labels for engines below 19 kW if 

there is not enough space on the engine 

to apply a one-piece label. 

(2) Secured to a part of the engine 

needed for normal operation and not 

normally requiring replacement. 

(3) Durable and readable for the 

engine’s entire life. 

(4) Written in English. 

(c) The label must—

(1) Include the heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Include your full corporate name 

and trademark. You may identify 

another company and use its trademark 

instead of yours if you comply with the 

provisions of § 1045.640. 

(3) Include EPA’s standardized 

designation for the engine family (and 

subfamily, where applicable). 

(4) State the engine’s displacement (in 

liters) and maximum engine power; 

however, you may omit the 

displacement from the label if all the 

engines in the engine family have the 

same per-cylinder displacement and 

total displacement. 

(5) State the date of manufacture 

[MONTH and YEAR]; however, you may 

omit this from the label if you stamp or 

engrave it on the engine. 

(6) State the FELs to which the 

engines are certified (in g/kW-hr) if 

certification depends on the ABT 

provisions of subpart H of this part. 

(7) Identify the emission control 

system. Use terms and abbreviations 

consistent with SAE J1930 (incorporated 

by reference in § 1045.810). You may 

omit this information from the label if 

there is not enough room for it and you 

put it in the owners manual instead. 

(8) List specifications and adjustments 

for engine tuneups; however, you may 

omit this information from the label if 

there is not enough room for it and you 

put it in the owners manual instead. 

(9) Identify the fuel type and any 

requirements for fuel and lubricants; 

however, you may omit this information 

from the label if there is not enough 

room for it and you put it in the owners 

manual instead. 

(10) State: ‘‘THIS ENGINE COMPLIES 

WITH U.S. EPA REGULATIONS FOR 

[MODEL YEAR] SPARK–IGNITION 

MARINE ENGINES.’’. 

(11) If your durability demonstration 

for sterndrive/inboard engines is limited 

to fresh water, state: ‘‘THIS ENGINE IS 

NOT INTENDED FOR USE IN 

SALTWATER.’’. 

(d) You may add information to the 

emission control information label to 

identify other emission standards that 

the engine meets or does not meet (such 

as California standards). You may also 

add other information to ensure that the 

engine will be properly maintained and 

used. 

(e) You may ask us to approve 

modified labeling requirements in this 

part 1045 if you show that it is 

necessary or appropriate. We will 

approve your request if your alternate 

label is consistent with the requirements 

of this part. 

(f) If you obscure the engine label 

while installing the engine in the vessel 

such that the label cannot be read 

during normal maintenance, you must 

place a duplicate label on the vessel. If 

others install your engine in their 

vessels in a way that obscures the 

engine label, we require them to add a 

duplicate label on the vessel (see 40 

CFR 1068.105); in that case, give them 

the number of duplicate labels they 

request and keep the following records 

for at least five years: 

(1) Written documentation of the 

request from the vessel manufacturer. 

(2) The number of duplicate labels 

you send for each engine family and the 

date you sent them. 

§ 1045.140 What is my engine’s maximum 

engine power? 

(a) An engine configuration’s 

maximum engine power is the 

maximum brake power point on the 

nominal power curve for the engine 

configuration, as defined in this section. 

Round the power value to the nearest 

whole kilowatt. 

(b) The nominal power curve of an 

engine configuration is the relationship 

between maximum available engine 

brake power and engine speed for an 

engine, using the mapping procedures 

of 40 CFR part 1065, based on the 

manufacturer’s design and production 

specifications for the engine. This 

information may also be expressed by a 

torque curve that relates maximum 

available engine torque with engine 

speed. 

(c) The nominal power curve must be 

within the range of the actual power 

curves of production engines 

considering normal production 

variability. If after production begins it 

is determined that your nominal power 

curve does not represent production 

engines, we may require you to amend 

your application for certification under 

§ 1045.225. 

§ 1045.145 Are there interim provisions 

that apply only for a limited time? 

The provisions in this section apply 

instead of other provisions in this part. 

This section describes when these 

interim provisions apply. 

(a) Small-volume engine 

manufacturers. Special provisions apply 

to you for sterndrive/inboard engines if 

you are a small-volume engine 

manufacturer subject to the 

requirements of this part. Contact us 

before 2009 if you intend to use any of 

the following provisions: 

(1) You may delay complying with 

otherwise emission standards and other 

requirements that would otherwise 

apply until the 2013 model year for 

high-performance engines and until the 

2011 model year for other sterndrive/ 

inboard engines. Add a permanent label 

to a readily visible part of each engine 

exempted under this paragraph (a)(1). 

This label must include at least the 

following items: 

(i) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(ii) Your corporate name and 

trademark. 

(iii) Engine displacement (in liters), 

rated power, and model year of the 

engine or whom to contact for further 

information. 

(iv) The following statement: ‘‘THIS 

ENGINE IS EXEMPT UNDER 40 CFR 

1045.145(a)(1) FROM EMISSION 

STANDARDS AND RELATED 

REQUIREMENTS.’’. 

(2) You may use the provisions of 40 

CFR 1068.250 to further delay 

compliance with emission standards; 

however, you must use a base engine 

that has been certified if such an engine 

is available. 

(b) Early banking. You may generate 

emission credits for sterndrive/inboard 

engines before the 2009 model year (or 

before the 2011 model year for smallvolume engine manufacturers), as 

follows: 

(1) You must begin actual production 

of early-compliant engines by 

September 1, 2008 (or before September 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28269 

1, 2010 for small-volume engine 

manufacturers). 

(2) You may not generate emission 

credits under this paragraph (b) with 

engines you produce after December 31, 

2008 (or December 31, 2010 for smallvolume engine manufacturers). 

(3) Early-compliant engines must be 

certified to the standards and 

requirements for sterndrive/inboard 

engines under this part 1045, with 

family emission limits at or below the 

emission standards in § 1045.105. 

(4) You must calculate emission 

credits by comparing the engine’s family 

emission limits with assigned baseline 

levels of 16 g/kW-hr for HC+NOX and 

150 g/kW-hr for CO. 

(5) Calculate emission credits using a 

multiplier based on the number of 

model years before the standards start to 

apply. The multipliers are 1.25 for one 

year early, 1.5 for two years early, and 

2.0 for three or more years early. For 

example, multiply your calculated 

emission credits generated from 

compliant 2008 model year engines by 

1.25 or, if emission standards are 

delayed for your engines until 2011 

under paragraph (a)(1) of this section, 

multiply those calculated emission 

credits by 2.0. 

(6) You may not use the provisions of 

this paragraph (b) to generate emission 

credits for engines whose point of first 

retail sale is in California. 

(7) HC+NOX or CO credits you 

generate under this paragraph (b) may 

be banked for up to three model years 

after the model year in which the 

emission standards start to apply. 

(c) Early compliance with evaporative 

emission standards. You may fuel tanks 

that do not meet the otherwise 

applicable permeation standards 

without violating the prohibition in 40 

CFR 1068.101(a)(1) if you earn 

evaporative allowances, as follows: 

(1) You may earn an evaporative 

allowance from one fuel tank certified to 

EPA’s evaporative emission standards 

by producing it before EPA’s 

evaporative emission standards start to 

apply. You may use this evaporative 

allowance by selling one fuel tank that 

does not meet the permeation emission 

standards that would otherwise apply. 

For example, you can earn an 

evaporative allowance by selling a lowpermeation fuel tank for personal 

watercraft before the 2011 model year, 

in which case you could sell a highpermeation fuel tank for a personal 

watercraft in 2011. You must meet all 

the other requirements related to 

evaporative emissions that apply. 

(2) You must add a label to exempted 

fuel tanks you produce under this 

paragraph (c) with the following 

statement: ‘‘EXEMPT FROM EMISSION 

STANDARDS UNDER 40 CFR 

1045.145(c)’’. 

(3) Evaporative allowances you earn 

under this paragraph (c) from portable 

fuel tanks may be used only for other 

portable fuel tanks. Similarly, 

evaporative allowances from personal 

watercraft fuel tanks may be used only 

for personal watercraft fuel tanks and 

evaporative allowances from other 

installed fuel tanks may be used only for 

other installed fuel tanks. 

(4) You may not use the allowances 

you generate under this paragraph (c) 

for portable fuel tanks and personal 

watercraft fuel tanks in 2014 or later 

model years. Similarly, you may not use 

the allowances you generate under this 

paragraph (c) for other installed fuel 

tanks in 2015 or later model years. 

(d) Useful life for evaporative 

emission standards. A useful life period 

of two years applies for fuel tanks 

certified to meet the permeation 

emission standards in § 1045.110(b) in 

2013 and earlier model years. However, 

for fuel tanks with a family emission 

limit above or below the otherwise 

applicable standard, calculate emission 

credits under § 1054.706 based on the 

useful life values specified in 

§ 1045.107. 

Subpart C—Certifying Engine Families 

§ 1045.201 What are the general 

requirements for obtaining a certificate of 

conformity? 

Engine manufacturers must certify 

their engines with respect to the exhaust 

emission standards in this part. 

Manufacturers of engines, equipment, or 

fuel-system components may need to 

certify their products with respect to 

evaporative emission standards as 

described in 40 CFR 1060.1 and 

1060.601. The following general 

requirements apply for obtaining a 

certificate of conformity: 

(a) You must send us a separate 

application for a certificate of 

conformity for each engine family. A 

certificate of conformity is valid starting 

with the indicated effective date, but it 

is not valid for any production after 

December 31 of the model year for 

which it is issued. No certificate will be 

issued after December 31 of the model 

year. 

(b) The application must contain all 

the information required by this part 

and must not include false or 

incomplete statements or information 

(see § 1045.255). 

(c) We may ask you to include less 

information than we specify in this 

subpart, as long as you maintain all the 

information required by § 1045.250. 

(d) You must use good engineering 

judgment for all decisions related to 

your application (see 40 CFR 1068.5). 

(e) An authorized representative of 

your company must approve and sign 

the application. 

(f) See § 1045.255 for provisions 

describing how we will process your 

application. 

(g) We may require you to deliver 

your test engines to a facility we 

designate for our testing (see 

§ 1045.235(c)). 

§ 1045.205 What must I include in my 

application? 

This section specifies the information 

that must be in your application, unless 

we ask you to include less information 

under § 1045.201(c). We may require 

you to provide additional information to 

evaluate your application. 

(a) Describe the engine family’s 

specifications and other basic 

parameters of the engine’s design and 

emission controls. List the fuel type on 

which your engines are designed to 

operate (for example, all-season 

gasoline). List each distinguishable 

engine configuration in the engine 

family. For each engine configuration, 

list the maximum engine power and the 

range of values for maximum engine 

power resulting from production 

tolerances, as described in § 1045.140. 

(b) Explain how the emission control 

systems operate. Describe in detail all 

system components for controlling 

exhaust emissions, including all 

auxiliary emission control devices 

(AECDs) and all fuel-system 

components you will install on any 

production or test engine. Identify the 

part number of each component you 

describe. For this paragraph (b), treat as 

separate AECDs any devices that 

modulate or activate differently from 

each other. Include sufficient detail to 

allow us to evaluate whether the AECDs 

are consistent with the defeat device 

prohibition of § 1045.115. 

(c) For sterndrive/inboard engines, 

explain how the engine diagnostic 

system works, describing especially the 

engine conditions (with the 

corresponding diagnostic trouble codes) 

that cause the malfunction-indicator 

light to go on. Propose what you 

consider to be extreme conditions under 

which the diagnostic system should 

disregard trouble codes, as described in 

§ 1045.110. 

(d) Describe the engines you selected 

for testing and the reasons for selecting 

them. 

(e) Describe the test equipment and 

procedures that you used, including any 

special or alternate test procedures you 

used. 


sroberts on PROD1PC70 with PROPOSALS
28270 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(f) Describe how you operated the 

emission-data engine before testing, 

including the duty cycle and the 

number of engine operating hours used 

to stabilize emission levels. Explain 

why you selected the method of service 

accumulation. Describe any scheduled 

maintenance you did. 

(g) List the specifications of the test 

fuel to show that it falls within the 

required ranges we specify in 40 CFR 

part 1065. 

(h) Identify the engine family’s useful 

life. 

(i) Include the maintenance and 

warranty instructions you will give to 

the ultimate purchaser of each new 

engine (see §§ 1045.120 and 1045.125). 

(j) Include the emission-related 

installation instructions you will 

provide if someone else installs your 

engines in a vessel (see § 1045.130). 

(k) Describe your emission control 

information label (see § 1045.135). 

(l) Identify the emission standards or 

FELs to which you are certifying 

engines in the engine family. 

(m) Identify the engine family’s 

deterioration factors and describe how 

you developed them (see § 1045.245). 

Present any emission test data you used 

for this. 

(n) State that you operated your 

emission-data engines as described in 

the application (including the test 

procedures, test parameters, and test 

fuels) to show you meet the 

requirements of this part. 

(o) Present emission data to show that 

you meet emission standards, as 

follows: 

(1) Present emission data by mode for 

hydrocarbons (such as THC or THCE, as 

applicable), NOX, and CO on an 

emission-data engine to show your 

engines meet the duty-cycle emission 

standards we specify in § 1045.101. 

Show emission figures before and after 

applying deterioration factors for each 

engine. If we specify more than one 

grade of any fuel type (for example, lowtemperature and all-season gasoline), 

you need to submit test data only for 

one grade, unless the regulations of this 

part specify otherwise for your engine. 

(2) Note that §§ 1045.235 and 

1045.245 allow you to submit an 

application in certain cases without new 

emission data. 

(p) State that all the engines in the 

engine family comply with the not-toexceed emission standards we specify in 

subpart B of this part for all normal 

operation and use when tested as 

specified in § 1045.515. Describe any 

relevant testing, engineering analysis, or 

other information in sufficient detail to 

support your statement. 

(q) Report all test results, including 

those from invalid tests, whether or not 

they were conducted according to the 

test procedures of subpart F of this part. 

If you measure CO2, report those 

emission levels. We may ask you to 

send other information to confirm that 

your tests were valid under the 

requirements of this part and 40 CFR 

parts 1060 and 1065. 

(r) Describe all adjustable operating 

parameters (see § 1045.115(e)), 

including production tolerances. 

Include the following in your 

description of each parameter: 

(1) The nominal or recommended 

setting. 

(2) The intended physically adjustable 

range. 

(3) The limits or stops used to 

establish adjustable ranges. 

(4) Information showing why the 

limits, stops, or other means of 

inhibiting adjustment are effective in 

preventing adjustment of parameters on 

in-use engines to settings outside your 

intended physically adjustable ranges. 

(s) Provide the information to read, 

record, and interpret all the information 

broadcast by an engine’s onboard 

computers and electronic control units. 

State that, upon request, you will give 

us any hardware, software, or tools we 

would need to do this. If you broadcast 

a surrogate parameter for torque values, 

you must provide us what we need to 

convert these into torque units. You 

may reference any appropriate publicly 

released standards that define 

conventions for these messages and 

parameters. Format your information 

consistent with publicly released 

standards. 

(t) Confirm that your emission-related 

installation instructions specify how to 

ensure that sampling of exhaust 

emissions will be possible after engines 

are installed in vessels and placed in 

service. Show how to sample exhaust 

emissions in a way that prevents 

diluting the exhaust sample with 

ambient air. 

(u) Unconditionally certify that all the 

engines in the engine family comply 

with the requirements of this part, other 

referenced parts of the CFR, and the 

Clean Air Act. 

(v) Include good-faith estimates of 

U.S.-directed production volumes. 

Include a justification for the estimated 

production volumes if they are 

substantially different than actual 

production volumes in earlier years for 

similar models. 

(w) Include the information required 

by other subparts of this part. For 

example, include the information 

required by § 1045.725 if you participate 

in the ABT program. 

(x) Include other applicable 

information, such as information 

specified in this part or 40 CFR part 

1068 related to requests for exemptions. 

(y) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

(z) For imported engines, identify the 

following: 

(1) The port(s) at which you will 

import your engines. 

(2) The names and addresses of the 

agents you have authorized to import 

your engines. 

(3) The location of test facilities in the 

United States where you can test your 

engines if we select them for testing 

under a selective enforcement audit, as 

specified in 40 CFR part 1068, subpart 

E. 

§ 1045.210 May I get preliminary approval 

before I complete my application? 

If you send us information before you 

finish the application, we will review it 

and make any appropriate 

determinations, especially for questions 

related to engine family definitions, 

auxiliary emission control devices, 

deterioration factors, testing for service 

accumulation, maintenance, and 

compliance with not-to-exceed 

standards. Decisions made under this 

section are considered to be preliminary 

approval, subject to final review and 

approval. We will generally not reverse 

a decision where we have given you 

preliminary approval, unless we find 

new information supporting a different 

decision. If you request preliminary 

approval related to the upcoming model 

year or the model year after that, we will 

make best-efforts to make the 

appropriate determinations as soon as 

practicable. We will generally not 

provide preliminary approval related to 

a future model year more than two years 

ahead of time. 

§ 1045.220 How do I amend the 

maintenance instructions in my 

application? 

You may amend your emissionrelated maintenance instructions after 

you submit your application for 

certification, as long as the amended 

instructions remain consistent with the 

provisions of § 1045.125. You must send 

the Designated Compliance Officer a 

written request to amend your 

application for certification for an 

engine family if you want to change the 

emission-related maintenance 

instructions in a way that could affect 

emissions. In your request, describe the 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28271 

proposed changes to the maintenance 

instructions. We will disapprove your 

request if we determine that the 

amended instructions are inconsistent 

with maintenance you performed on 

emission-data engines. If operators 

follow the original maintenance 

instructions rather than the newly 

specified maintenance, this does not 

allow you to disqualify those engines 

from in-use testing or deny a warranty 

claim. 

(a) If you are changing the specified 

maintenance in a way that could affect 

emissions, you may distribute the new 

maintenance instructions to your 

customers only after we approve your 

request. 

(b) You need not request approval if 

you are making only minor corrections 

(such as correcting typographical 

mistakes), clarifying your maintenance 

instructions, or changing instructions 

for maintenance unrelated to emission 

control. 

§ 1045.225 How do I amend my application 

for certification to include new or modified 

engines or change an FEL? 

Before we issue you a certificate of 

conformity, you may amend your 

application to include new or modified 

engine configurations, subject to the 

provisions of this section. After we have 

issued your certificate of conformity, 

you may send us an amended 

application requesting that we include 

new or modified engine configurations 

within the scope of the certificate, 

subject to the provisions of this section. 

You must amend your application if any 

changes occur with respect to any 

information included in your 

application. 

(a) You must amend your application 

before you take any of the following 

actions: 

(1) Add an engine configuration to an 

engine family. In this case, the engine 

configuration added must be consistent 

with other engine configurations in the 

engine family with respect to the criteria 

listed in § 1045.230. 

(2) Change an engine configuration 

already included in an engine family in 

a way that may affect emissions, or 

change any of the components you 

described in your application for 

certification. This includes production 

and design changes that may affect 

emissions any time during the engine’s 

lifetime. 

(3) Modify an FEL for an engine 

family as described in paragraph (f) of 

this section. 

(b) To amend your application for 

certification, send the Designated 

Compliance Officer the following 

information: 

(1) Describe in detail the addition or 

change in the engine model or 

configuration you intend to make. 

(2) Include engineering evaluations or 

data showing that the amended engine 

family complies with all applicable 

requirements. You may do this by 

showing that the original emission-data 

engine is still appropriate for showing 

that the amended family complies with 

all applicable requirements. 

(3) If the original emission-data 

engine for the engine family is not 

appropriate to show compliance for the 

new or modified engine configuration, 

include new test data showing that the 

new or modified engine configuration 

meets the requirements of this part. 

(c) We may ask for more test data or 

engineering evaluations. You must give 

us these within 30 days after we request 

them. 

(d) For engine families already 

covered by a certificate of conformity, 

we will determine whether the existing 

certificate of conformity covers your 

newly added or modified engine. You 

may ask for a hearing if we deny your 

request (see § 1045.820). 

(e) For engine families already 

covered by a certificate of conformity, 

you may start producing the new or 

modified engine configuration anytime 

after you send us your amended 

application and before we make a 

decision under paragraph (d) of this 

section. However, if we determine that 

the affected engines do not meet 

applicable requirements, we will notify 

you to cease production of the engines 

and may require you to recall the 

engines at no expense to the owner. 

Choosing to produce engines under this 

paragraph (e) is deemed to be consent to 

recall all engines that we determine do 

not meet applicable emission standards 

or other requirements and to remedy the 

nonconformity at no expense to the 

owner. If you do not provide 

information required under paragraph 

(c) of this section within 30 days, you 

must stop producing the new or 

modified engines. 

(f) You may ask us to approve a 

change to your FEL in certain cases after 

the start of production. The changed 

FEL may not apply to engines you have 

already introduced into U.S. commerce, 

except as described in this paragraph (f). 

If we approve a changed FEL after the 

start of production, you must include 

the new FEL on the emission control 

information label for all engines 

produced after the change. You may ask 

us to approve a change to your FEL in 

the following cases: 

(1) You may ask to raise your FEL for 

your engine family at any time. In your 

request, you must show that you will 

still be able to meet the emission 

standards as specified in subparts B and 

H of this part. If you amend your 

application by submitting new test data 

to include a newly added or modified 

engine, as described in paragraph (b)(3) 

of this section, use the appropriate FELs 

with corresponding production volumes 

to calculate your production-weighted 

average FEL for the model year, as 

described in subpart H of this part. If 

you amend your application without 

submitting new test data, you must use 

the higher FEL for the entire family to 

calculate your production-weighted 

average FEL under subpart H of this 

part. 

(2) You may ask to lower the FEL for 

your engine family only if you have test 

data from production engines showing 

that emissions are below the proposed 

lower FEL. The lower FEL applies only 

to engines you produce after we approve 

the new FEL. Use the appropriate FELs 

with corresponding production volumes 

to calculate your production-weighted 

average FEL for the model year, as 

described in subpart H of this part. 

§ 1045.230 How do I select engine 

families? 

(a) For purposes of certification, 

divide your product line into families of 

engines that are expected to have 

similar emission characteristics 

throughout the useful life as described 

in this section. Your engine family is 

limited to a single model year. 

(b) Group engines in the same engine 

family if they are the same in all the 

following aspects: 

(1) The combustion cycle and fuel. 

(2) The cooling system (for example, 

raw-water vs. separate-circuit cooling). 

(3) Method of air aspiration (for 

example, turbocharged vs. naturally 

aspirated). 

(4) The number, location, volume, and 

composition of catalytic converters. 

(5) The number, arrangement, and 

approximate bore diameter of cylinders. 

(6) Method of control for engine 

operation, other than governing (i.e., 

mechanical or electronic). 

(7) The numerical level of the 

emission standards that apply to the 

engine. 

(c) You may subdivide a group of 

engines that is identical under 

paragraph (b) of this section into 

different engine families if you show the 

expected emission characteristics are 

different during the useful life. 

(d) You may group engines that are 

not identical with respect to the things 

listed in paragraph (b) of this section in 

the same engine family, as follows: 

(1) In unusual circumstances, you 

may group such engines in the same 


sroberts on PROD1PC70 with PROPOSALS
28272 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

engine family if you show that their 

emission characteristics during the 

useful life will be similar. 

(2) If you are a small-volume engine 

manufacturer, you may group all your 

high-performance engines into a single 

engine family. 

(3) The provisions of this paragraph 

(e) do not exempt any engines from 

meeting all the emission standards and 

requirements in subpart B of this part. 

§ 1045.235 What emission testing must I 

perform for my application for a certificate 

of conformity? 

This section describes the emission 

testing you must perform to show 

compliance with the emission standards 

in § 1045.101(a). See § 1045.205(p) 

regarding emission testing related to the 

not-to-exceed standards. See 

§§ 1045.240 and 1045.245 and 40 CFR 

part 1065, subpart E, regarding service 

accumulation before emission testing. 

(a) Select an emission-data engine 

from each engine family for testing as 

described in 40 CFR 1065.401. Select 

the engine with a configuration that is 

most likely to exceed the exhaust 

emission standards, using good 

engineering judgment. Consider the 

emission levels of all exhaust 

constituents over the full useful life of 

the engine when operated in a vessel. 

(b) Test your emission-data engines 

using the procedures and equipment 

specified in subpart F of this part. 

(c) We may measure emissions from 

any of your test engines or other engines 

from the engine family, as follows: 

(1) We may decide to do the testing 

at your plant or any other facility. If we 

do this, you must deliver the test engine 

to a test facility we designate. The test 

engine you provide must include 

appropriate manifolds, aftertreatment 

devices, electronic control units, and 

other emission-related components not 

normally attached directly to the engine 

block. If we do the testing at your plant, 

you must schedule it as soon as possible 

and make available the instruments, 

personnel, and equipment we need. 

(2) If we measure emissions on one of 

your test engines, the results of that 

testing become the official emission 

results for the engine. Unless we later 

invalidate these data, we may decide 

not to consider your data in determining 

if your engine family meets applicable 

requirements. 

(3) We may set the adjustable 

parameters of your emission-data engine 

to any point within the physically 

adjustable ranges (see § 1045.115(e)). 

(4) We may calibrate your emissiondata engine within normal production 

tolerances for anything we do not 

consider an adjustable parameter. 

(d) You may ask to use emission data 

from a previous model year instead of 

doing new tests, but only if all the 

following are true: 

(1) The engine family from the 

previous model year differs from the 

current engine family only with respect 

to model year or other characteristics 

unrelated to emissions. 

(2) The emission-data engine from the 

previous model year remains the 

appropriate emission-data engine under 

paragraph (b) of this section. 

(3) The data show that the emissiondata engine would meet all the 

requirements that apply to the engine 

family covered by the application for 

certification. For engines originally 

tested under the provisions of 40 CFR 

part 91, you may consider those test 

procedures to be equivalent to the 

procedures we specify in subpart F of 

this part. 

(e) We may require you to test a 

second engine of the same or different 

configuration in addition to the engine 

tested under paragraph (b) of this 

section. 

(f) If you use an alternate test 

procedure under 40 CFR 1065.10 and 

later testing shows that such testing 

does not produce results that are 

equivalent to the procedures specified 

in subpart F of this part, we may reject 

data you generated using the alternate 

procedure. 

§ 1045.240 How do I demonstrate that my 

engine family complies with exhaust 

emission standards? 

(a) For purposes of certification, your 

engine family is considered in 

compliance with the emission standards 

in § 1045.103 or § 1045.105 if all 

emission-data engines representing that 

family have test results showing 

deteriorated emission levels at or below 

these standards. Note that your FELs are 

considered to be the applicable 

emission standards with which you 

must comply if you participate in the 

ABT program in subpart H of this part. 

(b) Your engine family is deemed not 

to comply if any emission-data engine 

representing that family has test results 

showing a deteriorated emission level 

above an applicable emission standard 

from § 1045.101 for any pollutant. 

(c) Determine a deterioration factor to 

compare emission levels from the 

emission-data engine with the 

applicable emission standards. Section 

1045.245 specifies how to test engines 

to develop deterioration factors that 

represent the expected deterioration in 

emissions over your engines’ full useful 

life. Your deterioration factors must take 

into account any available data from inuse testing with similar engines. Smallvolume engine manufacturers may use 

assigned deterioration factors that we 

establish. Apply deterioration factors as 

follows: 

(1) Additive deterioration factor for 

exhaust emissions. For engines that do 

not use aftertreatment technology, use 

an additive deterioration factor for 

exhaust emissions. An additive 

deterioration factor is the difference 

between exhaust emissions at the end of 

useful life and exhaust emissions at the 

low-hour test point. Adjust the official 

emission results for each tested engine 

at the selected test point by adding the 

factor to the measured emissions. If the 

deterioration factor is less than zero, use 

zero. Additive deterioration factors must 

be specified to one more decimal place 

than the emission standard. 

(2) Multiplicative deterioration factor 

for exhaust emissions. For engines that 

use aftertreatment technology, such as 

catalytic converters, use a multiplicative 

deterioration factor for exhaust 

emissions. A multiplicative 

deterioration factor is the ratio of 

exhaust emissions at the end of useful 

life to exhaust emissions at the low-hour 

test point. Adjust the official emission 

results for each tested engine at the 

selected test point by multiplying the 

measured emissions by the deterioration 

factor. If the deterioration factor is less 

than one, use one. Multiplicative 

deterioration factors must be specified 

to one more significant figure than the 

emission standard. 

(d) Adjust the official emission results 

for each tested engine at the selected 

test point by multiplying the measured 

emissions by the deterioration factor, 

then rounding the adjusted figure to the 

same number of decimal places as the 

emission standard. Compare the 

rounded emission levels to the emission 

standard for each emission-data engine. 

In the case of HC+NOX standards, add 

the emission results and apply the 

deterioration factor to the sum of the 

pollutants before rounding. However, if 

your deterioration factors are based on 

emission measurements that do not 

cover the vehicle’s full useful life, apply 

the deterioration factor to each pollutant 

and then add the results before 

rounding. 

(e) Small-volume engine 

manufacturers may establish emission 

levels for certification without testing, 

as follows: 

(1) For high-performance engines, you 

may use a family emission limit of 30.0 

g/kW-hr for HC+NOX emissions and 350 

g/kW-hr for CO emissions. 

(2) For other four-stroke sterndrive/ 

inboard engines, you may use a family 

emission limit of 22.0 g/kW-hr for 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28273 

HC+NOX emissions and 150 g/kW-hr for 

CO emissions. 

(3) Note that you must use emission 

credits under the provisions of subpart 

H of this part to show that you meet 

applicable requirements if you use 

family emission limits as specified in 

this paragraph (e). Also, if you use these 

family emission limits, you must use 

them for both HC+NOX and CO 

emissions. 

§ 1045.245 How do I determine 

deterioration factors from exhaust 

durability testing? 

Establish deterioration factors to 

determine whether your engines will 

meet the exhaust emission standards for 

each pollutant throughout the useful 

life, as described in subpart B of this 

part and § 1045.240. This section 

describes how to determine 

deterioration factors, either with preexisting test data or with new emission 

measurements. 

(a) You may ask us to approve 

deterioration factors for an engine 

family based on emission measurements 

from similar engines if you have already 

given us these data for certifying the 

other engines in the same or earlier 

model years. Use good engineering 

judgment to decide whether the two 

engines are similar. 

(b) If you are unable to determine 

deterioration factors for an engine 

family under paragraph (a) of this 

section, select engines, subsystems, or 

components for testing. Determine 

deterioration factors based on service 

accumulation and related testing. 

Include consideration of wear and other 

causes of deterioration expected under 

typical consumer use. Determine 

deterioration factors as follows: 

(1) You must measure emissions from 

the emission-data engine at a low-hour 

test point and the end of the useful life. 

You may also test at evenly spaced 

intermediate points. Collect emission 

data using measurements to one more 

decimal place than the emission 

standard. 

(2) Operate the engine over a 

representative duty cycle for a period at 

least as long as the useful life (in hours). 

You may operate the engine 

continuously. You may also use an 

engine installed in a vessel to 

accumulate service hours instead of 

running the engine only in the 

laboratory. 

(3) You may perform maintenance on 

emission-data engines as described in 

§ 1045.125 and 40 CFR part 1065, 

subpart E. 

(4) If you measure emissions at only 

two points to calculate your 

deterioration factor, base your 

calculations on a linear relationship 

connecting these two data points for 

each pollutant. If you measure 

emissions at three or more points, use 

a linear least-squares fit of your test data 

for each pollutant to calculate your 

deterioration factor. 

(5) If you test more than one engine 

to establish deterioration factors, 

average the deterioration factors from all 

the engines before rounding. 

(6) Use good engineering judgment for 

all aspects of the effort to establish 

deterioration factors under this 

paragraph (b). 

(7) You may use other testing methods 

to determine deterioration factors, 

consistent with good engineering 

judgment, as long as we approve those 

methods in advance. 

(c) Include the following information 

in your application for certification: 

(1) If you use test data from a different 

engine family, explain why this is 

appropriate and include all the emission 

measurements on which you base the 

deterioration factor. 

(2) If you do testing to determine 

deterioration factors, describe the form 

and extent of service accumulation, 

including the method you use to 

accumulate hours. 

§ 1045.250 What records must I keep and 

what reports must I send to EPA? 

(a) If you produce engines under any 

provisions of this part that are related to 

production volumes, send the 

Designated Compliance Officer a report 

within 30 days after the end of the 

model year describing the total number 

of engines you produced in each engine 

family. For example, if you use special 

provisions intended for small-volume 

engine manufacturers, report your 

production volumes to show that you do 

not exceed the applicable limits. 

(b) Organize and maintain the 

following records: 

(1) A copy of all applications and any 

summary information you send us. 

(2) Any of the information we specify 

in § 1045.205 that you were not required 

to include in your application. 

(3) A detailed history of each 

emission-data engine. For each engine, 

describe all of the following: 

(i) The emission-data engine’s 

construction, including its origin and 

buildup, steps you took to ensure that 

it represents production engines, any 

components you built specially for it, 

and all the components you include in 

your application for certification. 

(ii) How you accumulated engine 

operating hours (service accumulation), 

including the dates and the number of 

hours accumulated. 

(iii) All maintenance, including 

modifications, parts changes, and other 

service, and the dates and reasons for 

the maintenance. 

(iv) All your emission tests, including 

documentation on routine and standard 

tests, as specified in part 40 CFR part 

1065, and the date and purpose of each 

test. 

(v) All tests to diagnose engine or 

emission control performance, giving 

the date and time of each and the 

reasons for the test. 

(vi) Any other significant events. 

(4) Production figures for each engine 

family divided by assembly plant. 

(5) Keep a list of engine identification 

numbers for all the engines you produce 

under each certificate of conformity. 

(c) Keep data from routine emission 

tests (such as test cell temperatures and 

relative humidity readings) for one year 

after we issue the associated certificate 

of conformity. Keep all other 

information specified in paragraph (a) of 

this section for eight years after we issue 

your certificate. 

(d) Store these records in any format 

and on any media, as long as you can 

promptly send us organized, written 

records in English if we ask for them. 

You must keep these records readily 

available. We may review them at any 

time. 

(e) Send us copies of any engine 

maintenance instructions or 

explanations if we ask for them. 

§ 1045.255 What decisions may EPA make 

regarding my certificate of conformity? 

(a) If we determine your application is 

complete and shows that the engine 

family meets all the requirements of this 

part and the Act, we will issue a 

certificate of conformity for your engine 

family for that model year. We may 

make the approval subject to additional 

conditions. 

(b) We may deny your application for 

certification if we determine that your 

engine family fails to comply with 

emission standards or other 

requirements of this part or the Act. Our 

decision may be based on a review of all 

information available to us. If we deny 

your application, we will explain why 

in writing. 

(c) In addition, we may deny your 

application or suspend or revoke your 

certificate if you do any of the 

following: 

(1) Refuse to comply with any testing 

or reporting requirements. 

(2) Submit false or incomplete 

information (paragraph (e) of this 

section applies if this is fraudulent). 

(3) Render inaccurate any test data. 

(4) Deny us from completing 

authorized activities (see 40 CFR 

1068.20). This includes a failure to 

provide reasonable assistance. 


sroberts on PROD1PC70 with PROPOSALS
28274 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(5) Produce engines for importation 

into the United States at a location 

where local law prohibits us from 

carrying out authorized activities. 

(6) Fail to supply requested 

information or amend your application 

to include all engines being produced. 

(7) Take any action that otherwise 

circumvents the intent of the Act or this 

part. 

(d) We may void your certificate if 

you do not keep the records we require 

or do not give us information as 

required under this part or the Act. 

(e) We may void your certificate if we 

find that you intentionally submitted 

false or incomplete information. 

(f) If we deny your application or 

suspend, revoke, or void your 

certificate, you may ask for a hearing 

(see § 1045.820). 

Subpart D—Testing Production-line 

Engines 

§ 1045.301 When must I test my 

production-line engines? 

(a) If you produce engines that are 

subject to the requirements of this part, 

you must test them as described in this 

subpart, except as follows: 

(1) Small-volume engine 

manufacturers may omit testing under 

this subpart. 

(2) We may exempt engine families 

with a projected U.S.-directed 

production volume below 150 units 

from routine testing under this subpart. 

Request this exemption in the 

application for certification and include 

your basis for projecting a production 

volume below 150 units. You must 

promptly notify us if your actual 

production exceeds 150 units during the 

model year. If you exceed the 

production limit or if there is evidence 

of a nonconformity, we may require you 

to test production-line engines under 

this subpart, or under 40 CFR part 1068, 

subpart E, even if we have approved an 

exemption under this paragraph (a)(2). 

(b) We may suspend or revoke your 

certificate of conformity for certain 

engine families if your production-line 

engines do not meet the requirements of 

this part or you do not fulfill your 

obligations under this subpart (see 

§§ 1045.325 and 1045.340). 

(c) Other regulatory provisions 

authorize us to suspend, revoke, or void 

your certificate of conformity, or order 

recalls for engine families without 

regard to whether they have passed 

these production-line testing 

requirements. The requirements of this 

subpart do not affect our ability to do 

selective enforcement audits, as 

described in 40 CFR part 1068. 

Individual engines in families that pass 

these production-line testing 

requirements must also conform to all 

applicable regulations of this part and 

40 CFR part 1068. 

(d) You may ask to use an alternate 

program for testing production-line 

engines. In your request, you must show 

us that the alternate program gives equal 

assurance that your products meet the 

requirements of this part. We may waive 

some or all of this subpart’s 

requirements if we approve your 

alternate program. 

(e) If you certify an engine family with 

carryover emission data, as described in 

§ 1045.235(c), and these equivalent 

engine families consistently pass the 

production-line testing requirements 

over the preceding two-year period, you 

may ask for a reduced testing rate for 

further production-line testing for that 

family. The minimum testing rate is one 

engine per engine family. If we reduce 

your testing rate, we may limit our 

approval to any number of model years. 

In determining whether to approve your 

request, we may consider the number of 

engines that have failed the emission 

tests. 

(f) We may ask you to make a 

reasonable number of production-line 

engines available for a reasonable time 

so we can test or inspect them for 

compliance with the requirements of 

this part. See 40 CFR 1068.27. 

§ 1045.305 How must I prepare and test my 

production-line engines? 

This section describes how to prepare 

and test production-line engines. You 

must assemble the test engine in a way 

that represents the assembly procedures 

for other engines in the engine family. 

You must ask us to approve any 

deviations from your normal assembly 

procedures for other production engines 

in the engine family. 

(a) Test procedures. Test your 

production-line engines using the 

applicable testing procedures in subpart 

F of this part to show you meet the dutycycle emission standards in subpart B of 

this part. The not-to-exceed standards 

apply for this testing, but you need not 

do additional testing to show that 

production-line engines meet the not-toexceed standards. 

(b) Modifying a test engine. Once an 

engine is selected for testing (see 

§ 1045.310), you may adjust, repair, 

prepare, or modify it or check its 

emissions only if one of the following is 

true: 

(1) You document the need for doing 

so in your procedures for assembling 

and inspecting all your production 

engines and make the action routine for 

all the engines in the engine family. 

(2) This subpart otherwise specifically 

allows your action. 

(3) We approve your action in 

advance. 

(c) Engine malfunction. If an engine 

malfunction prevents further emission 

testing, ask us to approve your decision 

to either repair the engine or delete it 

from the test sequence. 

(d) Setting adjustable parameters. 

Before any test, we may require you to 

adjust any adjustable parameter to any 

setting within its physically adjustable 

range. 

(1) We may require you to adjust idle 

speed outside the physically adjustable 

range as needed, but only until the 

engine has stabilized emission levels 

(see paragraph (e) of this section). We 

may ask you for information needed to 

establish an alternate minimum idle 

speed. 

(2) We may specify adjustments 

within the physically adjustable range 

by considering their effect on emission 

levels, as well as how likely it is 

someone will make such an adjustment 

with in-use engines. 

(e) Stabilizing emission levels. You 

may operate the engine to stabilize the 

emission levels before you test 

production-line engines. Using good 

engineering judgment, operate your 

engines in a way that represents the way 

production engines will be used. You 

may operate each engine for no more 

than the greater of two periods: 

(1) 12 hours. 

(2) The number of hours you operated 

your emission-data engine for certifying 

the engine family (see 40 CFR part 1065, 

subpart E, or the applicable regulations 

governing how you should prepare your 

test engine). 

(f) Damage during shipment. If 

shipping an engine to a remote facility 

for production-line testing makes 

necessary an adjustment or repair, you 

must wait until after the initial emission 

test to do this work. We may waive this 

requirement if the test would be 

impossible or unsafe, or if it would 

permanently damage the engine. Report 

to us in your written report under 

§ 1045.345 all adjustments or repairs 

you make on test engines before each 

test. 

(g) Retesting after invalid tests. You 

may retest an engine if you determine 

an emission test is invalid under 

subpart F of this part. Explain in your 

written report reasons for invalidating 

any test and the emission results from 

all tests. If you retest an engine, you 

may ask us to substitute results of the 

new tests for the original ones. You 

must ask us within ten days of testing. 

We will generally answer within ten 

days after we receive your information. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28275 

§ 1045.310 How must I select engines for 

production-line testing? 

(a) Test engines from each engine 

family as described in this section based 

on test periods, as follows: 

(1) For engine families with projected 

U.S.-directed production volume of at 

least 1,600, the test periods are 

consecutive quarters (3 months). 

However, if your annual production 

period is less than 12 months long, you 

may take the following alternative 

approach to define quarterly test 

periods: 

(i) If your annual production period is 

120 days or less, the whole model year 

constitutes a single test period. 

(ii) If your annual production period 

is 121 to 210 days, divide the annual 

production period evenly into two test 

periods. 

(iii) If your annual production period 

is 211 to 300 days, divide the annual 

production period evenly into three test 

periods. 

(iv) If your annual production period 

is 301 days or longer, divide the annual 

production period evenly into four test 

periods. 

(2) For engine families with projected 

U.S.-directed production volume below 

1,600, the whole model year constitutes 

a single test period. 

(b) Early in each test period, randomly 

select and test an engine from the end 

of the assembly line for each engine 

family. 

(1) In the first test period for newly 

certified engines, randomly select and 

test one more engine. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. 

(2) In later test periods of the same 

model year, combine the new test result 

with all previous testing in the model 

year. Then, calculate the required 

sample size for the model year as 

described in paragraph (c) of this 

section. 

(3) In the first test period for engine 

families relying on previously submitted 

test data, combine the new test result 

with the last test result from the 

previous model year. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. Use the last test result from the 

previous model year only for this first 

calculation. For all subsequent 

calculations, use only results from the 

current model year. 

(c) Calculate the required sample size 

for each engine family. Separately 

calculate this figure for HC+NOX and 

CO. The required sample size is the 

greater of these calculated values. Use 

the following equation: 

N = [(t95 × s)/(x ¥ STD)]2 + 1 

Where: 

N = Required sample size for the model year. 

t95 = 95% confidence coefficient, which 

depends on the number of tests 

completed, n, as specified in the table in 

paragraph (c)(1) of this section. It defines 

95% confidence intervals for a one-tail 

distribution. 

x = Mean of emission test results of the 

sample. 

STD = Emission standard (or family emission 

limit, if applicable). 

s = Test sample standard deviation (see 

paragraph (c)(2) of this section). 

(1) Determine the 95% confidence 

coefficient, t95, from the following table: 

n t95 n t95 n t95

2 6.31 12 1.80 22 1.72 

3 2.92 13 1.78 23 1.72 

4 2.35 14 1.77 24 1.71 

5 2.13 15 1.76 25 1.71 

6 2.02 16 1.75 26 1.71 

7 1.94 17 1.75 27 1.71 

8 1.90 18 1.74 28 1.70 

9 1.86 19 1.73 29 1.70 

10 1.83 20 1.73 30+ 1.70 

11 1.81 21 1.72 ................................... ...................................

(2) Calculate the standard deviation, 

s, for the test sample using the 

following formula: 

s = [S(Xi ¥ x)2/(n ¥ 1)]1/2

Where: 

Xi = Emission test result for an individual 

engine. 

n = The number of tests completed in an 

engine family. 

(d) Use final deteriorated test results 

to calculate the variables in the 

equations in paragraph (c) of this 

section (see § 1045.315(a)). 

(e) After each new test, recalculate the 

required sample size using the updated 

mean values, standard deviations, and 

the appropriate 95-percent confidence 

coefficient. 

(f) Distribute the remaining engine 

tests evenly throughout the rest of the 

year. You may need to adjust your 

schedule for selecting engines if the 

required sample size changes. If your 

scheduled quarterly testing for the 

remainder of the model year is sufficient 

to meet the calculated sample size, you 

may wait until the next quarter to do 

additional testing. Continue to 

randomly select engines from each 

engine family. 

(g) Continue testing until one of the 

following things happens: 

(1) After completing the minimum 

number of tests required in paragraph 

(b) of this section, the number of tests 

completed in an engine family, n, is 

greater than the required sample size, N, 

and the sample mean, x, is less than or 

equal to the emission standard. For 

example, if N = 5.1 after the fifth test, 

the sample-size calculation does not 

allow you to stop testing. 

(2) The engine family does not 

comply according to § 1045.315. 

(3) You test 30 engines from the 

engine family. 

(4) You test one percent of your 

projected annual U.S.-directed 

production volume for the engine 

family, rounded to the nearest whole 

number. Do not count an engine under 

this paragraph (g)(4) if it fails to meet an 

applicable emission standard. 

(5) You choose to declare that the 

engine family does not comply with the 

requirements of this subpart. 

(h) If the sample-size calculation 

allows you to stop testing for one 

pollutant but not another, you must 

continue measuring emission levels of 

all pollutants for any additional tests 

required under this section. However, 

you need not continue making the 

calculations specified in this section for 

the pollutant for which testing is not 

required. This paragraph (h) does not 

affect the number of tests required 

under this section or the remedial steps 

required under § 1045.320. 

(i) You may elect to test more 

randomly chosen engines than we 

require under this section. Include these 

engines in the sample-size calculations. 


sroberts on PROD1PC70 with PROPOSALS
28276 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

§ 1045.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

This section describes the pass-fail 

criteria for the production-line testing 

requirements. We apply these criteria on 

an engine-family basis. See § 1045.320 

for the requirements that apply to 

individual engines that fail a 

production-line test. 

(a) Calculate your test results as 

follows: 

(1) Initial and final test results. 

Calculate and round the test results for 

each engine. If you do several tests on 

an engine, calculate the initial test 

results, then add them together and 

divide by the number of tests and round 

for the final test results on that engine. 

(2) Final deteriorated test results. 

Apply the deterioration factor for the 

engine family to the final test results 

(see § 1045.240(c)). 

(3) Round deteriorated test results. 

Round the results to the number of 

decimal places in the emission standard 

expressed to one more decimal place. 

(b) Construct the following CumSum 

Equation for each engine family for 

HC+NOX and CO emissions: 

Ci = Max [0 or Ci-1 + Xi ¥ (STD + 0.25 

× s)] 

Where: 

Ci = The current CumSum statistic. 

Ci-1 = The previous CumSum statistic. For the 

first test, the CumSum statistic is 0 (i.e. 

C1 = 0). 

Xi = The current emission test result for an 

individual engine. 

STD = Emission standard (or family emission 

limit, if applicable). 

(c) Use final deteriorated test results 

to calculate the variables in the equation 

in paragraph (b) of this section (see 

§ 1045.315(a)). 

(d) After each new test, recalculate the 

CumSum statistic. 

(e) If you test more than the required 

number of engines, include the results 

from these additional tests in the 

CumSum Equation. 

(f) After each test, compare the 

current CumSum statistic, Ci, to the 

recalculated Action Limit, H, defined as 

H = 5.0 × s. 

(g) If the CumSum statistic exceeds 

the Action Limit in two consecutive 

tests, the engine family fails the 

production-line testing requirements of 

this subpart. Tell us within ten working 

days if this happens. You may request 

to amend the application for 

certification to raise the FEL of the 

entire engine family as described in 

§ 1045.225(f). 

(h) If you amend the application for 

certification for an engine family under 

§ 1045.225, do not change any previous 

calculations of sample size or CumSum 

statistics for the model year. 

§ 1045.320 What happens if one of my 

production-line engines fails to meet 

emission standards? 

(a) If you have a production-line 

engine with final deteriorated test 

results exceeding one or more emission 

standards (see § 1045.315(a)), the 

certificate of conformity is automatically 

suspended for that failing engine. You 

must take the following actions before 

your certificate of conformity can cover 

that engine: 

(1) Correct the problem and retest the 

engine to show it complies with all 

emission standards. 

(2) Include in your written report a 

description of the test results and the 

remedy for each engine (see § 1045.345). 

(b) You may request to amend the 

application for certification to raise the 

FEL of the entire engine family at this 

point (see § 1045.225). 

§ 1045.325 What happens if an engine 

family fails the production-line testing 

requirements? 

(a) We may suspend your certificate of 

conformity for an engine family if it fails 

under § 1045.315. The suspension may 

apply to all facilities producing engines 

from an engine family, even if you find 

noncompliant engines only at one 

facility. 

(b) We will tell you in writing if we 

suspend your certificate in whole or in 

part. We will not suspend a certificate 

until at least 15 days after the engine 

family fails. The suspension is effective 

when you receive our notice. 

(c) Up to 15 days after we suspend the 

certificate for an engine family, you may 

ask for a hearing (see § 1045.820). If we 

agree before a hearing occurs that we 

used erroneous information in deciding 

to suspend the certificate, we will 

reinstate the certificate. 

(d) Section 1045.335 specifies steps 

you must take to remedy the cause of 

the engine family’s production-line 

failure. All the engines you have 

produced since the end of the last test 

period are presumed noncompliant and 

should be addressed in your proposed 

remedy. We may require you to apply 

the remedy to engines produced earlier 

if we determine that the cause of the 

failure is likely to have affected the 

earlier engines. 

(e) You may request to amend the 

application for certification to raise the 

FEL of the engine family before or after 

we suspend your certificate if you meet 

the requirements of § 1045.225(f). We 

will approve your request if the failure 

is not caused by a defect and it is clear 

that you used good engineering 

judgment in establishing the original 

FEL. 

§ 1045.330 May I sell engines from an 

engine family with a suspended certificate 

of conformity? 

You may sell engines that you 

produce after we suspend the engine 

family’s certificate of conformity under 

§ 1045.315 only if one of the following 

occurs: 

(a) You test each engine you produce 

and show it complies with emission 

standards that apply. 

(b) We conditionally reinstate the 

certificate for the engine family. We may 

do so if you agree to recall all the 

affected engines and remedy any 

noncompliance at no expense to the 

owner if later testing shows that the 

engine family still does not comply. 

§ 1045.335 How do I ask EPA to reinstate 

my suspended certificate? 

(a) Send us a written report asking us 

to reinstate your suspended certificate. 

In your report, identify the reason for 

noncompliance, propose a remedy for 

the engine family, and commit to a date 

for carrying it out. In your proposed 

remedy include any quality control 

measures you propose to keep the 

problem from happening again. 

(b) Give us data from production-line 

testing that shows the remedied engine 

family complies with all the emission 

standards that apply. 

§ 1045.340 When may EPA revoke my 

certificate under this subpart and how may 

I sell these engines again? 

(a) We may revoke your certificate for 

an engine family in the following cases: 

(1) You do not meet the reporting 

requirements. 

(2) Your engine family fails to comply 

with the requirements of this subpart 

and your proposed remedy to address a 

suspended certificate under § 1045.325 

is inadequate to solve the problem or 

requires you to change the engine’s 

design or emission control system. 

(b) To sell engines from an engine 

family with a revoked certificate of 

conformity, you must modify the engine 

family and then show it complies with 

the requirements of this part. 

(1) If we determine your proposed 

design change may not control 

emissions for the engine’s full useful 

life, we will tell you within five working 

days after receiving your report. In this 

case we will decide whether 

production-line testing will be enough 

for us to evaluate the change or whether 

you need to do more testing. 

(2) Unless we require more testing, 

you may show compliance by testing 

production-line engines as described in 

this subpart. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28277 

(3) We will issue a new or updated 

certificate of conformity when you have 

met these requirements. 

§ 1045.345 What production-line testing 

records must I send to EPA? 

Do all the following things unless we 

ask you to send us less information: 

(a) Within 30 calendar days of the end 

of each test period, send us a report 

with the following information: 

(1) Describe any facility used to test 

production-line engines and state its 

location. 

(2) State the total U.S.-directed 

production volume and number of tests 

for each engine family. 

(3) Describe how you randomly 

selected engines. 

(4) Describe each test engine, 

including the engine family’s 

identification and the engine’s model 

year, build date, model number, 

identification number, and number of 

hours of operation before testing. 

(5) Identify how you accumulated 

hours of operation on the engines and 

describe the procedure and schedule 

you used. 

(6) Provide the test number; the date, 

time and duration of testing; test 

procedure; initial test results before and 

after rounding; final test results; and 

final deteriorated test results for all 

tests. Provide the emission results for all 

measured pollutants. Include 

information for both valid and invalid 

tests and the reason for any 

invalidation. 

(7) Describe completely and justify 

any nonroutine adjustment, 

modification, repair, preparation, 

maintenance, or test for the test engine 

if you did not report it separately under 

this subpart. Include the results of any 

emission measurements, regardless of 

the procedure or type of engine. 

(8) Provide the CumSum analysis 

required in § 1045.315 and the samplesize calculation required in § 1045.310 

for each engine family. 

(9) Report on each failed engine as 

described in § 1045.320. 

(10) State the date the test period 

ended for each engine family. 

(b) We may ask you to add 

information to your written report so we 

can determine whether your new 

engines conform with the requirements 

of this subpart. 

(c) An authorized representative of 

your company must sign the following 

statement: 

We submit this report under sections 

208 and 213 of the Clean Air Act. Our 

production-line testing conformed 

completely with the requirements of 40 

CFR part 1045. We have not changed 

production processes or quality-control 

procedures for test engines in a way that 

might affect emission controls. All the 

information in this report is true and 

accurate to the best of my knowledge. I 

know of the penalties for violating the 

Clean Air Act and the regulations. 

(Authorized Company Representative) 

(d) Send electronic reports of 

production-line testing to the 

Designated Compliance Officer using an 

approved information format. If you 

want to use a different format, send us 

a written request with justification for a 

waiver. 

(e) We will send copies of your 

reports to anyone from the public who 

asks for them. Section 1045.815 

describes how we treat information you 

consider confidential. 

§ 1045.350 What records must I keep? 

(a) Organize and maintain your 

records as described in this section. We 

may review your records at any time. 

(b) Keep paper records of your 

production-line testing for eight years 

after you complete all the testing 

required for an engine family in a model 

year. You may use any additional 

storage formats or media if you like. 

(c) Keep a copy of the written reports 

described in § 1045.345. 

(d) Keep the following additional 

records: 

(1) A description of all test equipment 

for each test cell that you can use to test 

production-line engines. 

(2) The names of supervisors involved 

in each test. 

(3) The name of anyone who 

authorizes adjusting, repairing, 

preparing, or modifying a test engine 

and the names of all supervisors who 

oversee this work. 

(4) If you shipped the engine for 

testing, the date you shipped it, the 

associated storage or port facility, and 

the date the engine arrived at the testing 

facility. 

(5) Any records related to your 

production-line tests that are not in the 

written report. 

(6) A brief description of any 

significant events during testing not 

otherwise described in the written 

report or in this section. 

(7) Any information specified in 

§ 1045.345 that you do not include in 

your written reports. 

(e) If we ask, you must give us a more 

detailed description of projected or 

actual production figures for an engine 

family. We may ask you to divide your 

production figures by maximum engine 

power, displacement, fuel type, or 

assembly plant (if you produce engines 

at more than one plant). 

(f) Keep a list of engine identification 

numbers for all the engines you produce 

under each certificate of conformity. 

Give us this list within 30 days if we ask 

for it. 

(g) We may ask you to keep or send 

other information necessary to 

implement this subpart. 

Subpart E—In-use Testing 

§ 1045.401 What testing requirements 

apply to my engines that have gone into 

service? 

(a) We may perform in-use testing of 

any engine subject to the standards of 

this part. If you produce outboard or 

personal watercraft engines that are 

subject to the requirements of this part, 

you must test them as described in this 

subpart. The testing requirements 

described in this subpart do not apply 

to sterndrive/inboard engines. This 

generally involves testing engines in the 

field or removing them for measurement 

in a laboratory. 

(b) We may approve an alternate plan 

for showing that in-use engines comply 

with the requirements of this part if one 

of the following is true: 

(1) You produce 200 or fewer engines 

per year in the selected engine family. 

(2) You identify a unique aspect of 

your engine applications that keeps you 

from doing the required in-use testing. 

(c) We may void your certificate of 

conformity for an engine family if you 

do not meet your obligations under this 

part. 

(d) Independent of your responsibility 

to test in-use engines, we may choose at 

any time to do our own testing of your 

in-use engines. 

(e) If in-use testing shows that engines 

fail to meet emission standards or other 

requirements of this part, we may 

pursue a recall or other remedy as 

allowed by the Act (see § 1045.415). 

§ 1045.405 How does this program work? 

(a) You must test in-use engines for 

exhaust emissions from the families we 

select. We may select up to 25 percent 

of your engine families in any model 

year or one engine family if you have 

three or fewer families. When we select 

an engine family for testing, we may 

specify that you preferentially test 

engines based on the type of vessel. In 

addition, we may identify specific 

modes of operation or sampling times. 

You may choose to test additional 

engine families that we do not select. 

(b) The provisions of this paragraph 

(b) describe how test families are 

selected, depending on when we receive 

the application for certification. 

(1) If we receive the application by 

December 31 of a given calendar year for 

the following model year (for example, 

by December 31, 2009 for model year 


sroberts on PROD1PC70 with PROPOSALS
28278 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

2010), we would expect to select engine 

families for testing by February 28 of the 

model year. If we have not completed 

the selection of engine families by 

February 28, you may select your own 

engine families for in-use testing. In this 

case, you must make your selections 

and notify us which engine families you 

have selected by March 31. You should 

consider the following factors in 

selecting engine families, in priority 

order: 

(i) Select an engine family that has not 

recently been tested in an in-use testing 

regimen (and passed) under the 

provisions of this subpart. This should 

generally involve engine families that 

have not been selected in the previous 

two model years. If design changes have 

required new testing for certification, 

we would consider that this engine 

family has not been selected for in-use 

testing. 

(ii) Select an engine family if we have 

approved an alternative approach to 

establishing a deterioration factor under 

§ 1045.245(b)(7). 

(iii) Select the engine family with the 

highest projected U.S.-directed 

production volume. 

(2) If we receive an application for a 

given model year after December 31 of 

the previous calendar year, you must 

conduct in-use testing with that engine 

family without regard to the limitations 

specified in paragraph (a) of this 

section, unless we waive this 

requirement. We will generally waive 

testing under this paragraph (b)(2) only 

for small-volume engine manufacturers 

or in the case where similar testing was 

recently completed for a related engine 

family. 

(c) Send us an in-use testing plan for 

engine families selected for testing. 

Complete the testing within 24 calendar 

months after we approve your plan. 

Send us the in-use testing plan 

according to the following deadlines: 

(1) Within 12 calendar months after 

we direct you to test a particular engine 

family. 

(2) By February 28 of the following 

year if you select engine families for 

testing under paragraph (b)(1) of this 

section. 

(3) Within 12 calendar months after 

we approve certification for engine 

families subject to the requirements of 

paragraph (b)(2) of this section. 

(d) You may need to test engines from 

more than one model year at a given 

time. 

§ 1045.410 How must I select, prepare, and 

test my in-use engines? 

(a) You may make arrangements to 

select representative test engines from 

your own fleet or from other 

independent sources. 

(b) For the selected engine families, 

select engines that you or your 

customers have—

(1) Operated for at least 50 percent of 

the engine family’s useful life (see 

§ 1045.103(e)); 

(2) Not maintained or used in an 

abnormal way; and 

(3) Documented in terms of total 

hours of operation, maintenance, 

operating conditions, and storage. 

(c) Use the following methods to 

determine the number of engines you 

must test in each engine family: 

(1) Test at least two engines if you 

produce 2,000 or fewer engines in the 

model year from all engine families, or 

if you produce 500 or fewer engines 

from the selected engine family. 

Otherwise, test at least four engines. 

(2) If you successfully complete an inuse test program on an engine family 

and later certify an equivalent engine 

family with carryover emission data, as 

described in § 1045.235(d)(1), then test 

at least one engine instead of the testing 

rates in paragraph (c)(1) of this section. 

(3) If you test the minimum required 

number of engines and all comply fully 

with emission standards, you may stop 

testing. 

(4) For each engine that fails any 

applicable standard, test two more. 

Regardless of measured emission levels, 

you do not have to test more than ten 

engines in an engine family. You may 

do more tests than we require. 

(5) You may concede that the engine 

family does not comply before testing a 

total of ten engines. 

(d) You may do minimal maintenance 

to set components of a test engine to 

specifications for anything we do not 

consider an adjustable parameter (see 

§ 1045.205(r)). Limit maintenance to 

what is in the owner’s instructions for 

engines with that amount of service and 

age. Document all maintenance and 

adjustments. 

(e) You may do repeat measurements 

with a test engine; however, you must 

conduct the same number of tests on 

each engine. 

(f) For a test program on an engine 

family, choose one of the following 

methods to test your engines: 

(1) Remove the selected engines for 

testing in a laboratory. Use the 

applicable steady-state and transient 

procedures in subpart F of this part to 

show compliance with the duty-cycle 

standards in § 1045.103(a) or 

§ 1045.105(a). We may direct you to 

measure emissions on the dynamometer 

using the test procedures in § 1045.515 

to show compliance with the not-toexceed standards in § 1045.103(c) or 

§ 1045.105(c). 

(2) Test the selected engines while 

they remain installed in the vessel. Use 

the procedures in § 1045.515. Measure 

emissions during normal operation of 

the vessel to show compliance with the 

not-to-exceed standards in § 1045.103(c) 

or § 1045.105(c). We may direct you to 

include specific areas of normal 

operation. 

(g) You may ask us to waive parts of 

the prescribed test procedures if they 

are not necessary to determine in-use 

compliance. 

(h) Calculate the average emission 

levels for an engine family from the 

results for the set of tested engines. 

Round them to the number of decimal 

places in the emission standards 

expressed to one more decimal place. 

§ 1045.415 What happens if in-use engines 

do not meet requirements? 

(a) Determine the reason each in-use 

engine exceeds the emission standards. 

(b) If the average emission levels 

calculated in § 1045.410(h) exceed any 

of the emission standards that apply, 

notify us within fifteen days of 

completing testing on this family. 

Otherwise follow the reporting 

instructions in § 1045.420. 

(c) We will consider failure rates, 

average emission levels, and any 

defects—among other things—to decide 

on taking remedial action under this 

subpart (see 40 CFR 1068.505). We may 

consider the results from any voluntary 

additional testing you perform. We may 

also consider information related to 

testing from other engine families 

showing that you designed them to 

exceed the minimum requirements for 

controlling emissions. We may order a 

recall before or after you complete 

testing of an engine family if we 

determine a substantial number of 

engines do not conform to section 213 

of the Act or to this part. The scope of 

the recall may include other engine 

families in the same or different model 

years if the cause of the problem 

identified in paragraph (a) of this 

section applies more broadly than the 

tested engine family, as allowed by the 

Act. 

(d) If in-use testing reveals a design or 

manufacturing defect that prevents 

engines from meeting the requirements 

of this part, you must correct the defect 

as soon as possible for any future 

production for engines in every family 

affected by the defect. See 40 CFR 

1068.501 for additional requirements 

related to defect reporting. 

(e) You may voluntarily recall an 

engine family for emission failures, as 

described in 40 CFR 1068.535, unless 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28279 

we have ordered a recall for that family 

under 40 CFR 1068.505. 

(f) You have the right to a hearing 

before we order you to recall your 

engines or implement an alternative 

remedy (see § 1045.820). 

§ 1045.420 What in-use testing information 

must I report to EPA? 

(a) In a report to us within three 

months after you finish testing an 

engine family, do all the following: 

(1) Identify the engine family, model, 

serial number, and date of manufacture. 

(2) [Reserved] 

(3) Describe the specific reasons for 

disqualifying any engines for not being 

properly maintained or used. 

(4) For each engine selected for 

testing, include the following 

information: 

(i) Estimate the hours each engine was 

used before testing. 

(ii) Describe all maintenance, 

adjustments, modifications, and repairs 

to each test engine. 

(5) State the date and time of each test 

attempt. 

(6) Include the results of all emission 

testing, including incomplete or 

invalidated tests, if any. 

(b) Send electronic reports of in-use 

testing to the Designated Compliance 

Officer using an approved information 

format. If you want to use a different 

format, send us a written request with 

justification for a waiver. 

(c) We will send copies of your 

reports to anyone from the public who 

asks for them. See § 1045.815 for 

information on how we treat 

information you consider confidential. 

(d) We may ask for more information. 

§ 1045.425 What records must I keep? 

(a) Organize and maintain your 

records as described in this section. We 

may review your records at any time, so 

it is important to keep required 

information readily available. 

(b) Keep paper records of your in-use 

testing for one full year after you 

complete all the testing required for an 

engine family in a model year. You may 

use any additional storage formats or 

media if you like. 

(c) Keep a copy of the written reports 

described in § 1045.420. 

(d) Keep any additional records 

related to the procurement process. 

Subpart F—Test Procedures 

§ 1045.501 How do I run a valid emission 

test? 

(a) Applicability. This subpart is 

addressed to you as a manufacturer, but 

it applies equally to anyone who does 

testing for you, and to us when we 

perform testing to determine if your 

engines meet emission standards. 

(b) General requirements. Use the 

equipment and procedures for sparkignition engines in 40 CFR part 1065 to 

determine whether engines meet the 

duty-cycle emission standards in 

§§ 1045.103 and 1045.105. Measure the 

emissions of all regulated pollutants as 

specified in 40 CFR part 1065. Use the 

applicable duty cycles specified in 

§ 1045.505. Section 1045.515 describes 

the supplemental procedures for 

evaluating whether engines meet the 

not-to-exceed emission standards in 

§§ 1045.103(c) and 1045.105(c). 

(c) Fuels. Use the fuels and lubricants 

specified in 40 CFR part 1065, subpart 

H, for all the testing we require in this 

part, except as specified in § 1045.515. 

For service accumulation, use the test 

fuel or any commercially available fuel 

that is representative of the fuel that inuse engines will use. 

(d) Laboratory conditions. Ambient 

conditions for duty-cycle testing must 

be within the ranges specified in 40 CFR 

1065.520, except that atmospheric 

pressure must be between 94.0 and 

103.325 kPa. Humidity levels must 

represent actual in-use humidity levels. 

Emissions may not be corrected for the 

effects of test temperature, pressure, or 

humidity. 

(e) Special and alternate procedures. 

If you are unable to run the test cycle 

specified in this part for your engine 

(such as with constant-speed engines), 

use an alternate test cycle that will 

result in a cycle-weighted emission 

measurement equivalent to the expected 

average in-use emissions. This cycle 

must be approved under 40 CFR 

1065.10. You may use other special or 

alternate procedures to the extent we 

allow them under 40 CFR 1065.10. 

(f) Laboratory testing with portable 

analyzers. You may use portable 

emission measurement systems for any 

laboratory testing with highperformance engines, as specified in 40 

CFR 1065.901(b), without requesting 

approval. 

§ 1045.505 How do I test engines using 

discrete-mode or ramped-modal duty 

cycles? 

(a) This section describes how to test 

engines under steady-state conditions. 

We allow you to perform tests with 

either discrete-mode or ramped-modal 

sampling. You must use the modal 

testing method for certification and all 

other testing you perform for an engine 

family. If we test your engines to 

confirm that they meet emission 

standards, we will use the modal testing 

method you select for your own testing. 

We may also perform other testing as 

allowed by the Clean Air Act. Conduct 

duty-cycle testing as follows: 

(1) For discrete-mode testing, sample 

emissions separately for each mode, 

then calculate an average emission level 

for the whole cycle using the weighting 

factors specified for each mode. In each 

mode, operate the engine for at least 5 

minutes, then sample emissions for at 

least 1 minute. Calculate cycle statistics 

for each mode and compare with the 

specified values in 40 CFR 1065.514 to 

confirm that the test is valid. 

(2) For ramped-modal testing, start 

sampling at the beginning of the first 

mode and continue sampling until the 

end of the last mode. Calculate 

emissions and cycle statistics the same 

as for transient testing as specified in 40 

CFR part 1065, subpart G. 

(b) Measure emissions by testing the 

engine on a dynamometer to determine 

whether it meets the emission standards 

in § 1045.101(a). Use the 5-mode duty 

cycle or the corresponding rampedmodal cycle described in Appendix I of 

this part. 

(c) During idle mode, operate the 

engine with the following parameters: 

(1) Hold the speed within your 

specifications. 

(2) Set the engine to operate at its 

minimum fueling rate. 

(3) Keep engine torque under 5 

percent of maximum torque at 

maximum test speed. 

(d) For full-load operating modes, 

operate the engine at wide-open throttle. 

(e) See 40 CFR part 1065 for detailed 

specifications of tolerances and 

calculations. 

§ 1045.515 What are the test procedures 

related to not-to-exceed standards? 

(a) This section describes the 

procedures to determine whether your 

engines meet the not-to-exceed emission 

standards in §§ 1045.103(c) and 

1045.105(c). These procedures may 

include any normal engine operation 

and ambient conditions that the engines 

may experience in use. Paragraphs (b) 

and (c) of this section define the limits 

of what we will consider normal engine 

operation and ambient conditions. Use 

the test procedures we specify in 

§ 1045.501, except for the provisions we 

specify in this section. Measure 

emissions with one of the following 

procedures: 

(1) For laboratory testing of installed 

engines, remove the selected engines 

from the vessel. You may use an engine 

dynamometer to simulate normal 

operation, as described in this section. 

(2) For laboratory testing of outboard 

engines, you may use an engine 

dynamometer to simulate normal 

operation, as described in this section, 

or you may test it using the procedures 


sroberts on PROD1PC70 with PROPOSALS
28280 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

specified in paragraph (3) of this 

paragraph (a). 

(3) Test selected sterndrive/inboard 

engines and personal watercraft engines 

while they remain installed in the 

vessel. Test selected outboard engines in 

their in-use configuration while 

mounted appropriately on a vessel. In 

40 CFR part 1065, subpart J, we describe 

the equipment and sampling methods 

for testing engines in the field. Use fuel 

meeting the specifications of 40 CFR 

part 1065, subpart H, or a fuel typical 

of what you would expect the engine to 

use in service. 

(b) Engine testing may occur under a 

range of ambient conditions as follows: 

(1) Engine testing may occur under 

the following ranges of ambient 

conditions without correcting measured 

emission levels: 

(i) Barometric pressure must be 

between 94.0 and 103.325 kPa. 

(ii) Ambient air temperature must be 

between 13 and 35 °C. 

(iii) Ambient water temperature must 

be between 5 and 27 °C. 

(iv) Any ambient humidity level. 

(2) Engine testing may occur outside 

the conditions described in paragraph 

(b)(1) of this section, as long as 

measured values are corrected to be 

equivalent to the nearest end of the 

specified range using good engineering 

practice. 

(c) An engine’s emissions may not 

exceed the NTE standards in 

§ 1045.103(c) or § 1045.105(c) for any 

continuous sampling period of at least 

30 seconds under the following ranges 

of engine operation: 

(1) Engine operation during the 

emission sampling period may include 

any nominally steady-state combination 

of speeds and loads within the 

applicable zone defined by segments on 

an engine’s power vs. speed map 

specified in paragraph (c)(2) of this 

section, except as follows: 

(i) You may request that we specify a 

narrower zone, as long as the modified 

zone includes all points where your 

engines are expected to normally 

operate in use, but not including any 

points at which engine speed is below 

40 percent of maximum test speed or 

engine load is below 25.3 percent of 

maximum torque at maximum test 

speed. 

(ii) You must notify us if you design 

your engines for normal in-use 

operation outside the specified zone. If 

we learn that normal in-use operation 

for your engines includes other speeds 

and loads, we may specify a broader 

zone, as long as the modified zone is 

limited to normal in-use operation for 

speeds greater than 40 percent of 

maximum test speed and loads greater 

than 25.3 percent of maximum torque at 

maximum test speed. 

(2) The NTE zone for testing engines 

under this section is defined by the 

following segments on an engine’s 

torque vs. speed map, as illustrated in 

Figure 1 of this section: 

(i) Speed at or above 40 percent of 

maximum test speed. 

(ii) Speeds and torques below the line 

defined by the following equation: 

Normalized torque = 1.5 × normalized 

speed ¥ 0.16 

(iii) Speeds and torques at or below 

the engine’s mapped torque values. 

(iv) Speeds at or below 100 percent of 

maximum test speed. 

(v) Speeds and torques above the line 

defined by the following equation: 

Normalized torque = (normalized 

speed)1.5 ¥ 0.08 

(vi) Torques at or above 25.3 percent 

of maximum torque at maximum test 

speed. 

(3) The NTE zone described in 

paragraph (c)(2) of this section is 

divided into the following subzones for 

determining the applicable NTE 

standards, as illustrated in Figure 1 of 

this section: 

(i) Subzone 1 includes all operation in 

the NTE zone characterized by speeds 

above 90 percent of maximum test 

speed or loads above 100 percent of 

maximum torque at maximum test 

speed. 

(ii) Subzone 2 includes all operation 

in the NTE zone characterized by speeds 

above 70 percent of maximum test 

speed or loads above 80 percent of 

maximum torque at maximum test 

speed, but excluding Subzone 1. 

(iii) Subzone 3 includes all operation 

in the NTE zone characterized by speeds 

above 50 percent of maximum test 

speed, but excluding Subzones 1 and 2. 

(iv) Subzone 4 includes all operation 

in the NTE zone excluding Subzones 1, 

2, and 3. 

(4) The sampling period may not 

begin until the engine has reached 

stable operating temperatures. For 

example, this would exclude engine 

operation after starting until the 

thermostat starts modulating coolant 

temperature. The sampling period may 

also not include engine starting. 

Figure 1 to § 1045.515—NTE Zone and 

Subzones 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28281 

§ 1045.520 What testing must I perform to 

establish deterioration factors? 

Sections 1045.240 and 1045.245 

describe the required methods for 

testing to establish deterioration factors 

for an engine family. 

Subpart G—Special Compliance 

Provisions 

§ 1045.601 What compliance provisions 

apply to these engines? 

Engine and vessel manufacturers, as 

well as owners, operators, and 

rebuilders of engines subject to the 

requirements of this part, and all other 

persons, must observe the provisions of 

this part, the requirements and 

prohibitions in 40 CFR part 1068, and 

the provisions of the Act. 

§ 1045.605 What provisions apply to 

engines already certified under the motorvehicle program or other nonroad sparkignition engine programs? 

(a) General provisions. If you are an 

engine manufacturer, this section allows 

you to introduce new propulsion marine 

engines into U.S. commerce if they are 

already certified to the requirements 

that apply to spark-ignition engines 

under 40 CFR parts 85 and 86 or part 

1048 for the appropriate model year. For 

outboard or personal watercraft engines, 

you may also introduce the engines into 

U.S. commerce if they are already 

certified to the requirements that apply 

to engines under 40 CFR part 1054 for 

the appropriate model year. If you 

comply with all the provisions of this 

section, we consider the certificate 

issued under 40 CFR part 86, 1048, or 

1054 for each engine to also be a valid 

certificate of conformity under this part 

1045 for its model year, without a 

separate application for certification 

under the requirements of this part 

1045. 

(b) Vessel-manufacturer provisions. If 

you are not an engine manufacturer, you 

may produce vessels using motorvehicle engines or nonroad sparkignition engines under this section as 

long as you meet all the requirements 

and conditions specified in paragraph 

(d) of this section. If you modify the 

engine in any of the ways described in 

paragraph (d)(2) of this section, we will 

consider you a manufacturer of a new 

propulsion marine engine. Such engine 

modifications prevent you from using 

the provisions of this section. 

(c) Liability. Engines for which you 

meet the requirements of this section are 

exempt from all the requirements and 

prohibitions of this part, except for 

those specified in this section. Engines 

exempted under this section must meet 

all the applicable requirements from 40 

CFR parts 85 and 86, or part 1048, or 

part 1054. This applies to engine 

manufacturers, vessel manufacturers 

who use these engines, and all other 

persons as if these engines were used in 

applications other than for installation 

as propulsion marine engines. The 

prohibited acts of 40 CFR 1068.101(a)(1) 

apply to these new engines and vessels; 

however, we consider the certificate 

issued under 40 CFR part 86, 1048, or 

1054 for each engine to also be a valid 

certificate of conformity under this part 

1045 for its model year. If we make a 

determination that these engines do not 

conform to the regulations during their 

useful life, we may require you to recall 

them under 40 CFR part 86 or 1068. 

(d) Specific requirements. If you are 

an engine or vessel manufacturer and 

meet all the following criteria and 


sroberts on PROD1PC70 with PROPOSALSEP18MY07.005</GPH>
28282 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

requirements regarding your new 

propulsion marine engine, the engine is 

eligible for an exemption under this 

section: 

(1) Your engine must be covered by a 

valid certificate of conformity issued 

under 40 CFR part 86, 1048, or 1054. 

(2) You must not make any changes to 

the certified engine that could 

reasonably be expected to increase its 

exhaust emissions for any pollutant, or 

its evaporative emissions. For example, 

if you make any of the following 

changes to one of these engines, you do 

not qualify for this exemption: 

(i) Change any fuel-system or 

evaporative-system parameters from the 

certified configuration (this does not 

apply to refueling controls). 

(ii) Change, remove, or fail to properly 

install any other component, element of 

design, or calibration specified in the 

engine manufacturer’s application for 

certification. This includes 

aftertreatment devices and all related 

components. 

(iii) Modify or design the marine 

engine cooling system so that 

temperatures or heat rejection rates are 

outside the original engine 

manufacturer’s specified ranges. 

(3) You must show that less than 5 

percent of the engine family’s total sales 

in the United States are used in marine 

applications. This includes engines 

used in any application without regard 

to which company manufactures the 

vessel or equipment. Show this as 

follows: 

(i) If you are the original manufacturer 

of the engine, base this showing on your 

sales information. 

(ii) In all other cases, you must get the 

original manufacturer of the engine to 

confirm this based on its sales 

information. 

(4) You must ensure that the engine 

has the label we require under 40 CFR 

part 86, 1048, or 1054. 

(5) You must add a permanent 

supplemental label to the engine in a 

position where it will remain clearly 

visible after installation in the vessel. In 

the supplemental label, do the 

following: 

(i) Include the heading: ‘‘MARINE 

ENGINE EMISSION CONTROL 

INFORMATION’’. 

(ii) Include your full corporate name 

and trademark. You may instead 

include the full corporate name and 

trademark of another company you 

choose to designate. 

(iii) State: ‘‘THIS ENGINE WAS 

ADAPTED FOR MARINE USE 

WITHOUT AFFECTING ITS EMISSION 

CONTROLS.’’. 

(iv) If the modified engine is certified 

as a motor-vehicle engine, also state: 

‘‘THE EMISSION CONTROL SYSTEM 

DEPENDS ON THE USE OF FUEL 

MEETING SPECIFICATIONS THAT 

APPLY FOR MOTOR-VEHICLE 

APPLICATIONS. OPERATING THE 

ENGINE ON OTHER FUELS MAY BE A 

VIOLATION OF FEDERAL LAW.’’. 

(v) State the date you finished 

modifying the engine (month and year), 

if applicable. 

(6) The original and supplemental 

labels must be readily visible after the 

engine is installed in the vessel or, if the 

vessel obscures the engine’s emission 

control information label, the vessel 

manufacturer must attach duplicate 

labels, as described in 40 CFR 1068.105. 

(7) Send the Designated Compliance 

Officer a signed letter by the end of each 

calendar year (or less often if we tell 

you) with all the following information: 

(i) Identify your full corporate name, 

address, and telephone number. 

(ii) List the engine or vessel models 

you expect to produce under this 

exemption in the coming year and 

describe your basis for meeting the sales 

restrictions of paragraph (d)(3) of this 

section. 

(iii) State: ‘‘We produce each listed 

[engine or vessel] model without 

making any changes that could increase 

its certified emission levels, as 

described in 40 CFR 1045.605.’’. 

(e) Failure to comply. If your engines 

do not meet the criteria listed in 

paragraph (d) of this section, they will 

be subject to the standards, 

requirements, and prohibitions of this 

part 1045 and the certificate issued 

under 40 CFR part 86, 1048, or 1054 

will not be deemed to also be a 

certificate issued under this part 1045. 

Introducing these engines into U.S. 

commerce without a valid exemption or 

certificate of conformity under this part 

violates the prohibitions in 40 CFR 

1068.101(a)(1). 

(f) Data submission. We may require 

you to send us emission test data on one 

of the duty cycles specified in subpart 

F of this part. 

(g) Participation in averaging, banking 

and trading. Engines adapted for marine 

use under this section may not generate 

or use emission credits under this part 

1045. These engines may generate 

credits under the ABT provisions in 40 

CFR part 86 or 1054. These engines 

must use emission credits under 40 CFR 

part 86 or 1054 if they are certified to 

an FEL that exceeds a standard that 

applies under 40 CFR part 86 or 1054. 

§ 1045.620 What are the provisions for 

exempting engines used solely for 

competition? 

The provisions of this section apply 

for new engines and vessels built on or 

after January 1, 2009. 

(a) We may grant you an exemption 

from the standards and requirements of 

this part for a new engine on the 

grounds that it is to be used solely for 

competition. The requirements of this 

part, other than those in this section, do 

not apply to engines that we exempt for 

use solely for competition. 

(b) We will exempt engines that we 

determine will be used solely for 

competition. The basis of our 

determination is described in 

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

Exemptions granted under this section 

are good for only one model year and 

you must request renewal for each 

subsequent model year. We will not 

approve your renewal request if we 

determine the engine will not be used 

solely for competition. 

(c) Engines meeting all the following 

criteria are considered to be used solely 

for competition: 

(1) Neither the engine nor any vessels 

containing the engine may be displayed 

for sale in any public dealership or 

otherwise offered for sale to the general 

public. 

(2) Sale of the vessel in which the 

engine is installed must be limited to 

professional racing teams, professional 

racers, or other qualified racers. 

(3) The engine and the vessel in 

which it is installed must have 

performance characteristics that are 

substantially superior to noncompetitive 

models. 

(4) The engines are intended for use 

only as specified in paragraph (e) of this 

section. 

(d) You may ask us to approve an 

exemption for engines not meeting the 

criteria listed in paragraph (c) of this 

section as long as you have clear and 

convincing evidence that the engines 

will be used solely for competition. 

(e) Engines are considered to be used 

solely for competition only if their use 

is limited to competition events 

sanctioned by the U.S. Coast Guard or 

another public organization with 

authorizing permits for participating 

competitors. Operation of such engines 

may include only racing events or trials 

to qualify for racing events. Authorized 

attempts to set speed records (and the 

associated official trials) are also 

considered racing events. Engines will 

not be considered to be used solely for 

competition if they are ever used for any 

recreational or other noncompetitive 

purpose. Use of exempt engines in any 

recreational events, such as poker runs 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28283 

and lobsterboat races, is a violation of 

40 CFR 1068.101(b)(4). 

(f) You must permanently label 

engines exempted under this section to 

clearly indicate that they are to be used 

only for competition. Failure to properly 

label an engine will void the exemption 

for that engine. 

(g) If we request it, you must provide 

us any information we need to 

determine whether the engines are used 

solely for competition. This would 

include documentation regarding the 

number of engines and the ultimate 

purchaser of each engine as well as any 

documentation showing a vessel 

manufacturer’s request for an exempted 

engine. Keep these records for five 

years. 

§ 1045.630 What is the personal-use 

exemption. 

This section applies to individuals 

who manufacture recreational vessels 

for personal use. If you and your vessel 

meet all the conditions of this section, 

the vessel and its engine are considered 

to be exempt from the standards and 

requirements of this part that apply to 

new engines, including standards and 

requirements related to evaporative 

emissions. For example, you are not 

required to use certified fuel system 

components or otherwise obtain 

certificates of conformity showing that 

the vessel meets evaporative emission 

standards, and you do not need to 

install a certified engine. 

(a) The vessel may not be 

manufactured from a previously 

certified vessel, nor may it be 

manufactured from a partially complete 

vessel that is equivalent to a certified 

vessel. The vessel must be 

manufactured primarily from 

unassembled components, but may 

incorporate some preassembled 

components. For example, fully 

preassembled steering assemblies may 

be used. You may also power the vessel 

with an engine that was previously used 

in a highway or land-based nonroad 

application. 

(b) The vessel may not be sold within 

five years after the date of final 

assembly. 

(c) No individual may manufacture 

more than one vessel in any ten-year 

period under this exemption. 

(d) You may not use the vessel in any 

revenue-generating service or for any 

other commercial purpose. For example, 

this exemption does not apply for 

vessels used in commercial fishing or 

charter service. 

(e) This exemption may not be used 

to circumvent the requirements of this 

part or the requirements of the Clean Air 

Act. For example, this exemption would 

not cover a case in which a person sells 

an almost completely assembled vessel 

to another person, who would then 

complete the assembly. This would be 

considered equivalent to the sale of the 

complete new vessel. This section also 

does not allow engine manufacturers to 

produce new engines that are exempt 

from emission standards and it does not 

provide an exemption from the 

prohibition against tampering with 

certified engines. 

§ 1045.635 What special provisions apply 

for small-volume engine manufacturers? 

This section describes how we apply 

the special provisions in this part for 

small-volume engine manufacturers. 

(a) If you qualify under paragraph (1) 

of the definition of small-volume engine 

manufacturer in § 1045.801, the smallvolume engine manufacturer provisions 

apply as specified in this part. 

(b) If you are a small business (as 

defined by the Small Business 

Administration at 13 CFR 121.201) that 

manufactures marine spark-ignition 

engines, but you do not qualify under 

paragraph (1) of the definition of smallvolume engine manufacturer in 

§ 1045.801, you may ask us to designate 

you to be a small-volume engine 

manufacturer. You may do this whether 

you began manufacturing engines 

before, during, or after 2007. We may set 

other reasonable conditions that are 

consistent with the intent of this section 

and the Act. For example, we may 

refuse to designate a company making 

outboard engines as a small business if 

annual worldwide production of 

outboard engines exceeded 5,000 units 

in any calendar year. 

(c) If you use any of the provisions of 

this part that apply specifically to smallvolume engine manufacturers and we 

find that you exceed the production 

limits or otherwise do not qualify as a 

small-volume engine manufacturer, we 

may consider you to be in violation of 

the requirements that apply for 

companies that are not small-volume 

engine manufacturers for those engines 

produced in excess of the specified 

production limits. 

§ 1045.640 What special provisions apply 

to branded engines? 

The following provisions apply if you 

identify the name and trademark of 

another company instead of your own 

on your emission control information 

label, as provided by § 1045.135(c)(2): 

(a) You must have a contractual 

agreement with the other company that 

obligates that company to take the 

following steps: 

(1) Meet the emission warranty 

requirements that apply under 

§ 1045.120. This may involve a separate 

agreement involving reimbursement of 

warranty-related expenses. 

(2) Report all warranty-related 

information to the certificate holder. 

(b) In your application for 

certification, identify the company 

whose trademark you will use and 

describe the arrangements you have 

made to meet your requirements under 

this section. 

(c) You remain responsible for 

meeting all the requirements of this 

chapter, including warranty and defectreporting provisions. 

§ 1045.645 What special provisions apply 

for converting an engine to use an alternate 

fuel? 

(a) Converting a certified new engine 

to run on a different fuel violates 40 

CFR 1068.101(a)(1) if the modified 

engine is not covered by a certificate of 

conformity. 

(b) Converting a certified engine that 

is not new to run on a different fuel 

violates 40 CFR 1068.101(b)(1) if the 

modified engine is not covered by a 

certificate of conformity. We may 

specify alternate certification provisions 

consistent with the requirements of this 

part. 

§ 1045.650 Do the provisions of 40 CFR 

1068.260 apply for marine engines? 

The provisions of 40 CFR 1068.260 

related to delegated final assembly do 

not apply for marine spark-ignition 

engines certified under this part 1045. 

This means that for engines requiring 

exhaust aftertreatment (such as 

catalysts), the engine manufacturers 

must either install the aftertreatment on 

the engine before introducing it into 

U.S. commerce or ship the 

aftertreatment along with the engine. 

§ 1045.660 How do I certify outboard or 

personal watercraft engines for use in jet 

boats? 

(a) This section describes how to 

certify outboard or personal watercraft 

engines for use in jet boats. To be 

certified under this section, the jet boat 

engines must be identical in all physical 

respects to the corresponding outboard 

or personal watercraft engines, but may 

differ slightly with respect to engine 

calibrations. 

(b) The outboard or personal 

watercraft engines must meet all the 

applicable requirements for outboard or 

personal watercraft engines and must be 

labeled accordingly. Jet boat engines 

certified under this section must meet 

all the applicable requirements for jet 

boat engines. 

(c) The jet boat engines must be in an 

engine family separate from the 

outboard or personal watercraft engines. 


sroberts on PROD1PC70 with PROPOSALS
28284 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(d) Jet boat engine families may use 

emission credits from outboard or 

personal watercraft engine families, as 

described in § 1045.701(d). 

Subpart H—Averaging, Banking, and 

Trading for Certification 

§ 1045.701 General provisions. 

(a) You may average, bank, and trade 

(ABT) emission credits for purposes of 

certification as described in this subpart 

to show compliance with the standards 

of this part. Participation in this 

program is voluntary. 

(b) The definitions of subpart I of this 

part apply to this subpart. The following 

definitions also apply: 

(1) Actual emission credits means 

emission credits you have generated 

that we have verified by reviewing your 

final report. 

(2) Averaging set means a set of 

engines in which emission credits may 

be exchanged only with other engines in 

the same averaging set. 

(3) Broker means any entity that 

facilitates a trade of emission credits 

between a buyer and seller. 

(4) Buyer means the entity that 

receives emission credits as a result of 

a trade. 

(5) Family means engine family for 

exhaust credits or emission family for 

evaporative credits. 

(6) Reserved emission credits means 

emission credits you have generated 

that we have not yet verified by 

reviewing your final report. 

(7) Seller means the entity that 

provides emission credits during a 

trade. 

(8) Standard means the emission 

standard that applies under subpart B of 

this part for engines or fuel-system 

components not participating in the 

ABT program of this subpart. 

(9) Trade means to exchange emission 

credits, either as a buyer or seller. 

(c) You may not average or exchange 

banked or traded exhaust credits with 

evaporative credits, or vice versa. 

Evaporative credits generated by any 

vessels under this part may be used by 

any vessels under this part. Exhaust 

credits may be exchanged only within 

an averaging set. Except as specified in 

paragraph (d) of this section, the 

following criteria define the applicable 

averaging sets: 

(1) Sterndrive/inboard engines. 

(2) Outboard and personal watercraft 

engines. 

(d) Sterndrive/inboard engines 

certified under § 1045.660 for jet boats 

may use HC+NOX exhaust credits 

generated from outboard and personal 

watercraft engines, as long as the creditusing engine is the same model as an 

engine model from an outboard or 

personal watercraft family. The 

HC+NOX FEL cap for such jet boat 

families is the HC+NOX standard for 

outboard and personal watercraft 

engines. U.S.-directed sales from a jet 

boat family using the provisions of this 

paragraph (d) may not be greater than 

the U.S.-directed sales of the same 

engine model for outboard or personal 

watercraft engines in any model year. 

(e) You may not generate evaporative 

credits based on permeation 

measurements from metal fuel tanks or 

portable marine fuel tanks. 

(f) You may not use emission credits 

generated under this subpart to offset 

any emissions that exceed an FEL or 

standard. This applies for all testing, 

including certification testing, in-use 

testing, selective enforcement audits, 

and other production-line testing. 

However, if exhaust emissions from an 

engine exceed an exhaust FEL or 

standard (for example, during a 

selective enforcement audit), you may 

use emission credits to recertify the 

family with a higher FEL that applies 

only to future production. 

(g) Families that use emission credits 

for one or more pollutants may not 

generate positive emission credits for 

another pollutant. 

(h) Emission credits may be used in 

the model year they are generated 

(averaging) and in future model years 

(banking), except that CO emission 

credits for outboard and personal 

watercraft engines may not be banked. 

(i) You may increase or decrease an 

exhaust FEL during the model year by 

amending your application for 

certification under § 1045.225. 

§ 1045.705 How do I generate and 

calculate exhaust emission credits? 

The provisions of this section apply 

for calculating exhaust emission credits 

for HC+NOX or CO. You may generate 

exhaust emission credits only if you are 

a certifying engine manufacturer. 

(a) For each participating family, 

calculate positive or negative emission 

credits relative to the otherwise 

applicable emission standard. Calculate 

positive emission credits for a family 

that has an FEL below the standard. 

Calculate negative emission credits for a 

family that has an FEL above the 

standard. Sum your positive and 

negative credits for the model year 

before rounding. Round calculated 

emission credits to the nearest kilogram 

(kg), using consistent units throughout 

the following equation: 

Emission credits (kg) = (Std—FEL) × 

(Volume) × (Power) × (LIFE) × (LF) 

× (10¥3) 

Where: 

Std = the emission standard, in g/kW-hr. 

FEL = the family emission limit for the 

family, in g/kW-hr. 

Volume = the number of engines eligible to 

participate in the averaging, banking, 

and trading program within the given 

family during the model year, as 

described in paragraph (c) of this section. 

Power = the average value of maximum 

engine power of all the engine 

configurations within a family, 

calculated on a production-weighted 

basis, in kilowatts. 

LIFE = the estimated engine lifetime for 

calculating emission credits, in hours. 

Use 480 hours for high-performance 

engines with maximum engine power at 

or below 485 kW. Use 250 hours for 

high-performance engines with 

maximum engine power above 485 kW. 

For other engines use the useful life for 

the given family. 

LF = load factor. Use 0.207. We may specify 

a different load factor if we approve the 

use of special test procedures for an 

engine family under 40 CFR 

1065.10(c)(2), consistent with good 

engineering judgment. 

(b) [Reserved] 

(c) In your application for 

certification, base your showing of 

compliance on projected production 

volumes for engines whose point of first 

retail sale is in the United States. As 

described in § 1045.730, compliance 

with the requirements of this subpart is 

determined at the end of the model year 

based on actual production volumes for 

engines whose point of first retail sale 

is in the United States. Do not include 

any of the following engines to calculate 

emission credits: 

(1) Engines exempted under subpart G 

of this part or under 40 CFR part 1068. 

(2) Engines intended for export, 

unless there is reason to believe that the 

engines will be later imported into the 

United States after installation in 

equipment. 

(3) Engines that are subject to state 

emission standards for that model year. 

However, this restriction does not apply 

if we determine that the state standards 

and requirements are equivalent to 

those of this part and that engines sold 

in such a state will not generate credits 

under the state program. For example, 

you may not include engines certified 

for California if it has more stringent 

emission standards for these engines or 

those engines generate or use emission 

credits under the California program. 

(4) Engines not subject to the 

requirements of this part, such as those 

excluded under § 1045.5. 

(5) Any other engines, where we 

indicate elsewhere in this part 1045 that 

they are not to be included in the 

calculations of this subpart. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28285 

§ 1045.706 How do I generate and 

calculate evaporative emission credits? 

The provisions of this section apply 

for calculating evaporative emission 

credits. This applies only for fuel tank 

permeation. You may generate credits 

only if you are a certifying vessel 

manufacturer. 

(a) For each participating vessel, 

calculate positive or negative emission 

credits relative to the otherwise 

applicable emission standard. Calculate 

positive emission credits for a family 

that has an FEL below the standard. 

Calculate negative emission credits for a 

family that has an FEL above the 

standard. Sum your positive and 

negative credits for the model year 

before rounding. Round calculated 

emission credits to the nearest kilogram 

(kg), using consistent units throughout 

the following equation: 

Emission credits (kg) = (Std–FEL) × 

(Total Area) × (UL) × (AF) × (365) 

× (10¥3) 

Where: 

Std = the emission standard, in g/m2/day. 

FEL = the family emission limit for the 

family, in g/m2/day, as described in 

paragraph (b) of this section. 

Total Area = The combined internal surface 

area of all fuel tanks in the family, in m2. 

UL = the useful life for the given family, in 

years. 

AF = adjustment factor. Use 1.0 for fuel tank 

testing performed at 28 °C and 0.60 for 

testing performed at 40 °C. 

(b) Determine the FEL for calculating 

credits under paragraph (a) of this 

section using any of the following 

values: 

(1) The FEL to which the fuel tank is 

certified, as long as the FEL is at or 

below 3.0 g/m2/day. 

(2) 10.4 g/m2/day. However, if you use 

this value to establish the FEL for any 

of your fuel tanks, you must use this 

value to establish the FEL for every tank 

not covered by paragraph (b)(1) of this 

section. 

(3) The measured permeation rate of 

the fuel tank or the measured 

permeation rate of a thinner-walled tank 

of the same material. However, if you 

use this approach to establish the FEL 

for any of your fuel tanks, you must 

establish an FEL based on emission 

measurements for every tank not 

covered by paragraph (b)(1) of this 

section. 

(c) In your application for 

certification, base your showing of 

compliance on projected production 

volumes for vessels whose point of first 

retail sale is in the United States. As 

described in § 1045.730, compliance 

with the requirements of this subpart is 

determined at the end of the model year 

based on actual production volumes for 

vessels whose point of first retail sale is 

in the United States. Do not include any 

of the following vessels to calculate 

emission credits: 

(1) Vessels exempted under subpart G 

of this part or under 40 CFR part 1068. 

(2) Vessels intended for export. 

(3) Vessels that are subject to state 

emission standards for that model year. 

However, this restriction does not apply 

if we determine that the state standards 

and requirements are equivalent to 

those of this part and that vessels sold 

in such a state will not generate credits 

under the state program. For example, 

you may not include vessels certified for 

California if it has more stringent 

emission standards for these vessels or 

that vessels generate or use emission 

credits under the California program. 

(4) Vessels not subject to the 

requirements of this part, such as those 

excluded under § 1045.5. 

(5) Any other vessels, where we 

indicate elsewhere in this part 1045 that 

they are not to be included in the 

calculations of this subpart. 

§ 1045.710 How do I average emission 

credits? 

(a) Averaging is the exchange of 

emission credits among your families. 

You may average emission credits only 

within the same averaging set. 

(b) You may certify one or more 

families to an FEL above the emission 

standard, subject to the FEL caps and 

other provisions in subpart B of this 

part, if you show in your application for 

certification that your projected balance 

of all emission-credit transactions in 

that model year is greater than or equal 

to zero. 

(c) If you certify a family to an FEL 

that exceeds the otherwise applicable 

standard, you must obtain enough 

emission credits to offset the family’s 

deficit by the due date for the final 

report required in § 1045.730. The 

emission credits used to address the 

deficit may come from your other 

families that generate emission credits 

in the same model year, from emission 

credits you have banked, or from 

emission credits you obtain through 

trading. 

§ 1045.715 How do I bank emission 

credits? 

(a) Banking is the retention of 

emission credits by the manufacturer 

generating the emission credits for use 

in averaging or trading in future model 

years. You may use banked emission 

credits only within the averaging set in 

which they were generated. 

(b) In your application for 

certification, designate any emission 

credits you intend to bank. These 

emission credits will be considered 

reserved credits. During the model year 

and before the due date for the final 

report, you may redesignate these 

emission credits for averaging or 

trading. 

(c) You may use banked emission 

credits from the previous model year for 

averaging or trading before we verify 

them, but we may revoke these emission 

credits if we are unable to verify them 

after reviewing your reports or auditing 

your records. 

(d) Reserved credits become actual 

emission credits only when we verify 

them in reviewing your final report. 

§ 1045.720 How do I trade emission 

credits? 

(a) Trading is the exchange of 

emission credits between 

manufacturers. You may use traded 

emission credits for averaging, banking, 

or further trading transactions. Traded 

emission credits may be used only 

within the averaging set in which they 

were generated. 

(b) You may trade actual emission 

credits as described in this subpart. You 

may also trade reserved emission 

credits, but we may revoke these 

emission credits based on our review of 

your records or reports or those of the 

company with which you traded 

emission credits. You may trade banked 

credits to any certifying engine or vessel 

manufacturer. 

(c) If a negative emission credit 

balance results from a transaction, both 

the buyer and seller are liable, except in 

cases we deem to involve fraud. See 

§ 1045.255(e) for cases involving fraud. 

We may void the certificates of all 

families participating in a trade that 

results in a manufacturer having a 

negative balance of emission credits. 

See § 1045.745. 

§ 1045.725 What must I include in my 

application for certification? 

(a) You must declare in your 

application for certification your intent 

to use the provisions of this subpart for 

each family that will be certified using 

the ABT program. You must also declare 

the FELs you select for the family for 

each pollutant for which you are using 

the ABT program. Your FELs must 

comply with the specifications of 

subpart B of this part, including the FEL 

caps. FELs must be expressed to the 

same number of decimal places as the 

emission standard. 

(b) Include the following in your 

application for certification: 

(1) A statement that, to the best of 

your belief, you will not have a negative 

balance of emission credits for any 

averaging set when all emission credits 

are calculated at the end of the year. 


sroberts on PROD1PC70 with PROPOSALS
28286 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(2) Detailed calculations of projected 

emission credits (positive or negative) 

based on projected production volumes. 

If your family will generate positive 

emission credits, state specifically 

where the emission credits will be 

applied (for example, to which family 

they will be applied in averaging, 

whether they will be traded, or whether 

they will be reserved for banking). If you 

have projected negative emission credits 

for a family, state the source of positive 

emission credits to offset the negative 

emission credits. Describe whether the 

emission credits are actual or reserved 

and whether they will come from 

averaging, banking, trading, or a 

combination of these. Identify from 

which of your families or from which 

manufacturer the emission credits will 

come. 

§ 1045.730 What ABT reports must I send 

to EPA? 

(a) If any of your families are certified 

using the ABT provisions of this 

subpart, you must send an end-of-year 

report within 90 days after the end of 

the model year and a final report within 

270 days after the end of the model year. 

We may waive the requirement to send 

the end-of year report, as long as you 

send the final report on time. 

(b) Your end-of-year and final reports 

must include the following information 

for each family participating in the ABT 

program: 

(1) Family designation. 

(2) The emission standards that would 

otherwise apply to the family. 

(3) The FEL for each pollutant. If you 

changed an FEL during the model year, 

identify each FEL you used and 

calculate the positive or negative 

emission credits under each FEL. Also, 

describe how the FEL can be identified 

for each engine you produced. For 

example, you might keep a list of engine 

or vessel identification numbers that 

correspond with certain FEL values. 

(4) The projected and actual 

production volumes for the model year 

with a point of retail sale in the United 

States, as described in §§ 1045.705(c) 

and 1045.706(c). For fuel tanks, state the 

production volume in terms of total 

surface area. If you changed an engine’s 

FEL during the model year, identify the 

actual production volume associated 

with each FEL. 

(5) Maximum engine power for each 

engine configuration, and the 

production-weighted average engine 

power for the family. 

(6) Useful life. 

(7) Calculated positive or negative 

emission credits for the whole family. 

Identify any emission credits that you 

traded, as described in paragraph (d)(1) 

of this section. 

(c) Your end-of-year and final reports 

must include the following additional 

information: 

(1) Show that your net balance of 

emission credits from all your 

participating families in each averaging 

set in the applicable model year is not 

negative. 

(2) State whether you will reserve any 

emission credits for banking. 

(3) State that the report’s contents are 

accurate. 

(d) If you trade emission credits, you 

must send us a report within 90 days 

after the transaction, as follows: 

(1) As the seller, you must include the 

following information in your report: 

(i) The corporate names of the buyer 

and any brokers. 

(ii) A copy of any contracts related to 

the trade. 

(iii) The families that generated 

emission credits for the trade, including 

the number of emission credits from 

each family. 

(2) As the buyer, you must include the 

following information in your report: 

(i) The corporate names of the seller 

and any brokers. 

(ii) A copy of any contracts related to 

the trade. 

(iii) How you intend to use the 

emission credits, including the number 

of emission credits you intend to apply 

to each family (if known). 

(e) Send your reports electronically to 

the Designated Compliance Officer 

using an approved information format. 

If you want to use a different format, 

send us a written request with 

justification for a waiver. 

(f) Correct errors in your end-of-year 

report or final report as follows: 

(1) You may correct any errors in your 

end-of-year report when you prepare the 

final report, as long as you send us the 

final report by the time it is due. 

(2) If you or we determine within 270 

days after the end of the model year that 

errors mistakenly decrease your balance 

of emission credits, you may correct the 

errors and recalculate the balance of 

emission credits. You may not make 

these corrections for errors that are 

determined more than 270 days after the 

end of the model year. If you report a 

negative balance of emission credits, we 

may disallow corrections under this 

paragraph (f)(2). 

(3) If you or we determine anytime 

that errors mistakenly increase your 

balance of emission credits, you must 

correct the errors and recalculate the 

balance of emission credits. 

§ 1045.735 What records must I keep? 

(a) You must organize and maintain 

your records as described in this 

section. We may review your records at 

any time. 

(b) Keep the records required by this 

section for at least eight years after the 

due date for the end-of-year report. You 

may not use emission credits for any 

engines or vessel if you do not keep all 

the records required under this section. 

You must therefore keep these records 

to continue to bank valid credits. Store 

these records in any format and on any 

media, as long as you can promptly 

send us organized, written records in 

English if we ask for them. You must 

keep these records readily available. We 

may review them at any time. 

(c) Keep a copy of the reports we 

require in §§ 1045.725 and 1045.730. 

(d) Keep the following additional 

records for each engine or vessel you 

produce that generates or uses emission 

credits under the ABT program: 

(1) Family designation. 

(2) Engine or vessel identification 

number. 

(3) FEL and useful life. 

(4) Maximum engine power or 

internal surface area of the fuel tank. 

(5) Build date and assembly plant. 

(e) We may require you to keep 

additional records or to send us relevant 

information not required by this section. 

§ 1045.745 What can happen if I do not 

comply with the provisions of this subpart? 

(a) For each family participating in 

the ABT program, the certificate of 

conformity is conditional upon full 

compliance with the provisions of this 

subpart during and after the model year. 

You are responsible to establish to our 

satisfaction that you fully comply with 

applicable requirements. We may void 

the certificate of conformity for a family 

if you fail to comply with any 

provisions of this subpart. 

(b) You may certify your family to an 

FEL above an emission standard based 

on a projection that you will have 

enough emission credits to offset the 

deficit for the family. However, we may 

void the certificate of conformity if you 

cannot show in your final report that 

you have enough actual emission credits 

to offset a deficit for any pollutant in a 

family. 

(c) We may void the certificate of 

conformity for a family if you fail to 

keep records, send reports, or give us 

information we request. 

(d) You may ask for a hearing if we 

void your certificate under this section 

(see § 1045.820). 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28287 

Subpart I—Definitions and Other 

Reference Information 

§ 1045.801 What definitions apply to this 

part? 

The following definitions apply to 

this part. The definitions apply to all 

subparts unless we note otherwise. All 

undefined terms have the meaning the 

Act gives to them. The definitions 

follow: 

Act means the Clean Air Act, as 

amended, 42 U.S.C. 7401—7671q. 

Adjustable parameter means any 

device, system, or element of design that 

someone can adjust (including those 

which are difficult to access) and that, 

if adjusted, may affect emissions or 

engine performance during emission 

testing or normal in-use operation. This 

includes, but is not limited to, 

parameters related to injection timing 

and fueling rate. You may ask us to 

exclude a parameter that is difficult to 

access if it cannot be adjusted to affect 

emissions without significantly 

degrading engine performance, or if you 

otherwise show us that it will not be 

adjusted in a way that affects emissions 

during in-use operation. 

Aftertreatment means relating to a 

catalytic converter, particulate filter, or 

any other system, component, or 

technology mounted downstream of the 

exhaust valve (or exhaust port) whose 

design function is to decrease emissions 

in the engine exhaust before it is 

exhausted to the environment. Exhaustgas recirculation (EGR) and 

turbochargers are not aftertreatment. 

Amphibious vehicle means a vehicle 

with wheels or tracks that is designed 

primarily for operation on land and 

secondarily for operation in water. 

Applicable emission standard or 

applicable standard means an emission 

standard to which an engine is subject; 

or, where an engine has been or is being 

certified another standard or FEL, 

applicable emission standards means 

the FEL and other standards to which 

the engine has been or is being certified. 

This definition does not apply to 

subpart H of this part. 

Auxiliary emission control device 

means any element of design that senses 

temperature, motive speed, engine RPM, 

transmission gear, or any other 

parameter for the purpose of activating, 

modulating, delaying, or deactivating 

the operation of any part of the emission 

control system. 

Brake power means the usable power 

output of the engine, not including 

power required to fuel, lubricate, or heat 

the engine, circulate coolant to the 

engine, or to operate aftertreatment 

devices. 

Calibration means the set of 

specifications and tolerances specific to 

a particular design, version, or 

application of a component or assembly 

capable of functionally describing its 

operation over its working range. 

Certification means relating to the 

process of obtaining a certificate of 

conformity for an engine family that 

complies with the emission standards 

and requirements in this part. 

Certified emission level means the 

highest deteriorated emission level in an 

engine family for a given pollutant from 

either transient or steady-state testing. 

Crankcase emissions means airborne 

substances emitted to the atmosphere 

from any part of the engine crankcase’s 

ventilation or lubrication systems. The 

crankcase is the housing for the 

crankshaft and other related internal 

parts. 

Critical emission-related component 

means any of the following components: 

(1) Electronic control units, 

aftertreatment devices, fuel-metering 

components, EGR-system components, 

crankcase-ventilation valves, all 

components related to charge-air 

compression and cooling, and all 

sensors and actuators associated with 

any of these components. 

(2) Any other component whose 

primary purpose is to reduce emissions. 

Designated Compliance Officer means 

the Manager, Heavy-Duty and Nonroad 

Engine Group (6405–J), U.S. 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460. 

Designated Enforcement Officer 

means the Director, Air Enforcement 

Division (2242A), U.S. Environmental 

Protection Agency, 1200 Pennsylvania 

Ave., NW.,Washington, DC 20460. 

Deteriorated emission level means the 

emission level that results from 

applying the appropriate deterioration 

factor to the official emission result of 

the emission-data engine. 

Deterioration factor means the 

relationship between emissions at the 

end of useful life and emissions at the 

low-hour test point, expressed in one of 

the following ways: 

(1) For multiplicative deterioration 

factors, the ratio of emissions at the end 

of useful life to emissions at the lowhour test point. 

(2) For additive deterioration factors, 

the difference between emissions at the 

end of useful life and emissions at the 

low-hour test point. 

Discrete-mode means relating to the 

discrete-mode type of steady-state test 

described in § 1045.505. 

Emission control system means any 

device, system, or element of design that 

controls or reduces the emissions of 

regulated pollutants from an engine. 

Emission-data engine means an 

engine that is tested for certification. 

This includes engines tested to establish 

deterioration factors. 

Emission-related maintenance means 

maintenance that substantially affects 

emissions or is likely to substantially 

affect emission deterioration. 

Engine has the meaning given in 40 

CFR 1068.30. This includes complete 

and partially complete engines. 

Engine configuration means a unique 

combination of engine hardware and 

calibration within an engine family. 

Engines within a single engine 

configuration differ only with respect to 

normal production variability. 

Engine family has the meaning given 

in § 1045.230. 

Engine manufacturer means the 

manufacturer of the engine. See the 

definition of ‘‘manufacturer’’ in this 

section. 

Evaporative means relating to fuel 

emissions controlled by 40 CFR part 

1060. This generally includes emissions 

that result from permeation of fuel 

through the fuel-system materials, from 

ventilation of the fuel system. 

Excluded means relating to an engine 

that either: 

(1) Has been determined not to be a 

nonroad engine, as specified in 40 CFR 

1068.30; or 

(2) Is a nonroad engine that, according 

to § 1045.5, is not subject to this part 

1045. 

Exempted has the meaning given in 

40 CFR 1068.30. 

Exhaust-gas recirculation means a 

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 before 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 before or during combustion is not 

considered exhaust-gas recirculation for 

the purposes of this part. 

Family emission limit (FEL) means an 

emission level declared by the 

manufacturer to serve in place of an 

otherwise applicable emission standard 

under the ABT program in subpart H of 

this part. The family emission limit 

must be expressed to the same number 

of decimal places as the emission 

standard it replaces. The family 

emission limit serves as the emission 

standard for the engine family with 

respect to all required testing. 

Fuel line means all hose, tubing, and 

primer bulbs containing or exposed to 

liquid fuel, including hose or tubing 


sroberts on PROD1PC70 with PROPOSALS
28288 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

that delivers fuel to or from the engine. 

This includes hose or tubing for the 

filler neck if any portion of the fillerneck material continues to be exposed 

to liquid fuel after a refueling event in 

which an operator fills the fuel tank as 

full as possible. 

Fuel system means all components 

involved in transporting, metering, and 

mixing the fuel from the fuel tank to the 

combustion chamber(s), including the 

fuel tank, fuel tank cap, fuel pump, fuel 

filters, fuel lines, carburetor or fuelinjection components, and all fuelsystem vents. 

Fuel type means a general category of 

fuels such as gasoline or natural gas. 

There can be multiple grades within a 

single fuel type, such as lowtemperature or all-season gasoline. 

Good engineering judgment has the 

meaning given in 40 CFR 1068.30. See 

40 CFR 1068.5 for the administrative 

process we use to evaluate good 

engineering judgment. 

High-performance means relating to a 

sterndrive/inboard engine with 

maximum engine power at or above 373 

kW that has design features to enhance 

power output such that the expected 

operating time until rebuild is 

substantially shorter than 480 hours. 

Hydrocarbon (HC) means the 

hydrocarbon group on which the 

emission standards are based for each 

fuel type, as described in subpart B of 

this part. 

Identification number means a unique 

specification (for example, a model 

number/serial number combination) 

that allows someone to distinguish a 

particular engine from other similar 

engines. 

Jet boat means a vessel that uses an 

installed internal combustion engine 

powering a water jet pump as its 

primary source of propulsion and is 

designed with open area for carrying 

passengers. 

Low-hour means relating to an engine 

that has stabilized emissions and 

represents the undeteriorated emission 

level. This would generally involve less 

than 30 hours of operation. 

Manufacture means the physical and 

engineering process of designing, 

constructing, and assembling an engine 

or vessel. 

Manufacturer has the meaning given 

in section 216(1) of the Act. In general, 

this term includes any person who 

manufactures an engine or vessel for 

sale in the United States or otherwise 

introduces a new marine engine into 

U.S. commerce. This includes importers 

who import engines or vessels for resale, 

but not dealers. All manufacturing 

entities under the control of the same 

person are considered to be a single 

manufacturer. 

Marine engine means a nonroad 

engine that is installed or intended to be 

installed on a vessel. This includes a 

portable auxiliary marine engine only if 

its fueling, cooling, or exhaust system is 

an integral part of the vessel. There are 

two kinds of marine engines: 

(1) Propulsion marine engine means a 

marine engine that moves a vessel 

through the water or directs the vessel’s 

movement. 

(2) Auxiliary marine engine means a 

marine engine not used for propulsion. 

Marine vessel has the meaning given 

in 1 U.S.C. 3, except that it does not 

include amphibious vehicles. The 

definition in 1 U.S.C. 3 very broadly 

includes every craft capable of being 

used as a means of transportation on 

water. 

Maximum engine power has the 

meaning given in § 1045.140. 

Maximum test speed has the meaning 

given in 40 CFR 1065.1001. 

Model year means one of the 

following things: 

(1) For freshly manufactured vessels 

and engines (see definition of ‘‘new 

propulsion marine engine,’’ paragraph 

(1)), model year means one of the 

following: 

(i) Calendar year. 

(ii) Your annual new model 

production period if it is different than 

the calendar year. This must include 

January 1 of the calendar year for which 

the model year is named. It may not 

begin before January 2 of the previous 

calendar year and it must end by 

December 31 of the named calendar 

year. For seasonal production periods 

not including January 1, model year 

means the calendar year in which the 

production occurs, unless you choose to 

certify the applicable engine family with 

the following model year. For example, 

if your production period is June 1, 

2010 through November 30, 2010, your 

model year would be 2010 unless you 

choose to certify the engine family for 

model year 2011. 

(2) For an engine that is converted to 

a propulsion marine engine after being 

placed into service as a motor-vehicle 

engine or a stationary engine, model 

year means the calendar year in which 

the engine was originally produced (see 

definition of ‘‘new propulsion marine 

engine,’’ paragraph (2)). 

(3) For an engine originally produced 

for use as a nonroad engine but not as 

a propulsion marine engine that is later 

converted to operate as a propulsion 

marine engine, model year means the 

calendar year in which the engine was 

originally produced (see definition of 

‘‘new propulsion marine engine,’’

paragraph (3)). 

(4) For engines that are not freshly 

manufactured but are installed in new 

vessels, model year means the calendar 

year in which the engine is installed in 

the new vessel (see definition of ‘‘new 

propulsion marine engine,’’ paragraph 

(4)). 

(5) For imported engines: 

(i) For imported engines described in 

paragraph (5)(i) of the definition of 

‘‘new propulsion marine engine,’’ model 

year has the meaning given in 

paragraphs (1) through (4) of this 

definition. 

(ii) For imported engines described in 

paragraph (5)(ii) of the definition of 

‘‘new propulsion marine engine,’’ model 

year means the calendar year in which 

the engine is modified. 

(iii) For imported engines described 

in paragraph (5)(iii) of the definition of 

‘‘new nonroad engine,’’ model year 

means the calendar year in which the 

importation occurs. 

New vessel means either of the 

following things: 

(1) A vessel for which the ultimate 

purchaser has never received the 

equitable or legal title. The product is 

no longer new when the ultimate 

purchaser receives this title or it is 

placed into service, whichever comes 

first. 

(2) An imported vessel that has 

already been placed into service, where 

it has an engine not covered by a 

certificate of conformity issued under 

this part at the time of importation that 

was manufactured after the 

requirements of this part start to apply 

(see § 1045.1). 

New portable fuel tanks and fuel lines 

means portable fuel tanks and fuel lines 

that have not yet been placed into 

service, or which are otherwise offered 

for sales as new products. 

New propulsion marine engine or new 

engine means any of the following 

things: 

(1) A freshly manufactured 

propulsion marine engine for which the 

ultimate purchaser has never received 

the equitable or legal title. This kind of 

engine might commonly be thought of 

as ‘‘brand new.’’ In the case of this 

paragraph (1), the engine is new from 

the time it is produced until the 

ultimate purchaser receives the title or 

the product is placed into service, 

whichever comes first. 

(2) An engine intended to be used as 

a propulsion marine engine that was 

originally manufactured as a motorvehicle engine, a nonroad engine that is 

not a propulsion marine engine, or a 

stationary engine. In this case, the 

engine is no longer a motor-vehicle, 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28289 

nonpropulsion, or stationary engine and 

becomes a ‘‘new propulsion marine 

engine’’. The engine is no longer new 

when it is placed into marine service. 

(3) A propulsion marine engine that 

has been previously placed into service 

in an application we exclude under 

§ 1045.5, where that engine is installed 

in a vessel that is covered by this part 

1045. The engine is no longer new when 

it is placed into marine service covered 

by this part 1045. For example, this 

would apply to a auxiliary marine 

engine that is becomes a propulsion 

marine engine. 

(4) An engine not covered by 

paragraphs (1) through (3) of this 

definition that is intended to be 

installed in a new vessel. The engine is 

no longer new when the ultimate 

purchaser receives a title for the vessel 

or the product is placed into service, 

whichever comes first. This generally 

includes installation of used engines in 

new vessels. 

(5) An imported marine engine, 

subject to the following provisions: 

(i) An imported marine engine 

covered by a certificate of conformity 

issued under this part that meets the 

criteria of one or more of paragraphs (1) 

through (4) of this definition, where the 

original engine manufacturer holds the 

certificate, is new as defined by those 

applicable paragraphs. 

(ii) An imported marine engine 

covered by a certificate of conformity 

issued under this part, where someone 

other than the original engine 

manufacturer holds the certificate (such 

as when the engine is modified after its 

initial assembly), becomes new when it 

is imported. It is no longer new when 

the ultimate purchaser receives a title 

for the engine or it is placed into 

service, whichever comes first. 

(iii) An imported propulsion marine 

engine that is not covered by a 

certificate of conformity issued under 

this part at the time of importation is 

new, but only if it was produced on or 

after the dates shown in the following 

table. This addresses uncertified engines 

and vessels initially placed into service 

that someone seeks to import into the 

United States. Importation of this kind 

of engine (or vessel containing such an 

engine) is generally prohibited by 40 

CFR part 1068. 

APPLICABILITY OF EMISSION STANDARDS FOR PROPULSION MARINE ENGINES

Engine type 

Initial model 

year of emission 

standards 

Outboard ......................... 1998 

APPLICABILITY OF EMISSION STANDARDS FOR PROPULSION MARINE ENGINES—Continued 

Engine type 

Initial model 

year of emission 

standards 

Personal watercraft ......... 1999 

Sterndrive/inboard .......... 2009 

Noncompliant engine means an 

engine that was originally covered by a 

certificate of conformity but is not in the 

certified configuration or otherwise does 

not comply with the conditions of the 

certificate. 

Nonconforming engine means an 

engine not covered by a certificate of 

conformity that would otherwise be 

subject to emission standards. 

Nonmethane hydrocarbon has the 

meaning given in 40 CFR 1065.1001. 

This generally means the difference 

between the emitted mass of total 

hydrocarbons and the emitted mass of 

methane. 

Nonroad means relating to nonroad 

engines, or vessels, or equipment that 

include nonroad engines. 

Nonroad engine has the meaning 

given in 40 CFR 1068.30. In general, this 

means all internal-combustion engines 

except motor vehicle engines, stationary 

engines, engines used solely for 

competition, or engines used in aircraft. 

Official emission result means the 

measured emission rate for an emissiondata engine on a given duty cycle before 

the application of any deterioration 

factor. 

Outboard engine means an assembly 

of a spark-ignition engine and drive unit 

used to propel a vessel from a properly 

mounted position external to the hull of 

the vessel. An outboard drive unit is 

partially submerged during operation 

and can be tilted out of the water when 

not in use. 

Owners manual means a document or 

collection of documents prepared by the 

engine manufacturer for the owner or 

operator to describe appropriate engine 

maintenance, applicable warranties, and 

any other information related to 

operating or keeping the engine. The 

owners manual is typically provided to 

the ultimate purchaser at the time of 

sale. 

Oxides of nitrogen has the meaning 

given in 40 CFR part 1065.1001. 

Personal watercraft means a vessel 

less than 4.0 meters (13 feet) in length 

that uses an installed internal 

combustion engine powering a water jet 

pump as its primary source of 

propulsion and is designed with no 

open load carrying area that would 

retain water. The vessel is designed to 

be operated by a person or persons 

positioned on, rather than within the 

confines of the hull. A vessel using an 

outboard engine as its primary source of 

propulsion is not a personal watercraft. 

Personal watercraft engine means a 

spark-ignition engine used to propel a 

personal watercraft. 

Placed into service means put into 

initial use for its intended purpose. 

Point of first retail sale means the 

location at which the initial retail sale 

occurs. This generally means an 

equipment dealership, but may also 

include an engine seller or distributor in 

cases where loose engines are sold to 

the general public for uses such as 

replacement engines. 

Portable marine fuel tank has the 

meaning given in 40 CFR 1060.801. 

Ramped-modal means relating to the 

ramped-modal type of steady-state test 

described in § 1045.505. 

Revoke has the meaning given in 40 

CFR 1068.30. In general this means to 

terminate the certificate or an 

exemption for an engine family. 

Round has the meaning given in 40 

CFR 1065.1001. 

Scheduled maintenance means 

adjusting, repairing, removing, 

disassembling, cleaning, or replacing 

components or systems periodically to 

keep a part or system from failing, 

malfunctioning, or wearing prematurely. 

It also may mean actions you expect are 

necessary to correct an overt indication 

of failure or malfunction for which 

periodic maintenance is not 

appropriate. 

Small-volume engine manufacturer 

means one of the following: 

(1) An engine manufacturer that had 

U.S.-directed production of sterndrive/ 

inboard engines in 2007, with annual 

worldwide production of no more than 

5,000 sterndrive/inboard engines in any 

calendar year. For manufacturers owned 

by a parent company, this production 

limit applies to the production of the 

parent company and all its subsidiaries. 

(2) An engine manufacturer that we 

designate to be a small-volume engine 

manufacturer under § 1045.635. 

Spark-ignition means relating to a 

gasoline-fueled engine or any other type 

of engine with a spark plug (or other 

sparking device) and with operating 

characteristics significantly similar to 

the theoretical Otto combustion cycle. 

Spark-ignition engines usually use a 

throttle to regulate intake air flow to 

control power during normal operation. 

Steady-state means relating to 

emission tests in which engine speed 

and load are held at a finite set of 

essentially constant values. Steady-state 

tests are either discrete-mode tests or 

ramped-modal tests. 


sroberts on PROD1PC70 with PROPOSALS
28290 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Sterndrive/inboard engine means a 

spark-ignition engine that is used to 

propel a vessel, but is not an outboard 

engine or a personal watercraft engine. 

This includes engines on propellerdriven vessels, jet boats, air boats, and 

hovercraft. 

Stoichiometric means relating to the 

particular ratio of air and fuel such that 

if the fuel were fully oxidized, there 

would be no remaining fuel or oxygen. 

For example, stoichiometric combustion 

in a gasoline-fueled engine typically 

occurs at an air-to-fuel mass ratio of 

about 14.7:1. 

Suspend has the meaning given in 40 

CFR 1068.30. In general this means to 

temporarily discontinue the certificate 

or an exemption for an engine family. 

Test engine means an engine in a test 

sample. 

Test sample means the collection of 

engines selected from the population of 

an engine family for emission testing. 

This may include testing for 

certification, production-line testing, or 

in-use testing. 

Total hydrocarbon has the meaning 

given in 40 CFR 1065.1001. This 

generally means the combined mass of 

organic compounds measured by the 

specified procedure for measuring total 

hydrocarbon, expressed as a 

hydrocarbon with a hydrogen-to-carbon 

mass ratio of 1.85:1. 

Total hydrocarbon equivalent has the 

meaning given in 40 CFR 1065.1001. 

This generally means the sum of the 

carbon mass contributions of nonoxygenated hydrocarbons, alcohols and 

aldehydes, or other organic compounds 

that are measured separately as 

contained in a gas sample, expressed as 

exhaust hydrocarbon from petroleumfueled locomotives. The hydrogen-tocarbon ratio of the equivalent 

hydrocarbon is 1.85:1. 

Ultimate purchaser means, with 

respect to any new vessel or new marine 

propulsion engine, the first person who 

in good faith purchases such new vessel 

or new engine for purposes other than 

resale. 

United States has the meaning given 

in 40 CFR 1068.30. 

Upcoming model year means for an 

engine family the model year after the 

one currently in production. 

U.S.-directed production volume 

means the number of engine units, 

subject to the requirements of this part, 

produced by a manufacturer for which 

the manufacturer has a reasonable 

assurance that sale was or will be made 

to ultimate purchasers in the United 

States. 

Useful life means the period during 

which a vehicle is required to comply 

with all applicable emission standards, 

specified as a given number of hours of 

operation or calendar years, whichever 

comes first. See §§ 1045.103(e), 

1045.105(e), and 1045.107. If an engine 

has no hour meter, the specified number 

of hours does not limit the period 

during which an in-use engine is 

required to comply with emission 

standards, unless the degree of service 

accumulation can be verified separately. 

Variable-speed engine means an 

engine that is not a constant-speed 

engine. 

Vessel means marine vessel. 

Void has the meaning given in 40 CFR 

1068.30. In general this means to 

invalidate a certificate or an exemption 

both retroactively and prospectively. 

Volatile liquid fuel means any fuel 

other than diesel or biodiesel that is a 

liquid at atmospheric pressure and has 

a Reid Vapor Pressure higher than 2.0 

pounds per square inch. 

We (us, our) means the Administrator 

of the Environmental Protection Agency 

and any authorized representatives. 

Wide-open throttle means maximum 

throttle opening. Unless this is specified 

at a given speed, it refers to maximum 

throttle opening at maximum speed. For 

electronically controlled or other 

engines with multiple possible fueling 

rates, wide-open throttle also means the 

maximum fueling rate at maximum 

throttle opening under test conditions. 

§ 1045.805 What symbols, acronyms, and 

abbreviations does this part use? 

The following symbols, acronyms, 

and abbreviations apply to this part: 

ABT Averaging, banking, and trading. 

AECD Auxiliary emission control device. 

CFR Code of Federal Regulations. 

CO carbon monoxide. 

CO2 carbon dioxide. 

EPA Environmental Protection Agency. 

FEL Family Emission Limit. 

g gram. 

HC hydrocarbon. 

hr hour. 

kPa kilopascals. 

kW kilowatt. 

m meter. 

NARA National Archives and Records 

Administration. 

NMHC nonmethane hydrocarbons. 

NOX oxides of nitrogen (NO and NO2). 

NTE not-to-exceed. 

psig pounds per square inch of gauge 

pressure. 

RPM revolutions per minute. 

SAE Society of Automotive Engineers. 

THC total hydrocarbon. 

THCE total hydrocarbon equivalent. 

U.S.C. United States Code. 

§ 1045.810 What materials does this part 

reference? 

Documents listed in this section have 

been incorporated by reference into this 

part. The Director of the Federal 

Register approved the incorporation by 

reference as prescribed in 5 U.S.C. 

552(a) and 1 CFR part 51. Anyone may 

inspect copies at the U.S. EPA, Air and 

Radiation Docket and Information 

Center, 1301 Constitution Ave., NW., 

Room B102, EPA West Building, 

Washington, DC 20460 or at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to: http://www.archives.gov/ 

federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

(a) SAE material. Table 1 of this 

section lists material from the Society of 

Automotive Engineers that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

Society of Automotive Engineers, 400 

Commonwealth Drive, Warrendale, PA 

15096 or www.sae.org. Table 1 follows: 

TABLE 1 TO § 1045.810.—SAE MATERIALS

Document number and name Part 1045 

reference 

SAE J1930, Electrical/Electronic Systems Diagnostic Terms, Definitions, Abbreviations, and Acronyms, revised May 1998 ... 1045.135 

(b) ISO material. Table 2 of this 

section lists material from the 

International Organization for 

Standardization that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the section of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

International Organization for 

Standardization, Case Postale 56, CH–


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28291 

1211 Geneva 20, Switzerland or 

www.iso.org. Table 2 follows: 

TABLE 2 TO § 1045.810.—ISO MATERIALS

Document number and name Part 1045 

reference 

ISO 9141–2 Road vehicles—Diagnostic systems—Part 2: CARB requirements for interchange of digital information, February 1994.1045.110 

ISO 14230–4 Road vehicles—Diagnostic systems—Keyword Protocol 2000—Part 4: Requirements for emission-related systems, June 2000.1045.110 

§ 1045.815 What provisions apply to 

confidential information? 

(a) Clearly show what you consider 

confidential by marking, circling, 

bracketing, stamping, or some other 

method. 

(b) We will store your confidential 

information as described in 40 CFR part 

2. Also, we will disclose it only as 

specified in 40 CFR part 2. This applies 

both to any information you send us and 

to any information we collect from 

inspections, audits, or other site visits. 

(c) If you send us a second copy 

without the confidential information, 

we will assume it contains nothing 

confidential whenever we need to 

release information from it. 

(d) If you send us information without 

claiming it is confidential, we may make 

it available to the public without further 

notice to you, as described in 40 CFR 

2.204. 

§ 1045.820 How do I request a hearing? 

(a) You may request a hearing under 

certain circumstances, as described 

elsewhere in this part. To do this, you 

must file a written request, including a 

description of your objection and any 

supporting data, within 30 days after we 

make a decision. 

(b) For a hearing you request under 

the provisions of this part, we will 

approve your request if we find that 

your request raises a substantial factual 

issue. 

(c) If we agree to hold a hearing, we 

will use the procedures specified in 40 

CFR part 1068, subpart G. 

§ 1045.825 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for engines and vessels regulated under 

this part: 

(a) We specify the following 

requirements related to engine 

certification in this part 1045: 

(1) In § 1045.20 we require vessel 

manufacturers to label their vessels if 

they are relying on component 

certification. 

(2) In § 1045.135 we require engine 

manufacturers to keep certain records 

related to duplicate labels sent to vessel 

manufacturers. 

(3) In § 1045.145 we include various 

reporting and recordkeeping 

requirements related to interim 

provisions. 

(4) In subpart C of this part we 

identify a wide range of information 

required to certify engines. 

(5) In §§ 1045.345 and 1045.350 we 

specify certain records related to 

production-line testing. 

(6) In §§ 1045.420 and 1045.425 we 

specify certain records related to in-use 

testing. 

(7) In subpart G of this part we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various special compliance 

provisions. 

(8) In §§ 1045.725, 1045.730, and 

1045.735 we specify certain records 

related to averaging, banking, and 

trading. 

(b) We specify the following 

requirements related to vessel or 

component certification in 40 CFR part 

1060: 

(1) In 40 CFR 1060.20 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR part 1060, subpart C, we 

identify a wide range of information 

required to certify products. 

(3) In 40 CFR 1060.301 we require 

manufacturers to make engines or 

vessels available for our testing if we 

make such a request. 

(4) In 40 CFR 1060.505 we specify 

information needs for establishing 

various changes to published test 

procedures. 

(c) We specify the following 

requirements related to testing in 40 

CFR part 1065: 

(1) In 40 CFR 1065.2 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR 1065.10 and 1065.12 we 

specify information needs for 

establishing various changes to 

published test procedures. 

(3) In 40 CFR 1065.25 we establish 

basic guidelines for storing test 

information. 

(4) In 40 CFR 1065.695 we identify 

data that may be appropriate for 

collecting during testing of in-use 

engines using portable analyzers. 

(d) We specify the following 

requirements related to the general 

compliance provisions in 40 CFR part 

1068: 

(1) In 40 CFR 1068.5 we establish a 

process for evaluating good engineering 

judgment related to testing and 

certification. 

(2) In 40 CFR 1068.25 we describe 

general provisions related to sending 

and keeping information. 

(3) In 40 CFR 1068.27 we require 

manufacturers to make engines available 

for our testing or inspection if we make 

such a request. 

(4) In 40 CFR 1068.105 we require 

vessel manufacturers to keep certain 

records related to duplicate labels from 

engine manufacturers. 

(5) In 40 CFR 1068.120 we specify 

recordkeeping related to rebuilding 

engines. 

(6) In 40 CFR part 1068, subpart C, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various exemptions. 

(7) In 40 CFR part 1068, subpart D, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to importing engines. 

(8) In 40 CFR 1068.450 and 1068.455 

we specify certain records related to 

testing production-line engines in a 

selective enforcement audit. 

(9) In 40 CFR 1068.501 we specify 

certain records related to investigating 

and reporting emission-related defects. 

(10) In 40 CFR 1068.525 and 1068.530 

we specify certain records related to 

recalling nonconforming engines. 


sroberts on PROD1PC70 with PROPOSALS
28292 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Appendix I to Part 1045—Summary of 

Previous Emission Standards 

(a) The following standard applies to 

marine spark-ignition engines produced 

before the model years specified in § 1045.1, 

at the end of the phase-in period specified in 

40 CFR 91.104: 

(1) For engines below 4.3 kW, the HC+NOX

standard is 81.00 g/kW-hr. 

(2) For engines at or above 4.3 kW, the 

following HC+NOX standard applies: 

STD = 6.00 + 0.250 · (151 + 557/P0.9) 

Where: 

STD = The HC+NOX emission standard, in g/ 

kW-hr. 

P = The average power of an engine family, 

in kW. 

(b) See 40 CFR 91.104 for standards that 

applied during the phase-in period. 

Appendix II to Part 1045—Duty Cycles 

for Propulsion Marine Engines 

(a) The following duty cycle applies for 

discrete-mode testing: 

E4 mode no. Engine speed 1 Torque 

(percent) 2

Weighting factors 

1 ................................................................................... Maximum Test Speed ................................................. 100 0.06 

2 ................................................................................... 80 % ............................................................................ 71 .6 0.14 

3 ................................................................................... 60 % ............................................................................ 46 .5 0.15 

4 ................................................................................... 40 % ............................................................................ 25 .3 0.25 

5 ................................................................................... Idle ............................................................................... 0 0.40 

1Speed terms are defined in 40 CFR part 1065. Percent speed values are relative to maximum test speed. 

2Except as noted in § 1045.505, the percent torque is relative to maximum torque at maximum test speed. 

(b) The following duty cycle applies for 

ramped-modal testing: 

RMC mode Time in mode 

(seconds) 

Engine 

speed 1, 2 Torque (percent) 2, 3

1a Steady-state ....................................... 225 Idle ........................................................... 0. 

1b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

2a Steady-state ....................................... 63 Maximum Test Speed ............................. 100. 

2b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

*3a Steady-state ...................................... 271 40% ......................................................... 25.3. 

3b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

4a Steady-state ....................................... 151 80% ......................................................... 71.6. 

4b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

5a Steady-state ....................................... 161 60% ......................................................... 46.5. 

5b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

6 Steady-state ......................................... 229 Idle ........................................................... 0. 

1Speed terms are defined in 40 CFR part 1065. Percent values are relative to maximum test speed. 

2Advance from one mode to the next within a 20-second transition phase. During the transition phase, command linear progressions of speed 

and torque from the speed setting and torque setting of the current mode to the speed setting and torque setting of the next mode. 3The percent torque is relative to maximum torque at maximum test speed. 

PART 1048—CONTROL OF EMISSIONS 

FROM NEW, LARGE NONROAD 

SPARK-IGNITION ENGINES 

47. The authority citation for part 

1048 continues to read as follows: 

Authority: 42 U.S.C. 7401—7671q. 

Subpart A—[Amended] 

48. Section 1048.1 is amended by 

revising paragraph (d) to read as 

follows: 

§ 1048.1 Does this part apply to me? 

* * * * * 

(d) In certain cases, the regulations in 

this part 1048 apply to engines with 

maximum engine power at or below 19 

kW that would otherwise be covered by 

40 CFR part 90 or 1054. See 40 CFR 

90.913 or 1054.615 for provisions 

related to this allowance. 

49. A new § 1048.2 is added to read 

as follows: 

§ 1048.2 Who is responsible for 

compliance? 

The regulations in this part 1048 

contain provisions that affect both 

engine manufacturers and others. 

However, the requirements of this part 

are generally addressed to the engine 

manufacturer. The term ‘‘you’’ generally 

means the engine manufacturer, as 

defined in § 1048.801, especially for 

issues related to certification (including 

production-line testing, reporting, etc.). 

50. Section 1048.5 is amended by 

revising paragraph (b) and adding 

paragraph (c) to read as follows: 

§ 1048.5 Which engines are excluded from 

this part’s requirements? 

* * * * * 

(b) Propulsion marine engines. See 40 

CFR parts 91 and 1045. This part 

applies with respect to auxiliary marine 

engines. 

(c) Engines that are certified to meet 

the requirements of 40 CFR parts 92 or 

1033 (locomotive engines), or are 

otherwise subject to 40 CFR parts 92 or 

1033. 

51. Section 1048.10 is amended by 

revising the introductory text to read as 

follows: 

§ 1048.10 How is this part organized? 

This part 1048 is divided into the 

following subparts: 

* * * * * 

52. Section 1048.15 is amended by 

revising the section heading to read as 

follows: 

§ 1048.15 Do any other regulation parts 

apply to me? 

Subpart B—[Amended] 

53. Section 1048.101 is amended by 

adding paragraph (a)(2)(iv) and revising 

paragraphs (f) and (h) to read as follows: 

§ 1048.101 What exhaust emission 

standards must my engines meet? 

* * * * * 

(a) * * * 

(2) * * * 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28293 

(iv) Constant-speed engines and 

severe-duty engines. 

* * * * * 

(f) Small engines. Certain engines 

with total displacement at or below 

1000 cc may comply with the 

requirements of 40 CFR part 90 or 1054 

instead of complying with the 

requirements of this part, as described 

in § 1048.615. 

* * * * * 

(h) Applicability for testing. The dutycycle emission standards in this subpart 

apply to all testing performed according 

to the procedures in §§ 1048.505 and 

1048.510, including certification, 

production-line, and in-use testing. The 

field-testing standards apply for all 

testing performed according to the 

procedures of subpart F of this part. 

54. Section 1048.105 is revised to read 

as follows: 

§ 1048.105 What evaporative emission 

standards and requirements apply? 

Starting in the 2007 model year, new 

engines that run on a volatile liquid fuel 

(such as gasoline) must meet the 

emission standards of this section over 

a useful life of five years. Note that 

§ 1048.245 allows you to use designbased certification instead of generating 

new emission data. Auxiliary marine 

engines must meet the evaporative 

emission standards in 40 CFR 1045.107 

instead of the standards in this section. 

(a) Fuel line permeation. For 

nonmetallic fuel lines, you must specify 

and use products that meet the Category 

1 specifications for permeation in SAE 

J2260 (incorporated by reference in 

§ 1048.810). 

(b) [Reserved] 

(c) Diurnal emissions. Evaporative 

hydrocarbon emissions may not exceed 

0.2 grams per gallon of fuel tank 

capacity when measured using the test 

procedures specified in 40 CFR 

1060.525, except that permeation 

emissions may not be subtracted from 

the measured value. Diurnal emission 

controls must continue to function 

during engine operation. 

(d) Running loss. Liquid fuel in the 

fuel tank may not reach boiling during 

continuous engine operation in the final 

installation at an ambient temperature 

of 30 °C. Note that gasoline with a Reid 

vapor pressure of 62 kPa (9 psi) begins 

to boil at about 53 °C at atmospheric 

pressure, and at about 60 °C for fuel 

tanks that hold pressure as described in 

§ 1048.245(e)(1)(i). 

(e) Installation. If other companies 

install your engines in their equipment, 

you may introduce your engines into 

U.S. commerce without meeting all the 

requirements in this section. However, 

you must give equipment manufacturers 

any appropriate instructions so that 

fully assembled equipment will meet all 

the requirements in this section, as 

described in § 1048.130. Introducing 

equipment into U.S. commerce without 

meeting all the requirements of this 

section violates 40 CFR 1068.101(a)(1). 

55. Section 1048.110 is amended by 

revising paragraphs (c) and (d) to read 

as follows: 

§ 1048.110 How must my engines 

diagnose malfunctions? 

* * * * * 

(c) Control when the MIL can go out. 

If the MIL goes on to show a 

malfunction or system error, it must 

remain on during all later engine 

operation until servicing corrects the 

malfunction. If the engine is not 

serviced, but the malfunction or system 

error does not recur for three 

consecutive engine starts during which 

the malfunctioning system is evaluated 

and found to be working properly, the 

MIL may stay off during later engine 

operation. 

(d) Store trouble codes in computer 

memory. Record and store in computer 

memory any diagnostic trouble codes 

showing a malfunction that should 

illuminate the MIL. The stored codes 

must identify the malfunctioning system 

or component as uniquely as possible. 

Make these codes available through the 

data link connector as described in 

paragraph (g) of this section. You may 

store codes for conditions that do not 

turn on the MIL. The system must store 

a separate code to show when the 

diagnostic system is disabled. 

* * * * * 

56. Section 1048.115 is amended by 

revising the section heading, 

introductory text, and paragraph (e) to 

read as follows: 

§ 1048.115 What other requirements 

apply? 

Engines that are required to meet the 

emission standards of this part must 

meet the following requirements: 

* * * * * 

(e) Adjustable parameters. Engines 

that have adjustable parameters must 

meet all the requirements of this part for 

any adjustment in the physically 

adjustable range. An operating 

parameter is not considered adjustable if 

you permanently seal it or if it is not 

normally accessible using ordinary 

tools. We may require that you set 

adjustable parameters to any 

specification within the adjustable range 

during any testing, including 

certification testing, production-line 

testing, or in-use testing. 

* * * * * 

57. Section 1048.120 is amended by 

revising paragraph (c) to read as follows: 

§ 1048.120 What emission-related warranty 

requirements apply to me? 

* * * * * 

(c) Components covered. The 

emission-related warranty covers all 

components whose failure would 

increase an engine’s emissions of any 

pollutant, including those listed in 40 

CFR part 1068, Appendix I, and those 

from any other system you develop to 

control emissions. The emission-related 

warranty covers these components even 

if another company produces the 

component. Your emission-related 

warranty does not cover components 

whose failure would not increase an 

engine’s emissions of any pollutant. 

* * * * * 

58. Section 1048.125 is amended by 

revising paragraph (d) to read as 

follows: 

§ 1048.125 What maintenance instructions 

must I give to buyers? 

* * * * * 

(d) Noncritical emission-related 

maintenance. Subject to the provisions 

of this paragraph (d), you may schedule 

any amount of emission-related 

inspection or maintenance that is not 

covered by paragraph (a) of this section 

(i.e., maintenance that is neither 

explicitly identified as critical emissionrelated maintenance, nor that we 

approve as critical emission-related 

maintenance). Noncritical emissionrelated maintenance generally includes 

changing spark plugs, re-seating valves, 

or any other emission-related 

maintenance on the components we 

specify in 40 CFR part 1068, Appendix 

I. You must state in the owners manual 

that these steps are not necessary to 

keep the emission-related warranty 

valid. If operators fail to do this 

maintenance, this does not allow you to 

disqualify those engines from in-use 

testing or deny a warranty claim. Do not 

take these inspection or maintenance 

steps during service accumulation on 

your emission-data engines. 

* * * * * 

59. Section 1048.135 is amended by 

revising paragraphs (c)(5), (c)(11), 

(c)(17), and (f) to read as follows: 

§ 1048.135 How must I label and identify 

the engines I produce? 

* * * * * 

(c) * * * 

(5) State the date of manufacture 

[MONTH and YEAR]; however, you may 

omit this from the label if you stamp or 

engrave it on the engine. 

* * * * * 


sroberts on PROD1PC70 with PROPOSALS
28294 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(11) Identify the emission standards to 

which you have certified the engine (in 

g/kW-hr). 

* * * * * 

(17) If your engines are certified to the 

voluntary standards in § 1048.140, state: 

‘‘BLUE SKY SERIES’’ and identify the 

standard to which you certify the 

engines. 

* * * * * 

(f) If you obscure the engine label 

while installing the engine in the 

equipment such that the label cannot be 

read during normal maintenance, you 

must place a duplicate label on the 

equipment. If others install your engine 

in their equipment in a way that 

obscures the engine label, we require 

them to add a duplicate label on the 

equipment (see 40 CFR 1068.105); in 

that case, give them the number of 

duplicate labels they request and keep 

the following records for at least five 

years: 

(1) Written documentation of the 

request from the equipment 

manufacturer. 

(2) The number of duplicate labels 

you send for each engine family and the 

date you sent them. 

60. Section 1048.140 is revised to read 

as follows: 

§ 1048.140 What are the provisions for 

certifying Blue Sky Series engines? 

This section defines voluntary 

standards for a recognized level of 

superior emission control for engines 

designated as ‘‘Blue Sky Series’’

engines. If you certify an engine family 

under this section, it is subject to all the 

requirements of this part as if these 

voluntary standards were mandatory. To 

receive a certificate of conformity as 

‘‘Blue Sky Series,’’ you must certify to 

one of the sets of exhaust emission 

standards in the following table: 

TABLE 1 TO § 1048.140.—STANDARDS

FOR BLUE SKY SERIES ENGINES

(g/kW-hr) 

Standards for steadystate and transient 

test procedures 

Standards for 

field-testing 

procedures 

HC+NOX CO HC+NOX CO 

0.80 4.4 1.10 6.6 

0.60 4.4 0.84 6.6 

0.40 4.4 0.56 6.6 

0.20 4.4 0.28 6.6 

0.10 4.4 0.14 6.6 

Subpart C—[Amended] 

61. Section 1048.201 is amended by 

revising paragraph (a) to read as follows: 

§ 1048.201 What are the general 

requirements for obtaining a certificate of 

conformity? 

(a) You must send us a separate 

application for a certificate of 

conformity for each engine family. A 

certificate of conformity is valid starting 

with the indicated effective date, but it 

is not valid for any production after 

December 31 of the model year for 

which it is issued. No certificate will be 

issued after December 31 of the model 

year. 

* * * * * 

62. Section 1048.205 is amended by 

revising paragraphs (b), (p)(1), (q), (r) 

introductory text, (y), and (aa) to read as 

follows: 

§ 1048.205 What must I include in my 

application? 

* * * * * 

(b) Explain how the emission control 

systems operate. Describe the 

evaporative emission controls. Also 

describe in detail all system 

components for controlling exhaust 

emissions, including all auxiliary 

emission control devices (AECDs) and 

all fuel-system components you will 

install on any production or test engine. 

Identify the part number of each 

component you describe. For this 

paragraph (b), treat as separate AECDs 

any devices that modulate or activate 

differently from each other. Include 

sufficient detail to allow us to evaluate 

whether the AECDs are consistent with 

the defeat device prohibition of 

§ 1048.115. 

* * * * * 

(p) * * * 

(1) Present exhaust emission data for 

HC, NOX, and CO on an emission-data 

engine to show your engines meet the 

applicable duty-cycle emission 

standards we specify in § 1048.101. 

Show emission figures before and after 

applying deterioration factors for each 

engine. Include emission results for 

each mode if you do discrete-mode 

testing under § 1048.505. Include test 

data for each type of fuel from 40 CFR 

part 1065, subpart H, on which you 

intend for engines in the engine family 

to operate (for example, gasoline, 

liquefied petroleum gas, methanol, or 

natural gas). If we specify more than one 

grade of any fuel type (for example, a 

summer grade and winter grade of 

gasoline), you need to submit test data 

only for one grade unless the regulations 

of this part specify otherwise for your 

engine. Note that § 1048.235 allows you 

to submit an application in certain cases 

without new emission data. 

* * * * * 

(q) State that all the engines in the 

engine family comply with the fieldtesting emission standards we specify in 

§ 1048.101(c) for all normal operation 

and use when tested as specified in 

§ 1048.515. Describe any relevant 

testing, engineering analysis, or other 

information in sufficient detail to 

support your statement. 

(r) For engines not subject to transient 

testing requirements in § 148.101(a), 

include information showing how your 

emission controls will function during 

normal in-use transient operation. For 

example, this might include the 

following: 

* * * * * 

(y) Include good-faith estimates of 

U.S.-directed production volumes. 

Include a justification for the estimated 

production volumes if they are 

substantially different than actual 

production volumes in earlier years for 

similar models. 

* * * * * 

(aa) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

63. Section 1048.220 is amended by 

revising the introductory text to read as 

follows: 

§ 1048.220 How do I amend the 

maintenance instructions in my 

application? 

You may amend your emissionrelated maintenance instructions after 

you submit your application for 

certification, as long as the amended 

instructions remain consistent with the 

provisions of § 1048.125. You must send 

the Designated Compliance Officer a 

written request to amend your 

application for certification for an 

engine family if you want to change the 

emission-related maintenance 

instructions in a way that could affect 

emissions. In your request, describe the 

proposed changes to the maintenance 

instructions. We will disapprove your 

request if we determine that the 

amended instructions are inconsistent 

with maintenance you performed on 

emission-data engines. If operators 

follow the original maintenance 

instructions rather than the newly 

specified maintenance, this does not 

allow you to disqualify those engines 

from in-use testing or deny a warranty 

claim. 

* * * * * 

64. Section 1048.225 is revised to read 

as follows: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28295 

§ 1048.225 How do I amend my application 

for certification to include new or modified 

engine configurations? 

Before we issue you a certificate of 

conformity, you may amend your 

application to include new or modified 

engine configurations, subject to the 

provisions of this section. After we have 

issued your certificate of conformity, 

you may send us an amended 

application requesting that we include 

new or modified engine configurations 

within the scope of the certificate, 

subject to the provisions of this section. 

You must amend your application if any 

changes occur with respect to any 

information included in your 

application. 

(a) You must amend your application 

before you take any of the following 

actions: 

(1) Add an engine configuration to an 

engine family. In this case, the engine 

configuration added must be consistent 

with other engine configurations in the 

engine family with respect to the criteria 

listed in § 1048.230. 

(2) Change an engine configuration 

already included in an engine family in 

a way that may affect emissions, or 

change any of the components you 

described in your application for 

certification. This includes production 

and design changes that may affect 

emissions any time during the engine’s 

lifetime. 

(b) To amend your application for 

certification, send the Designated 

Compliance Officer the following 

information: 

(1) Describe in detail the addition or 

change in the engine model or 

configuration you intend to make. 

(2) Include engineering evaluations or 

data showing that the amended engine 

family complies with all applicable 

requirements. You may do this by 

showing that the original emission-data 

engine is still appropriate for showing 

that the amended family complies with 

all applicable requirements. 

(3) If the original emission-data 

engine for the engine family is not 

appropriate to show compliance for the 

new or modified engine configuration, 

include new test data showing that the 

new or modified engine configuration 

meets the requirements of this part. 

(c) We may ask for more test data or 

engineering evaluations. You must give 

us these within 30 days after we request 

them. 

(d) For engine families already 

covered by a certificate of conformity, 

we will determine whether the existing 

certificate of conformity covers your 

newly added or modified engine. You 

may ask for a hearing if we deny your 

request (see § 1048.820). 

(e) For engine families already 

covered by a certificate of conformity, 

you may start producing the new or 

modified engine configuration anytime 

after you send us your amended 

application and before we make a 

decision under paragraph (d) of this 

section. However, if we determine that 

the affected engines do not meet 

applicable requirements, we will notify 

you to cease production of the engines 

and may require you to recall the 

engines at no expense to the owner. 

Choosing to produce engines under this 

paragraph (e) is deemed to be consent to 

recall all engines that we determine do 

not meet applicable emission standards 

or other requirements and to remedy the 

nonconformity at no expense to the 

owner. If you do not provide 

information required under paragraph 

(c) of this section within 30 days, you 

must stop producing the new or 

modified engines. 

65. Section 1048.230 is amended by 

revising paragraphs (a) and (d) to read 

as follows: 

§ 1048.230 How do I select engine 

families? 

(a) For purposes of certification, 

divide your product line into families of 

engines that are expected to have 

similar emission characteristics 

throughout the useful life as described 

in this section. Your engine family is 

limited to a single model year. 

* * * * * 

(d) In unusual circumstances, you 

may group engines that are not identical 

with respect to the things listed in 

paragraph (b) of this section in the same 

engine family if you show that their 

emission characteristics during the 

useful life will be similar. 

* * * * * 

66. Section 1048.235 is amended by 

revising paragraph (d)(1) to read as 

follows: 

§ 1048.235 What emission testing must I 

perform for my application for a certificate 

of conformity? 

* * * * * 

(d) * * * 

(1) The emission family from the 

previous model year differs from the 

current emission family only with 

respect to model year or other 

characteristics unrelated to emissions. 

You may also ask to add a configuration 

subject to § 1048.225. 

* * * * * 

67. Section 1048.240 is amended by 

revising paragraphs (c)(1) and (c)(2) to 

read as follows: 

§ 1048.240 How do I demonstrate that my 

engine family complies with exhaust 

emission standards? 

* * * * * 

(c) * * * 

(1) Multiplicative deterioration factor. 

Except as specified in paragraph (c)(2) 

of this section, use a multiplicative 

deterioration factor for exhaust 

emissions. A multiplicative 

deterioration factor is the ratio of 

exhaust emissions at the end of useful 

life to exhaust emissions at the low-hour 

test point. Adjust the official emission 

results for each tested engine at the 

selected test point by multiplying the 

measured emissions by the deterioration 

factor. If the factor is less than one, use 

one. 

(2) Additive deterioration factor. Use 

an additive deterioration factor for 

exhaust emissions if engines do not use 

aftertreatment technology. Also, you 

may use an additive deterioration factor 

for exhaust emissions for a particular 

pollutant if all the emission-data 

engines in the engine family have lowhour emission levels below 0.3 g/kW-hr 

(for CO or HC+NOX, as appropriate), 

unless a multiplicative deterioration 

factor is more appropriate. For example, 

you should use a multiplicative 

deterioration factor if emission increases 

are best represented by the ratio of 

exhaust emissions at the end of the 

useful life to exhaust emissions at the 

low-hour test point. An additive 

deterioration factor is the difference 

between exhaust emissions at the end of 

useful life and exhaust emissions at the 

low-hour test point. Adjust the official 

emission results for each tested engine 

at the selected test point by adding the 

factor to the measured emissions. If the 

factor is less than zero, use zero. 

* * * * * 

68. Section 1048.245 is amended by 

revising paragraphs (c) and (e)(1)(i) to 

read as follows: 

§ 1048.245 How do I demonstrate that my 

engine family complies with evaporative 

emission standards? 

* * * * * 

(c) Use good engineering judgment to 

develop a test plan to establish 

deterioration factors to show how much 

emissions increase at the end of the 

useful life. 

* * * * * 

(e) * * * 

(1) * * * 

(i) Use a tethered or self-closing gas 

cap on a fuel tank that stays sealed up 

to a positive pressure of 24.5 kPa (3.5 

psig); however, they may contain air 

inlets that open when there is a vacuum 

pressure inside the tank. Nonmetal fuel 

tanks must also use one of the 


sroberts on PROD1PC70 with PROPOSALS
28296 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

qualifying designs for controlling 

permeation emissions specified in 40 

CFR 1060.240. 

* * * * * 

69. Section 1048.250 is amended by 

redesignating paragraphs (a) through (d) 

as paragraphs (b) through (e), 

respectively, and adding a new 

paragraph (a) to read as follows: 

§ 1048.250 What records must I keep and 

make available to EPA? 

(a) If you produce vehicles under any 

provisions of this part that are related to 

production volumes, send the 

Designated Compliance Officer a report 

within 30 days after the end of the 

model year describing the total number 

of vehicles you produced in each engine 

family. For example, if you use special 

provisions intended for small-volume 

manufacturers, report your production 

volumes to show that you do not exceed 

the applicable limits. 

* * * * * 

70. Section 1048.255 is amended by 

revising the section heading and 

paragraph (d) to read as follows: 

§ 1048.255 What decisions may EPA make 

regarding my certificate of conformity? 

* * * * * 

(d) We may void your certificate if 

you do not keep the records we require 

or do not give us information as 

required under this part or the Act. 

* * * * * 

Subpart D—[Amended] 

71. Section 1048.301 is amended by 

revising paragraphs (a) and (c) to read as 

follows: 

§ 1048.301 When must I test my 

production-line engines? 

(a) If you produce engines that are 

subject to the requirements of this part, 

you must test them as described in this 

subpart, except as follows: 

(1) [Reserved] 

(2) We may exempt engine families 

with a projected U.S.-directed 

production volume below 150 units 

from routine testing under this subpart. 

Request this exemption in the 

application for certification and include 

your basis for projecting a production 

volume below 150 units. You must 

promptly notify us if your actual 

production exceeds 150 units during the 

model year. If you exceed the 

production limit or if there is evidence 

of a nonconformity, we may require you 

to test production-line engines under 

this subpart, or under 40 CFR part 1068, 

subpart E, even if we have approved an 

exemption under this paragraph (a)(2). 

* * * * * 

(c) Other regulatory provisions 

authorize us to suspend, revoke, or void 

your certificate of conformity, or order 

recalls for engine families without 

regard to whether they have passed 

these production-line testing 

requirements. The requirements of this 

subpart do not affect our ability to do 

selective enforcement audits, as 

described in part 1068 of this chapter. 

Individual engines in families that pass 

these production-line testing 

requirements must also conform to all 

applicable regulations of this part and 

part 1068 of this chapter. 

* * * * * 

72. Section 1048.305 is amended by 

adding introductory text and revising 

paragraphs (a), (d), and (g) to read as 

follows: 

§ 1048.305 How must I prepare and test my 

production-line engines? 

This section describes how to prepare 

and test production-line engines. You 

must assemble the test engine in a way 

that represents the assembly procedures 

for other engines in the engine family. 

You must ask us to approve any 

deviations from your normal assembly 

procedures for other production engines 

in the engine family. 

(a) Test procedures. Test your 

production-line engines using either the 

steady-state or transient testing 

procedures specified in subpart F of this 

part to show you meet the duty-cycle 

emission standards in subpart B of this 

part. The field-testing standards apply 

for this testing, but you need not do 

additional testing to show that 

production-line engines meet the fieldtesting standards. 

* * * * * 

(d) Setting adjustable parameters. 

Before any test, we may require you to 

adjust any adjustable parameter to any 

setting within its physically adjustable 

range. 

(1) We may require you to adjust idle 

speed outside the physically adjustable 

range as needed, but only until the 

engine has stabilized emission levels 

(see paragraph (e) of this section). We 

may ask you for information needed to 

establish an alternate minimum idle 

speed. 

(2) We may specify adjustments 

within the physically adjustable range 

by considering their effect on emission 

levels, as well as how likely it is 

someone will make such an adjustment 

with in-use engines. 

* * * * * 

(g) Retesting after invalid tests. You 

may retest an engine if you determine 

an emission test is invalid under 

subpart F of this part. Explain in your 

written report reasons for invalidating 

any test and the emission results from 

all tests. If you retest an engine, you 

may ask us to substitute results of the 

new tests for the original ones. You 

must ask us within ten days of testing. 

We will generally answer within ten 

days after we receive your information. 

73. Section 1048.310 is amended by 

revising paragraphs (a), (c) introductory 

text, (c)(2), (f), (g), and (h) to read as 

follows: 

§ 1048.310 How must I select engines for 

production-line testing? 

(a) Use test results from two engines 

each quarter to calculate the required 

sample size for the model year for each 

engine family. 

* * * * * 

(c) Calculate the required sample size 

for each engine family. Separately 

calculate this figure for HC+NOX and 

CO. The required sample size is the 

greater of these calculated values. Use 

the following equation: 

N = [(t95 × s)/(x ¥ STD)]2 + 1 

Where: 

N = Required sample size for the model year. 

t95 = 95% confidence coefficient, which 

depends on the number of tests 

completed, n, as specified in the table in 

paragraph (c)(1) of this section. It defines 

95% confidence intervals for a one-tail 

distribution. 

x = Mean of emission test results of the 

sample. 

STD = Emission standard. 

s = Test sample standard deviation (see 

paragraph (c)(2) of this section). * * * 

(2) Calculate the standard deviation, 

s, for the test sample using the 

following formula: 

s = [S(Xi ¥ x)2/(n ¥ 1)]1/2

Where: 

Xi = Emission test result for an individual 

engine. 

n = The number of tests completed in an 

engine family. 

* * * * * 

(f) Distribute the remaining tests 

evenly throughout the rest of the year. 

You may need to adjust your schedule 

for selecting engines if the required 

sample size changes. If your scheduled 

quarterly testing for the remainder of the 

model year is sufficient to meet the 

calculated sample size, you may wait 

until the next quarter to do additional 

testing. Continue to randomly select 

engines from each engine family. 

(g) Continue testing until one of the 

following things happens: 

(1) After completing the minimum 

number of tests required in paragraph 

(b) of this section, the number of tests 

completed in an engine family, n, is 

greater than the required sample size, N, 

and the sample mean, x, is less than or 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28297 

equal to the emission standard. For 

example, if N = 5.1 after the fifth test, 

the sample-size calculation does not 

allow you to stop testing. 

(2) The engine family does not 

comply according to § 1048.315. 

(3) You test 30 engines from the 

engine family. 

(4) You test one percent of your 

projected annual U.S.-directed 

production volume for the engine 

family, rounded to the nearest whole 

number. Do not count an engine under 

this paragraph (g)(4) if it fails to meet an 

applicable emission standard. You may 

stop testing after you test one percent of 

your production volume even if you 

have not tested the number of engines 

specified in paragraph (b) of this 

section. For example, if projected 

volume is 475 engines, test two engines 

in each of the first two quarters and one 

engine in the third quarter to fulfill your 

testing requirements under this section 

for that engine family. 

(5) You choose to declare that the 

engine family does not comply with the 

requirements of this subpart. 

(h) If the sample-size calculation 

allows you to stop testing for one 

pollutant but not another, you must 

continue measuring emission levels of 

all pollutants for any additional tests 

required under this section. However, 

you need not continue making the 

calculations specified in this section for 

the pollutant for which testing is not 

required. This paragraph (h) does not 

affect the number of tests required 

under this section or the remedial steps 

required under § 1048.320. 

* * * * * 

74. Section 1048.315 is amended by 

revising paragraphs (a) and (b) to read 

as follows: 

§ 1048.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

* * * * * 

(a) Calculate your test results as 

follows: 

(1) Initial and final test results. 

Calculate and round the test results for 

each engine. If you do several tests on 

an engine, calculate the initial test 

results, then add them together and 

divide by the number of tests and round 

for the final test results on that engine. 

(2) Final deteriorated test results. 

Apply the deterioration factor for the 

engine family to the final test results 

(see § 1048.240(c)). 

(3) Round deteriorated test results. 

Round the results to the number of 

decimal places in the emission standard 

expressed to one more decimal place. 

(b) Construct the following CumSum 

Equation for each engine family for 

HC+NOX and CO emissions: 

Ci = Max [0 or Ci¥1 + Xi ¥ (STD + 0.25 

× s)] 

Where: 

Ci = The current CumSum statistic. 

Ci–1 = The previous CumSum statistic. For 

the first test, the CumSum statistic is 0 

(i.e., C1 = 0). 

Xi = The current emission test result for an 

individual engine. 

STD = Emission standard. 

* * * * * 

75. Section 1048.325 is amended by 

revising the section heading and 

paragraph (c) to read as follows: 

§ 1048.325 What happens if an engine 

family fails the production-line testing 

requirements? 

* * * * * 

(c) Up to 15 days after we suspend the 

certificate for an engine family, you may 

ask for a hearing (see § 1048.820). If we 

agree before a hearing occurs that we 

used erroneous information in deciding 

to suspend the certificate, we will 

reinstate the certificate. 

* * * * * 

76. Section 1048.345 is amended by 

revising paragraphs (a)(4), (a)(5), (a)(8), 

and (c) to read as follows: 

§ 1048.345 What production-line testing 

records must I send to EPA? 

* * * * * 

(a) * * * 

(4) Describe each test engine, 

including the engine family’s 

identification and the engine’s model 

year, build date, model number, 

identification number, and number of 

hours of operation before testing. 

(5) Identify how you accumulated 

hours of operation on the engines and 

describe the procedure and schedule 

you used. 

* * * * * 

(8) Provide the CumSum analysis 

required in § 1048.315 and the samplesize calculation required in § 1048.310 

for each engine family. 

* * * * * 

(c) An authorized representative of 

your company must sign the following 

statement: 

We submit this report under Sections 

208 and 213 of the Clean Air Act. Our 

production-line testing conformed 

completely with the requirements of 40 

CFR part 1048. We have not changed 

production processes or quality-control 

procedures for test engines in a way that 

might affect emission controls. All the 

information in this report is true and 

accurate, to the best of my knowledge. 

I know of the penalties for violating the 

Clean Air Act and the regulations. 

(Authorized Company Representative) 

* * * * * 

77. Section 1048.350 is amended by 

revising paragraphs (b) and (e) to read 

as follows: 

§ 1048.350 What records must I keep? 

* * * * * 

(b) Keep paper records of your 

production-line testing for eight years 

after you complete all the testing 

required for an engine family in a model 

year. You may use any additional 

storage formats or media if you like. 

* * * * * 

(e) If we ask, you must give us 

projected or actual production figures 

for an engine family. We may ask you 

to divide your production figures by 

maximum engine power, displacement, 

fuel type, or assembly plant (if you 

produce engines at more than one 

plant). 

* * * * * 

Subpart E—[Amended] 

78. Section 1048.410 is amended by 

revising paragraph (e) to read as follows: 

§ 1048.410 How must I select, prepare, and 

test my in-use engines? 

* * * * * 

(e) You may do repeat measurements 

with a test engine; however, you must 

conduct the same number of tests on 

each engine. 

* * * * * 

79. Section 1048.415 is amended by 

revising paragraphs (c) and (d) to read 

as follows: 

§ 1048.415 What happens if in-use engines 

do not meet requirements? 

* * * * * 

(c) We will consider failure rates, 

average emission levels, and any 

defects—among other things—to decide 

on taking remedial action under this 

subpart (see 40 CFR 1068.505). We may 

consider the results from any voluntary 

additional testing you perform. We may 

also consider information related to 

testing from other engine families 

showing that you designed them to 

exceed the minimum requirements for 

controlling emissions. We may order a 

recall before or after you complete 

testing of an engine family if we 

determine a substantial number of 

engines do not conform to section 213 

of the Act or to this part. The scope of 

the recall may include other engine 

families in the same or different model 

years if the cause of the problem 

identified in paragraph (a) of this 

section applies more broadly than the 

tested engine family, as allowed by the 

Act. 


sroberts on PROD1PC70 with PROPOSALS
28298 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(d) If in-use testing reveals a design or 

manufacturing defect that prevents 

engines from meeting the requirements 

of this part, you must correct the defect 

as soon as possible for any future 

production for engines in every family 

affected by the defect. See 40 CFR 

1068.501 for additional requirements 

related to defect reporting. 

* * * * * 

Subpart F—[Amended] 

80. Section 1048.501 is amended by 

removing paragraph (h), removing and 

reserving paragraph (e), and revising 

paragraph (c) to read as follows: 

§ 1048.501 How do I run a valid emission 

test? 

* * * * * 

(c) Use the fuels and lubricants 

specified in 40 CFR part 1065, subpart 

H, to perform valid tests for all the 

testing we require in this part, except as 

noted in § 1048.515. For service 

accumulation, use the test fuel or any 

commercially available fuel that is 

representative of the fuel that in-use 

engines will use. 

* * * * * 

81. Section 1048.505 is amended by 

revising paragraphs (a) and (b)(1) to read 

as follows: 

§ 1048.505 What transient duty cycles 

apply for laboratory testing? 

* * * * * 

(a) You may perform steady-state 

testing with either discrete-mode or 

ramped-modal cycles, as follows: 

(1) For discrete-mode testing, sample 

emissions separately for each mode, 

then calculate an average emission level 

for the whole cycle using the weighting 

factors specified for each mode. 

Calculate cycle statistics for each mode 

and compare with the specified values 

in 40 CFR 1065.514 to confirm that the 

test is valid. Operate the engine and 

sampling system as follows: 

(i) Engines with lean NOX

aftertreatment. For lean-burn engines 

that depend on aftertreatment to meet 

the NOX emission standard, operate the 

engine for 5–6 minutes, then sample 

emissions for 1–3 minutes in each 

mode. 

(ii) Engines without lean NOX

aftertreatment. For other engines, 

operate the engine for at least 5 minutes, 

then sample emissions for at least 1 

minute in each mode. 

(2) For ramped-modal testing, start 

sampling at the beginning of the first 

mode and continue sampling until the 

end of the last mode. Calculate 

emissions and cycle statistics the same 

as for transient testing as specified in 40 

CFR part 1065, subpart G. 

(b) * * * 

(1) For engines from an engine family 

that will be used only in variable-speed 

applications, use one of the following 

duty cycles: 

(i) The following duty cycle applies 

for discrete-mode testing: 

TABLE 1 TO § 1048.505 

C2 mode No. Engine speed 1 Observed 

torque 2

Weighting 

factors 

1 ....................................................... Maximum test speed ................................................................................. 25 0.06 

2 ....................................................... Intermediate test ........................................................................................ 100 0.02 

3 ....................................................... Intermediate test ........................................................................................ 75 0.05 

4 ....................................................... Intermediate test ........................................................................................ 50 0.32 

5 ....................................................... Intermediate test ........................................................................................ 25 0.30 

6 ....................................................... Intermediate test ........................................................................................ 10 0.10 

7 ....................................................... Idle ............................................................................................................. 0 0.15 

1Speed terms are defined in 40 CFR part 1065. 

2The percent torque is relative to the maximum torque at the given engine speed. 

(ii) The following duty cycle applies 

for ramped-modal testing: 

TABLE 2 TO § 1048.505 

RMC mode Time in mode 

(seconds) Engine speed 1 2 Torque (percent) 2 3

1a Steady-state ....................................... 119 Warm Idle ................................................ 0. 

1b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

2a Steady-state ....................................... 29 Intermediate Speed ................................. 100. 

2b Transition ............................................ 20 Intermediate Speed ................................. Linear Transition. 

3a Steady-state ....................................... 150 Intermediate Speed ................................. 10. 

3b Transition ............................................ 20 Intermediate Speed ................................. Linear Transition. 

4a Steady-state ....................................... 80 Intermediate Speed ................................. 75. 

4b Transition ............................................ 20 Intermediate Speed ................................. Linear Transition. 

5a Steady-state ....................................... 513 Intermediate Speed ................................. 25. 

5b Transition ............................................ 20 Intermediate Speed ................................. Linear Transition. 

6a Steady-state ....................................... 549 Intermediate Speed ................................. 50. 

6b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

7a Steady-state ....................................... 96 Maximum test speed ............................... 25. 

7b Transition ............................................ 20 Linear Transition ...................................... Linear Transition. 

8 Steady-state ......................................... 124 Warm Idle ................................................ 0. 

1Speed terms are defined in 40 CFR part 1065. 

2Advance from one mode to the next within a 20-second transition phase. During the transition phase, command a linear progression from the 

torque setting of the current mode to the torque setting of the next mode. 3The percent torque is relative to maximum torque at the commanded engine speed. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28299 

* * * * * 

82. Section 1048.510 is amended by 

revising paragraphs (a) and (c)(1) to read 

as follows: 

§ 1048.510 What transient duty cycles 

apply for laboratory testing? 

(a) Starting with the 2007 model year, 

measure emissions by testing the engine 

on a dynamometer with the duty cycle 

described in Appendix II to determine 

whether it meets the transient emission 

standards in § 1048.101(a). 

* * * * * 

(c) * * * 

(1) Operate the engine for the first 180 

seconds of the appropriate duty cycle, 

then allow it to idle without load for 30 

seconds. At the end of the 30-second 

idling period, start measuring emissions 

as the engine operates over the 

prescribed duty cycle. For severe-duty 

engines, this engine warm-up procedure 

may include up to 15 minutes of 

operation over the appropriate duty 

cycle. 

* * * * * 

Subpart G—[Amended] 

83. Section 1048.605 is amended by 

revising paragraph (d)(7)(ii) to read as 

follows: 

§ 1048.605 What provisions apply to 

engines certified under the motor-vehicle 

program? 

* * * * * 

(d) * * * 

(7) * * * 

(ii) List the engine or equipment 

models you expect to produce under 

this exemption in the coming year and 

describe your basis for meeting the sales 

restrictions of paragraph (d)(3) of this 

section. 

* * * * * 

84. Section 1048.610 is amended by 

revising paragraphs (d)(7)(ii) and (g) to 

read as follows: 

§ 1048.610 What provisions apply to 

vehicles certified under the motor-vehicle 

program? 

* * * * * 

(d) * * * 

(7) * * * 

(ii) List the equipment models you 

expect to produce under this exemption 

in the coming year and describe your 

basis for meeting the sales restrictions of 

paragraph (d)(3) of this section. 

* * * * * 

(g) Participation in averaging, banking 

and trading. Vehicles adapted for 

nonroad use under this section may 

generate credits under the ABT 

provisions in 40 CFR part 86. These 

vehicles must be included in the 

calculation of the applicable fleet 

average in 40 CFR part 86. 

85. Section 1048.615 is amended by 

revising paragraphs (a)(1), (a)(3) and (d) 

to read as follows: 

§ 1048.615 What are the provisions for 

exempting engines designed for lawn and 

garden applications? 

* * * * * 

(a) * * * 

(1) The engine must have a total 

displacement of 1000.0 cc or less. 

* * * * * 

(3) The engine must be in an engine 

family that has a valid certificate of 

conformity showing that it meets 

emission standards for Class II engines 

under 40 CFR part 90 or 1054 for the 

appropriate model year. 

* * * * * 

(d) Engines exempted under this 

section are subject to all the 

requirements affecting engines under 40 

CFR part 90 or 1054. The requirements 

and restrictions of 40 CFR part 90 or 

1054 apply to anyone manufacturing 

these engines, anyone manufacturing 

equipment that uses these engines, and 

all other persons in the same manner as 

if these engines had a total maximum 

engine power at or below 19 kW. 

86. Section 1048.630 is revised to read 

as follows: 

§ 1048.630 What are the provisions for 

exempting engines used solely for 

competition? 

(a) We may grant you an exemption 

from the standards and requirements of 

this part for a new engine on the 

grounds that it is to be used solely for 

competition. The requirements of this 

part, other than those in this section, do 

not apply to engines that we exempt for 

use solely for competition. 

(b) We will exempt engines that we 

determine will be used solely for 

competition. The basis of our 

determination is described in 

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

Exemptions granted under this section 

are good for only one model year and 

you must request renewal for each 

subsequent model year. We will not 

approve your renewal request if we 

determine the engine will not be used 

solely for competition. 

(c) Engines meeting all the following 

criteria are considered to be used solely 

for competition: 

(1) Neither the engine nor any 

equipment containing the engine may 

be displayed for sale in any public 

dealership or otherwise offered for sale 

to the general public. 

(2) Sale of the equipment in which the 

engine is installed must be limited to 

professional competition teams, 

professional competitors, or other 

qualified competitors. Keep records 

documenting this, such as a letter 

requesting an exempted engine. 

(3) The engine and the equipment in 

which it is installed must have 

performance characteristics that are 

substantially superior to noncompetitive 

models. 

(4) The engines are intended for use 

only as specified in paragraph (e) of this 

section. 

(d) You may ask us to approve an 

exemption for engines not meeting the 

applicable criteria listed in paragraph 

(c) of this section as long as you have 

clear and convincing evidence that the 

engines will be used solely for 

competition. 

(e) Engines are considered to be used 

solely for competition only if their use 

is limited to competition events 

sanctioned by a state or federal 

government agency or another widely 

recognized public organization with 

authorizing permits for participating 

competitors. Operation of such engines 

may include only competition events or 

trials to qualify for competition events. 

Authorized attempts to set performance 

records (and the associated official 

trials) are also considered competition 

events. Engines will not be considered 

to be used solely for competition if they 

are ever used for any recreational or 

other noncompetitive purpose. Any use 

of exempt engines in recreational events 

is a violation of 40 CFR 1068.101. 

(f) You must permanently label 

engines exempted under this section to 

clearly indicate that they are to be used 

only for competition. Failure to properly 

label an engine will void the exemption 

for that engine. 

(g) If we request it, you must provide 

us any information we need to 

determine whether the engines or 

equipment are used solely for 

competition. This would include 

documentation regarding the number of 

engines and the ultimate purchaser of 

each engine. Keep these records for five 

years. 

Subpart I—[Amended] 

87. Section 1048.801 is amended as 

follows: 

a. By revising the definitions for 

‘‘Constant-speed operation’’, 

‘‘Designated Compliance Officer’’, 

‘‘Emission-control system’’, ‘‘Maximum 

engine power’’, ‘‘Nonmethane 

hydrocarbon’’, ‘‘Official emission 

result’’, ‘‘Oxides of nitrogen’’,‘‘Smallvolume engine manufacturer’’, ‘‘Steadystate’’, ‘‘Total hydrocarbon equivalent’’, 

and ‘‘Useful life’’. 

b. By revising paragraph (1) of the 

definition for ‘‘New nonroad engine’’. 


sroberts on PROD1PC70 with PROPOSALS
28300 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

c. By adding text to paragraph (5)(ii) 

of the definition for ‘‘Model year’’. 

d. By adding a definition of ‘‘Engine’’

and adding a paragraph (5)(iii) to the 

definition for ‘‘Model year’’. 

§ 1048.801 What definitions apply to this 

part? 

* * * * * 

Constant-speed operation has the 

meaning given in 40 CFR 1065.1001. 

* * * * * 

Designated Compliance Officer means 

the Manager, Heavy-Duty and Nonroad 

Engine Group (6405–J), U.S. 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460. 

* * * * * 

Emission-control system means any 

device, system, or element of design that 

controls or reduces the emissions of 

regulated pollutants from an engine. 

* * * * * 

Engine has the meaning given in 40 

CFR 1068.30. This includes complete 

and partially complete engines. 

* * * * * 

Maximum engine power has one of 

the following meanings: 

(1) For engines at or below 50 kW, 

maximum engine power has the 

meaning given in 40 CFR 90.3 for 2010 

and earlier model years and in 40 CFR 

1054.140 for 2011 and later model years. 

(2) For engines above 50 kW, 

maximum engine power has the 

meaning given in 40 CFR 1039.140. 

* * * * * 

Model year means one of the 

following things: * * * 

(5) * * * 

(ii) For imported engines described in 

paragraph (5)(ii) of the definition of 

‘‘new nonroad engine,’’ model year 

means the calendar year in which the 

engine is modified. 

(iii) For imported engines described 

in paragraph (5)(iii) of the definition of 

‘‘new nonroad engine,’’ model year 

means the calendar year in which the 

importation occurs. 

* * * * * 

New nonroad engine means any of the 

following things: 

(1) A freshly manufactured nonroad 

engine for which the ultimate purchaser 

has never received the equitable or legal 

title. This kind of engine might 

commonly be thought of as ‘‘brand 

new.’’ In the case of this paragraph (1), 

the engine is new from the time it is 

produced until the ultimate purchaser 

receives the title or the product is 

placed into service, whichever comes 

first. 

* * * * * 

Nonmethane hydrocarbon has the 

meaning given in 40 CFR 1065.1001. 

* * * * * 

Official emission result means the 

measured emission rate for an emissiondata engine on a given duty cycle before 

the application of any deterioration 

factor. 

* * * * * 

Oxides of nitrogen has the meaning 

given in 40 CFR 1065.1001. 

* * * * * 

Small-volume engine manufacturer 

means one of the following: 

(1) An engine manufacturer with U.S.- 

directed production volumes of engines 

subject to the requirements of this part 

totaling no more than 2,000 units in any 

year. For manufacturers owned by a 

parent company, this production limit 

applies to the production of the parent 

company and all its subsidiaries. 

(2) An engine manufacturer with 

fewer than 200 employees. This 

includes any employees working for 

parent or subsidiary companies. 

* * * * * 

Steady-state has the meaning given in 

40 CFR 1065.1001. 

* * * * * 

Total hydrocarbon equivalent has the 

meaning given in 40 CFR 1065.1001. 

* * * * * 

Useful life means the period during 

which the engine is designed to 

properly function in terms of reliability 

and fuel consumption, without being 

remanufactured, specified as a number 

of hours of operation or calendar years, 

whichever comes first. It is the period 

during which a new nonroad engine is 

required to comply with all applicable 

emission standards. See § 1048.101(g). If 

an engine has no hour meter, the 

specified number of hours does not 

limit the period during which an in-use 

engine is required to comply with 

emission standards, unless the degree of 

service accumulation can be verified 

separately. 

* * * * * 

88. Section 1048.810 is amended by 

revising paragraph (b) before the table to 

read as follows: 

§ 1048.810 What materials does this part 

reference? 

* * * * * 

(b) SAE material. Table 2 of this 

section lists material from the Society of 

Automotive Engineers that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

Society of Automotive Engineers, 400 

Commonwealth Drive, Warrendale, PA 

15096 or www.sae.org. Table 1 follows: 

* * * * * 

89. A new § 1048.825 is added to read 

as follows: 

§ 1048.825 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for engines and equipment regulated 

under this part: 

(a) We specify the following 

requirements related to engine 

certification in this part 1048: 

(1) In § 1048.20 we require 

manufacturers of stationary engines to 

label their engines in certain cases. 

(2) In § 1048.135 we require engine 

manufacturers to keep certain records 

related to duplicate labels sent to 

equipment manufacturers. 

(3) In § 1048.145 we include various 

reporting and recordkeeping 

requirements related to interim 

provisions. 

(4) In subpart C of this part we 

identify a wide range of information 

required to certify engines. 

(5) In §§ 1048.345 and 1048.350 we 

specify certain records related to 

production-line testing. 

(6) In §§ 1048.420 and 1048.425 we 

specify certain records related to in-use 

testing. 

(7) In subpart G of this part we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various special compliance 

provisions. 

(b) [Reserved] 

(c) We specify the following 

requirements related to testing in 40 

CFR part 1065: 

(1) In 40 CFR 1065.2 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR 1065.10 and 1065.12 we 

specify information needs for 

establishing various changes to 

published test procedures. 

(3) In 40 CFR 1065.25 we establish 

basic guidelines for storing test 

information. 

(4) In 40 CFR 1065.695 we identify 

data that may be appropriate for 

collecting during testing of in-use 

engines using portable analyzers. 

(d) We specify the following 

requirements related to the general 

compliance provisions in 40 CFR part 

1068: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28301 

(1) In 40 CFR 1068.5 we establish a 

process for evaluating good engineering 

judgment related to testing and 

certification. 

(2) In 40 CFR 1068.25 we describe 

general provisions related to sending 

and keeping information 

(3) In 40 CFR 1068.27 we require 

manufacturers to make engines available 

for our testing or inspection if we make 

such a request. 

(4) In 40 CFR 1068.105 we require 

equipment manufacturers to keep 

certain records related to duplicate 

labels from engine manufacturers. 

(5) In 40 CFR 1068.120 we specify 

recordkeeping related to rebuilding 

engines. 

(6) In 40 CFR part 1068, subpart C, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various exemptions. 

(7) In 40 CFR part 1068, subpart D, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to importing engines. 

(8) In 40 CFR 1068.450 and 1068.455 

we specify certain records related to 

testing production-line engines in a 

selective enforcement audit. 

(9) In 40 CFR 1068.501 we specify 

certain records related to investigating 

and reporting emission-related defects. 

(10) In 40 CFR 1068.525 and 1068.530 

we specify certain records related to 

recalling nonconforming engines. 

Appendix I to Part 1048 [Removed] 

90. Appendix I to part 1048 is 

removed and reserved. 

PART 1051—CONTROL OF EMISSIONS 

FROM RECREATIONAL ENGINES AND 

VEHICLES 

91. The authority citation for part 

1051 continues to read as follows: 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—Amended] 

92. Section 1051.1 is amended by 

revising paragraph (a)(4) to read as 

follows: 

§ 1051.1 Does this part apply for my 

vehicles or engines? 

(a) * * * 

(4) Offroad utility vehicles with 

engines with displacement less than or 

equal to 1000 cc, maximum engine 

power less than or equal to 30 kW, and 

maximum vehicle speed higher than 25 

miles per hour. Offroad utility vehicles 

that are subject to this part are subject 

to the same requirements as ATVs. This 

means that any requirement that applies 

to ATVs also applies to these offroad 

utility vehicles, without regard to 

whether the regulatory language 

mentions offroad utility vehicles. 

* * * * * 

93. A new § 1051.2 is added to read 

as follows: 

§ 1051.2 Who is responsible for 

compliance? 

The regulations in this part 1051 

contain provisions that affect both 

vehicle manufacturers and others. 

However, the requirements of this part 

are generally addressed to the vehicle 

manufacturer. The term ‘‘you’’ generally 

means the vehicle manufacturer, as 

defined in § 1051.801, especially for 

issues related to certification (including 

production-line testing, reporting, etc.). 

94. Section 1051.5 is amended by 

revising paragraph (a) to read as follows: 

§ 1051.5 Which engines are excluded from 

this part’s requirements? 

(a)(1) You may exclude vehicles with 

compression-ignition engines. See 40 

CFR parts 89 and 1039 for regulations 

that cover these engines. 

(2) Vehicles with a combined total 

vehicle dry weight under 20.0 kilograms 

are excluded from this part. Sparkignition engines in these vehicles must 

instead meet emission standards 

specified in 40 CFR parts 90 and 1054. 

See 40 CFR 90.103(a) and the definition 

of handheld in 40 CFR 1054.801. 

* * * * * 

95. Section 1051.10 is amended by 

revising the introductory text to read as 

follows: 

§ 1051.10 How is this part organized? 

This part 1051 is divided into the 

following subparts: 

* * * * * 

96. Section 1051.25 is amended by 

revising paragraphs (a) and (c) to read as 

follows: 

§ 1051.25 What requirements apply when 

installing certified engines in recreational 

vehicles? 

(a) If you manufacture recreational 

vehicles with engines certified under 

§ 1051.20, you must certify your vehicle 

with respect to the evaporative emission 

standards in § 1051.110, but you need 

not certify the vehicle with respect to 

exhaust emissions under this part. The 

vehicle must nevertheless meet all 

emission standards with the engine 

installed. 

* * * * * 

(c) If you obscure the engine label 

while installing the engine in the 

vehicle such that the label cannot be 

read during normal maintenance, you 

must place a duplicate label on the 

vehicle as described in 40 CFR 

1068.105. 

Subpart B—[Amended] 

97. Section 1051.115 is amended by 

revising the section heading and 

introductory text to read as follows: 

§ 1051.115 What other requirements 

apply? 

Vehicles that are required to meet the 

emission standards of this part must 

meet the following requirements: 

* * * * * 

98. Section 1051.120 is amended by 

revising paragraph (c) to read as follows: 

§ 1051.120 What emission-related warranty 

requirements apply to me? 

* * * * * 

(c) Components covered. The 

emission-related warranty covers all 

components whose failure would 

increase an engine’s emissions of any 

pollutant, including those listed in 40 

CFR part 1068, Appendix I, and those 

from any other system you develop to 

control emissions. The emission-related 

warranty covers these components even 

if another company produces the 

component. Your emission-related 

warranty does not cover components 

whose failure would not increase an 

engine’s emissions of any pollutant. 

* * * * * 

99. Section 1051.125 is amended by 

revising paragraph (d) to read as 

follows: 

§ 1051.125 What maintenance instructions 

must I give to buyers? 

* * * * * 

(d) Noncritical emission-related 

maintenance. Subject to the provisions 

of this paragraph (d), you may schedule 

any amount of emission-related 

inspection or maintenance that is not 

covered by paragraph (a) of this section 

(i.e., maintenance that is neither 

explicitly identified as critical emissionrelated maintenance, nor that we 

approve as critical emission-related 

maintenance). Noncritical emissionrelated maintenance generally includes 

changing spark plugs, re-seating valves, 

or any other emission-related 

maintenance on the components we 

specify in 40 CFR part 1068, Appendix 

I. You must state in the owners manual 

that these steps are not necessary to 

keep the emission-related warranty 

valid. If operators fail to do this 

maintenance, this does not allow you to 

disqualify those vehicles from in-use 

testing or deny a warranty claim. Do not 

take these inspection or maintenance 

steps during service accumulation on 

your emission-data vehicles. 

* * * * * 

100. Section 1051.135 is amended by 

removing and reserving paragraph (f) 


sroberts on PROD1PC70 with PROPOSALS
28302 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

and revising paragraphs (c)(6) and (c)(7) 

to read as follows: 

§ 1051.135 How must I label and identify 

the vehicles I produce? 

* * * * * 

(c) * * * 

(6) State the date of manufacture 

[MONTH and YEAR]; however, you may 

omit this from the label if you stamp or 

engrave it on the engine or vehicle. 

(7) State the exhaust emission 

standards or FELs to which the vehicles 

are certified (in g/km or g/kW-hr). Also, 

starting in the 2009 model year, state the 

FEL that applies for the fuel tank if it 

is different than the otherwise 

applicable standard. 

* * * * * 

101. Section 1051.137 is amended by 

revising the introductory text read as 

follows: 

§ 1051.137 What are the consumer labeling 

requirements? 

Label every vehicle certified under 

this part with a removable hang-tag 

showing its emission characteristics 

relative to other models. The label 

should be attached securely to the 

vehicle before it is offered for sale in 

such a manner that it would not be 

accidentally removed prior to sale. Use 

the applicable equations of this section 

to determine the normalized emission 

rate (NER) from the FEL for your 

vehicle. If the vehicle is certified 

without a family emission limit that is 

different than the otherwise applicable 

standard, use the final deteriorated 

emission level. Round the resulting 

normalized emission rate for your 

vehicle to one decimal place. If the 

calculated NER value is less than zero, 

consider NER to be zero for that vehicle. 

We may specify a standardized format 

for labels. At a minimum, the tag should 

include: The manufacturer’s name, 

vehicle model name, engine description 

(500 cc two-stroke with DFI), the NER, 

and a brief explanation of the scale (for 

example, note that 0 is the cleanest and 

10 is the least clean). 

* * * * * 

102. A new § 1051.140 is added to 

read as follows: 

§ 1051.140 What is my vehicle’s maximum 

engine power and displacement? 

This section describes how to 

quantify your vehicle’s maximum 

engine power and displacement for the 

purposes of this part. 

(a) An engine configuration’s 

maximum engine power is the 

maximum brake power point on the 

nominal power curve for the engine 

configuration, as defined in this section. 

Round the power value to the nearest 

0.5 kilowatts. The nominal power curve 

of an engine configuration is the 

relationship between maximum 

available engine brake power and 

engine speed for an engine, using the 

mapping procedures of 40 CFR part 

1065, based on the manufacturer’s 

design and production specifications for 

the engine. This information may also 

be expressed by a torque curve that 

relates maximum available engine 

torque with engine speed. 

(b) An engine configuration’s 

displacement is the intended swept 

volume of the engine rounded to the 

nearest 0.5 cubic centimeter. The swept 

volume of the engine is the product of 

the internal cross-section area of the 

cylinders, the stroke length, and the 

number of cylinders. For example, for a 

one-cylinder engine with a circular 

cylinder having an internal diameter of 

6.00 cm and a 6.25 cm stroke length, the 

rounded displacement would be: (1) × 

(6.00/2)2 × (π) × (6.25) = 176.5 cc. 

Calculate the engine’s intended swept 

volume from the design specifications 

for the cylinders using enough 

significant figures allow determination 

of the displacement to the nearest 0.1 

cc. 

(c) The nominal power curve and 

intended swept volume must be within 

the range of the actual power curves and 

swept volumes of production engines 

considering normal production 

variability. If after production begins it 

is determined that either your nominal 

power curve or your intended swept 

volume does not represent production 

engines, we may require you to amend 

your application for certification under 

§ 1051.225. 

Subpart C—[Amended] 

103. Section 1051.201 is amended by 

revising paragraph (a) to read as follows: 

§ 1051.201 What are the general 

requirements for obtaining a certificate of 

conformity? 

(a) You must send us a separate 

application for a certificate of 

conformity for each engine family. A 

certificate of conformity is valid starting 

with the indicated effective date, but it 

is not valid for any production after 

December 31 of the model year for 

which it is issued. No certificate will be 

issued after December 31 of the model 

year. 

* * * * * 

104. Section 1051.205 is amended by 

revising paragraphs (b), (o)(1), (t), and 

(w) to read as follows: 

§ 1051.205 What must I include in my 

application? 

* * * * * 

(b) Explain how the emission control 

systems operate. Describe the 

evaporative emission controls. Also 

describe in detail all system 

components for controlling exhaust 

emissions, including all auxiliary 

emission control devices (AECDs) and 

all fuel-system components you will 

install on any production or test vehicle 

or engine. Identify the part number of 

each component you describe. For this 

paragraph (b), treat as separate AECDs 

any devices that modulate or activate 

differently from each other. Include 

sufficient detail to allow us to evaluate 

whether the AECDs are consistent with 

the defeat device prohibition of 

§ 1051.115. 

* * * * * 

(o) * * * 

(1) Present exhaust emission data for 

hydrocarbons (such as NMHC or THCE, 

as applicable), NOX, and CO on an 

emission-data vehicle to show your 

vehicles meet the exhaust emission 

standards as specified in subpart B of 

this part. Show emission figures before 

and after applying deterioration factors 

for each vehicle or engine. If we specify 

more than one grade of any fuel type 

(for example, a summer grade and 

winter grade of gasoline), you need to 

submit test data only for one grade 

unless the regulations of this part 

specify otherwise for your engine. 

* * * * * 

(t) Include good-faith estimates of 

U.S.-directed production volumes. 

Include a justification for the estimated 

production volumes if they are 

substantially different than actual 

production volumes in earlier years for 

similar models. 

* * * * * 

(w) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

105. Section 1051.220 is amended by 

revising the introductory text to read as 

follows: 

§ 1051.220 How do I amend the 

maintenance instructions in my 

application? 

You may amend your emissionrelated maintenance instructions after 

you submit your application for 

certification, as long as the amended 

instructions remain consistent with the 

provisions of § 1051.125. You must send 

the Designated Compliance Officer a 

request to amend your application for 

certification for an engine family if you 

want to change the emission-related 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28303 

maintenance instructions in a way that 

could affect emissions. In your request, 

describe the proposed changes to the 

maintenance instructions. We will 

disapprove your request if we determine 

that the amended instructions are 

inconsistent with maintenance you 

performed on emission-data vehicles. If 

operators follow the original 

maintenance instructions rather than 

the newly specified maintenance, this 

does not allow you to disqualify those 

engines from in-use testing or deny a 

warranty claim. 

* * * * * 

106. Section 1051.225 is revised to 

read as follows: 

§ 1051.225 How do I amend my application 

for certification to include new or modified 

vehicle configurations or to change an 

FEL? 

Before we issue you a certificate of 

conformity, you may amend your 

application to include new or modified 

vehicle configurations, subject to the 

provisions of this section. After we have 

issued your certificate of conformity, 

you may send us an amended 

application requesting that we include 

new or modified vehicle configurations 

within the scope of the certificate, 

subject to the provisions of this section. 

You must amend your application if any 

changes occur with respect to any 

information included in your 

application. 

(a) You must amend your application 

before you take any of the following 

actions: 

(1) Add a vehicle configuration to an 

engine family. In this case, the vehicle 

configuration added must be consistent 

with other vehicle configurations in the 

engine family with respect to the criteria 

listed in § 1051.230. 

(2) Change a vehicle configuration 

already included in an engine family in 

a way that may affect emissions, or 

change any of the components you 

described in your application for 

certification. This includes production 

and design changes that may affect 

emissions any time during the engine’s 

lifetime. 

(3) Modify an FEL for an engine 

family, as described in paragraph (f) of 

this section. 

(b) To amend your application for 

certification, send the Designated 

Compliance Officer the following 

information: 

(1) Describe in detail the addition or 

change in the vehicle model or 

configuration you intend to make. 

(2) Include engineering evaluations or 

data showing that the amended engine 

family complies with all applicable 

requirements. You may do this by 

showing that the original emission-data 

vehicle is still appropriate for showing 

that the amended family complies with 

all applicable requirements. 

(3) If the original emission-data 

vehicle for the engine family is not 

appropriate to show compliance for the 

new or modified vehicle configuration, 

include new test data showing that the 

new or modified vehicle configuration 

meets the requirements of this part. 

(c) We may ask for more test data or 

engineering evaluations. You must give 

us these within 30 days after we request 

them. 

(d) For engine families already 

covered by a certificate of conformity, 

we will determine whether the existing 

certificate of conformity covers your 

new or modified vehicle configuration. 

You may ask for a hearing if we deny 

your request (see § 1051.820). 

(e) For engine families already 

covered by a certificate of conformity, 

you may start producing the new or 

modified vehicle configuration any time 

after you send us your amended 

application, before we make a decision 

under paragraph (d) of this section. 

However, if we determine that the 

affected vehicles do not meet applicable 

requirements, we will notify you to 

cease production of the vehicles and 

may require you to recall the vehicles at 

no expense to the owner. Choosing to 

produce vehicles under this paragraph 

(e) is deemed to be consent to recall all 

vehicles that we determine do not meet 

applicable emission standards or other 

requirements and to remedy the 

nonconformity at no expense to the 

owner. If you do not provide 

information required under paragraph 

(c) of this section within 30 days, you 

must stop producing the new or 

modified vehicle configuration. 

(f) You may ask us to approve a 

change to your FEL in certain cases after 

the start of production. The changed 

FEL may not apply to vehicles you have 

already introduced into commerce, 

except as described in this paragraph (f). 

If we approve a changed FEL after the 

start of production, you must include 

the new FEL on the emission control 

information label for all vehicles 

produced after the change. You may ask 

us to approve a change to your FEL in 

the following cases: 

(1) You may ask to raise your FEL for 

your engine family at any time. In your 

request, you must show that you will 

still be able to meet the emission 

standards as specified in subparts B and 

H of this part. If you amend your 

application by submitting new test data 

to include a newly added or modified 

vehicle, as described in paragraph (b)(3) 

of this section, use the appropriate FELs 

with corresponding production volumes 

to calculate your average emission level 

for the model year, as described in 

subpart H of this part. If you amend 

your application without submitting 

new test data, you must use the higher 

FEL for the entire family to calculate 

your average emission level under 

subpart H of this part. 

(2) You may ask to lower the FEL for 

your engine family only if you have test 

data from production engines showing 

that the engines have emissions below 

the proposed lower FEL. The lower FEL 

applies only to engines you produce 

after we approve the new FEL. Use the 

appropriate FELs with corresponding 

production volumes to calculate your 

average emission level for the model 

year, as described in subpart H of this 

part. 

107. Section 1051.230 is amended by 

revising the paragraphs (a) and (e)(1) to 

read as follows: 

§ 1051.230 How do I select engine 

families? 

(a) For purposes of certification, 

divide your product line into families of 

vehicles as described in this section. 

Except as specified in paragraph (f) of 

this section, you must have separate 

engine families for meeting exhaust and 

evaporative emissions. Your engine 

family is limited to a single model year. 

* * * * * 

(e) * * * 

(1) In unusual circumstances, you 

may group such vehicles in the same 

engine family if you show that their 

emission characteristics during the 

useful life will be similar. 

* * * * * 

108. Section 1051.235 is amended by 

revising paragraph (d)(1)(i) to read as 

follows: 

§ 1051.235 What emission testing must I 

perform for my application for a certificate 

of conformity? 

* * * * * 

(d) * * * 

(1) * * * 

(i) The engine family from the 

previous model year differs from the 

current engine family only with respect 

to model year or other characteristics 

unrelated to emissions. You may also 

ask to add a configuration subject to 

§ 1051.225. 

* * * * * 

109. Section 1051.240 is amended by 

revising paragraph (c)(1) to read as 

follows: 

§ 1051.240 How do I demonstrate that my 

engine family complies with exhaust 

emission standards? 

* * * * * 


sroberts on PROD1PC70 with PROPOSALS
28304 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(c) * * * 

(1) For vehicles that use 

aftertreatment technology, such as 

catalytic converters, use a multiplicative 

deterioration factor for exhaust 

emissions. A multiplicative 

deterioration factor is the ratio of 

exhaust emissions at the end of the 

useful life and exhaust emissions at the 

low-hour test point. In these cases, 

adjust the official emission results for 

each tested vehicle or engine at the 

selected test point by multiplying the 

measured emissions by the deterioration 

factor. If the factor is less than one, use 

one. Multiplicative deterioration factors 

must be specified to three significant 

figures. 

* * * * * 

110. Section 1051.243 is amended by 

revising the introductory text and 

paragraph (b)(6) to read as follows: 

§ 1051.243 How do I determine 

deterioration factors from exhaust 

durability testing? 

Establish deterioration factors to 

determine whether your engines will 

meet exhaust emission standards for 

each pollutant throughout the useful 

life, as described in subpart B of this 

part and § 1051.240. This section 

describes how to determine 

deterioration factors, either with preexisting test data or with new emission 

measurements. 

* * * * * 

(b) * * * 

(6) You may use other testing methods 

to determine deterioration factors, 

consistent with good engineering 

judgment, as long as we approve those 

methods in advance. 

* * * * * 

111. Section 1051.245 is amended by 

revising paragraph (e)(1) to read as 

follows: 

§ 1051.245 How do I demonstrate that my 

engine family complies with evaporative 

emission standards? 

* * * * * 

(e) * * * 

(1) For certification to the standards 

specified in § 1051.110(a) with the 

control technologies shown in the 

following table: 

TABLE 1 OF § 1051.245.—DESIGN-CERTIFICATION TECHNOLOGIES FOR CONTROLLING TANK PERMEATION

If the tank permeability control technology is. . . Then you may design-certify with a 

tank emission level of. . . 

(i) A metal fuel tank with no non-metal gaskets or with gaskets made from a low-permeability material. ...... 1.5 g/m2/day. 

(ii) A metal fuel tank with non-metal gaskets with an exposed surface area of 1000 mm2 or less. 1.5 .......... 1.5 g/m2/day. 

* * * * * 

112. Section 1051.250 is amended by 

redesignating paragraphs (a) through (d) 

as paragraphs (b) through (e), 

respectively, and adding a new 

paragraph (a) to read as follows: 

§ 1051.250 What records must I keep and 

make available to EPA? 

(a) If you produce vehicles under any 

provisions of this part that are related to 

production volumes, send the 

Designated Compliance Officer a report 

within 30 days after the end of the 

model year describing the total number 

of vehicles you produced in each engine 

family. For example, if you use special 

provisions intended for small-volume 

manufacturers, report your production 

volumes to show that you do not exceed 

the applicable limits. 

* * * * * 

Subpart D—[Amended] 

113. Section 1051.301 is amended by 

revising paragraphs (a), (c), (e), and (h) 

introductory text to read as follows: 

§ 1051.301 When must I test my 

production-line vehicles or engines? 

(a) If you produce vehicles that are 

subject to the requirements of this part, 

you must test them as described in this 

subpart, except as follows: 

(1) Small-volume manufacturers may 

omit testing under this subpart. 

(2) We may exempt engine families 

with a projected U.S.-directed 

production volume below 150 units 

from routine testing under this subpart. 

Request this exemption in the 

application for certification and include 

your basis for projecting a production 

volume below 150 units. You must 

promptly notify us if your actual 

production exceeds 150 units during the 

model year. If you exceed the 

production limit or if there is evidence 

of a nonconformity, we may require you 

to test production-line engines under 

this subpart, or under 40 CFR part 1068, 

subpart E, even if we have approved an 

exemption under this paragraph (a)(2). 

* * * * * 

(c) Other regulatory provisions 

authorize us to suspend, revoke, or void 

your certificate of conformity, or order 

recalls for engine families without 

regard to whether they have passed 

these production-line testing 

requirements. The requirements of this 

subpart do not affect our ability to do 

selective enforcement audits, as 

described in part 1068 of this chapter. 

Individual vehicles and engines in 

families that pass these production-line 

testing requirements must also conform 

to all applicable regulations of this part 

and part 1068 of this chapter. 

* * * * * 

(e) If you certify an engine family with 

carryover emission data, as described in 

§ 1051.235(c), and these equivalent 

engine families consistently pass the 

production-line testing requirements 

over the preceding two-year period, you 

may ask for a reduced testing rate for 

further production-line testing for that 

family. The minimum testing rate is one 

vehicle or engine per engine family. If 

we reduce your testing rate, we may 

limit our approval to any number of 

model years. In determining whether to 

approve your request, we may consider 

the number of vehicles or engines that 

have failed the emission tests. 

* * * * * 

(h) Vehicles certified to the following 

standards are exempt from the 

production-line testing requirements of 

this subpart if no engine families in the 

averaging set have family emission 

limits that are different than the 

otherwise applicable standard: 

* * * * * 

114. Section 1051.305 is amended by 

adding introductory text and revising 

paragraph (d) to read as follows: 

§ 1051.305 How must I prepare and test my 

production-line vehicles or engines? 

This section describes how to prepare 

and test production-line vehicles or 

engines. Test the engine if your vehicle 

is certified to g/kW-hr standards; 

otherwise test the vehicle. You must 

assemble the test vehicle or engine in a 

way that represents the assembly 

procedures for other vehicles or engines 

in the engine family. You must ask us 

to approve any deviations from your 

normal assembly procedures for other 

production vehicles or engines in the 

engine family. 

* * * * * 

(d) Setting adjustable parameters. 

Before any test, we may require you to 

adjust any adjustable parameter to any 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28305 

setting within its physically adjustable 

range. 

(1) We may require you to adjust idle 

speed outside the physically adjustable 

range as needed, but only until the 

vehicle or engine has stabilized 

emission levels (see paragraph (e) of this 

section). We may ask you for 

information needed to establish an 

alternate minimum idle speed. 

(2) We may specify adjustments 

within the physically adjustable range 

by considering their effect on emission 

levels, as well as how likely it is 

someone will make such an adjustment 

with in-use vehicles. 

(3) We may specify an air-fuel ratio 

within the adjustable range specified in 

§ 1051.115(d). 

* * * * * 

115. Section 1051.310 is amended by 

revising paragraphs (a), (b), (c) 

introductory text, (c)(2), (f), (g), and (h) 

to read as follows: 

§ 1051.310 How must I select vehicles or 

engines for production-line testing? 

(a) Test engines from each engine 

family as described in this section based 

on test periods, as follows: 

(1) For engine families with projected 

U.S.-directed production volume of at 

least 1,600, the test periods are 

consecutive quarters (3 months). 

However, if your annual production 

period is less than 12 months long, you 

may take the following alternative 

approach to define quarterly test 

periods: 

(i) If your annual production period is 

120 days or less, the whole model year 

constitutes a single test period. 

(ii) If your annual production period 

is 121 to 210 days, divide the annual 

production period evenly into two test 

periods. 

(iii) If your annual production period 

is 211 to 300 days, divide the annual 

production period evenly into three test 

periods. 

(iv) If your annual production period 

is 301 days or longer, divide the annual 

production period evenly into four test 

periods. 

(2) For engine families with projected 

U.S.-directed production volume below 

1,600, the whole model year constitutes 

a single test period. 

(b) Early in each test period, randomly 

select and test an engine from the end 

of the assembly line for each engine 

family. 

(1) In the first test period for newly 

certified engines, randomly select and 

test one more engine. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. 

(2) In later test periods of the same 

model year, combine the new test result 

with all previous testing in the model 

year. Then, calculate the required 

sample size for the model year as 

described in paragraph (c) of this 

section. 

(3) In the first test period for engine 

families relying on previously submitted 

test data, combine the new test result 

with the last test result from the 

previous model year. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. Use the last test result from the 

previous model year only for this first 

calculation. For all subsequent 

calculations, use only results from the 

current model year. 

(c) Calculate the required sample size 

for each engine family. Separately 

calculate this figure for HC, NOX (or 

HC + NOX), and CO. The required 

sample size is the greater of these 

calculated values. Use the following 

equation: 

N = [(t95 × s)/(x ¥ STD)]2 + 1 

Where: 

N = Required sample size for the model year. 

t95 = 95% confidence coefficient, which 

depends on the number of tests 

completed, n, as specified in the table in 

paragraph (c)(1) of this section. It defines 

95% confidence intervals for a one-tail 

distribution. 

x = Mean of emission test results of the 

sample. 

STD = Emission standard (or family emission 

limit, if applicable). 

s = Test sample standard deviation (see 

paragraph (c)(2) of this section). 

* * * * * 

(2) Calculate the standard deviation, 

s, for the test sample using the 

following formula: 

s = [S(Xi¥x)2/(n¥1)]1⁄2

Where: 

Xi = Emission test result for an individual 

vehicle or engine. 

n = The number of tests completed in an 

engine family. 

* * * * * 

(f) Distribute the remaining tests 

evenly throughout the rest of the year. 

You may need to adjust your schedule 

for selecting vehicles or engines if the 

required sample size changes. If your 

scheduled quarterly testing for the 

remainder of the model year is sufficient 

to meet the calculated sample size, you 

may wait until the next quarter to do 

additional testing. Continue to 

randomly select vehicles or engines 

from each engine family. 

(g) Continue testing until one of the 

following things happens: 

(1) After completing the minimum 

number of tests required in paragraph 

(b) of this section, the number of tests 

completed in an engine family, n, is 

greater than the required sample size, N, 

and the sample mean, x, is less than or 

equal to the emission standard. For 

example, if N = 5.1 after the fifth test, 

the sample-size calculation does not 

allow you to stop testing. 

(2) The engine family does not 

comply according to § 1051.315. 

(3) You test 30 vehicles or engines 

from the engine family. 

(4) You test one percent of your 

projected annual U.S.-directed 

production volume for the engine 

family, rounded to the nearest whole 

number. Do not count a vehicle or 

engine under this paragraph (g)(4) if it 

fails to meet an applicable emission 

standard. 

(5) You choose to declare that the 

engine family does not comply with the 

requirements of this subpart. 

(h) If the sample-size calculation 

allows you to stop testing for one 

pollutant but not another, you must 

continue measuring emission levels of 

all pollutants for any additional tests 

required under this section. However, 

you need not continue making the 

calculations specified in this section for 

the pollutant for which testing is not 

required. This paragraph (h) does not 

affect the number of tests required 

under this section or the remedial steps 

required under § 1051.320. 

* * * * * 

116. Section 1051.315 is amended by 

revising paragraphs (a), (b), and (g) to 

read as follows: 

§ 1051.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

* * * * * 

(a) Calculate your test results as 

follows: 

(1) Initial and final test results. 

Calculate and round the test results for 

each engine. If you do several tests on 

an engine, calculate the initial test 

results, then add them together and 

divide by the number of tests and round 

for the final test results on that engine. 

(2) Final deteriorated test results. 

Apply the deterioration factor for the 

engine family to the final test results 

(see § 1051.240(c)). 

(3) Round deteriorated test results. 

Round the results to the number of 

decimal places in the emission standard 

expressed to one more decimal place. 

(b) Construct the following CumSum 

Equation for each engine family for HC, 

NOX (HC+NOX), and CO emissions: 

Ci = Max [0 or Ci–1 + Xi ¥ (STD + 0.25 

× s)] 

Where: 

Ci = The current CumSum statistic. 


sroberts on PROD1PC70 with PROPOSALS
28306 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Ci–1 = The previous CumSum statistic. For 

the first test, the CumSum statistic is 0 

(i.e., C1 = 0). 

Xi = The current emission test result for an 

individual vehicle or engine. 

STD = Emission standard (or family emission 

limit, if applicable). 

* * * * * 

(g) If the CumSum statistic exceeds 

the Action Limit in two consecutive 

tests, the engine family fails the 

production-line testing requirements of 

this subpart. Tell us within ten working 

days if this happens. You may request 

to amend the application for 

certification to raise the FEL of the 

engine family as described in 

§ 1051.225(f). 

* * * * * 

117. Section 1051.325 is amended by 

revising the section heading and 

paragraphs (c) and (e) to read as follows: 

§ 1051.325 What happens if an engine 

family fails the production-line testing 

requirements? 

* * * * * 

(c) Up to 15 days after we suspend the 

certificate for an engine family, you may 

ask for a hearing (see § 1051.820). If we 

agree before a hearing occurs that we 

used erroneous information in deciding 

to suspend the certificate, we will 

reinstate the certificate. 

* * * * * 

(e) You may request to amend the 

application for certification to raise the 

FEL of the engine family before or after 

we suspend your certificate if you meet 

the requirements of § 1051.225(f). We 

will approve your request if it is clear 

that you used good engineering 

judgment in establishing the original 

FEL. 

118. Section 1051.345 is amended by 

revising paragraphs (a)(4), (a)(8), and (c) 

to read as follows: 

§ 1051.345 What production-line testing 

records must I send to EPA? 

* * * * * 

(a) * * * 

(4) Describe each test vehicle or 

engine, including the engine family’s 

identification and the vehicle’s model 

year, build date, model number, 

identification number, and number of 

hours of operation before testing. 

* * * * * 

(8) Provide the CumSum analysis 

required in § 1051.315 and the samplesize calculation required in § 1051.310 

for each engine family. 

* * * * * 

(c) An authorized representative of 

your company must sign the following 

statement: 

We submit this report under Sections 

208 and 213 of the Clean Air Act. Our 

production-line testing conformed 

completely with the requirements of 40 

CFR part 1051. We have not changed 

production processes or quality-control 

procedures for test engines (or vehicles) 

in a way that might affect emission 

controls. All the information in this 

report is true and accurate, to the best 

of my knowledge. I know of the 

penalties for violating the Clean Air Act 

and the regulations. (Authorized 

Company Representative) 

* * * * * 

119. Section 1051.350 is amended by 

revising paragraphs (b) and (e) to read 

as follows: 

§ 1051.350 What records must I keep? 

* * * * * 

(b) Keep paper records of your 

production-line testing for eight years 

after you complete all the testing 

required for an engine family in a model 

year. You may use any additional 

storage formats or media if you like. 

* * * * * 

(e) If we ask, you must give us 

projected or actual production figures 

for an engine family. We may ask you 

to divide your production figures by 

maximum engine power, displacement, 

fuel type, or assembly plant (if you 

produce vehicles or engines at more 

than one plant). 

* * * * * 

Subpart F—[Amended] 

120. Section 1051.505 is amended by 

revising paragraphs (a)(1) and (a)(2) to 

read as follows: 

§ 1051.505 What special provisions apply 

for testing snowmobiles? 

* * * * * 

(a) * * * 

(1) For discrete-mode testing, sample 

emissions separately for each mode, 

then calculate an average emission level 

for the whole cycle using the weighting 

factors specified for each mode. In each 

mode, operate the engine for at least 5 

minutes, then sample emissions for at 

least 1 minute. Calculate cycle statistics 

for each mode and compare with the 

specified values in 40 CFR 1065.514 to 

confirm that the test is valid. 

(2) For ramped-modal testing, start 

sampling at the beginning of the first 

mode and continue sampling until the 

end of the last mode. Calculate 

emissions and cycle statistics the same 

as for transient testing as specified in 40 

CFR part 1065, subpart G. 

* * * * * 

Subpart G—[Amended] 

121. Section 1051.605 is amended by 

revising paragraph (d)(7)(ii) to read as 

follows: 

§ 1051.605 What provisions apply to 

engines already certified under the motorvehicle program or the Large Spark-ignition 

program? 

* * * * * 

(d) * * * 

(7) * * * 

(ii) List the engine or vehicle models 

you expect to produce under this 

exemption in the coming year and 

describe your basis for meeting the sales 

restrictions of paragraph (d)(3) of this 

section. 

* * * * * 

122. Section 1051.610 is amended by 

revising paragraphs (d)(7)(ii) and (g) to 

read as follows: 

§ 1051.610 What provisions apply to 

vehicles already certified under the motorvehicle program? 

* * * * * 

(d) * * * 

(7) * * * 

(ii) List the vehicle models you expect 

to produce under this exemption in the 

coming year and describe your basis for 

meeting the sales restrictions of 

paragraph (d)(3) of this section. 

* * * * * 

(g) Participation in averaging, banking 

and trading. Vehicles adapted for 

recreational use under this section may 

not generate or use emission credits 

under this part 1051. These vehicles 

may generate credits under the ABT 

provisions in 40 CFR part 86. These 

vehicles must use emission credits 

under 40 CFR part 86 if they are 

certified to an FEL that exceeds an 

emission standard that applies. 

123. Section 1051.635 is amended by 

revising paragraph (a) to read as follows: 

§ 1051.635 What provisions apply to new 

manufacturers that are small businesses? 

(a) If you are a small business (as 

defined by the Small Business 

Administration at 13 CFR 121.201) that 

manufactures recreational vehicles, but 

does not otherwise qualify for the smallvolume manufacturer provisions of this 

part, you may ask us to designate you 

to be a small-volume manufacturer. You 

may do this whether you began 

manufacturing recreational vehicles 

before, during, or after 2002. 

* * * * * 

124. A new § 1051.650 is added to 

read as follows: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28307 

§ 1051.650 What special provisions apply 

for converting a vehicle to use an alternate 

fuel? 

(a) Converting a certified new vehicle 

to run on a different fuel violates 40 

CFR 1068.101(a)(1) if the modified 

vehicle is not covered by a certificate of 

conformity. 

(b) Converting a certified vehicle that 

is not new to run on a different fuel 

violates 40 CFR 1068.101(b)(1) if the 

modified vehicle is not covered by a 

certificate of conformity. We may 

specify alternate certification provisions 

consistent with the requirements of this 

part. 

Subpart H—[Amended] 

125. Section 1051.701 is amended by 

revising paragraph (a) and adding 

paragraph (h) to read as follows: 

§ 1051.701 General provisions. 

(a) You may average, bank, and trade 

emission credits for purposes of 

certification as described in this subpart 

to show compliance with the standards 

of this part. To do this you must certify 

your engines to Family Emission Limits 

(FELs) and show that your average 

emission levels for all your engine 

families together are below the emission 

standards in subpart B of this part, or 

that you have sufficient credits to offset 

a credit deficit for the model year (as 

calculated in § 1051.720). 

* * * * * 

(h) Families that use emission credits 

for one pollutant may not generate 

positive emission credits for another 

pollutant. 

126. Section 1051.720 is amended by 

revising paragraph (a)(2) to read as 

follows: 

§ 1051.720 How do I calculate my average 

emission level or emission credits? 

(a) * * * 

(2) For vehicles that have standards 

expressed as g/kW-hr and a useful life 

in kilometers, convert the useful life to 

kW-hr based on the maximum power 

output observed over the emission test 

and an assumed vehicle speed of 30 km/ 

hr as follows: UL (kW-hr) = UL (km) × 

Maximum Engine Power (kW) ÷ 30 km/ 

hr. (Note: It is not necessary to include 

a load factor, since credit exchange is 

not allowed between vehicles certified 

to g/kW-hr standards and vehicles 

certified to g/km standards.) 

* * * * * 

127. Section 1051.730 is amended by 

revising paragraphs (b)(4) and (b)(5) to 

read as follows: 

§ 1051.730 What ABT reports must I send 

to EPA? 

* * * * * 

(b) * * * 

(4) The projected and actual 

production volumes for the model year 

with a point of retail sale in the United 

States, as described in § 1051.701(d). If 

you changed an FEL during the model 

year, identify the actual production 

volume associated with each FEL. 

(5) For vehicles that have standards 

expressed as g/kW-hr, maximum engine 

power for each vehicle configuration, 

and the production-weighted average 

engine power for the engine family. 

* * * * * 

128. Section 1051.735 is amended by 

revising paragraph (b) to read as follows: 

§ 1051.735 What records must I keep? 

* * * * * 

(b) Keep the records required by this 

section for at least eight years after the 

due date for the end-of-year report. You 

may not use emission credits on any 

engines if you do not keep all the 

records required under this section. You 

must therefore keep these records to 

continue to bank valid credits. Store 

these records in any format and on any 

media, as long as you can promptly 

send us organized, written records in 

English if we ask for them. You must 

keep these records readily available. We 

may review them at any time. 

* * * * * 

Subpart I—[Amended] 

129. Section 1051.801 is amended as 

follows: 

a. By removing the definition for 

‘‘Maximum test power’’. 

b. By revising the definitions for 

‘‘Designated Compliance Officer’’, 

‘‘Emission-control system’’, ‘‘Maximum 

engine power’’, ‘‘Nonmethane 

hydrocarbon’’, ‘‘Official emission 

result’’, ‘‘Recreational’’, and ‘‘Total 

hydrocarbon equivalent’’. 

c. By revising paragraphs (1)(ii) and 

(3) of the definition for ‘‘Model year’’

and paragraphs (1) and (3) of the 

definition for ‘‘New’’. 

d. By adding paragraph (5)(iii) to the 

definition for ‘‘Model year’’. 

e. By adding a definition for ‘‘Lowpermeability material’’. 

§ 1051.801 What definitions apply to this 

part? 

* * * * * 

Designated Compliance Officer means 

one of the following things: 

(1) For snowmobiles, Designated 

Compliance Officer means the Manager, 

Heavy-Duty and Nonroad Engine Group 

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

Agency, 1200 Pennsylvania Ave., NW., 

Washington, DC 20460. 

(2) For all other vehicles, Designated 

Compliance Officer means the Manager, 

Light-Duty Engine Group, U.S. 

Environmental Protection Agency, 2000 

Traverwood Drive, Ann Arbor, MI 

48105. 

* * * * * 

Emission-control system means any 

device, system, or element of design that 

controls or reduces the emissions of 

regulated pollutants from an engine. 

* * * * * 

Low-permeability material has the 

meaning given in 40 CFR 1060.801. 

* * * * * 

Maximum engine power has the 

meaning given in 40 CFR 90.3 for 2010 

and earlier model years and in 

§ 1051.140 for 2011 and later model 

years. 

* * * * * 

Model year means one of the 

following things: 

(1) * * * 

(ii) Your annual new model 

production period if it is different than 

the calendar year. This must include 

January 1 of the calendar year for which 

the model year is named. It may not 

begin before January 2 of the previous 

calendar year and it must end by 

December 31 of the named calendar 

year. For seasonal production periods 

not including January 1, model year 

means the calendar year in which the 

production occurs, unless you choose to 

certify the applicable emission family 

with the following model year. For 

example, if your production period is 

June 1, 2010 through November 30, 

2010, your model year would be 2010 

unless you choose to certify the 

emission family for model year 2011. 

* * * * * 

(3) For a nonroad engine that has been 

previously placed into service in an 

application covered by 40 CFR part 90, 

91, 1048, or 1054, where that engine is 

installed in a piece of equipment that is 

covered by this part 1051, model year 

means the calendar year in which the 

engine was originally produced (see 

definition of ‘‘new,’’ paragraph (3)). 

* * * * * 

(5) * * * 

(iii) For imported engines described 

in paragraph (5)(iii) of the definition of 

‘‘new,’’ model year means the calendar 

year in which the importation occurs. 

* * * * * 

New means relating to any of the 

following things: 

(1) A freshly manufactured vehicle for 

which the ultimate purchaser has never 

received the equitable or legal title. This 

kind of vehicle might commonly be 

thought of as ‘‘brand new.’’ In the case 

of this paragraph (1), the vehicle is new 

from the time it is produced until the 


sroberts on PROD1PC70 with PROPOSALS
28308 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

ultimate purchaser receives the title or 

the product is placed into service, 

whichever comes first. 

* * * * * 

(3) A nonroad engine that has been 

previously placed into service in an 

application covered by 40 CFR part 90, 

91, 1048, or 1054, where that engine is 

installed in a piece of equipment that is 

covered by this part 1051. The engine is 

no longer new when it is placed into 

service in a recreational vehicle covered 

by this part 1051. For example, this 

would apply to a marine propulsion 

engine that is no longer used in a 

marine vessel. 

* * * * * 

Nonmethane hydrocarbon has the 

meaning given in 40 CFR 1065.1001. 

* * * * * 

Official emission result means the 

measured emission rate for an emissiondata vehicle on a given duty cycle 

before the application of any 

deterioration factor. 

* * * * * 

Recreational means, for purposes of 

this part, relating to snowmobiles, allterrain vehicles, off-highway 

motorcycles, and other vehicles that we 

regulate under this part. Note that 40 

CFR parts 90 and 1054 apply to engines 

used in other recreational vehicles. 

* * * * * 

Total hydrocarbon equivalent has the 

meaning given in 40 CFR 1065.1001. 

* * * * * 

130. Section 1051.810 is amended by 

revising paragraph (a) to read as follows: 

§ 1051.810 What materials does this part 

reference? 

* * * * * 

(a) ASTM material. Table 1 of this 

section lists material from the American 

Society for Testing and Materials that 

we have incorporated by reference. The 

first column lists the number and name 

of the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

American Society for Testing and 

Materials, 100 Barr Harbor Dr., P.O. Box 

C700, West Conshohocken, PA 19428 or 

www.astm.com. Table 1 follows: 

TABLE 1 OF § 1051.810.—ASTM MATERIALS

Document number and name Part 1051 

reference 

ASTM D471–98, Standard Test Method for Rubber Property—Effect of Liquids .............................................................................. 1051.501 

* * * * * 

131. A new § 1051.825 is added to 

read as follows: 

§ 1051.825 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for vehicles regulated under this part: 

(a) We specify the following 

requirements related to certification in 

this part 1051: 

(1) In §§ 1051.20 and 1051.25 we 

describe special provisions for 

manufacturers to certify recreational 

engines instead of vehicles. 

(2) [Reserved] 

(3) In § 1051.145 we include various 

reporting and recordkeeping 

requirements related to interim 

provisions. 

(4) In subpart C of this part we 

identify a wide range of information 

required to certify vehicles. 

(5) In §§ 1051.345 and 1051.350 we 

specify certain records related to 

production-line testing. 

(6) [Reserved] 

(7) In § 1051.501 we specify 

information needs for establishing 

various changes to published vehiclebased test procedures. 

(8) In subpart G of this part we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various special compliance 

provisions. 

(9) In §§ 1051.725, 1051.730, and 

1051.735 we specify certain records 

related to averaging, banking, and 

trading. 

(b) [Reserved] 

(c) We specify the following 

requirements related to testing in 40 

CFR part 1065: 

(1) In 40 CFR 1065.2 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR 1065.10 and 1065.12 we 

specify information needs for 

establishing various changes to 

published engine-based test procedures. 

(3) In 40 CFR 1065.25 we establish 

basic guidelines for storing test 

information. 

(4) In 40 CFR 1065.695 we identify 

data that may be appropriate for 

collecting during testing of in-use 

engines or vehicles using portable 

analyzers. 

(d) We specify the following 

requirements related to the general 

compliance provisions in 40 CFR part 

1068: 

(1) In 40 CFR 1068.5 we establish a 

process for evaluating good engineering 

judgment related to testing and 

certification. 

(2) In 40 CFR 1068.25 we describe 

general provisions related to sending 

and keeping information. 

(3) In 40 CFR 1068.27 we require 

manufacturers to make engines or 

vehicles available for our testing or 

inspection if we make such a request. 

(4) In 40 CFR 1068.105 we require 

manufacturers to keep certain records 

related to duplicate labels from engine 

manufacturers. 

(5) In 40 CFR 1068.120 we specify 

recordkeeping related to rebuilding 

engines. 

(6) In 40 CFR part 1068, subpart C, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various exemptions. 

(7) In 40 CFR part 1068, subpart D, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to importing engines or vehicles. 

(8) In 40 CFR 1068.450 and 1068.455 

we specify certain records related to 

testing production-line engines in a 

selective enforcement audit. 

(9) In 40 CFR 1068.501 we specify 

certain records related to investigating 

and reporting emission-related defects. 

(10) In 40 CFR 1068.525 and 1068.530 

we specify certain records related to 

recalling nonconforming vehicles. 

132. A new part 1054 is added to 

subchapter U of chapter I to read as 

follows: 

PART 1054—CONTROL OF EMISSIONS 

FROM NEW, SMALL NONROAD 

SPARK-IGNITION ENGINES AND 

EQUIPMENT 

Subpart A—Overview and Applicability 

Sec. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28309 

1054.1 Does this part apply for my engines 

and equipment? 

1054.2 Who is responsible for compliance? 

1054.5 Which nonroad engines are 

excluded from this part’s requirements? 

1054.10 How is this part organized? 

1054.15 Do any other regulation parts apply 

to me? 

1054.20 What requirements apply to my 

equipment? 

Subpart B—Emission Standards and 

Related Requirements 

1054.101 What exhaust emission standards 

and requirements must my engines 

meet? 

1054.103 What exhaust emission standards 

must my handheld engines meet? 

1054.105 What exhaust emission standards 

must my nonhandheld engines meet? 

1054.107 What is the useful life period for 

meeting exhaust emission standards? 

1054.110 What evaporative emission 

standards must my equipment meet? 

1054.115 What other requirements apply? 

1054.120 What emission-related warranty 

requirements apply to me? 

1054.125 What maintenance instructions 

must I give to buyers? 

1054.130 What installation instructions 

must I give to equipment manufacturers? 

1054.135 How must I label and identify the 

engines I produce? 

1054.136 How must I permanently label the 

equipment I produce? 

1054.140 What is my engine’s maximum 

engine power and displacement? 

1054.145 Are there interim provisions that 

apply only for a limited time? 

Subpart C—Certifying Emission Families 

1054.201 What are the general requirements 

for obtaining a certificate of conformity? 

1054.205 What must I include in my 

application? 

1054.210 May I get preliminary approval 

before I complete my application? 

1054.220 How do I amend the maintenance 

instructions in my application? 

1054.225 How do I amend my application 

for certification to include new or 

modified engines or fuel systems or 

change an FEL? 

1054.230 How do I select emission 

families? 

1054.235 What exhaust emission testing 

must I perform for my application for a 

certificate of conformity? 

1054.240 How do I demonstrate that my 

emission family complies with exhaust 

emission standards? 

1054.245 How do I determine deterioration 

factors from exhaust durability testing? 

1054.250 What records must I keep and 

what reports must I send to EPA? 

1054.255 What decisions may EPA make 

regarding my certificate of conformity? 

Subpart D—Production-Line Testing 

1054.300 Applicability. 

1054.301 When must I test my productionline engines? 

1054.305 How must I prepare and test my 

production-line engines? 

1054.310 How must I select engines for 

production-line testing? 

1054.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

1054.320 What happens if one of my 

production-line engines fails to meet 

emission standards? 

1054.325 What happens if an engine family 

fails the production-line testing 

requirements? 

1054.330 May I sell engines from an engine 

family with a suspended certificate of 

conformity? 

1054.335 How do I ask EPA to reinstate my 

suspended certificate? 

1054.340 When may EPA revoke my 

certificate under this subpart and how 

may I sell these engines again? 

1054.345 What production-line testing 

records must I send to EPA? 

1054.350 What records must I keep? 

Subpart E—In-Use Testing 

1054.401 General provisions. 

Subpart F—Test Procedures 

1054.501 How do I run a valid emission 

test? 

1054.505 How do I test engines? 

1054.520 What testing must I perform to 

establish deterioration factors? 

Subpart G—Special Compliance Provisions 

1054.601 What compliance provisions 

apply to these engines? 

1054.610 What is the exemption for 

delegated final assembly? 

1054.612 What special provisions apply for 

equipment manufacturers modifying 

certified engines? 

1054.615 What is the exemption for engines 

certified to standards for Large SI 

engines? 

1054.620 What are the provisions for 

exempting engines used solely for 

competition? 

1054.625 What requirements apply under 

the Transition Program for Equipment 

Manufacturers? 

1054.626 What special provisions apply to 

equipment imported under the 

Transition Program for Equipment 

Manufacturers? 

1054.627 How does the Transition Program 

for Equipment Manufacturers relate to 

evaporative emissions? 

1054.630 What provisions apply for 

importation of individual items for 

personal use? 

1054.635 What special provisions apply for 

small-volume engine and equipment 

manufacturers? 

1054.640 What special provisions apply to 

branded engines? 

1054.645 What special provisions apply for 

converting an engine to use an alternate 

fuel? 

1054.650 What special provisions apply for 

adding or changing governors? 

1054.655 What special provisions apply to 

installing and removing altitude kits? 

1054.660 What are the provisions for 

exempting emergency rescue equipment? 

1054.685 What are my recall 

responsibilities? 

1054.690 What are the bond requirements 

for importing certified engines and 

equipment? 

1054.695 What restrictions apply to 

assigning a model year to imported 

engines and equipment? 

Subpart H—Averaging, Banking, and 

Trading for Certification 

1054.701 General provisions. 

1054.705 How do I generate and calculate 

exhaust emission credits? 

1054.706 How do I generate and calculate 

evaporative emission credits? 

1054.710 How do I average emission 

credits? 

1054.715 How do I bank emission credits? 

1054.720 How do I trade emission credits? 

1054.725 What must I include in my 

application for certification? 

1054.730 What ABT reports must I send to 

EPA? 

1054.735 What records must I keep? 

1054.740 What special provisions apply for 

generating and using emission credits? 

1054.745 What can happen if I do not 

comply with the provisions of this 

subpart? 

Subpart I—Definitions and Other Reference 

Information 

1054.801 What definitions apply to this 

part? 

1054.805 What symbols, acronyms, and 

abbreviations does this part use? 

1054.810 What materials does this part 

reference? 

1054.815 What provisions apply to 

confidential information? 

1054.820 How do I request a hearing? 

1054.825 What reporting and recordkeeping 

requirements apply under this part? 

Appendix I to Part 1054—Summary of 

Previous Emission Standards 

Appendix II to Part 1054—Duty Cycles for 

Laboratory Testing 

Appendix III to Part 1054—High-Altitude 

Counties 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—Overview and Applicability 

§ 1054.1 Does this part apply for my 

engines and equipment? 

(a) Except as provided in § 1054.5, the 

regulations in this part 1054 apply as 

follows: 

(1) The requirements of this part 

related to exhaust emissions apply to 

new, spark-ignition engines with 

maximum engine power at or below 19 

kW. This includes auxiliary marine 

spark-ignition engines. 

(2) The requirements of this part 

related to evaporative emissions apply 

as specified in 40 CFR part 1054.110 to 

fuel systems used with engines subject 

to exhaust emission standards in this 

part if the engines use a volatile liquid 

fuel (such as gasoline). 

(3) This part 1054 applies starting 

with the model years noted in the 

following table: 


sroberts on PROD1PC70 with PROPOSALS
28310 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE 1 OF § 1054.1.—ART 1054 

APPLICABILITY BY MODEL YEAR

Engine type Engine displacement 

Model 

year 

Handheld ................... all ................ 2010 

Nonhandheld ............. displacement 

< 225 cc.

2012 

Nonhandheld ............. displacement 

≥ 225 cc.

2011 

(4) This part 1054 applies for other 

spark-ignition engines as follows: 

(i) The provisions of paragraph (c) of 

this section apply for the applicable 

model years shown in Table 1 of this 

section. 

(ii) The provisions of §§ 1054.620 and 

1054.801 apply for engines used solely 

for competition beginning January 1, 

2009. 

(iii) The provisions of §§ 1054.660 

and 1054.801 apply for engines used in 

emergency rescue equipment beginning 

January 1, 2010. 

(5) We specify provisions in 

§ 1054.145(e) and (f) and in § 1054.740 

that allow for meeting the requirements 

of this part before the dates shown in 

Table 1 of this section. Engines, fuelsystem components, or equipment 

certified to these standards are subject 

to all the requirements of this part as if 

these optional standards were 

mandatory. 

(b) Although the definition of nonroad 

engine in 40 CFR 1068.30 excludes 

certain engines used in stationary 

applications, stationary engines are 

required under 40 CFR part 60 to 

comply with this part starting with the 

model years shown in Table 1 of this 

section. 

(c) See 40 CFR part 90 for 

requirements that apply to engines not 

yet subject to the requirements of this 

part 1054. 

(d) In certain cases, the regulations in 

this part 1054 apply to engines with 

maximum engine power above 19 kW 

that would otherwise be covered by 40 

CFR part 1048 or 1051. See 40 CFR 

1048.615 and 1051.145(a)(3) for 

provisions related to these allowances. 

§ 1054.2 Who is responsible for 

compliance? 

The requirements and prohibitions of 

this part apply to manufacturers of 

engines and fuel-system components as 

described in § 1054.1. The requirements 

of this part are generally addressed to 

manufacturers subject to this part’s 

requirements. The term ‘‘you’’ generally 

means the certifying manufacturer. For 

provisions related to exhaust emissions, 

this generally means the engine 

manufacturer, especially for issues 

related to certification (including 

production-line testing, reporting, etc.). 

For provisions related to certification 

with respect to evaporative emissions, 

this generally means the equipment 

manufacturer or fuel-system component 

manufacturer. Equipment manufacturers 

must meet applicable requirements as 

described in § 1054.20. 

§ 1054.5 Which nonroad engines are 

excluded from this part’s requirements? 

This part does not apply to the 

following nonroad engines: 

(a) Engines that are certified to meet 

the requirements of 40 CFR part 1051 

(for example, engines used in 

snowmobiles and all-terrain vehicles). 

Engines that are otherwise subject to 40 

CFR part 1051 but not required to be 

certified (such as engines exempted 

under 40 CFR part 1051) are also 

excluded from this part 1054, unless the 

regulations in 40 CFR part 1051 

specifically require them to comply 

with the requirements of this part 1054. 

(b) Engines that are certified to meet 

the requirements of 40 CFR part 1048, 

subject to the provisions of § 1054.615. 

(c) Propulsion marine engines. See 40 

CFR parts 91 and 1045. Note that the 

evaporative emission standards of this 

part also do not apply with respect to 

auxiliary marine engines as described in 

§ 1054.110. 

(d) Engines used in reduced-scale 

models of vehicles that are not capable 

of transporting a person. 

§ 1054.10 How is this part organized? 

This part 1054 is divided into the 

following subparts: 

(a) Subpart A of this part defines the 

applicability of this part 1054 and gives 

an overview of regulatory requirements. 

(b) Subpart B of this part describes the 

emission standards and other 

requirements that must be met to certify 

engines under this part. Note that 

§ 1054.145 discusses certain interim 

requirements and compliance 

provisions that apply only for a limited 

time. 

(c) Subpart C of this part describes 

how to apply for a certificate of 

conformity. 

(d) Subpart D of this part describes 

general provisions for testing 

production-line engines. 

(e) Subpart E of this part describes 

general provisions for testing in-use 

engines. 

(f) Subpart F of this part describes 

how to test your engines (including 

references to other parts of the Code of 

Federal Regulations). 

(g) Subpart G of this part and 40 CFR 

part 1068 describe requirements, 

prohibitions, and other provisions that 

apply to engine manufacturers, 

equipment manufacturers, owners, 

operators, rebuilders, and all others. 

(h) Subpart H of this part describes 

how you may generate and use exhaust 

and evaporative emission credits to 

certify your engines and equipment. 

(i) Subpart I of this part contains 

definitions and other reference 

information. 

§ 1054.15 Do any other regulation parts 

apply to me? 

(a) Part 1060 of this chapter describes 

standards and procedures that apply for 

evaporative emissions from engines 

fueled by gasoline or other volatile 

liquid fuels and the associated fuel 

systems. See § 1054.110 for information 

about how that part applies. 

(b) Part 1065 of this chapter describes 

procedures and equipment 

specifications for testing engines. 

Subpart F of this part 1054 describes 

how to apply the provisions of part 1065 

of this chapter to determine whether 

engines meet the emission standards in 

this part. 

(c) The requirements and prohibitions 

of part 1068 of this chapter apply to 

everyone, including anyone who 

manufactures, imports, installs, owns, 

operates, or rebuilds any of the engines 

subject to this part 1054, or equipment 

containing these engines. Part 1068 of 

this chapter describes general 

provisions, including these seven areas: 

(1) Prohibited acts and penalties for 

engine manufacturers, equipment 

manufacturers, and others. 

(2) Rebuilding and other aftermarket 

changes. 

(3) Exclusions and exemptions for 

certain engines. 

(4) Importing engines. 

(5) Selective enforcement audits of 

your production. 

(6) Defect reporting and recall. 

(7) Procedures for hearings. 

(d) Other parts of this chapter apply 

if referenced in this part. 

§ 1054.20 What requirements apply to my 

equipment? 

(a) If you manufacture equipment 

using engines certified under this part, 

your equipment must meet all 

applicable emission standards with the 

engine and fuel system installed. 

(b) Except as specified in paragraph (f) 

of this section, all equipment subject to 

the exhaust standards of this part must 

meet the evaporative emission standards 

of 40 CFR part 1060, as described in 

§ 1054.110. 

(c) Except as specified in paragraph (f) 

of this section, identify and label 

equipment you produce under this 

section consistent with the requirements 

of § 1054.135. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28311 

(d) You may need to certify your 

equipment or fuel systems as described 

in 40 CFR 1060.1 and 1060.601. 

(e) You must follow all emissionrelated installation instructions from the 

certifying manufacturers as described in 

§ 1054.130, 40 CFR 1060.130, and 40 

CFR 1068.105. If you do not follow the 

installation instructions, we may 

consider your equipment to be not 

covered by the certificates of 

conformity. Introduction of such 

equipment into U.S. commerce violates 

40 CFR 1068.101. 

(f) Motor vehicles and marine vessels 

may contain engines subject to the 

exhaust emission standards in this part 

1054. Evaporative emission standards 

apply to these products as follows: 

(1) Marine vessels using sparkignition engines are subject to the 

requirements of 40 CFR part 1045. The 

vessels are not required to comply with 

the evaporative emission standards and 

related requirements of this part 1054. 

(2) Motor vehicles are subject to the 

requirements of 40 CFR part 86. They 

are not required to comply with the 

evaporative emission standards and 

related requirements of this part 1054. 

Subpart B—Emission Standards and 

Related Requirements 

§ 1054.101 What exhaust emission 

standards and requirements must my 

engines meet? 

(a) You must show that your engines 

meet the following exhaust emission 

standards, except as specified in 

paragraphs (b) through (d) of this 

section: 

(1) Handheld engines must meet the 

exhaust emission standards in 

§ 1054.103. 

(2) Nonhandheld engines must meet 

the exhaust emission standards in 

§ 1054.105. 

(3) All engines must meet the 

requirements in § 1054.115. 

(b) Emission standards regulating HC 

and NOX exhaust emissions are optional 

for wintertime engines. However, if you 

certify an emission family to such 

standards, those engines are subject to 

all the requirements of this part as if 

these optional standards were 

mandatory. 

(c) Any engines certified to the 

nonhandheld emission standards in 

§ 1054.105 may be used in either 

handheld or nonhandheld equipment. 

Engines at or above 80 cc certified to the 

handheld emission standards in 

§ 1054.103 may not be used in 

nonhandheld equipment. For purposes 

of the requirements of this part, engines 

below 80 cc are considered handheld 

engines but may be installed in either 

handheld or nonhandheld equipment. 

See § 1054.701(c) for special provisions 

related to emission credits for engine 

families with displacement below 80 cc 

where those engines are installed in 

nonhandheld equipment. 

(d) Two-stroke snowthrower engines 

may meet exhaust emission standards 

that apply to handheld engines with the 

same engine displacement. 

(e) It is important that you read 

§ 1054.145 to determine if there are 

other interim requirements or interim 

compliance provisions that apply for a 

limited time. 

§ 1054.103 What exhaust emission 

standards must my handheld engines 

meet? 

(a) Emission standards. Exhaust 

emissions from your handheld engines 

may not exceed the emission standards 

in Table 1 of this section. Measure 

emissions using the applicable steadystate test procedures described in 

subpart F of this part. 

TABLE 1 OF § 1054.103.—PHASE 3 

EMISSION STANDARDS FOR

HANDHELD ENGINES (G/KW-HR) 

Engine displacement 

class 

HC+NOX CO 

Class III ..... 50 805 

Class IV .... 50 805 

Class V ..... 72 603 

(b) Averaging, banking, and trading. 

You may generate or use emission 

credits under the averaging, banking, 

and trading (ABT) program for HC+NOX

emissions as described in subpart H of 

this part. To generate or use emission 

credits, you must specify a family 

emission limit for each engine family 

you include in the ABT program. These 

family emission limits serve as the 

emission standards for the engine family 

with respect to all required testing 

instead of the standards specified in this 

section. An engine family meets 

emission standards even if its family 

emission limit is higher than the 

standard, as long as you show that the 

whole averaging set of applicable engine 

families meets the emission standards 

using emission credits and the engines 

within the family meet the family 

emission limit. The following are the 

maximum values you may specify for 

family emission limits: 

(1) 336 g/kW-hr for Class III engines. 

(2) 275 g/kW-hr for Class IV engines. 

(3) 186 g/kW-hr for Class V engines. 

(c) Fuel types. The exhaust emission 

standards in this section apply for 

engines using the fuel type on which the 

engines in the emission family are 

designed to operate. You must meet the 

numerical emission standards for 

hydrocarbons in this section based on 

the following types of hydrocarbon 

emissions for engines powered by the 

following fuels: 

(1) Alcohol-fueled engines: THCE 

emissions. 

(2) Natural gas-fueled engines: NMHC 

emissions. 

(3) Other engines: THC emissions. 

(d) Useful life. Your engines must 

meet the exhaust emission standards in 

paragraph (a) of this section over their 

full useful life as described in 

§ 1054.107. 

(e) Applicability for testing. The 

emission standards in this subpart apply 

to all testing, including certification, 

production-line, and in-use testing. 

§ 1054.105 What exhaust emission 

standards must my nonhandheld engines 

meet? 

(a) Emission standards. Exhaust 

emissions from your engines may not 

exceed the emission standards in this 

paragraph (a). Measure emissions using 

the applicable steady-state test 

procedures described in subpart F of 

this part. 

TABLE 1 OF § 1054.105—PHASE 3 EMISSION STANDARDS FOR NONHANDHELD ENGINES (G/KW-HR) 

Engine displacement class HC+NOX Primary CO 

standard 

CO standard 

for marine 

generator engines 

Class I .......................................................................................................................................... 10.0 610 5.0 

Class II ......................................................................................................................................... 8.0 610 5.0 


sroberts on PROD1PC70 with PROPOSALS
28312 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(b) Averaging, banking, and trading. 

You may generate or use emission 

credits under the averaging, banking, 

and trading (ABT) program for HC+NOX

emissions as described in subpart H of 

this part. To generate or use emission 

credits, you must specify a family 

emission limit for each engine family 

you include in the ABT program. These 

family emission limits serve as the 

emission standards for the engine family 

with respect to all required testing 

instead of the standards specified in this 

section. An engine family meets 

emission standards even if its family 

emission limit is higher than the 

standard, as long as you show that the 

whole averaging set of applicable engine 

families meets the emission standards 

using emission credits, and the engines 

within the family meet the family 

emission limit. You may not specify a 

family emission limit that exceeds the 

Phase 2 standards specified in 40 CFR 

90.103 and summarized in Appendix I 

of this part. 

(c) Fuel types. The exhaust emission 

standards in this section apply for 

engines using the fuel type on which the 

engines in the emission family are 

designed to operate. You must meet the 

numerical emission standards for 

hydrocarbons in this section based on 

the following types of hydrocarbon 

emissions for engines powered by the 

following fuels: 

(1) Alcohol-fueled engines: THCE 

emissions. 

(2) Natural gas-fueled engines: NMHC 

emissions. 

(3) Other engines: THC emissions. 

(d) Useful life. Your engines must 

meet the exhaust emission standards in 

paragraph (a) of this section over their 

full useful life as described in 

§ 1054.107. 

(e) Applicability for testing. The 

emission standards in this subpart apply 

to all testing, including certification, 

production-line, and in-use testing. 

§ 1054.107 What is the useful life period 

for meeting exhaust emission standards? 

This section describes an engine 

family’s useful life, which is the period 

during which a new engine is required 

to comply with all applicable emission 

standards. 

(a) Determine the useful life period for 

exhaust requirements as follows: 

(1) Except as specified in paragraphs 

(a)(2) and (3) of this section, the useful 

life period for exhaust requirements is 

the number of engine operating hours 

from Table 1 of this section that most 

closely matches the expected median inuse life of your engines. The median inuse life of your engine is the shorter of 

the following values: 

(i) The median in-use life of 

equipment into which the engine is 

expected to be installed. 

(ii) The median in-use life of the 

engine without being scrapped or 

rebuilt. 

TABLE 1 TO § 1054.107.—NOMINAL

USEFUL LIFE PERIODS

Class or category Useful life hour value 

Handheld ................... 50, 125, or 300. 

Class I ....................... 125, 250, or 500. 

Class II ...................... 250, 500, or 1,000. 

(2) You may select a longer useful life 

for nonhandheld engines than that 

specified in paragraph (a)(1) of this 

section in 100-hour increments not to 

exceed 3,000 hours for Class I engines 

or 5,000 hours for Class II engines. For 

engine families generating emission 

credits, you may do this only with our 

approval. 

(3) The minimum useful life period 

for engines with maximum engine 

power above 19 kW is 1,000 hours (see 

§ 1054.1(d)). 

(4) Keep any available information to 

support your selection and make it 

available to us if we ask for it. We may 

require you to certify to a different 

useful life value from the table if we 

determine that the selected useful life 

value is not justified by the data. We 

may consider any relevant information, 

including your product warranty 

statements and marketing materials 

regarding engine life, in making this 

determination. We may void your 

certificate if we determine that you 

intentionally selected an incorrect 

value. Support your selection based on 

any of the following information: 

(i) Surveys of the life spans of the 

equipment in which the subject engines 

are installed. 

(ii) Engineering evaluations of field 

aged engines to ascertain when engine 

performance deteriorates to the point 

where usefulness and/or reliability is 

impacted to a degree sufficient to 

necessitate overhaul or replacement. 

(iii) Failure reports from engine 

customers. 

(iv) Engineering evaluations of the 

durability, in hours, of specific engine 

technologies, engine materials, or 

engine designs. 

§ 1054.110 What evaporative emission 

standards must my equipment meet? 

Except as specified in § 1054.20, new 

equipment using engines that run on a 

volatile liquid fuel (such as gasoline) 

must meet the evaporative emission 

requirements of 40 CFR part 1060 over 

a useful life of five years. The 

requirements of 40 CFR part 1060 that 

apply are considered also to be 

requirements of this part 1054. These 

standards apply starting in the 2011 

model year for equipment using Class II 

engines and in the 2012 model year for 

equipment using Class I engines. These 

standards apply for handheld 

equipment as specified in this section. 

Note that 40 CFR 1060.240 allows you 

to use design-based certification instead 

of generating new emission data. Marine 

vessels using auxiliary marine engines 

subject to this part must meet the 

evaporative emission requirements in 40 

CFR 1045.107 instead of the 

requirements in this section. 

(a) Fuel line permeation. Nonmetal 

fuel lines must meet the permeation 

requirements for EPA NRFL or EPA 

CWFL fuel lines as specified in 40 CFR 

1060.102. These requirements apply for 

handheld equipment starting in the 

2012 model year, except that they apply 

starting in the 2013 model year for 

emission families involving coldweather equipment and all smallvolume emission families. Handheld 

equipment manufacturers may generate 

or use emission credits to show 

compliance with the requirements of 

this paragraph (a) under the averaging, 

banking, and trading program described 

in subpart H of this part. Metal fuel 

lines are not subject to emission 

standards. 

(b) Tank permeation. Fuel tanks must 

meet the permeation requirements 

specified in 40 CFR 1060.103. These 

requirements apply for handheld 

equipment starting in the 2010 model 

year, except that they apply starting in 

the 2011 model year for structurally 

integrated nylon fuel tanks and in the 

2013 model year for all small-volume 

emission families. (Note: 40 CFR 90.129 

specifies emission standards for 2009 

model year handheld engines and 

equipment.) Equipment manufacturers 

may generate or use emission credits to 

show compliance with the requirements 

of this paragraph (b) under the 

averaging, banking, and trading program 

as described in subpart H of this part. 

Starting in the 2014 model year for Class 

II equipment and in the 2015 model 

year for Class I and handheld 

equipment, the following caps on family 

emission limits apply: 

(1) Except as specified in paragraphs 

(b)(2) and (3) of this section, you may 

not specify a family emission limit that 

exceeds 5.0 g/m2/day for testing at a 

nominal temperature of 28 °C, or 

8.3 g/m2/day for testing at a nominal 

temperature of 40 °C. 

(2) For structurally integrated nylon 

fuel tanks, you may not specify a family 

emission limit that exceeds 3.0 g/m2/ 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28313 

day for testing at a nominal temperature 

of 28 °C, or 5.0 g/m2/day for testing at 

a nominal temperature of 40 °C. 

(3) For small-volume emission 

families, you may not specify a family 

emission limit that exceeds 8.0 g/m2/ 

day for testing at a nominal temperature 

of 28 °C, or 13.3 g/m2/day for testing at 

a nominal temperature of 40 °C. This 

also applies to structurally integrated 

nylon fuel tanks used in small-volume 

emission families. 

(4) The cap on family emission limits 

does not apply to fuel caps that are 

certified separately to meet permeation 

standards. 

(c) Running loss. Nonhandheld 

equipment must meet the running loss 

requirements specified in 40 CFR 

1060.104. This paragraph (c) does not 

apply with respect to engines below 80 

cc. 

(d) Diffusion emissions. Nonhandheld 

equipment must meet the diffusion 

emission requirements specified in 40 

CFR 1060.105. This paragraph (d) does 

not apply with respect to engines below 

80 cc. 

(e) Other requirements. The 

requirements of 40 CFR 1060.101(e) and 

(f) apply to equipment manufacturers 

even if they do not obtain a certificate. 

§ 1054.115 What other requirements 

apply? 

The following requirements apply 

with respect to engines that are required 

to meet the emission standards of this 

part: 

(a) Crankcase emissions. Crankcase 

emissions may not be discharged 

directly into the ambient atmosphere 

from any engine throughout its useful 

life, except as follows: 

(1) Snowthrower engines may 

discharge crankcase emissions to the 

ambient atmosphere if the emissions are 

added to the exhaust emissions (either 

physically or mathematically) during all 

emission testing. If you take advantage 

of this exception, you must do the 

following things: 

(i) Manufacture the engines so that all 

crankcase emissions can be routed into 

the applicable sampling systems 

specified in 40 CFR part 1065. 

(ii) Account for deterioration in 

crankcase emissions when determining 

exhaust deterioration factors. 

(2) For purposes of this paragraph (a), 

crankcase emissions that are routed to 

the exhaust upstream of exhaust 

aftertreatment during all operation are 

not considered to be discharged directly 

into the ambient atmosphere. 

(b) Adjustable parameters. Engines 

that have adjustable parameters must 

meet all the requirements of this part for 

any adjustment in the physically 

adjustable range. An operating 

parameter is not considered adjustable if 

you permanently seal it or if it is not 

normally accessible using ordinary 

tools. We may require that you set 

adjustable parameters to any 

specification within the adjustable range 

during any testing, including 

certification testing, production-line 

testing, or in-use testing. You may ask 

us limit idle-speed or carburetor 

adjustments to a smaller range than the 

physically adjustable range if you show 

us that the engine will not be adjusted 

outside of this smaller range during inuse operation without significantly 

degrading engine performance. 

(c) Altitude adjustments. Engines 

must meet applicable emission 

standards for valid tests conducted 

under the ambient conditions specified 

in 40 CFR 1065.520. Except as specified 

in § 1054.145(c), engines must meet 

applicable emission standards at 

barometric pressures ranging from 94.0 

to 103.325 kPa in the standard 

configuration. This generally includes 

all altitudes up to about 2,000 feet above 

sea level. You may rely on an altitude 

kit that you specify in your application 

for certification to comply at lower 

pressures. You must identify the 

altitude range for which you expect 

proper engine performance and 

emission control with and without the 

altitude kit in the owners manual; you 

must also state that operating the engine 

with the wrong engine configuration at 

a given altitude may increase its 

emissions and decrease fuel efficiency 

and performance. See § 1054.145(c) for 

special provisions that apply for 

handheld engines. 

(d) Prohibited controls. You may not 

design your engines with emissioncontrol devices, systems, or elements of 

design that cause or contribute to an 

unreasonable risk to public health, 

welfare, or safety while operating. For 

example, this would apply if the engine 

emits a noxious or toxic substance it 

would otherwise not emit that 

contributes to such an unreasonable 

risk. 

(e) Defeat devices. You may not equip 

your engines with a defeat device. A 

defeat device is an auxiliary emission 

control device that reduces the 

effectiveness of emission controls under 

conditions that the engine may 

reasonably be expected to encounter 

during normal operation and use. This 

does not apply for altitude kits installed 

or removed consistent with § 1054.655. 

This also does not apply to auxiliary 

emission control devices you identify in 

your certification application if any of 

the following is true: 

(1) The conditions of concern were 

substantially included in the applicable 

duty-cycle test procedures described in 

subpart F of this part. 

(2) You show your design is necessary 

to prevent engine (or equipment) 

damage or accidents. 

(3) The reduced effectiveness applies 

only to starting the engine. 

§ 1054.120 What emission-related warranty 

requirements apply to me? 

The requirements of this section 

apply to the certifying manufacturer(s). 

See 40 CFR part 1060 for the warranty 

requirements related to evaporative 

emissions. 

(a) General requirements. You must 

warrant to the ultimate purchaser and 

each subsequent purchaser that the new 

engine, including all parts of its 

emission control system, meets two 

conditions: 

(1) It is designed, built, and equipped 

so it conforms at the time of sale to the 

ultimate purchaser with the 

requirements of this part. 

(2) It is free from defects in materials 

and workmanship that may keep it from 

meeting these requirements. 

(b) Warranty period. Your emissionrelated warranty must be valid during 

the periods specified in this paragraph 

(b). You may offer an emission-related 

warranty more generous than we 

require. The emission-related warranty 

for the engine may not be shorter than 

any published warranty you offer 

without charge for the engine. Similarly, 

the emission-related warranty for any 

component may not be shorter than any 

published warranty you offer without 

charge for that component. If an engine 

has no hour meter, we base the warranty 

periods in this paragraph (b) only on the 

engine’s age (in years). The warranty 

period begins when the engine is placed 

into service. The minimum warranty 

periods are as follows: 

(1) The minimum warranty period is 

two years except as allowed under 

paragraph (b)(2) or (3) of this section. 

(2) We may establish a shorter 

warranty period for handheld engines 

subject to severe service in seasonal 

equipment if we determine that these 

engines are likely to operate for a 

number of hours greater than the 

applicable useful life within 24 months. 

You must request this shorter warranty 

period in your application for 

certification or in an earlier submission. 

(3) For engines equipped with hour 

meters, you may deny warranty claims 

for engines that have accumulated a 

number of hours greater than 50 percent 

of the applicable useful life. 

(c) Components covered. The 

emission-related warranty covers all 


sroberts on PROD1PC70 with PROPOSALS
28314 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

components whose failure would 

increase an engine’s emissions of any 

pollutant, including those listed in 40 

CFR part 1068, Appendix I, and those 

from any other system you develop to 

control emissions. The emission-related 

warranty covers these components even 

if another company produces the 

component. Your emission-related 

warranty does not cover components 

whose failure would not increase an 

engine’s emissions of any pollutant. 

(d) Limited applicability. You may 

deny warranty claims under this section 

if the operator caused the problem 

through improper maintenance or use, 

as described in 40 CFR 1068.115. 

(e) Owners manual. Describe in the 

owners manual the emission-related 

warranty provisions from this section 

that apply to the engine. Include 

instructions for obtaining warranty 

service consistent with the requirements 

of paragraph (f) of this section. 

(f) Requirements related to warranty 

claims. You are required at a minimum 

to meet the following conditions to 

ensure that owners will be able to 

promptly obtain warranty repairs: 

(1) You must provide and monitor a 

toll-free telephone number and an email address for owners to receive 

information about how to make a 

warranty claim, and how to make 

arrangements for authorized repairs. 

(2) You must provide a source of 

replacement parts within the United 

States. For parts that you import, this 

requires you to have at least one 

distributor within the United States. 

(3) This paragraph (f)(3) applies for all 

engines except as specified in paragraph 

(f)(4) of this section. You may limit 

warranty repairs to authorized service 

centers for owners located within 100 

miles of an authorized service center. 

For owners located more than 100 miles 

from an authorized service center, you 

must state in your warranty that you 

will either pay for shipping costs to and 

from an authorized service center, 

provide for a service technician to come 

to the owner to make the warranty 

repair, or pay for the repair to be made 

at a local nonauthorized service center. 

(4) In remote locations, the provisions 

of paragraph (f)(3) of this section apply, 

except that the requirement to take extra 

measures to honor warranty claims may 

be based on a distance greater than 100 

miles. For example, in sparsely 

populated areas in Montana, it may be 

acceptable to take the extra steps to 

honor warranty claims only for owners 

located more than 200 miles from an 

authorized service center. However, you 

may not specify a this greater distance 

for servicing engines for more than 10 

percent of owners. 

§ 1054.125 What maintenance instructions 

must I give to buyers? 

Give the ultimate purchaser of each 

new engine written instructions for 

properly maintaining and using the 

engine, including the emission control 

system as described in this section. The 

maintenance instructions also apply to 

service accumulation on your emissiondata engines as described in § 1054.245 

and in 40 CFR part 1065. 

(a) Critical emission-related 

maintenance. Critical emission-related 

maintenance includes any adjustment, 

cleaning, repair, or replacement of 

critical emission-related components. 

This may also include additional 

emission-related maintenance that you 

determine is critical if we approve it in 

advance. You may schedule critical 

emission-related maintenance on these 

components if you meet the following 

conditions: 

(1) You demonstrate that the 

maintenance is reasonably likely to be 

done at the recommended intervals on 

in-use engines. We will accept 

scheduled maintenance as reasonably 

likely to occur if you satisfy any of the 

following conditions: 

(i) You present data showing that any 

lack of maintenance that increases 

emissions also unacceptably degrades 

the engine’s performance. 

(ii) You present survey data showing 

that at least 80 percent of engines in the 

field get the maintenance you specify at 

the recommended intervals. If the 

survey data show that 60 to 80 percent 

of engines in the field get the 

maintenance you specify at the 

recommended intervals, you may ask us 

to consider additional factors such as 

the effect on performance and 

emissions. For example, we may allow 

you to schedule fuel-injector 

replacement as critical emission-related 

maintenance if you have survey data 

showing this is done at the 

recommended interval for 65 percent of 

engines and you demonstrate that 

performance degradation is roughly 

proportional to the degradation in 

emission control for engines that do not 

have their fuel injectors replaced. 

(iii) You provide the maintenance free 

of charge and clearly say so in 

maintenance instructions for the 

customer. 

(iv) You otherwise show us that the 

maintenance is reasonably likely to be 

done at the recommended intervals. 

(2) You may not schedule critical 

emission-related maintenance within 

the useful life period for aftertreatment 

devices, pulse-air valves, fuel injectors, 

oxygen sensors, electronic control units, 

superchargers, or turbochargers, except 

as specified in paragraph (b) or (c) of 

this section. 

(b) Recommended additional 

maintenance. You may recommend any 

additional amount of maintenance on 

the components listed in paragraph (a) 

of this section, as long as you state 

clearly that these maintenance steps are 

not necessary to keep the emissionrelated warranty valid. If operators do 

the maintenance specified in paragraph 

(a) of this section, but not the 

recommended additional maintenance, 

this does not allow you to disqualify 

those engines from in-use testing or 

deny a warranty claim. Do not take 

these maintenance steps during service 

accumulation on your emission-data 

engines. 

(c) Special maintenance. You may 

specify more frequent maintenance to 

address problems related to special 

situations, such as atypical engine 

operation. You must clearly state that 

this additional maintenance is 

associated with the special situation you 

are addressing. 

(d) Noncritical emission-related 

maintenance. Subject to the provisions 

of this paragraph (d), you may schedule 

any amount of emission-related 

inspection or maintenance that is not 

covered by paragraph (a) of this section 

(i.e., maintenance that is neither 

explicitly identified as critical emissionrelated maintenance, nor that we 

approve as critical emission-related 

maintenance). Noncritical emissionrelated maintenance generally includes 

changing spark plugs, changing air 

filters, re-seating valves, or any other 

emission-related maintenance on the 

components we specify in 40 CFR part 

1068, Appendix I. You must state in the 

owners manual that these steps are not 

necessary to keep the emission-related 

warranty valid. If operators fail to do 

this maintenance, this does not allow 

you to disqualify those engines from inuse testing or deny a warranty claim. Do 

not take these inspection or 

maintenance steps during service 

accumulation on your emission-data 

engines. 

(e) Maintenance that is not emissionrelated. For maintenance unrelated to 

emission controls, you may schedule 

any amount of inspection or 

maintenance. You may also take these 

inspection or maintenance steps during 

service accumulation on your emissiondata engines, as long as they are 

reasonable and technologically 

necessary. This might include adding 

engine oil, changing fuel or oil filters, 

servicing engine-cooling systems, and 

adjusting idle speed, governor, engine 

bolt torque, valve lash, or injector lash. 

You may perform this nonemissionVerDate Aug<31>2005 17:21 May 17, 2007 Jkt 211001 PO 00000 Frm 00218 Fmt 4701 Sfmt 4702 E:\FR\FM\18MYP2.SGM 18MYP2

sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28315 

related maintenance on emission-data 

engines at the least frequent intervals 

that you recommend to the ultimate 

purchaser (but not the intervals 

recommended for severe service). 

(f) Source of parts and repairs. State 

clearly on the first page of your written 

maintenance instructions that a repair 

shop or person of the owner’s choosing 

may maintain, replace, or repair 

emission control devices and systems. 

Your instructions may not require 

components or service identified by 

brand, trade, or corporate name. Also, 

do not directly or indirectly condition 

your warranty on a requirement that the 

engine be serviced by your franchised 

dealers or any other service 

establishments with which you have a 

commercial relationship. You may 

disregard the requirements in this 

paragraph (f) if you do one of two 

things: 

(1) Provide a component or service 

without charge under the purchase 

agreement. 

(2) Get us to waive this prohibition in 

the public’s interest by convincing us 

the engine will work properly only with 

the identified component or service. 

(g) Payment for scheduled 

maintenance. Owners are responsible 

for properly maintaining their engines. 

This generally includes paying for 

scheduled maintenance. However, 

manufacturers must pay for scheduled 

maintenance during the useful life if it 

meets all the following criteria: 

(1) Each affected component was not 

in general use on similar engines before 

1997. 

(2) The primary function of each 

affected component is to reduce 

emissions. 

(3) Failure to perform the 

maintenance would not cause clear 

problems that would significantly 

degrade the engine’s performance. 

(h) Owners manual. Explain the 

owner’s responsibility for proper 

maintenance in the owners manual. 

§ 1054.130 What installation instructions 

must I give to equipment manufacturers? 

(a) If you sell an engine for someone 

else to install in a piece of equipment, 

give the engine installer instructions for 

installing it consistent with the 

requirements of this part. Include all 

information necessary to ensure that an 

engine will be installed in its certified 

configuration. 

(b) Make sure these instructions have 

the following information: 

(1) Include the heading: ‘‘Emissionrelated installation instructions’’. 

(2) State: ‘‘Failing to follow these 

instructions when installing a certified 

engine in nonroad equipment violates 

federal law (40 CFR 1068.105(b)), 

subject to fines or other penalties as 

described in the Clean Air Act.’’. 

(3) Describe the instructions needed 

to properly install the exhaust system 

and any other components. Include 

instructions consistent with the 

requirements of § 1054.655 related to 

altitude kits. 

(4) Describe the steps needed to 

control evaporative emissions in 

accordance with certificates of 

conformity that you hold. Include 

instructions for connecting fuel lines as 

needed to prevent running loss 

emissions, if applicable. Such 

instructions must include sufficient 

detail to ensure that running loss 

control will not cause the engine to 

exceed exhaust emission standards. For 

example, you may specify a maximum 

vapor flow rate under normal operating 

conditions. Also include notification 

that the installer must meet the 

requirements of § 1054.110 and 40 CFR 

part 1060. 

(5) Describe any limits on the range of 

applications needed to ensure that the 

engine remains in its certified 

configuration after installation. For 

example, if you certify engines only for 

rated-speed applications tell equipment 

manufacturers that the engine must not 

be installed in equipment involving 

intermediate-speed operation. Also, if 

your wintertime engines are not 

certified to the otherwise applicable 

HC+NOX standards, tell equipment 

manufacturers that the engines must be 

installed in equipment that is used only 

in wintertime. 

(6) Describe any other instructions to 

make sure the installed engine will 

operate according to design 

specifications in your application for 

certification. For example, this may 

include specified limits for catalyst 

systems, such as exhaust backpressure, 

catalyst location, and temperature 

profiles during engine operation. 

(7) State: ‘‘If you install the engine in 

a way that makes the engine’s emission 

control information label hard to read 

during normal engine maintenance, you 

must place a duplicate label on the 

equipment, as described in 40 CFR 

1068.105.’’. 

(c) You do not need installation 

instructions for engines you install in 

your own equipment. 

(d) Provide instructions in writing or 

in an equivalent format. For example, 

you may post instructions on a publicly 

available website for downloading or 

printing. If you do not provide the 

instructions in writing, explain in your 

application for certification how you 

will ensure that each installer is 

informed of the installation 

requirements. 

§ 1054.135 How must I label and identify 

the engines I produce? 

The provisions of this section apply to 

engine manufacturers. 

(a) Assign each engine a unique 

identification number and permanently 

affix, engrave, or stamp it on the engine 

in a legible way. 

(b) At the time of manufacture, affix 

a permanent and legible label 

identifying each engine. The label must 

be—

(1) Attached so it is not removable 

without being destroyed or defaced. 

(2) Secured to a part of the engine 

needed for normal operation and not 

normally requiring replacement. 

(3) Durable and readable for the 

engine’s entire life. 

(4) Written in English. 

(c) The label must—

(1) Include the heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Include your full corporate name 

and trademark. You may identify 

another company and use its trademark 

instead of yours if you comply with the 

provisions of § 1054.640. 

(3) Include EPA’s standardized 

designation for the emission family (and 

subfamily, where applicable). 

(4) State the following based on the 

useful life requirements in § 1054.107: 

‘‘EMISSIONS COMPLIANCE PERIOD= 

[identify applicable useful life period] 

HOURS’’. 

(5) State the engine’s displacement (in 

cubic centimeters); however, you may 

omit this from the label if all the engines 

in the emission family have the same 

per-cylinder displacement and total 

displacement. 

(6) State the date of manufacture 

[MONTH and YEAR]; however, you may 

omit this from the label if you stamp or 

engrave it on the engine. 

(7) State the FEL to which the engine 

is certified (in g/kW-hr) if certification 

depends on the ABT provisions of 

subpart H of this part. 

(8) Identify the emission control 

system. Use terms and abbreviations 

consistent with SAE J1930 (incorporated 

by reference in § 1054.810). You may 

omit this information from the label if 

there is not enough room for it and you 

put it in the owners manual instead. 

(9) List specifications and adjustments 

for engine tuneups; however, you may 

omit this information from the label if 

there is not enough room for it and you 

put it in the owners manual instead. 

(10) Identify the altitude at which an 

altitude kit should be installed if you 

specify an altitude kit under 

§ 1054.115(c). You may omit this 


sroberts on PROD1PC70 with PROPOSALS
28316 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

information from the label if there is not 

enough room for it and you put it in the 

owners manual instead. 

(11) Identify the fuel type and any 

requirements for fuel and lubricants; 

however, you may omit this information 

from the label if there is not enough 

room for it and you put it in the owners 

manual instead. 

(12) State: ‘‘THIS ENGINE COMPLIES 

WITH U.S. EPA REGULATIONS FOR 

[MODEL YEAR] SPARK-IGNITION 

ENGINES.’’. 

(13) If your nonhandheld engines are 

certified for use only at rated speed or 

only at intermediate speed, add the 

statement: ‘‘CERTIFIED FOR [ratedspeed or intermediate-speed] 

APPLICATIONS ONLY’’ or ‘‘CERTIFIED 

FOR [identify nominal engine speed or 

range of speeds for testing] OPERATION 

ONLY’’. 

(14) For wintertime engines state: 

‘‘FOR WINTERTIME USE ONLY’’. 

(d) If others install your engine in 

their equipment in a way that obscures 

the engine label such that the label 

cannot be read during normal 

maintenance, we require them to add a 

duplicate label on the equipment (see 40 

CFR 1068.105); in that case, give them 

the number of duplicate labels they 

request and keep the following records 

for at least five years: 

(1) Written documentation of the 

request from the equipment 

manufacturer. 

(2) The number of duplicate labels 

you send for each engine family and the 

date you sent them. 

(e) You may add information to the 

emission control information label as 

follows: 

(1) You may identify other emission 

standards that the engine meets or does 

not meet (such as California standards). 

(2) You may add other information to 

ensure that the engine will be properly 

maintained and used. 

(3) You may add appropriate features 

to prevent counterfeit labels. For 

example, you may include the engine’s 

unique identification number on the 

label. 

(f) You may ask us to approve 

modified labeling requirements in this 

part 1054 if you show that it is 

necessary or appropriate. We will 

approve your request if your alternate 

label is consistent with the requirements 

of this part. 

(g) Integrated equipment 

manufacturers may meet the labeling 

requirements of this section by 

including all the specified information 

on the equipment label required by 40 

CFR part 1060. 

§ 1054.136 How must I permanently label 

the equipment I produce? 

The provisions of this section apply to 

equipment manufacturers. 

(a) You must comply with the 

equipment labeling requirements of 40 

CFR part 1060. 

(b) If you obscure the engine label 

while installing the engine in the 

equipment such that the label will be 

hard to read, you must place a duplicate 

label on the equipment consistent with 

the requirements of 40 CFR 1068.105. 

(c) You may include the information 

required by § 1054.135 on the 

equipment label required by 40 CFR 

part 1060. 

§ 1054.140 What is my engine’s maximum 

engine power and displacement? 

This section describes how to 

quantify your engine’s maximum engine 

power and displacement for the 

purposes of this part. 

(a) An engine configuration’s 

maximum engine power is the 

maximum brake power point on the 

nominal power curve for the engine 

configuration, as defined in this section. 

Round the power value to the nearest 

0.1 kilowatts for nonhandheld engines 

and to the nearest 0.01 kilowatts for 

handheld engines. The nominal power 

curve of an engine configuration is the 

relationship between maximum 

available engine brake power and 

engine speed for an engine, using the 

mapping procedures of 40 CFR part 

1065, based on the manufacturer’s 

design and production specifications for 

the engine. This information may also 

be expressed by a torque curve that 

relates maximum available engine 

torque with engine speed. 

(b) An engine configuration’s 

displacement is the intended swept 

volume of all the engine’s cylinders. 

The swept volume of the engine is the 

product of the internal cross-section 

area of the cylinders, the stroke length, 

and the number of cylinders. Calculate 

the engine’s intended swept volume 

from the design specifications for the 

cylinders using enough significant 

figures to allow determination of the 

displacement to the nearest 0.1 cc. 

Determine the final value by rounding 

to the nearest cubic centimeter. For 

example, for a one-cylinder engine with 

circular cylinders having an internal 

diameter of 6.00 cm and a 6.25 cm 

stroke length, the rounded displacement 

would be: (1) × (6.00/2)2 × (π) × (6.25) 

= 177 cc. 

(c) The nominal power curve and 

intended swept volume must be within 

the range of the actual power curves and 

swept volumes of production engines 

considering normal production 

variability. If after production begins it 

is determined that either your nominal 

power curve or your intended swept 

volume does not represent production 

engines, we may require you to amend 

your application for certification under 

§ 1054.225. 

(d) Each engine produced under the 

provisions of § 1054.1(d) must have a 

total displacement at or below 1000.0 cc 

after rounding to the nearest 0.1 cc. 

§ 1054.145 Are there interim provisions 

that apply only for a limited time? 

The provisions in this section apply 

instead of other provisions in this part. 

(a) Delayed Phase 3 implementation 

for engine manufacturers. Small-volume 

engine manufacturers may delay 

complying with otherwise applicable 

Phase 3 emission standards and 

requirements subject to the following 

conditions: 

(1) You may delay meeting the Phase 

3 exhaust emission standards until 2013 

for Class II engines and until 2014 for 

Class I engines. 

(2) You must certify your engines 

exempted under this section to the 

Phase 2 standards and requirements 

from specified in 40 CFR 90.103 and 

summarized in Appendix I of this part. 

You must meet the labeling 

requirements in 40 CFR 90.114, but use 

the following compliance statement 

instead of the compliance statement in 

40 CFR 90.114(c)(7): ‘‘THIS ENGINE 

COMPLIES WITH U.S. EPA 

REGULATIONS FOR [CURRENT 

MODEL YEAR] NONROAD ENGINES 

UNDER 40 CFR 1054.145(a).’’. 

(3) After the delays indicated in 

paragraph (a)(1) of this section, you 

must comply with the same standards 

and requirements as all other 

manufacturers, except as noted 

elsewhere in this section. 

(4) The provisions of this paragraph 

(a) may not be used to circumvent the 

requirements of this part. 

(5) You may generate early credits 

during this two-year period as described 

under § 1054.740 as if the emission 

standards applied starting in the 2013 

model year for Class II engines and in 

the 2014 model year for Class I engines. 

(b) Delayed Phase 3 implementation 

for equipment manufacturers. Special 

provisions apply to small-volume 

equipment manufacturers. The 

provisions of § 1054.625 describe how 

manufacturers may produce certain 

numbers of equipment using Class II 

engines that meet Phase 2 standards 

during the first four years that the Phase 

3 standards apply. 

(c) Special provisions for handheld 

engines. The following provisions apply 

for handheld engines: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28317 

(1) You may use the provisions in 40 

CFR 90.104(g) to rely on assigned 

deterioration factors for small-volume 

equipment manufacturers and for smallvolume equipment families. 

(2) You may use the test procedures 

in 40 CFR part 90 instead of those in 

subpart F of this part for the 2010 and 

2011 model years. This applies for 

certification, production-line, and inuse testing. You may continue to use 

test data based on the test procedures in 

40 CFR part 90 for engine families in 

2012 and later model years, provided 

that we allow you to use carryover 

emission data under 40 CFR 1054.235(d) 

for your emission family. 

(3) You may perform maintenance on 

emission-data engines during service 

accumulation as described in 40 CFR 

part 90. 

(4) Engines subject to Phase 3 

emission standards must meet the 

standards at or above barometric 

pressures of 96.0 kPa in the standard 

configuration. This is intended to allow 

testing under most weather conditions 

at all altitudes up to 1,100 feet above sea 

level. In your application for 

certification, identify the altitude above 

which you rely on an altitude kit to 

meet emission standards and describe 

your plan for making information and 

parts available such that you would 

reasonably expect that altitude kits 

would be widely used at all such 

altitudes. 

(d) Alignment of model years for 

exhaust and evaporative standards. 

Evaporative emission standards 

generally apply based on the model year 

of the equipment, which is determined 

by the equipment’s date of final 

assembly. However, in the first year of 

new emission standards, equipment 

manufacturers may apply evaporative 

emission standards based on the model 

year of the engine as shown on the 

engine’s emission control information 

label. For example, for the fuel line 

permeation standards starting in 2012, 

equipment manufacturers may order a 

batch of 2011 model year engines for 

installation in 2012 model year 

equipment, subject to the antistockpiling provisions of 40 CFR 

1068.105(a). The equipment with the 

2011 model year engines would not 

need to meet fuel line permeation 

standards, as long as the equipment is 

fully assembled by December 31, 2012. 

(e) Early compliance with evaporative 

emission standards—nonhandheld 

equipment manufacturers. You may 

produce nonhandheld equipment that 

does not meet the otherwise applicable 

evaporative emission standards without 

violating the prohibition in 40 CFR 

1068.101(a)(1) if you earn evaporative 

allowances, as follows: 

(1) You may earn an evaporative 

allowance from each piece of equipment 

certified to California’s evaporative 

emission standards by producing it 

before the requirements of this part start 

to apply and selling it outside of 

California. You may use an evaporative 

allowance by selling one piece of 

equipment that does not meet any EPA 

evaporative emission standards even 

though it is subject to the EPA 

standards. 

(2) You may earn an evaporative 

allowance with respect to fuel tank 

permeation from each piece of 

equipment certified to EPA’s 

evaporative emission standards by 

selling it outside of California or in an 

application that is preempted from 

California’s standards before EPA’s fuel 

tank permeation standards start to 

apply. You may use an evaporative 

allowance by selling one piece of 

equipment with a fuel tank that does not 

meet the otherwise applicable EPA 

emission standards even though it is 

subject to the EPA standards. For 

example, you can earn an evaporative 

allowance by selling a low-permeation 

fuel tank for Class II equipment before 

the 2011 model year, in which case you 

could sell a piece of Class II equipment 

in 2011 with a high-permeation fuel 

tank. You may not generate allowances 

under this paragraph (e)(2) based on 

your sales of metal fuel tanks. 

(3) Evaporative allowances you earn 

under this paragraph (e) from 

equipment with Class I engines may be 

used only for other equipment with 

Class I engines. Similarly, evaporative 

allowances you earn under this 

paragraph (e) from equipment with 

Class II engines may be used only for 

other equipment with Class II engines. 

(4) You must label any equipment 

using allowances under this paragraph 

(e) with the following statement: 

‘‘EXEMPT FROM EMISSION 

STANDARDS UNDER 40 CFR 

1054.145(e).’’. 

(5) You may not use the allowances 

you generate under this paragraph (e) 

for 2014 and later model year 

equipment with Class II engines or for 

2015 and later model year equipment 

with Class I engines. 

(f) Early banking for evaporative 

emission standards—handheld 

equipment manufacturers. You may 

earn emission credits for handheld 

equipment you produce before the 

evaporative emission standards of 

§ 1054.110 apply. To do this, your 

equipment must use fuel tanks with a 

family emission limit below 1.5 g/m2/ 

day or fuel lines with a family emission 

limit below 15 g/m2/day. Calculate your 

credits as described in § 1054.706 based 

on the difference between the family 

emission limit and the applicable 

emission rates specified in this 

paragraph (f). 

(g) Useful life for evaporative 

emission standards. A useful life period 

of two years applies for fuel tanks or 

fuel caps certified to meet the 

permeation emission standards in 

§ 1054.110(b) in 2013 and earlier model 

years. However, for fuel tanks with a 

family emission limit above or below 

the otherwise applicable standard, 

calculate emission credits under 

§ 1054.706 based on a useful life of five 

years. 

(h) Use of California data for 

handheld fuel tank permeation. If you 

certified handheld fuel tanks to the 

permeation standards in 40 CFR 90.129 

based on emission measurements for 

demonstrating compliance with 

emission standards for California, you 

may continue to use this data as the 

basis for demonstrating compliance 

with the requirements of § 1054.110(b) 

for the 2010 and 2011 model years, 

provided that we allow you to use 

carryover emission data under 40 CFR 

1060.235(e) for your emission family. 

Subpart C—Certifying Emission 

Families 

§ 1054.201 What are the general 

requirements for obtaining a certificate of 

conformity? 

Engine manufacturers must certify 

their engines with respect to the exhaust 

emission standards in this part. 

Manufacturers of engines, equipment, or 

fuel-system components may need to 

certify their products with respect to 

evaporative emission standards as 

described in 40 CFR 1060.1 and 

1060.601. The following general 

requirements apply for obtaining a 

certificate of conformity: 

(a) You must send us a separate 

application for a certificate of 

conformity for each emission family. A 

certificate of conformity is valid starting 

with the indicated effective date, but it 

is not valid for any production after 

December 31 of the model year for 

which it is issued. No certificate will be 

issued after December 31 of the model 

year. If you certify with respect to both 

exhaust and evaporative emissions, you 

must submit separate applications. 

(b) The application must contain all 

the information required by this part 

and must not include false or 

incomplete statements or information 

(see § 1054.255). 

(c) We may ask you to include less 

information than we specify in this 


sroberts on PROD1PC70 with PROPOSALS
28318 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

subpart, as long as you maintain all the 

information required by § 1054.250. 

(d) You must use good engineering 

judgment for all decisions related to 

your application (see 40 CFR 1068.5). 

(e) An authorized representative of 

your company must approve and sign 

the application. 

(f) See § 1054.255 for provisions 

describing how we will process your 

application. 

(g) We may require you to deliver 

your test engines to a facility we 

designate for our testing (see 

§ 1054.235(c)). 

§ 1054.205 What must I include in my 

application? 

This section specifies the information 

that must be in your application, unless 

we ask you to include less information 

under § 1054.202(c). We may require 

you to provide additional information to 

evaluate your application. The 

provisions of this section apply to 

integrated equipment manufacturers 

and engine manufacturers selling loose 

engines. Nonintegrated equipment 

manufacturers must follow the 

requirements of 40 CFR part 1060. 

(a) Describe the emission family’s 

specifications and other basic 

parameters of the engine’s design and 

emission controls. List the fuel type on 

which your engines are designed to 

operate (for example, all-season 

gasoline). List each distinguishable 

engine configuration in the emission 

family. For each engine configuration in 

which the maximum modal power of 

the emission-data engine is at or above 

15 kW, list the maximum engine power 

and the range of values for maximum 

engine power resulting from production 

tolerances, as described in § 1054.140. 

(b) Explain how the emission control 

systems operate. Describe the 

evaporative emission controls and show 

how your design will prevent running 

loss emissions, if applicable. Also 

describe in detail all system 

components for controlling exhaust 

emissions, including all auxiliary 

emission control devices (AECDs) and 

all fuel-system components you will 

install on any production or test engine. 

Identify the part number of each 

component you describe (or the 

alphanumeric designation for catalysts 

described in § 1054.610, if applicable). 

For this paragraph (b), treat as separate 

AECDs any devices that modulate or 

activate differently from each other. 

Include sufficient detail to allow us to 

evaluate whether the AECDs are 

consistent with the defeat device 

prohibition of § 1054.115. For example, 

if your engines will routinely 

experience in-use operation that differs 

from the specified duty cycle for 

certification, describe how the fuelmetering system responds to varying 

speeds and loads not represented by the 

duty cycle. 

(c) [Reserved] 

(d) Describe the engines, equipment, 

and fuel system components you 

selected for testing and the reasons for 

selecting them. 

(e) Describe the test equipment and 

procedures that you used, including any 

special or alternate test procedures you 

used. For handheld engines, describe 

how you selected the value for rated 

speed. 

(f) Describe how you operated the 

emission-data engine before testing, 

including the duty cycle and the 

number of engine operating hours used 

to stabilize emission levels. Explain 

why you selected the method of service 

accumulation. Describe any scheduled 

maintenance you did. 

(g) List the specifications of the test 

fuel to show that it falls within the 

required ranges we specify in 40 CFR 

part 1065. 

(h) Identify the emission family’s 

useful life. Describe the basis for 

selecting useful life values with respect 

to exhaust emissions (see § 1054.107). 

(i) Include the maintenance and 

warranty instructions you will give to 

the ultimate purchaser of each new 

engine (see §§ 1054.120 and 1054.125). 

(j) Include the emission-related 

installation instructions you will 

provide if someone else installs your 

engines in nonroad equipment (see 

§ 1054.130). 

(k) Describe your emission control 

information label (see § 1054.135). 

(l) Identify the emission standards or 

FELs for the emission family. 

(m) Identify the emission family’s 

deterioration factors and describe how 

you developed them (see § 1054.245). 

Present any emission test data you used 

for this. 

(n) State that you operated your 

emission-data engines as described in 

the application (including the test 

procedures, test parameters, and test 

fuels) to show you meet the 

requirements of this part. 

(o) Present emission data to show that 

you meet emission standards, as 

follows: 

(1) Present emission data for 

hydrocarbons (such as THC or THCE, as 

applicable), NOX, and CO on an 

emission-data engine to show your 

engines meet the applicable exhaust 

emission standards as specified in 

§ 1054.101. Show emission figures 

before and after applying deterioration 

factors for each engine. Include test data 

from each applicable duty cycle 

specified in § 1054.505(b). If we specify 

more than one grade of any fuel type 

(for example, low-temperature and allseason gasoline), you need to submit 

test data only for one grade, unless the 

regulations of this part specify 

otherwise for your engine. 

(2) Present evaporative test data for 

hydrocarbons to show your engine or 

equipment meets the evaporative 

emission standards we specify in 

subpart B of this part. If you did not 

perform the testing, identify the source 

of the test data. 

(3) Note that §§ 1054.235 and 

1054.245 allow you to submit an 

application in certain cases without new 

emission data. 

(p) Report all test results, including 

those from invalid tests, whether or not 

they were conducted according to the 

test procedures of subpart F of this part. 

If you measure CO2, report those 

emission levels. We may ask you to 

send other information to confirm that 

your tests were valid under the 

requirements of this part and 40 CFR 

parts 1060 and 1065. 

(q) Describe all adjustable operating 

parameters (see § 1054.115(b)), 

including production tolerances. 

Include the following in your 

description of each parameter: 

(1) The nominal or recommended 

setting. 

(2) The intended physically adjustable 

range. 

(3) The limits or stops used to 

establish adjustable ranges. 

(4) Information showing why the 

limits, stops, or other means of 

inhibiting adjustment are effective in 

preventing adjustment of parameters on 

in-use engines to settings outside your 

intended physically adjustable ranges. 

(r) Describe how your engines comply 

with emission standards at varying 

atmospheric pressures. Include a 

description of altitude kits you design to 

comply with the requirements of 

§ 1054.115(c). Identify the part number 

of each component you describe. 

Identify the altitude range for which you 

expect proper engine performance and 

emission control with and without the 

altitude kit. State that your engines will 

comply with applicable emission 

standards throughout the useful life 

with the altitude kit installed according 

to your instructions. Describe any 

relevant testing, engineering analysis, or 

other information in sufficient detail to 

support your statement. In addition, 

describe your plan for making 

information and parts available such 

that you would reasonably expect that 

altitude kits would be widely used in 

the high-altitude counties specified in 

Appendix III of this part. For example, 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28319 

engine owners should have ready access 

to information describing when an 

altitude kit is needed and how to obtain 

this service. Similarly, parts and service 

information should be available to 

qualified service facilities in addition to 

authorized service centers if that is 

needed for owners to have such altitude 

kits installed locally. 

(s) If your engines are subject to 

handheld emission standards on the 

basis of meeting weight limitations 

described in the definition of 

‘‘handheld,’’ describe your analysis 

showing that you meet the applicable 

weight-related restrictions. 

(t) State whether your certification is 

limited for certain engines. If this is the 

case, describe how you will prevent use 

of these engines in applications for 

which they are not certified. This 

applies for engines such as the 

following: 

(1) Wintertime engines not certified to 

the otherwise applicable HC+NOX

standard. 

(2) Two-stroke snowthrower engines 

using the provisions of § 1054.101(d). 

(u) Unconditionally certify that all the 

engines in the emission family comply 

with the requirements of this part, other 

referenced parts of the CFR, and the 

Clean Air Act. 

(v) Include good-faith estimates of 

U.S.-directed production volumes. 

Include a justification for the estimated 

production volumes if they are 

substantially different than actual 

production volumes in earlier years for 

similar models. 

(w) Describe how you meet the 

requirements for posting bond as 

specified in §§ 1054.685 and 1054.690, 

or describe why those requirements do 

not apply. 

(x) Include the information required 

by other subparts of this part. For 

example, include the information 

required by § 1054.725 if you participate 

in the ABT program. 

(y) Include other applicable 

information, such as information 

specified in this part or 40 CFR part 

1068 related to requests for exemptions. 

(z) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

(aa) For imported engines or 

equipment, identify the following: 

(1) The port(s) at which you will 

import your engines or equipment. 

(2) The names and addresses of the 

agents you have authorized to import 

your engines or equipment. 

(3) The location of test facilities in the 

United States where you can test your 

engines if we select them for testing 

under a selective enforcement audit, as 

specified in 40 CFR part 1068, 

subpart E. 

§ 1054.210 May I get preliminary approval 

before I complete my application? 

If you send us information before you 

finish the application, we will review it 

and make any appropriate 

determinations, especially for questions 

related to emission family definitions, 

auxiliary emission control devices, 

deterioration factors, useful life, testing 

for service accumulation, maintenance, 

and delegated final assembly. Decisions 

made under this section are considered 

to be preliminary approval, subject to 

final review and approval. We will 

generally not reverse a decision where 

we have given you preliminary 

approval, unless we find new 

information supporting a different 

decision. If you request preliminary 

approval related to the upcoming model 

year or the model year after that, we will 

make best-efforts to make the 

appropriate determinations as soon as 

practicable. We will generally not 

provide preliminary approval related to 

a future model year more than two years 

ahead of time. 

§ 1054.220 How do I amend the 

maintenance instructions in my 

application? 

You may amend your emissionrelated maintenance instructions after 

you submit your application for 

certification, as long as the amended 

instructions remain consistent with the 

provisions of § 1054.125. You must send 

the Designated Compliance Officer a 

written request to amend your 

application for certification for an 

engine family if you want to change the 

emission-related maintenance 

instructions in a way that could affect 

emissions. In your request, describe the 

proposed changes to the maintenance 

instructions. We will disapprove your 

request if we determine that the 

amended instructions are inconsistent 

with maintenance you performed on 

emission-data engines. If operators 

follow the original maintenance 

instructions rather than the newly 

specified maintenance, this does not 

allow you to disqualify those engines 

from in-use testing or deny a warranty 

claim. 

(a) If you are changing the specified 

maintenance in a way that could affect 

emissions, you may distribute the new 

maintenance instructions to your 

customers only after we approve your 

request. 

(b) You need not request approval if 

you are making only minor corrections 

(such as correcting typographical 

mistakes), clarifying your maintenance 

instructions, or changing instructions 

for maintenance unrelated to emission 

control. 

§ 1054.225 How do I amend my application 

for certification to include new or modified 

engines or fuel systems or change an FEL? 

Before we issue you a certificate of 

conformity, you may amend your 

application to include new or modified 

engine or fuel-system configurations, 

subject to the provisions of this section. 

After we have issued your certificate of 

conformity, you may send us an 

amended application requesting that we 

include new or modified configurations 

within the scope of the certificate, 

subject to the provisions of this section. 

You must amend your application if any 

changes occur with respect to any 

information included in your 

application. 

(a) You must amend your application 

before you take any of the following 

actions: 

(1) Add an engine or fuel-system 

configuration to an emission family. In 

this case, the configuration added must 

be consistent with other configurations 

in the emission family with respect to 

the criteria listed in § 1054.230. 

(2) Change a configuration already 

included in an emission family in a way 

that may affect emissions, or change any 

of the components you described in 

your application for certification. This 

includes production and design changes 

that may affect emissions any time 

during the engine’s lifetime. 

(3) Modify an FEL for an emission 

family with respect to exhaust 

emissions as described in paragraph (f) 

of this section. 

(b) To amend your application for 

certification, send the Designated 

Compliance Officer the following 

information: 

(1) Describe in detail the addition or 

change in the model or configuration 

you intend to make. 

(2) Include engineering evaluations or 

data showing that the amended 

emission family complies with all 

applicable requirements. You may do 

this by showing that the original 

emission-data engine or emission-data 

equipment is still appropriate for 

showing that the amended family 

complies with all applicable 

requirements. 

(3) If the original emission-data 

engine or emission-data equipment for 

the emission family is not appropriate to 

show compliance for the new or 

modified configuration, include new 


sroberts on PROD1PC70 with PROPOSALS
28320 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

test data showing that the new or 

modified configuration meets the 

requirements of this part. 

(c) We may ask for more test data or 

engineering evaluations. You must give 

us these within 30 days after we request 

them. 

(d) For emission families already 

covered by a certificate of conformity, 

we will determine whether the existing 

certificate of conformity covers your 

new or modified configuration. You 

may ask for a hearing if we deny your 

request (see § 1054.820). 

(e) For emission families already 

covered by a certificate of conformity, 

you may start producing the new or 

modified configuration anytime after 

you send us your amended application 

and before we make a decision under 

paragraph (d) of this section. However, 

if we determine that the affected 

configurations do not meet applicable 

requirements, we will notify you to 

cease production of the configurations 

and may require you to recall the engine 

or equipment at no expense to the 

owner. Choosing to produce engine 

under this paragraph (e) is deemed to be 

consent to recall all engines or 

equipment that we determine do not 

meet applicable emission standards or 

other requirements and to remedy the 

nonconformity at no expense to the 

owner. If you do not provide 

information required under paragraph 

(c) of this section within 30 days, you 

must stop producing the new or 

modified engine or equipment. 

(f) You may ask us to approve a 

change to your FEL with respect to 

exhaust emissions in certain cases after 

the start of production. The changed 

FEL may not apply to engines you have 

already introduced into U.S. commerce, 

except as described in this paragraph (f). 

If we approve a changed FEL after the 

start of production, you must include 

the new FEL on the emission control 

information label for all engines 

produced after the change. You may ask 

us to approve a change to your FEL in 

the following cases: 

(1) You may ask to raise your FEL for 

your emission family at any time. In 

your request, you must show that you 

will still be able to meet the emission 

standards as specified in subparts B and 

H of this part. If you amend your 

application by submitting new test data 

to include a newly added or modified 

engine, as described in paragraph (b)(3) 

of this section, use the appropriate FELs 

with corresponding production volumes 

to calculate your production-weighted 

average FEL for the model year, as 

described in subpart H of this part. If 

you amend your application without 

submitting new test data, you must use 

the higher FEL for the entire family to 

calculate your production-weighted 

average FEL under subpart H of this 

part. 

(2) You may ask to lower the FEL for 

your emission family only if you have 

test data from production engines 

showing that emissions are below the 

proposed lower FEL. The lower FEL 

applies only to engines you produce 

after we approve the new FEL. Use the 

appropriate FELs with corresponding 

production volumes to calculate your 

production-weighted average FEL for 

the model year, as described in subpart 

H of this part. 

§ 1054.230 How do I select emission 

families? 

(a) For purposes of certification, 

divide your product line into families of 

engines that are expected to have 

similar emission characteristics 

throughout the useful life as described 

in this section. You must have separate 

emission families for meeting exhaust 

and evaporative emissions. Your 

emission family is limited to a single 

model year. 

(b) Group engines in the same 

emission family for exhaust emissions if 

they are the same in all the following 

aspects: 

(1) The combustion cycle and fuel. 

(2) The cooling system (liquid-cooled 

vs. air-cooled). 

(3) Valve configuration (side-valve vs. 

overhead valve). 

(4) Method of air aspiration (for 

example, turbocharged vs. naturally 

aspirated). 

(5) The number, location, volume, and 

composition of catalytic converters. 

(6) The number, arrangement, and 

approximate bore diameter of cylinders. 

(7) Engine class, as defined in 

§ 1054.801. 

(8) Method of control for engine 

operation, other than governing 

(mechanical or electronic). 

(9) The numerical level of the 

emission standards that apply to the 

engine. 

(10) Useful life. 

(c) For evaporative emissions, group 

engines into emission families as 

described in 40 CFR 1060.230. 

(d) You may subdivide a group that is 

identical under paragraph (b) or (c) of 

this section into different emission 

families if you show the expected 

emission characteristics are different 

during the useful life. 

(e) You may group engines that are 

not identical with respect to the things 

listed in paragraph (b) or (c) of this 

section in the same emission family, as 

follows: 

(1) In unusual circumstances, you 

may group such engines in the same 

emission family if you show that their 

emission characteristics during the 

useful life will be similar. 

(2) If you are a small-volume engine 

manufacturer, you may group any 

nonhandheld engines with the same 

useful life that are subject to the same 

emission standards into a single 

emission family. 

(3) The provisions of this paragraph 

(e) do not exempt any engines from 

meeting all the applicable standards and 

requirements in subpart B of this part. 

(f) Select test engines from the 

emission family as described in 40 CFR 

1065.401. Select test components 

related to evaporative emission control 

systems that are most likely to exceed 

the applicable emission standards. For 

example, select a fuel tank with the 

smallest average wall thickness (or 

barrier thickness, as appropriate) of 

those tanks you include in the same 

family. 

(g) You may combine engines from 

different classes into a single emission 

family under paragraph (e)(1) of this 

section if you certify the emission 

family to the more stringent set of 

standards from the two classes in that 

model year. 

§ 1054.235 What exhaust emission testing 

must I perform for my application for a 

certificate of conformity? 

This section describes the exhaust 

emission testing you must perform to 

show compliance with the emission 

standards in §§ 1054.103 and 1054.105. 

See §§ 1054.240 and 1054.245 and 40 

CFR part 1065, subpart E, regarding 

service accumulation before emission 

testing. 

(a) Select an emission-data engine 

from each engine family for testing as 

described in 40 CFR 1065.401. Select a 

configuration that is most likely to 

exceed the HC+NOX standard, using 

good engineering judgment. Consider 

the emission levels of all exhaust 

constituents over the full useful life of 

the engine when operated in nonroad 

equipment. Configurations must be 

tested as they will be produced, 

including installed governors, whether 

you or the equipment manufacturer 

installs the governor. 

(b) Test your emission-data engines 

using the procedures and equipment 

specified in subpart F of this part. 

(c) We may measure emissions from 

any of your test engines or other engines 

from the emission family, as follows: 

(1) We may decide to do the testing 

at your plant or any other facility. If we 

do this, you must deliver the test engine 

to a test facility we designate. The test 

engine you provide must include 

appropriate manifolds, aftertreatment 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28321 

devices, electronic control units, and 

other emission-related components not 

normally attached directly to the engine 

block. If we do the testing at your plant, 

you must schedule it as soon as possible 

and make available the instruments, 

personnel, and equipment we need. 

(2) If we measure emissions on one of 

your test engines, the results of that 

testing become the official emission 

results for the engine. 

(3) We may set the adjustable 

parameters of your emission-data engine 

to any point within the physically 

adjustable ranges (see § 1054.115(b)). 

(4) We may calibrate your emissiondata engine within normal production 

tolerances for anything we do not 

consider an adjustable parameter. 

(d) You may ask to use emission data 

from a previous model year instead of 

doing new tests, but only if all the 

following are true: 

(1) The emission family from the 

previous model year differs from the 

current emission family only with 

respect to model year or other 

characteristics unrelated to emissions. 

You may also ask to add a configuration 

subject to § 1054.225. 

(2) The emission-data engine from the 

previous model year remains the 

appropriate emission-data engine under 

paragraph (b) of this section. 

(3) The data show that the emissiondata engine would meet all the 

requirements that apply to the emission 

family covered by the application for 

certification. For engines originally 

tested under the provisions of 40 CFR 

part 90, you may consider those test 

procedures to be equivalent to the 

procedures we specify in subpart F of 

this part. 

(e) We may require you to test a 

second engine of the same or different 

configuration in addition to the engine 

tested under paragraph (b) of this 

section. 

(f) If you use an alternate test 

procedure under 40 CFR 1065.10 and 

later testing shows that such testing 

does not produce results that are 

equivalent to the procedures specified 

in subpart F of this part, we may reject 

data you generated using the alternate 

procedure. 

§ 1054.240 How do I demonstrate that my 

emission family complies with exhaust 

emission standards? 

(a) For purposes of certification, your 

emission family is considered in 

compliance with the emission standards 

in § 1054.101(a) if all emission-data 

engines representing that family have 

test results showing deteriorated 

emission levels at or below these 

standards. Note that your FELs are 

considered to be the applicable 

emission standards with which you 

must comply if you participate in the 

ABT program in subpart H of this part. 

(b) Your emission family is deemed 

not to comply if any emission-data 

engine representing that family has test 

results showing a deteriorated emission 

level above an applicable emission 

standard for any pollutant. 

(c) Determine a deterioration factor to 

compare emission levels from the 

emission-data engine with the 

applicable emission standards. Section 

1054.245 specifies how to test engines 

to develop deterioration factors that 

represent the expected deterioration in 

emissions over your engines’ full useful 

life. Calculate a multiplicative 

deterioration factor as described in 

§ 1054.245(b). If the deterioration factor 

is less than one, use one. Specify the 

deterioration factor to one more 

significant figure than the emission 

standard. You may use assigned 

deterioration factors that we establish 

for up to 10,000 nonhandheld engines 

from small-volume emission families in 

each model year, except that smallvolume engine manufacturers may use 

assigned deterioration factors for all 

their engine families. 

(d) Adjust the official emission results 

for each tested engine at the selected 

test point by multiplying the measured 

emissions by the deterioration factor, 

then rounding the adjusted figure to the 

same number of decimal places as the 

emission standard. Compare the 

rounded emission levels to the emission 

standard for each emission-data engine. 

In the case of HC+NOX standards, add 

the emission results and apply the 

deterioration factor to the sum of the 

pollutants before rounding. However, if 

your deterioration factors are based on 

emission measurements that do not 

cover the engine’s full useful life, apply 

deterioration factors to each pollutant 

and then add the results before 

rounding. 

(e) The provisions of this paragraph 

(e) apply only for engine families with 

a useful life at or below 300 hours. To 

apply the deterioration factor to engines 

other than the original emission-data 

engine, they must be operated for the 

same number of hours before starting 

emission measurements that you used 

for the original emission-data engine, 

within one hour. For example, if the 

original emission-data engine operated 

for 8 hours before the low-hour 

emission test, operate the other test 

engines for 7 to 9 hours before starting 

emission measurements. 

§ 1054.245 How do I determine 

deterioration factors from exhaust 

durability testing? 

Establish deterioration factors to 

determine whether your engines will 

meet the exhaust emission standards for 

each pollutant throughout the useful 

life, as described in subpart B of this 

part and § 1054.240. This section 

describes how to determine 

deterioration factors, either with preexisting test data or with new emission 

measurements. 

(a) You may ask us to approve 

deterioration factors for an emission 

family based on emission measurements 

from similar engines if you have already 

given us these data for certifying other 

engines in the same or earlier model 

years. Use good engineering judgment to 

decide whether the two engines are 

similar. 

(b) If you are unable to determine 

deterioration factors for an emission 

family under paragraph (a) of this 

section, select engines, subsystems, or 

components for testing. Determine 

deterioration factors based on service 

accumulation and related testing. 

Include consideration of wear and other 

causes of deterioration expected under 

typical consumer use. Determine 

deterioration factors as follows: 

(1) You must measure emissions from 

the emission-data engine at a low-hour 

test point and the end of the useful life, 

except as specifically allowed by this 

paragraph (b). You may also test at 

evenly spaced intermediate points. 

Collect emission data using 

measurements to one more decimal 

place than the emission standard. 

(2) Operate the engine over a 

representative duty cycle for a period at 

least as long as the useful life (in hours). 

You may operate the engine 

continuously. You may also use an 

engine installed in nonroad equipment 

to accumulate service hours instead of 

running the engine only in the 

laboratory. 

(3) You may perform maintenance on 

emission-data engines as described in 

§ 1054.125 and 40 CFR part 1065, 

subpart E. 

(4) Calculate your deterioration factor 

as follows: 

(i) If you measure emissions at only 

two points to calculate your 

deterioration factor by dividing 

measured exhaust emissions at the end 

of the useful life by measured exhaust 

emissions at the low-hour test point. 

(ii) If you measure emissions at three 

or more points, use a linear leastsquares fit of your test data, but treat the 

low-hour test point as occurring at hour 

zero. Your deterioration factor is the 

ratio of the calculated emission level at 


sroberts on PROD1PC70 with PROPOSALS
28322 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

the point representing the full useful life 

to the calculated emission level at zero 

hours. 

(5) If you test more than one engine 

to establish deterioration factors, 

average the deterioration factors from all 

the engines before rounding. 

(6) If your durability engine fails 

between 80 percent and 100 percent of 

useful life, you may use the last 

emission measurement as the test point 

representing the full useful life, 

provided it occurred after at least 80 

percent of the useful life. 

(7) If your useful life is 1,000 hours or 

longer and your durability engine fails 

between 50 percent and 100 percent of 

useful life, you may extrapolate your 

emission results to determine the 

emission level representing the full 

useful life, provided emissions were 

measured at least once after 50 percent 

of the useful life. 

(8) Use good engineering judgment for 

all aspects of the effort to establish 

deterioration factors under this 

paragraph (b). 

(9) You may use other testing methods 

to determine deterioration factors, 

consistent with good engineering 

judgment, as long as we approve those 

methods in advance. 

(c) Include the following information 

in your application for certification: 

(1) If you use test data from a different 

emission family, explain why this is 

appropriate and include all the emission 

measurements on which you base the 

deterioration factor. 

(2) If you do testing to determine 

deterioration factors, describe the form 

and extent of service accumulation, 

including the method you use to 

accumulate hours. 

§ 1054.250 What records must I keep and 

what reports must I send to EPA? 

(a) If you produce engines under any 

provisions of this part that are related to 

production volumes, send the 

Designated Compliance Officer a report 

within 30 days after the end of the 

model year describing the total number 

of engines you produced in each engine 

family. For example, if you use special 

provisions intended for small-volume 

engine manufacturers, report your 

production volumes to show that you do 

not exceed the applicable limits. 

(b) Organize and maintain the 

following records: 

(1) A copy of all applications and any 

summary information you send us. 

(2) Any of the information we specify 

in § 1054.205 that you were not required 

to include in your application. 

(3) A detailed history of all emissiondata equipment. For each engine, 

describe all of the following: 

(i) The emission-data engine’s 

construction, including its origin and 

buildup, steps you took to ensure that 

it represents production engines, any 

components you built specially for it, 

and all the components you include in 

your application for certification. 

(ii) How you accumulated engine 

operating hours (service accumulation), 

including the dates and the number of 

hours accumulated. 

(iii) All maintenance, including 

modifications, parts changes, and other 

service, and the dates and reasons for 

the maintenance. 

(iv) All your emission tests, including 

documentation on routine and standard 

tests, as specified in part 40 CFR part 

1065, and the date and purpose of each 

test. 

(v) All tests to diagnose engine or 

emission control performance, giving 

the date and time of each and the 

reasons for the test. 

(vi) Any other significant events. 

(4) Production figures for each 

emission family divided by assembly 

plant. 

(5) Keep a list of engine identification 

numbers for all the engines you produce 

under each certificate of conformity. 

(c) Keep data from routine emission 

tests (such as test cell temperatures and 

relative humidity readings) for one year 

after we issue the associated certificate 

of conformity. Keep all other 

information specified in paragraph (a) of 

this section for eight years after we issue 

your certificate. 

(d) Store these records in any format 

and on any media, as long as you can 

promptly send us organized, written 

records in English if we ask for them. 

You must keep these records readily 

available. We may review them at any 

time. 

(e) Send us copies of any engine 

maintenance instructions or 

explanations if we ask for them. 

§ 1054.255 What decisions may EPA make 

regarding my certificate of conformity? 

(a) If we determine your application is 

complete and shows that the emission 

family meets all the requirements of this 

part and the Act, we will issue a 

certificate of conformity for your 

emission family for that model year. We 

may make the approval subject to 

additional conditions. 

(b) We may deny your application for 

certification if we determine that your 

emission family fails to comply with 

emission standards or other 

requirements of this part or the Act. Our 

decision may be based on a review of all 

information available to us. If we deny 

your application, we will explain why 

in writing. 

(c) In addition, we may deny your 

application or suspend or revoke your 

certificate if you do any of the 

following: 

(1) Refuse to comply with any testing 

or reporting requirements. 

(2) Submit false or incomplete 

information (paragraph (e) of this 

section applies if this is fraudulent). 

(3) Render inaccurate any test data. 

(4) Deny us from completing 

authorized activities (see 40 CFR 

1068.20). This includes a failure to 

provide reasonable assistance. 

(5) Produce engines or equipment for 

importation into the United States at a 

location where local law prohibits us 

from carrying out authorized activities. 

(6) Fail to supply requested 

information or amend your application 

to include all engines or equipment 

being produced. 

(7) Take any action that otherwise 

circumvents the intent of the Act or this 

part. 

(d) We may void your certificate if 

you do not keep the records we require 

or do not give us information as 

required under this part or the Act. 

(e) We may void your certificate if we 

find that you intentionally submitted 

false or incomplete information. 

(f) If we deny your application or 

suspend, revoke, or void your 

certificate, you may ask for a hearing 

(see § 1054.820). 

Subpart D—Production-line Testing 

§ 1054.300 Applicability. 

This subpart specifies requirements 

for engine manufacturers to test their 

production engines for exhaust 

emissions to ensure that the engines are 

being produced as described in the 

application for certification. The 

production-line verification described 

in 40 CFR part 1060, subpart D, applies 

for equipment and components for 

evaporative emissions. 

§ 1054.301 When must I test my 

production-line engines? 

(a) If you produce engines that are 

subject to the requirements of this part, 

you must test them as described in this 

subpart, except as follows: 

(1) Small-volume engine 

manufacturers may omit testing under 

this subpart. 

(2) We may exempt small-volume 

emission families from routine testing 

under this subpart. Request this 

exemption in the application for 

certification and include your basis for 

projecting a production volume below 

5,000 units. You must promptly notify 

us if your actual production exceeds 

5,000 units during the model year. If 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28323 

you exceed the production limit or if 

there is evidence of a nonconformity, 

we may require you to test productionline engines under this subpart, or 

under 40 CFR part 1068, subpart E, even 

if we have approved an exemption 

under this paragraph (a)(2). 

(b) We may suspend or revoke your 

certificate of conformity for certain 

engine families if your production-line 

engines do not meet the requirements of 

this part or you do not fulfill your 

obligations under this subpart (see 

§§ 1054.32fs5 and 1054.340). 

(c) Other regulatory provisions 

authorize us to suspend, revoke, or void 

your certificate of conformity, or order 

recalls for engine families without 

regard to whether they have passed 

these production-line testing 

requirements. The requirements of this 

subpart do not affect our ability to do 

selective enforcement audits, as 

described in 40 CFR part 1068. 

Individual engines in families that pass 

these production-line testing 

requirements must also conform to all 

applicable regulations of this part and 

40 CFR part 1068. 

(d) You may ask to use an alternate 

program for testing production-line 

engines. In your request, you must show 

us that the alternate program gives equal 

assurance that your products meet the 

requirements of this part. We may waive 

some or all of this subpart’s 

requirements if we approve your 

alternate program. 

(e) If you certify an engine family with 

carryover emission data, as described in 

§ 1054.235(c), and these equivalent 

engine families consistently pass the 

production-line testing requirements 

over the preceding two-year period, you 

may ask for a reduced testing rate for 

further production-line testing for that 

family. The minimum testing rate is one 

engine per engine family. If we reduce 

your testing rate, we may limit our 

approval to any number of model years. 

In determining whether to approve your 

request, we may consider the number of 

engines that have failed the emission 

tests. 

(f) We may ask you to make a 

reasonable number of production-line 

engines available for a reasonable time 

so we can test or inspect them for 

compliance with the requirements of 

this part. See 40 CFR 1068.27. 

§ 1054.305 How must I prepare and test my 

production-line engines? 

This section describes how to prepare 

and test production-line engines. You 

must assemble the test engine in a way 

that represents the assembly procedures 

for other engines in the engine family. 

You must ask us to approve any 

deviations from your normal assembly 

procedures for other production engines 

in the engine family. 

(a) Test procedures. Test your 

production-line engines using the 

applicable testing procedures in subpart 

F of this part to show you meet the 

emission standards in subpart B of this 

part. 

(b) Modifying a test engine. Once an 

engine is selected for testing (see 

§ 1054.310), you may adjust, repair, 

prepare, or modify it or check its 

emissions only if one of the following is 

true: 

(1) You document the need for doing 

so in your procedures for assembling 

and inspecting all your production 

engines and make the action routine for 

all the engines in the engine family. 

(2) This subpart otherwise specifically 

allows your action. 

(3) We approve your action in 

advance. 

(c) Engine malfunction. If an engine 

malfunction prevents further emission 

testing, ask us to approve your decision 

to either repair the engine or delete it 

from the test sequence. 

(d) Setting adjustable parameters. 

Before any test, we may require you to 

adjust any adjustable parameter to any 

setting within its physically adjustable 

range. 

(1) We may require you to adjust idle 

speed outside the physically adjustable 

range as needed, but only until the 

engine has stabilized emission levels 

(see paragraph (e) of this section). We 

may ask you for information needed to 

establish an alternate minimum idle 

speed. 

(2) We may specify adjustments 

within the physically adjustable range 

by considering their effect on emission 

levels, as well as how likely it is 

someone will make such an adjustment 

with in-use equipment. 

(3) We may specify an air-fuel ratio 

within the adjustable range specified in 

§ 1054.115(b). 

(e) Stabilizing emission levels. Use 

good engineering judgment to operate 

your engines before testing such that 

deterioration factors can be applied 

appropriately. Determine the 

stabilization period as follows: 

(1) For engine families with a useful 

life at or below 300 hours, operate the 

engine for the same number of hours 

before starting emission measurements 

that you used for the emission-data 

engine, within one hour. For example, 

if the emission-data engine operated for 

8 hours before the low-hour emission 

test, operate the test engines for 7 to 9 

hours before starting emission 

measurements. 

(2) For engine families with a useful 

life above 300 hours, operate each 

engine for no more than the greater of 

two periods: 

(i) 12 hours. 

(ii) The number of hours you operated 

your emission-data engine for certifying 

the engine family (see 40 CFR part 1065, 

subpart E, or the applicable regulations 

governing how you should prepare your 

test engine). 

(f) Damage during shipment. If 

shipping an engine to a remote facility 

for production-line testing makes 

necessary an adjustment or repair, you 

must wait until after the initial emission 

test to do this work. We may waive this 

requirement if the test would be 

impossible or unsafe, or if it would 

permanently damage the engine. Report 

to us, in your written report under 

§ 1054.345, all adjustments or repairs 

you make on test engines before each 

test. 

(g) Retesting after invalid tests. You 

may retest an engine if you determine 

an emission test is invalid under 

subpart F of this part. Explain in your 

written report reasons for invalidating 

any test and the emission results from 

all tests. If you retest an engine, you 

may ask us to substitute results of the 

new tests for the original ones. You 

must ask us within ten days of testing. 

We will generally answer within ten 

days after we receive your information. 

§ 1054.310 How must I select engines for 

production-line testing? 

(a) Test engines from each engine 

family as described in this section based 

on test periods, as follows: 

(1) For engine families with projected 

U.S.-directed production volume of at 

least 1,600, the test periods are 

consecutive quarters (3 months). 

However, if your annual production 

period is less than 12 months long, you 

may take the following alternative 

approach to define quarterly test 

periods: 

(i) If your annual production period is 

120 days or less, the whole model year 

constitutes a single test period. 

(ii) If your annual production period 

is 121 to 210 days, divide the annual 

production period evenly into two test 

periods. 

(iii) If your annual production period 

is 211 to 300 days, divide the annual 

production period evenly into three test 

periods. 

(iv) If your annual production period 

is 301 days or longer, divide the annual 

production period evenly into four test 

periods. 

(2) For engine families with projected 

U.S.-directed production volume below 


sroberts on PROD1PC70 with PROPOSALS
28324 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

1,600, the whole model year constitutes 

a single test period. 

(b) Early in each test period, randomly 

select and test an engine from the end 

of the assembly line for each engine 

family. 

(1) In the first test period for newly 

certified engines, randomly select and 

test one more engine. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. 

(2) In later test periods of the same 

model year, combine the new test result 

with all previous testing in the model 

year. Then, calculate the required 

sample size for the model year as 

described in paragraph (c) of this 

section. 

(3) In the first test period for engine 

families relying on previously submitted 

test data, combine the new test result 

with the last test result from the 

previous model year. Then, calculate 

the required sample size for the model 

year as described in paragraph (c) of this 

section. Use the last test result from the 

previous model year only for this first 

calculation. For all subsequent 

calculations, use only results from the 

current model year. 

(c) Calculate the required sample size 

for each engine family. Separately 

calculate this figure for HC+NOX and 

CO. The required sample size is the 

greater of these calculated values. Use 

the following equation: 

N = [(t95 × s)/(x ¥ STD)]2 + 1 

Where: 

N = Required sample size for the model year. 

t95 = 95% confidence coefficient, which 

depends on the number of tests 

completed, n, as specified in the table in 

paragraph (c)(1) of this section. It defines 

95% confidence intervals for a one-tail 

distribution. 

x = Mean of emission test results of the 

sample. 

STD = Emission standard (or family emission 

limit, if applicable). 

s = Test sample standard deviation (see 

paragraph (c)(2) of this section). 

(1) Determine the 95% confidence 

coefficient, t95, from the following table: 

n t95 n t95 n t95

2 6.31 12 1.80 22 1.72 

3 2.92 13 1.78 23 1.72 

4 2.35 14 1.77 24 1.71 

5 2.13 15 1.76 25 1.71 

6 2.02 16 1.75 26 1.71 

7 1.94 17 1.75 27 1.71 

8 1.90 18 1.74 28 1.70 

9 1.86 19 1.73 29 1.70 

10 1.83 20 1.73 30+ 1.70 

11 1.81 21 1.72 ................................... ...................................

(2) Calculate the standard deviation, 

s, for the test sample using the 

following formula: 

s = [S(Xi ¥ x)2/(n ¥ 1)]1/2

Where: 

Xi = Emission test result for an individual 

engine. 

n = The number of tests completed in an 

engine family. 

(d) Use final deteriorated test results 

to calculate the variables in the 

equations in paragraph (c) of this 

section (see § 1054.315(a)). 

(e) After each new test, recalculate the 

required sample size using the updated 

mean values, standard deviations, and 

the appropriate 95-percent confidence 

coefficient. 

(f) Distribute the remaining engine 

tests evenly throughout the rest of the 

year. You may need to adjust your 

schedule for selecting engines if the 

required sample size changes. If your 

scheduled quarterly testing for the 

remainder of the model year is sufficient 

to meet the calculated sample size, you 

may wait until the next quarter to do 

additional testing. Continue to 

randomly select engines from each 

engine family. 

(g) Continue testing until one of the 

following things happens: 

(1) After completing the minimum 

number of tests required in paragraph 

(b) of this section, the number of tests 

completed in an engine family, n, is 

greater than the required sample size, N, 

and the sample mean, x, is less than or 

equal to the emission standard. For 

example, if N = 5.1 after the fifth test, 

the sample-size calculation does not 

allow you to stop testing. 

(2) The engine family does not 

comply according to § 1054.315. 

(3) You test 30 engines from the 

engine family. 

(4) You test one percent of your 

projected annual U.S.-directed 

production volume for the engine 

family, rounded to the nearest whole 

number. Do not count an engine under 

this paragraph (g)(4) if it fails to meet an 

applicable emission standard. 

(5) You choose to declare that the 

engine family does not comply with the 

requirements of this subpart. 

(h) If the sample-size calculation 

allows you to stop testing for one 

pollutant but not another, you must 

continue measuring emission levels of 

all pollutants for any additional tests 

required under this section. However, 

you need not continue making the 

calculations specified in this section for 

the pollutant for which testing is not 

required. This paragraph (h) does not 

affect the number of tests required 

under this section or the remedial steps 

required under § 1054.320. 

(i) You may elect to test more 

randomly chosen engines than we 

require under this section. Include these 

engines in the sample-size calculations. 

§ 1054.315 How do I know when my engine 

family fails the production-line testing 

requirements? 

This section describes the pass-fail 

criteria for the production-line testing 

requirements. We apply these criteria on 

an emission-family basis. See § 1054.320 

for the requirements that apply to 

individual engines that fail a 

production-line test. 

(a) Calculate your test results as 

follows: 

(1) Initial and final test results. 

Calculate and round the test results for 

each engine. If you do several tests on 

an engine, calculate the initial test 

results, then add them together and 

divide by the number of tests and round 

for the final test results on that engine. 

(2) Final deteriorated test results. 

Apply the deterioration factor for the 

engine family to the final test results 

(see § 1054.240(c)). 

(3) Round deteriorated test results. 

Round the results to the number of 

decimal places in the emission standard 

expressed to one more decimal place. 

(b) Construct the following CumSum 

Equation for each engine family for 

HC+NOX and CO emissions: 

Ci = Max [0 or Ci¥1 + Xi ¥ (STD + 0.25 

× s)] 

Where: 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28325 

Ci = The current CumSum statistic. 

Ci¥1 = The previous CumSum statistic. For 

the first test, the CumSum statistic is 0 

(i.e. C1 = 0). 

Xi = The current emission test result for an 

individual engine. 

STD = Emission standard (or family emission 

limit, if applicable). 

(c) Use final deteriorated test results 

to calculate the variables in the equation 

in paragraph (b) of this section (see 

§ 1054.315(a)). 

(d) After each new test, recalculate the 

CumSum statistic. 

(e) If you test more than the required 

number of engines, include the results 

from these additional tests in the 

CumSum Equation. 

(f) After each test, compare the 

current CumSum statistic, Ci, to the 

recalculated Action Limit, H, defined as 

H = 5.0 × s. 

(g) If the CumSum statistic exceeds 

the Action Limit in two consecutive 

tests, the engine family fails the 

production-line testing requirements of 

this subpart. Tell us within ten working 

days if this happens. You may request 

to amend the application for 

certification to raise the FEL of the 

entire engine family as described in 

§ 1054.225(f). 

(h) If you amend the application for 

certification for an engine family under 

§ 1054.225, do not change any previous 

calculations of sample size or CumSum 

statistics for the model year. 

§ 1054.320 What happens if one of my 

production-line engines fails to meet 

emission standards? 

(a) If you have a production-line 

engine with final deteriorated test 

results exceeding one or more emission 

standards (see § 1054.315(a)), the 

certificate of conformity is automatically 

suspended for that failing engine. You 

must take the following actions before 

your certificate of conformity can cover 

that engine: 

(1) Correct the problem and retest the 

engine to show it complies with all 

emission standards. 

(2) Include in your written report a 

description of the test results and the 

remedy for each engine (see § 1054.345). 

(b) You may request to amend the 

application for certification to raise the 

FEL of the entire engine family at this 

point (see § 1054.225). 

§ 1054.325 What happens if an engine 

family fails the production-line testing 

requirements? 

(a) We may suspend your certificate of 

conformity for an engine family if it fails 

under § 1054.315. The suspension may 

apply to all facilities producing engines 

from an engine family, even if you find 

noncompliant engines only at one 

facility. 

(b) We will tell you in writing if we 

suspend your certificate in whole or in 

part. We will not suspend a certificate 

until at least 15 days after the engine 

family fails. The suspension is effective 

when you receive our notice. 

(c) Up to 15 days after we suspend the 

certificate for an engine family, you may 

ask for a hearing (see § 1054.820). If we 

agree before a hearing occurs that we 

used erroneous information in deciding 

to suspend the certificate, we will 

reinstate the certificate. 

(d) Section 1054.335 specifies steps 

you must take to remedy the cause of 

the engine family’s production-line 

failure. All the engines you have 

produced since the end of the last test 

period are presumed noncompliant and 

should be addressed in your proposed 

remedy. We may require you to apply 

the remedy to engines produced earlier 

if we determine that the cause of the 

failure is likely to have affected the 

earlier engines. 

(e) You may request to amend the 

application for certification to raise the 

FEL of the engine family before or after 

we suspend your certificate if you meet 

the requirements of § 1054.225(f). We 

will approve your request if the failure 

is not caused by a defect and it is clear 

that you used good engineering 

judgment in establishing the original 

FEL. 

§ 1054.330 May I sell engines from an 

engine family with a suspended certificate 

of conformity? 

You may sell engines that you 

produce after we suspend the engine 

family’s certificate of conformity under 

§ 1054.315 only if one of the following 

occurs: 

(a) You test each engine you produce 

and show it complies with emission 

standards that apply. 

(b) We conditionally reinstate the 

certificate for the engine family. We may 

do so if you agree to recall all the 

affected engines and remedy any 

noncompliance at no expense to the 

owner if later testing shows that the 

engine family still does not comply. 

§ 1054.335 How do I ask EPA to reinstate 

my suspended certificate? 

(a) Send us a written report asking us 

to reinstate your suspended certificate. 

In your report, identify the reason for 

noncompliance, propose a remedy for 

the engine family, and commit to a date 

for carrying it out. In your proposed 

remedy include any quality control 

measures you propose to keep the 

problem from happening again. 

(b) Give us data from production-line 

testing that shows the remedied engine 

family complies with all the emission 

standards that apply. 

§ 1054.340 When may EPA revoke my 

certificate under this subpart and how may 

I sell these engines again? 

(a) We may revoke your certificate for 

an engine family in the following cases: 

(1) You do not meet the reporting 

requirements. 

(2) Your engine family fails to comply 

with the requirements of this subpart 

and your proposed remedy to address a 

suspended certificate under § 1054.325 

is inadequate to solve the problem or 

requires you to change the engine’s 

design or emission control system. 

(b) To sell engines from an engine 

family with a revoked certificate of 

conformity, you must modify the engine 

family and then show it complies with 

the requirements of this part. 

(1) If we determine your proposed 

design change may not control 

emissions for the engine’s full useful 

life, we will tell you within five working 

days after receiving your report. In this 

case we will decide whether 

production-line testing will be enough 

for us to evaluate the change or whether 

you need to do more testing. 

(2) Unless we require more testing, 

you may show compliance by testing 

production-line engines as described in 

this subpart. 

(3) We will issue a new or updated 

certificate of conformity when you have 

met these requirements. 

§ 1054.345 What production-line testing 

records must I send to EPA? 

Do all the following things unless we 

ask you to send us less information: 

(a) Within 30 calendar days of the end 

of each test period, send us a report 

with the following information: 

(1) Describe any facility used to test 

production-line engines and state its 

location. 

(2) State the total U.S.-directed 

production volume and number of tests 

for each engine family. 

(3) Describe how you randomly 

selected engines. 

(4) Describe each test engine, 

including the engine family’s 

identification and the engine’s model 

year, build date, model number, 

identification number, and number of 

hours of operation before testing. 

(5) Identify how you accumulated 

hours of operation on the engines and 

describe the procedure and schedule 

you used. 

(6) Provide the test number; the date, 

time and duration of testing; test 

procedure; initial test results before and 

after rounding; final test results; and 

final deteriorated test results for all 


sroberts on PROD1PC70 with PROPOSALS
28326 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

tests. Provide the emission results for all 

measured pollutants. Include 

information for both valid and invalid 

tests and the reason for any 

invalidation. 

(7) Describe completely and justify 

any nonroutine adjustment, 

modification, repair, preparation, 

maintenance, or test for the test engine 

if you did not report it separately under 

this subpart. Include the results of any 

emission measurements, regardless of 

the procedure or type of engine. 

(8) Provide the CumSum analysis 

required in § 1054.315 and the samplesize calculation required in § 1054.310 

for each engine family. 

(9) Report on each failed engine as 

described in § 1054.320. 

(10) State the date the test period 

ended for each engine family. 

(b) We may ask you to add 

information to your written report so we 

can determine whether your new 

engines conform with the requirements 

of this subpart. 

(c) An authorized representative of 

your company must sign the following 

statement: 

We submit this report under sections 

208 and 213 of the Clean Air Act. Our 

production-line testing conformed 

completely with the requirements of 40 

CFR part 1054. We have not changed 

production processes or quality-control 

procedures for test engines in a way that 

might affect emission controls. All the 

information in this report is true and 

accurate to the best of my knowledge. I 

know of the penalties for violating the 

Clean Air Act and the regulations. 

(Authorized Company Representative) 

(d) Send electronic reports of 

production-line testing to the 

Designated Compliance Officer using an 

approved information format. If you 

want to use a different format, send us 

a written request with justification for a 

waiver. 

(e) We will send copies of your 

reports to anyone from the public who 

asks for them. Section 1054.815 

describes how we treat information you 

consider confidential. 

§ 1054.350 What records must I keep? 

(a) Organize and maintain your 

records as described in this section. We 

may review your records at any time. 

(b) Keep paper records of your 

production-line testing for eight years 

after you complete all the testing 

required for an engine family in a model 

year. You may use any additional 

storage formats or media if you like. 

(c) Keep a copy of the written reports 

described in § 1054.345. 

(d) Keep the following additional 

records: 

(1) A description of all test equipment 

for each test cell that you can use to test 

production-line engines. 

(2) The names of supervisors involved 

in each test. 

(3) The name of anyone who 

authorizes adjusting, repairing, 

preparing, or modifying a test engine 

and the names of all supervisors who 

oversee this work. 

(4) If you shipped the engine for 

testing, the date you shipped it, the 

associated storage or port facility, and 

the date the engine arrived at the testing 

facility. 

(5) Any records related to your 

production-line tests that are not in the 

written report. 

(6) A brief description of any 

significant events during testing not 

otherwise described in the written 

report or in this section. 

(7) Any information specified in 

§ 1054.345 that you do not include in 

your written reports. 

(e) If we ask, you must give us a more 

detailed description of projected or 

actual production figures for an engine 

family. We may ask you to divide your 

production figures by maximum engine 

power, displacement, fuel type, or 

assembly plant (if you produce engines 

at more than one plant). 

(f) Keep a list of engine identification 

numbers for all the engines you produce 

under each certificate of conformity. 

Give us this list within 30 days if we ask 

for it. 

(g) We may ask you to keep or send 

other information necessary to 

implement this subpart. 

Subpart E—In-use Testing 

§ 1054.401 General provisions. 

We may perform in-use testing of any 

engine or equipment subject to the 

standards of this part. 

Subpart F—Test Procedures 

§ 1054.501 How do I run a valid emission 

test? 

(a) Applicability. This subpart is 

addressed to you as a manufacturer, but 

it applies equally to anyone who does 

testing for you, and to us when we 

perform testing to determine if your 

engines or equipment meet emission 

standards. 

(b) General requirements. Use the 

equipment and procedures for sparkignition engines in 40 CFR part 1065 to 

determine whether engines meet the 

exhaust emission standards, as follows: 

(1) Measure the emissions of all 

regulated pollutants as specified in 

§ 1054.505 and 40 CFR part 1065. Note 

that this subpart F generally specifies 

test procedures for engines that are 

designed to operate without throttle 

control at a nominally constant speed 

(or a user-selectable speed); see 40 CFR 

1065.10 for instructions for using 

alternate procedures if following the 

specified procedures would result in 

emission measurements that do not 

represent in-use emissions. 

(2) Use the fuels and lubricants 

specified in 40 CFR part 1065, subpart 

H, for all the testing we require in this 

part. For service accumulation, use the 

test fuel or any commercially available 

fuel that is representative of the fuel that 

in-use engines will use. 

(3) Perform testing under the ambient 

conditions specified in 40 CFR 

1065.520. Emissions may not be 

corrected for the effects of test 

temperature, pressure, or humidity. 

(4) 40 CFR 1065.405 describes how to 

prepare an engine for testing, including 

steps to ensure that emission levels are 

stabilized. For engine families with a 

useful life of 300 hours or less, the 

following provisions apply: 

(i) We will not approve a stabilization 

period longer than 12 hours even if you 

show that emissions are not yet 

stabilized. 

(ii) Identify the number of hours you 

use to stabilize engines for low-hour 

emission measurements. You may 

consider emissions stable at any point 

less than 12 hours. For example, you 

may choose a point at which emission 

levels reach a low value before the 

effects of deterioration are established. 

(5) Prepare your engines for testing by 

installing a governor that you normally 

use on production engines, consistent 

with §§ 1054.235(b) and 1054.505. 

(6) During testing, supply the engine 

with fuel in a manner consistent with 

how it will be supplied with fuel in use. 

If you sell engines with complete fuel 

systems and your production engines 

will be equipped with a vapor line that 

routes running loss vapors into the 

engine’s intake system, you must 

measure exhaust emissions using a 

complete fuel system representing a 

production configuration that sends fuel 

vapors to the test engine’s intake system 

in a way that represents the expected inuse operation. 

(c) Special and alternate procedures. 

If you are unable to run the test cycle 

specified in this part for your engine, 

use an alternate test cycle that will 

result in a cycle-weighted emission 

measurement equivalent to the expected 

average in-use emissions. This cycle 

must be approved under 40 CFR 

1065.10. You may use other special or 

alternate procedures to the extent we 

allow them under 40 CFR 1065.10. 

(d) Wintertime engines. You may test 

wintertime engines at the ambient 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28327 

temperatures specified in 40 CFR 

1065.520, even though this does not 

represent in-use operation for these 

engines (40 CFR 1065.10(c)(1)). 

§ 1054.505 How do I test engines? 

(a) This section describes how to test 

engines under steady-state conditions. 

For handheld engines you must perform 

tests with discrete-mode sampling. For 

nonhandheld engines we allow you to 

perform tests with either discrete-mode 

or ramped-modal testing methods. You 

must use the same modal testing 

method for certification and all other 

testing you perform for an engine 

family. If we test your engines to 

confirm that they meet emission 

standards, we will use the modal testing 

method you select for your own testing. 

We may also perform other testing as 

allowed by the Clean Air Act. Conduct 

duty-cycle testing as follows: 

(1) For discrete-mode testing, sample 

emissions separately for each mode, 

then calculate an average emission level 

for the whole cycle using the weighting 

factors specified for each mode. In each 

mode, operate the engine for at least 5 

minutes, then sample emissions for at 

least 1 minute. Calculate cycle statistics 

for each mode and compare with the 

specified values in 40 CFR 1065.514 to 

confirm that the test is valid. 

(2) For ramped-modal testing, start 

sampling at the beginning of the first 

mode and continue sampling until the 

end of the last mode. Calculate 

emissions and cycle statistics the same 

as for transient testing as specified in 40 

CFR part 1065, subpart G. 

(b) Measure emissions by testing the 

engine on a dynamometer with the test 

procedures for constant-speed engines 

in 40 CFR part 1065 while using one of 

the steady-state duty cycles listed in this 

paragraph (b) to determine whether it 

meets the exhaust emission standards 

specified in § 1054.101(a). This 

requirement applies for all engines, 

including those not meeting the 

definition of ‘‘constant-speed engine’’ in 

40 CFR 1065.1001. 

(1) For handheld engines, use the twomode duty cycle described in paragraph 

(a) of Appendix II of this part. 

(2) For nonhandheld engines, use the 

six-mode duty cycle or the 

corresponding ramped-modal cycle 

described in paragraph (b) of Appendix 

II of this part. Control engine speeds and 

torques during idle mode as specified in 

paragraph (c) of this section and during 

full-load operating modes as specified 

in paragraph (d) of this section. For all 

other modes, control torque as needed 

to meet the cycle-validation criteria in 

40 CFR 1065.514; control the engine 

speed to within 5 percent of the 

nominal speed specified in paragraph 

(d) of this section or let the installed 

governor (in the production 

configuration) control engine speed. The 

governor may be adjusted before 

emission sampling to target the nominal 

speed identified in paragraph (d) of this 

section, but the installed governor must 

control engine speed throughout the 

emission-sampling period whether the 

governor is adjusted or not. (Note: 

Ramped-modal testing involves 

continuous sampling, so governor 

adjustments may not occur during such 

a test.) 

(c) During idle mode for nonhandheld 

engines, operate the engine with the 

following parameters: 

(1) Allow the engine to operate at the 

idle speed determined by the installed 

governor. If any production engines 

from the engine family have a userselectable idle speed, operate the engine 

with an installed governor that controls 

engine speed to the lowest speed setting 

from the engine family. 

(2) Keep engine torque under 5 

percent of maximum test torque. 

(3) You must conduct testing at the 

idle mode even if the allowable torque 

values overlap with those for another 

specified mode. 

(d) Establish full-load operating 

parameters for nonhandheld engines as 

follows: 

(1) In normal circumstances, select a 

test speed of either 3060 rpm or 3600 

rpm that is most appropriate for the 

engine family. If all the engines in the 

engine family are used in intermediatespeed equipment, select a test speed of 

3060 rpm. The test associated with 

intermediate-speed operation is referred 

to as the A Cycle. If all the engines in 

the engine family are used in ratedspeed equipment, select a test speed of 

3600 rpm. The test associated with 

rated-speed operation is referred to as 

the B Cycle. If an engine family includes 

engines used in both intermediate-speed 

equipment and rated-speed equipment, 

select the test speed for emission-data 

engines that will result in worst-case 

emissions. In unusual circumstances, 

you may ask to use a test speed different 

than that specified in this paragraph 

(d)(1) if it better represents in-use 

operation. 

(2) Operate the engine ungoverned at 

wide-open throttle at the test speed 

established in paragraph (d)(1) of this 

section until the engine reaches thermal 

stability as described in 40 CFR 

1065.530(a)(2)(ii). Record the torque 

value after stabilization. Use this value 

for the full-load torque setting and for 

denormalizing the rest of the duty cycle. 

(3) The provisions of this paragraph 

(d) apply instead of the engine mapping 

procedures in 40 CFR 1065.510. 

(e) See 40 CFR part 1065 for detailed 

specifications of tolerances and 

calculations. 

§ 1054.520 What testing must I perform to 

establish deterioration factors? 

Sections 1054.240 and 1054.245 

describe the required methods for 

testing to establish deterioration factors 

for an emission family. 

Subpart G—Special Compliance 

Provisions 

§ 1054.601 What compliance provisions 

apply to these engines? 

Engine and equipment manufacturers, 

as well as owners, operators, and 

rebuilders of engines subject to the 

requirements of this part, and all other 

persons, must observe the provisions of 

this part, the requirements and 

prohibitions in 40 CFR part 1068, and 

the provisions of the Act. 

§ 1054.610 What is the exemption for 

delegated final assembly? 

(a) The provisions of 40 CFR 1068.260 

related to delegated final assembly do 

not apply for handheld engines certified 

under this part 1054. The provisions of 

this section apply for nonhandheld 

engines instead of the provisions of 40 

CFR 1068.260 related to delegated final 

assembly. 

(b) Shipping an engine separately 

from emission-related components that 

you have specified as part of its certified 

configuration will not be a violation of 

the prohibitions in 40 CFR 

1068.101(a)(1) if you follow the 

provisions of paragraphs (c) through (e) 

of this section. These provisions apply 

without request; however, note that 

engines produced under this section 

may be subject to higher bond payments 

under § 1054.690. 

(c) If you do not manufacture the 

equipment in which the engine will be 

installed, you must meet all the 

following conditions with respect to 

aftertreatment components: 

(1) Apply for and receive a certificate 

of conformity for the engine and its 

emission control system before 

shipment. 

(2) Provide installation instructions in 

enough detail to ensure that the engine 

will be in its certified configuration if 

someone follows these instructions. 

Provide the installation instructions in a 

timely manner, generally directly after 

you receive an order for shipping 

engines or earlier. If you apply 

temporary labels as described in 

paragraph (c)(7)(i) of this section, 

include an instruction for the 


sroberts on PROD1PC70 with PROPOSALS
28328 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

equipment manufacturer to remove the 

temporary label after installing the 

appropriate aftertreatment component. 

(3) Have a contractual agreement with 

each equipment manufacturer obligating 

the equipment manufacturer to 

complete the engine assembly so it is in 

its certified configuration when final 

assembly is complete. The contractual 

agreement must include a commitment 

that the equipment manufacturer will 

do the following things: 

(i) Purchase the aftertreatment 

components you have specified in your 

application for certification. 

(ii) Provide the affidavits required 

under paragraph (c)(4) of this section. 

(iii) Provide production records that 

demonstrate compliance with your 

instructions. This may involve records 

to document purchases of aftertreatment 

components. 

(iv) Perform or allow audits as 

described in paragraph (c)(10) of this 

section. 

(4) Take appropriate additional steps 

to ensure that all engines will be in their 

certified configuration when installed 

by the equipment manufacturer. At a 

minimum, you must obtain annual 

affidavits from every equipment 

manufacturer to whom you sell engines 

under this section. The affidavits must 

identify the part numbers of the 

aftertreatment devices (or the 

corresponding alphanumeric 

designation established under paragraph 

(c)(8) of this section) that the equipment 

manufacturer installs on each engine 

model they purchase from you under 

this section and include confirmation 

that the number of aftertreatment 

devices received were sufficient for the 

number of engines involved. 

(5) Describe in your application for 

certification how you plan to use the 

provisions of this section and any steps 

you plan to take under paragraph (c)(4) 

of this section. 

(6) Keep records to document how 

many engines you produce under this 

exemption. Also, keep records to 

document your contractual agreements 

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

Keep all these records for five years after 

the end of the model year and make 

them available to us upon request. 

(7) Make sure the engine has the 

emission control information label we 

require under the standard-setting part. 

Include additional labeling using one of 

the following approaches: 

(i) Apply an additional temporary 

label or tag in a way that makes it 

unlikely that the engine will be installed 

in equipment other than in its certified 

configuration. The label or tag must 

identify the engine as incomplete and 

include a clear statement that failing to 

install the aftertreatment device, or 

otherwise bring the engine into its 

certified configuration, is a violation of 

federal law subject to civil penalty. 

(ii) Add the statement ‘‘DELEGATED 

ASSEMBLY’’ to the permanent emission 

control information label. 

(iii) Add an alphanumeric code that 

you identify in your application for 

certification to the permanent emission 

control information label and include 

additional label features such as 

coloring or shading to ensure that the 

equipment manufacturer will recognize 

that the engine needs an aftertreatment 

component to be in its certified 

configuration. 

(8) Engine manufacturers must 

establish an alphanumeric designation 

to identify each unique catalyst design 

(including size, washcoat, precious 

metal loading, supplier, and any other 

appropriate factors). Include this 

alphanumeric designation in the 

application for certification as described 

in § 1054.205. Engine manufacturers 

must also give instructions as 

appropriate to ensure that the external 

surface of the exhaust system includes 

stamping or other means to permanently 

display this designation and that it will 

be readily visible as much as possible 

when the equipment is fully assembled, 

consistent with the objective of 

verifying the identity of the installed 

catalyst. 

(9) You must have written 

confirmation that the vehicle 

manufacturer has ordered the 

appropriate type of aftertreatment 

components for an initial shipment of 

engines under this section. For the 

purpose of this paragraph, initial 

shipment means the first shipment of 

engines in a model year to a given 

equipment manufacturer for a given 

engine model. You must receive the 

written confirmation within 30 days of 

shipment. If you do not receive written 

confirmation within 30 days, you may 

not ship any more engines from that 

engine family to that equipment 

manufacturer until you have the written 

confirmation. Note that it may be 

appropriate to obtain subsequent 

written confirmations to ensure 

compliance with this section, as 

described in paragraph (c)(4) of this 

section. 

(10) You must perform or arrange for 

audits of equipment manufacturers as 

follows: 

(i) If you sell engines to 48 or more 

equipment manufacturers under the 

provisions of this section, you must 

annually perform or arrange for audits 

of twelve equipment manufacturers to 

whom you sell engines under this 

section. To select individual equipment 

manufacturers, divide all the affected 

equipment manufacturers into quartiles 

based on the number of engines they 

buy from you; select equal numbers of 

equipment manufacturers from each 

quartile each model year as much as 

possible. Vary the equipment 

manufacturers selected for auditing 

from year to year, though audits may be 

repeated in later model years if you find 

or suspect that a particular equipment 

manufacturer is not properly installing 

aftertreatment devices. 

(ii) If you sell engines to fewer than 

48 equipment manufacturers under the 

provisions of this section, set up a plan 

to perform or arrange for audits of each 

equipment manufacturer on average 

once every four model years. 

(iii) Starting with the 2019 model 

year, you may ask us to approve a 

reduced auditing rate if you sell engines 

to fewer than 120 equipment 

manufacturers under the provisions of 

this section. We may approve an 

alternate plan that involves performing 

or arranging for audits of each 

equipment manufacturer on average 

once every ten model years, as long as 

you show that you have met the 

auditing requirements in preceding 

years without finding noncompliance or 

improper procedures. You may also ask 

us to approve a reduced auditing rate 

after you have audited all affected 

equipment manufacturers at least once. 

(iv) To meet these audit requirements, 

you or your agent must at a minimum 

either review the equipment 

manufacturers production records and 

procedures, inspect the equipment 

manufacturer’s production operations, 

or inspect the final assembled products. 

You or your agent must review the 

available information as needed to 

demonstrate that the equipment 

manufacturer is complying with your 

installation instructions. This must 

include confirmation that the number of 

aftertreatment devices shipped was 

sufficient for the number of engines 

involved. Inspection of final assembled 

products may occur at any point in the 

product distribution system after the 

exemption defined in this section 

expires. For example, you or your agent 

may inspect products at the equipment 

manufacturer’s assembly or storage 

facilities, at regional distribution 

centers, or at retail locations. 

(v) You must keep records of these 

audits for five years after the end of the 

model year. 

(11) In your application for 

certification, give a detailed plan for 

performing audits as described in 

paragraph (c)(10) of this section. 

(12) If one of your engines produced 

under this section is selected for 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28329 

production-line testing, you must 

arrange to get a randomly selected 

aftertreatment component that will be 

used with the engine; you may not use 

aftertreatment components from your 

own inventory. You may obtain such 

aftertreatment components from any 

point in the normal distribution from 

the aftertreatment component 

manufacturer to the equipment 

manufacturer. Keep records showing 

how you randomly selected these 

aftertreatment components, consistent 

with the requirements of § 1054.305. 

(d) If you manufacture engines and 

install them in equipment you also 

produce, you must take steps to ensure 

that your facilities, procedures, and 

production records are set up to ensure 

that equipment and engines are 

assembled in their proper certified 

configurations. You may demonstrate 

compliance with this requirement by 

maintaining a database showing how 

you pair aftertreament components with 

the appropriate engines. 

(e) The following provisions apply if 

you ship engines without air filters or 

other portions of the air intake system 

such that the shipped engine is not in 

its certified configuration (for example, 

if you identify specific part numbers of 

air filters needed to ensure that the 

engine will meet emission standards but 

do not include those with the shipped 

engine): 

(1) If you are using the provisions of 

this section to ship an engine without 

aftertreatment, apply all the provisions 

of this section to ensure that each 

engine, including its intake system, is in 

its certified configuration before it 

reaches the ultimate purchaser. 

(2) If you are not using the provisions 

of this section to ship an engine without 

aftertreatment, shipping an engine 

without air-intake components that you 

have specified as part of its certified 

configuration will not be a violation of 

the prohibitions in 40 CFR 1068.101(a) 

if you follow the provisions specified in 

paragraphs (c)(1) through (7) of this 

section. If we find there is a problem, 

we may require you to perform audits as 

specified in paragraph (c)(10) of this 

section. 

(f) Once the equipment manufacturer 

takes possession of an engine exempted 

under this section and the engine 

reaches the point of final equipment 

assembly, the exemption expires and 

the engine is subject to all the 

prohibitions in 40 CFR 1068.101(a)(1). 

(g) You may use the provisions of this 

section for engines you sell to a 

distributor, subject to the following 

provisions: 

(1) You may establish a contractual 

arrangement in which you designate the 

distributor to be your agent in all 

matters related to compliance with the 

requirements of this section. 

(2) Without the contractual 

arrangement specified in paragraph 

(g)(2) of this section, a participating 

distributor is considered to be the 

equipment manufacturer for all 

applicable requirements and 

prohibitions. Such distributors must 

bring engines into their final certified 

configuration. This may include 

shipping the engine with the 

appropriate catalyst and air filter, but 

without completing the assembly with 

all the components. The exemptions 

expire for such engines when the 

distributor no longer has control of 

them. 

(h) You must notify us within 15 days 

if you find from an audit or another 

source that engines produced under this 

section are not in their certified 

configuration at the point of final 

assembly. If this occurs, send us a report 

within 90 days of the audit describing 

the circumstances related to the 

noncompliance. 

(i) We may suspend, revoke, or void 

an exemption under this section, as 

follows: 

(1) We may suspend, revoke, or void 

your exemption for a specific equipment 

manufacturer if any of the engines are 

not in their certified configuration after 

installation in that manufacturer’s 

equipment, or if we determine that the 

equipment manufacturer has otherwise 

failed to comply with the requirements 

of this section. 

(2) We may suspend, revoke, or void 

your exemption for the entire engine 

family if we determine that you have 

failed to comply with the requirements 

of this section. If we make an adverse 

decision with respect to the exemption 

for any of your engine families under 

this paragraph (i), this exemption will 

not apply for future certificates unless 

you demonstrate that the factors causing 

the noncompliance do not apply to the 

other engine families. 

(3) We may void your exemption for 

the entire engine family if you 

intentionally submit false or incomplete 

information or fail to keep and provide 

to EPA the records required by this 

section. Note that all records and reports 

required under this section (whether 

generated by the engine manufacturer, 

equipment manufacturer, or others) are 

subject to the prohibition in 40 CFR 

1068.101(a)(2), which prohibits the 

submission of false or incomplete 

information. For example, the affidavits 

required by this section are considered 

a submission. 

(j) You are liable for the in-use 

compliance of any engine that is exempt 

under this section. 

(k) It is a violation of the Act for any 

person to introduce into U.S. commerce 

a previously exempted engine, 

including as part of equipment, without 

complying fully with the installation 

instructions. 

(l) [Reserved] 

(m) You may ask us to provide a 

temporary exemption to allow you to 

complete production of your engines at 

different facilities, as long as you 

maintain control of the engines until 

they are in their certified configuration. 

We may require you to take specific 

steps to ensure that such engines are in 

their certified configuration before 

reaching the ultimate purchaser. You 

may request an exemption under this 

paragraph (m) in your application for 

certification, or in a separate 

submission. 

§ 1054.612 What special provisions apply 

for equipment manufacturers modifying 

certified engines? 

(a) General provisions. If you buy 

certified nonhandheld engines for 

installation in equipment you produce, 

but you install the engines such that 

they use intake or exhaust systems that 

are not part of the originally certified 

configuration, you become the engine 

manufacturer for those engines and 

must certify that they will meet 

emission standards. We will allow you 

to utilize the provisions for simplified 

certification specified in paragraph (b) 

of this section, as long as your design 

stays within the overall specifications 

from the original engine manufacturer 

(such as exhaust backpressure) and you 

use a catalyst as described in the 

original engine manufacturer’s 

application for certification. 

(b) Simplified certification. You must 

perform testing with an emission-data 

engine to show that you meet exhaust 

emission standards; however, you may 

use the deterioration factor from the 

original engine manufacturer. The 

production-line testing requirements in 

subpart D of this part do not apply for 

engines certified under this section. You 

must meet all the other requirements 

that apply to engine manufacturers for 

engines subject to standards under this 

part. The engine’s model year is 

determined by its date of final assembly. 

The engine family must have the same 

useful life value specified by the 

original engine manufacturer for that 

engine. In your application for 

certification describe any differences 

between the original engine 

manufacturer’s design and yours and 

explain why the deterioration data 


sroberts on PROD1PC70 with PROPOSALS
28330 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

generated by the original engine 

manufacturer is appropriate for your 

configuration. 

(c) Engine exemption. As an engine 

manufacturer, you may produce 

nonconforming engines for equipment 

manufacturers as allowed under this 

section. You do not have to request this 

exemption for your engines, but you 

must have written assurance from 

equipment manufacturers that they need 

a certain number of exempted engines 

under this section. Add a label or tag to 

the engine with at least the following 

information: 

(1) The heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) Engine displacement (in cubic 

centimeters). 

(4) The following statement: ‘‘THIS 

ENGINE IS TEMPORARILY EXEMPT 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS UNDER 40 

CFR 1054.612.’’. 

§ 1054.615 What is the exemption for 

engines certified to standards for Large SI 

engines? 

(a) An engine is exempt from the 

requirements of this part if it is in an 

emission family that has a valid 

certificate of conformity showing that it 

meets emission standards and other 

requirements under 40 CFR part 1048 

for the appropriate model year. 

(b) The only requirements or 

prohibitions from this part that apply to 

an engine that is exempt under this 

section are in this section. See 

paragraph (f) of this section to 

determine what evaporative 

requirements apply for equipment using 

these engines. 

(c) If your engines do not have the 

certificate required in paragraph (a) of 

this section, they will be subject to the 

provisions of this part. Introducing 

these engines into U.S. commerce 

without a valid exemption or certificate 

of conformity violates the prohibitions 

in 40 CFR 1068.101(a). 

(d) Engines exempted under this 

section are subject to all the 

requirements affecting engines under 40 

CFR part 1048. The requirements and 

restrictions of 40 CFR part 1048 apply 

to anyone manufacturing these engines, 

anyone manufacturing equipment that 

uses these engines, and all other persons 

in the same manner as if these were 

nonroad spark-ignition engines above 19 

kW. 

(e) Engines exempted under this 

section may not generate or use 

emission credits under this part 1054. 

§ 1054.620 What are the provisions for 

exempting engines used solely for 

competition? 

The provisions of this section apply 

for new engines and equipment built on 

or after January 1, 2009. 

(a) We may grant you an exemption 

from the standards and requirements of 

this part for a new engine on the 

grounds that it is to be used solely for 

competition. The requirements of this 

part, other than those in this section, do 

not apply to engines that we exempt for 

use solely for competition. 

(b) We will exempt engines that we 

determine will be used solely for 

competition. The basis of our 

determination is described in 

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

Exemptions granted under this section 

are good for only one model year and 

you must request renewal for each 

subsequent model year. We will not 

approve your renewal request if we 

determine the engine will not be used 

solely for competition. 

(c) Engines meeting all the following 

criteria are considered to be used solely 

for competition: 

(1) Neither the engine nor any 

equipment containing the engine may 

be displayed for sale in any public 

dealership or otherwise offered for sale 

to the general public. 

(2) Sale of the equipment in which the 

engine is installed must be limited to 

professional competition teams, 

professional competitors, or other 

qualified competitors. 

(3) The engine and the equipment in 

which it is installed must have 

performance characteristics that are 

substantially superior to noncompetitive 

models. 

(4) The engines are intended for use 

only as specified in paragraph (e) of this 

section. 

(d) You may ask us to approve an 

exemption for engines not meeting the 

criteria listed in paragraph (c) of this 

section as long as you have clear and 

convincing evidence that the engines 

will be used solely for competition. 

(e) Engines are considered to be used 

solely for competition only if their use 

is limited to competition events 

sanctioned by a state or federal 

government agency or another widely 

recognized public organization with 

authorizing permits for participating 

competitors. Operation of such engines 

may include only competition events or 

trials to qualify for competition events. 

Authorized attempts to set performance 

records (and the associated official 

trials) are also considered competition 

events. Engines will not be considered 

to be used solely for competition if they 

are ever used for any recreational or 

other noncompetitive purpose. Any use 

of exempt engines in recreational events 

is a violation of 40 CFR 1068.101. 

(f) You must permanently label 

engines exempted under this section to 

clearly indicate that they are to be used 

only for competition. Failure to properly 

label an engine will void the exemption 

for that engine. 

(g) If we request it, you must provide 

us any information we need to 

determine whether the engines are used 

solely for competition. This would 

include documentation regarding the 

number of engines and the ultimate 

purchaser of each engine as well as any 

documentation showing an equipment 

manufacturer’s request for an exempted 

engine. Keep these records for five 

years. 

§ 1054.625 What requirements apply under 

the Transition Program for Equipment 

Manufacturers? 

The provisions of this section allow 

equipment manufacturers to produce 

equipment with Class II engines that are 

subject to less stringent exhaust 

emission standards after the Phase 3 

emission standards begin to apply. To 

be eligible to use these provisions, you 

must follow all the instructions in this 

section. See § 1054.626 for requirements 

that apply specifically to companies that 

manufacture equipment outside the 

United States and to companies that 

import such equipment without 

manufacturing it. Engines and 

equipment you produce under this 

section are exempt from the 

prohibitions in 40 CFR 1068.101(a)(1) 

with respect to exhaust emissions, 

subject to the provisions of this section. 

Equipment exempted under this section 

must meet all applicable requirements 

related to evaporative emissions, except 

as described in § 1054.627. 

(a) General. If you are an equipment 

manufacturer, you may introduce into 

U.S. commerce limited numbers of 

nonroad equipment with Class II 

engines exempted under this section. 

You may use the exemptions in this 

section only if you have primary 

responsibility for designing and 

manufacturing equipment and your 

manufacturing procedures include 

installing some engines in this 

equipment. Consider all U.S.-directed 

equipment production in showing that 

you meet the requirements of this 

section, including those from any parent 

or subsidiary companies and those from 

any other companies you license to 

produce equipment for you. If you 

produce a type of equipment that has 

more than one engine, count each 

engine separately. These provisions are 

available during the first four model 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28331 

years that the Phase 3 exhaust emission 

standards apply. 

(b) Allowances. Calculate how many 

pieces of equipment with exempted 

engines you may produce under this 

section by determining your total U.S.- 

directed production volume of 

equipment with Class II engines from 

January 1, 2007 through December 31, 

2009, calculating your annual average 

production, and multiplying this total 

by 0.3. The same calculation applies for 

small-volume equipment manufacturers, 

except that average annual production is 

multiplied by 2.0. For companies with 

no eligible production in a given year, 

calculate annual average production 

based only on those years in which you 

produce equipment with Class II 

engines for sale in the United States. 

Use these allowances for equipment 

using model year 2011 and later Class 

II engines. You may use these 

allowances for equipment you produce 

before December 31, 2014. 

(c) Access to exempted engines. You 

may use one of the following 

approaches to get exempted engines 

under this section: 

(1) Request a certain number of 

exempted Class II engines from the 

engine manufacturer as described in 

paragraph (j)(1) of this section. 

(2) You may make arrangements with 

the engine manufacturer to receive an 

engine without an exhaust system and 

install exhaust systems without 

aftertreatment that would otherwise be 

required to meet Phase 3 standards, as 

described in paragraph (j)(2) of this 

section. You must follow the engine 

manufacturer’s instructions for 

installing noncatalyzed mufflers. You 

must keep records to show which 

engines you modify as described in this 

paragraph (c)(2) and make them 

available to the engine manufacturer for 

any auditing under the provisions of 

§ 1054.610. If you do not place the label 

we specify in paragraph (f) of this 

section adjacent to the engine 

manufacturer’s emission control 

information label, you must place an 

additional permanent label as close as 

possible to the engine’s emission control 

information label where it will be 

readily visible in the final installation 

with at least the following items: 

(i) Your corporate name and 

trademark. 

(ii) The following statement: ‘‘THIS 

ENGINE MEETS PHASE 2 STANDARDS 

UNDER § 1054.625(c)(2).’’. 

(d) Inclusion of engines not subject to 

Phase 3 standards. The following 

provisions apply to engines that are not 

subject to Phase 3 standards: 

(1) If you use the provisions of 40 CFR 

1068.105(a) to use up your inventories 

of engines not certified to new emission 

standards, do not include these units in 

your count of equipment with exempted 

engines under paragraph (g)(2) of this 

section. 

(2) If you install engines that are 

exempted from the Phase 3 standards 

for any reason, other than for 

equipment-manufacturer allowances 

under this section, do not include these 

units in your count of equipment with 

exempted engines under paragraph 

(g)(2) of this section. For example, if we 

grant a hardship exemption for the 

engine manufacturer, you may count 

these as compliant engines under this 

section. This paragraph (d)(2) applies 

only if the engine has a permanent label 

describing why it is exempted from the 

Phase 3 standards. 

(e) Standards. If you produce 

equipment with exempted engines 

under this section, the engines must 

meet the Phase 2 emission standards 

specified in 40 CFR part 90. 

(f) Equipment labeling. You must add 

a permanent label, written legibly in 

English, to the engine or another readily 

visible part of each piece of equipment 

with exempted engines you produce 

under this section. This label, which 

supplements the engine manufacturer’s 

emission control information label, 

must include at least the following 

items: 

(1) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) The calendar year in which the 

equipment is manufactured. 

(4) The name, e-mail address, and 

phone number of a person to contact for 

further information. 

(5) The following statement: THIS 

EQUIPMENT [or identify the type of 

equipment] HAS AN ENGINE THAT 

MEETS U.S. EPA EMISSION 

STANDARDS UNDER 40 CFR 1054.625. 

(g) Notification and reporting. You 

must notify us of your intent to produce 

equipment under the provisions of this 

section and send us an annual report to 

verify that you are not exceeding the 

production limits for equipment with 

exempted engines, as follows: 

(1) Send the Designated Compliance 

Officer and the Designated Enforcement 

Officer a written notice of your intent by 

June 30, 2010 including all the 

following: 

(i) Your company’s name and address, 

and your parent company’s name and 

address, if applicable. Also identify the 

names of any other companies operating 

under the same parent company. 

(ii) Whom to contact for more 

information. 

(iii) The calendar years in which you 

expect to use the exemption provisions 

of this section. 

(iv) The name and address of the 

company that produces the engines you 

will be using for the equipment 

exempted under this section. 

(v) How many pieces of equipment 

with exempted engines you may sell 

under this section, as described in 

paragraph (b) of this section. Include 

your production figures for the period 

from January 1, 2007 through December 

31, 2009, including figures broken down 

by equipment model and calendar year. 

You may send corrected figures with 

lower production volumes anytime after 

your initial notification. To make a 

correction for higher production 

volumes, send us the corrected figures 

by September 30, 2010. We may ask you 

to give us additional information to 

confirm your production figures. 

(2) For each year that you use the 

provisions of this section, send the 

Designated Compliance Officer and the 

Designated Enforcement Officer a 

written report by March 31 of the 

following year. Identify in your report 

how many pieces of equipment with 

exempted engines you sold in the 

preceding year, based on actual U.S.- 

directed production information. If you 

produce equipment in the 2010 calendar 

year with exempted engines from the 

2011 model year, include these units in 

your March 31, 2012 report. Also 

identify cumulative figures describing 

how many pieces of equipment with 

exempted engines you have produced 

for all the years you used the provisions 

of this section. 

(3) If you send your initial notification 

under paragraph (g)(1) of this section 

after the specified deadline, we may 

approve your use of allowances under 

this section. In your request, describe 

why you were unable to meet the 

deadline. 

(h) Recordkeeping. Keep the following 

records of all equipment with exempted 

engines you produce under this section 

until at least December 31, 2019: 

(1) The model number for each piece 

of equipment. 

(2) Detailed figures for determining 

how many pieces of equipment with 

exempted engines you may produce 

under this section, as described in 

paragraph (b) of this section. 

(3) The notifications and reports we 

require under paragraph (g) of this 

section. 

(i) Enforcement. Producing more 

exempted engines or equipment than we 

allow under this section or installing 

engines that do not meet the emission 

standards of paragraph (e) of this section 

violates the prohibitions in 40 CFR 


sroberts on PROD1PC70 with PROPOSALS
28332 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

1068.101(a)(1). You must give us the 

records we require under this section if 

we ask for them (see 40 CFR 

1068.101(a)(2)). 

(j) Provisions for engine 

manufacturers. As an engine 

manufacturer, you may produce 

exempted engines without request 

under this section using one of the 

following approaches: 

(1) The provisions of this paragraph 

(j)(1) apply if you do not use the 

delegated-assembly provisions of 

§ 1054.610 for any of the engines in an 

engine family. You must have written 

assurance from equipment 

manufacturers or your authorized 

distributors that they need a certain 

number of exempted engines under this 

section. Keep these records for at least 

five years after you stop producing 

engines under this section. The engines 

must meet the emission standards in 

paragraph (e) of this section and you 

must meet all the requirements of 40 

CFR 1068.265. You must label the 

engines using one of the following 

approaches: 

(i) Meet the labeling requirements in 

40 CFR 90.114, but add the following 

statement instead of the compliance 

statement in 40 CFR 90.114(b)(7): THIS 

ENGINE MEETS U.S. EPA EMISSION 

STANDARDS UNDER 40 CFR 1054.625 

AND MUST BE USED ONLY UNDER 

THOSE FLEXIBILITY PROVISIONS. 

(ii) Meet the labeling requirements in 

§ 1054.135 for Phase 3 engines and add 

the separate label described in 

paragraph (c)(2) of this section. 

(2) The following provisions apply if 

you notify us that you plan to use the 

delegated-assembly provisions of 

§ 1054.610 for one or more equipment 

manufacturers for an engine family: 

(i) Include test data in your 

application for certification showing 

that your engines will meet the 

standards specified in paragraph (e) of 

this section if they have a noncatalyzed 

muffler in place of the aftertreatment 

that is part of the certified configuration. 

This may be based on emission 

measurements from previous model 

years if the data is still appropriate for 

the current engine configuration. 

(ii) Produce all your engines with the 

emission control information label we 

specify in § 1054.135. The engines must 

also have the label we specify in 

§ 1054.610(c)(7), with additional 

information summarizing the equipment 

manufacturers obligations under 

paragraph (c)(2) of this section. 

(iii) Include in the installation 

instructions required under § 1054.610 

any appropriate instructions or 

limitations on installing noncatalyzed 

mufflers to ensure that the fully 

assembled engine will meet the 

emission standards specified in 

paragraph (e) of this section. You may 

identify an appropriate range of 

backpressures, but this may not involve 

any instructions related to changing the 

fuel system for different fueling rates. 

(iv) If your engine family generates 

exhaust emission credits under subpart 

H of this part, you must multiply the 

credits calculated under § 1054.705 by 

0.9. This is based on the expectation 

that equipment manufacturers will 

modify 10 percent of the engines to no 

longer meet Phase 3 standards. 

(k) Additional exemptions for midsized companies. If your average annual 

production of equipment with Class II 

engines as described in paragraph (b) of 

this section is between 5,000 and 50,000 

units, you may request additional 

engine allowances under this section. 

To do this, notify us by January 31, 2010 

if you believe the provisions of this 

section will not allow you to sell certain 

equipment models starting in the 2011 

model year. In your notification, show 

us that you will be able to produce a 

number of Class II equipment models 

representing at least half your total U.S.- 

directed production volume in the 2011 

model year that will be compliant with 

all Phase 3 exhaust and evaporative 

emission standards. Also describe why 

you need more allowances under this 

section to accommodate anticipated 

changes in engine designs resulting 

from engine manufacturers’’ compliance 

with changing exhaust emission 

standards. Include a proposal for the 

number of additional allowances you 

would need, with supporting rationale. 

We may approve allowances up to a 

total of 100 percent of the average 

annual U.S.-directed production volume 

you report under paragraph (b) of this 

section (in place of the 30 percent that 

is otherwise allowed). 

§ 1054.626 What special provisions apply 

to equipment imported under the Transition 

Program for Equipment Manufacturers? 

This section describes requirements 

that apply to equipment manufacturers 

using the provisions of § 1054.625 for 

equipment produced outside the United 

States. Note that § 1054.625 limits these 

provisions to equipment manufacturers 

that install some engines and have 

primary responsibility for designing and 

manufacturing equipment. Companies 

that import equipment into the United 

States without meeting these criteria are 

not eligible for allowances under 

§ 1054.625. Such importers may import 

equipment with exempted engines only 

as described in paragraph (b) of this 

section. 

(a) As a foreign equipment 

manufacturer, you or someone else may 

import equipment with exempted 

engines under this section if you 

comply with the provisions in 

§ 1054.625 and commit to the following: 

(1) Give any EPA inspector or auditor 

complete and immediate access to 

inspect and audit, as follows: 

(i) Inspections and audits may be 

announced or unannounced. 

(ii) Inspections and audits may be 

performed by EPA employees or EPA 

contractors. 

(iii) You must provide access to any 

location where—

(A) Any nonroad engine, equipment, 

or vehicle is produced or stored. 

(B) Documents related to 

manufacturer operations are kept. 

(C) Equipment, engines, or vehicles 

are tested or stored for testing. 

(iv) You must provide any documents 

requested by an EPA inspector or 

auditor that are related to matters 

covered by the inspections or audit. 

(v) EPA inspections and audits may 

include review and copying of any 

documents related to demonstrating 

compliance with the exemptions in 

§ 1054.625. 

(vi) EPA inspections and audits may 

include inspection and evaluation of 

complete or incomplete equipment, 

engines, or vehicles, and interviewing 

employees. 

(vii) You must make any of your 

employees available for interview by the 

EPA inspector or auditor, on request, 

within a reasonable time period. 

(viii) You must provide English 

language translations of any documents 

to an EPA inspector or auditor, on 

request, within 10 working days. 

(ix) You must provide Englishlanguage interpreters to accompany EPA 

inspectors and auditors, on request. 

(2) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

(3) The forum for any civil or criminal 

enforcement action related to the 

provisions of this section for violations 

of the Clean Air Act or regulations 

promulgated thereunder shall be 

governed by the Clean Air Act. 

(4) The substantive and procedural 

laws of the United States shall apply to 

any civil or criminal enforcement action 

against you or any of your officers or 

employees related to the provisions of 

this section. 

(5) Provide the notification required 

by § 1054.625(g). Include in the notice 

of intent in § 1054.625(g)(1) a 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28333 

commitment to comply with the 

requirements and obligations of 

§ 1054.625 and this section. This 

commitment must be signed by the 

owner or president. 

(6) You, your agents, officers, and 

employees must not seek to detain or to 

impose civil or criminal remedies 

against EPA inspectors or auditors, 

whether EPA employees or EPA 

contractors, for actions performed 

within the scope of EPA employment 

related to the provisions of this section. 

(7) By submitting notification of your 

intent to use the provisions of 

§ 1054.625, producing and exporting for 

resale to the United States nonroad 

equipment under this section, or taking 

other actions to comply with the 

requirements of this part, you, your 

agents, officers, and employees, without 

exception, become subject to the full 

operation of the administrative and 

judicial enforcement powers and 

provisions of the United States as 

described in 28 U.S.C. 1605(a)(2), 

without limitation based on sovereign 

immunity, for conduct that violates the 

requirements applicable to you under 

this part 1054—including such conduct 

that violates 18 U.S.C. 1001, 42 U.S.C. 

7413(c)(2), or other applicable 

provisions of the Clean Air Act—with 

respect to actions instituted against you 

and your agents, officers, and employees 

in any court or other tribunal in the 

United States. 

(8) Any report or other document you 

submit to us must be in the English 

language, or include a complete 

translation in English. 

(9) You must post a bond to cover any 

potential enforcement actions under the 

Clean Air Act before you or anyone else 

imports your equipment with exempted 

engines under this section, as specified 

in § 1054.690. Use the bond amount 

specified in § 1054.690 without 

adjusting for inflation. Note that you 

may post a single bond to meet the 

requirements of this section and 

§ 1054.690 together. 

(b) The provisions of this paragraph 

(b) apply to importers that do not install 

engines into equipment and do not have 

primary responsibility for designing and 

manufacturing equipment. Such 

importers may import equipment with 

engines exempted under § 1054.625 

only if each engine is exempted under 

an allowance provided to an equipment 

manufacturer meeting the requirements 

of § 1054.625 and this section. You must 

notify us of your intent to use the 

provisions of this section and send us 

an annual report, as follows: 

(1) Before January 1 of the first year 

you intend to use the provisions of this 

section, send the Designated 

Compliance Officer and the Designated 

Enforcement Officer a written notice of 

your intent, including: 

(i) Your company’s name and address, 

and your parent company’s name and 

address, if applicable. 

(ii) The name and address of the 

companies that produce the equipment 

and engines you will be importing 

under this section. 

(iii) Your best estimate of the number 

of units you will import under this 

section in the upcoming calendar year, 

broken down by equipment 

manufacturer. 

(2) For each year that you use the 

provisions of this section, send the 

Designated Compliance Officer and the 

Designated Enforcement Officer a 

written report by March 31 of the 

following year. Include in your report 

the total number of engines you 

imported under this section in the 

preceding calendar year, broken down 

by engine manufacturer and by 

equipment manufacturer. 

§ 1054.627 How does the Transition 

Program for Equipment Manufacturers 

relate to evaporative emissions? 

The provisions of this section allow 

equipment manufacturers to produce 

equipment that does not comply with 

certain requirements related to 

evaporative emissions in conjunction 

with the Transition Program for 

Equipment Manufacturers in § 1054.625. 

(a) You may use the provisions of this 

section only after you have used up any 

available allowances under 

§ 1054.145(e). 

(b) For any equipment using Class II 

engines that you produce under the 

flexibility provisions of § 1054.625, the 

following special provisions apply with 

respect to evaporative emissions: 

(1) You may use rotation-molded fuel 

tanks that do not meet requirements 

related to the fuel tank permeation 

standards specified in § 1054.110. You 

may not apply the provisions of this 

paragraph (b)(1) to fuel tanks that are 

not rotation-molded. 

(2) You may produce equipment that 

does not meet requirements related to 

the running loss standard specified in 

§ 1054.110. 

(3) If you use the provisions of this 

section, add the following statement to 

the label specified in § 1054.625(f): 

THIS EQUIPMENT [or identify the 

type of equipment] IS EXEMPT FROM 

[fuel tank permeation or running loss 

standards, as applicable] UNDER 40 

CFR 1054.627. 

(c) You may not use the provisions of 

this section for equipment that you do 

not produce under the flexibility 

provisions of § 1054.625. 

§ 1054.630 What provisions apply for 

importation of individual items for personal 

use? 

(a) Any individual may import 

previously used nonconforming engines 

for purposes other than resale, but no 

more than once in any five-year period. 

This may include up to three 

nonconforming engines imported at the 

same time. To import engines under this 

section, provide to the Customs official 

the following information: 

(1) Identify your name, address, and 

telephone number. 

(2) If you are importing engines under 

this section on behalf of another person, 

identify the ultimate engine owner’s 

name, address, and telephone number. 

(3) Identify the total number of 

engines you are importing and specify 

the make, model, identification number, 

and original production year of each 

engine. 

(4) State: ‘‘I am importing these 

previously used engines for personal 

use. I have not imported any engines 

under the provisions of 40 CFR 

1054.630 within the previous five years. 

I am not importing these engines for 

purpose of resale. I authorize EPA 

enforcement officers to inspect my 

engines and my facilities as permitted 

by the Clean Air Act.’’. 

(b) We may require you to send us 

additional information, but you do not 

need written approval from us to import 

engines under this section. We will also 

not require a U.S. Customs Service bond 

for engines you import under this 

section. 

(c) The provisions of this section may 

not be used to circumvent emission 

standards that apply to new engines 

under this part. For example, you may 

not purchase new engines and use them 

in a trivial manner outside of the United 

States to qualify for importation under 

this section. 

(d) If you violate the provisions of this 

section, or submit false information to 

obtain this exemption, you will be 

subject to civil penalties as specified in 

40 CFR 1068.101(a)(2) and (b)(5). 

§ 1054.635 What special provisions apply 

for small-volume engine and equipment 

manufacturers? 

This section describes how we apply 

the special provisions in this part for 

small-volume engine and equipment 

manufacturers. 

(a) If you qualify under paragraph (1) 

or (2) of the definition of small-volume 

engine manufacturer or under paragraph 

(1) or (2) of the definition small-volume 

equipment manufacturer in § 1054.801, 

the small-volume provisions apply as 

specified in this part. 

(b) If you are a small business (as 

defined by the Small Business 


sroberts on PROD1PC70 with PROPOSALS
28334 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Administration at 13 CFR 121.201) that 

manufactures nonroad spark-ignition 

engines or equipment, but you do not 

qualify under paragraph (1) or (2) of the 

definition of small-volume engine 

manufacturer or under paragraph (1) or 

(2) of the definition of small-volume 

equipment manufacturer in § 1054.801, 

you may ask us to designate you to be 

a small-volume engine or equipment 

manufacturer. You may do this whether 

you began manufacturing engines 

before, during, or after 2007. We may set 

other reasonable conditions that are 

consistent with the intent of this section 

and the Act. 

(c) If you use any of the provisions of 

this part that apply specifically to smallvolume manufacturers and we find that 

you exceed the production limits or 

otherwise do not qualify as a smallvolume manufacturer, we may consider 

you to be in violation of the 

requirements that apply for companies 

that are not small-volume manufacturers 

for those engines produced in excess of 

the specified production limits. 

§ 1054.640 What special provisions apply 

to branded engines? 

The following provisions apply if you 

identify the name and trademark of 

another company instead of your own 

on your emission control information 

label, as provided by § 1054.135(c)(2): 

(a) You must have a contractual 

agreement with the other company that 

obligates that company to take the 

following steps: 

(1) Meet the emission warranty 

requirements that apply under 

§ 1054.120. This may involve a separate 

agreement involving reimbursement of 

warranty-related expenses. 

(2) Report all warranty-related 

information to the certificate holder. 

(b) In your application for 

certification, identify the company 

whose trademark you will use and 

describe the arrangements you have 

made to meet your requirements under 

this section. 

(c) You remain responsible for 

meeting all the requirements of this 

chapter, including warranty and defectreporting provisions. 

§ 1054.645 What special provisions apply 

for converting an engine to use an alternate 

fuel? 

(a) Converting a certified new engine 

to run on a different fuel violates 40 

CFR 1068.101(a)(1) if the modified 

engine is not covered by a certificate of 

conformity. 

(b) Converting a certified engine that 

is not new to run on a different fuel 

violates 40 CFR 1068.101(b)(1) if the 

modified engine is not covered by a 

certificate of conformity. We may 

specify alternate certification provisions 

consistent with the requirements of this 

part. 

(c) Engines may be certified as 

required in this section based on the 

certification procedures for new engines 

or on those for aftermarket parts 

specified in 40 CFR part 85, subpart V. 

§ 1054.650 What special provisions apply 

for adding or changing governors? 

The special provisions in this section 

apply for engines that will not have 

constant-speed governors when 

installed in equipment. Paragraph (a) of 

this section also applies for any engines 

shipped without installed governors. 

(a) The representative-testing 

requirements of 40 CFR 1065.10(c)(1) 

related to in-use duty cycles do not 

apply to engines you produce and ship 

without constant-speed governors if you 

comply with all the following 

requirements: 

(1) You must have test data showing 

that the effectiveness of the engine’s 

emission controls over the expected 

range of in-use operation will be similar 

to that measured over the specified duty 

cycle. Alternatively, if your emission 

controls depend on maintaining a 

consistent air-fuel ratio, you may 

demonstrate that the engine is calibrated 

to maintain a consistent air-fuel ratio 

over the expected range of in-use 

operation. 

(2) Describe in your application for 

certification the data and analysis that 

supports your conclusion. 

(b) As a distributor or equipment 

manufacturer, it is not a violation of the 

tampering provisions in 40 CFR 

1068.101(b)(1) for you to remove a 

constant-speed governor that is covered 

by a certificate of conformity, as long as 

you meet all the following requirements: 

(1) You must have a reasonable 

technical basis for believing that the 

effectiveness of the modified engine’s 

emission controls over the expected 

range of in-use operation will be similar 

to that measured over the specified duty 

cycle. This may require that you have 

test data. You are not required to apply 

for a new certificate of conformity. 

(2) You must notify the engine 

manufacturer before modifying the 

engine. You must follow any 

instructions from the engine 

manufacturer related to the emission 

control system. 

(3) You may not make any other 

changes to the engine that would 

remove it from its certified 

configuration. 

(4) You must keep record of the 

number of engines you modify in each 

model year, a description of your 

procedures for modifying engines 

(including part numbers of the parts you 

install), and a description of the 

reasonable technical basis described in 

paragraph (b)(1) of this section. Keep 

these records for five years after you 

modify the engines. Store these records 

in any format and on any media, as long 

as you can promptly send us organized, 

written records in English if we ask for 

them. You must keep these records 

readily available. We may review them 

at any time. 

§ 1054.655 What special provisions apply 

to installing and removing altitude kits? 

(a) An action for the purpose of 

installing or removing altitude kits and 

performing other changes to compensate 

for changing altitude is not considered 

a prohibited act under 40 CFR 

1068.101(b), as long as it is done 

consistent with the provisions of this 

section. 

(b) You may install or remove an 

altitude kit as long as you are using 

replacement parts that are specified in 

the engine manufacturer’s application 

for certification. 

§ 1054.660 What are the provisions for 

exempting emergency rescue equipment? 

The provisions of this section apply 

for new equipment built on or after 

January 1, 2009. 

(a) Equipment manufacturers may 

introduce into U.S. commerce 

equipment that is not certified to 

current emission standards under the 

following conditions if the equipment 

will be used solely in emergency rescue 

situations: 

(1) You must determine annually that 

no engines certified to current emission 

standards are available to power the 

equipment safely and practically. We 

may review your records supporting this 

determination at any time. 

(2) You may not use exempted 

engines to power generators, alternators, 

compressors, or pumps. 

(3) If engines that meet less stringent 

emission standards are capable of 

powering your equipment safely and 

practically, you must use them as a 

condition of this exemption. You must 

use available engines meeting the most 

stringent standards feasible. 

(4) You must send the engine 

manufacturer a written request for each 

exempted equipment model. 

(5) You must notify the Designated 

Compliance Officer of your intent to use 

the provisions of this section. We may 

require you to notify us annually or to 

send us annual reports describing how 

you meet the conditions of this section. 

(b) For the purposes of this section, 

‘‘emergency rescue situations’’ means 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28335 

firefighting or other situations in which 

a person is retrieved from imminent 

danger. 

(c) As an engine manufacturer, you 

may produce exempt engines under this 

section without our prior approval if 

you have a written request for an 

exempted engine for use in emergency 

rescue equipment from the equipment 

manufacturer. You must permanently 

label engines exempted under this 

section to clearly indicate that they are 

to be used solely for emergency rescue 

equipment. Failure to properly label an 

engine will void the exemption. 

(d) We may discontinue an exemption 

under this section if we find that 

engines are not used solely for 

emergency rescue equipment or if we 

find that a certified engine is available 

to power the equipment safely and 

practically. 

§ 1054.685 What are my recall 

responsibilities? 

(a) You are responsible to meet all 

applicable recall requirements in 40 

CFR 1068, subpart F. You must also 

meet the additional requirements of this 

section. 

(b) You must demonstrate at the time 

of certification that you will be able to 

meet these requirements. Except as 

allowed in paragraph (c) of this section, 

your demonstration must include at 

least one of the following: 

(1) You have assembly facilities in the 

United States that are available for 

processing recall repairs. 

(2) You have a repair network in the 

United States capable of processing 

recall repairs. To qualify under this 

paragraph (b)(2), you must have at least 

100 authorized repair facilities in the 

United States or at least one such 

facility for each 5000 engines you sell in 

the United States, whichever is less. 

(c) If you do not have the assembly or 

repair facilities required under 

paragraph (b) of this section, you may 

instead rely on independent contractors 

that you name in your application for 

certification to perform recalls, but you 

must provide assurance that you can 

fulfill recall obligations, such as posting 

bond. 

§ 1054.690 What are the bond 

requirements for importing certified 

engines and equipment? 

As specified in this section, we are 

considering whether to require you to 

post a bond if you introduce into U.S. 

commerce engines that are subject to the 

standards of this part. See paragraph (f) 

of this section for the requirements 

related to selling or importing engines 

that have been certified by someone 

else. 

(a) Prior to introducing engines into 

U.S. commerce, you must post a bond 

to cover any potential compliance or 

enforcement actions under the Clean Air 

Act unless you demonstrate to us that 

you will meet any compliance-or 

enforcement-related obligations. For 

example, it would be a sufficient 

demonstration if you show that you 

have manufactured or imported engines 

for the U.S. market for a significant 

period of time without failing a test 

conducted by EPA officials or having 

been found by the EPA not to be in 

compliance with applicable regulations. 

(b) The value of the bond is based on 

the per-engine bond values shown in 

Table 1 of this section and on the U.S.- 

directed production volume from each 

displacement grouping for the calendar 

year. For example, if you have projected 

U.S.-directed production volumes of 

10,000 engines with 180 cc 

displacement and 5,000 engines with 

400 cc displacement in 2013, the 

appropriate bond amount is $500,000. 

Adjust the value of the bond as follows: 

(1) If your estimated or actual U.S.- 

directed production volume in any later 

calendar year increases beyond the level 

appropriate for your current bond 

payment, you must post additional bond 

to reflect the increased volume within 

90 days after you change your estimate 

or determine the actual production 

volume. You may not decrease your 

bond. 

(2) The per-engine bond values listed 

are in 2008 dollars. Adjust these values 

in 2010 and later calendar years by 

comparing the Consumer Price Index 

values published by the Bureau of Labor 

Statistics for the preceding June and 

June 2008 (see ftp://ftp.bls.gov/pub/ 

special.requests/cpi/cpiai.txt). Round 

calculated values to the nearest dollar. 

(3) If you sell engines without 

aftertreatment components under the 

provisions of § 1054.610, you must 

increase the per-engine bond values for 

the current year by 20 percent. Round 

calculated values to the nearest dollar. 

TABLE 1 TO § 1054.690—PER-ENGINE

BOND VALUES

For engines with displacement falling in the following 

ranges. . . 

The per-engine bond 

value is . . . 

Disp. < 225 cc ...................... $25 

225 ≤ Disp. < 740 cc ............ 50 

740 ≤ Disp. ≤ 1,000 cc ......... 100 

Disp. > 1,000 cc ................... 200 

(c) You may meet the bond 

requirements of this section by 

obtaining a bond from a third-party 

surety that is cited in the U.S. 

Department of Treasury Circular 570, 

‘‘Companies Holding Certificates of 

Authority as Acceptable Sureties on 

Federal Bonds and as Acceptable 

Reinsuring Companies’’ (http:// 

www.fms.treas.gov/c570/ 

c570.html#certified). You must maintain 

this bond for 5 years. 

(d) If you forfeit some or all of your 

bond in an enforcement action, you 

must post any appropriate bond for 

continuing sale within 90 days after you 

forfeit the bond amount. 

(e) You will forfeit the proceeds of the 

bond posted under this section if you 

need to satisfy any United States 

administrative final order or judicial 

judgment against you arising from your 

conduct in violation of this chapter, 

including such conduct that violates 18 

U.S.C. 1001, 42 U.S.C. 7413(c)(2), or 

other applicable provisions of the Clean 

Air Act. 

(f) This paragraph (f) applies if you 

sell, or import for resale, engines that 

have been certified by someone else (or 

equipment containing such engines). 

(1) You and the certificate holder are 

each responsible for compliance with 

the requirements of this part and the 

Clean Air Act. For example, we may 

require you to comply with the warranty 

requirements in the standard-setting 

part. 

(2) You do not need to post bond if 

the certificate holder complies with the 

bond requirements of this section. 

§ 1054.695 What restrictions apply to 

assigning a model year to imported engines 

and equipment? 

This section includes limitations on 

assigning a model year to engines and 

equipment that are imported in a year 

later than the model year in which they 

were manufactured, except as specified 

in paragraph (e) of this section. 

(a) The term ‘‘model year’’ is defined 

in each of the standard-setting parts. 

These definitions may vary slightly to 

address the different categories of 

engines and equipment. Except as 

specified in paragraphs (b) and (c) of 

this section, the emission standards and 

other emission-related requirements that 

apply for an imported engine or piece of 

equipment are determined by the model 

year as defined in the applicable 

standard-setting part and the provisions 

of 40 CFR 1068.105(a). 

(b) This paragraph (b) applies for the 

importation of new engines and new 

equipment in any calendar year that is 

more than one year after the named 

model year of the engine or equipment 

where emission requirements applying 

to current engines are different than for 

engines or equipment in the named 

model year. Regardless of what other 

provisions of this subchapter U specify 


sroberts on PROD1PC70 with PROPOSALS
28336 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

for the model year of the engine or 

equipment, such engines and equipment 

are deemed to have an applicable model 

year no more than one year earlier than 

the calendar year in which they are 

being imported. For example, a new 

engine identified as a 2007 model-year 

product that is imported on January 31, 

2010 will be treated as a 2009 modelyear engine; the same engine will be 

treated as a 2010 model-year engine if 

it is imported any time in calendar year 

2011. 

(c) If you claim that an engine or piece 

of equipment is not subject to 

standards—or is subject to standards 

less stringent than those currently in 

place—based on its original 

manufacture date because it has already 

been placed into service, you must 

provide clear and convincing evidence 

that it has already been placed into 

service. Such evidence must generally 

include, but not be limited to, 

documentary evidence of purchase and 

maintenance history and visible wear 

that is consistent with the reported 

manufacture date. Importing products 

for resale or importing more than one 

engine or piece of equipment at a time 

would generally require a greater degree 

of evidence under this paragraph (c). If 

you do not satisfactorily demonstrate 

that the engine has already been placed 

into service, the provisions of paragraph 

(b) of this section apply. 

(d) Nothing in this section should be 

interpreted to allow circumvention of 

the requirements of this part by 

misstating or mislabeling the model year 

of engines or equipment. For example, 

this section does not permit engines 

imported in the same year as 

manufactured to be treated as an engine 

manufactured in the previous year. To 

verify compliance with the provisions of 

this section, we may require you to 

verify the original manufacture date of 

the engine or equipment based on 

manufacturing records, title-transfer 

documents, service records, or other 

documentation. 

(e) If all the current emission 

requirements are the same as in the 

named model year, the provisions of 

this section do not apply. 

Subpart H—Averaging, Banking, and 

Trading for Certification 

§ 1054.701 General provisions. 

(a) You may average, bank, and trade 

(ABT) emission credits for purposes of 

certification as described in this subpart 

to show compliance with the standards 

of this part. Participation in this 

program is voluntary. 

(b) The definitions of subpart I of this 

part apply to this subpart. The following 

definitions also apply: 

(1) Actual emission credits means 

emission credits you have generated 

that we have verified by reviewing your 

final report. 

(2) Averaging set means a set of 

engines (or equipment) in which 

emission credits may be exchanged only 

with other engines (or equipment) in the 

same averaging set. 

(3) Broker means any entity that 

facilitates a trade of emission credits 

between a buyer and seller. 

(4) Buyer means the entity that 

receives emission credits as a result of 

a trade. 

(5) Family means engine family for 

exhaust credits or emission family for 

evaporative credits. 

(6) Reserved emission credits means 

emission credits you have generated 

that we have not yet verified by 

reviewing your final report. 

(7) Seller means the entity that 

provides emission credits during a 

trade. 

(8) Standard means the emission 

standard that applies under subpart B of 

this part for engines or fuel-system 

components not participating in the 

ABT program of this subpart. 

(9) Trade means to exchange emission 

credits, either as a buyer or seller. 

(c) The use of emission credits is 

limited to averaging sets, as follows: 

(1) You may not average or exchange 

exhaust credits with evaporative credits, 

or vice versa. 

(2) Handheld engines and 

nonhandheld engines are in separate 

averaging sets with respect to exhaust 

emissions except as specified in 

§ 1054.740(e). You may use emission 

credits generated under 40 CFR part 90 

for handheld engines subject to the 

standards in § 1054.103 only if you can 

demonstrate that those credits were 

generated by handheld engines, except 

as specified in § 1054.740(e). You may 

use emission credits generated under 40 

CFR part 90 for nonhandheld engines 

only if you can demonstrate that those 

credits were generated by nonhandheld 

engines, subject to the provisions of 

§ 1054.740. 

(3) Equipment using handheld 

engines, Class I engines, and Class II 

engines are in separate averaging sets 

with respect to evaporative emissions. 

You may not average or exchange 

evaporative credits between any of these 

averaging sets. 

(4) You may combine evaporative 

emission credits for fuel tanks and fuel 

lines for handheld equipment. 

(5) For purposes of calculating 

emission credits under this subpart, 

engines with displacement below 80 cc 

are presumed to be handheld engines. 

You may treat these as nonhandheld 

engines for calculating exhaust or 

evaporative emission credits only for 

those engines you can demonstrate will 

be installed in nonhandheld equipment. 

For example, if 50 percent of engines in 

an emission family will be used in 

nonhandheld equipment, you may 

calculate the emission credits for 50 

percent of the engines to be 

nonhandheld credits using the 

appropriate calculation methods. 

(d) You may not generate evaporative 

credits based on permeation 

measurements from metal fuel tanks. 

(e) You may not use emission credits 

generated under this subpart to offset 

any emissions that exceed an FEL or 

standard. This applies for all testing, 

including certification testing, in-use 

testing, selective enforcement audits, 

and other production-line testing. 

However, if exhaust emissions from an 

engine exceed an exhaust FEL or 

standard (for example, during a 

selective enforcement audit), you may 

use emission credits to recertify the 

family with a higher FEL that applies 

only to future production. 

(f) Emission credits may be used in 

the model year they are generated 

(averaging) and in future model years 

(banking). Emission credits may not be 

used for past model years. 

(g) You may increase or decrease an 

exhaust FEL during the model year by 

amending your application for 

certification under § 1054.225. 

§ 1054.705 How do I generate and 

calculate exhaust emission credits? 

The provisions of this section apply 

for calculating exhaust emission credits. 

You may generate exhaust emission 

credits only if you are a certifying 

engine manufacturer. 

(a) For each participating family, 

calculate positive or negative emission 

credits relative to the otherwise 

applicable emission standard. Calculate 

positive emission credits for a family 

that has an FEL below the standard. 

Calculate negative emission credits for a 

family that has an FEL above the 

standard. Sum your positive and 

negative credits for the model year 

before rounding. Round calculated 

emission credits to the nearest kilogram 

(kg), using consistent units throughout 

the following equation: 

Emission credits (kg) = (Std¥FEL) × 

(Volume) × (Power) × (UL) × (LF) × 

(10¥3) 

Where: 

Std = the emission standard, in g/kW-hr. 

FEL = the family emission limit for the 

family, in g/kW-hr. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28337 

Volume = the number of engines eligible to 

participate in the averaging, banking, 

and trading program within the given 

family during the model year, as 

described in paragraph (c) of this section. 

Power = the maximum modal power of the 

emission-data engine as calculated from 

the applicable test procedure described 

in subpart F of this part, in kilowatts. 

UL = the useful life for the given family, in 

hours. 

LF = load factor. Use 0.47 for nonhandheld 

engines and 0.85 for handheld engines. 

We may specify a different load factor if 

we approve the use of special test 

procedures for an engine family under 40 

CFR 1065.10(c)(2), consistent with good 

engineering judgment. 

(b) [Reserved] 

(c) In your application for 

certification, base your showing of 

compliance on projected production 

volumes for engines intended for sale in 

the United States. As described in 

§ 1054.730, compliance with the 

requirements of this subpart is 

determined at the end of the model year 

based on actual production volumes for 

engines intended for sale in the United 

States. 

Do not include any of the following 

engines or equipment to calculate 

emission credits: 

(1) Engines exempted under subpart G 

of this part or under 40 CFR part 1068. 

(2) Engines intended for export, 

unless there is reason to believe that the 

engines will be later imported into the 

United States after installation in 

equipment. 

(3) Engines that are subject to state 

emission standards for that model year. 

However, this restriction does not apply 

if we determine that the state standards 

and requirements are equivalent to 

those of this part and that engines sold 

in such a state will not generate credits 

under the state program. For example, 

you may not include engines certified 

for California if it has more stringent 

emission standards for these engines or 

those engines generate or use emission 

credits under the California program. 

(4) Engines not subject to the 

requirements of this part, such as those 

excluded under § 1054.5. 

(5) Any other engines, where we 

indicate elsewhere in this part 1054 that 

they are not to be included in the 

calculations of this subpart. 

§ 1054.706 How do I generate and 

calculate evaporative emission credits? 

The provisions of this section apply 

for calculating evaporative emission 

credits. This applies for fuel line 

permeation for handheld equipment and 

for fuel tank permeation from all 

equipment. You may generate credits 

only if you are a certifying equipment 

manufacturer. 

(a) For each participating family, 

calculate positive or negative emission 

credits relative to the otherwise 

applicable emission standard. Calculate 

positive emission credits for a family 

that has an FEL below the standard. 

Calculate negative emission credits for a 

family that has an FEL above the 

standard. Sum your positive and 

negative credits for the model year 

before rounding. Round calculated 

emission credits to the nearest kilogram 

(kg), using consistent units throughout 

the following equation: 

Emission credits (kg) = (Std¥FEL) × 

(Total Area) × (UL) × (AF) × (365) 

× (10¥3) 

Where: 

Std = the emission standard, in g/m2/day. 

FEL = the family emission limit for the 

family, in g/m2/day, as described in 

paragraph (b) of this section. 

Total Area = The combined internal surface 

area of all fuel tanks or fuel lines in the 

family, in m2. 

UL = the useful life for the given family, in 

years. 

AF = adjustment factor. Use 0.60 for fuel tank 

permeation testing performed at 40 °C; 

use 1.0 for all other testing. 

(b) For calculating credits under 

paragraph (a) of this section, determine 

the FEL for fuel lines based on 

measured emission levels. Determine 

the FEL for fuel tanks using any of the 

following values: 

(1) The FEL to which the fuel tank is 

certified, as long as the FEL is at or 

below 3.0 g/m2/day. 

(2) 10.4 g/m2/day. However, if you 

use this value to establish the FEL for 

any of your fuel tanks, you must use this 

value to establish the FEL for every tank 

not covered by paragraph (b)(1) of this 

section. 

(3) The measured permeation rate of 

the fuel tank or the measured 

permeation rate of a thinner-walled tank 

of the same material. However, if you 

use this approach to establish the FEL 

for any of your fuel tanks, you must 

establish an FEL based on emission 

measurements for every tank not 

covered by paragraph (b)(1) of this 

section. 

(c) To qualify for generating emission 

credits with structurally integrated 

nylon fuel tanks used with handheld 

equipment, the FEL must be at or below 

1.5 g/m2/day for testing at a nominal 

temperature of 28 °C, or 2.5 g/m2/day for 

testing at a nominal temperature of 

40 °C. Calculate positive emission 

credits under this section relative to an 

emission standard of 1.5 g/m2/day. 

Calculate negative emission credits 

under this section relative to an 

emission standard of 2.5 g/m2/day. 

(d) To qualify for generating emission 

credits with fuel lines for cold-weather 

equipment, the FEL must be at or below 

15 g/m2/day. Calculate positive 

emission credits under this section 

relative to an emission standard of 15 g/ 

m2/day. Calculate negative emission 

credits under this section relative to an 

emission standard of 175 g/m2/day. 

(e) In your application for 

certification, base your showing of 

compliance on projected production 

volumes for engines intended for sale in 

the United States. As described in 

§ 1054.730, compliance with the 

requirements of this subpart is 

determined at the end of the model year 

based on actual production volumes for 

engines intended for sale in the United 

States. Do not include any of the 

following equipment to calculate 

emission credits: 

(1) Equipment exempted under 

subpart G of this part or under 40 CFR 

part 1068. 

(2) Equipment intended for export. 

(3) Equipment that is subject to state 

emission standards for that model year. 

However, this restriction does not apply 

if we determine that the state standards 

and requirements are equivalent to 

those of this part and that equipment 

sold in such a state will not generate 

credits under the state program. For 

example, you may not include 

equipment certified for California if it 

has more stringent emission standards 

for these equipment or that equipment 

generates or uses emission credits under 

the California program. 

(4) Equipment not subject to the 

requirements of this part, such as those 

excluded under § 1054.5. 

(5) Any other equipment, where we 

indicate elsewhere in this part 1054 that 

they are not to be included in the 

calculations of this subpart. 

§ 1054.710 How do I average emission 

credits? 

(a) Averaging is the exchange of 

emission credits among your families. 

You may average emission credits only 

within the same averaging set. 

(b) You may certify one or more 

families to an FEL above the emission 

standard, subject to the FEL caps and 

other provisions in subpart B of this 

part, if you show in your application for 

certification that your projected balance 

of all emission-credit transactions in 

that model year is greater than or equal 

to zero. 

(c) If you certify a family to an FEL 

that exceeds the otherwise applicable 

standard, you must obtain enough 

emission credits to offset the family’s 

deficit by the due date for the final 

report required in § 1054.730. The 


sroberts on PROD1PC70 with PROPOSALS
28338 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

emission credits used to address the 

deficit may come from your other 

families that generate emission credits 

in the same model year, from emission 

credits you have banked, or from 

emission credits you obtain through 

trading. 

§ 1054.715 How do I bank emission 

credits? 

(a) Banking is the retention of 

emission credits by the manufacturer 

generating the emission credits for use 

in averaging or trading in future model 

years. You may use banked emission 

credits only within the averaging set in 

which they were generated, except as 

described in this subpart. 

(b) In your application for 

certification, designate any emission 

credits you intend to bank. These 

emission credits will be considered 

reserved credits. During the model year 

and before the due date for the final 

report, you may redesignate these 

emission credits for averaging or 

trading. 

(c) You may use banked emission 

credits from the previous model year for 

averaging or trading before we verify 

them, but we may revoke these emission 

credits if we are unable to verify them 

after reviewing your reports or auditing 

your records. 

(d) Reserved credits become actual 

emission credits only when we verify 

them in reviewing your final report. 

§ 1054.720 How do I trade emission 

credits? 

(a) Trading is the exchange of 

emission credits between 

manufacturers. You may use traded 

emission credits for averaging, banking, 

or further trading transactions. Traded 

emission credits may be used only 

within the averaging set in which they 

were generated, except as described in 

this subpart. 

(b) You may trade actual emission 

credits as described in this subpart. You 

may also trade reserved emission 

credits, but we may revoke these 

emission credits based on our review of 

your records or reports or those of the 

company with which you traded 

emission credits. You may trade banked 

credits to any certifying engine or 

equipment manufacturer. 

(c) If a negative emission credit 

balance results from a transaction, both 

the buyer and seller are liable, except in 

cases we deem to involve fraud. See 

§ 1054.255(e) for cases involving fraud. 

We may void the certificates of all 

families participating in a trade that 

results in a manufacturer having a 

negative balance of emission credits. 

See § 1054.745. 

§ 1054.725 What must I include in my 

application for certification? 

(a) You must declare in your 

application for certification your intent 

to use the provisions of this subpart for 

each family that will be certified using 

the ABT program. You must also declare 

the FELs you select for the family for 

each pollutant for which you are using 

the ABT program. Your FELs must 

comply with the specifications of 

subpart B of this part, including the FEL 

caps. FELs must be expressed to the 

same number of decimal places as the 

emission standard. 

(b) Include the following in your 

application for certification: 

(1) A statement that, to the best of 

your belief, you will not have a negative 

balance of emission credits for any 

averaging set when all emission credits 

are calculated at the end of the year. 

(2) Detailed calculations of projected 

emission credits (positive or negative) 

based on projected production volumes. 

If your family will generate positive 

emission credits, state specifically 

where the emission credits will be 

applied (for example, to which family 

they will be applied in averaging, 

whether they will be traded, or whether 

they will be reserved for banking). If you 

have projected negative emission credits 

for a family, state the source of positive 

emission credits to offset the negative 

emission credits. Describe whether the 

emission credits are actual or reserved 

and whether they will come from 

averaging, banking, trading, or a 

combination of these. Identify from 

which of your families or from which 

manufacturer the emission credits will 

come. 

§ 1054.730 What ABT reports must I send 

to EPA? 

(a) If any of your families are certified 

using the ABT provisions of this 

subpart, you must send an end-of-year 

report within 90 days after the end of 

the model year and a final report within 

270 days after the end of the model year. 

We may waive the requirement to send 

the end-of year report, as long as you 

send the final report on time. 

(b) Your end-of-year and final reports 

must include the following information 

for each family participating in the ABT 

program: 

(1) Family designation. 

(2) The emission standards that would 

otherwise apply to the family. 

(3) The FEL for each pollutant. If you 

changed an FEL during the model year, 

identify each FEL you used and 

calculate the positive or negative 

emission credits under each FEL. Also, 

describe how the FEL can be identified 

for each engine you produced. For 

example, you might keep a list of engine 

or equipment identification numbers 

that correspond with certain FEL values. 

(4) The projected and actual 

production volumes for the model year 

with a point of retail sale in the United 

States, as described in §§ 1054.705(c) 

and 1054.706(c). For fuel tanks and fuel 

lines, state the production volume in 

terms of total surface area. If you 

changed an engine’s FEL during the 

model year, identify the actual 

production volume associated with each 

FEL. 

(5) The maximum modal power of the 

emission-data engine or the appropriate 

internal surface area of the fuel tank or 

fuel line. 

(6) Useful life. 

(7) Calculated positive or negative 

emission credits for the whole family. 

Identify any emission credits that you 

traded, as described in paragraph (d)(1) 

of this section. 

(c) Your end-of-year and final reports 

must include the following additional 

information: 

(1) Show that your net balance of 

emission credits from all your 

participating families in each averaging 

set in the applicable model year is not 

negative. 

(2) State whether you will reserve any 

emission credits for banking. 

(3) State that the report’s contents are 

accurate. 

(d) If you trade emission credits, you 

must send us a report within 90 days 

after the transaction, as follows: 

(1) As the seller, you must include the 

following information in your report: 

(i) The corporate names of the buyer 

and any brokers. 

(ii) A copy of any contracts related to 

the trade. 

(iii) The families that generated 

emission credits for the trade, including 

the number of emission credits from 

each family. 

(2) As the buyer, you must include the 

following information in your report: 

(i) The corporate names of the seller 

and any brokers. 

(ii) A copy of any contracts related to 

the trade. 

(iii) How you intend to use the 

emission credits, including the number 

of emission credits you intend to apply 

to each family (if known). 

(e) Send your reports electronically to 

the Designated Compliance Officer 

using an approved information format. 

If you want to use a different format, 

send us a written request with 

justification for a waiver. 

(f) Correct errors in your end-of-year 

report or final report as follows: 

(1) You may correct any errors in your 

end-of-year report when you prepare the 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28339 

final report, as long as you send us the 

final report by the time it is due. 

(2) If you or we determine within 270 

days after the end of the model year that 

errors mistakenly decrease your balance 

of emission credits, you may correct the 

errors and recalculate the balance of 

emission credits. You may not make 

these corrections for errors that are 

determined more than 270 days after the 

end of the model year. If you report a 

negative balance of emission credits, we 

may disallow corrections under this 

paragraph (f)(2). 

(3) If you or we determine anytime 

that errors mistakenly increase your 

balance of emission credits, you must 

correct the errors and recalculate the 

balance of emission credits. 

§ 1054.735 What records must I keep? 

(a) You must organize and maintain 

your records as described in this 

section. We may review your records at 

any time. 

(b) Keep the records required by this 

section for at least eight years after the 

due date for the end-of-year report. You 

may not use emission credits for any 

engines or equipment if you do not keep 

all the records required under this 

section. You must therefore keep these 

records to continue to bank valid 

credits. Store these records in any 

format and on any media, as long as you 

can promptly send us organized, written 

records in English if we ask for them. 

You must keep these records readily 

available. We may review them at any 

time. 

(c) Keep a copy of the reports we 

require in §§ 1054.725 and 1054.730. 

(d) Keep the following additional 

records for each engine or piece of 

equipment you produce that generates 

or uses emission credits under the ABT 

program: 

(1) Family designation. 

(2) Engine or equipment identification 

number. 

(3) FEL and useful life. 

(4) Build date and assembly plant. 

(e) We may require you to keep 

additional records or to send us relevant 

information not required by this section. 

§ 1054.740 What special provisions apply 

for generating and using emission credits? 

(a) You may generate Phase 3 

emission credits from 2008 through 

2011 model year Class I engines if you 

voluntarily meet the Phase 3 exhaust 

emission standards specified in 

§ 1054.105. Divide these into 

transitional and enduring emission 

credits as follows: 

(1) Transitional credits are based on 

reducing emissions from Phase 2 levels 

down to Phase 3 levels. Calculate the 

value of transitional emission credits as 

described in § 1054.705, based on 

setting STD equal to 15.0 g/kW-hr and 

FEL equal to 10.0 g/kW-hr. You may use 

these transitional credits only for Class 

I engines in 2012 through 2014 model 

years. You may not use these 

transitional credits for Class II engines. 

(2) Enduring credits are based on 

reducing emissions below Phase 3 

levels. Calculate the value of enduring 

credits as described in § 1054.705, based 

on setting STD equal to 10.0 g/kW-hr 

and FEL to the value of the family 

emission limit you select for the engine 

family. You may use these enduring 

credits for any nonhandheld engines 

certified to the Phase 3 standards under 

this part, except as specified in 

paragraph (d) of this section. 

(b) You may generate Phase 3 

emission credits from 2008 through 

2010 model year Class II engines if you 

voluntarily meet the Phase 3 exhaust 

emission standards specified in 

§ 1054.105. Divide these into 

transitional and enduring emission 

credits as follows: 

(1) Transitional credits are based on 

reducing emissions from Phase 2 levels 

down to Phase 3 levels. Calculate the 

value of transitional emission credits as 

described in § 1054.705, based on 

setting STD equal to 11.0 g/kW-hr and 

FEL equal to 8.0 g/kW-hr. You may use 

these transitional credits only for Class 

II engines in 2011 through 2013 model 

years. You may not use these 

transitional credits for Class I engines. 

(2) Enduring credits are based on 

reducing emissions below Phase 3 

levels. Calculate the value of enduring 

credits as described in § 1054.705, based 

on setting STD equal to 8.0 g/kW-hr and 

FEL to the value of the family emission 

limit you select for the engine family. 

You may use these enduring credits for 

any nonhandheld engines certified to 

the Phase 3 standards under this part, 

except as specified in paragraph (d) of 

this section 

(c) You may use emission credits 

generated by nonhandheld engines 

subject to Phase 2 emission standards 

under 40 CFR part 90 to demonstrate 

compliance with the Phase 3 exhaust 

emission standards, but only after you 

have exhausted all credits from engines 

meeting Phase 3 standards, subject to 

the conditions of paragraph (d) of this 

section. You may use these Phase 2 

emission credits only in the 2012 and 

2013 model years for Class I engines and 

only in the 2011 through 2013 model 

years for Class II engines. Determine a 

maximum number of Phase 2 emission 

credits for demonstrating compliance 

with the Phase 3 standards for a given 

engine class (Class I or Class II) as 

follows: 

(1) Calculate a Phase 2 credit 

allowance for each engine class based 

on production information for model 

years 2007, 2008, and 2009 using the 

following equation: 

Credit allowance (kg) = (Emissions 

Delta) × (Volume) × (Avg. Power) × (Avg. 

UL) × (LF) × (10¥3) 

Where: 

Emissions Delta = 1.6 g/kW-hr for Class I and 

2.1 g/kW-hr for Class II. 

Volume = the number of engines eligible to 

participate in the averaging, banking, 

and trading program, as described in 

§ 1054.705(c), based on actual U.S.- 

directed production volumes. 

Avg. Power = the production-weighted 

average value of the maximum modal 

power for all engine families in the 

engine class, as described in 

§ 1054.705(a), in kilowatts. 

Avg. UL = the production-weighted average 

value of the useful life for all engine 

families in the engine class, in hours. 

LF = load factor. Use 0.47. 

(2) Do not include wintertime engines 

in the calculation of credit allowances 

unless they are certified to meet the 

otherwise applicable HC+NOX emission 

standard. 

(3) Calculate the average annual Phase 

2 credit allowance for each engine class 

over three model years as specified in 

paragraph (c)(1) of this section. The 

resulting value is the maximum number 

of Phase 2 emission credits you may use 

under this paragraph (c) for each engine 

class. 

(4) For 2013 and earlier model years, 

include in the reports described in 

§ 1054.730 the total allowable number of 

Phase 2 emission credits and your 

cumulative totals of Phase 2 credits you 

have used to comply with the 

requirements of this part. 

(d) If you generate enduring emission 

credits from Class I engines under 

paragraph (a) of this section, you may 

not use these for Class II engines in the 

2011 or 2012 model year. Similarly, If 

you generate enduring emission credits 

from Class II engines under paragraph 

(b) of this section, you may not use 

these for Class I engines in the 2012 

model year. These restrictions also 

apply for emission credits you generate 

for engines subject to the standards of 

this part in the 2011 or 2012 model year. 

(e) You may use Phase 2 or Phase 3 

emission credits from nonhandheld 

engines to demonstrate compliance with 

the Phase 3 standards for handheld 

engines subject to the following 

restrictions: 

(1) The handheld engine family must 

be certified in 2008 and all later model 

years using carryover of emission data 


sroberts on PROD1PC70 with PROPOSALS
28340 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

from an engine family that was most 

recently certified with new emission 

data in 2007 or an earlier model year. 

(2) The handheld engine family’s FEL 

may not increase above the level 

selected for the 2007 model year in later 

years, unless such an increase is based 

on emission data from production 

engines. 

§ 1054.745 What can happen if I do not 

comply with the provisions of this subpart? 

(a) For each family participating in 

the ABT program, the certificate of 

conformity is conditional upon full 

compliance with the provisions of this 

subpart during and after the model year. 

You are responsible to establish to our 

satisfaction that you fully comply with 

applicable requirements. We may void 

the certificate of conformity for a family 

if you fail to comply with any 

provisions of this subpart. 

(b) You may certify your family to an 

FEL above an emission standard based 

on a projection that you will have 

enough emission credits to offset the 

deficit for the family. However, we may 

void the certificate of conformity if you 

cannot show in your final report that 

you have enough actual emission credits 

to offset a deficit for any pollutant in a 

family. 

(c) We may void the certificate of 

conformity for a family if you fail to 

keep records, send reports, or give us 

information we request. 

(d) You may ask for a hearing if we 

void your certificate under this section 

(see § 1054.820). 

Subpart I—Definitions and Other 

Reference Information 

§ 1054.801 What definitions apply to this 

part? 

The following definitions apply to 

this part. The definitions apply to all 

subparts unless we note otherwise. All 

undefined terms have the meaning the 

Act gives to them. The definitions 

follow: 

Act means the Clean Air Act, as 

amended, 42 U.S.C. 7401–7671q. 

Adjustable parameter means any 

device, system, or element of design that 

someone can adjust (including those 

which are difficult to access) and that, 

if adjusted, may affect emissions or 

engine performance during emission 

testing or normal in-use operation. This 

includes, but is not limited to, 

parameters related to injection timing 

and fueling rate. You may ask us to 

exclude a parameter that is difficult to 

access if it cannot be adjusted to affect 

emissions without significantly 

degrading engine performance, or if you 

otherwise show us that it will not be 

adjusted in a way that affects emissions 

during in-use operation. 

Aftertreatment means relating to a 

catalytic converter, particulate filter, 

thermal reactor, or any other system, 

component, or technology mounted 

downstream of the exhaust valve (or 

exhaust port) whose design function is 

to decrease emissions in the engine 

exhaust before it is exhausted to the 

environment. Exhaust-gas recirculation 

(EGR) and turbochargers are not 

aftertreatment. 

Amphibious vehicle means a vehicle 

with wheels or tracks that is designed 

primarily for operation on land and 

secondarily for operation in water. 

Applicable emission standard or 

applicable standard means an emission 

standard to which an engine is subject; 

or, where an engine has been or is being 

certified another standard or FEL, 

applicable emission standards means 

the FEL and other standards to which 

the engine has been or is being certified. 

This definition does not apply to 

subpart H of this part. 

Auxiliary emission control device 

means any element of design that senses 

temperature, motive speed, engine RPM, 

transmission gear, or any other 

parameter for the purpose of activating, 

modulating, delaying, or deactivating 

the operation of any part of the emission 

control system. 

Brake power means the usable power 

output of the engine, not including 

power required to fuel, lubricate, or heat 

the engine, circulate coolant to the 

engine, or to operate aftertreatment 

devices. 

Calibration means the set of 

specifications and tolerances specific to 

a particular design, version, or 

application of a component or assembly 

capable of functionally describing its 

operation over its working range. 

Certification means relating to the 

process of obtaining a certificate of 

conformity for an emission family that 

complies with the emission standards 

and requirements in this part. 

Certified emission level means the 

highest deteriorated emission level in an 

emission family for a given pollutant 

from either transient or steady-state 

testing. 

Class I means relating to nonhandheld 

engines with total displacement below 

225 cc. See § 1054.101 for special 

provisions that apply for engines with 

total displacement below 80 cc. 

Class II means relating to 

nonhandheld engines with total 

displacement at or above 225 cc. 

Class III means relating to handheld 

engines with total displacement below 

20 cc. 

Class IV means relating to handheld 

engines with total displacement at or 

above 20 cc but below 50 cc. 

Class V means relating to handheld 

engines with total displacement at or 

above 50 cc. 

Cold-weather equipment includes the 

following types of handheld equipment: 

Chainsaws, cut-off saws, clearing saws, 

brush cutters with engines at or above 

40cc, commercial earth and wood drills, 

and ice augers. This includes earth 

augers if they are also marketed as ice 

augers. 

Crankcase emissions means airborne 

substances emitted to the atmosphere 

from any part of the engine crankcase’s 

ventilation or lubrication systems. The 

crankcase is the housing for the 

crankshaft and other related internal 

parts. 

Critical emission-related component 

means any of the following components: 

(1) Electronic control units, 

aftertreatment devices, fuel-metering 

components, EGR-system components, 

crankcase-ventilation valves, all 

components related to charge-air 

compression and cooling, and all 

sensors and actuators associated with 

any of these components. 

(2) Any other component whose 

primary purpose is to reduce emissions. 

Designated Compliance Officer means 

the Manager, Heavy-Duty and Nonroad 

Engine Group (6405–J), U.S. 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460. 

Designated Enforcement Officer 

means the Director, Air Enforcement 

Division (2242A), U.S. Environmental 

Protection Agency, 1200 Pennsylvania 

Ave., NW.,Washington, DC 20460. 

Deteriorated emission level means the 

emission level that results from 

applying the appropriate deterioration 

factor to the official emission result of 

the emission-data engine. 

Deterioration factor means the 

relationship between emissions at the 

end of useful life and emissions at the 

low-hour test point. See §§ 1054.240 

and 1054.245. 

Discrete-mode means relating to the 

discrete-mode type of steady-state test 

described in § 1054.505. 

Displacement has the meaning given 

in § 1054.140. 

Dry weight means the weight of the 

equipment as sold, without fuel, oil, or 

engine coolant. 

Emission control system means any 

device, system, or element of design that 

controls or reduces the emissions of 

regulated pollutants from an engine. 

Emission-data engine means an 

engine that is tested for certification. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28341 

This includes engines tested to establish 

deterioration factors. 

Emission-data equipment means an 

engine, piece of equipment, or fuel 

system component that is tested for 

certification. This includes units tested 

to establish deterioration factors. 

Emission-related maintenance means 

maintenance that substantially affects 

emissions or is likely to substantially 

affect emission deterioration. 

Engine has the meaning given in 40 

CFR 1068.30. This includes complete 

and partially complete engines. 

Engine configuration means a unique 

combination of engine hardware and 

calibration within an emission family. 

Engines within a single engine 

configuration differ only with respect to 

normal production variability. 

Emission family has the meaning 

given in § 1054.230. We may refer to 

emission families as ‘‘engine families’’

where provisions relate only to exhaust 

emissions from engines. 

Engine manufacturer means the 

manufacturer of the engine. See the 

definition of ‘‘manufacturer’’ in this 

section. 

Equipment includes engines and fuel 

system components installed in 

equipment. 

Equipment manufacturer means a 

manufacturer that assembles nonroad 

equipment. All nonroad equipment 

manufacturing entities under the control 

of the same person are considered to be 

a single nonroad equipment 

manufacturer. 

Evaporative means relating to fuel 

emissions controlled by 40 CFR part 

1060. This generally includes emissions 

that result from permeation of fuel 

through the fuel-system materials, from 

ventilation of the fuel system. 

Excluded means relating to an engine 

that either: 

(1) Has been determined not to be a 

nonroad engine, as specified in 40 CFR 

1068.30; or 

(2) Is a nonroad engine that, according 

to § 1054.5, is not subject to this part 

1054. 

Exempted has the meaning given in 

40 CFR 1068.30. 

Exhaust-gas recirculation means a 

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 before 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 before or during combustion is not 

considered exhaust-gas recirculation for 

the purposes of this part. 

Family emission limit (FEL) means an 

emission level declared by the 

manufacturer to serve in place of an 

otherwise applicable emission standard 

under the ABT program in subpart H of 

this part. The family emission limit 

must be expressed to the same number 

of decimal places as the emission 

standard it replaces. The family 

emission limit serves as the emission 

standard for the emission family with 

respect to all required testing. 

Fuel line means hose or tubing 

designed to contain liquid fuel. This 

does not include any of the following: 

(1) Fuel tank vent lines. 

(2) Segments of hose or tubing whose 

external surface is normally exposed to 

liquid fuel inside the fuel tank. 

(3) Hose or tubing designed to return 

unused fuel from the carburetor to the 

fuel tank for handheld engines. 

(4) Primer bulbs that contain liquid 

fuel only for priming the engine before 

starting. 

Fuel system means all components 

involved in transporting, metering, and 

mixing the fuel from the fuel tank to the 

combustion chamber(s), including the 

fuel tank, fuel tank cap, fuel pump, fuel 

filters, fuel lines, carburetor or fuelinjection components, and all fuelsystem vents. 

Fuel type means a general category of 

fuels such as gasoline or natural gas. 

There can be multiple grades within a 

single fuel type, such as lowtemperature or all-season gasoline. 

Generator-set engine means an engine 

used primarily to operate an electrical 

generator or alternator to produce 

electric power for other applications. 

Good engineering judgment has the 

meaning given in 40 CFR 1068.30. See 

40 CFR 1068.5 for the administrative 

process we use to evaluate good 

engineering judgment. 

Handheld means relating to 

equipment that meets any of the 

following criteria: 

(1) It is carried by the operator 

throughout the performance of its 

intended function. 

(2) It is designed to operate 

multipositionally, such as upside down 

or sideways, to complete its intended 

function. 

(3) It has a combined engine and 

equipment dry weight under 15.0 

kilograms, has no more than two 

wheels, and at least one of the following 

attributes is also present: 

(i) The operator provides support or 

carries the equipment throughout the 

performance of its intended function. 

Carry means to completely bear the 

weight of the equipment, including the 

engine. Support means to hold a piece 

of equipment in position to prevent it 

from falling, slipping, or sinking, 

without carrying it. 

(ii) The operator provides support or 

attitudinal control for the equipment 

throughout the performance of its 

intended function. Attitudinal control 

involves regulating the horizontal or 

vertical position of the equipment. 

(iii) The engine powers a pump or is 

a generator-set engine. 

(4) It is a one-person auger, with a 

combined engine and equipment dry 

weight under 21.0 kilograms. 

(5) It is used in a recreational 

application with a combined total 

vehicle dry weight under 20.0 

kilograms. Note that snowmobiles, 

offroad motorcycles, and all terrain 

vehicles are regulated under 40 CFR 

part 1051 and marine vessels are 

regulated under 40 CFR part 1045. 

Hydrocarbon (HC) means the 

hydrocarbon group on which the 

emission standards are based for each 

fuel type, as described in subpart B of 

this part. 

Identification number means a unique 

specification (for example, a model 

number/serial number combination) 

that allows someone to distinguish a 

particular engine from other similar 

engines. 

Integrated equipment manufacturer 

means an equipment manufacturer that 

also manufactures the engines for its 

equipment. Equipment manufacturers 

that manufacture the engines for some 

but not all of their equipment are 

considered to be integrated 

manufacturers for that equipment using 

the manufacturer’s own engines. 

Intermediate-speed equipment means 

nonroad equipment in which the 

installed engine is intended for 

operation at speeds substantially below 

3600 rpm. 

Low-hour means relating to an engine 

that is considered to have stabilized 

emissions and represents the 

undeteriorated emission level. A lowhour engine typically operates no more 

than a few hours beyond the minimum 

stabilization period. However, a lowhour engine could have more hours, as 

long as emissions remain stable. In the 

absence of other information, a lowhour engine with a useful life of 300 

hours or less would generally have 

operated 12 to 15 hours and a low-hour 

engine with a longer useful would 

generally have operated no more than 

24 hours. 

Manufacture means the physical and 

engineering process of designing, 

constructing, and assembling an engine 

or piece of equipment. 

Manufacturer has the meaning given 

in section 216(1) of the Act. In general, 

this term includes any person who 


sroberts on PROD1PC70 with PROPOSALS
28342 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

manufactures an engine, vehicle, vessel, 

or piece of equipment for sale in the 

United States or otherwise introduces a 

new nonroad engine or piece of 

equipment into U.S. commerce. This 

includes importers who import engines, 

equipment, or vehicles for resale, but 

not dealers. All manufacturing entities 

under the control of the same person are 

considered to be a single manufacturer. 

Marine engine means a nonroad 

engine that is installed or intended to be 

installed on a vessel. This includes a 

portable auxiliary marine engine only if 

its fueling, cooling, or exhaust system is 

an integral part of the vessel. There are 

two kinds of marine engines: 

(1) Propulsion marine engine means a 

marine engine that moves a vessel 

through the water or directs the vessel’s 

movement. 

(2) Auxiliary marine engine means a 

marine engine not used for propulsion. 

Marine generator engine means an 

auxiliary marine engine used primarily 

to operate an electrical generator or 

alternator to produce electric power. 

Marine vessel has the meaning given 

in 1 U.S.C. 3, except that it does not 

include amphibious vehicles. The 

definition in 1 U.S.C. 3 very broadly 

includes every craft capable of being 

used as a means of transportation on 

water. 

Maximum engine power has the 

meaning given in § 1054.140. 

Maximum test speed has the meaning 

given in 40 CFR 1065.1001. 

Maximum test torque has the meaning 

given in 40 CFR 1065.1001. 

Model year has the meaning given in 

40 CFR part 1060 for equipment and 

means one of the following things for 

engines: 

(1) For freshly manufactured engines 

(see definition of ‘‘new nonroad 

engine,’’ paragraph (1)), model year 

means your annual new model 

production period. This must include 

January 1 of the calendar year for which 

the model year is named. It may not 

begin before January 2 of the previous 

calendar year and it must end by 

December 31 of the named calendar 

year. For seasonal production periods 

not including January 1, model year 

means the calendar year in which the 

production occurs, unless you choose to 

certify the applicable emission family 

with the following model year. For 

example, if your production period is 

June 1, 2010 through November 30, 

2010, your model year would be 2010 

unless you choose to certify the 

emission family for model year 2011. 

(2) For an engine that is converted to 

a nonroad engine after being placed into 

service as a motor-vehicle engine or a 

stationary engine, model year means the 

calendar year in which the engine was 

originally produced (see definition of 

‘‘new nonroad engine,’’ paragraph (2)). 

(3) For a nonroad engine excluded 

under § 1054.5 that is later converted to 

operate in an application that is not 

excluded, model year means the 

calendar year in which the engine was 

originally produced (see definition of 

‘‘new nonroad engine,’’ paragraph (3)). 

(4) For engines that are not freshly 

manufactured but are installed in new 

nonroad equipment, model year means 

the calendar year in which the engine is 

installed in the new nonroad equipment 

(see definition of ‘‘new nonroad 

engine,’’ paragraph (4)). 

(5) For imported engines: 

(i) For imported engines described in 

paragraph (5)(i) of the definition of 

‘‘new nonroad engine,’’ model year has 

the meaning given in paragraphs (1) 

through (4) of this definition. 

(ii) For imported engines described in 

paragraph (5)(ii) of the definition of 

‘‘new nonroad engine,’’ model year 

means the calendar year in which the 

engine is assembled in its final certified 

configuration. 

(iii) For imported engines described 

in paragraph (5)(iii) of the definition of 

‘‘new nonroad engine,’’ model year 

means the calendar year in which the 

importation occurs. 

Motor vehicle has the meaning given 

in 40 CFR 85.1703(a). 

New nonroad engine means any of the 

following things: 

(1) A freshly manufactured nonroad 

engine for which the ultimate purchaser 

has never received the equitable or legal 

title. This kind of engine might 

commonly be thought of as ‘‘brand 

new.’’ In the case of this paragraph (1), 

the engine is new from the time it is 

produced until the ultimate purchaser 

receives the title or the product is 

placed into service, whichever comes 

first. 

(2) An engine originally manufactured 

as a motor-vehicle engine or an 

uncertified stationary engine that is later 

installed or intended to be installed in 

a piece of nonroad equipment. In this 

case, the engine is no longer a motorvehicle or stationary engine and 

becomes a ‘‘new nonroad engine.’’ The 

engine is no longer new when it is 

placed into nonroad service. 

(3) A nonroad engine that has been 

previously placed into service in an 

application we exclude under § 1054.5, 

where that engine is installed in a piece 

of equipment that is covered by this part 

1054. The engine is no longer new when 

it is placed into nonroad service covered 

by this part 1054. For example, this 

would apply to a marine-propulsion 

engine that is no longer used in a 

marine vessel. 

(4) An engine not covered by 

paragraphs (1) through (3) of this 

definition that is intended to be 

installed in new nonroad equipment. 

The engine is no longer new when the 

ultimate purchaser receives a title for 

the equipment or the product is placed 

into service, whichever comes first. This 

generally includes installation of used 

engines in new equipment. 

(5) An imported nonroad engine, 

subject to the following provisions: 

(i) An imported nonroad engine 

covered by a certificate of conformity 

issued under this part that meets the 

criteria of one or more of paragraphs (1) 

through (4) of this definition, where the 

original engine manufacturer holds the 

certificate, is new as defined by those 

applicable paragraphs. 

(ii) An imported nonroad engine 

covered by a certificate of conformity 

issued under this part, where someone 

other than the original engine 

manufacturer holds the certificate (such 

as when the engine is modified after its 

initial assembly), becomes new when it 

is imported. It is no longer new when 

the ultimate purchaser receives a title 

for the engine or it is placed into 

service, whichever comes first. 

(iii) An imported nonroad engine that 

is not covered by a certificate of 

conformity issued under this part at the 

time of importation is new, but only if 

it was produced during or after the 1997 

model year. This addresses uncertified 

engines and equipment initially placed 

into service that someone seeks to 

import into the United States. 

Importation of this kind of engine (or 

equipment containing such an engine) is 

generally prohibited by 40 CFR part 

1068. 

New nonroad equipment means either 

of the following things: 

(1) A nonroad piece of equipment for 

which the ultimate purchaser has never 

received the equitable or legal title. The 

product is no longer new when the 

ultimate purchaser receives this title or 

the product is placed into service, 

whichever comes first. 

(2) A nonroad piece of equipment 

with an engine that becomes new while 

installed in the equipment. For example 

a complete piece of equipment that was 

imported without being covered by a 

certificate of conformity would be new 

nonroad equipment because the engine 

would be considered to be new at the 

time of importation. 

Noncompliant engine or 

noncompliant equipment means an 

engine or equipment that was originally 

covered by a certificate of conformity 

but is not in the certified configuration 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28343 

or otherwise does not comply with the 

conditions of the certificate. 

Nonconforming engine or 

nonconforming equipment means an 

engine or equipment not covered by a 

certificate of conformity that would 

otherwise be subject to emission 

standards. 

Nonhandheld means relating to an 

engine subject to the standards of this 

part that is not a handheld engine. 

Nonintegrated equipment 

manufacturer means an equipment 

manufacturer that is not an integrated 

equipment manufacturer. Equipment 

manufacturers that manufacture the 

engines for some but not all of their 

equipment are considered to be 

nonintegrated manufacturers for that 

equipment using a different engine 

manufacturer’s engines. 

Nonmethane hydrocarbon has the 

meaning given in 40 CFR 1065.1001. 

This generally means the difference 

between the emitted mass of total 

hydrocarbons and the emitted mass of 

methane. 

Nonroad means relating to nonroad 

engines or equipment that includes 

nonroad engines. 

Nonroad engine has the meaning 

given in 40 CFR 1068.30. In general this 

means all internal-combustion engines 

except motor vehicle engines, stationary 

engines, engines used solely for 

competition, or engines used in aircraft. 

Official emission result means the 

measured emission rate for an emissiondata engine on a given duty cycle before 

the application of any deterioration 

factor. 

Overhead valve means relating to a 

four-stroke spark-ignition engine in 

which the intake and exhaust valves are 

located above the combustion chamber 

within the cylinder head. Such engines 

are sometimes referred to as ‘‘valve-inhead’’ engines. 

Owners manual means a document or 

collection of documents prepared by the 

engine manufacturer for the owner or 

operator to describe appropriate engine 

maintenance, applicable warranties, and 

any other information related to 

operating or keeping the engine. The 

owners manual is typically provided to 

the ultimate purchaser at the time of 

sale. 

Oxides of nitrogen has the meaning 

given in 40 CFR part 1065.1001 

Percent has the meaning given in 40 

CFR 1065.1001. 

Permeation emissions means fuel that 

escapes from the fuel system by 

diffusing through the walls of fuelsystem components. 

Phase 1 means relating to the Phase 

1 emission standards described in 40 

CFR 90.103. 

Phase 2 means relating to the Phase 

2 emission standards described in 40 

CFR 90.103. 

Phase 3 means relating to the Phase 

3 exhaust emission standards described 

in § 1054.105. 

Placed into service means put into 

initial use for its intended purpose. 

Pressurized oil system means a system 

designed to deliver lubricating oil to 

internal engine components, including a 

step to circulate oil through a filter. 

Ramped-modal means relating to the 

ramped-modal type of steady-state test 

described in § 1054.505. 

Rated speed means one of the 

following: 

(1) For ungoverned handheld engines, 

rated speed means the most common 

engine speed for full-load operation 

with in-use engines from a given engine 

family. 

(2) For governed handheld engines, 

rated speed means maximum test speed, 

as defined in 40 CFR 1065.1001. 

(3) For nonhandheld engines, rated 

speed has the meaning given in 

§ 1054.505(d). 

Rated-speed equipment means 

nonroad equipment in which the 

installed engine is intended for 

operation at a rated speed that is 

nominally 3600 rpm or higher. 

Recreational application means an 

application in which a vehicle is ridden 

primarily for pleasure. Note that engines 

used in reduced-scale model vehicles 

that cannot be ridden (such as model 

airplanes) are excluded from this part 

under § 1054.5. 

Revoke has the meaning given in 40 

CFR 1068.30. In general this means to 

terminate the certificate or an 

exemption for an engine family. 

Round has the meaning given in 40 

CFR 1065.1001. 

Running loss emissions has the 

meaning given in 40 CFR 1060.801. 

Scheduled maintenance means 

adjusting, repairing, removing, 

disassembling, cleaning, or replacing 

components or systems periodically to 

keep a part or system from failing, 

malfunctioning, or wearing prematurely. 

It also may mean actions you expect are 

necessary to correct an overt indication 

of failure or malfunction for which 

periodic maintenance is not 

appropriate. 

Side valve means relating to a fourstroke spark-ignition engine in which 

the intake and exhaust valves are 

located to the side of the cylinder, not 

within the cylinder head. Such engines 

are sometimes referred to as ‘‘L-head’’

engines. 

Small-volume emission family means 

any emission family whose U.S.- 

directed production volume in a given 

model year is projected at the time of 

certification to be no more than 5,000 

engines. 

Small-volume engine manufacturer 

means one of the following: 

(1) For handheld engines, an engine 

manufacturer that had U.S.-directed 

production volume of handheld engines 

of no more than 25,000 handheld 

engines in any calendar year. For 

manufacturers owned by a parent 

company, this production limit applies 

to the production of the parent company 

and all its subsidiaries. 

(2) For nonhandheld engines, an 

engine manufacturer that had U.S.- 

directed production volume of no more 

than 10,000 nonhandheld engines in 

any calendar year. For manufacturers 

owned by a parent company, this 

production limit applies to the 

production of the parent company and 

all its subsidiaries. 

(3) An engine manufacturer that we 

designate to be a small-volume engine 

manufacturer under § 1054.635. 

Small-volume equipment 

manufacturer means one of the 

following: 

(1) For handheld equipment, an 

equipment manufacturer that had a 

U.S.-directed production volume of no 

more than 25,000 pieces of handheld 

equipment in any calendar year. For 

manufacturers owned by a parent 

company, this production limit applies 

to the production of the parent company 

and all its subsidiaries. 

(2) For nonhandheld equipment, an 

equipment manufacturer with annual 

average U.S.-directed production 

volumes of no more than 5,000 pieces 

of nonhandheld equipment in 2007 

through 2009. For manufacturers owned 

by a parent company, this production 

limit applies to the production of the 

parent company and all its subsidiaries. 

(3) An equipment manufacturer that 

we designate to be a small-volume 

equipment manufacturer under 

§ 1054.635. 

Snowthrower engine means an engine 

used exclusively to power 

snowthrowers. 

Spark-ignition means relating to a 

gasoline-fueled engine or any other type 

of engine with a spark plug (or other 

sparking device) and with operating 

characteristics significantly similar to 

the theoretical Otto combustion cycle. 

Spark-ignition engines usually use a 

throttle to regulate intake air flow to 

control power during normal operation. 

Steady-state means relating to 

emission tests in which engine speed 

and load are held at a finite set of 

essentially constant values. Steady-state 

tests are either discrete-mode tests or 

ramped-modal tests. 


sroberts on PROD1PC70 with PROPOSALS
28344 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Structurally integrated nylon fuel tank 

has the meaning given in 40 CFR 

1060.801. 

Subchapter U means the portion of 

the Code of Federal Regulations 

including 40 CFR parts 1000 through 

1299. 

Suspend has the meaning given in 40 

CFR 1068.30. In general this means to 

temporarily discontinue the certificate 

or an exemption for an engine family. 

Test engine means an engine in a test 

sample. 

Test sample means the collection of 

engines selected from the population of 

an emission family for emission testing. 

This may include testing for 

certification, production-line testing, or 

in-use testing. 

Tethered gas cap means a gas cap that 

is loosely but permanently connected to 

the fuel tank. 

Thermal reactor means a hot surface 

in the engine exhaust system that has 

the effect of significantly lowering 

emissions of one or more regulated 

pollutants. Hot surfaces that have an 

inconsequential effect on emissions are 

not thermal reactors. 

Total hydrocarbon has the meaning 

given in 40 CFR 1065.1001. This 

generally means the combined mass of 

organic compounds measured by the 

specified procedure for measuring total 

hydrocarbon, expressed as a 

hydrocarbon with a hydrogen-to-carbon 

mass ratio of 1.85:1. 

Total hydrocarbon equivalent has the 

meaning given in 40 CFR 1065.1001. 

This generally means the sum of the 

carbon mass contributions of nonoxygenated hydrocarbons, alcohols and 

aldehydes, or other organic compounds 

that are measured separately as 

contained in a gas sample, expressed as 

exhaust hydrocarbon from petroleumfueled locomotives. The hydrogen-tocarbon ratio of the equivalent 

hydrocarbon is 1.85:1. 

Ultimate purchaser means, with 

respect to any new nonroad equipment 

or new nonroad engine, the first person 

who in good faith purchases such new 

nonroad equipment or new nonroad 

engine for purposes other than resale. 

United States has the meaning given 

in 40 CFR 1068.30. 

Upcoming model year means for an 

emission family the model year after the 

one currently in production. 

U.S.-directed production volume 

means the number of engine units, 

subject to the requirements of this part, 

produced by a manufacturer for which 

the manufacturer has a reasonable 

assurance that sale was or will be made 

to ultimate purchasers in the United 

States. 

Useful life means the period during 

which the engine and equipment are 

designed to properly function in terms 

of power output and intended function 

without being remanufactured, specified 

as a number of hours of operation. It is 

the period during which a new nonroad 

engine is required to comply with all 

applicable emission standards. See 

§§ 1054.107 and 1054.110. If an engine 

has no hour meter, the specified number 

of hours does not limit the period 

during which an in-use engine is 

required to comply with emission 

standards, unless the degree of service 

accumulation can be verified separately. 

Variable-speed engine means an 

engine that is not a constant-speed 

engine. 

Vessel means marine vessel. 

Void has the meaning given in 40 CFR 

1068.30. In general this means to 

invalidate a certificate or an exemption 

both retroactively and prospectively. 

Volatile liquid fuel means any fuel 

other than diesel or biodiesel that is a 

liquid at atmospheric pressure and has 

a Reid Vapor Pressure higher than 2.0 

pounds per square inch. 

We (us, our) means the Administrator 

of the Environmental Protection Agency 

and any authorized representatives. 

Wide-open throttle means maximum 

throttle opening. 

Wintertime engine means an engine 

used exclusively to power equipment 

that is used only in wintertime, such as 

snowthrowers and ice augers. 

§ 1054.805 What symbols, acronyms, and 

abbreviations does this part use? 

The following symbols, acronyms, 

and abbreviations apply to this part: 

ABT Averaging, banking, and trading. 

cc cubic centimeters. 

CFR Code of Federal Regulations. 

CO carbon monoxide. 

CO2 carbon dioxide. 

EPA Environmental Protection Agency. 

FEL Family Emission Limit. 

g gram. 

HC hydrocarbon. 

hr hour. 

kPa kilopascals. 

kW kilowatts. 

NARA National Archives and Records 

Administration. 

NIST National Institute of Standards and 

Technology. 

NMHC nonmethane hydrocarbons. 

NOX oxides of nitrogen (NO and NO2). 

psig pounds per square inch of gauge 

pressure. 

RPM revolutions per minute. 

SAE Society of Automotive Engineers. 

THC total hydrocarbon. 

THCE total hydrocarbon equivalent. 

U.S.C. United States Code. 

§ 1054.810 What materials does this part 

reference? 

Documents listed in this section have 

been incorporated by reference into this 

part. The Director of the Federal 

Register approved the incorporation by 

reference as prescribed in 5 U.S.C. 

552(a) and 1 CFR part 51. Anyone may 

inspect copies at the U.S. EPA, Air and 

Radiation Docket and Information 

Center, 1301 Constitution Ave., NW., 

Room B102, EPA West Building, 

Washington, DC 20460 or at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to: http://www.archives.gov/ 

federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

(a) SAE material. Table 1 of this 

section lists material from the Society of 

Automotive Engineers that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

Society of Automotive Engineers, 400 

Commonwealth Drive, Warrendale, PA 

15096 or www.sae.org. Table 1 follows: 

TABLE 1 TO § 1054.810.—SAE MATERIALS

Document number and name Part 1054 

reference 

SAE J30, Fuel and Oil Hoses, June 1998 .......................................................................................................................................... 1054.245, 

1054.501 

SAE J1930, Electrical/Electronic Systems Diagnostic Terms, Definitions, Abbreviations, and Acronyms, revised May 1998 ......... 1054.135 

SAE J2260, Nonmetallic Fuel System Tubing with One or More Layers, November 1996 ............................................................... 1054.245 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28345 

(b) ASTM material. Table 2 of this 

section lists material from the American 

Society for Testing and Materials that 

we have incorporated by reference. The 

first column lists the number and name 

of the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

American Society for Testing and 

Materials, 100 Barr Harbor Dr., P.O. Box 

C700, West Conshohocken, PA 19428 or 

www.astm.org. Table 2 follows: 

TABLE 2 TO § 1054.810—ASTM MATERIALS

Document number and name Part 1054 reference 

ASTM D471–98, Standard Test Method for Rubber Property—ffect of Liquids ................................................................................. 1054.501 

ASTM D814–95 (reapproved 2000), Standard Test Method for Rubber Property—Vapor Transmission of Volatile Liquids ........... 1054.245 

§ 1054.815 What provisions apply to 

confidential information? 

(a) Clearly show what you consider 

confidential by marking, circling, 

bracketing, stamping, or some other 

method. 

(b) We will store your confidential 

information as described in 40 CFR part 

2. Also, we will disclose it only as 

specified in 40 CFR part 2. This applies 

both to any information you send us and 

to any information we collect from 

inspections, audits, or other site visits. 

(c) If you send us a second copy 

without the confidential information, 

we will assume it contains nothing 

confidential whenever we need to 

release information from it. 

(d) If you send us information without 

claiming it is confidential, we may make 

it available to the public without further 

notice to you, as described in 40 CFR 

2.204. 

§ 1054.820 How do I request a hearing? 

(a) You may request a hearing under 

certain circumstances, as described 

elsewhere in this part. To do this, you 

must file a written request, including a 

description of your objection and any 

supporting data, within 30 days after we 

make a decision. 

(b) For a hearing you request under 

the provisions of this part, we will 

approve your request if we find that 

your request raises a substantial factual 

issue. 

(c) If we agree to hold a hearing, we 

will use the procedures specified in 40 

CFR part 1068, subpart G. 

§ 1054.825 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for engines and equipment regulated 

under this part: 

(a) We specify the following 

requirements related to engine 

certification in this part 1054: 

(1) In § 1054.20 we require equipment 

manufacturers to label their vessels if 

they are relying on component 

certification. 

(2) In § 1054.135 we require engine 

manufacturers to keep certain records 

related to duplicate labels sent to 

equipment manufacturers. 

(3) In § 1054.145 we include various 

reporting and recordkeeping 

requirements related to interim 

provisions. 

(4) In subpart C of this part we 

identify a wide range of information 

required to certify engines. 

(5) In §§ 1054.345 and 1054.350 we 

specify certain records related to 

production-line testing. 

(6) [Reserved] 

(7) In subpart G of this part we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various special compliance 

provisions. 

(8) In §§ 1054.725, 1054.730, and 

1054.735 we specify certain records 

related to averaging, banking, and 

trading. 

(b) We specify the following 

requirements related to equipment and 

component certification in 40 CFR part 

1060: 

(1) In 40 CFR 1060.20 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR part 1060, subpart C, we 

identify a wide range of information 

required to certify products. 

(3) In 40 CFR 1060.301 we require 

manufacturers to make engines or 

equipment available for our testing if we 

make such a request. 

(4) In 40 CFR 1060.505 we specify 

information needs for establishing 

various changes to published test 

procedures. 

(c) We specify the following 

requirements related to testing in 40 

CFR part 1065: 

(1) In 40 CFR 1065.2 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR 1065.10 and 1065.12 we 

specify information needs for 

establishing various changes to 

published test procedures. 

(3) In 40 CFR 1065.25 we establish 

basic guidelines for storing test 

information. 

(4) In 40 CFR 1065.695 we identify 

data that may be appropriate for 

collecting during testing of in-use 

engines using portable analyzers. 

(d) We specify the following 

requirements related to the general 

compliance provisions in 40 CFR part 

1068: 

(1) In 40 CFR 1068.5 we establish a 

process for evaluating good engineering 

judgment related to testing and 

certification. 

(2) In 40 CFR 1068.25 we describe 

general provisions related to sending 

and keeping information. 

(3) In 40 CFR 1068.27 we require 

manufacturers to make engines available 

for our testing or inspection if we make 

such a request. 

(4) In 40 CFR 1068.105 we require 

equipment manufacturers to keep 

certain records related to duplicate 

labels from engine manufacturers. 

(5) In 40 CFR 1068.120 we specify 

recordkeeping related to rebuilding 

engines. 

(6) In 40 CFR part 1068, subpart C, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various exemptions. 

(7) In 40 CFR part 1068, subpart D, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to importing engines. 

(8) In 40 CFR 1068.450 and 1068.455 

we specify certain records related to 

testing production-line engines in a 

selective enforcement audit. 

(9) In 40 CFR 1068.501 we specify 

certain records related to investigating 

and reporting emission-related defects. 


sroberts on PROD1PC70 with PROPOSALS
28346 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(10) In 40 CFR 1068.525 and 1068.530 

we specify certain records related to 

recalling nonconforming engines. 

Appendix I to Part 1054—Summary of 

Previous Emission Standards 

The following standards apply to nonroad 

spark-ignition engines produced before the 

model years specified in § 1054.1: 

(a) Handheld engines. Phase 1 and Phase 

2 standards apply for handheld engines as 

specified in 40 CFR 90.103 and summarized 

in the following tables: 

TABLE 1 TO APPENDIX I.—PHASE 1 EMISSION STANDARDS FOR HANDHELD ENGINES (g/kW-hr) a

Engine displacement class HC NOX CO 

Class III ........................................................................................................................................ 295 5.36 805 

Class IV ....................................................................................................................................... 241 5.36 805 

Class V ........................................................................................................................................ 161 5.36 603 

aPhase 1 standards are based on testing with new engines only. 

TABLE 2 TO APPENDIX I.—PHASE 2 EMISSION STANDARDS FOR HANDHELD ENGINES (g/kW-hr) a

Engine displacement class HC+NOX CO 

Class III .................................................................................................................................................................... 50 805 

Class IV ................................................................................................................................................................... 50 805 

Class V .................................................................................................................................................................... 72 603 

aThe standards shown are the fully phased-in standards. See 40 CFR 90.103 for standards that applied during the phase-in period.

(b) Nonhandheld engines. Phase 1 and 

Phase 2 standards apply for nonhandheld 

engines as specified in 40 CFR 90.103 and 

summarized in the following tables: 

TABLE 3 TO APPENDIX I.—PHASE 1 EMISSION STANDARDS FOR NONHANDHELD ENGINES (g/kW-hr) a

Engine displacement class HC+NOX CO 

Class I ...................................................................................................................................................................... 16.1 519 

Class II ..................................................................................................................................................................... 13.4 519 

aPhase 1 standards are based on testing with new engines only. 

TABLE 4 TO APPENDIX I.—PHASE 2 EMISSION STANDARDS FOR NONHANDHELD ENGINES (g/kW-hr) 

Engine displacement class HC+NOX NMHC+NOX CO 

Class I–A ................................................................................................................................. 50 .......................... 610 

Class I–B ................................................................................................................................. 40 37 610 

Class I ...................................................................................................................................... 16 .1 14 .8 610 

Class II a ................................................................................................................................... 12 .1 11 .3 610 

aThe Class II standards shown are the fully phased-in standards. See 40 CFR 90.103 for standards that applied during the phase-in period. 

Appendix II to Part 1054—Duty Cycles 

for Laboratory Testing 

(a) Test handheld engines with the 

following steady-state duty cycle: 

G3 mode 

number 

Engine 

speed a

Torque 

(percent) b

Weighting 

factors 

1 ............ Rated 

speed.

100 0.85 

2 ............ Idle 

speed.

0 0.15 

a ‘‘Rated speed’’ is defined in § 1054.801; 

‘‘Idle speed’’ is defined in 40 CFR part 

1065.1001. bThe percent torque is relative to maximum 

test torque. 

(b) Test nonhandheld engines with one of 

the following steady-state duty cycles: 

(1) The following duty cycle applies for 

discrete-mode testing: 

G2 mode number a

Torque 

(percent) b

Weighting 

factors 

1 .............................. 100 0 .09 

2 .............................. 75 0 .2 

3 .............................. 50 0 .29 

4 .............................. 25 0 .3 

5 .............................. 10 0 .07 

6 .............................. 0 0 .05 

a Control engine speed as described in 

§ 1054.505. Control engine speed for Mode 6 

as described in § 1054.505(c) for idle operation. bThe percent torque is relative to the value 

established for full-load torque, as described in 

§ 1054.505. 

(2) The following duty cycle applies for 

ramped-modal testing: 

RMC mode a

Time in 

mode 

(seconds) 

Torque 

(percent) b, c

1a Steady-state 41 0 

1b Transition ... 20 Linear Transition 

2a Steady-state 135 100 

2b Transition ... 20 Linear Transition 

3a Steady-state 112 10 

3b Transition ... 20 Linear Transition 

4a Steady-state 337 75 

4b Transition ... 20 Linear Transition 

5a Steady-state 518 25 

5b Transition ... 20 Linear Transition 

6a Steady-state 494 50 

6b Transition ... 20 Linear Transition 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28347 

RMC mode a

Time in 

mode 

(seconds) 

Torque 

(percent) b, c

7 Steady-state 43 0 

a Control engine speed as described in 

§ 1054.505. Control engine speed for Mode 6 

as described in § 1054.505(c) for idle operation. bAdvance from one mode to the next within 

a 20-second transition phase. During the transition phase, command a linear progression 

from the torque setting of the current mode to 

the torque setting of the next mode. cThe percent torque is relative to the value 

established for full-load torque, as described in 

§ 1054.505. 

Appendix III to Part 1054—HighAltitude Counties 

The following counties have areas above 

4,000 feet above sea level and are therefore 

considered to be high-altitude counties: 

State of Arizona 

Apache 

Cochise 

Coconino 

Navajo 

Yavapai 

State of Colorado 

Adams 

Alamosa 

Arapahoe 

Archuleta 

Boulder 

Chaffee 

Cheyenne 

Clear Creek 

Conejos 

Costilla 

Crowley 

Custer 

Delta 

Denver 

Dolores 

Douglas 

Eagle 

Elbert 

El Paso 

Fremont 

Garfield 

Gilpin 

Grand 

Gunnison 

Hinsdale 

Huerfano 

Jackson 

Jefferson 

Kit Carson 

Lake 

La Plata 

Larimer 

Las Animas 

Lincoln 

Mesa 

Mineral 

Moffat 

Montezuma 

Montrose 

Morgan 

Otero 

Ouray 

Park 

Pitkin 

Pueblo 

Rio Blanco 

Rio Grande 

Routt 

Saguache 

San Juan 

San Miguel 

Summit 

Teller 

Washington 

Weld 

State of Idaho 

Bannock 

Bear Lake 

Bingham 

Blaine 

Bonneville 

Butte 

Camas 

Caribou 

Cassia 

Clark 

Custer 

Franklin 

Fremont 

Jefferson 

Lemhi 

Madison 

Minidoka 

Oneida 

Power 

Teton 

Valley 

State of Montana 

Beaverhead 

Deer Lodge 

Gallatin 

Jefferson 

Judith Basin 

Powell 

Madison 

Meagher 

Park 

Silver Bow 

Wheatland 

State of Nebraska 

Banner 

Cheyenne 

Kimball 

Sioux 

State of Nevada 

Carson City 

Douglas 

Elko 

Esmeralda 

Eureka 

Humboldt 

Lander 

Lincoln 

Lyon 

Mineral 

Nye 

Pershing 

Storey 

Washoe 

White Pine 

State of New Mexico 

Bernalillo 

Catron 

Colfax 

Curry 

De Baca 

Grant 

Guadalupe 

Harding 

Hidalgo 

Lincoln 

Los Alamos 

Luna 

McKinley 

Mora 

Otero 

Rio Arriba 

Roosevelt 

Sandoval 

San Juan 

San Miguel 

Santa Fe 

Sierra 

Socorro 

Taos 

Torrance 

Union 

Valencia 

State of Oregon 

Harney 

Lake 

Klamath 

State of Texas 

Jeff Davis 

Judspeth 

Parmer 

State of Utah 

Beaver 

Box Elder 

Cache 

Carbon 

Daggett 

Davis 

Duchesne 

Emery 

Garfield 

Grand 

Iron 

Juab 

Kane 

Millard 

Morgan 

Piute 

Rich 

Salt Lake 

San Juan 

Sanpete 

Sevier 

Summit 

Tooele 

Uintah 

Utah 

Wasatch 

Wayne 

Weber 

State of Wyoming 

Albany 

Campbell 

Carbon 

Converse 

Fremont 

Goshen 

Hot Springs 

Johnson 

Laramie 

Lincoln 

Natrona 

Niobrara 


sroberts on PROD1PC70 with PROPOSALS
28348 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Park 

Platte 

Sublette 

Sweetwater 

Teton 

Uinta 

Washakie 

Weston 

133. A new part 1060 is added to 

subchapter U of chapter I to read as 

follows: 

PART 1060—CONTROL OF 

EVAPORATIVE EMISSIONS FROM 

NEW AND IN-USE NONROAD AND 

STATIONARY EQUIPMENT 

Subpart A—Overview and Applicability 

Sec. 

1060.1 Which products are subject to this 

part’s requirements? 

1060.5 Do the requirements of this part 

apply to me? 

1060.10 How is this part organized? 

1060.15 Do any other regulation parts apply 

to me? 

1060.20 Submission of information. 

Subpart B—Emission Standards and 

Related Requirements 

1060.101 What evaporative emission 

requirements apply under this part? 

1060.102 What permeation emission 

control requirements apply for fuel 

lines? 

1060.103 What permeation emission 

control requirements apply for fuel 

tanks? 

1060.104 What running loss emission 

control requirements apply? 

1060.105 What diurnal and diffusion 

requirements apply for equipment? 

1060.120 What emission-related warranty 

requirements apply? 

1060.125 What maintenance instructions 

must I give to buyers? 

1060.130 What installation instructions 

must I give to equipment manufacturers? 

1060.135 How must I label and identify the 

engines and equipment I produce? 

1060.136 How must I label and identify the 

fuel lines I produce? 

1060.137 How must I label and identify the 

fuel tanks I produce? 

1060.138 How must I label and identify 

other emission-related components I 

produce? 

Subpart C—Certifying Emission 

Families 

1060.201 What are the general requirements 

for obtaining a certificate of conformity? 

1060.202 What are the certification 

requirements related to the general 

standards in § 1060.101? 

1060.205 What must I include in my 

application? 

1060.210 What records should equipment 

manufacturers keep if they do not apply 

for certification? 

1060.225 How do I amend my application 

for certification? 

1060.230 How do I select emission 

families? 

1060.235 What emission testing must I 

perform for my application for a 

certificate of conformity? 

1060.240 How do I demonstrate that my 

emission family complies with 

evaporative emission standards? 

1060.250 What records must I keep and 

what reports must I send to EPA? 

1060.255 What decisions may EPA make 

regarding my certificate of conformity? 

Subpart D—Production Verification 

Testing 

1060.301 Manufacturer testing. 

1060.310 Supplying products to EPA for 

testing. 

Subpart E—In-Use Testing 

1060.401 General Provisions. 

Subpart F—Test Procedures 

1060.501 General testing provisions. 

1060.505 Other procedures. 

1060.510 How do I test EPA Low Emission 

Fuel Lines for permeation emissions? 

1060.515 How do I test EPA Nonroad Fuel 

Lines for permeation emissions? 

1060.520 How do I test fuel tanks for 

permeation emissions? 

1060.521 How do I test fuel caps for 

permeation emissions? 

1060.525 How do I test fuel systems for 

diurnal emissions? 

1060.530 How do I test fuel systems for 

diffusion emissions? 

1060.535 How do I measure fuel 

temperatures to comply with running 

loss requirements? 

Subpart G—Special Compliance 

Provisions 

1060.601 How do the prohibitions of 40 

CFR 1068.101 apply with respect to the 

requirements of this part? 

1060.605 Exemptions from evaporative 

emission standards. 

1060.640 What special provisions apply to 

branded equipment? 

Subpart H—Averaging, Banking, and 

Trading Provisions 

1060.701 Applicability. 

1060.705 How do I certify components to 

an emission level other than the standard 

under this part or use such components 

in my equipment? 

Subpart I—Definitions and Other 

Reference Information 

1060.801 What definitions apply to this 

part? 

1060.805 What symbols, acronyms, and 

abbreviations does this part use? 

1060.810 What materials does this part 

reference? 

1060.815 What provisions apply to 

confidential information? 

1060.820 How do I request a hearing? 

1060.825 What reporting and recordkeeping 

requirements apply under this part? 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—Overview and Applicability 

§ 1060.1 Which products are subject to 

this part’s requirements? 

(a) The standards and other 

requirements in this part 1060 apply to 

fuel lines, fuel tanks, couplings and 

fittings, and fuel caps used or intended 

to be used in the following categories of 

new engines and equipment that are 

fueled with a volatile liquid fuel (such 

as gasoline or ethanol, but not including 

diesel fuel), and the equipment in 

which these components are installed, 

starting with the model years shown in 

Table 1 of this section: 

(1) Compression-ignition engines we 

regulate under 40 CFR part 1039. This 

includes stationary compressionignition engines we regulate under the 

provisions of 40 CFR part 1039, as 

indicated under 40 CFR part 60, subpart 

IIII. See the evaporative emission 

standards specified in 40 CFR 1048.105. 

These engines are considered to be 

Large SI engines for purposes of this 

part 1060. 

(2) Marine compression-ignition 

engines we regulate under 40 CFR part 

1042. See the evaporative emission 

standards specified in 40 CFR 1045.107. 

These engines are considered to be 

Marine SI engines for purposes of this 

part 1060. 

(3) Marine SI engines we regulate 

under 40 CFR part 1045. See the 

evaporative emission standards 

specified in 40 CFR 1045.107. 

(4) Large SI engines we regulate under 

40 CFR part 1048. This includes 

stationary spark-ignition engines subject 

to standards under 40 CFR parts 1048 or 

1054 as indicated in 40 CFR part 60, 

subpart JJJJ. See the evaporative 

emission standards specified in 40 CFR 

1048.105. 

(5) Recreational vehicles and engines 

we regulate under 40 CFR part 1051 

(such as snowmobiles and off-highway 

motorcycles). This includes highway 

motorcycles subject to standards under 

40 CFR part 1051 as indicated in 40 CFR 

part 86, subpart E since these 

motorcycles are considered to be 

recreational vehicles for purposes of this 

part 1060. See the evaporative emission 

standards specified in 40 CFR 1051.110. 

(6) Small SI engines we regulate 

under 40 CFR part 1054. See the 

evaporative emission standards 

specified in 40 CFR 1054.110. 

(7) Portable marine fuel tanks and fuel 

lines associated with such fuel tanks 

must meet evaporative emission 

standards specified in 40 CFR 1045.107. 

Portable nonroad fuel tanks and fuel 

lines associated with such fuel tanks 

must also meet evaporative emission 

standards specified in 40 CFR 1045.107, 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28349 

whether or not they are used with 

marine vessels. Portable nonroad fuel 

tanks are considered to be portable 

marine fuel tanks for purposes of this 

part 1060. 

(b) The regulations in this part 1060 

apply for new replacement components 

used with any of the engines or 

equipment specified in paragraph (a) of 

this section as described in § 1060.601. 

(c) Fuel caps are subject to 

evaporative emission standards at the 

point of installation on a fuel tank. If a 

fuel cap is certified for use with Marine 

SI engines or Small SI engines under the 

optional standards of § 1060.103, it is 

subject to all the requirements of this 

part 1060 as if these optional standards 

were mandatory. 

(d) This part 1060 does not apply to 

any diesel-fueled engine or any other 

engine that does not use a volatile liquid 

fuel. In addition, this part does not 

apply to any engines or equipment in 

the following categories even if they use 

a volatile liquid fuel: 

(1) Light-duty motor vehicles (see 40 

CFR part 86). 

(2) Heavy-duty motor vehicles and 

heavy-duty motor vehicle engines (see 

40 CFR part 86). 

(3) Aircraft engines (see 40 CFR part 

87). 

(4) Locomotives (see 40 CFR part 92). 

(5) Land-based nonroad diesel engines 

we regulate under 40 CFR part 89. 

(6) Marine diesel engines we regulate 

under 40 CFR part 89 or 94. 

(7) Marine spark-ignition engines we 

regulate under 40 CFR part 91. 

(e) This part 1060 does not apply for 

fuel lines made wholly of metal. 

TABLE 1 TO § 1060.1—PART 1060 APPLICABILITY BY MODEL YEAR

Equipment category or subcategory Fuel line permeation Tank permeation Diurnal or diffusion emissions Running loss emissions 

Marine SI—portable fuel tanks 2009 2011 ....................................... 2009 ....................................... Not applicable. 

Marine SI—personal 

watercraft.

2009 2011 ....................................... 2009 ....................................... Not applicable. 

Marine SI—other installed fuel 

tanks.

2009 2012 ....................................... 2010 ....................................... Not applicable. 

Large SI .................................. 2007 Not applicable ........................ 2007 (includes tank permeation).2007 

Recreational vehicles ............. 2008 2008 ....................................... Not applicable ........................ Not applicable. 

Small SI—handheld engines .. a 2012 2010 b ..................................... Not applicable ........................ Not applicable. 

Small SI—Class I 

nonhandheld engines.

2008 2012 ....................................... 2012 ....................................... 2012 

Small SI—Class II 

nonhandheld engines.

2008 2011 ....................................... 2011 ....................................... 2011 

a 2013 for small-volume emission families. 

b 2011 for structurally integrated nylon fuel tanks and 2013 for all small-volume emission families. 

§ 1060.5 Do the requirements of this part 

apply to me? 

The requirements of this part are 

generally addressed to manufacturers 

that are subject to this part’s 

requirements, as described in paragraph 

(a) of this section. The term ‘‘you’’

generally means the manufacturer or 

manufacturers that are subject to these 

requirements. Paragraphs (b) through (e) 

of this section describe which 

manufacturers may or must certify their 

products. (Note: § 1060.601 allows the 

certification responsibility to be 

delegated in certain circumstances.) 

(a) Overall responsibilities. 

Manufacturers of engines, equipment, 

and fuel-system components described 

in § 1060.1 are subject to the standards 

and other requirements of this part 1060 

except as otherwise noted. Multiple 

manufacturers may be subject to these 

standards and other requirements. For 

example, when a Small SI equipment 

manufacturer buys fuel lines 

manufactured by another person and 

installs them in its equipment, both the 

equipment manufacturer and the fuel 

line manufacturer are subject to the 

standards and other requirements of this 

part. The following provisions apply in 

such cases: 

(1) Each person meeting the definition 

of manufacturer that is subject to the 

standards and other requirements of this 

part must comply with such 

requirements. However, if one person 

complies with a specific requirement for 

a given product, then all manufacturers 

are deemed to have complied with that 

specific requirement. For example, if a 

Small SI equipment manufacturer uses 

fuel lines manufactured and certified by 

another company, the equipment 

manufacturer is not required to obtain a 

certificate with respect to the fuel line 

emission standards. The Small SI 

equipment manufacturer remains 

subject to the standards and other 

requirements of this part. However, 

where a provision requires a specific 

manufacturer to comply with certain 

provisions, this paragraph (a) does not 

change or modify such a requirement. 

For example, where this section 

specifies that a certain manufacturer 

must certify its product, this paragraph 

(a) does not modify or change that 

manufacturer’s obligation to comply 

with the certification requirements. 

(2) The requirements of subparts C 

and D of this part apply to the 

manufacturer that obtains the certificate 

of conformity. Other manufacturers are 

required to comply with the 

requirements of subparts C and D of this 

part only when we send notification. In 

our notification, we will specify a 

reasonable period for complying with 

the requirements identified in the 

notice. See § 1060.601 for the 

applicability of 40 CFR part 1068 to 

these other manufacturers. 

(3) Certificate holders are responsible 

for meeting all applicable requirements 

even if other manufacturers are also 

subject to those requirements. 

(b) Marine SI. Vessels, engines, and 

fuel-system components may be 

certified as follows: 

(1) Component manufacturers must 

certify their fuel lines and fuel tanks 

intended for installation with Marine SI 

engines and vessels under this part 

1060, except as allowed by § 1060.601. 

(2) Vessel manufacturers are subject to 

all the requirements of this part 1060 

that apply to Marine SI engines and fuel 

systems. However, they must certify 

their vessels to the emission standards 

specified in §§ 1060.102 through 

1060.105 only if one or more of the 

following conditions apply: 

(i) Vessel manufacturers install 

certified components that are not 

certified to meet all applicable 

evaporative emission standards. This 

would include vessel manufacturers 


sroberts on PROD1PC70 with PROPOSALS
28350 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

that make their own fuel tanks. Vessel 

manufacturers would certify under this 

part 1060. 

(ii) Vessel manufacturers intend to 

generate or use emission credits, even if 

they use only certified components to 

meet all applicable evaporative 

emission standards. Vessel 

manufacturers would certify under part 

40 CFR part 1045 using the emissioncredit provisions in subpart H of that 

part to demonstrate compliance with the 

emission standard. 

(3) For purposes of this part 1060, 

manufacturers of outboard engines must 

meet all the requirements that apply to 

vessel manufacturers. 

(c) Large SI. Engine manufacturers 

must certify their engines and fuel 

systems under 40 CFR part 1048. 

(d) Recreational vehicles. Vehicles, 

engines and fuel-system components 

may be certified as follows: 

(1) Vehicle and engine manufacturers 

must certify their vehicles and engines 

under 40 CFR part 1051. 

(2) Component manufacturers may 

certify fuel lines and fuel tanks intended 

for recreational vehicles under this part 

1060. 

(e) Small SI. Engines, equipment, and 

fuel-system components may be 

certified as follows: 

(1) Component manufacturers must 

certify their fuel lines and fuel tanks 

intended for Small SI engines and 

equipment under this part 1060, except 

as allowed by § 1060.601. 

(2) Engine and equipment 

manufacturers are subject to all the 

requirements of this part 1060 that 

apply to handheld Small SI engines and 

fuel systems. However, they must certify 

their engines or equipment to the 

emission standards specified in 

§§ 1060.102 through 1060.105 only if 

one or more of the following conditions 

apply: 

(i) Engine or equipment 

manufacturers install certified 

components that are not certified to 

meet all applicable evaporative 

emission standards. This would include 

engine or equipment manufacturers that 

make their own fuel tanks. Engine or 

equipment manufacturers would certify 

under this part 1060. 

(ii) Engine or equipment 

manufacturers intend to generate or use 

emission credits, even if they use only 

certified components to meet all 

applicable evaporative emission 

standards. Engine or equipment 

manufacturers would certify under part 

40 CFR part 1054 using the emissioncredit provisions in subpart H of that 

part to demonstrate compliance with the 

emission standard. 

(3) Engine manufacturers that produce 

nonhandheld Small SI engines with 

complete fuel systems must certify their 

engines and fuel systems under 40 CFR 

part 1054. 

(4) Equipment manufacturers are 

subject to all the requirements of this 

part 1060 that apply to nonhandheld 

Small SI engines and fuel systems. 

However, they must certify their 

equipment to the emission standards 

specified in §§ 1060.102 through 

1060.105 only if one or more of the 

following conditions apply: 

(i) The engine manufacturer’s 

certification does not cover running loss 

emission standards. Equipment 

manufacturers would certify under this 

part 1060. 

(ii) Equipment manufacturers install 

components that are not certified to 

meet all applicable evaporative 

emission standards. This would include 

equipment manufacturers that make 

their own fuel tanks. Equipment 

manufacturers would certify under this 

part 1060. 

(iii) Equipment manufacturers intend 

to generate or use emission credits, even 

if they use only certified components to 

meet all applicable evaporative 

emission standards. Equipment 

manufacturers would certify under part 

40 CFR part 1054 using the emissioncredit provisions in subpart H of that 

part to demonstrate compliance with the 

emission standard. 

(f) Summary of certification 

responsibilities. Tables 1 through 3 of 

this section summarize the certification 

responsibilities for different kinds of 

manufacturers as described in 

paragraphs (b) through (e) of this 

section. The term ‘‘No’’ as used in the 

tables means that a manufacturer is not 

required to obtain a certificate of 

conformity under paragraphs (b) 

through (e) of this section. In situations 

where multiple manufacturers are 

subject to the standards and other 

requirements of this part, such a 

manufacturer must nevertheless certify 

if the manufacturer who is required to 

certify under paragraphs (b) through (e) 

of this section fails to obtain a certificate 

of conformity. 

TABLE 1 TO § 1060.5—SUMMARY OF ENGINE MANUFACTURER CERTIFICATION RESPONSIBILITIES

Equipment type Is the engine manufacturer required to certify fuel systems? a Code of Federal Regulations cite for 

certification 

Marine SI ................ No, but manufacturers of outboard engines are treated as equipment manufacturers in this part.

Large SI .................. Yes ......................................................................................................................... 40 CFR part 1048. 

Recreational vehicles.No. 

Small SI .................. Handheld: No, unless engine manufacturers install uncertified components or 

intend to generate or use emission credits.

40 CFR part 1054. 

Nonhandheld: No, unless engines are sold with complete fuel systems ..............

aFuel lines and fuel tanks that are attached to or sold with engines must be covered by a certificate of conformity. 

TABLE 2 TO § 1060.5.—SUMMARY OF EQUIPMENT MANUFACTURER CERTIFICATION RESPONSIBILITIES

Equipment type Is the equipment manufacturer required to certify fuel systems? 

Code of Federal 

Regulations cite for 

certification 

Marine SI ................................................. Yes, but only if vessel manufacturers install uncertified fuel lines or fuel tanks 

or intend to generate or use emission credits.

40 CFR part 1060, 

or 40 CFR part 

1045 if certifying 

only for emission 

credits. 

Large SI .................................................. No. 

Recreational vehicles .............................. Yes, even if vehicle manufacturers install certified components. ......................... 40 CFR part 1051. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28351 

TABLE 2 TO § 1060.5.—SUMMARY OF EQUIPMENT MANUFACTURER CERTIFICATION RESPONSIBILITIES—Continued 

Equipment type Is the equipment manufacturer required to certify fuel systems? 

Code of Federal 

Regulations cite for 

certification 

Small SI ................................................... Handheld: No, unless equipment manufacturers install uncertified components 

or intend to generate or use emission credits.

40 CFR part 1060, 

or 40 CFR part 

1054 if certifying 

only for emission 

credits. 

Nonhandheld: No, unless equipment manufacturers (1) use an engine that has 

not already been certified for control of running loss emissions; (2) install 

uncertified components; or (3) intend to generate or use emission credits.

TABLE 3 TO § 1060.5.—SUMMARY OF COMPONENT MANUFACTURER CERTIFICATION RESPONSIBILITIES

Equipment type Is the component manufacturer required to certify fuel lines and fuel tanks? 

Code of Federal 

Regulations cite for 

certification 

Marine SI ................................................. Yes, including portable marine fuel tanks and associated fuel lines.a .................. 40 CFR part 1060. 

Large SI .................................................. No. 

Recreational vehicles .............................. Allowed but not required ........................................................................................ 40 CFR part 1060. 

Small SI ................................................... Yes a ...................................................................................................................... 40 CFR part 1060. 

aSee § 1060.601 for an allowance to make contractual arrangements with engine or equipment manufacturers instead of certifying. 

§ 1060.10 How is this part organized? 

This part 1060 is divided into the 

following subparts: 

(a) Subpart A of this part defines the 

applicability of part 1060 and gives an 

overview of regulatory requirements. 

(b) Subpart B of this part describes the 

emission standards and other 

requirements that must be met to certify 

equipment or components under this 

part. Note that § 1060.110 discusses 

certain interim requirements and 

compliance provisions that apply only 

for a limited time. 

(c) Subpart C of this part describes 

how to apply for a certificate of 

conformity. 

(d) Subpart D of this part describes 

the requirements related to verifying 

that products are being produced as 

described in an approved application 

for certification. 

(e) Subpart E of this part describes the 

requirements related to verifying that 

products are meeting the standards in 

use. 

(f) Subpart F of this part describes 

how to measure evaporative emissions. 

(g) Subpart G of this part and 40 CFR 

part 1068 describe requirements, 

prohibitions, and other provisions that 

apply to manufacturers, owners, 

operators, and all others. 

(h) Subpart H of this part describes 

how to certify your equipment or 

components for inclusion in an 

emission averaging program allowed by 

an exhaust standard-setting part. 

(i) Subpart I of this part contains 

definitions and other reference 

information. 

§ 1060.15 Do any other regulation parts 

apply to me? 

(a) There is a separate part of the CFR 

that includes exhaust emission 

requirements for each particular 

application. These are referred to as the 

exhaust standard-setting parts. In cases 

where the exhaust standard-setting part 

includes evaporative requirements, 

apply this part 1060 as specified in the 

exhaust standard-setting part, as 

follows: 

(1) The requirements in the exhaust 

standard-setting part may differ from the 

requirements in this part. In cases where 

it is not possible to comply with both 

the exhaust standard-setting part and 

this part, you must comply with the 

requirements in the exhaust standardsetting part. The exhaust standardsetting part may also allow you to 

deviate from the procedures of this part 

for other reasons. 

(2) The exhaust standard-setting parts 

may reference some sections of this part 

1060 or may allow or require 

certification under this part 1060. See 

the exhaust standard-setting parts, to 

determine what provisions of this part 

1060 apply for these equipment types. 

(b) The requirements and prohibitions 

of part 1068 of this chapter apply to 

everyone, including anyone who 

manufactures, imports, owns, operates, 

or services any of the fuel systems 

subject to this part 1060. Part 1068 of 

this chapter describes general 

provisions, including the following 

areas: 

(1) Prohibited acts and penalties for 

engine manufacturers, equipment 

manufacturers, and others. 

(2) Exclusions and exemptions for 

certain products. 

(3) Importing products. 

(4) Defect reporting and recall. 

(5) Procedures for hearings. 

(c) Other parts of this chapter apply 

if referenced in this part. 

§ 1060.20 Submission of information. 

(a) This part includes various 

requirements to record data or other 

information. Refer to § 1060.825, 40 CFR 

1068.25, and the exhaust standardsetting part regarding recordkeeping 

requirements. If recordkeeping 

requirements are not specified, store 

these records in any format and on any 

media and keep them readily available 

for one year after you send an associated 

application for certification, or one year 

after you generate the data if they do not 

support an application for certification. 

You must promptly send us organized, 

written records in English if we ask for 

them. We may review them at any time. 

(b) The regulations in § 1060.255 and 

40 CFR 1068.101 describe your 

obligation to report truthful and 

complete information and the 

consequences of failing to meet this 

obligation. This includes information 

not related to certification. 

Subpart B—Emission Standards and 

Related Requirements 

§ 1060.101 What evaporative emission 

requirements apply under this part? 

Products subject to this part must 

meet emission standards and related 

requirements as follows: 


sroberts on PROD1PC70 with PROPOSALS
28352 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(a) Section 1060.102 describes 

permeation emission control 

requirements for fuel lines. 

(b) Section 1060.103 describes 

permeation emission control 

requirements for fuel tanks. 

(c) Section 1060.104 describes 

running loss emission control 

requirements for fuel systems. 

(d) Section 1060.105 describes diurnal 

and diffusion emission control 

requirements for fuel tanks. 

(e) The following general 

requirements apply for components and 

equipment subject to the emission 

standards in §§ 1060.102 through 

1060.105: 

(1) Adjustable parameters. 

Components or equipment with 

adjustable parameters must meet all the 

requirements of this part for any 

adjustment in the physically adjustable 

range. 

(2) Prohibited controls. The following 

controls are prohibited: 

(i) For anyone to design, manufacture, 

or install emission control systems so 

they cause or contribute to an 

unreasonable risk to public health, 

welfare, or safety while operating. 

(ii) For anyone to design, 

manufacture, or install emission control 

systems with features that disable, 

deactivate, or bypass the emission 

controls, either actively or passively. 

For example, you may not include a 

manual vent that the operator can open 

to bypass emission controls. You may 

ask us to allow such features if needed 

for safety reasons or if the features are 

fully functional during emission tests 

described in subpart F of this part. 

(3) Emission credits. Equipment 

manufacturers are allowed to comply 

with the emission standards in this part 

using emission credits only if the 

exhaust standard-setting part explicitly 

allows it for evaporative emissions. See 

the exhaust standard-setting part and 

subpart H of this part for information 

about complying with emission credits. 

For equipment manufacturers to 

generate or use emission credits, 

components must be certified to a 

family emission limit (FEL), which 

serves as the standard for those 

components. 

(f) This paragraph (f) specifies 

requirements that apply to equipment 

manufacturers subject to requirements 

under this part, whether or not they are 

subject to and certify to any of the 

emission standards in §§ 1060.102 

through 1060.105. Equipment 

manufacturers meeting these 

requirements will be deemed to be 

certified as in conformity with the 

requirements of this paragraph (f) 

without submitting an application for 

certification, as follows: 

(1) Fuel caps, vents, and carbon 

canisters. You are responsible for 

ensuring that proper caps and vents are 

installed on each new piece of 

equipment that is subject to emission 

standards under this part. The following 

particular requirements apply to 

equipment that is subject to running 

loss, diurnal, or diffusion emission 

standards: 

(i) All equipment must have a 

tethered gas cap. Fuel caps for 

equipment subject to diurnal 

requirements must include a visual or 

audible indication when it is properly 

sealed. 

(ii) You may not add vents unless 

they are allowed by the applicable 

certificates of conformity. 

(iii) If the emission controls rely on 

carbon canisters, they must be installed 

such that they will not be exposed to 

water or liquid fuel. 

(2) Fuel-line fittings. The following 

requirements apply for fuel-line fittings 

that will be used with fuel lines that 

must meet permeation emission 

standards: 

(i) Use good engineering judgment to 

ensure that all fuel-line fittings will 

remain securely connected to prevent 

fuel leakage throughout the useful life of 

the equipment. 

(ii) Fuel lines that are intended to be 

detachable (such as those for portable 

marine fuel tanks) must be self-sealing 

when detached from the fuel tank or 

engine. 

(3) Refueling. For any equipment 

using fuel tanks that are subject to 

diurnal or permeation emission 

standards under this part, you must 

design and build your equipment such 

that operators can reasonably be 

expected to fill the fuel tank without 

spitback or spillage during the refueling 

event. The following examples illustrate 

designs that meet this requirement: 

(i) Equipment that is commonly 

refueled using a portable gasoline 

container should have a fuel inlet that 

is larger than a typical dispensing spout. 

The fuel inlet should be located so the 

operator can place the nozzle directly in 

the fuel inlet and see the fuel level 

while pouring the fuel (either through 

the tank wall or the fuel inlet). 

(ii) Marine SI vessels with a filler 

neck extending to the side of the boat 

should be designed for automatic fuel 

shutoff. Alternatively, the filler neck 

should be designed such that the 

orientation of the filler neck allows 

dispensed fuel that collects in the filler 

neck to flow back into the fuel tank. A 

filler neck that ends with a horizontal or 

nearly horizontal segment at the 

opening where fuel is dispensed would 

not be an acceptable design. 

(4) Opt-in by component 

manufacturers. Component 

manufacturers may at their option 

become subject to the requirements 

specified in paragraph (f) of this section. 

If a component manufacturer is certified 

to these standards, all the applicable 

requirements and these standards are 

considered mandatory. 

(g) Equipment must meet the 

standards specified in this part 

throughout the useful life of the 

equipment, where the useful life of the 

equipment is either: 

(1) The useful life in years specified 

for the equipment in the exhaust 

standard-setting part. 

(2) The useful life in years specified 

for the engine in the exhaust standardsetting part if the exhaust standards are 

specified for the engine rather than the 

equipment and there is no useful life 

given for the equipment. 

(3) Five years if no useful life is 

specified in years for the equipment or 

engine in the exhaust standard-setting 

part. 

§ 1060.102 What permeation emission 

control requirements apply for fuel lines? 

(a) Nonmetal fuel lines must meet 

permeation requirements as follows: 

(1) Marine SI fuel lines, including fuel 

lines associated with outboard engines 

or portable marine fuel tanks, must meet 

the permeation requirements in this 

section. 

(2) Large SI fuel lines must meet the 

permeation requirements specified in 40 

CFR 1048.105. 

(3) Fuel lines for recreational vehicles 

must meet the permeation requirements 

specified in 40 CFR 1051.110 or in this 

section. 

(4) Small SI fuel lines must meet the 

permeation requirements in this section. 

(b) Different categories of nonroad 

equipment are subject to different 

requirements with respect to fuel line 

permeation. Fuel lines are classified 

based on measured emissions over the 

test procedure specified for the class. 

(Note: The test procedure for EPA LEFL 

lines is performed at a higher 

temperature than the test procedures for 

other classes, such that emissions 

measured using the EPA LEFL 

procedure will be substantially higher 

than emissions from the same fuel line 

measured with the EPA NRFL test 

procedure.) 

(c) The regulations in 40 CFR part 

1048 require that fuel lines used with 

Large SI engines must meet the 

standards for EPA LEFL fuel lines. The 

regulations in 40 CFR part 1054 require 

that fuel lines used with handheld 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28353 

Small SI engines used in cold-weather 

equipment must meet the standards for 

EPA CWFL fuel lines. Unless specified 

otherwise in this subchapter U, fuel 

lines used with all other engines and 

equipment subject to the provisions of 

this part 1060, including fuel lines 

associated with outboard engines or 

portable marine fuel tanks, must meet 

the standards for EPA NRFL fuel lines. 

(d) The following standards apply for 

each fuel line classification: 

(1) EPA LEFL fuel lines must have 

permeation emissions at or below 25 g/ 

m2/day when measured according to the 

test procedure described in § 1060.510. 

(2) EPA NRFL fuel lines must have 

permeation emissions at or below 15 g/ 

m2/day when measured according to the 

test procedure described in § 1060.515. 

(3) EPA CWFL fuel lines must have 

permeation emissions at or below 175 g/ 

m2/day when measured according to the 

test procedure described in § 1060.515. 

(e) You may certify fuel lines for use 

as sections of any length. Also, you may 

certify fuel line assemblies as aggregated 

systems that include multiple sections 

of fuel line with connectors, and 

fittings. For example, you may certify 

fuel lines for portable marine fuel tanks 

as assemblies of fuel hose, primer bulbs, 

and self-sealing end connections. The 

standard applies with respect to the 

total permeation emissions divided by 

the wetted internal surface area of the 

assembly. Where it is not practical to 

determine the actual internal surface 

area of the assembly, you may assume 

that the internal surface area per unit 

length of the assembly is equal to the 

ratio of internal surface area per unit 

length of the hose section of the 

assembly. 

(f) The exhaust standard-setting part 

may allow for certification of fuel lines 

to a family emission limit for calculating 

emission credits as described in subpart 

H of this part instead of meeting the 

emission standards in this section. 

§ 1060.103 What permeation emission 

control requirements apply for fuel tanks? 

(a) Fuel tanks must meet permeation 

requirements as follows: 

(1) Marine SI fuel tanks, including 

portable marine fuel tanks, must meet 

the permeation requirements in this 

section. 

(2) Large SI fuel tanks must meet 

diurnal emission standards as specified 

in § 1060.105, which includes 

measurement of permeation emissions. 

No separate permeation standard 

applies. 

(3) Fuel tanks for recreational vehicles 

must meet the permeation requirements 

specified in 40 CFR 1051.110 or in this 

section. 

(4) Small SI fuel tanks must meet the 

permeation requirements in this section. 

(b) Permeation emissions from fuel 

tanks may not exceed 1.5 g/m2/day 

when measured at a nominal 

temperature of 28 °C with the test 

procedures for tank permeation in 

§ 1060.520, except as allowed by 

paragraph (e) of this section. You may 

also choose to meet the following 

alternate standards: 

(1) If you perform testing at a nominal 

temperature of 40 °C under 

§ 1060.520(d), permeation emissions 

from fuel tanks may not exceed 2.5 g/ 

m2/day. 

(2) For structurally integrated nylon 

fuel tanks used with handheld Small SI 

equipment, permeation emissions from 

fuel tanks may not exceed 2.5 g/m2/day 

for testing at a nominal temperature of 

28 °C and may not exceed 4.0 g/m2/day 

for testing at a nominal temperature of 

40 °C. 

(c) The exhaust standard-setting part 

may allow for certification of fuel tanks 

to family emission limit for calculating 

emission credits as described in subpart 

H of this part instead of meeting the 

emission standards in this section. 

(d) For purposes of this section, fuel 

tanks include fuel caps, gaskets, and 

other fittings that are directly mounted 

to the fuel tank. Fuel tanks do not 

include fuel lines that are subject to 

§ 1060.102 or petcocks designed for 

draining fuel. 

(e) Fuel caps may be certified 

separately to the permeation emission 

standard in paragraph (b) of this section 

using the test procedures specified in 

§ 1060.521. 

§ 1060.104 What running loss emission 

control requirements apply? 

(a) Engines and equipment must meet 

running loss requirements as follows: 

(1) Marine SI engines are not subject 

to running loss emission standards, 

except as noted in paragraph (c) of this 

section. 

(2) Large SI engines must prevent fuel 

boiling during operation as specified in 

40 CFR 1048.105. 

(3) Recreational vehicles are not 

subject to running loss emission 

standards. 

(4) Nonhandheld Small SI engines 

must meet running loss requirements 

described in this section. Handheld 

Small SI fuel tanks are not subject to 

running loss emission standards. 

(b) You must demonstrate control of 

running loss emissions in one of the 

following ways if your engines or 

equipment are subject to the 

requirements of this section: 

(1) Get an approved Executive Order 

from the California Air Resources Board 

showing that your system meets 

applicable running loss standards in 

California. 

(2) Route running loss emissions into 

the engine intake system so fuel vapors 

vented from the tank during engine 

operation are combusted in the engine. 

If you produce engines with complete 

fuel systems, you must test your engines 

with an installed vapor line for 

controlling running loss emissions. If 

another company has certified the 

engine with respect to exhaust 

emissions, describe in your application 

for certification why you believe the 

modified engines continue to meet 

exhaust emission standards. 

(3) Design the equipment so fuel 

temperature does not rise more than 

8.0 °C during normal operation when 

measured using the procedure in 

§ 1060.535. Such a design may use 

insulation or active cooling to prevent 

fuel heating. 

(4) Use a bladder or other means to 

minimize fuel vapor volume in a sealed 

fuel tank. 

(5) Show that the equipment meets 

the definition of wintertime equipment 

in § 1060.801. 

(c) Engines and equipment that are 

subject to diurnal emission standards 

must meet the requirements related to 

running loss emissions specified in 

§ 1060.105. 

§ 1060.105 What diurnal and diffusion 

requirements apply for equipment? 

(a) Fuel tanks must meet diurnal and 

diffusion emission requirements as 

follows: 

(1) Marine SI fuel tanks must meet the 

requirements related to diurnal 

emissions specified in this section, 

including portable marine fuel tanks. 

Marine SI fuel tanks are not subject to 

diffusion emission standards. 

(2) Large SI fuel tanks must meet the 

requirements related to diurnal 

emissions specified in 40 CFR 1048.105. 

Large SI fuel tanks are not subject to 

diffusion emission standards. 

(3) Recreational vehicles are not 

subject to diurnal or diffusion emission 

standards. 

(4) Nonhandheld Small SI fuel tanks 

must meet the requirements related to 

diffusion emissions specified in this 

section. Nonhandheld Small SI fuel 

tanks are not subject to diurnal emission 

standards. Handheld Small SI fuel tanks 

are not subject to diurnal or diffusion 

emission standards. 

(b) Diurnal emissions from Marine SI 

fuel tanks may not exceed 0.40 g/gal/ 

day when measured using the test 

procedures specified in § 1060.525 for 

general fuel temperatures. An 

alternative standard of 0.16 g/gal/day 


sroberts on PROD1PC70 with PROPOSALS
28354 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

applies for fuel tanks installed in 

nontrailerable boats when measured 

using the corresponding fuel 

temperature profile in § 1060.525. 

Portable marine fuel tanks must comply 

with the requirements of paragraph (d) 

of this section. 

(c) Portable marine fuel tanks and 

associated fuel-system components 

must meet the following requirements: 

(1) They must be self-sealing (without 

any manual vents) when not attached to 

the engines. The tanks may not vent to 

the atmosphere when attached to an 

engine. 

(2) They must remain sealed up to a 

positive pressure of 34.5 kPa (5.0 psig); 

however, they may contain air inlets 

that open when there is a vacuum 

pressure inside the tank. 

(d) Detachable fuel lines that are 

intended for use with portable marine 

fuel tanks must be self-sealing (without 

any manual vents) when not attached to 

the engine or fuel tank. 

(e) The following standards related to 

diffusion emissions apply for 

nonhandheld Small SI fuel tanks: 

(1) Diffusion emissions from fuel 

systems not meeting the design standard 

of paragraph (e)(2) of this section may 

not exceed a performance standard of 

0.80 g/day when measured using the 

test procedures specified in § 1060.530. 

(i) Fuel tanks with fuel caps may be 

certified as a system to this diffusion 

emission standard. Fuel tanks certified 

this way that are not sold with the 

appropriate fuel cap must include 

specifications for appropriate fuel caps. 

(ii) Fuel caps may be certified 

separately to this diffusion emission 

standard. Such fuel caps must include 

specifications for appropriate threading 

to mate with fuel tanks. 

(2) If your fuel system meets any of 

the following design standards, you are 

not subject to the performance standard 

specified in paragraph (e)(1) of this 

section: 

(i) A fuel tank must be sealed except 

for a single vent line that is at least 180 

mm long with a ratio of length to the 

square of the diameter of at least 5.0 

mm¥1 (127 in¥1). For example, a vent 

line with 7 mm inside diameter would 

have to be at least 245 mm long to 

comply under this paragraph (e)(2)(i). 

(ii) A fuel cap must vent only through 

the cap such that a vent path goes 

through the gasket and then around the 

threads where the fuel cap screws onto 

the fuel tank. The ratio of average path 

length to total cross-sectional area of the 

vent path through the gasket must be at 

least 1.0 mm¥1 (25 in¥1), with the vent 

path going through at least 360° of 

threads. For example, if a gasket has two 

vent paths, each with a cross-sectional 

area of 2 mm2 and a path length of 6 

mm, the length-to-area ratio is 1.5 

mm¥1. 

(iii) A fuel tank must be sealed except 

for a vent through a carbon canister 

designed for controlling diurnal or 

running loss emissions. 

(iv) A fuel tank must be designed to 

remain sealed up to a positive pressure 

of 3.5 kPa (0.5 psig). 

(f) The following general provisions 

apply for controlling diurnal emissions: 

(1) Diurnal emission controls must 

continue to function during engine 

operation to control running loss 

emissions. For example, you may not 

use a fuel tank vent line during engine 

operation if it is not connected to the 

diurnal emission controls. 

(2) You may not use diurnal emission 

controls that increase the occurrence of 

fuel spitback or spillage during in-use 

refueling. Also, if you use a carbon 

canister, you must incorporate design 

features that prevent liquid gasoline 

from reaching the canister during 

refueling or as a result of fuel sloshing. 

§ 1060.120 What emission-related warranty 

requirements apply? 

(a) General requirements. Certificate 

holders must warrant to the ultimate 

purchaser and each subsequent 

purchaser that the new nonroad 

equipment, including all parts of its 

evaporative emission control system, 

meets two conditions: 

(1) It is designed, built, and equipped 

so it conforms at the time of sale to the 

ultimate purchaser with the 

requirements of this part. 

(2) It is free from defects in materials 

and workmanship that may keep it from 

meeting these requirements. 

(b) Warranty period. Your emissionrelated warranty must be valid for at 

least two years from the point of first 

retail sale. 

§ 1060.125 What maintenance instructions 

must I give to buyers? 

Give ultimate purchasers written 

instructions for properly maintaining 

and using the emission control system. 

§ 1060.130 What installation instructions 

must I give to equipment manufacturers? 

(a) If you sell a certified fuel-system 

component for someone else to install in 

equipment, give the installer 

instructions for installing it consistent 

with the requirements of this part. 

(b) Make sure these instructions have 

the following information: 

(1) Include the heading: ‘‘Emissionrelated installation instructions’’. 

(2) State: ‘‘Failing to follow these 

instructions when installing [IDENTIFY 

COMPONENT(S)] in a piece of nonroad 

equipment violates federal law (40 CFR 

1068.105(b)), subject to fines or other 

penalties as described in the Clean Air 

Act.’’. 

(3) Describe any limits on the range of 

applications needed to ensure that the 

component operates consistently with 

your application for certification. For 

example: 

(i) For fuel tanks sold without fuel 

caps, you must specify the requirements 

for the fuel cap, such as the allowable 

materials, thread pattern, how it must 

seal, etc. You must also include 

instructions to tether the fuel cap as 

described in § 1060.101(f)(1) if you do 

not sell your fuel tanks with tethered 

fuel caps. 

(ii) If your fuel lines do not meet 

permeation standards specified in 

§ 1060.102 for LEFL fuel lines, tell 

equipment manufacturers not to install 

the fuel lines with Large SI engines that 

operate on gasoline or another volatile 

liquid fuel. 

(4) Describe instructions for installing 

components so they will operate 

according to design specifications in 

your application for certification. 

Specify sufficient detail to ensure that 

the equipment will meet the applicable 

standards when your component is 

installed. 

(5) If you certify a component with 

family emission limit above the 

emission standard, be sure to indicate 

that the equipment manufacturer must 

have a source of credits to offset the 

higher emissions and must label the 

equipment as specified in § 1060.135. 

Also indicate the applications for which 

the regulations allow for compliance 

using emission credits. 

(6) Instruct the equipment 

manufacturers that they must comply 

with the requirements of § 1060.202. 

(c) You do not need installation 

instructions for components you install 

in your own equipment. 

(d) Provide instructions in writing or 

in an equivalent format. For example, 

you may post instructions on a publicly 

available website for downloading or 

printing. If you do not provide the 

instructions in writing, explain in your 

application for certification how you 

will ensure that each installer is 

informed of the installation 

requirements. 

§ 1060.135 How must I label and identify 

the engines and equipment I produce? 

The labeling requirements of this 

section apply for engine and equipment 

manufacturers. See §§ 1060.136 through 

1060.138 for the labeling requirements 

that apply for fuel lines, fuel tanks, and 

other fuel-system components. 

(a) If you hold a certificate for your 

engine or equipment with respect to 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28355 

evaporative emissions, you must affix a 

permanent and legible label identifying 

each engine or piece of equipment 

before introducing it into U.S. 

commerce. The label must be—

(1) Attached so it is not removable 

without being destroyed or defaced. 

(2) Secured to a part of the engine or 

equipment needed for normal operation 

and not normally requiring replacement. 

(3) Durable and readable for the 

equipment’s entire life. 

(4) Readily visible in the final 

installation. It may be under a hinged 

door or other readily opened cover. It 

may not be hidden by any cover 

attached with screws or any similar 

designs. 

(5) Written in English. 

(b) The engine or equipment label 

must include all the applicable 

information specified in §§ 1060.136 

through 1060.138 if you are using 

components that are not already 

certified by another company. You may 

combine all required label information 

in a single label. This may include 

information related to exhaust 

emissions if you also certify the engine 

with respect to exhaust emissions. 

(1) If you are certifying with respect 

to the running loss standard, include the 

following information: 

(i) Include your corporate name or 

trademark. 

(ii) Describe your method for meeting 

the running loss standard. 

(iii) State the date of manufacture 

[MONTH and YEAR] of the equipment; 

however, you may omit this from the 

label if you stamp or engrave it on the 

equipment. 

(iv) State: ‘‘THIS EQUIPMENT 

COMPLIES WITH U.S. EPA RUNNING 

LOSS STANDARDS.’’. 

(2) If you are certifying your 

equipment with respect to emission 

credits, include the following 

information: 

(i) Include your corporate name or 

trademark. 

(ii) Identify the engine family name of 

the fuel-system components for which 

you are generating or using emission 

credits. 

(iii) State the date of manufacture 

[MONTH and YEAR] of the equipment; 

however, you may omit this from the 

label if you stamp or engrave it on the 

equipment. 

(iv) State: ‘‘THIS EQUIPMENT 

COMPLIES WITH PERMEATION 

STANDARDS BASED ON EMISSION 

CREDITS.’’. 

(c) You may add information to the 

emission control information label to 

identify other emission standards that 

the equipment meets or does not meet 

(such as California standards). You may 

also add other information to ensure 

that the equipment will be properly 

maintained and used. 

(d) Anyone subject to the labeling 

requirements in this part 1060 may ask 

us to approve modified labeling 

requirements if it is necessary or 

appropriate. We will approve the 

request if the alternate label is 

consistent with the requirements of this 

part. 

§ 1060.136 How must I label and identify 

the fuel lines I produce? 

The requirements of this section 

apply for fuel line manufacturers: 

(a) Label your fuel line at the time of 

manufacture as follows: 

(1) Label the fuel line in a permanent 

and legible manner. 

(2) Include your corporate name or 

trademark. 

(3) Include EPA’s standardized 

designation for emission family. 

(4) Identify the fuel line’s FEL, if 

applicable. 

(5) The labeling information must be 

continuous, with no more than 12 

inches before repeating. You may add a 

continuous stripe or other pattern to 

help identify the particular type or 

grade of fuel line. 

(b) You may ask us to approve 

modified labeling requirements in this 

section as described in § 1060.135(e). 

You may label short preformed fuel 

lines (less than 12 inches long) under 

§ 1060.138 instead of complying with 

the requirements of this section. 

§ 1060.137 How must I label and identify 

the fuel tanks I produce? 

The requirements of this section 

apply for fuel tank manufacturers: 

(a) Add a permanent label at the time 

of manufacture to each fuel tank. For 

molded tanks, you may mold the label 

into the tank. The label must be—

(1) Attached so it is not removable 

without being destroyed or defaced. 

(2) Durable and readable for the 

equipment’s entire life. 

(3) Written in English. 

(b) The label must—

(1) Include your full corporate name 

and trademark. 

(2) Include EPA’s standardized 

designation for emission family. 

(3) Identify the fuel tank’s FEL, if 

applicable. 

(4) Identify the emission control 

system. For equipment subject to 

diurnal, diffusion, or running loss 

requirements, list applicable part 

numbers of emission control 

components consistent with the 

requirements of § 1060.138. 

(5) State: ‘‘THIS FUEL TANK 

COMPLIES WITH U.S. EPA EMISSION 

REGULATIONS.’’. 

(c) You may add information to the 

emission control information label to 

identify other emission standards that 

the equipment meets or does not meet 

(such as California standards). 

(d) You may ask to include the label 

information required by this section on 

the equipment label required by 

§ 1060.135 instead of labeling the tank 

separately. 

(e) You may ask us to approve 

modified labeling requirements in this 

section as described in § 1060.135(e). 

§ 1060.138 How must I label and identify 

other emission-related components I 

produce? 

The requirements of this section 

apply for manufacturers of fuel-system 

components. 

(a) The requirements of this section 

apply for the following fuel-system 

components: 

(1) Fuel caps that are certified under 

§ 1060.102. 

(2) Fuel caps for equipment subject to 

diurnal or diffusion requirements. 

(3) Carbon canisters. 

(4) Other components that are part of 

a system for controlling evaporative 

emissions. 

(b) Add a permanent and legible label 

at the time of manufacture to each fuelsystem component as follows: 

(1) Identify your corporate name or 

trademark; however, you may omit this 

if there is not enough space. 

(2) If you certify the component, 

include EPA’s standardized designation 

for emission family. 

(3) If the component is part of a 

system for controlling emissions from a 

fuel tank as described in 

§ 1060.137(b)(5), identify the part 

number of each component or 

subassembly. 

(c) You may ask us to approve 

modified labeling requirements in this 

section as described in § 1060.135(e). 

Subpart C—Certifying Emission 

Families 

§ 1060.201 What are the general 

requirements for obtaining a certificate of 

conformity? 

Manufacturers of engines, equipment, 

or fuel-system components may need to 

certify their products with respect to 

evaporative emission standards as 

described in §§ 1060.1 and 1060.601. 

See § 1060.202 for requirements related 

to certifying with respect to the 

requirements specified in § 1060.101(f). 

The following general requirements 

apply for obtaining a certificate of 

conformity: 

(a) You must send us a separate 

application for a certificate of 

conformity for each emission family. A 


sroberts on PROD1PC70 with PROPOSALS
28356 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

certificate of conformity for equipment 

is valid starting with the indicated 

effective date, but it is not valid for any 

production after December 31 of the 

model year for which it is issued. No 

certificate will be issued after December 

31 of the model year. A certificate of 

conformity for a component is valid 

starting with the indicated effective 

date, but it is not valid for any 

production after the end of the 

production period for which it is issued. 

(b) The application must contain all 

the information required by this part 

and must not include false or 

incomplete statements or information 

(see § 1060.255). 

(c) We may ask you to include less 

information than we specify in this 

subpart, but you must still maintain all 

the information required by § 1060.250. 

(d) You must use good engineering 

judgment for all decisions related to 

your application (see 40 CFR 1068.5). 

(e) An authorized representative of 

your company must approve and sign 

the application. 

(f) See § 1060.255 for provisions 

describing how we will process your 

application. 

§ 1060.202 What are the certification 

requirements related to the general 

standards in § 1060.101? 

Equipment manufacturers must 

ensure that their equipment is certified 

with respect to the general standards 

specified in § 1060.101(f) as follows: 

(a) If § 1060.1 requires you to certify 

your equipment to any of the emission 

standards specified in through 

1060.105, describe in your application 

for certification how you will meet the 

general standards specified in 

§ 1060.101(f). 

(b) If § 1060.1 does not require you to 

certify your equipment to any of the 

emission standards specified in through 

1060.105, your equipment is deemed to 

be certified with respect to the general 

standards specified in § 1060.101(f) if 

you design and produce your equipment 

to meet those standards. 

(1) You must keep records as 

described in § 1060.210. The other 

provisions of this part for certificate 

holders apply only as specified in 

§ 1060.5. 

(2) Your equipment is deemed to be 

certified only to the extent that it meets 

the general standards in § 1060.101(f). 

Thus, it is a violation of 40 CFR 

1068.101(a)(1) to introduce into U.S. 

commerce such equipment that does not 

meet applicable requirements under 

§ 1060.101(f). 

(c) Instead of relying on paragraph (b) 

of this section, you may submit an 

application for certification and obtain a 

certificate from us. The provisions of 

this part apply in the same manner for 

certificates issued under this paragraph 

(c) as for any other certificate issued 

under this part. 

§ 1060.205 What must I include in my 

application? 

This section specifies the information 

that must be in your application, unless 

we ask you to include less information 

under § 1060.202(c). We may require 

you to provide additional information to 

evaluate your application. 

(a) Describe the emission family’s 

specifications and other basic 

parameters of the emission controls. 

Describe how you meet the running loss 

emission control requirements in 

§ 1060.104, if applicable. Describe how 

you meet any applicable equipmentbased requirements of § 1060.101(e) and 

(f). State whether you are requesting 

certification for gasoline or some other 

fuel type. List each distinguishable 

configuration in the emission family. 

(b) Describe the products you selected 

for testing and the reasons for selecting 

them. 

(c) Describe the test equipment and 

procedures that you used, including any 

special or alternate test procedures you 

used (see § 1060.501). 

(d) List the specifications of the test 

fuel to show that it falls within the 

required ranges specified in subpart F of 

this part. 

(e) State the equipment applications 

to which your certification is limited. 

For example, if your fuel system meets 

the emission requirements of this part 

applicable only to handheld Small SI 

equipment, state that the requested 

certificate would apply only for 

handheld Small SI equipment. 

(f) Identify the emission family’s 

useful life. 

(g) Include the maintenance 

instructions you will give to the 

ultimate purchaser of each new nonroad 

engine (see § 1060.125). 

(h) Include the emission-related 

installation instructions you will 

provide if someone else will install your 

component in a piece of nonroad 

equipment (see § 1060.130). 

(i) Describe your emission control 

information label (see §§ 1060.135 

through 1060.138). 

(j) Identify the emission standards or 

FELs to which you are certifying the 

emission family. 

(k) Present emission data to show 

your products meet the applicable 

emission standards. Note that 

§§ 1060.235 and 1060.240 allow you to 

submit an application in certain cases 

without new emission data. 

(l) State that your product was tested 

as described in the application 

(including the test procedures, test 

parameters, and test fuels) to show you 

meet the requirements of this part. If 

you did not do the testing, identify the 

source of the data. 

(m) Report all test results, including 

those from invalid tests, whether or not 

they were conducted according to the 

test procedures of subpart F of this part. 

We may ask you to send other 

information to confirm that your tests 

were valid under the requirements of 

this part. 

(n) Unconditionally certify that all the 

products in the emission family comply 

with the requirements of this part, other 

referenced parts of the CFR, and the 

Clean Air Act. 

(o) Include good-faith estimates of 

U.S.-directed production volumes. 

Include a justification for the estimated 

production volumes if they are 

substantially different than actual 

production volumes in earlier years for 

similar models. 

(p) Include other applicable 

information, such as information 

required by other subparts of this part. 

(q) Name an agent for service located 

in the United States. Service on this 

agent constitutes service on you or any 

of your officers or employees for any 

action by EPA or otherwise by the 

United States related to the 

requirements of this part. 

§ 1060.210 What records should 

equipment manufacturers keep if they do 

not apply for certification? 

If you are an equipment manufacturer 

that does not need to obtain a certificate 

of conformity for your equipment as 

described in § 1060.1, you must keep 

the following records to document 

compliance with applicable 

requirements, which we may review at 

any time: 

(a) Identify your equipment models 

and the annual U.S.-directed production 

volumes for each model. 

(b) Identify the emission family names 

of the certificates that will cover your 

equipment and the names of the 

companies that hold the certificates. 

(c) Describe how you comply with 

any emission-related installation 

instructions, labeling requirements, and 

the general standards in § 1060.101(e) 

and (f). 

§ 1060.225 How do I amend my application 

for certification? 

Before we issue a certificate of 

conformity, you may amend your 

application to include new or modified 

configurations, subject to the provisions 

of this section. After we have issued 

your certificate of conformity, you may 

send us an amended application 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28357 

requesting that we include new or 

modified configurations within the 

scope of the certificate, subject to the 

provisions of this section. You must 

amend your application if any changes 

occur with respect to any information 

included in your application. If you 

would like to modify a family emission 

limit for your product, you must submit 

a separate application for a new 

emission family. 

(a) You must amend your application 

before you take either of the following 

actions: 

(1) Add a configuration to an emission 

family. In this case, the configuration 

added must be consistent with other 

configurations in the emission family 

with respect to the criteria listed in 

§ 1060.230. 

(2) Change a configuration already 

included in an emission family in a way 

that may affect emissions, or change any 

of the components you described in 

your application for certification. This 

includes production and design changes 

that may affect emissions any time 

during the equipment’s lifetime. 

(b) To amend your application for 

certification, send the Designated 

Compliance Officer the following 

information: 

(1) Describe in detail the addition or 

change in the configuration you intend 

to make. 

(2) Include engineering evaluations or 

data showing that the amended 

emission family complies with all 

applicable requirements. You may do 

this by showing that the original 

emission data are still appropriate for 

showing that the amended family 

complies with all applicable 

requirements. 

(3) If the original emission data for the 

emission family are not appropriate to 

show compliance for the new or 

modified configuration, include new 

test data showing that the new or 

modified configuration meets the 

requirements of this part. 

(c) We may ask for more test data or 

engineering evaluations. You must give 

us these within 30 days after we request 

them. 

(d) For emission families already 

covered by a certificate of conformity, 

we will determine whether the existing 

certificate of conformity covers your 

new or modified configuration. You 

may ask for a hearing if we deny your 

request (see § 1060.820). 

(e) For emission families already 

covered by a certificate of conformity, 

you may start producing the new or 

modified configuration anytime after 

you send us your amended application 

and before we make a decision under 

paragraph (d) of this section. However, 

if we determine that the affected 

configurations do not meet applicable 

requirements, we will notify you to 

cease production of the configurations 

and may require you to recall the 

equipment at no expense to the owner. 

Choosing to produce equipment under 

this paragraph (e) is deemed to be 

consent to recall all equipment that we 

determine do not meet applicable 

emission standards or other 

requirements and to remedy the 

nonconformity at no expense to the 

owner. If you do not provide 

information required under paragraph 

(c) of this section within 30 days, you 

must stop producing the new or 

modified equipment. 

§ 1060.230 How do I select emission 

families? 

(a) Divide your product line into 

families of equipment (or components) 

that are expected to have similar 

emission characteristics throughout the 

useful life. 

(b) Group fuel lines in the same 

emission family if they are the same in 

all the following aspects: 

(1) Type of material including barrier 

layer. 

(2) Production method. 

(3) Types of connectors and fittings 

(material, approximate wall thickness, 

etc.) for fuel line assemblies certified 

together. 

(4) Family emission limit, if 

applicable. 

(c) Group fuel tanks (or fuel systems 

including fuel tanks) in the same 

emission family if they are the same in 

all the following aspects: 

(1) Type of material, including any 

pigments, plasticizers, UV inhibitors, or 

other additives that may affect control of 

emissions. 

(2) Production method. 

(3) Relevant characteristics of fuel cap 

design for fuel systems subject to 

diurnal or diffusion emission 

requirements. 

(4) Gasket material and design. 

(5) Emission control strategy. 

(6) Family emission limit, if 

applicable. 

(d) Group other fuel-system 

components and equipment in the same 

emission family if they are the same in 

all the following aspects: 

(1) Emission control strategy and 

design. 

(2) Type of material (such as type of 

charcoal used in a carbon canister). This 

criteria does not apply for materials that 

are unrelated to emission control 

performance. 

(3) The fuel systems meet the running 

loss emission standard based on the 

same type of compliance demonstration 

specified in § 1060.104(b), if applicable. 

(e) You may subdivide a group of 

equipment or components that are 

identical under paragraphs (b) through 

(d) of this section into different 

emission families if you show the 

expected emission characteristics are 

different during the useful life. 

(f) In unusual circumstances, you may 

group equipment or components that 

are not identical with respect to the 

things listed in paragraph (b) through 

(d) of this section in the same emission 

family if you show that their emission 

characteristics during the useful life will 

be similar. The provisions of this 

paragraph (f) do not exempt any engines 

from meeting all the applicable 

standards and requirements in subpart B 

of this part. 

(g) Select test components that are 

most likely to exceed the applicable 

emission standards. For example, select 

a fuel tank with the smallest average 

wall thickness (or barrier thickness, as 

appropriate) of those fuel tanks you 

include in the same family. 

§ 1060.235 What emission testing must I 

perform for my application for a certificate 

of conformity? 

This section describes the emission 

testing you must perform to show 

compliance with the emission standards 

in subpart B of this part. 

(a) Test your products using the 

procedures and equipment specified in 

subpart F of this part. 

(b) Select an emission-data unit from 

each emission family for testing. In 

general, you must test a preproduction 

product that will represent actual 

production. However, for fuel tank 

permeation, you may test a tank with 

standardized geometry, provided that it 

is made of the same material(s) and 

appropriate wall thickness. Select the 

configuration that is most likely to 

exceed (or have emissions nearer to) an 

applicable emission standard. For 

example, for a family of multilayer fuel 

tanks, test the tank with the thinnest 

barrier layer. In general, the test 

procedures specify that components or 

systems be tested rather than complete 

equipment. For example, to certify your 

family of Small SI equipment, you 

would need to test a sample of fuel line 

for permeation emissions, a fuel tank for 

permeation emissions, and a fuel system 

for diffusion emissions. Note that 

paragraph (e) of this section and 

§ 1060.240 allow you in certain 

circumstances to certify without testing 

an emission-data unit from the emission 

family. 

(c) You may not do maintenance on 

emission-data units. 


sroberts on PROD1PC70 with PROPOSALS
28358 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(d) We may measure emissions from 

any of your products from the emission 

family, as follows: 

(1) You must supply your products to 

us if we choose to perform confirmatory 

testing. 

(2) If we measure emissions on one of 

your products, the results of that testing 

become the official emission results for 

the emission family. Unless we later 

invalidate these data, we may decide 

not to consider your data in determining 

if your emission family meets applicable 

requirements. 

(e) You may ask to use emission data 

from a previous production period 

(carryover) instead of doing new tests, 

but only if all the following are true: 

(1) The emission family from the 

previous production period differs from 

the current emission family only with 

respect to production period or other 

characteristics unrelated to emissions. 

You may also ask to add a configuration 

subject to § 1060.225. 

(2) The emission-data unit from the 

previous production period remains the 

appropriate emission-data unit under 

paragraph (b) of this section. For 

example, you may not carryover 

emission data for your family of nylon 

fuel tanks if you have added a thinnerwalled fuel tank than was tested 

previously. 

(3) The data show that the emissiondata unit would meet all the 

requirements that apply to the emission 

family covered by the application for 

certification. 

(f) We may require you to test a 

second unit of the same or different 

configuration in addition to the unit 

tested under paragraph (b) of this 

section. 

(g) If you use an alternate test 

procedure under § 1060.505, and later 

testing shows that such testing does not 

produce results that are equivalent to 

the procedures specified in this part, we 

may reject data you generated using the 

alternate procedure. 

§ 1060.240 How do I demonstrate that my 

emission family complies with evaporative 

emission standards? 

(a) For purposes of certification, your 

emission family is considered in 

compliance with an evaporative 

emission standard in subpart B of this 

part if you do either of the following: 

(1) You have test results showing 

measured emission levels from the fuel 

tank or fuel line (as applicable) in the 

family are at or below the applicable 

standard. 

(2) You comply with the design 

specifications in paragraph (d) of this 

section. 

(b) Your emission family is deemed 

not to comply if any fuel tank or fuel 

line representing that family has test 

results showing an official emission 

level above the standard. 

(c) Round the measured emission 

level to the same number of decimal 

places as the emission standard. 

Compare the rounded emission levels to 

the emission standard for each 

emission-data unit. 

(d) You may demonstrate for 

certification that your emission family 

complies with the evaporative emission 

standards by demonstrating that you use 

the following control technologies: 

(1) [Reserved] 

(2) For certification to the fuel tank 

permeation standards specified in 

§ 1060.103 with the following control 

technologies: 

(i) A metal fuel tank with no nonmetal 

gaskets or with gaskets made from a 

low-permeability material. 

(ii) A metal fuel tank with nonmetal 

gaskets with an exposed gasket surface 

area of 1,000 mm2 or less. 

(iii) A coextruded high-density 

polyethylene fuel tank with a 

continuous ethylene vinyl alcohol 

barrier layer making up at least 2 

percent of the fuel tank’s overall wall 

thickness, with no nonmetal gaskets or 

with gaskets made from a lowpermeability material. 

(iv) A coextruded high-density 

polyethylene fuel tank with a 

continuous ethylene vinyl alcohol 

barrier layer making up at least 2 

percent of the fuel tank’s overall wall 

thickness, with nonmetal gaskets or 

with an exposed gasket surface area of 

1,000 mm2 or less. 

(3) For certification to the diurnal 

standards specified in § 1060.105 with 

the following control technologies: 

(i) A Marine SI fuel tank sealed up to 

a positive pressure of 7.0 kPa (1.0 psig); 

however, they may contain air inlets 

that open when there is a vacuum 

pressure inside the tank. 

(ii) A Marine SI fuel tank equipped 

with a passively purged carbon canister 

with a minimum carbon volume of 

0.040 liters per gallon of fuel tank 

capacity (or 0.016 liters per gallon for 

fuel tanks used in nontrailerable boats). 

The carbon canister must have a 

minimum effective length-to-diameter 

ratio of 3.5 and the vapor flow must be 

directed with the intent of using the 

whole carbon bed. The carbon must 

have a minimum butane working 

capacity of 90 g/L based on the test 

procedures specified in ASTM D5228–

92 (incorporated by reference in 

§ 1060.810). The carbon must adsorb no 

more than 0.5 grams of water per gram 

of carbon at 90% relative humidity and 

a temperature of 25 ± 5 °C. The carbon 

must also pass a dust attrition test based 

on ASTM D3802–79 (incorporated by 

reference in § 1060.810), except that 

hardness is defined as the ratio of mean 

particle diameter before and after the 

test and the procedure must involve 

twenty 1⁄2-inch steel balls and ten 3⁄4- 

inch steel balls. Good engineering 

judgment must be used in the structural 

design of the carbon canister. The 

canister must have a volume 

compensator or some other device to 

prevent the carbon pellets from moving 

within the canister as a result of 

vibration or changing temperature. 

(4) We may establish additional 

design certification options where we 

find that new test data demonstrate that 

the use of a different technology design 

will ensure compliance with the 

applicable emission standards. 

(e) You may not establish a family 

emission limit below the emission 

standard for components certified based 

on design specifications under this 

section, even if actual emission rates are 

much lower. 

§ 1060.250 What records must I keep and 

what reports must I send to EPA? 

(a) Organize and maintain the 

following records: 

(1) A copy of all applications and any 

summary information you send us. 

(2) Any of the information we specify 

in § 1060.205 that you were not required 

to include in your application. 

(3) A detailed history of each 

emission-data unit. For each emission 

data unit, include all of the following: 

(i) The emission-data unit’s 

construction, including its origin and 

buildup, steps you took to ensure that 

it represents production equipment, any 

components you built specially for it, 

and all the components you include in 

your application for certification. 

(ii) All your emission tests, including 

documentation on routine and standard 

tests, and the date and purpose of each 

test. 

(iii) All tests to diagnose emission 

control performance, giving the date and 

time of each and the reasons for the test. 

(iv) Any other significant events. 

(4) Production figures for each 

emission family divided by assembly 

plant. 

(5) Keep a list of equipment 

identification numbers for all the 

equipment you produce under each 

certificate of conformity. 

(b) Keep data from routine emission 

tests (such as test cell temperatures and 

relative humidity readings) for one year 

after we issue the associated certificate 

of conformity. Keep all other 

information specified in paragraph (a) of 

this section for eight years after we issue 

your certificate. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28359 

(c) Store these records in any format 

and on any media, as long as you can 

promptly send us organized, written 

records in English if we ask for them. 

You must keep these records readily 

available. We may review them at any 

time. 

(d) Send us copies of any 

maintenance instructions or 

explanations if we ask for them. 

§ 1060.255 What decisions may EPA make 

regarding my certificate of conformity? 

(a) If we determine your application is 

complete and shows that the emission 

family meets all the requirements of this 

part and the Act, we will issue a 

certificate of conformity for your 

emission family for that production 

period. We may make the approval 

subject to additional conditions. 

(b) We may deny your application for 

certification if we determine that your 

emission family fails to comply with 

emission standards or other 

requirements of this part or the Act. Our 

decision may be based on a review of all 

information available to us. If we deny 

your application, we will explain why 

in writing. 

(c) In addition, we may deny your 

application or suspend or revoke your 

certificate if you do any of the 

following: 

(1) Refuse to comply with any testing 

or reporting requirements. 

(2) Submit false or incomplete 

information (paragraph (e) of this 

section applies if this is fraudulent). 

(3) Render inaccurate any test data. 

(4) Deny us from completing 

authorized activities despite our 

presenting a warrant or court order (see 

40 CFR 1068.20). This includes a failure 

to provide reasonable assistance. 

(5) Produce equipment for 

importation into the United States at a 

location where local law prohibits us 

from carrying out authorized activities. 

(6) Fail to supply requested 

information or amend your application 

to include all equipment being 

produced. 

(7) Take any action that otherwise 

circumvents the intent of the Act or this 

part. 

(d) We may void your certificate if 

you do not keep the records we require 

or do not give us information when we 

ask for it. 

(e) We may void your certificate if we 

find that you intentionally submitted 

false or incomplete information. 

(f) If we deny your application or 

suspend, revoke, or void your 

certificate, you may ask for a hearing 

(see § 1060.820). 

Subpart D—Production Verification 

Testing 

§ 1060.301 Manufacturer testing. 

(a) You must test production samples 

or otherwise verify that equipment or 

components you produce are as 

specified in the certificate of 

conformity. 

(b) You must provide records of such 

verification to us upon request. 

§ 1060.310 Supplying products to EPA for 

testing. 

Upon our request, you must supply a 

reasonable number of production 

samples to us for verification testing. 

Subpart E—In-Use Testing 

§ 1060.401 General Provisions. 

We may perform in-use testing of any 

equipment or fuel-system component 

subject to the standards of this part. 

Subpart F—Test Procedures 

§ 1060.501 General testing provisions. 

(a) This subpart is addressed to you as 

a certifying manufacturer, but it applies 

equally to anyone who does testing for 

you. 

(b) Unless we specify otherwise, the 

terms ‘‘procedures’’ and ‘‘test 

procedures’’ in this part include all 

aspects of testing, including the 

equipment specifications, calibrations, 

calculations, and other protocols and 

procedural specifications needed to 

measure emissions. 

(c) The specification for gasoline to be 

used for testing is given in 40 CFR 

1065.710. Use the grade of gasoline 

specified for general testing. For testing 

specified in this part that requires a 

blend of gasoline and ethanol, blend 

this grade of gasoline with reagent-grade 

ethanol. You may use less pure ethanol 

if you can demonstrate that it will not 

affect your ability to demonstrate 

compliance with the applicable 

emission standards. 

(d) Accuracy and precision of all 

temperature measurements must be ± 

1.0 °C or better. If you use multiple 

sensors to measure differences in 

temperature, calibrate the sensors so 

they will be within 0.5 °C of each other 

when they are in thermal equilibrium at 

a point within the range of test 

temperatures (use the starting 

temperature in Table 1 of § 1060.525, 

unless this is not feasible). 

(e) Accuracy and precision of mass 

balances must be sufficient to ensure 

accuracy and precision of two percent 

or better for emission measurements for 

products at the maximum level allowed 

by the standard. The readability of the 

display may not be coarser than half of 

the required accuracy and precision. 

Examples are shown in the following 

table: 

Example #1 Example #2 Example #3 

Applicable standard ....................... 1.5 g/m2/day ................................. 1.5 g/m2/day ................................. 15 g/m2/day 

Internal surface area ...................... 1.15 m2 ......................................... 0.47 m2 ......................................... 0.070 m2

Length of test ................................. 14 days ......................................... 14 days ......................................... 28 days 

Maximum allowable mass change 24.15 g .......................................... 9.87 g ............................................ 1.96 g 

Required accuracy and precision .. ± 0.483 g or better ........................ ± 0.197 g or better ........................ ± 0.0392 g or better 

Required readability ....................... 0.1 g or better ............................... 0.1 g or better ............................... 0.01 g or better 

§ 1060.505 Other procedures. 

(a) Your testing. The procedures in 

this part apply for all testing you do to 

show compliance with emission 

standards, with certain exceptions listed 

in this section. 

(b) Our testing. These procedures 

generally apply for testing that we do to 

determine if your equipment complies 

with applicable emission standards. We 

may perform other testing as allowed by 

the Act. 

(c) Exceptions. We may allow or 

require you to use procedures other than 

those specified in this part in the 

following cases: 

(1) You may request to use special 

procedures if your equipment cannot be 

tested using the specified procedures. 

We will approve your request if we 

determine that it would produce 

emission measurements that represent 

in-use operation and we determine that 

it can be used to show compliance with 

the requirements of the standard-setting 

part. 

(2) You may ask to use emission data 

collected using other procedures, such 

as those of the California Air Resources 

Board or the International Organization 


sroberts on PROD1PC70 with PROPOSALS
28360 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

for Standardization. We will approve 

this only if you show us that using these 

other procedures does not affect your 

ability to show compliance with the 

applicable emission standards. This 

generally requires emission levels to be 

far enough below the applicable 

emission standards so any test 

differences do not affect your ability to 

state unconditionally that your 

equipment will meet all applicable 

emission standards when tested using 

the specified test procedures. 

(3) You may request to use alternate 

procedures that are equivalent to 

allowed procedures or are more accurate 

or more precise than allowed 

procedures. See 40 CFR 1065.12 for a 

description of the information that is 

generally required to show that an 

alternate test procedure is equivalent. 

(4) The test procedures are specified 

for gasoline-fueled equipment. If your 

equipment will use another volatile 

liquid fuel instead of gasoline, use a test 

fuel that is representative of the fuel that 

will be used with the equipment in use. 

You may ask us to approve other 

changes to the test procedures to reflect 

the effects of using a fuel other than 

gasoline. 

(d) Approval. If we require you to 

request approval to use other 

procedures under paragraph (c) of this 

section, you may not use them until we 

approve your request. 

§ 1060.510 How do I test EPA Low 

Emission Fuel Lines for permeation 

emissions? 

For low-emission fuel lines (EPA 

LEFL), measure emissions according to 

SAE standard procedure number J2260, 

which is incorporated by reference in 

§ 1054.810. 

§ 1060.515 How do I test EPA Nonroad 

Fuel Lines and EPA Cold Weather Fuel 

Lines for permeation emissions? 

Measure emission as follows for EPA 

NRFL and EPA CWFL fuel lines: 

(a) Prior to permeation testing, 

precondition the fuel line by filling it 

with the fuel specified in paragraph (c) 

of this section, sealing the openings, and 

soaking it for 4 to 8 weeks at 23 ± 5 °C. 

Use Fuel CE10, which is Fuel C as 

specified in ASTM D 471–06 

(incorporated by reference in 

§ 1054.810) blended with 10 percent 

ethanol by volume. 

(b) Drain the fuel line and refill it 

immediately with the fuel specified in 

paragraph (a) of this section. Be careful 

not to spill any fuel. 

(c) Measure fuel line permeation 

emissions using the equipment and 

procedures for weight-loss testing 

specified in SAE J30 or SAE J1527 

(incorporated by reference in 

§ 1054.810). Start the measurement 

procedure within 8 hours after draining 

and refilling the fuel line. 

§ 1060.520 How do I test fuel tanks for 

permeation emissions? 

Measure permeation emissions by 

weighing a sealed fuel tank before and 

after a temperature-controlled soak. 

(a) Preconditioning durability testing. 

Take the following steps before an 

emission test, in any order, unless we 

determine that omission of one or more 

of these durability tests will not affect 

the emissions from your fuel tank: 

(1) Pressure cycling. Perform a 

pressure test by sealing the tank and 

cycling it between +13.8 and ¥1.7 kPa 

(+2.0 and ¥0.5 psig) for 10,000 cycles 

at a rate of 60 seconds per cycle. The 

purpose of this test is to represent 

environmental wall stresses caused by 

pressure changes and other factors (such 

as vibration or thermal expansion). If 

your tank cannot be tested using the 

pressure cycles specified by this 

paragraph (a)(1), you may ask to use 

special test procedures under 

§ 1060.505. 

(2) UV exposure. Perform a sunlightexposure test by exposing the tank to an 

ultraviolet light of at least 24 W/m2

(0.40 W-hr/m2/min) on the tank surface 

for at least 450 hours. Alternatively, the 

fuel tank may be exposed to direct 

natural sunlight for an equivalent period 

of time, as long as you ensure that the 

tank is exposed to at least 450 daylight 

hours. 

(3) Slosh testing. Perform a slosh test 

by filling the tank to 40 percent of its 

capacity with the fuel specified in 

paragraph (e) of this section and rocking 

it at a rate of 15 cycles per minute until 

you reach one million total cycles. Use 

an angle deviation of +15° to ¥15° from 

level. 

(b) Preconditioning fuel soak. Take 

the following steps before an emission 

test: 

(1) Fill the tank with the fuel 

specified in paragraph (e) of this 

section, seal it, and allow it to soak at 

28 ± 5 °C for at least 20 weeks. 

Alternatively, the tank may be soaked 

for at least 10 weeks at 43 ± 5 °C. You 

may count the time of the 

preconditioning steps in paragraph (a) 

of this section as part of the 

preconditioning fuel soak, as long as the 

ambient temperature remains within the 

specified temperature range and the fuel 

tank is at least 40 percent full; you may 

add or replace fuel as needed to conduct 

the specified durability procedures. 

(2) Determine the fuel tank’s internal 

surface area in square-meters, accurate 

to at least three significant figures. You 

may use less accurate estimates of the 

surface area if you make sure not to 

overestimate the surface area. 

(3) Empty the fuel tank and 

immediately refill it with the specified 

test fuel to its nominal capacity. Be 

careful not to spill any fuel. 

(4) Allow the tank and its contents to 

equilibrate to the temperatures specified 

in paragraph (d)(6) of this section. 

(5) Seal the fuel tank within eight 

hours after refueling as follows: 

(i) You may seal the fuel inlet with a 

nonpermeable covering if the fuel tank 

is designed to have a separate filler neck 

between the fuel cap and the tank, and 

the filler neck is at least 12 inches long 

and has an opening at least 6 inches 

above the top of the fuel tank. 

(ii) For filler necks not meeting the 

specifications described in paragraph 

(b)(5)(i) of this section, take one of the 

following approaches: 

(A) Use a production fuel cap 

expected to have permeation emissions 

at least as high as the highest-emitting 

fuel cap that you expect to be used with 

fuel tanks from the emission family. It 

would generally be appropriate to 

consider an HDPE fuel cap with a nitrile 

rubber seal to be worst-case. 

(B) You may seal the fuel inlet with 

a nonpermeable covering if you 

separately measure the permeation from 

a worst-case fuel cap as described in 

§ 1060.521. 

(iii) Openings that are not normally 

sealed on the fuel tank (such as hoseconnection fittings and vents in fuel 

caps) may be sealed using 

nonpermeable fittings such as metal or 

fluoropolymer plugs. 

(iv) Openings for petcocks that are 

designed for draining fuel may be sealed 

using nonpermeable fittings such as 

metal or fluoropolymer plugs. 

(c) Reference tank. A reference tank is 

required to correct for buoyancy effects 

that may occur during testing. Prepare 

the reference tank as follows: 

(1) Obtain a second tank that is 

identical to the test tank. You may not 

use a tank that has previously contained 

fuel or any other contents that might 

affect its mass stability. 

(2) Fill the reference tank with enough 

dry sand (or other inert material) so the 

mass of the reference tank is 

approximately the same as the test tank 

when filled with fuel. Use good 

engineering judgment to determine how 

similar the mass of the reference tank 

needs to be to the mass of the test tank, 

considering the performance 

characteristics of your balance. 

(3) Ensure that the sand (or other inert 

material) is dry. This may require 

heating the tank or applying a vacuum 

to it. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28361 

(4) Seal the tank. 

(d) Permeation test run. To run the 

test, take the following steps after 

preconditioning: 

(1) Weigh the sealed test tank and 

record the weight. Place the reference 

tank on the balance and tare it so it 

reads zero. Place the sealed test tank on 

the balance and record the difference 

between the test tank and the reference 

tank. This value is Minitial. Take this 

measurement within 8 hours of filling 

the test tank with fuel as specified in 

paragraph (b)(3) of this section. 

(2) Carefully place the tank within a 

ventilated, temperature-controlled room 

or enclosure. Do not spill or add any 

fuel. 

(3) Close the room or enclosure and 

record the time. 

(4) Ensure that the measured 

temperature in the room or enclosure 

stays within the temperatures specified 

in paragraph (d)(6) of this section. 

(5) Leave the tank in the room or 

enclosure for 14 days. 

(6) Hold the temperature of the room 

or enclosure at 28 ± 2 °C; measure and 

record the temperature at least daily. 

You may alternatively hold the 

temperature of the room or enclosure at 

40 ± 2 °C to demonstrate compliance 

with the alternative standards specified 

in § 1060.103(b). 

(7) At the end of the soak period, 

retare the balance using the reference 

tank and weigh the sealed test tank. 

Record the difference in mass between 

the reference tank and the test tank. 

This value is Mfinal. 

(8) Subtract Mfinal from Minitial; divide 

the difference by the internal surface 

area of the fuel tank. Divide this g/m2

value by the number of test days (using 

at least three significant figures) to 

calculate the emission rate in g/m2/day. 

Example: If a tank with an internal 

surface area of 0.720 m2 weighed 1.31 

grams less than the reference tank at the 

beginning of the test and weighed 9.86 

grams less than the reference tank after 

soaking for 14.03 days, the emission rate 

would be—

((¥1.31 g) ¥ (¥9.82 g)) / 0.72 m2 / 

14.03 days = 0.842 g/m2/day. 

(9) Round your result to the same 

number of decimal places as the 

emission standard. 

(10) In cases where consideration of 

permeation rates, using good 

engineering judgment, leads you to 

conclude that soaking for 14 days is not 

long enough to measure weight change 

with enough significant figures, you 

may soak for 14 days longer. In this 

case, repeat the steps in paragraphs 

(b)(8) and (9) of this section to 

determine the weight change for the full 

28 days. 

(e) Fuel specifications. Use gasoline 

blended with 10 percent ethanol by 

volume as specified in § 1060.501. As an 

alternative, you may use Fuel CE10, 

which is Fuel C as specified in ASTM 

D 471–06 (incorporated by reference in 

§ 1060.810) blended with 10 percent 

ethanol by volume. 

§ 1060.521 How do I test fuel caps for 

permeation emissions? 

If you measure a fuel tank’s 

permeation emissions with a 

nonpermeable covering in place of the 

fuel cap as described in 

§ 1060.520(b)(5)(ii), you must separately 

measure permeation emissions from a 

fuel cap. You may show that your fuel 

tank and fuel cap meet emission 

standards by certifying them separately 

or by combining the separate 

measurements into a single emission 

rate based on the relative areas of the 

fuel tank and fuel cap. Measure fuel 

cap’s permeation emissions as follows: 

(a) Select a fuel cap expected to have 

permeation emissions at least as high as 

the highest-emitting fuel cap that you 

expect to be used with fuel tanks from 

the emission family. Include a gasket 

that represents production models. If 

the fuel cap includes vent paths, seal 

these vents as follows: 

(1) If the vent path is through grooves 

in the gasket, you may use another 

gasket with no vent grooves if it is 

otherwise the same as a production 

gasket. 

(2) If the vent path is through the cap, 

seal any vents for testing. 

(b) Attach the fuel cap to a fuel tank 

with a capacity of at least one liter made 

of metal or some other impermeable 

material. 

(c) Use the procedures specified in 

§ 1060.520 to measure permeation 

emissions. Calculate emission rates 

using the smallest inside cross sectional 

area of the opening on which the cap is 

mounted as the fuel cap’s surface area. 

§ 1060.525 How do I test fuel systems for 

diurnal emissions? 

Use the procedures of this section to 

determine whether your fuel tanks meet 

the diurnal emission standards in 

§ 1060.105. 

(a) Except as specified in paragraph 

(c) of this section, use the following 

procedure to measure diurnal 

emissions: 

(1) Diurnal measurements are based 

on a representative temperature cycle. 

For marine fuel tanks, the temperature 

cycle specifies fuel temperatures rather 

than ambient temperatures. The 

applicable temperature cycle is 

indicated in the following table: 

TABLE 1 TO § 1060.525—DIURNAL TEMPERATURE PROFILES FOR FUEL TANKS

Time 

(hours) 

Ambient temperature 

profile for 

land-based 

fuel tanks 

(°C) 

General fuel 

temperature 

profile for installed marine 

fuel tanks 

(°C) 

Fuel temperature profile for 

marine fuel 

tanks installed 

in 

nontrailerable 

boats 

(°C) 

0 ................................................................................................................................................... 22.2 25.6 27.6 

1 ................................................................................................................................................... 22.5 25.7 27.6 

2 ................................................................................................................................................... 24.2 26.5 27.9 

3 ................................................................................................................................................... 26.8 27.9 28.5 

4 ................................................................................................................................................... 29.6 29.2 29.0 

5 ................................................................................................................................................... 31.9 30.4 29.5 

6 ................................................................................................................................................... 33.9 31.4 29.9 

7 ................................................................................................................................................... 35.1 32.0 30.1 

8 ................................................................................................................................................... 35.4 32.2 30.2 

9 ................................................................................................................................................... 35.6 32.2 30.2 

10 ................................................................................................................................................. 35.3 32.1 30.2 

11 ................................................................................................................................................. 34.5 31.7 30.0 

12 ................................................................................................................................................. 33.2 31.0 29.7 

13 ................................................................................................................................................. 31.4 30.2 29.4 


sroberts on PROD1PC70 with PROPOSALS
28362 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE 1 TO § 1060.525—DIURNAL TEMPERATURE PROFILES FOR FUEL TANKS—Continued 

Time 

(hours) 

Ambient temperature 

profile for 

land-based 

fuel tanks 

(°C) 

General fuel 

temperature 

profile for installed marine 

fuel tanks 

(°C) 

Fuel temperature profile for 

marine fuel 

tanks installed 

in 

nontrailerable 

boats 

(°C) 

14 ................................................................................................................................................. 29.7 29.3 29.1 

15 ................................................................................................................................................. 28.2 28.6 28.8 

16 ................................................................................................................................................. 27.2 28.0 28.5 

17 ................................................................................................................................................. 26.1 27.5 28.3 

18 ................................................................................................................................................. 25.1 27.0 28.1 

19 ................................................................................................................................................. 24.3 26.6 28.0 

20 ................................................................................................................................................. 23.7 26.3 27.9 

21 ................................................................................................................................................. 23.3 26.1 27.8 

22 ................................................................................................................................................. 22.9 25.9 27.7 

23 ................................................................................................................................................. 22.6 25.7 27.6 

24 ................................................................................................................................................. 22.2 25.6 27.6 

(2) Fill the fuel tank to 40 percent of 

nominal capacity with the gasoline 

specified in 40 CFR 1065.710 for general 

testing. 

(3) Install a vapor line from any vent 

ports that would not be sealed in the 

final in-use configuration. Use a length 

of vapor line representing the shortest 

length that would be expected with the 

range of in-use installations for the 

emission family. 

(4) Stabilize the fuel tank at the 

starting temperature of the applicable 

temperature profile from paragraph 

(a)(1) of this section. 

(5) If the fuel tank is equipped with 

a carbon canister, load the canister with 

butane or gasoline vapors to its carbon 

working capacity and attach it to the 

fuel tank in a way that represents a 

typical in-use configuration. 

(6) Place the fuel tank with the carbon 

canister and vent line in a SHED 

meeting the specifications of 40 CFR 

86.107–96(a)(1). Follow the applicable 

temperature trace from paragraph (a)(1) 

of this section for one 24-hour period. 

You need not measure emissions during 

this stabilization step. 

(7) As soon as possible after the 

stabilization in paragraph (a)(6) of this 

section, purge the SHED and follow the 

applicable temperature trace from 

paragraph (a)(1) of this section for three 

consecutive 24-hour periods. Start 

measuring emissions when you start the 

temperature profile. The end of the first, 

second, and third emission sampling 

periods must occur 1440 ± 6, 2880 ± 6, 

and 4320 ± 6 minutes, respectively, after 

starting the measurement procedure. 

Use the highest of the three emission 

levels to determine whether your fuel 

tank meets the diurnal emission 

standard. 

(b) You may subtract your fuel tank’s 

permeation emissions from the 

measured diurnal emissions if the fuel 

tank is preconditioned with diurnal test 

fuel as described in § 1060.520(b) or if 

you use good engineering judgment to 

otherwise establish that the fuel tank 

has stabilized permeation emissions. 

Measure permeation emissions for 

subtraction as specified in § 1060.520(c) 

and (d) before measuring diurnal 

emissions, except that the permeation 

measurement must be done with diurnal 

test fuel. Use appropriate units and 

corrections to subtract the permeation 

emissions from the fuel tank during the 

diurnal emission test. You may not 

subtract a greater mass of emissions 

under this paragraph (b) than the fuel 

tank would emit based on meeting the 

applicable emission standard for 

permeation. 

(c) For emission control technologies 

that do not use carbon canisters or other 

emission-sorbing materials, you must 

follow the procedures specified in 

paragraph (a) of this section, but you 

may omit the stabilization step in 

paragraph (a)(6) of this section and the 

last two 24-hour periods of emission 

measurements in paragraph (a)(7) of this 

section. 

§ 1060.530 How do I test fuel systems for 

diffusion emissions? 

Use the procedures of this section to 

determine whether your fuel tanks meet 

the diffusion emission standards in 

§ 1060.105. 

(a) Use the following procedure to 

measure diffusion emissions: 

(1) Diffusion measurements are based 

on a 6-hour soak under nominally 

isothermal conditions. 

(2) Fill the fuel tank to 90 percent of 

nominal capacity with the gasoline 

specified for general testing in 40 CFR 

1065.710. 

(3) Install fuel caps, vent ports, and 

vent lines representing in-use 

configurations. 

(4) Stabilize the fuel tank at 28 ± 2 °C. 

You need not measure emissions during 

this stabilization step. 

(5) If the fuel system is equipped with 

a carbon canister, load the canister with 

butane or gasoline vapors to its carbon 

working capacity and attach it to the 

fuel tank in a way that represents a 

typical in-use configuration. 

(6) Place the fuel tank with the carbon 

canister and vent line in a sealed 

enclosure such as a SHED meeting the 

specifications of 40 CFR 86.107–

96(a)(1). (Note: Make sure the enclosure 

is large enough that the mixture of fuel 

vapor and air within the enclosure will 

remain safely below the applicable 

lower flammability limit.) 

(7) Hold the temperature of the 

enclosure at 28 ± 2 °C throughout the 

measurement procedure. 

(8) Immediately following the 

stabilization period, purge the SHED. 

Reseal the SHED and start measuring 

emissions. Collect emission 

measurements for 6 hours. Use the 

measured results to calculate an 

emission rate over a 24-hour period. 

(b) You may subtract your fuel tank’s 

permeation emissions from the 

measured diffusion emissions if the fuel 

tank is preconditioned with diffusion 

test fuel as described in § 1060.520(b) or 

if you use good engineering judgment to 

otherwise establish that the fuel tank 

has stabilized permeation emissions. 

Measure permeation emissions for 

subtraction as specified in § 1060.520(c) 

and (d) before measuring diffusion 

emissions, except that the permeation 

measurement must be done with 

diffusion test fuel. Use appropriate units 

and corrections to subtract the 

permeation emissions from the fuel tank 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28363 

during the diffusion emission test. You 

may not subtract a greater mass of 

emissions under this paragraph (b) than 

the fuel tank would emit based on 

meeting the applicable emission 

standard for permeation. 

(c) You may use the procedures of this 

section to certify fuel caps to diffusion 

emission standards. To do this, install 

the fuel cap on a fuel tank that has no 

other vent path. 

§ 1060.535 How do I measure fuel 

temperatures to comply with running loss 

requirements? 

Measure fuel temperature on 

representative equipment models as 

needed to show that all affected 

equipment models will not exceed the 

temperature rise specified in 

§ 1060.104(b)(3). 

(a) Measure fuel temperatures as 

follows: 

(1) Select a piece of equipment 

representing the equipment 

configuration to be produced. 

(2) Position a thermocouple in the 

fuel tank so it remains wetted when the 

fuel tank is 20 percent full, without 

touching the inside walls or bottom of 

the fuel tank. 

(3) Except as specified in paragraph 

(b) of this section, you must conduct 

this testing outdoors without shelter 

under the following conditions: 

(i) Ambient temperature must start 

between 20 and 30 °C and be steady or 

increasing during the test. Measure 

shaded ambient temperatures near the 

test site. 

(ii) Average wind speed must be 

below 15 miles per hour. 

(iii) No precipitation. 

(iv) Maximum cloud cover of 25 

percent as reported by the nearest local 

airport making hourly meteorological 

observations. 

(4) Fill the fuel tank with a 

commercially available fuel. Testing 

may start when fuel temperatures in the 

tank are within 2 °C of the ambient 

temperature without exceeding the 

ambient temperature. 

(5) Operate the equipment for one 

hour or until it uses 80 percent of the 

total fuel tank capacity, whichever 

occurs first, over a normal in-use duty 

cycle. 

(6) Show that the difference between 

the maximum and minimum measured 

fuel temperature during the operation 

specified in paragraph (a)(5) of this 

section does not exceed 8 °C at any time 

during the operation. 

(b) You may ask us to approve a plan 

to measure fuel temperatures indoors. 

Your plan must establish a 

measurement procedure that would 

simulate outdoor conditions and 

consider engine operation, solar load, 

temperature, and wind speed such that 

the measured values would be expected 

to be the same as if they were measured 

using the procedures in paragraph (a) of 

this section. 

(c) If a piece of equipment has more 

than one fuel tank, you may measure 

fuel temperatures in each fuel tank at 

the same time, but each fuel tank must 

control temperatures as specified in 

§ 1060.104(b)(3). 

(d) Keep records of all the 

measurements you make under this 

section. Also keep records describing 

the engine and equipment operation 

used for the measurements, including 

information related to factors that would 

affect engine load. For example, if the 

operation involves cutting grass, 

document the grass height and density 

and the mower’s cutting height. Keep 

these records for at least eight years after 

the end of the last model year for which 

the test results apply. 

Subpart G—Special Compliance 

Provisions 

§ 1060.601 How do the prohibitions of 40 

CFR 1068.101 apply with respect to the 

requirements of this part? 

(a) As described in § 1060.1, certain 

fuel tanks and fuel lines that are used 

with or intended to be used with new 

nonroad engines are subject to 

evaporative emission standards under 

this part 1060. This includes portable 

marine fuel tanks and fuel lines and 

other fuel-system components 

associated with portable marine fuel 

tanks. Except as specified in paragraph 

(f) of this section, these fuel-system 

components must therefore be covered 

by a valid certificate of conformity 

before being introduced into U.S. 

commerce to avoid violating the 

prohibition of 40 CFR 1068.101(a). To 

the extent we allow it under the exhaust 

standard-setting part, fuel-system 

components may be certified with a 

family emission limit higher than the 

emission standard. The provisions of 

this paragraph (a) do not apply to fuel 

caps. 

(b) New replacement fuel tanks and 

fuel lines are subject to evaporative 

emission standards under this part 1060 

if they are intended to be used with 

nonroad engines that are regulated by 

this part 1060, as follows: 

(1) Applicability of standards between 

January 1, 2012 and December 31, 2019. 

Manufacturers, distributors, retailers, 

and importers are obligated to clearly 

state on the packaging for all 

replacement components that could 

reasonably be used with nonroad 

engines how such components may be 

used consistent with the prohibition in 

paragraph (a) of this section. It is 

presumed that such components are 

intended for use with nonroad engines, 

unless the components, or the packaging 

for such components, clearly identify 

appropriate restrictions. This 

requirement does not apply for 

components that are clearly not 

intended for use with fuels. 

(2) Applicability of standards after 

January 1, 2020. Starting January 1, 

2020 it is presumed that replacement 

components will be used with nonroad 

engines subject to the standards of this 

part if they can reasonably be used with 

such engines. Manufacturers, 

distributors, retailers, and importers are 

therefore obligated to take all reasonable 

steps possible to ensure that any 

uncertified components are not used to 

replace certified components. This 

would require labeling the components 

and may also require restricting the 

sales and requiring the ultimate 

purchaser to agree to not use the 

components inappropriately. This 

requirement does not apply for 

components that are clearly not 

intended for use with fuels. 

(3) Applicability of the tampering 

prohibition. If a fuel tank or fuel line 

needing replacement was certified to 

meet the emission standards in this part 

with a family emission limit below the 

otherwise applicable standard, the new 

replacement fuel tank or fuel line must 

be certified with the same or lower 

family emission limit to avoid violating 

the tampering prohibition in 40 CFR 

1068.101(b)(1). Equipment owners may 

request an exemption from this 

requirement by demonstrating that no 

such fuel tanks or fuel lines are 

available. We may issue guidance to 

address such exemptions more broadly 

if appropriate. 

(c) Small SI engines must have a valid 

certificate of conformity with respect to 

running loss emission standards before 

being introduced into U.S. commerce to 

avoid violating the prohibition of 40 

CFR 1068.101(a). The running loss 

emission standard cannot be met by 

component manufacturers. The 

emission standard and the 

responsibility for certification applies to 

engine manufacturers or equipment 

manufacturers as follows: 

(1) Engines with complete fuel 

systems are subject to the running loss 

emission standard. 

(2) If Small SI engines are sold 

without complete fuel systems, the 

associated equipment is subject to the 

running loss emission standard. 

(d) Manufacturers that generate or use 

emission credits related to Marine SI 

engines in 40 CFR part 1045 or Small SI 


sroberts on PROD1PC70 with PROPOSALS
28364 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

engines in 40 CFR part 1054 are subject 

to the emission standards for which 

they are generating or using emission 

credits. These engines or equipment 

must therefore be covered by a valid 

certificate of conformity showing 

compliance with emission-credit 

provisions before being introduced into 

U.S. commerce to avoid violating the 

prohibition of 40 CFR 1068.101(a). 

(e) Where there is no valid certificate 

of conformity for any given evaporative 

emission standard for new equipment, 

the manufacturers of the engine, 

equipment and fuel-system components 

are each liable for violations of the 

prohibited acts. 

(f) If you manufacture fuel lines or 

fuel tanks that are subject to the 

requirements of this part as described in 

paragraph (a) of this section, the 

prohibition in 40 CFR 1068.101(a) does 

not apply to your products if you ship 

them directly to an equipment 

manufacturer or another manufacturer 

with which you have a contractual 

agreement that obligates the other 

manufacturer to certify those fuel lines 

or fuel tanks. 

§ 1060.605 Exemptions from evaporative 

emission standards. 

(a) Except as specified in the exhaust 

standard-setting part and paragraph (b) 

of this section, equipment using an 

engine that is exempt from emission 

standards under the provisions in 40 

CFR part 1068, subpart C or D, is also 

exempt from the requirements of this 

part 1060. For example, engines or 

equipment exempted from exhaust 

emission standards for purposes of 

national security do not need to meet 

evaporative emission standards. Also, 

any engine that is exempt from emission 

standards because it will be used solely 

for competition does not need to meet 

evaporative emission standards. 

(b) Engines produced under the 

replacement-engine exemption in 40 

CFR 1068.240 must use fuel-system 

components that meet the evaporative 

emission standards based on the model 

year of the engine being replaced subject 

to the provisions of 40 CFR 1068.265. If 

no evaporative emission standards 

applied at that time, no requirements 

related to evaporative emissions apply 

to the new engine. Installing a 

replacement engine does not change the 

applicability of requirements for the 

equipment into which the replacement 

engine is installed. 

(c) Engines or equipment that are 

temporarily exempt from EPA exhaust 

emission standards are also exempt 

from the requirements of this part 1060 

for the same period as the exhaust 

exemption. 

(d) For equipment powered by more 

than one engine, all the engines 

installed in the equipment must be 

exempt from all applicable EPA exhaust 

emission standards for the equipment to 

also be exempt under paragraph (a) or 

(b) of this section. 

(e) In unusual circumstances, we may 

exempt equipment from the 

requirements of this part 1060 even if 

the equipment is powered by one or 

more engines that are subject to EPA 

exhaust emission standards. See 40 CFR 

part 1068. Such exemptions will be 

limited to: 

(1) Testing. See 40 CFR 1068.210. 

(2) National security. See 40 CFR 

1068.225. 

(3) Economic hardship. See 40 CFR 

1068.245 and 1068.250. 

(f) Evaporative emission standards 

generally apply based on the model year 

of the equipment, which is determined 

by the equipment’s date of final 

assembly. However, in the first year of 

new emission standards, equipment 

manufacturers may apply evaporative 

emission standards based on the model 

year of the engine as shown on the 

engine’s emission control information 

label. For example, for fuel line 

permeation standards starting in 2012, 

equipment manufacturers may order a 

batch of 2011 model year engines for 

installation in 2012 model year 

equipment, subject to the antistockpiling provisions of 40 CFR 

1068.105(a). The equipment with the 

2011 model year engines would not 

need to meet fuel line permeation 

standards, as long as the equipment is 

fully assembled by December 31, 2012. 

§ 1060.640 What special provisions apply 

to branded equipment? 

The following provisions apply if you 

identify the name and trademark of 

another company instead of your own 

on your emission control information 

label for equipment, as provided by 

§ 1060.135: 

(a) You must have a contractual 

agreement with the other company that 

obligates that company to take the 

following steps: 

(1) Meet the emission warranty 

requirements that apply under 

§ 1060.120. This may involve a separate 

agreement involving reimbursement of 

warranty-related expenses. 

(2) Report all warranty-related 

information to the certificate holder. 

(b) In your application for 

certification, identify the company 

whose trademark you will use and 

describe the arrangements you have 

made to meet your requirements under 

this section. 

(c) You remain responsible for 

meeting all the requirements of this 

chapter, including warranty and defectreporting provisions. 

Subpart H—Averaging, Banking, and 

Trading Provisions 

§ 1060.701 Applicability. 

(a) You are allowed to comply with 

the emission standards in this part with 

emission credits only if the exhaust 

standard-setting part explicitly allows it 

for evaporative emissions. 

(b) The following CFR parts allow 

some use of emission credits: 

(1) 40 CFR part 1045 for marine 

vessels. 

(2) 40 CFR part 1051 for recreational 

vehicles. 

(3) 40 CFR part 1054 for Small SI 

equipment. 

(c) As specified in 40 CFR part 1048, 

there is no calculation of emission 

credits for Large SI equipment. 

§ 1060.705 How do I certify components to 

an emission level other than the standard 

under this part or use such components in 

my equipment? 

As specified in this section, a 

component or system may be certified to 

a family emission limit (FEL) instead of 

the otherwise applicable emission 

standard. 

(a) Requirements for certifying 

component manufacturers. See subpart 

C of this part for instructions regarding 

the general requirements for certifying 

components. 

(1) When you submit your application 

for certification, indicate the FEL to 

which your components will be 

certified. This FEL will serve as the 

applicable standard for your component 

and the equipment that uses the 

component. For example, when the 

regulations of this part use the phrase 

‘‘demonstrate compliance with the 

applicable emission standard’’ it will 

mean ‘‘demonstrate compliance with 

the FEL’’ for your component. 

(2) You may not change the FEL for 

an engine family. To specify a different 

FEL for your components, you must 

send a new application for certification 

for a new emission family. 

(3) Unless your FEL is below all 

emission standards that could 

potentially apply, you must ensure that 

all equipment manufacturers that will 

use your component are aware of the 

limitations regarding the conditions 

under which they may use your 

component. 

(4) It is your responsibility to read the 

relevant instructions in the standardsetting parts identified in § 1060.15. 

(b) Requirements for equipment 

manufacturers. See subpart C of this 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28365 

part for instructions regarding your 

ability to rely on the component 

manufacturer’s certificate. 

(1) The FEL of the component will 

serve as the applicable standard for your 

equipment. 

(2) If the FEL is above the emission 

standard you must ensure that the 

exhaust standard-setting part allows you 

to use emission credits to comply with 

emission standards and that you will 

have an adequate source of emission 

credits. You must certify your 

equipment as specified in § 1060.201 

and the rest of subpart C of this part. 

Subpart I—Definitions and Other 

Reference Information 

§ 1060.801 What definitions apply to this 

part? 

The following definitions apply to 

this part. The definitions apply to all 

subparts unless we note otherwise. All 

undefined terms have the meaning the 

Act gives to them. The definitions 

follow: 

Accuracy and precision means the 

sum of accuracy and repeatability, as 

defined in 40 CFR 1065.1001. For 

example, if a measurement device is 

determined to have an accuracy of ± 1% 

and a repeatability of ± 2%, then its 

accuracy and precision would be ± 3%. 

Act means the Clean Air Act, as 

amended, 42 U.S.C. 7401–7671q. 

Adjustable parameter means any 

device, system, or element of design that 

someone can adjust and that, if 

adjusted, may affect emissions. You may 

ask us to exclude a parameter if you 

show us that it will not be adjusted in 

use in a way that affects emissions. 

Applicable emission standard or 

applicable standard means an emission 

standard to which a fuel-system 

component; or, where a fuel-system 

component has been or is being certified 

another standard or FEL, applicable 

emission standards means the FEL and 

other standards to which the fuelsystem component has been or is being 

certified. This definition does not apply 

to subpart H of this part. 

Butane working capacity means the 

measured amount of hydrocarbon vapor 

that can be stored on a canister when 

tested according to ASTM D5228–92 

(incorporated by reference in 

§ 1060.810). You may determine carbon 

capacity for a given system by 

multiplying the mass of carbon in the 

system by weight-specific carbon 

working capacity of a specific type of 

carbon. 

Certification means relating to the 

process of obtaining a certificate of 

conformity for an emission family that 

complies with the emission standards 

and requirements in this part. 

Certified emission level means the 

highest official emission level in an 

emission family. 

Cold-weather equipment includes the 

following types of handheld equipment: 

chainsaws, cut-off saws, clearing saws, 

brush cutters with engines at or above 

40cc, commercial earth and wood drills, 

and ice augers. This includes earth 

augers if they are also marketed as ice 

augers. 

Configuration means a unique 

combination of hardware (material, 

geometry, and size) and calibration 

within an emission family. Units within 

a single configuration differ only with 

respect to normal production variability. 

Designated Compliance Officer means 

the Manager, Heavy-Duty and Nonroad 

Engine Group (6405–J), U.S. 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460. 

Designated Enforcement Officer 

means the Director, Air Enforcement 

Division (2242A), U.S. Environmental 

Protection Agency, 1200 Pennsylvania 

Ave., NW., Washington, DC 20460. 

Detachable fuel line means a fuel line 

or fuel line assembly intended to be 

used with a portable nonroad fuel tank 

and which is connected by special 

fittings to the fuel tank and/or engine for 

easy disassembly. Fuel lines that require 

a wrench or other tools to disconnect 

are not considered detachable fuel lines. 

Diffusion emissions means 

evaporative emissions caused by the 

venting of fuel tank vapors as a result 

of molecular motion rather than fuel 

heating. 

Diurnal emissions means evaporative 

emissions that occur as a result of 

venting fuel tank vapors during daily 

temperature changes while the engine is 

not operating. Diurnal emissions 

include diffusion emissions. 

Effective length-to-diameter ratio 

means the mean vapor path length of a 

carbon canister divided by the effective 

diameter of that vapor path. The 

effective diameter is the diameter of a 

circle with the same cross-sectional area 

as the average cross-sectional area of the 

carbon canister’s vapor path. 

Emission control system means any 

device, system, or element of design that 

controls or reduces the regulated 

evaporative emissions from a piece of 

nonroad equipment. 

Emission-data unit means a fuel line, 

fuel tank, fuel system, or fuel-system 

component that is tested for 

certification. This includes components 

tested by EPA. 

Emission-related maintenance means 

maintenance that substantially affects 

emissions or is likely to substantially 

affect emission deterioration. 

Emission family has the meaning 

given in § 1060.230. 

Equipment means vehicles, marine 

vessels, and other types of nonroad 

equipment that are subject to this part’s 

requirements. 

Evaporative means relating to fuel 

emissions that result from permeation of 

fuel through the fuel-system materials 

and from ventilation of the fuel system. 

Exhaust standard-setting part means 

the part in the Code of Federal 

Regulations that contains exhaust 

emission standards for a particular piece 

of equipment (or the engine in that 

piece of equipment). For example, the 

exhaust standard-setting part for offhighway motorcycles is 40 CFR part 

1051. Exhaust standard-setting parts 

may include evaporative emission 

requirements or describe how the 

requirements of this part 1060 apply. 

Exposed gasket surface area means 

the surface area of the gasket inside the 

fuel tank that is exposed to fuel or fuel 

vapor. For the purposes of calculating 

exposed surface area of a gasket, the 

thickness of the gasket and the outside 

dimension of the opening being sealed 

are used. Gasket overhang into the fuel 

tank should be ignored for the purpose 

of this calculation. 

Family emission limit (FEL) means an 

emission level declared by the 

manufacturer to serve in place of an 

otherwise applicable emission standard 

under an ABT program specified by the 

exhaust standard-setting part. The 

family emission limit must be expressed 

to the same number of decimal places as 

the emission standard it replaces. The 

family emission limit serves as the 

emission standard for the emission 

family with respect to all required 

testing. 

Fuel line means hoses or tubing 

designed to contain liquid fuel. The 

exhaust standard-setting part may 

further specify which types of hoses and 

tubing are subject to the standards of 

this part. 

Fuel system means all components 

involved in transporting, metering, and 

mixing the fuel from the fuel tank to the 

combustion chamber(s), including the 

fuel tank, fuel tank cap, fuel pump, fuel 

filters, fuel lines, carburetor or fuelinjection components, and all fuelsystem vents. In the case where the fuel 

tank cap or other components 

(excluding fuel lines) are directly 

mounted on the fuel tank, they are 

considered to be a part of the fuel tank. 

Fuel CE10 has the meaning given in 

§ 1060.515(a). 

Fuel type means a general category of 

fuels such as gasoline or natural gas. 

There can be multiple grades within a 

single fuel type, such as premium 


sroberts on PROD1PC70 with PROPOSALS
28366 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

gasoline, regular gasoline, or gasoline 

with 10 percent ethanol. 

Gasoline means one of the following: 

(1) For in-use fuels, gasoline means 

fuel that is commonly and commercially 

know as gasoline, including ethanol 

blends. 

(2) For testing, gasoline has the 

meaning given in subpart F of this part. 

Good engineering judgment means 

judgments made consistent with 

generally accepted scientific and 

engineering principles and all available 

relevant information. See 40 CFR 1068.5 

for the administrative process we use to 

evaluate good engineering judgment. 

Installed marine fuel tank means any 

fuel tank designed for delivering fuel to 

a Marine SI engine, excluding portable 

nonroad fuel tanks. 

Large SI means relating to engines 

that are subject to evaporative emission 

standards in 40 CFR part 1048. 

Low-permeability material means a 

material with permeation emission rates 

at or below 10 (g-mm)/(m2-day) when 

measured according to SAE J2659 

(incorporated by reference in 

§ 1060.810), where the test temperature 

is 23 °C, the test fuel is Fuel CE10, and 

testing immediately follows a four-week 

preconditioning soak with the test fuel. 

Manufacture means the physical and 

engineering process of designing, 

constructing, and assembling an engine, 

piece of nonroad equipment, or fuelsystem components subject to the 

requirements of this part. 

Manufacturer has the meaning given 

in section 216(1) of the Act. In general, 

this term includes: 

(1) Any person who manufactures an 

engine or piece of nonroad equipment 

for sale in the United States or 

otherwise introduces a new nonroad 

engine or a piece of new nonroad 

equipment into U.S. commerce. 

(2) Any person who manufactures a 

fuel-system component for an engine 

subject to the requirements of this part 

as described in § 1060.1(a). 

(3) Importers who import such 

products into the United States. 

Marine SI means relating to vessels 

subject to evaporative emission 

standards in 40 CFR part 1045. 

Marine vessel has the meaning given 

in 40 CFR § 1045.801, which generally 

includes all nonroad equipment used as 

a means of transportation on water. 

Model year means one of the 

following things: 

(1) For equipment defined as ‘‘new 

nonroad equipment’’ under paragraph 

(1) of the definition of ‘‘new nonroad 

engine,’’ model year means one of the 

following: 

(i) Calendar year. 

(ii) Your annual new model 

production period if it is different than 

the calendar year. This must include 

January 1 of the calendar year for which 

the model year is named. It may not 

begin before January 2 of the previous 

calendar year and it must end by 

December 31 of the named calendar 

year. 

(2) For other equipment defined as 

‘‘new nonroad equipment’’ under 

paragraph (2) of the definition of ‘‘new 

nonroad engine,’’ model year has the 

meaning given in the exhaust standardsetting part. 

(3) For other equipment defined as 

‘‘new nonroad equipment’’ under 

paragraph (3) or paragraph (4) of the 

definition of ‘‘new nonroad engine,’’

model year means the model year of the 

engine as defined in the exhaust 

standard-setting part. 

New nonroad equipment means 

equipment meeting one or more of the 

following criteria: 

(1) Nonroad equipment for which the 

ultimate purchaser has never received 

the equitable or legal title. The 

equipment is no longer new when the 

ultimate purchaser receives this title or 

the product is placed into service, 

whichever comes first. 

(2) Nonroad equipment that is defined 

as new under the exhaust standardsetting part. (Note: equipment that is not 

defined as new under the exhaust 

standard-setting part may be defined as 

new under this definition of ‘‘new 

nonroad equipment.’’) 

(3) Nonroad equipment with an 

engine that becomes new (as defined in 

the exhaust standard-setting part) while 

installed in the equipment. The 

equipment is no longer new when it is 

subsequently placed into service. This 

paragraph (3) does not apply if the 

engine becomes new before being 

installed in the equipment. 

(4) Nonroad equipment not covered 

by a certificate of conformity issued 

under this part at the time of 

importation and manufactured after the 

requirements of this part start to apply 

(see § 1060.1). The equipment is no 

longer new when it is subsequently 

placed into service. Importation of this 

kind of new nonroad equipment is 

generally prohibited by 40 CFR part 

1068. 

Nominal capacity means the a fuel 

tank’s volume as specified by the fuel 

tank manufacturer, using at least two 

significant figures, based on the 

maximum volume of fuel the tank can 

hold with standard refueling 

techniques. 

Nonroad engine has the meaning we 

give in 40 CFR 1068.30. In general this 

means all internal-combustion engines 

except motor vehicle engines, stationary 

engines, engines used solely for 

competition, or engines used in aircraft. 

This part does not apply to all nonroad 

engines (see § 1060.1). 

Nonroad equipment means a piece of 

equipment that is powered by or 

intended to be powered by one or more 

nonroad engines. Note that § 1060.601 

describes how we treat outboard 

engines, portable marine fuel tanks, and 

associated fuel-system components as 

nonroad equipment under this part 

1060. 

Nontrailerable boat means a vessel 26 

feet or more in length. 

Official emission result means the 

measured emission rate for an emissiondata unit. 

Placed into service means put into 

initial use for its intended purpose. 

Portable marine fuel tank means a 

portable nonroad fuel tank that is used 

or intended to be used with a marine 

vessel. 

Portable nonroad fuel tank means a 

fuel tank that meets each of the 

following criteria: 

(1) It has design features indicative of 

use in portable applications, such as a 

carrying handle and fuel line fitting that 

can be readily attached to and detached 

from a nonroad engine. 

(2) It has a nominal fuel capacity of 

12 gallons or less. 

(3) It is designed to supply fuel to an 

engine while the engine is operating. 

Production period means the period 

in which a certified component will be 

produced under a certificate of 

conformity. 

Recreational vehicle means vehicles 

that are subject to evaporative emission 

standards in 40 CFR part 1051. This 

generally includes engines that will be 

installed in recreational vehicles if the 

engines are certified separately under 40 

CFR 1051.20. 

Revoke has the meaning given in 40 

CFR 1068.30. If we revoke a certificate 

or an exemption, you must apply for a 

new certificate or exemption before 

continuing to introduce the affected 

equipment into U.S. commerce. 

Round means to round numbers 

according to standard procedures as 

specified in 40 CFR 1065.1001. 

Running loss emissions means 

unburned fuel vapor that escapes from 

the fuel system to the ambient 

atmosphere while the engine is 

operating, excluding permeation 

emissions and diurnal emissions. 

Running loss emissions generally result 

from fuel-temperature increases caused 

by heat released from in-tank fuel 

pumps, fuel recirculation, or proximity 

to heat sources such as the engine or 

exhaust components. 

Sealed means lacking openings to the 

atmosphere that would allow liquid or 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28367 

vapor to leak out under normal 

operating pressures or other pressures 

specified in this part. Sealed fuel 

systems may have openings for emission 

controls or fuel lines needed to route 

fuel to the engine. 

Small SI means relating to engines 

that are subject to emission standards in 

40 CFR part 90 or 1054. 

Structurally integrated nylon fuel tank 

means a fuel tank having all the 

following characteristics: 

(1) The fuel tank is made of a 

polyamide material that does not 

contain more than 50 percent by weight 

of a reinforcing glass fiber or mineral 

filler and does not contain more than 10 

percent by weight of impact modified 

polyamides that use rubberized agents 

such as EPDM rubber. 

(2) The fuel tank must be used in a 

cut-off saw or chainsaw or be integrated 

into a major structural member where, 

as a single component, the fuel tank 

material is a primary structural/stress 

member for other major components 

such as the engine, transmission, or 

cutting attachment. 

Subchapter U means 40 CFR parts 

1000 through 1299. 

Suspend has the meaning given in 40 

CFR 1068.30. If we suspend a certificate, 

you may not introduce into U.S. 

commerce equipment from that 

emission family unless we reinstate the 

certificate or approve a new one. If we 

suspend an exemption, you may not 

introduce into U.S. commerce 

equipment that was previously covered 

by the exemption unless we reinstate 

the exemption. 

Tare means to use a container or other 

reference mass to zero a balance before 

weighing a sample. Generally, this 

means placing the container or reference 

mass on the balance, allowing it to 

stabilize, then zeroing the balance 

without removing the container or 

reference mass. This allows you to use 

the balance to determine the difference 

in mass between the sample and the 

container or reference mass. 

Test unit means a piece of fuel line, 

a fuel tank, or a fuel system in a test 

sample. 

Test sample means the collection of 

fuel lines, fuel tanks, or fuel systems 

selected from the population of an 

emission family for emission testing. 

This may include testing for 

certification, production-line testing, or 

in-use testing. 

Ultimate purchaser means, with 

respect to any new nonroad equipment, 

the first person who in good faith 

purchases such new nonroad equipment 

for purposes other than resale. 

Ultraviolet light means 

electromagnetic radiation with a 

wavelength between 300 and 400 

nanometers. 

United States has the meaning given 

in 40 CFR 1068.30. 

U.S.-directed production volume 

means the amount of equipment, subject 

to the requirements of this part, 

produced by a manufacturer for which 

the manufacturer has a reasonable 

assurance that sale was or will be made 

to ultimate purchasers in the United 

States. 

Useful life means the period during 

which new nonroad equipment is 

required to comply with all applicable 

emission standards. See § 1060.101. 

Void has the meaning given in 40 CFR 

1068.30. If we void a certificate, each 

piece of equipment introduced into U.S. 

commerce under that emission family 

for that production period is considered 

noncompliant, and you are liable for 

each piece of equipment introduced into 

U.S. commerce under the certificate and 

may face civil or criminal penalties or 

both. This applies equally to each piece 

of equipment in the emission family, 

including equipment introduced into 

U.S. commerce before we voided the 

certificate. If we void an exemption, 

each piece of equipment introduced into 

U.S. commerce under that exemption is 

considered uncertified (or 

nonconforming), and you are liable for 

each piece of equipment introduced into 

U.S. commerce under the exemption 

and may face civil or criminal penalties 

or both. You may not introduce into 

U.S. commerce any additional 

equipment using the voided exemption. 

Volatile liquid fuel means any fuel 

other than diesel or biodiesel that is a 

liquid at atmospheric pressure and has 

a Reid Vapor Pressure higher than 2.0 

pounds per square inch. 

We (us, our) means the Administrator 

of the Environmental Protection Agency 

and any authorized representatives. 

Wintertime equipment means 

equipment using a wintertime engine, as 

defined in 40 CFR 1054.801. Note this 

definition applies only for Small SI 

equipment. 

§ 1060.805 What symbols, acronyms, and 

abbreviations does this part use? 

The following symbols, acronyms, 

and abbreviations apply to this part: 

° degree. 

ASTM American Society for Testing and 

Materials. 

C Celsius. 

CFR Code of Federal Regulations. 

CWFL Cold-weather fuel line (see 

§ 1060.102). 

EPA Environmental Protection Agency. 

FEL family emission limit. 

g gram. 

gal gallon. 

hr hour. 

in inch. 

kPa kilopascal. 

kW kilowatt. 

L liter. 

LEFL Low-emission fuel line (see 

§ 1060.102). 

m meter. 

min minute. 

mm millimeter. 

NRFL Nonroad fuel line (see § 1060.102). 

psig pounds per square inch of gauge 

pressure. 

SAE Society of Automotive Engineers. 

SHED Sealed Housing for Evaporative 

Determination. 

U.S. United States. 

U.S.C. United States Code. 

W watt. 

§ 1060.810 What materials does this part 

reference? 

Documents listed in this section have 

been incorporated by reference into this 

part. The Director of the Federal 

Register approved the incorporation by 

reference as prescribed in 5 U.S.C. 

552(a) and 1 CFR part 51. Anyone may 

inspect copies at the U.S. EPA, Air and 

Radiation Docket and Information 

Center, 1301 Constitution Ave., NW., 

Room B102, EPA West Building, 

Washington, DC 20460 or at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to: http://www.archives.gov/ 

federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

(a) ASTM material. Table 1 of this 

section lists material from the American 

Society for Testing and Materials that 

we have incorporated by reference. The 

first column lists the number and name 

of the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

American Society for Testing and 

Materials, 100 Barr Harbor Dr., P.O. Box 

C700, West Conshohocken, PA 19428 or 

www.astm.com. Table 1 follows: 


sroberts on PROD1PC70 with PROPOSALS
28368 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

TABLE 1 TO § 1060.810.—ASTM MATERIALS

Document number and name Part 1060 

reference 

ASTM D 471–06, Standard Test Method for Rubber Property-Effect of Liquids ........................................................................... 1060.515 

ASTM D3802–79 (Reapproved 2005), Standard Test Method for Ball-Pan Hardness of Activated Carbon ................................. 1060.240 

ASTM D5228–92 (Reapproved 2005), Standard Test Method for Determination of Butane Working Capacity of Activated Carbon ............................................................................................................................................................................................... 1060.240 

(b) SAE material. Table 2 of this 

section lists material from the Society of 

Automotive Engineers that we have 

incorporated by reference. The first 

column lists the number and name of 

the material. The second column lists 

the sections of this part where we 

reference it. Anyone may purchase 

copies of these materials from the 

Society of Automotive Engineers, 400 

Commonwealth Drive, Warrendale, PA 

15096 or www.sae.org. Table 2 follows: 

TABLE 2 TO § 1060.810.—SAE MATERIALS

Document number and name Part 1060 

reference 

SAE J30, Fuel and Oil Hoses, June 1998 ...................................................................................................................................... 1060.515 

SAE J1527, Marine Fuel Hoses, February 1993 ............................................................................................................................ 1060.515 

SAE J2260, Nonmetallic Fuel System Tubing with One or More Layers, November 1996 ........................................................... 1060.510 

SAE J2659, Test Method to Measure Fluid Permeation of Polymeric Materials by Speciation, December 2003 ........................ 1060.801 

§ 1060.815 What provisions apply to 

confidential information? 

(a) Clearly show what you consider 

confidential by marking, circling, 

bracketing, stamping, or some other 

method. 

(b) We will store your confidential 

information as described in 40 CFR part 

2. Also, we will disclose it only as 

specified in 40 CFR part 2. This applies 

both to any information you send us and 

to any information we collect from 

inspections, audits, or other site visits. 

(c) If you send us a second copy 

without the confidential information, 

we will assume it contains nothing 

confidential whenever we need to 

release information from it. 

(d) If you send us information without 

claiming it is confidential, we may make 

it available to the public without further 

notice to you, as described in 40 CFR 

2.204. 

§ 1060.820 How do I request a hearing? 

(a) You may request a hearing under 

certain circumstances, as described 

elsewhere in this part. To do this, you 

must file a written request, including a 

description of your objection and any 

supporting data, within 30 days after we 

make a decision. 

(b) For a hearing you request under 

the provisions of this part, we will 

approve your request if we find that 

your request raises a substantial factual 

issue. 

(c) If we agree to hold a hearing, we 

will use the procedures specified in 40 

CFR part 1068, subpart G. 

§ 1060.825 What reporting and 

recordkeeping requirements apply under 

this part? 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget approves the 

reporting and recordkeeping specified 

in the applicable regulations. The 

following items illustrate the kind of 

reporting and recordkeeping we require 

for products regulated under this part: 

(a) We specify the following 

requirements related to equipment 

certification in this part 1060: 

(1) In 40 CFR 1060.20 we give an 

overview of principles for reporting 

information. 

(2) In 40 CFR part 1060, subpart C, we 

identify a wide range of information 

required to certify engines. 

(3) In 40 CFR 1060.301 we require 

manufacturers to make engines or 

equipment available for our testing if we 

make such a request. 

(4) In 40 CFR 1060.505 we specify 

information needs for establishing 

various changes to published test 

procedures. 

(b) We specify the following 

requirements related to the general 

compliance provisions in 40 CFR part 

1068: 

(1) In 40 CFR 1068.5 we establish a 

process for evaluating good engineering 

judgment related to testing and 

certification. 

(2) In 40 CFR 1068.25 we describe 

general provisions related to sending 

and keeping information. 

(3) In 40 CFR 1068.27 we require 

manufacturers to make equipment 

available for our testing or inspection if 

we make such a request. 

(4) In 40 CFR 1068.105 we require 

equipment manufacturers to keep 

certain records related to duplicate 

labels from engine manufacturers. 

(5) [Reserved] 

(6) In 40 CFR part 1068, subpart C, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to various exemptions. 

(7) In 40 CFR part 1068, subpart D, we 

identify several reporting and 

recordkeeping items for making 

demonstrations and getting approval 

related to importing equipment. 

(8) In 40 CFR 1068.450 and 1068.455 

we specify certain records related to 

testing production-line products in a 

selective enforcement audit. 

(9) In 40 CFR 1068.501 we specify 

certain records related to investigating 

and reporting emission-related defects. 

(10) In 40 CFR 1068.525 and 1068.530 

we specify certain records related to 

recalling nonconforming equipment. 

PART 1065—ENGINE-TESTING 

PROCEDURES 

134. The authority citation for part 

1065 continues to read as follows: 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—[Amended] 

135. Section 1065.1 is amended by 

revising paragraph (a) to read as follows: 

§ 1065.1 Applicability. 

(a) This part describes the procedures 

that apply to testing we require for the 

following engines or for vehicles using 

the following engines: 

(1) [Reserved] 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28369 

(2) Model year 2010 and later heavyduty highway engines we regulate under 

40 CFR part 86. For earlier model years, 

manufacturers may use the test 

procedures in this part or those 

specified in 40 CFR part 86, subpart N, 

according to § 1065.10. 

(3) Nonroad diesel engines we 

regulate under 40 CFR part 1039 and 

stationary diesel engines that are 

certified to the standards in 40 CFR part 

1039 as specified in 40 CFR part 60, 

subpart IIII. For earlier model years, 

manufacturers may use the test 

procedures in this part or those 

specified in 40 CFR part 89 according to 

§ 1065.10. 

(4) [Reserved] 

(5) Marine spark-ignition engines we 

regulate under 40 CFR part 1045. For 

earlier model years, manufacturers may 

use the test procedures in this part or 

those specified in 40 CFR part 91 

according to § 1065.10. 

(6) Large nonroad spark-ignition 

engines we regulate under 40 CFR part 

1048, and stationary engines that are 

certified to the standards in 40 CFR part 

1048 as specified in 40 CFR part 60, 

subpart JJJJ. 

(7) Vehicles we regulate under 40 CFR 

part 1051 (such as snowmobiles and offhighway motorcycles) based on engine 

testing. See 40 CFR part 1051, subpart 

F, for standards and procedures that are 

based on vehicle testing. 

(8) Small nonroad spark-ignition 

engines we regulate under 40 CFR part 

1054 and stationary engines that are 

certified to the standards in 40 CFR part 

1054 as specified in 40 CFR part 60, 

subpart JJJJ. For earlier model years, 

manufacturers may use the test 

procedures in this part or those 

specified in 40 CFR part 90 according to 

§ 1065.10. 

* * * * * 

PART 1068—GENERAL COMPLIANCE 

PROVISIONS FOR NONROAD 

PROGRAMS 

136. The authority citation for part 

1068 continues to read as follows: 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—[Amended] 

137. Section 1068.1 is revised to read 

as follows: 

§ 1068.1 Does this part apply to me? 

(a) The provisions of this part apply 

to everyone with respect to the 

following engines and to equipment 

using the following engines (including 

owners, operators, parts manufacturers, 

and persons performing maintenance). 

(1) Locomotives we regulate under 40 

CFR part 1039. 

(2) Land-based nonroad compressionignition engines we regulate under 40 

CFR part 1039. 

(3) Stationary compression-ignition 

engines certified to the provisions of 40 

CFR part 1039, as indicated under 40 

CFR part 60, subpart IIII. 

(4) Marine diesel engines we regulate 

under 40 CFR part 1042. 

(5) Marine spark-ignition engines we 

regulate under 40 CFR part 1045. 

(6) Large nonroad spark-ignition 

engines we regulate under 40 CFR part 

1048. 

(7) Stationary spark-ignition engines 

certified to the provisions of 40 CFR 

parts 1048 or 1054, as indicated under 

40 CFR part 60, subpart JJJJ. 

(8) Recreational engines and vehicles 

we regulate under 40 CFR part 1051 

(such as snowmobiles and off-highway 

motorcycles). 

(9) Small nonroad spark-ignition 

engines we regulate under 40 CFR part 

1054. 

(b) This part does not apply to any of 

the following engine or vehicle 

categories: 

(1) Light-duty motor vehicles (see 40 

CFR part 86). 

(2) Heavy-duty motor vehicles and 

motor vehicle engines (see 40 CFR part 

86). 

(3) Aircraft engines (see 40 CFR part 

87). 

(4) Land-based nonroad diesel engines 

we regulate under 40 CFR part 89. 

(5) Small nonroad spark-ignition 

engines we regulate under 40 CFR part 

90. 

(6) Marine spark-ignition engines we 

regulate under 40 CFR part 91. 

(7) Locomotive engines (see 40 CFR 

part 92). 

(8) Marine diesel engines (see 40 CFR 

parts 89 and 94). 

(c) Paragraph (a)(1) of this section 

identifies the parts of the CFR that 

define emission standards and other 

requirements for particular types of 

engines and equipment. This part 1068 

refers to each of these other parts 

generically as the ‘‘standard-setting 

part.’’ For example, 40 CFR part 1051 is 

always the standard-setting part for 

snowmobiles. Follow the provisions of 

the standard-setting part if they are 

different than any of the provisions in 

this part. 

(d)(1) The provisions of §§ 1068.30, 

1068.310, and 1068.320 apply for 

stationary spark-ignition engines built 

on or after January 1, 2004, and for 

stationary compression-ignition engines 

built on or after January 1, 2006. 

(2) The provisions of §§ 1068.30 and 

1068.235 apply for the types of engines/ 

equipment listed in paragraph (a) of this 

section beginning January 1, 2004, if 

they are used solely for competition. 

138. A new § 1068.2 is added to read 

as follows: 

§ 1068.2 How does this part apply for 

engines and how does it apply for 

equipment? 

(a) See the standard-setting part to 

determine if engine-based and/or 

equipment-based standards apply. 

(Note: Some equipment is subject to 

engine-based standards for exhaust 

emission and equipment-based 

standards for evaporative emissions.) 

(b) The provisions of this part apply 

differently depending on whether the 

engine or equipment is required to be 

certified. 

(1) This subpart A and subpart B of 

this part apply to engines and 

equipment, without regard to which is 

subject to certification requirements in 

the standard-setting part. 

(2) Subparts C, D, and E of this part 

apply to the engines or to the 

equipment, whichever is subject to 

certification requirements in the 

standard-setting part. 

(3) Subpart F of this part generally 

applies to the engines or to the 

equipment, whichever is subject to 

standards under the standard-setting 

part. However, since subpart F of this 

part addresses in-use engines and 

equipment (in which the engine is 

installed in the equipment), the 

requirements do not always distinguish 

between engines and equipment. 

(c) For issues related to testing, read 

the term ‘‘engines/equipment’’ to mean 

engines for engines subject to enginebased testing and equipment for 

equipment subject to equipment-based 

testing; otherwise, read the term 

‘‘engines/equipment’’ to mean engines 

for sources subject to engine-based 

standards and equipment for sources 

subject to equipment-based standards. 

(d) Where we use the term engines 

(rather than engines/equipment), read it 

to mean engines without regard to 

whether the source is subject to enginebased standards or testing. Where we 

use the term equipment (rather than 

engines/equipment), read it to mean 

equipment without regard to whether 

the source is subject to equipment-based 

standards or testing. (Note: The 

definition of ‘‘equipment’’ in § 1068.30 

includes the engine.) 

(e) The terminology convention 

described in this section is not intended 

to limit our authority or your obligations 

under the Clean Air Act. 

139. Section 1068.5 is amended by 

revising paragraph (a) to read as follows: 

§ 1068.5 How must manufacturers apply 

good engineering judgment? 

(a) You must use good engineering 

judgment for decisions related to any 


sroberts on PROD1PC70 with PROPOSALS
28370 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

requirements under this chapter. This 

includes your applications for 

certification, any testing you do to show 

that your certification, production-line, 

and in-use engines/equipment comply 

with requirements that apply to them, 

and how you select, categorize, 

determine, and apply these 

requirements. 

* * * * * 

140. Section 1068.20 is amended by 

revising paragraphs (a) and (d) to read 

as follows: 

§ 1068.20 May EPA enter my facilities for 

inspections? 

(a) We may inspect your testing, 

manufacturing processes, storage 

facilities (including port facilities for 

imported engines and equipment or 

other relevant facilities), or records, as 

authorized by the Act, to enforce the 

provisions of this chapter. Inspectors 

will have authorizing credentials and 

will limit inspections to reasonable 

times—usually, normal operating hours. 

* * * * * 

(d) We may select any facility to do 

any of the following: 

(1) Inspect and monitor any aspect of 

engine or equipment manufacturing, 

assembly, storage, or other procedures, 

and any facilities where you do them. 

(2) Inspect and monitor any aspect of 

engine or equipment test procedures or 

test-related activities, including test 

engine/equipment selection, 

preparation, service accumulation, 

emission duty cycles, and maintenance 

and verification of your test equipment’s 

calibration. 

(3) Inspect and copy records or 

documents related to assembling, 

storing, selecting, and testing an engine 

or piece of equipment. 

(4) Inspect and photograph any part or 

aspect of engines or equipment and 

components you use for assembly. 

* * * * * 

141. Section 1068.25 is revised to read 

as follows: 

§ 1068.25 What information must I give to 

EPA? 

If you are subject to the requirements 

of this part, we may require you to give 

us information to evaluate your 

compliance with any regulations that 

apply, as authorized by the Act. This 

includes the following things: 

(a) You must provide the information 

we require in this chapter. We may 

require an authorized representative of 

your company to approve and sign any 

submission of information to us, and to 

certify that the information is accurate 

and complete. 

(b) You must establish and maintain 

records, perform tests, make reports and 

provide additional information that we 

may reasonably require under section 

208 of the Act (42 U.S.C. 7542). This 

also applies to engines/equipment we 

exempt from emission standards or 

prohibited acts. 

142. Section 1068.27 is revised to read 

as follows: 

§ 1068.27 May EPA conduct testing with 

my production engines/equipment? 

If we request it, you must make a 

reasonable number of production-line 

engines or pieces of production-line 

equipment available for a reasonable 

time so we can test or inspect them for 

compliance with the requirements of 

this chapter. 

143. Section 1068.30 is revised to read 

as follows: 

§ 1068.30 What definitions apply to this 

part? 

The following definitions apply to 

this part. The definitions apply to all 

subparts unless we note otherwise. All 

undefined terms have the meaning the 

Act gives to them. The definitions 

follow: 

Act means the Clean Air Act, as 

amended, 42 U.S.C. 7401–7671q. the 

Clean Air Act, as amended, 42 U.S.C. 

7401 et seq. 

Aftertreatment means relating to a 

catalytic converter, particulate filter, or 

any other system, component, or 

technology mounted downstream of the 

exhaust valve (or exhaust port) whose 

design function is to reduce emissions 

in the engine exhaust before it is 

exhausted to the environment. Exhaustgas recirculation (EGR) is not 

aftertreatment. 

Aircraft means any vehicle capable of 

sustained air travel above treetop 

heights. 

Certificate holder means a 

manufacturer (including importers) with 

a currently valid certificate of 

conformity for at least one family in a 

given model year. 

Date of manufacture means—

(1) For engines, the later of the 

following dates: 

(i) The date on which an engine is 

assembled to the point of being able to 

run. This does not require installation of 

a cooling system, fuel tank, or 

aftertreament devices. 

(ii) The date on which a partially 

complete engine that was introduced 

into U.S. commerce with an exemption 

under § 1068.262 is assembled in its 

final certified configuration. 

(2) For equipment, the date on which 

assembly of the equipment is 

completed. 

Days means calendar days, including 

weekends and holidays. 

Defeat device has the meaning given 

in the standard-setting part. 

Designated Officer means the Manager 

of the Heavy-Duty and Nonroad Engine 

Group (6405–J), U.S. Environmental 

Protection Agency, 1200 Pennsylvania 

Ave., Washington, DC 20460. 

Engine means a complete or partially 

complete internal combustion engine. 

The term engine broadly includes any 

assembly of an engine block and at least 

one other attached component. The term 

engine does not include engine blocks 

with no attached components, nor does 

it include any assembly of engine 

components that does not include the 

engine block. This includes complete 

and partially complete engines as 

follows: 

(1) A complete engine is a fully 

assembled engine in its final 

configuration. 

(2) A partially complete engine is an 

engine that is not fully assembled or is 

not in its final configuration. Except 

where we specify otherwise in this part 

or the standard-setting part, partially 

complete engines are subject to the same 

standards and requirements as complete 

engines. The following would be 

considered examples of partially 

complete engines: 

(i) An engine that is missing only an 

aftertreatment component. 

(ii) An engine that was originally 

assembled as a motor-vehicle engine 

that will be recalibrated for use as a 

nonroad engine. 

(iii) An engine that was originally 

assembled as a land-based engine that 

will be modified for use as a marine 

propulsion engine. 

(iv) A short block consisting of engine 

components connected to the engine 

block, but missing the head assembly. 

(v) A loose engine that will be 

installed in an off-highway motorcycle 

that will be subject to vehicle-based 

standards. 

Engine-based standard means an 

emission standard expressed in units of 

grams of pollutant per kilowatt-hour, 

and which applies to the engine. 

Emission standards are either enginebased or equipment-based. 

Engine-based test means an emission 

test intended to measure emissions in 

units of grams of pollutant per kilowatthour, without regard to whether the 

standard applies to the engine or 

equipment. 

Engine/equipment and engines/ 

equipment mean either engine(s) or 

equipment. Specifically these terms 

mean the following: 

(1) Engine(s) when only engine-based 

standards apply. 

(2) Engine(s) for testing issues when 

engine-based testing applies. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28371 

(3) Engine(s) and equipment when 

both engine-based and equipment-based 

standards apply. 

(4) Equipment when only equipmentbased standards apply. 

(5) Equipment for testing issues when 

equipment-based testing applies. 

Equipment means one of the 

following things: 

(1) Any vehicle, vessel, or other type 

of equipment that is subject to the 

requirements of this part, or that uses an 

engine that is subject to the 

requirements of this part. An installed 

engine is part of the equipment. 

(2) Fuel-system components that are 

subject to an equipment-based standard 

under this chapter. Installed fuel-system 

components are part of the engine. 

Equipment-based standard means an 

emission standard that applies to the 

equipment in which an engine is used 

or to fuel-system components associated 

with an engine, without regard to how 

the emissions are measured. Where 

equipment-based standards apply, we 

require that the equipment or fuelsystem components be certified, rather 

than just the engine. Emission standards 

are either engine-based or equipmentbased. For example, recreational 

vehicles we regulate under 40 CFR part 

1051 are subject to equipment-based 

standards, even if emission 

measurements are based on engine 

operation alone. 

Exempted means relating to engines/ 

equipment that are not required to meet 

otherwise applicable standards. 

Exempted engines/equipment must 

conform to regulatory conditions 

specified for an exemption in this part 

1068 or in the standard-setting part. 

Exempted engines/equipment are 

deemed to be ‘‘subject to’’ the standards 

of the standard-setting part, even though 

they are not required to comply with the 

otherwise applicable requirements. 

Engines/equipment exempted with 

respect to a certain tier of standards may 

be required to comply with an earlier 

tier of standards as a condition of the 

exemption; for example, engines 

exempted with respect to Tier 3 

standards may be required to comply 

with Tier 1 or Tier 2 standards. 

Family means engine family or 

emission family, as applicable under the 

standard-setting part. 

Final deteriorated test result has the 

meaning given in the standard-setting 

part. If it is not defined in the standardsetting part, it means the emission level 

that results from applying all 

appropriate adjustments (such as 

deterioration factors) to the measured 

emission result of the emission-data 

engine. 

Good engineering judgment means 

judgments made consistent with 

generally accepted scientific and 

engineering principles and all available 

relevant information. 

Incomplete engine assembly means an 

assembly of engine components that 

includes at least the engine block and 

one other component, but lacks certain 

parts essential for engine operation. An 

engine block with no other assembled 

components is not an incomplete engine 

assembly under this section. An 

assembly of engine parts that does not 

include the engine block is also not an 

incomplete engine assembly. 

Manufacturer has the meaning given 

in section 216(1) of the Act (42 U.S.C. 

7550(1)). In general, this term includes 

any person who manufactures an engine 

or piece of equipment for sale in the 

United States or otherwise introduces a 

new engine or piece of equipment into 

U.S. commerce. This includes importers 

that import new engines or new 

equipment into the United States for 

resale. It also includes secondary engine 

manufacturers. 

Model year has the meaning given in 

the standard-setting part. Unless the 

standard-setting part specifies 

otherwise, model year for individual 

engines/equipment is based on the date 

of manufacture or a later date 

determined by the manufacturer. The 

model year of a new engine that is 

neither certified nor exempt is deemed 

to be the calendar year in which it is 

sold, offered for sale, imported, or 

delivered or otherwise introduced into 

commerce in the United States. 

Motor vehicle has the meaning given 

in 40 CFR 85.1703(a). 

New has the meaning we give it in the 

standard-setting part. 

Nonroad engine means: 

(1) Except as discussed in paragraph 

(2) of this definition, a nonroad engine 

is an internal combustion engine that 

meets any of the following criteria: 

(i) It is (or will be) used in or on a 

piece of equipment that is self-propelled 

or serves a dual purpose by both 

propelling itself and performing another 

function (such as garden tractors, offhighway mobile cranes and bulldozers). 

(ii) It is (or will be) used in or on a 

piece of equipment that is intended to 

be propelled while performing its 

function (such as lawnmowers and 

string trimmers). 

(iii) By itself or in or on a piece of 

equipment, it is portable or 

transportable, meaning designed to be 

and capable of being carried or moved 

from one location to another. Indicia of 

transportability include, but are not 

limited to, wheels, skids, carrying 

handles, dolly, trailer, or platform. 

(2) An internal combustion engine is 

not a nonroad engine if it meets any of 

the following criteria: 

(i) The engine is used to propel a 

motor vehicle, an aircraft, or equipment 

used solely for competition. 

(ii) The engine is regulated under 40 

CFR part 60, (or otherwise regulated by 

a federal New Source Performance 

Standard promulgated under section 

111 of the Act (42 U.S.C. 7411)). 

(iii) The engine otherwise included in 

paragraph (1)(iii) of this definition 

remains or will remain at a location for 

more than 12 consecutive months or a 

shorter period of time for an engine 

located at a seasonal source. A location 

is any single site at a building, structure, 

facility, or installation. Any engine (or 

engines) that replaces an engine at a 

location and that is intended to perform 

the same or similar function as the 

engine replaced will be included in 

calculating the consecutive time period. 

An engine located at a seasonal source 

is an engine that remains at a seasonal 

source during the full annual operating 

period of the seasonal source. A 

seasonal source is a stationary source 

that remains in a single location on a 

permanent basis (i.e., at least two years) 

and that operates at that single location 

approximately three months (or more) 

each year. See § 1068.31 for provisions 

that apply if the engine is removed from 

the location. 

Operating hours means: 

(1) For engine and equipment storage 

areas or facilities, times during which 

people other than custodians and 

security personnel are at work near, and 

can access, a storage area or facility. 

(2) For other areas or facilities, times 

during which an assembly line operates 

or any of the following activities occurs: 

(i) Testing, maintenance, or service 

accumulation. 

(ii) Production or compilation of 

records. 

(iii) Certification testing. 

(iv) Translation of designs from the 

test stage to the production stage. 

(v) Engine or equipment manufacture 

or assembly. 

Piece of equipment means any 

vehicle, vessel, locomotive, aircraft, or 

other type of equipment using engines 

to which this part applies. 

Placed into service means used for its 

intended purpose. 

Reasonable technical basis means 

information that would lead a person 

familiar with engine design and 

function to reasonably believe a 

conclusion, related to compliance with 

the requirements of this part. For 

example, it would be reasonable to 

believe that parts performing the same 

function as the original parts (and to the 


sroberts on PROD1PC70 with PROPOSALS
28372 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

same degree) would control emissions 

to the same degree as the original parts. 

Revoke means to terminate the 

certificate or an exemption for a family. 

If we revoke a certificate or exemption, 

you must apply for a new certificate or 

exemption before continuing to 

introduce the affected engines/ 

equipment into U.S. commerce. This 

does not apply to engines/equipment 

you no longer possess. 

Secondary engine manufacturer 

means anyone who produces a new 

engine by modifying a complete or 

partially complete engine that was made 

by a different company. For the purpose 

of this definition, ‘‘modifying’’ does not 

include making changes that do not 

remove an engine from its original 

certified configuration. Secondary 

engine manufacturing includes, for 

example, converting automotive engines 

for use in industrial applications, or 

land-based engines for use in marine 

applications. This applies whether it 

involves a complete or partially 

complete engine and whether the engine 

was previously certified to emission 

standards or not. Manufacturers 

controlled by the manufacturer of the 

base engine (or by an entity that also 

controls the manufacturer of the base 

engine) are not secondary engine 

manufacturers; rather, both entities are 

considered to be one manufacturer for 

purposes of this part. Equipment 

manufacturers that substantially modify 

engines are secondary engine 

manufacturers. Also, equipment 

manufacturers that certify to equipmentbased standards using engines produced 

by another company are deemed to be 

secondary engine manufacturers. 

Small business means either of the 

following: 

(1) A company that qualifies under 

the standard-setting part for special 

provisions for small businesses or smallvolume manufacturers. 

(2) A company that qualifies as a 

small business under the regulations 

adopted by the Small Business 

Administration at 13 CFR 121.201. 

Standard-setting part means a part in 

the Code of Federal Regulations that 

defines emission standards for a 

particular engine and/or piece of 

equipment (see § 1068.1(a)). For 

example, the standard-setting part for 

marine spark-ignition engines is 40 CFR 

part 1045. For provisions related to 

evaporative emissions, the standardsetting part may be 40 CFR part 1060, 

as specified in 40 CFR 1060.1. 

Suspend means to temporarily 

discontinue the certificate or an 

exemption for a family. If we suspend 

a certificate, you may not introduce into 

U.S. commerce engines/equipment from 

that family unless we reinstate the 

certificate or approve a new one. If we 

suspend an exemption, you may not 

introduce into U.S. commerce engines/ 

equipment that were previously covered 

by the exemption unless we reinstate 

the exemption. 

Ultimate purchaser means the first 

person who in good faith purchases a 

new nonroad engine or new piece of 

equipment for purposes other than 

resale. 

United States means the States, the 

District of Columbia, the 

Commonwealth of Puerto Rico, the 

Commonwealth of the Northern Mariana 

Islands, Guam, American Samoa, and 

the U.S. Virgin Islands. 

U.S.-directed production volume 

means the number of engine/equipment 

units, subject to the requirements of this 

part, produced by a manufacturer for 

which the manufacturer has a 

reasonable assurance that sale was or 

will be made to ultimate purchasers in 

the United States. 

Void means to invalidate a certificate 

or an exemption ab initio. If we void a 

certificate, all the engines/equipment 

introduced into U.S. commerce under 

that family for that model year are 

considered noncompliant, and you are 

liable for all engines/equipment 

introduced into U.S. commerce under 

the certificate and may face civil or 

criminal penalties or both. This applies 

equally to all engines/equipment in the 

family, including engines/equipment 

introduced into U.S. commerce before 

we voided the certificate. If we void an 

exemption, all the engines/equipment 

introduced into U.S. commerce under 

that exemption are considered 

uncertified (or nonconforming), and you 

are liable for engines/equipment 

introduced into U.S. commerce under 

the exemption and may face civil or 

criminal penalties or both. You may not 

introduce into U.S. commerce any 

additional engines/equipment using the 

voided exemption. 

Voluntary emission recall means a 

repair, adjustment, or modification 

program voluntarily initiated and 

conducted by a manufacturer to remedy 

any emission-related defect for which 

engine owners have been notified. 

We (us, our) means the Administrator 

of the Environmental Protection Agency 

and any authorized representatives. 

144. A new § 1068.31 is added to read 

as follows: 

§ 1068.31 What provisions apply to 

nonroad or stationary engines that change 

their status? 

This section specifies the provisions 

that apply when an engine previously 

used in a nonroad application is 

subsequently used in an application 

other than a nonroad application, or 

when an engine previous used in a 

stationary application (i.e., an engine 

that was not used as a nonroad engine 

and that was not used to propel a motor 

vehicle, an aircraft, or equipment used 

solely for competition) is moved. 

(a) Changing the status of a stationary 

engine to be a new nonroad engine as 

described in paragraph (b) of this 

section is a violation of § 1068.101(a)(1) 

unless the engine has been certified to 

be compliant with all requirements of 

this chapter that apply to new nonroad 

engines of the same type (for example, 

a compression-ignition engine rated at 

40 kW) and model year, and is in its 

certified configuration. 

(b) A stationary engine becomes a new 

nonroad engine if—

(1) It is used in an application that 

meets the criteria specified in 

paragraphs (1)(i) or (ii) in the definition 

of ‘‘nonroad engine’’ in § 1068.30. 

(2) It meets the criteria specified in 

paragraph (1)(iii) of the definition of 

‘‘nonroad engine’’ in § 1068.30 and is 

moved so that it fails to meet (or no 

longer meets) the criteria specified in 

paragraph (2)(iii) in the definition of 

‘‘nonroad engine’’ in § 1068.30. 

(c) A stationary engine does not 

become a new nonroad engine if it is 

moved but continues to meet the criteria 

specified in paragraph (2)(iii) in the 

definition of ‘‘nonroad engine’’ in 

§ 1068.30 in its new location. For 

example, a transportable engine that is 

used in a single specific location for 18 

months and is later moved to a second 

specific location where it will remain 

for at least 12 months is considered to 

be a stationary engine in both locations. 

(d) Changing the status of a nonroad 

engine to be a new stationary engine as 

described in paragraph (e) of this 

section is a violation of § 1068.101(a)(1) 

unless the engine complies with all the 

requirements of this chapter for new 

stationary engines of the same type (for 

example, a compression-ignition engine 

rated at 40 kW) and model year. For a 

new stationary engine that is required to 

be certified under 40 CFR part 60, the 

engine must have been certified to be 

compliant with all the requirements that 

apply to new stationary engines of the 

same type and model year, and must be 

in its certified configuration. 

(e) A nonroad engine ceases to be a 

nonroad engine and becomes a new 

stationary engine if—

(1) At any time, it meets the criteria 

specified in paragraph (2)(iii) in the 

definition of ‘‘nonroad engine’’ in 

§ 1068.30. For example, a portable 

generator engine ceases to be a nonroad 

engine if it is used or will be used in 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28373 

a single specific location for 12 months 

or longer. If we determine that an engine 

will be or has been used in a single 

specific location for 12 months or 

longer, it ceased to be a nonroad engine 

when it was placed in that location. 

(2) It is otherwise regulated by a 

federal New Source Performance 

Standard promulgated under section 

111 of the Act (42 U.S.C. 7411). 

(f) A nonroad engine ceases to be a 

nonroad engine if it is used to propel a 

motor vehicle, an aircraft, or equipment 

used solely for competition. See 40 CFR 

part 86 for requirements applicable to 

motor vehicles and motor vehicle 

engines. See 40 CFR part 87 for 

requirements applicable to aircraft and 

aircraft engines. See § 1068.235 for 

requirements applicable to equipment 

used solely for competition. 

Subpart B—[Amended] 

145. Section 1068.101 is revised to 

read as follows: 

§ 1068.101 What general actions does this 

regulation prohibit? 

This section specifies actions that are 

prohibited and the maximum civil 

penalties that we can assess for each 

violation. The maximum penalty values 

listed in paragraphs (a) and (b) of this 

section are shown for calendar year 

2004. As described in paragraph (e) of 

this section, maximum penalty limits 

for later years are set forth in 40 CFR 

part 19. 

(a) The following prohibitions and 

requirements apply to manufacturers of 

new engines, manufacturers of 

equipment containing these engines, 

and manufacturers of new equipment, 

except as described in subparts C and D 

of this part: 

(1) Introduction into commerce. You 

may not sell, offer for sale, or introduce 

or deliver into commerce in the United 

States or import into the United States 

any new engine/equipment after 

emission standards take effect for the 

engine/equipment, unless it is covered 

by a valid certificate of conformity for 

its model year and has the required 

label or tag. You also may not take any 

of the actions listed in the previous 

sentence with respect to any equipment 

containing an engine subject to this 

part’s provisions, unless the engine is 

covered by a valid and appropriate 

certificate of conformity and has the 

required engine label or tag. We may 

assess a civil penalty up to $32,500 for 

each engine or piece of equipment in 

violation. 

(i) For purposes of this paragraph 

(a)(1), an appropriate certificate of 

conformity is one that applies for the 

same model year as the model year of 

the equipment (except as allowed by 

§ 1068.105(a)), covers the appropriate 

category of engines/equipment (such as 

locomotive or Marine SI), and conforms 

to all requirements specified for 

equipment in the standard-setting part. 

Engines/equipment are considered not 

covered by a certificate unless they are 

in a configuration described in the 

application for certification. 

(ii) The requirements of this 

paragraph (a)(1) also cover new engines 

you produce to replace an older engine 

in a piece of equipment, unless the 

engine qualifies for the replacementengine exemption in § 1068.240. 

(iii) For engines used in equipment 

subject to equipment-based standards, 

you may not sell, offer for sale, or 

introduce or deliver into commerce in 

the United States or import into the 

United States any new engine, unless it 

is covered by a valid certificate of 

conformity for its model year and has 

the required label or tag. See the 

standard-setting part for more 

information about how this prohibition 

applies. 

(2) Reporting and recordkeeping. This 

chapter requires you to record certain 

types of information to show that you 

meet our standards. You must comply 

with these requirements to make and 

maintain required records (including 

those described in § 1068.501). You may 

not deny us access to your records or 

the ability to copy your records if we 

have the authority to see or copy them. 

Also, you must give us complete and 

accurate reports and information 

without delay, as required under this 

chapter. Failure to comply with the 

requirements of this paragraph is 

prohibited. We may assess a civil 

penalty up to $32,500 for each day you 

are in violation. In addition, knowingly 

submitting false information is a 

violation of 18 U.S.C. 1001, which may 

involve criminal penalties and up to 

five years imprisonment. 

(3) Testing and access to facilities. 

You may not keep us from entering your 

facility to test engines/equipment or 

inspect if we are authorized to do so. 

Also, you must perform the tests we 

require (or have the tests done for you). 

Failure to perform this testing is 

prohibited. We may assess a civil 

penalty up to $32,500 for each day you 

are in violation. 

(b) The following prohibitions apply 

to everyone with respect to the engines 

and equipment to which this part 

applies: 

(1) Tampering. You may not remove, 

disable, or render inoperative a device 

or element of design that may affect an 

engine’s or piece of equipment’s 

emission levels. This includes, for 

example, operating an engine without a 

supply of appropriate quality urea if the 

emissions control system relies on urea 

to reduce NOX emissions or the use of 

incorrect fuel or engine oil that renders 

the emissions control system 

inoperative. This restriction applies 

before and after the engine or equipment 

is placed in service. Section 1068.120 

describes how this applies to rebuilding 

engines. See the standard-setting part, 

which may include additional 

provisions regarding actions prohibited 

by this requirement. For a manufacturer 

or dealer, we may assess a civil penalty 

up to $32,500 for each engine or piece 

of equipment in violation. For anyone 

else, we may assess a civil penalty up 

to $2,750 for each day an engine or 

piece of equipment is operated in 

violation. This prohibition does not 

apply in any of the following situations: 

(i) You need to repair the engine/ 

equipment and you restore it to proper 

functioning when the repair is 

complete. 

(ii) You need to modify the engine/ 

equipment to respond to a temporary 

emergency and you restore it to proper 

functioning as soon as possible. 

(iii) You modify new engines/ 

equipment that another manufacturer 

has already certified to meet emission 

standards and recertify them under your 

own family. In this case you must tell 

the original manufacturer not to include 

the modified engines/equipment in the 

original family. 

(2) Defeat devices. You may not 

knowingly manufacture, sell, offer to 

sell, or install, any part that bypasses, 

impairs, defeats, or disables the control 

the emissions of any pollutant. See the 

standard-setting part, which may 

include additional provisions regarding 

actions prohibited by this requirement. 

We may assess a civil penalty up to 

$2,750 for each part in violation. 

(3) Stationary engines. For an engine 

that is excluded from any requirements 

of this chapter because it is a stationary 

engine, you may not move it or install 

it in any mobile equipment, except as 

allowed by the provisions of this 

chapter. You may not circumvent or 

attempt to circumvent the residencetime requirements of paragraph (2)(iii) 

of the nonroad engine definition in 

§ 1068.30. We may assess a civil penalty 

up to $32,500 for each day you are in 

violation. 

(4) Competition engines/equipment. 

For uncertified engines/equipment that 

are excluded or exempted from any 

requirements of this chapter because 

they are to be used solely for 

competition, you may not use any of 

them in a manner that is inconsistent 

with use solely for competition. We may 


sroberts on PROD1PC70 with PROPOSALS
28374 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

assess a civil penalty up to $32,500 for 

each day you are in violation. 

(5) Importation. You may not import 

an uncertified engine or piece of 

equipment if it is defined to be new in 

the standard-setting part and it is built 

after emission standards start to apply 

in the United States. We may assess a 

civil penalty up to $32,500 for each day 

you are in violation. Note the following: 

(i) The definition of new is broad for 

imported engines/equipment; 

uncertified engines and equipment 

(including used engines and equipment) 

are generally considered to be new 

when imported. 

(ii) Engines/equipment that were 

originally manufactured before 

applicable EPA standards were in effect 

are generally not subject to emission 

standards. 

(6) Warranty and recall. You must 

meet your obligation to honor your 

emission-related warranty under 

§ 1068.115, including any commitments 

you identify in your application for 

certification. You must also fulfill all 

applicable requirements under subpart 

F of this part related to emission-related 

defects and recalls. Failure to meet these 

obligations is prohibited. Also, except as 

specifically provided by regulation, you 

are prohibited from directly or 

indirectly communicating to the 

ultimate purchaser or a later purchaser 

that the emission-related warranty is 

valid only if the owner has service 

performed at authorized facilities, or 

only if the owner uses authorized parts, 

components, or systems. We may assess 

a civil penalty up to $32,500 for each 

engine or piece of equipment in 

violation. 

(c) [Reserved] 

(d) Exemptions from these 

prohibitions are described in subparts C 

and D of this part and in the standardsetting part. 

(e) The standard-setting parts describe 

more requirements and prohibitions that 

apply to manufacturers (including 

importers) and others under this 

chapter. 

(f) [Reserved] 

(g) The maximum penalty values 

listed in paragraphs (a) and (b) of this 

section are shown for calendar year 

2004. Maximum penalty limits for later 

years may be adjusted based on the 

Consumer Price Index. The specific 

regulatory provisions for changing the 

maximum penalties, published in 40 

CFR part 19, reference the applicable 

U.S. Code citation on which the 

prohibited action is based. The 

following table is shown here for 

informational purposes: 

TABLE 1 TO § 1068.101.—LEGAL CITATION FOR SPECIFIC PROHIBITIONS FOR DETERMINING MAXIMUM PENALTY AMOUNTS

Part 1068 regulatory citation of prohibited action General description of prohibition U.S. Code citation for clean 

air act authority 

§ 1068.101(a)(1) ................................. Introduction into U.S. commerce of an uncertified source ............................ 42 U.S.C. 7522(a)(1). 

§ 1068.101(a)(2) ................................. Failure to provide information ........................................................................ 42 U.S.C. 7522(a)(2). 

§ 1068.101(a)(3) ................................. Denying access to facilities ........................................................................... 42 U.S.C. 7522(a)(2). 

§ 1068.101(b)(1) ................................. Tampering with emission controls by a manufacturer or dealer ................... 42 U.S.C. 7522(a)(3). 

Tampering with emission controls by someone other than a manufacturer 

or dealer.

§ 1068.101(b)(2) ................................. Sale or use of a defeat device ...................................................................... 42 U.S.C. 7522(a)(3). 

§ 1068.101(b)(3) ................................. Mobile use of a stationary engine ................................................................. 42 U.S.C. 7522(a)(1). 

§ 1068.101(b)(4) ................................. Noncompetitive use of uncertified engines/equipment that is exempted for 

competition.

42 U.S.C. 7522(a)(1). 

§ 1068.101(b)(5) ................................. Importation of an uncertified source .............................................................. 42 U.S.C. 7522(a)(1). 

146. Section 1068.105 is revised to 

read as follows: 

§ 1068.105 What other provisions apply to 

me specifically if I manufacture equipment 

needing certified engines? 

This section describes general 

provisions that apply to equipment 

manufacturers for sources subject to 

engine-based standards. See the 

standard-setting part for any 

requirements that apply for certain 

applications. 

(a) Transitioning to new engine-based 

standards. If new engine-based emission 

standards apply in a given model year, 

your equipment in that model year must 

have engines that are certified to the 

new standards, except that you may 

continue to use up your normal 

inventory of earlier engines that were 

built before the date of the new or 

changed standards. For example, if your 

normal inventory practice is to keep on 

hand a one-month supply of engines 

based on your upcoming production 

schedules, and a new tier of standard 

starts to apply for the 2015 model year, 

you may order engines based on your 

normal inventory requirements late in 

the engine manufacturer’s 2014 model 

year and install those engines in your 

equipment, regardless of the date of 

installation. Also, if your model year 

starts before the end of the calendar year 

preceding new standards, you may use 

engines from the previous model year 

for those units you produce before 

January 1 of the year that new standards 

apply. If emission standards for the 

engine do not change in a given model 

year, you may continue to install 

engines from the previous model year 

without restriction. You may not 

circumvent the provisions of 

§ 1068.101(a)(1) by stockpiling engines 

that were built before new or changed 

standards take effect. Note that this 

allowance does not apply for equipment 

subject to equipment-based standards. 

(b) Installing engines or certified 

components. You must follow the 

engine manufacturer’s emission-related 

installation instructions. For example, 

you may need to constrain where you 

place an exhaust aftertreatment device 

or integrate into your equipment models 

a device for sending visual or audible 

signals to the operator. Similarly, you 

must follow the emission-related 

installation instructions from the 

manufacturer of a component that has 

been certified for controlling 

evaporative emissions under 40 CFR 

part 1060. Not meeting the 

manufacturer’s emission-related 

installation instructions is a violation of 

§ 1068.101(b)(1). 

(c) Attaching a duplicate label. If you 

obscure the engine’s label, you must do 

four things to avoid violating 

§ 1068.101(a)(1): 

(1) Send a request for duplicate labels 

in writing with your company’s 

letterhead to the engine manufacturer. 

Include the following information in 

your request: 

(i) Identify the type of equipment and 

the specific engine and equipment 

models needing duplicate labels. 

(ii) Identify the family (from the 

original engine label). 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28375 

(iii) State the reason that you need a 

duplicate label for each equipment 

model. 

(iv) Identify the number of duplicate 

labels you will need. 

(2) Permanently attach the duplicate 

label to your equipment by securing it 

to a part needed for normal operation 

and not normally requiring replacement. 

Make sure an average person can easily 

read it. 

(3) Destroy any unused duplicate 

labels if you find that you will not need 

them. 

(4) Keep the following records for at 

least eight years after the end of the 

model year identified on the engine 

label: 

(i) Keep a copy of your written 

request. 

(ii) Keep drawings or descriptions that 

show how you apply the duplicate 

labels to your equipment. 

(iii) Maintain a count of those 

duplicate labels you use and those you 

destroy. 

147. Section 1068.110 is revised to 

read as follows: 

§ 1068.110 What other provisions apply to 

engines/equipment in service? 

(a) Aftermarket parts and service. As 

the certifying manufacturer, you may 

not require anyone to use your parts or 

service to maintain or repair an engine 

or piece of equipment, unless we 

approve this in your application for 

certification. It is a violation of the Act 

for anyone to manufacture any part if 

one of its main effects is to reduce the 

effectiveness of the emission controls. 

See § 1068.101(b)(2). 

(b) Certifying aftermarket parts. As 

the manufacturer or rebuilder of an 

aftermarket engine or equipment part, 

you may—but are not required to—

certify according to 40 CFR part 85, 

subpart V, that using the part will not 

cause engines/equipment to fail to meet 

emission standards. Whether you certify 

or not, you must keep any information 

showing how your parts or service affect 

emissions. 

(c) Compliance with standards. We 

may test engines and equipment to 

investigate compliance with emission 

standards and other requirements. We 

may also require the manufacturer to do 

this testing. 

(d) Defeat devices. We may test 

engines and equipment to investigate 

potential defeat devices. We may also 

require the manufacturer to do this 

testing. If we choose to investigate one 

of your designs, we may require you to 

show us that it does not have a defeat 

device. To do this, you may have to 

share with us information regarding test 

programs, engineering evaluations, 

design specifications, calibrations, onboard computer algorithms, and design 

strategies. It is a violation of the Act for 

anyone to make, install or use defeat 

devices. See § 1068.101(b)(2) and the 

standard-setting part. 

(e) Warranty and maintenance. 

Owners are responsible for properly 

maintaining their engines/equipment; 

however, owners may make warranty 

claims against the manufacturer for all 

expenses related to diagnosing and 

repairing or replacing emission-related 

parts, as described in § 1068.115. The 

warranty period begins when the 

equipment is first placed into service. 

See the standard-setting part for specific 

requirements. It is a violation of the Act 

for anyone to disable emission controls; 

see § 1068.101(b)(1) and the standardsetting part. 

148. Section 1068.115 is revised to 

read as follows: 

§ 1068.115 When must manufacturers 

honor emission-related warranty claims? 

Section 207(a) of the Clean Air Act 

(42 U.S.C. 7541(a)) requires certifying 

manufacturers to warrant to purchasers 

that their engines/equipment are 

designed, built, and equipped to 

conform at the time of sale to the 

applicable regulations for their full 

useful life, including a warranty that the 

engines/equipment are free from defects 

in materials and workmanship that 

would cause any engine/equipment to 

fail to conform to the applicable 

regulations during the specified 

warranty period. This section codifies 

the warranty requirements of section 

207(a) without intending to limit these 

requirements. 

(a) As a certifying manufacturer, you 

may deny warranty claims only for 

failures that have been caused by the 

owner’s or operator’s improper 

maintenance or use, by accidents for 

which you have no responsibility, or by 

acts of God. For example, you would not 

need to honor warranty claims for 

failures that have been directly caused 

by the operator’s abuse of the engine/ 

equipment or the operator’s use of the 

engine/equipment in a manner for 

which it was not designed, and are not 

attributable to you in any way. 

(b) As a certifying manufacturer, you 

may not deny emission-related warranty 

claims based on any of the following: 

(1) Maintenance or other service you 

or your authorized facilities performed. 

(2) Engine/equipment repair work that 

an operator performed to correct an 

unsafe, emergency condition 

attributable to you, as long as the 

operator tries to restore the engine/ 

equipment to its proper configuration as 

soon as possible. 

(3) Any action or inaction by the 

operator unrelated to the warranty 

claim. 

(4) Maintenance that was performed 

more frequently than you specify. 

(5) Anything that is your fault or 

responsibility. 

(6) The use of any fuel that is 

commonly available where the 

equipment operates, unless your written 

maintenance instructions state that this 

fuel would harm the equipment’s 

emission control system and operators 

can readily find the proper fuel. 

149. Section 1068.120 is revised to 

read as follows: 

§ 1068.120 What requirements must I 

follow to rebuild engines? 

(a) This section describes the steps to 

take when rebuilding engines to avoid 

violating the tampering prohibition in 

§ 1068.101(b)(1). These requirements 

apply to anyone rebuilding an engine 

subject to this part, but the 

recordkeeping requirements in 

paragraphs (j) and (k) of this section 

apply only to businesses. For 

maintenance or service that is not 

rebuilding, including any maintenance 

related to evaporative emission controls, 

you may not make changes that might 

increase emissions of any pollutant, but 

you do not need to keep any records. 

(b) The term ‘‘rebuilding’’ refers to a 

rebuild of an engine or engine system, 

including a major overhaul in which 

you replace the engine’s pistons or 

power assemblies or make other changes 

that significantly increase the service 

life of the engine. It also includes 

replacing or rebuilding an engine’s 

turbocharger or aftercooler or the 

engine’s systems for fuel metering or 

electronic control so that it significantly 

increases the service life of the engine. 

For these provisions, rebuilding may or 

may not involve removing the engine 

from the equipment. Rebuilding does 

not normally include the following: 

(1) Scheduled emission-related 

maintenance that the standard-setting 

part allows during the useful life period 

(such as replacing fuel injectors). 

(2) Unscheduled maintenance that 

occurs commonly within the useful life 

period. For example, replacing a water 

pump is not rebuilding an engine. 

(c) [Reserved] 

(d) If you rebuild an engine or engine 

system, you must have a reasonable 

technical basis for knowing that the 

rebuilt engine’s emission control system 

performs as well as, or better than, it 

performs in its certified configuration. 

Identify the model year of the resulting 

engine configuration. You have a 

reasonable basis if you meet two main 

conditions: 


sroberts on PROD1PC70 with PROPOSALS
28376 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

(1) Install parts—new, used, or 

rebuilt—so a person familiar with 

engine design and function would 

reasonably believe that the engine with 

those parts will control emissions of all 

pollutants at least to the same degree as 

with the original parts. For example, it 

would be reasonable to believe that 

parts performing the same function as 

the original parts (and to the same 

degree) would control emissions to the 

same degree as the original parts. 

(2) Adjust parameters or change 

design elements only according to the 

original engine manufacturer’s 

instructions. Or, if you differ from these 

instructions, you must have data or 

some other technical basis to show you 

should not expect in-use emissions to 

increase. 

(e) If the rebuilt engine remains 

installed or is reinstalled in the same 

piece of equipment, you must rebuild it 

to the original configuration or another 

certified configuration of the same or 

later model year. 

(f) If the rebuilt engine replaces 

another certified engine in a piece of 

equipment, you must rebuild it to a 

certified configuration of the same 

model year as, or a later model year 

than, the engine you are replacing. 

(g) Do not erase or reset emissionrelated codes or signals from onboard 

monitoring systems without diagnosing 

and responding appropriately to any 

diagnostic codes. This requirement 

applies regardless of the manufacturer’s 

reason for installing the monitoring 

system and regardless of its form or 

interface. Clear any codes from 

diagnostic systems when you return the 

rebuilt engine to service. Do not disable 

a diagnostic signal without addressing 

its cause. 

(h) When you rebuild an engine, 

check, clean, adjust, repair, or replace 

all emission-related components (listed 

in Appendix I of this part) as needed 

according to the original manufacturer’s 

recommended practice. In particular, 

replace oxygen sensors, replace the 

catalyst if there is evidence of 

malfunction, clean gaseous fuel-system 

components, and replace fuel injectors 

(if applicable), unless you have a 

reasonable technical basis for believing 

any of these components do not need 

replacement. 

(i) If you are installing an engine that 

someone else has rebuilt, check all 

emission-related components listed in 

Appendix I of this part as needed 

according to the original manufacturer’s 

recommended practice. 

(j) Keep at least the following records: 

(1) Identify the hours of operation (or 

mileage, as appropriate) at time of 

rebuild. 

(2) Identify the work done on the 

engine or any emission-related control 

components, including a listing of parts 

and components you used. 

(3) Describe any engine parameter 

adjustments. 

(4) Identify any emission-related 

codes or signals you responded to and 

reset. 

(k) You must show us or send us your 

records if we ask for them. Keep records 

for at least two years after rebuilding an 

engine. Keep them in any format that 

allows us to readily review them. 

(1) You do not need to keep 

information that is not reasonably 

available through normal business 

practices. We do not expect you to have 

information that you cannot reasonably 

access. 

(2) You do not need to keep records 

of what other companies do. 

(3) You may keep records based on 

families rather than individual engines 

if that is the way you normally do 

business. 

Subpart C—[Amended] 

150. Section 1068.201 is revised to 

read as follows: 

§ 1068.201 Does EPA exempt or exclude 

any engines/equipment from the prohibited 

acts? 

We may exempt new engines/ 

equipment from some or all of the 

prohibited acts or requirements of this 

part under provisions described in this 

subpart. We may exempt engines/ 

equipment already placed in service in 

the United States from the prohibition 

in § 1068.101(b)(1) if the exemption for 

engines/equipment used solely for 

competition applies (see § 1068.235). In 

addition, see § 1068.1 and the standardsetting parts to determine if other 

engines/equipment are excluded from 

some or all of the regulations in this 

chapter. 

(a) This subpart identifies which 

engines/equipment qualify for 

exemptions and what information we 

need. We may ask for more information. 

(b) If you violate any of the terms, 

conditions, instructions, or 

requirements to qualify for an 

exemption, we may void, revoke, or 

suspend the exemption. 

(c) If you use an exemption under this 

subpart, we may require you to add a 

permanent label to your exempted 

engines/equipment. You may ask us to 

modify these labeling requirements if it 

is appropriate for your engine/ 

equipment. 

(d) If you produce engines/equipment 

we exempt under this subpart, we may 

require you to make and keep records, 

perform tests, make reports and provide 

information as needed to reasonably 

evaluate the validity of the exemption. 

(e) If you own or operate engines/ 

equipment we exempt under this 

subpart, we may require you to provide 

information as needed to reasonably 

evaluate the validity of the exemption. 

(f) Subpart D of this part describes 

how we apply these exemptions to 

engines/equipment you import (or 

intend to import). 

(g) If you want to ask for an 

exemption or need more information, 

write to the Designated Officer. 

(h) You may ask us to modify the 

administrative requirements for the 

exemptions described in this subpart. 

We may approve your request if we 

determine that such approval is 

consistent with the intent of this part. 

For example, waivable administrative 

requirements might include some 

reporting requirements, but would not 

include any eligibility requirements or 

use restrictions. 

(i) If you want to take an action with 

respect to an exempted or excluded 

engine/equipment that is prohibited by 

the exemption or exclusion, such as 

selling it, you need to certify the engine/ 

equipment. We will issue a certificate of 

conformity if you send us an application 

for certification showing that you meet 

all the applicable requirements from the 

standard-setting part and pay the 

appropriate fee. Also, in some cases, we 

may allow manufacturers to modify the 

engines/equipment as needed to make it 

identical to engines/equipment already 

covered by a certificate. We would base 

such an approval on our review of any 

appropriate documentation. These 

engines/equipment must have emission 

control information labels that 

accurately describe their status. 

151. Section 1068.210 is revised to 

read as follows: 

§ 1068.210 What are the provisions for 

exempting test engines/equipment? 

(a) We may exempt engines/ 

equipment that are not exempted under 

other sections of this part that you will 

use for research, investigations, studies, 

demonstrations, or training. 

(b) Anyone may ask for a testing 

exemption. 

(c) If you are a certificate holder, you 

may request an exemption for engines/ 

equipment you intend to include in test 

programs over a two-year period. 

(1) In your request, tell us the 

maximum number of engines/ 

equipment involved and describe how 

you will make sure exempted engines/ 

equipment are used only for this testing. 

(2) Give us the information described 

in paragraph (d) of this section if we ask 

for it. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28377 

(d) If you are not a certificate holder 

do all of the following: 

(1) Show that the proposed test 

program has a valid purpose under 

paragraph (a) of this section. 

(2) Show you need an exemption to 

achieve the purpose of the test program 

(time constraints may be a basis for 

needing an exemption, but the cost of 

certification alone is not). 

(3) Estimate the duration of the 

proposed test program and the number 

of engines/equipment involved. 

(4) Allow us to monitor the testing. 

(5) Describe how you will ensure that 

you stay within this exemption’s 

purposes. Address at least the following 

things: 

(i) The technical nature of the test. 

(ii) The test site. 

(iii) The duration and accumulated 

engine/equipment operation associated 

with the test. 

(iv) Ownership and control of the 

engines/equipment involved in the test. 

(v) The intended final disposition of 

the engines/equipment. 

(vi) How you will identify, record, 

and make available the engine/ 

equipment identification numbers. 

(vii) The means or procedure for 

recording test results. 

(e) If we approve your request for a 

testing exemption, we will send you a 

letter or a memorandum for your 

signature describing the basis and scope 

of the exemption. The exemption does 

not take effect until we receive the 

signed letter or memorandum from you. 

It will also include any necessary terms 

and conditions, which normally require 

you to do the following: 

(1) Stay within the scope of the 

exemption. 

(2) Create and maintain adequate 

records that we may inspect. 

(3) Add a permanent, legible label, 

written in English, to a readily visible 

part of all exempted engines/equipment. 

This label must include at least the 

following items: 

(i) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(ii) Your corporate name and 

trademark. 

(iii) Engine displacement, family 

identification, and model year of the 

engine/equipment (as applicable); or 

whom to contact for further information. 

(iv) One of these statements (as 

applicable) 

(A) ‘‘THIS ENGINE IS EXEMPT 

UNDER 40 CFR 1068.210 OR 1068.215 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(B) ‘‘THIS EQUIPMENT IS EXEMPT 

UNDER 40 CFR 1068.210 OR 1068.215 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(4) Tell us when the test program is 

finished. 

(5) Tell us the final disposition of the 

engines/equipment. 

(6) Send us a written confirmation 

that you meet the terms and conditions 

of this exemption. 

152. Section 1068.215 is revised to 

read as follows: 

§ 1068.215 What are the provisions for 

exempting manufacturer-owned engines/ 

equipment? 

(a) You are eligible for the exemption 

for manufacturer-owned engines/ 

equipment only if you are a certificate 

holder. 

(b) Engines/equipment may be exempt 

without a request if they are 

nonconforming engines/equipment 

under your ownership and control and 

you operate them to develop products, 

assess production methods, or promote 

your engines/equipment in the 

marketplace. You may not loan, lease, 

sell, or use the engine/equipment to 

generate revenue, either by itself or for 

an engine installed in a piece of 

equipment. 

(c) To use this exemption, you must 

do three things: 

(1) Establish, maintain, and keep 

adequately organized and indexed 

information on all exempted engines/ 

equipment, including the engine/ 

equipment identification number, the 

use of the engine/equipment on exempt 

status, and the final disposition of any 

engine/equipment removed from 

exempt status. 

(2) Let us access these records, as 

described in § 1068.20. 

(3) Add a permanent, legible label, 

written in English, to a readily visible 

part of all exempted engines/equipment. 

This label must include at least the 

following items: 

(i) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(ii) Your corporate name and 

trademark. 

(iii) Engine displacement, family 

identification, and model year of the 

engine/equipment (as applicable); or 

whom to contact for further information. 

(iv) One of these statements (as 

applicable) 

(A) ‘‘THIS ENGINE IS EXEMPT 

UNDER 40 CFR 1068.210 OR 1068.215 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(B) ‘‘THIS EQUIPMENT IS EXEMPT 

UNDER 40 CFR 1068.210 OR 1068.215 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

153. Section 1068.220 is revised to 

read as follows: 

§ 1068.220 What are the provisions for 

exempting display engines/equipment? 

(a) Anyone may request an exemption 

for display engines/equipment. 

(b) Nonconforming display engines/ 

equipment will be exempted if they are 

used only for displays in the interest of 

a business or the general public. This 

exemption does not apply to engines/ 

equipment displayed for private use, 

private collections, or any other purpose 

we determine is inappropriate for a 

display exemption. 

(c) You may operate the exempted 

engine/equipment, but only if we 

approve specific operation that is part of 

the display. 

(d) You may sell or lease the 

exempted engine/equipment only with 

our advance approval; you may not use 

it to generate revenue. 

(e) To use this exemption, you must 

add a permanent, legible label, written 

in English, to a readily visible part of all 

exempted engines/equipment. This 

label must include at least the following 

items: 

(1) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) Engine displacement, family 

identification, and model year of the 

engine/equipment, (as applicable) or 

whom to contact for further information. 

(4) One of these statements (as 

applicable): 

(i) ‘‘THIS ENGINE IS EXEMPT 

UNDER 40 CFR 1068.220 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(ii) ‘‘THIS EQUIPMENT IS EXEMPT 

UNDER 40 CFR 1068.220 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(f) We may set other conditions for 

approval of this exemption. 

154. Section 1068.225 is revised to 

read as follows: 

§ 1068.225 What are the provisions for 

exempting engines/equipment for national 

security? 

(a) You are eligible for the exemption 

for national security only if you are a 

manufacturer. 

(b) Your engine/equipment is exempt 

without a request if it will be used or 

owned by an agency of the federal 

government responsible for national 

defense, where the equipment has 

armor, permanently attached weaponry, 

or other substantial features typical of 

military combat. 

(c) You may request a national 

security exemption for engines/ 

equipment not meeting the conditions 

of paragraph (b) of this section, as long 

as your request is endorsed by an 


sroberts on PROD1PC70 with PROPOSALS
28378 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

agency of the federal government 

responsible for national defense. In your 

request, explain why you need the 

exemption. 

(d) Add a legible label, written in 

English, to all engines/equipment 

exempted under this section. The label 

must be permanently secured to a 

readily visible part of the engine/ 

equipment needed for normal operation 

and not normally requiring replacement, 

such as the engine block. This label 

must include at least the following 

items: 

(1) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) Engine displacement, family 

identification, and model year of the 

engine/equipment, (as applicable), or 

whom to contact for further information. 

(4) One of these statements (as 

applicable): 

(i) ‘‘THIS ENGINE HAS AN 

EXEMPTION FOR NATIONAL 

SECURITY UNDER 40 CFR 1068.225.’’. 

(ii) ‘‘THIS EQUIPMENT HAS AN 

EXEMPTION FOR NATIONAL 

SECURITY UNDER 40 CFR 1068.225.’’. 

155. Section 1068.230 is revised to 

read as follows: 

§ 1068.230 What are the provisions for 

exempting engines/equipment for export? 

(a) If you export a new engine or new 

piece of equipment to a country with 

emission standards identical to ours, we 

will not exempt it. These engines/ 

equipment must comply with our 

certification requirements. 

(b) If you export engines/equipment to 

a country with different emission 

standards or no emission standards, 

they are exempt from the prohibited acts 

in this part without a request. If you 

produce exempt engines/equipment for 

export and any are sold or offered for 

sale to someone in the United States 

(except for export), we will void the 

exemption. 

(c) Label all exempted engines/ 

equipment and shipping containers 

with a label or tag showing the engines/ 

equipment are not certified for sale or 

use in the United States. These labels 

need not be permanently attached to the 

engines/equipment. The label must 

include at least one of these statements 

(as applicable): 

(1) ‘‘THIS ENGINE IS SOLELY FOR 

EXPORT AND IS THEREFORE EXEMPT 

UNDER 40 CFR 1068.230 FROM U.S. 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(2) ‘‘THIS EQUIPMENT IS SOLELY 

FOR EXPORT AND IS THEREFORE 

EXEMPT UNDER 40 CFR 1068.230 

FROM U.S. EMISSION STANDARDS 

AND RELATED REQUIREMENTS.’’. 

156. Section 1068.235 is revised to 

read as follows: 

§ 1068.235 What are the provisions for 

exempting engines/equipment used solely 

for competition? 

(a) New engines/equipment you 

produce that are used solely for 

competition are generally excluded from 

emission standards. See the standardsetting parts for specific provisions 

where applicable. 

(b) If you modify any engines/ 

equipment after they have been placed 

into service in the United States so they 

will be used solely for competition, they 

are exempt without request. This 

exemption applies only to the 

prohibition in § 1068.101(b)(1) and is 

valid only as long as the engine/ 

equipment is used solely for 

competition. 

(c) If you modify any engines/ 

equipment under paragraph (b) of this 

section, you must destroy the original 

emission labels. If you loan, lease, sell, 

or give any of these engines/equipment 

to someone else, you must tell the new 

owner (or operator, if applicable) in 

writing that they may be used only for 

competition. 

157. Section 1068.240 is amended by 

revising paragraphs (a), (b)(2), (b)(5), 

and (e) and adding paragraph (f) to read 

as follows: 

§ 1068.240 What are the provisions for 

exempting new replacement engines? 

(a) You are eligible for the exemption 

for new replacement engines only if you 

are a certificate holder. Note that this 

exemption does not apply for 

locomotives (40 CFR 1033.601) and that 

unique provisions apply to marine 

compression-ignition engines (40 CFR 

1042.615). 

(b) * * * 

(2) The engine being replaced was not 

originally subject to emission standards, 

or was originally subject to less 

stringent emission standards than those 

that would otherwise apply to the new 

engine. 

* * * * * 

(5) You make the replacement engine 

in a configuration identical in all 

material respects to the engine being 

replaced (or that of another certified 

engine of the same or later model year) 

and meet all the requirements of 

§ 1068.265. This requirement applies 

only if the old engine was subject to 

emission standards less stringent than 

those in effect when you produce the 

replacement engine. 

* * * * * 

(e) Replacement engines exempted 

under this section may not generate or 

use emission credits under the standardsetting part, nor be part of any 

associated credit calculations. 

(f) The provisions of this section may 

not be used to circumvent emission 

standards that apply to new engines 

under the standard-setting part. 

158. Section 1068.245 is amended by 

revising paragraphs (a) and (f) to read as 

follows: 

§ 1068.245 What temporary provisions 

address hardship due to unusual 

circumstances? 

(a) After considering the 

circumstances, we may permit you to 

introduce into U.S. commerce engines/ 

equipment that do not comply with 

emission-related requirements for a 

limited time if all the following 

conditions apply: 

(1) Unusual circumstances that are 

clearly outside your control and that 

could not have been avoided with 

reasonable discretion prevent you from 

meeting requirements from this chapter. 

(2) You exercised prudent planning 

and were not able to avoid the violation; 

you have taken all reasonable steps to 

minimize the extent of the 

nonconformity. 

(3) Not having the exemption will 

jeopardize the solvency of your 

company. 

(4) No other allowances are available 

under the regulations in this chapter to 

avoid the impending violation, 

including the provisions of § 1068.250. 

* * * * * 

(f) Add a permanent, legible label, 

written in English, to a readily visible 

part of all engines/equipment exempted 

under this section. This label must 

include at least the following items: 

(1) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) Engine displacement (in liters), 

rated power, and model year of the 

engine/equipment, (as applicable) or 

whom to contact for further information. 

(4) One of the following statements: 

(i) If the engine/equipment does not 

meet any emission standards: 

(A) ‘‘THIS ENGINE IS EXEMPT 

UNDER 40 CFR 1068.245 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’; or 

(B) ‘‘THIS EQUIPMENT IS EXEMPT 

UNDER 40 CFR 1068.245 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(ii) If the engines/equipment meet 

alternate emission standards as a 

condition of an exemption under this 

section, we may specify a different 

statement to identify the alternate 

emission standards. 

159. Section 1068.250 is amended by 

revising the section heading and 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28379 

paragraphs (b), (c)(1)(i), (d)(5), (j), and 

(k) to read as follows: 

§ 1068.250 What are the provisions for 

extending compliance deadlines for small 

businesses under hardship? 

* * * * * 

(b) To be eligible for this exemption, 

you must be a small business. 

(c) * * * 

(1) * * * 

(i) In the case of importers of engines/ 

equipment produced by other 

companies, show that you attempted to 

find a manufacturer capable of 

supplying complying products as soon 

as you became aware of the applicable 

requirements, but were unable to do so. 

* * * * * 

(d) * * * 

(5) Identify the level of compliance 

you can achieve. For example, you may 

be able to produce engines/equipment 

that meet a somewhat less stringent 

emission standard than the regulations 

in this chapter require. 

* * * * * 

(j) We may approve extensions of the 

compliance deadlines as reasonable 

under the circumstances up to one 

model year at a time, and up to three 

years total. 

(k) Add a permanent, legible label, 

written in English, to a readily visible 

part of all engines/equipment exempted 

under this section. This label must 

include at least the following items: 

(1) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Your corporate name and 

trademark. 

(3) Engine displacement (in liters), 

rated power, and model year of the 

engine/equipment or whom to contact 

for further information. 

(4) One of the following statements: 

(i) If the engine/equipment does not 

meet any emission standards: 

(A) ‘‘THIS ENGINE IS EXEMPT 

UNDER 40 CFR 1068.250 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’, or 

(B) ‘‘THIS EQUIPMENT IS EXEMPT 

UNDER 40 CFR 1068.250 FROM 

EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. 

(ii) If the engine/equipment meets 

alternate emission standards as a 

condition of an exemption under this 

section, we may specify a different 

statement to identify the alternate 

emission standards. 

160. Section 1068.255 is revised to 

read as follows: 

§ 1068.255 What are the provisions for 

exempting engines and fuel-system 

components for hardship for equipment 

manufacturers and secondary engine 

manufacturers? 

This section describes how, in 

unusual circumstances, we may approve 

an exemption to prevent hardship to an 

equipment manufacturer or a secondary 

engine manufacturer. This section does 

not apply to products that are subject to 

equipment-based exhaust emission 

standards. 

(a) Equipment exemption. As an 

equipment manufacturer, you may ask 

for approval to produce exempted 

equipment for up to 12 months. We will 

generally limit this to the first year that 

new or revised emission standards 

apply. Send the Designated Officer a 

written request for an exemption before 

you are in violation. In your request, 

you must show you are not at fault for 

the impending violation and that you 

would face serious economic hardship if 

we do not grant the exemption. This 

exemption is not available under this 

paragraph (a) if you manufacture the 

engine or fuel-system components you 

need for your own equipment or if 

complying engines or fuel-system 

components are available from other 

manufacturers that could be used in 

your equipment, unless we allow it 

elsewhere in this chapter. We may 

impose other conditions, including 

provisions to use products meeting less 

stringent emission standards or to 

recover the lost environmental benefit. 

In determining whether to grant the 

exemptions, we will consider all 

relevant factors, including the 

following: 

(1) The number of engines or fuelsystem components involved. 

(2) The size of your company and 

your ability to endure the hardship. 

(3) The amount of time you had to 

redesign your equipment to 

accommodate complying products. 

(4) Whether there was any breach of 

contract by a supplier. 

(5) The potential for market 

disruption. 

(b) Engine and fuel-system component 

exemption. As an engine manufacturer 

or fuel-system component manufacturer, 

you may produce nonconforming 

products for the equipment we exempt 

in paragraph (a) of this section. You do 

not have to request this exemption, but 

you must have written assurance from 

equipment manufacturers that they need 

a certain number of exempted products 

under this section. Label engines or 

fuel-system components as follows: 

(1) Engines. Add a permanent, legible 

label, written in English, to a readily 

visible part of each exempted engine. 

This label must include at least the 

following items: 

(i) The label heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(ii) Your corporate name and 

trademark. 

(iii) Engine displacement (in liters), 

rated power, and model year of the 

engine or whom to contact for further 

information. 

(iv) If the engine does not meet any 

emission standards: ‘‘THIS ENGINE IS 

EXEMPT UNDER 40 CFR 1068.255 

FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.’’. If the 

engine meets alternate emission 

standards as a condition of an 

exemption under this section, we may 

specify a different statement to identify 

the alternate emission standards. 

(2) Fuel-system components. Add a 

permanent, legible label, written in 

English, to a readily visible part of each 

fuel-system component exempted under 

this section. This label must 

prominently include at least the 

following items: 

(i) Your corporate name and 

trademark. 

(ii) The statement ‘‘EXEMPT UNDER 

40 CFR 1068.255.’’. 

(c) Secondary engine manufacturers. 

As a secondary engine manufacturer, 

you may ask for approval to produce 

exempted engines under this section for 

up to 12 months. We may require you 

to certify your engines to compliance 

levels above the emission standards that 

apply. For example, the in the case of 

multiple tiers of emission standards, we 

may require you to meet the standards 

from the previous tier. 

(1) The provisions in paragraph (a) of 

this section that apply to equipment 

manufacturers requesting an exemption 

apply equally to you, except that you 

may manufacture the engines. Before we 

approve an exemption under this 

section, we will generally require that 

you commit to a plan to make up the 

lost environmental benefit. 

(i) If you produce uncertified engines 

under this exemption, we will calculate 

the lost environmental benefit based on 

our best estimate of uncontrolled 

emission rates for your engines. 

(ii) If you produce engines under this 

exemption that are certified to a 

compliance level less stringent than the 

emission standards that would 

otherwise apply, we will calculate the 

lost environmental benefit based on the 

compliance level you select for your 

engines. 

(2) The labeling requirements in 

paragraph (b) of this section apply to 

your exempted engines; however, if you 

certify engines to specific compliance 


sroberts on PROD1PC70 with PROPOSALS
28380 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

levels, state on the label the compliance 

levels that apply to each engine. 

161. Section 1068.260 is revised to 

read as follows: 

§ 1068.260 What provisions apply for 

selling or shipping certified engines that are 

not yet in the certified configuration? 

The provisions of § 1068.101(a)(1) 

generally require that all new engines be 

in their certified configuration before 

being introduced into U.S. commerce. 

All emission-related components 

generally need to be installed on an 

engine for such an engine to be in its 

certified configuration. This section 

specifies exceptions to these 

requirements for engines. This section 

does not apply to equipment subject to 

equipment-based standards. (Note: See 

§ 1068.262 for provisions related to 

manufacturers introducing into U.S. 

commerce partially complete engines 

for which someone else holds the 

certificate of conformity.) 

(a) Shipping an engine separately 

from an aftertreatment component that 

you have specified as part of its certified 

configuration will not be a violation of 

the prohibitions in § 1068.101(a)(1) if 

you follow the provisions of paragraph 

(b) or (c) of this section. Note that the 

standard-setting parts allows this 

exemption for delegated final assembly 

only for the following engines: 

(1) Stationary compression-ignition 

engines (see 40 CFR part 60, subpart 

IIII). 

(2) Stationary spark-ignition engines 

(see 40 CFR part 60, subpart JJJJ). 

(3) Land-based nonroad compressionignition engines (see 40 CFR part 1039). 

(4) Marine spark-ignition engines (see 

40 CFR part 1045). 

(5) Marine compression-ignition 

engines (see 40 CFR part 1042). 

(6) Large nonroad spark-ignition 

engines (see 40 CFR part 1048). 

(b) If you do not manufacture the 

equipment in which the engine will be 

installed, you must meet all the 

following conditions to ship engines 

without aftertreatment components 

specified in your application for 

certification: 

(1) Apply for and receive a certificate 

of conformity for the engine and its 

emission control system before 

shipment. 

(2) Provide installation instructions in 

enough detail to ensure that the engine 

will be in its certified configuration if 

someone follows these instructions. 

(3) Have a contractual agreement with 

each equipment manufacturer obligating 

the equipment manufacturer to 

complete the final assembly of the 

engine so it is in its certified 

configuration when installed in the 

equipment. This agreement must also 

obligate the equipment manufacturer to 

provide the affidavits and cooperate 

with the audits required under 

paragraph (b)(6) of this section. 

(4) Include the cost of all 

aftertreatment components in the cost of 

the engine. For purposes of importation, 

you may itemize your invoice to 

separately identify the cost of 

aftertreatment components that will be 

shipped separately. A copy of your 

invoice from the aftertreatment 

manufacturer may be needed to avoid 

payment of importation duties that 

include the value of aftertreatment 

components. 

(5) Ship the aftertreatment 

components directly to the equipment 

manufacturer, or arrange for separate 

shipment by the component 

manufacturer to the equipment 

manufacturer. 

(6) Take appropriate additional steps 

to ensure that all engines will be in their 

certified configuration when installed 

by the equipment manufacturer. At a 

minimum do the following: 

(i) Obtain annual affidavits from every 

equipment manufacturer to whom you 

sell engines under this section. Include 

engines that you sell through 

distributors or dealers. The affidavits 

must list the part numbers of the 

aftertreatment devices that equipment 

manufacturers install on each engine 

they purchase from you under this 

section. 

(ii) If you sell engines to 16 or more 

equipment manufacturers under the 

provisions of this section, you must 

annually audit four equipment 

manufacturers to whom you sell engines 

under this section. To select individual 

equipment manufacturers, divide all the 

affected equipment manufacturers into 

quartiles based on the number of 

engines they buy from you; select a 

single equipment manufacturer from 

each quartile each model year. Vary the 

equipment manufacturers you audit 

from year to year, though you may 

repeat an audit in a later model year if 

you find or suspect that a particular 

equipment manufacturer is not properly 

installing aftertreatment devices. If you 

sell engines to fewer than 16 equipment 

manufacturers under the provisions of 

this section, you may instead set up a 

plan to audit each equipment 

manufacturer on average once every 

four model years. Audits must involve 

the assembling companies’ facilities, 

procedures, and production records to 

monitor their compliance with your 

instructions, must include investigation 

of some assembled engines, and must 

confirm that the number of 

aftertreatment devices shipped were 

sufficient for the number of engines 

produced. You must keep records of 

these audits for five years after the end 

of the model year and provide a report 

to us describing any uninstalled or 

improperly installed aftertreatment 

components. Send us these reports 

within 90 days of the audit, except as 

specified in paragraph (e) of this 

section. 

(iii) If you sell engines to fewer than 

16 equipment manufacturers under the 

provisions of this section, you must 

conduct audits as described in 

paragraph (b)(6)(ii) of this section or 

propose an alternative plan for ensuring 

that equipment manufacturers properly 

install aftertreatment devices. 

(7) Describe the following things in 

your application for certification: 

(i) How you plan to use the provisions 

of this section. 

(ii) A detailed plan for auditing 

equipment manufacturers, as described 

in paragraph (b)(6) of this section. 

(iii) All other steps you plan to take 

under paragraph (b)(6) of this section. 

(8) Keep records to document how 

many engines you produce under this 

exemption. Also, keep records to 

document your contractual agreements 

under paragraph (b)(3) of this section. 

Keep all these records for five years after 

the end of the model year and make 

them available to us upon request. 

(9) Make sure the engine has the 

emission control information label we 

require under the standard-setting part. 

Apply an additional temporary label or 

tag in a way that makes it unlikely that 

the engine will be installed in 

equipment other than in its certified 

configuration. The label or tag must 

identify the engine as incomplete and 

include a clear statement that failing to 

install the aftertreatment device, or 

otherwise bring the engine into its 

certified configuration, is a violation of 

federal law subject to civil penalty. 

(10) You must keep a supply of 

aftertreatment devices available at your 

production facility so you can test 

production-line engines as specified in 

the standard-setting part or in subpart E 

of this part. Use a new catalyst with 

each tested engine, following the 

specified procedures for stabilizing 

emission levels. Keep records showing 

how you randomly selected these 

catalysts, consistent with applicable 

requirements. 

(c) If you manufacture engines and 

install them in equipment you also 

produce, you must take steps to ensure 

that your facilities, procedures, and 

production records are set up to ensure 

that equipment and engines are 

assembled in their proper certified 

configurations. You may demonstrate 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28381 

compliance with this requirement by 

maintaining a database showing how 

you pair aftertreatment components 

with the appropriate engines. 

(d) Once the equipment manufacturer 

takes possession of an engine exempted 

under this section and the engine 

reaches the point of final equipment 

assembly, the exemption expires and 

the engine is subject to all the 

prohibitions in § 1068.101. 

(e) You must notify us within 15 days 

if you find from an audit or another 

source that an equipment manufacturer 

has failed to meet its obligations under 

this section. 

(f) We may suspend, revoke, or void 

an exemption under this section, as 

follows: 

(1) We may suspend or revoke your 

exemption for the entire family if we 

determine that any of the engines are 

not in their certified configuration after 

installation in the equipment, or if you 

fail to comply with the requirements of 

this section. If we suspend or revoke the 

exemption for any of your families 

under this paragraph (f), this exemption 

will not apply for future certificates 

unless you demonstrate that the factors 

causing the nonconformity do not apply 

to the other families. We may suspend 

or revoke the exemption for shipments 

to a single facility where final assembly 

occurs. 

(2) We may void your exemption for 

the entire family if you intentionally 

submit false or incomplete information 

or fail to keep and provide to EPA the 

records required by this section. We 

may suspend, revoke, or void an 

exemption under this section, as 

follows: 

(g) You are liable for the in-use 

compliance of any engine that is exempt 

under this section. 

(h) It is a violation of the Act for any 

person to introduce into U.S. commerce 

a previously exempted engine, 

including as part of a piece of 

equipment, without complying fully 

with the installation instructions. 

(i) [Reserved] 

(j) In certain circumstances you may 

ship engines with emission-related 

components that are not yet assembled 

to the engine. This allowance is limited 

to situations where the final assembly 

depends on equipment design 

parameters and we determine that 

shipment of the fully assembled engine 

is impractical. For example, you may 

generally ship aftertreatment devices 

along with engines rather than installing 

them on the engine before shipment. 

You do not need an exemption to ship 

an engine under this paragraph (j). 

(k) You do not need an exemption to 

ship engines without specific 

components if they are not emissionrelated components identified in 

Appendix I of this part. For example, 

you may generally ship engines without 

radiators needed to cool the engine. You 

may ask us at the time of certification 

to allow you to ship your engines 

without other equipment-related 

components (such as a vehicle speed 

sensor) that are described in your 

application for certification. If we allow 

it, we may specify conditions that we 

determine are needed to ensure that 

shipping the engine without such 

components will not result in the engine 

being operated outside of its certified 

configuration. 

(l) You may ask us to provide a 

temporary exemption to allow you to 

complete production of your engines at 

different facilities, as long as you 

maintain control of the engines until 

they are in their certified configuration. 

We may require you to take specific 

steps to ensure that such engines are in 

their certified configuration before 

reaching the ultimate purchaser. You 

may request an exemption under this 

paragraph (l) in your application for 

certification, or in a separate submission 

to the Designated Compliance Officer. 

162. A new § 1068.262 is added to 

read as follows: 

§ 1068.262 What are the provisions for 

temporarily exempting engines for 

shipment to secondary engine 

manufacturers? 

Except as specified in paragraph (f) of 

this section, all new engines in the 

United States are presumed to be subject 

to the prohibitions of § 1068.101. This 

section specifies when manufacturers 

may introduce into U.S. commerce 

partially complete engines that have a 

certificate of conformity held by a 

secondary engine manufacturer and are 

not yet in their certified configuration. 

(Note: See § 1068.260 for provisions 

related to manufacturers introducing 

into U.S. commerce partially complete 

engines for which they hold the 

certificate of conformity.) This 

exemption is temporary, as described in 

paragraph (e) of this section. 

(a) Manufacturers may introduce into 

U.S. commerce partially complete 

engines as described in this section if 

they have a written request for such 

engines from a secondary manufacturer 

that has certified the engine and will 

finish the engine assembly. The original 

engine manufacturer must apply a 

temporary label to each engine to make 

clear that the engine is not yet in its 

certified configuration. The temporary 

label must include the corporate names 

of both the original and certifying 

manufacturers and the engine family 

name for the engine. The original engine 

manufacturer may not apply a 

permanent emission control information 

label identifying the engine’s eventual 

certification status. 

(b) The provisions of this section 

apply only where the secondary engine 

manufacturer has substantial control 

over the design and assembly of 

emission controls. In determining 

whether a manufacturer has substantial 

control over the design and assembly of 

emission controls, we would consider 

the degree to which the secondary 

manufacturer would be able to ensure 

that the engine will conform to the 

regulations in its final configuration. 

Such secondary manufacturers may 

finish assembly of partially complete 

engines in the following cases: 

(1) You obtain an engine that is not 

fully assembled, with the intent to 

manufacture a complete engine. 

(2) You obtain an engine with the 

intent to modify it before it reaches the 

ultimate purchaser. 

(3) You obtain an engine with the 

intent to install it in equipment that will 

be subject to equipment-based 

standards. 

(c) The manufacturer that will hold 

the certificate must include the 

following information in its application 

for certification: 

(1) Identify the original engine 

manufacturer of the partially complete 

engine or of the complete engine you 

will modify. 

(2) Describe briefly how and where 

final assembly will be completed. 

Specify how you have the ability to 

ensure that the engines will conform to 

the regulations in their final 

configuration. (Note: Paragraph (b) of 

this section prohibits using the 

provisions of this section unless you 

have substantial control over the design 

and assembly of emission controls.) 

(3) State unconditionally that the 

engines will comply with all applicable 

regulations in their final configuration. 

(d) [Reserved] 

(e) These provisions are intended only 

to allow you to obtain engines in the 

specific circumstances identified in this 

section, so any exemption under this 

section expires when you complete the 

assembly of the engine/equipment in its 

final configuration. 

(f) Reduced-scale hobby engines are 

not presumed to be engines subject to 

the prohibitions of § 1068.101. Hobby 

engines are compression-ignition 

engines with a per-cylinder 

displacement of less than 50 cubic 

centimeters or spark-ignition engines 

installed in reduced-scale models of 

vehicles that are not capable of 

transporting a person. Other engines 


sroberts on PROD1PC70 with PROPOSALS
28382 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

that do not have a valid certificate of 

conformity or exemption when 

introduced into U.S. commerce are 

presumed to be engines subject to the 

prohibitions of § 1068.101 unless we 

determine that such engines are 

excluded from the prohibitions of 

§ 1068.101. 

(g) For purposes of this section, an 

allowance to introduce engines into U.S. 

commerce includes a conditional 

allowance to sell, introduce, or deliver 

such partially complete engines into 

commerce in the United States or 

import them into the United States. It 

does not include a general allowance to 

offer such partially complete engines for 

sale because this exemption is intended 

to apply only for cases in which the 

certificate holder already has an 

arrangement to purchase the engines 

from the original engine manufacturer. 

This exemption does not allow the 

original engine manufacturer to 

subsequently offer the engines for sale 

to a different manufacturer who will 

hold the certificate unless that second 

manufacturer has also complied with 

the requirements of this part. 

(h) No exemption is needed to import 

equipment that does not include an 

engine. No exemption is available under 

this section for equipment subject to 

equipment-based standards if the engine 

has been installed. 

163. Section 1068.265 is revised to 

read as follows: 

§ 1068.265 What provisions apply to 

engines/equipment that are conditionally 

exempted from certification? 

Engines produced under an 

exemption for replacement engines 

(§ 1068.240) or engines/equipment 

produced under an exemption for 

hardship (§ 1068.245, § 1068.250, or 

§ 1068.255) may need to meet alternate 

emission standards as a condition of the 

exemption. The standard-setting part 

may similarly exempt engines/ 

equipment from all certification 

requirements, or allow us to exempt 

engines/equipment from all certification 

requirements for certain cases, but 

require the engines/equipment to meet 

alternate standards. In these cases, all 

the following provisions apply: 

(a) Your engines/equipment must 

meet the alternate standards we specify 

in (or pursuant to) the exemption 

section, and all other requirements 

applicable to engines/equipment that 

are subject to such standards. 

(b) You need not apply for and receive 

a certificate for the exempt engines/ 

equipment. However, you must comply 

with all the requirements and 

obligations that would apply to the 

engines/equipment if you had received 

a certificate of conformity for them, 

unless we specifically waive certain 

requirements. 

(c) You must have emission data from 

test engines/equipment using the 

appropriate procedures that 

demonstrate compliance with the 

alternate standards, unless the engines/ 

equipment are identical in all material 

respects to engines/equipment that you 

have previously certified to standards 

that are the same as, or more stringent 

than, the alternate standards. 

(d) Unless we specify otherwise 

elsewhere in the standard-setting part, 

you must meet the labeling 

requirements in the standard-setting 

part, with the following exceptions: 

(1) Modify the family designation by 

eliminating the character that identifies 

the model year. 

(2) See the provisions of the 

applicable exemption for appropriate 

language to replace the compliance 

statement otherwise required in the 

standard-setting part. 

(e) You may not generate emission 

credits for averaging, banking, or trading 

with engines/equipment meeting 

requirements under the provisions of 

this section. 

(f) Keep records to show that you 

meet the alternate standards, as follows: 

(1) If your exempted engines/ 

equipment are identical to previously 

certified engines/equipment, keep your 

most recent application for certification 

for the certified family. 

(2) If you previously certified a 

similar family, but have modified the 

exempted engines/equipment in a way 

that changes them from their previously 

certified configuration, keep your most 

recent application for certification for 

the certified family, a description of the 

relevant changes, and any test data or 

engineering evaluations that support 

your conclusions. 

(3) If you have not previously certified 

a similar family, keep all the records we 

specify for the application for 

certification and any additional records 

the standard-setting part requires you to 

keep. 

(g) We may require you to send us an 

annual report of the engines/equipment 

you produce under this section. 

Subpart D—Amended] 

164. Section 1068.301 is revised to 

read as follows: 

§ 1068.301 What general provisions apply? 

(a) This subpart applies to you if you 

import into the United States engines or 

equipment subject to our emission 

standards or equipment containing 

engines subject to our emission 

standards. 

(b) In general, engines/equipment that 

you import must be covered by a 

certificate of conformity unless they 

were built before emission standards 

started to apply. This subpart describes 

the limited cases where we allow 

importation of exempt or excluded 

engines/equipment. For equipment not 

subject to equipment-based exhaust 

emission standards, an exemption of the 

engine allows you to import the 

equipment. 

(c) The U.S. Customs Service may 

prevent you from importing engines or 

equipment if you do not meet the 

requirements of this subpart. In 

addition, U.S. Customs Service 

regulations may contain other 

requirements for engines/equipment 

imported into the United States (see 19 

CFR Chapter I). 

(d) Complete the appropriate EPA 

declaration form before importing any 

engines or equipment. These forms are 

available on the Internet at http:// 

www.epa.gov/otaq/imports or by phone 

at 734–214–4100. Importers must keep 

the forms for five years and make them 

available promptly upon request. 

165. Section 1068.305 is revised to 

read as follows: 

§ 1068.305 How do I get an exemption or 

exclusion for imported engines/equipment? 

(a) You must meet the requirements of 

the specific exemption or exclusion you 

intend to use and complete the 

appropriate declaration form described 

in § 1068.301(d). 

(b) If we ask for it, prepare a written 

request in which you do the following: 

(1) Give your name, address, 

telephone number, and taxpayer 

identification number. 

(2) Give the engine/equipment 

owner’s name, address, telephone 

number, and taxpayer identification 

number. 

(3) Identify the make, model, 

identification number, and original 

production year of all engines/ 

equipment. 

(4) Identify which exemption or 

exclusion in this subpart allows you to 

import nonconforming engines/ 

equipment and describe how your 

engine/equipment qualifies. 

(5) Tell us where you will keep your 

engines/equipment if you might need to 

store them until we approve your 

request. 

(6) Authorize us to inspect or test 

your engines/equipment as the Act 

allows. 

(c) We may ask for more information. 

(d) You may import the 

nonconforming engines/equipment you 

identify in your request if you get prior 

written approval from us. The U.S. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28383 

Customs Service may require you to 

show them the approval letter. We may 

temporarily or permanently approve the 

exemptions or exclusions, as described 

in this subpart. 

(e) Meet the requirements specified 

for the appropriate exemption in this 

part or the standard-setting part, 

including any labeling requirements 

that apply. 

166. Section 1068.310 is revised to 

read as follows: 

§ 1068.310 What are the exclusions for 

imported engines/equipment? 

If you show us that your engines/ 

equipment qualify under one of the 

paragraphs of this section, we will 

approve your request to import such 

excluded engines/equipment. You must 

have our approval before importing 

engines/equipment under paragraph (a) 

of this section. You may, but are not 

required to request our approval to 

import the engines/equipment under 

paragraph (b) or (c) of this section. The 

following engines/equipment are 

excluded: 

(a) Engines/equipment used solely for 

competition. Engines/equipment that 

you demonstrate will be used solely for 

competition are excluded from the 

restrictions on imports in § 1068.301(b), 

but only if they are properly labeled. 

See the standard-setting part for 

provisions related to this demonstration. 

Section 1068.101(b)(4) prohibits anyone 

from using these excluded engines/ 

equipment for purposes other than 

competition. 

(b) Stationary engines. The definition 

of nonroad engine in § 1068.30 does not 

include certain engines used in 

stationary applications. Such engines 

(and equipment containing such 

engines) may be subject to the standards 

of 40 CFR part 60. Engines that are 

excluded from the definition of nonroad 

engine in this part and are not required 

to be certified to standards under 40 

CFR part 60 are not subject to the 

restrictions on imports in § 1068.301(b), 

but only if they are properly labeled and 

there is clear and convincing evidence 

that each engine will be used in a 

stationary application (see paragraph 

(2)(iii) of the definition of ‘‘Nonroad 

engine’’). Section 1068.101 restricts the 

use of stationary engines for nonstationary purposes, unless they are 

certified under 40 CFR part 60 to the 

same standards that would apply to 

nonroad engines for the same model 

year. 

(c) Other engines/equipment. The 

standard-setting parts may exclude 

engines/equipment used in certain 

applications. For example, engines used 

in aircraft and very small engines used 

in hobby vehicles are generally 

excluded. Engines/equipment used in 

underground mining are excluded if 

they are regulated by the Mine Safety 

and Health Administration. 

167. Section 1068.315 is revised to 

read as follows: 

§ 1068.315 What are the permanent 

exemptions for imported engines/ 

equipment? 

We may approve a permanent 

exemption from the restrictions on 

imports under § 1068.301(b) under the 

following conditions: 

(a) National security exemption. You 

may import an engine or piece of 

equipment under the national security 

exemption in § 1068.225, but only if it 

is properly labeled. 

(b) Manufacturer-owned engine/ 

equipment exemption. You may import 

manufacturer-owned engines/ 

equipment, as described in § 1068.215. 

(c) Replacement engine exemption. 

You may import a nonconforming 

replacement engine as described in 

§ 1068.240. To use this exemption, you 

must be a certificate holder for a family 

we regulate under the same part as the 

replacement engine. 

(d) Extraordinary circumstances 

exemption. You may import a 

nonconforming engine or piece of 

equipment if we grant hardship relief as 

described in § 1068.245. 

(e) Small-volume manufacturer 

exemption. You may import a 

nonconforming engine or piece of 

equipment if we grant hardship relief 

for a small-volume manufacturer, as 

described in § 1068.250. 

(f) Equipment-manufacturer hardship 

exemption. You may import a 

nonconforming engine if we grant an 

exemption for the transition to new or 

revised emission standards, as described 

in § 1068.255. 

(g) [Reserved] 

(h) Identical configuration exemption. 

Unless specified otherwise in the 

standard-setting part, you may import 

nonconforming engines/equipment if 

they are identical to certified engines/ 

equipment produced by the same 

manufacturer, subject to the following 

provisions: 

(1) You must meet all the following 

criteria: 

(i) You have owned the engines/ 

equipment for at least six months. 

(ii) You agree not to sell, lease, 

donate, trade, or otherwise transfer 

ownership of the engines/equipment for 

at least five years. During this period, 

the only acceptable way to dispose of 

the engines/equipment is to destroy or 

export them. 

(iii) You use data or evidence 

sufficient to show that the engines/ 

equipment are in a configuration that is 

identical to engines/equipment the 

original manufacturer has certified to 

meet emission standards that apply at 

the time the manufacturer finished 

assembling or modifying the engines/ 

equipment in question. If you modify 

the engines/equipment to make them 

identical, you must completely follow 

the original manufacturer’s written 

instructions. 

(2) We will tell you in writing if we 

find the information insufficient to 

show that the engines/equipment are 

eligible for this exemption. In this case, 

we will not consider your request 

further until you address our concerns. 

(i) Ancient engine/equipment 

exemption. If you are not the original 

engine/equipment manufacturer, you 

may import nonconforming engines/ 

equipment that are subject to a 

standard-setting part and were first 

manufactured at least 21 years earlier, as 

long as they are still in their original 

configurations. 

168. Section 1068.320 is revised to 

read as follows: 

§ 1068.320 How must I label imported 

engines/equipment with an exclusion or a 

permanent exemption? 

(a) For engines/equipment imported 

under § 1068.310(a) or (b), you must 

place a permanent label or tag on all 

engines/equipment. If no specific label 

requirements in the standard-setting 

part apply for these engines/equipment, 

you must meet the following 

requirements: 

(1) Attach the label or tag in one piece 

so no one can remove it without 

destroying or defacing it. 

(2) Make sure it is durable and 

readable for the engine/equipment’s 

entire life. 

(3) Secure it to a part of the engine/ 

equipment needed for normal operation 

and not normally requiring replacement. 

(4) Write it in English. 

(5) For labels on the engine, make the 

labels readily visible to the average 

person after the engine is installed in 

the equipment. 

(b) On the engine/equipment label or 

tag, do the following: 

(1) Include the heading ‘‘EMISSION 

CONTROL INFORMATION’’. 

(2) Include your full corporate name 

and trademark. 

(3) State the engine displacement (in 

liters) and rated power. If the engine’s 

rated power is not established, state the 

approximate power rating accurately 

enough to allow a determination of 

which standards would otherwise 

apply. 

(4) State: ‘‘THIS ENGINE IS EXEMPT 

FROM THE REQUIREMENTS OF 


sroberts on PROD1PC70 with PROPOSALS
28384 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

[identify the part referenced in 

§ 1068.1(a) that would otherwise apply], 

AS PROVIDED IN [identify the 

paragraph authorizing the exemption 

(for example, ‘‘40 CFR 1068.315(a)’’)]. 

INSTALLING THIS ENGINE IN ANY 

DIFFERENT APPLICATION MAY BE A 

VIOLATION OF FEDERAL LAW 

SUBJECT TO CIVIL PENALTY.’’. 

(c) Get us to approve alternate label 

language if it is more accurate for your 

engine/equipment. 

169. Section 1068.325 is revised to 

read as follows: 

§ 1068.325 What are the temporary 

exemptions for imported engines/ 

equipment? 

You may import engines/equipment 

under certain temporary exemptions, 

subject to the conditions in this section. 

We may ask the U.S. Customs Service to 

require a specific bond amount to make 

sure you comply with the requirements 

of this subpart. You may not sell or 

lease one of these engines/equipment 

while it is in the United States. You 

must eventually export the engine/ 

equipment as we describe in this section 

unless you get a certificate of conformity 

for it or it qualifies for one of the 

permanent exemptions in § 1068.315. 

Section 1068.330 specifies an additional 

temporary exemption allowing you to 

import certain engines/equipment you 

intend to modify. 

(a) Exemption for repairs or 

alterations. You may temporarily import 

nonconforming engines/equipment 

under bond solely for repair or 

alteration. You may operate the engine/ 

equipment in the United States only as 

necessary to repair it, alter it, or ship it 

to or from the service location. Export 

the engine/equipment directly after 

servicing is complete. 

(b) Testing exemption. You may 

temporarily import nonconforming 

engines/equipment under bond for 

testing if you follow the requirements of 

§ 1068.210. You may operate the 

engines/equipment in the United States 

only as needed to perform tests. This 

exemption expires one year after you 

import the engine/equipment, unless we 

approve an extension. The engine/ 

equipment must be exported before the 

exemption expires. 

(c) Display exemption. You may 

temporarily import nonconforming 

engines/equipment under bond for 

display, as described in § 1068.220. This 

exemption expires one year after you 

import the engine/equipment, unless we 

approve your request for an extension. 

We may approve an extension of up to 

one more year for each request, but no 

more than three years in total. The 

engine/equipment must be exported by 

the time the exemption expires or 

directly after the display concludes, 

whichever comes first. 

(d) Export exemption. You may 

temporarily import nonconforming 

engines/equipment to export them, as 

described in § 1068.230. You may 

operate the engine/equipment in the 

United States only as needed to prepare 

it for export. Label the engine/ 

equipment as described in § 1068.230. 

(e) Diplomatic or military exemption. 

You may temporarily import 

nonconforming engines/equipment 

without bond if you represent a foreign 

government in a diplomatic or military 

capacity. In your request to the 

Designated Officer (see § 1068.305), 

include either written confirmation 

from the U.S. State Department that you 

qualify for this exemption or a copy of 

your orders for military duty in the 

United States. We will rely on the State 

Department or your military orders to 

determine when your diplomatic or 

military status expires, at which time 

you must export your exempt engines/ 

equipment. 

(f) Delegated-assembly exemption. 

You may import a nonconforming 

engine for final assembly under the 

provisions of § 1068.260. However, this 

does not include the staged-assembly 

provisions of § 1068.260(j). 

(g) Partially complete engine 

exemption. You may import an engine 

if another company already has a 

certificate of conformity and will be 

modifying the engine to be in its final, 

certified configuration under the 

provisions of § 1068.262. 

§ 1068.330 [Removed] 

170. Section 1068.330 is removed. 

171. Section 1068.335 is revised to 

read as follows: 

§ 1068.335 What are the penalties for 

violations? 

(a) All imported engines/equipment. 

Unless you comply with the provisions 

of this subpart, importation of 

nonconforming engines/equipment 

violates sections 203 and 213(d) of the 

Act (42 U.S.C. 7522 and 7547(d)). You 

may then have to export the engines/ 

equipment, or pay civil penalties, or 

both. The U.S. Customs Service may 

seize unlawfully imported engines and 

equipment. 

(b) Temporarily imported engines/ 

equipment. If you do not comply with 

the provisions of this subpart for a 

temporary exemption under § 1068.325 

or § 1068.330, you may forfeit the total 

amount of the bond in addition to the 

sanctions we identify in paragraph (a) of 

this section. We will consider an engine 

or piece of equipment to be exported if 

it has been destroyed or delivered to the 

U.S. Customs Service for export or other 

disposition under applicable Customs 

laws and regulations. EPA or the U.S. 

Customs Service may offer you a grace 

period to allow you to export 

temporarily exempted engines/ 

equipment without penalty after the 

exemption expires. 

Subpart E—[Amended] 

172. Section 1068.401 is revised to 

read as follows: 

§ 1068.401 What is a selective 

enforcement audit? 

(a) We may conduct or require you to 

conduct emission tests on your 

production engines/equipment in a 

selective enforcement audit. This 

requirement is independent of any 

requirement for you to routinely test 

production-line engines/equipment. For 

products subject to equipment-based 

standards, but tested using engine-based 

test procedures, this subpart applies to 

the engines and/or the equipment, as 

applicable. Otherwise this subpart 

applies to engines for products subject 

to engine-based standards and to 

equipment for products subject to 

equipment-based standards. 

(b) If we send you a signed test order, 

you must follow its directions and the 

provisions of this subpart. We may tell 

you where to test the engines/ 

equipment. This may be where you 

produce the engines/equipment or any 

other emission testing facility. 

(c) If we select one or more of your 

families for a selective enforcement 

audit, we will send the test order to the 

person who signed the application for 

certification or we will deliver it in 

person. 

(d) If we do not select a testing 

facility, notify the Designated Officer 

within one working day of receiving the 

test order where you will test your 

engines/equipment. 

(e) You must do everything we require 

in the audit without delay. 

173. Section 1068.405 is revised to 

read as follows: 

§ 1068.405 What is in a test order? 

(a) In the test order, we will specify 

the following things: 

(1) The family and configuration (if 

any) we have identified for testing. 

(2) The engine/equipment assembly 

plant, storage facility, or (if you import 

the engines/equipment) port facility 

from which you must select engines/ 

equipment. 

(3) The procedure for selecting 

engines/equipment for testing, 

including a selection rate. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28385 

(4) The test procedures, duty cycles, 

and test points, as appropriate, for 

testing the engines/equipment to show 

that they meet emission standards. 

(b) We may state that we will select 

the test engines/equipment. 

(c) We may identify alternate families 

or configurations for testing in case we 

determine the intended engines/ 

equipment are not available for testing 

or if you do not produce enough 

engines/equipment to meet the 

minimum rate for selecting test engines/ 

equipment. 

(d) We may include other directions 

or information in the test order. 

(e) We may ask you to show us that 

you meet any additional requirements 

that apply to your engines/equipment 

(closed crankcases, for example). 

(f) In anticipation of a potential audit, 

you may give us a list of your preferred 

families and the corresponding 

assembly plants, storage facilities, or (if 

you import the engines/equipment) port 

facilities from which we should select 

engines/equipment for testing. The 

information would apply only for a 

single model year, so it would be best 

to include this information in your 

application for certification. If you give 

us this list before we issue a test order, 

we will consider your 

recommendations, but we may select 

engines/equipment differently. 

(g) If you also do routine productionline testing with the selected family in 

the same time period, the test order will 

tell you what changes you might need 

to make in your production-line testing 

schedule. 

174. Section 1068.410 is revised to 

read as follows: 

§ 1068.410 How must I select and prepare 

my engines/equipment? 

(a) Selecting engines/equipment. 

Select engines/equipment as described 

in the test order. If you are unable to 

select test engines/equipment this way, 

you may ask us to approve an alternate 

plan, as long as you make the request 

before you start selecting engines/ 

equipment. 

(b) Assembling engines/equipment. 

Produce and assemble test engines/ 

equipment using your normal 

production and assembly process for 

that family. 

(1) Notify us directly if you make any 

change in your production, assembly, or 

quality control processes that might 

affect emissions between the time you 

receive the test order and the time you 

finish selecting test engines/equipment. 

(2) If you do not fully assemble 

engines/equipment at the specified 

location, we will describe in the test 

order how to select components to 

finish assembling the engines/ 

equipment. Assemble these components 

onto the test engines/equipment using 

your documented assembly and quality 

control procedures. 

(c) Modifying engines/equipment. 

Once an engine or piece of equipment 

is selected for testing, you may adjust, 

repair, prepare, or modify it or check its 

emissions only if one of the following is 

true: 

(1) You document the need for doing 

so in your procedures for assembling 

and inspecting all your production 

engines/equipment and make the action 

routine for all the engines/equipment in 

the family. 

(2) This subpart otherwise allows 

your action. 

(3) We approve your action in 

advance. 

(d) Engine/equipment malfunction. If 

an engine/equipment malfunction 

prevents further emission testing, ask us 

to approve your decision to either repair 

the engine or delete it from the test 

sequence. 

(e) Setting adjustable parameters. 

Before any test, we may adjust or 

require you to adjust any adjustable 

parameter to any setting within its 

physically adjustable range. 

(1) We may adjust or require you to 

adjust idle speed outside the physically 

adjustable range as needed until the 

engine has stabilized emission levels 

(see paragraph (f) of this section). We 

may ask you for information needed to 

establish an alternate minimum idle 

speed. 

(2) We may make or specify 

adjustments within the physically 

adjustable range by considering their 

effect on emission levels, as well as how 

likely it is someone will make such an 

adjustment with in-use engines/ 

equipment. 

(f) Stabilizing emission levels. (1) 

Before you test production-line engines/ 

equipment for exhaust emission, you 

may operate the engine/equipment to 

stabilize the exhaust emission levels. 

Using good engineering judgment, 

operate your engines/equipment in a 

way that represents the way production 

engines/equipment will be used. You 

may operate each engine or piece of 

equipment for no more than the greater 

of two periods: 

(i) 50 hours. 

(ii) The number of hours you operated 

your emission-data engine/equipment 

for certifying the family (see 40 CFR part 

1065, subpart E). 

(2) Use good engineering judgment 

and follow the standard-setting part to 

stabilize equipment for evaporative 

emissions, where appropriate. 

(g) Damage during shipment. If 

shipping the engine/equipment to a 

remote facility for testing under a 

selective enforcement audit makes 

necessary an adjustment or repair, you 

must wait until after the initial emission 

test to do this work. We may waive this 

requirement if the test would be 

impossible or unsafe, or if it would 

permanently damage the engine/ 

equipment. Report to us, in your written 

report under § 1068.450, all adjustments 

or repairs you make on test engines/ 

equipment before each test. 

(h) Shipping engines/equipment. If 

you need to ship engines/equipment to 

another facility for testing, make sure 

the test engines/equipment arrive at the 

test facility within 24 hours after being 

selected. You may ask that we allow 

more time if you are unable to do this. 

(i) Retesting after invalid tests. You 

may retest an engine or piece of 

equipment if you determine an emission 

test is invalid under the standard-setting 

part. Explain in your written report 

reasons for invalidating any test and the 

emission results from all tests. If you 

retest an engine or piece of equipment 

and, within ten days after testing, ask to 

substitute results of the new tests for the 

original ones, we will answer within ten 

days after we receive your information. 

(j) Retesting after reaching a fail 

decision. You may retest your engines/ 

equipment once a fail decision for the 

audit has been reached based on the 

first test on each engine or piece of 

equipment under § 1068.420(c). You 

may test each engine or piece of 

equipment up to a total of three times, 

but you must perform the same number 

of tests on each engine or piece of 

equipment. You may further operate the 

engine/equipment to stabilize emission 

levels before testing, subject to the 

provisions of paragraph (f) of this 

section. We may approve retesting at 

other times if you send us a request with 

satisfactory justification. 

175. Section 1068.415 is revised to 

read as follows: 

§ 1068.415 How do I test my engines/ 

equipment? 

(a) Use the test procedures specified 

in the standard-setting part for showing 

that your engines/equipment meet 

emission standards. The test order will 

give further testing instructions. 

(b) If no test cells are available at a 

given facility, you may make alternate 

testing arrangements with our approval. 

(c) Test at least two engines/ 

equipment in each 24-hour period 

(including void tests). However, if your 

projected U.S. nonroad sales within the 

family are less than 7,500 for the year, 

you may test a minimum of one per 24- 


sroberts on PROD1PC70 with PROPOSALS
28386 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

hour period. If you request and justify 

it, we may approve a lower testing rate. 

(d) For exhaust emissions, accumulate 

service on test engines/equipment at a 

minimum rate of 6 hours per engine or 

piece of equipment during each 24-hour 

period. The first 24-hour period for 

service accumulation begins when you 

finish preparing an engine or piece of 

equipment for testing. The minimum 

service accumulation rate does not 

apply on weekends or holidays. You 

may ask us to approve a lower service 

accumulation rate. We may require you 

to accumulate hours more rapidly than 

the minimum rate, as appropriate. Plan 

your service accumulation to allow 

testing at the rate specified in paragraph 

(c) of this section. Select operation for 

accumulating operating hours on your 

test engines/equipment to represent 

normal in-use operation for the family. 

(e) Test engines/equipment in the 

same order you select them. 

176. Section 1068.420 is revised to 

read as follows: 

§ 1068.420 How do I know when my family 

fails an SEA? 

(a) A failed engine or piece of 

equipment is one whose final 

deteriorated test results exceed an 

applicable emission standard for any 

regulated pollutant. 

(b) Continue testing engines/ 

equipment until you reach a pass 

decision for all pollutants or a fail 

decision for one pollutant. 

(c) You reach a pass decision for the 

SEA requirements when the number of 

failed engines/equipment is less than or 

equal to the pass decision number in 

Appendix A to this subpart for the total 

number of engines/equipment tested. 

You reach a fail decision for the SEA 

requirements when the number of failed 

engines/equipment is greater than or 

equal to the fail decision number in 

Appendix A to this subpart for the total 

number of engines/equipment you test. 

An acceptable quality level of 40 

percent is the basis for the pass or fail 

decision. 

(d) Consider test results in the same 

order as the engine/equipment testing 

sequence. 

(e) If you reach a pass decision for one 

pollutant, but need to continue testing 

for another pollutant, we will disregard 

these later test results for the pollutant 

with the pass decision. 

(f) Appendix A to this subpart lists 

multiple sampling plans. Use the 

sampling plan for the projected sales 

volume you reported in your 

application for the audited family. 

(g) We may choose to stop testing after 

any number of tests. 

(h) If we test some of your engines/ 

equipment in addition to your own 

testing, we may decide not to include 

your test results as official data for those 

engines/equipment if there is 

substantial disagreement between your 

testing and our testing. We will reinstate 

your data as valid if you show us that 

we made an error and your data are 

correct. 

(i) If we rely on our test data instead 

of yours, we will notify you in writing 

of our decision and the reasons we 

believe your facility is not appropriate 

for doing the tests we require under this 

subpart. You may request in writing that 

we consider your test results from the 

same facility for future testing if you 

show us that you have made changes to 

resolve the problem. 

177. Section 1068.425 is revised to 

read as follows: 

§ 1068.425 What happens if one of my 

production-line engines/equipment exceeds 

the emission standards? 

(a) If one of your production-line 

engines/equipment fails to meet one or 

more emission standards (see 

§ 1068.420), the certificate of conformity 

is automatically suspended for that 

engine or piece of equipment. You must 

take the following actions before your 

certificate of conformity can cover that 

engine or piece of equipment: 

(1) Correct the problem and retest the 

engine/equipment to show it complies 

with all emission standards. 

(2) Include in your written report a 

description of the test results and the 

remedy for each engine or piece of 

equipment (see § 1068.450). 

(b) You may at any time ask for a 

hearing to determine whether the tests 

and sampling methods were proper (see 

subpart G of this part). 

178. Section 1068.430 is revised to 

read as follows: 

§ 1068.430 What happens if a family fails 

an SEA? 

(a) We may suspend your certificate of 

conformity for a family if it fails the 

SEA under § 1068.420. The suspension 

may apply to all facilities producing 

engines/equipment from a family, even 

if you find noncompliant engines/ 

equipment only at one facility. 

(b) We will tell you in writing if we 

suspend your certificate in whole or in 

part. We will not suspend a certificate 

until at least 15 days after the family 

fails the SEA. The suspension is 

effective when you receive our notice. 

(c) Up to 15 days after we suspend the 

certificate for a family, you may ask for 

a hearing to determine whether the tests 

and sampling methods were proper (see 

subpart G of this part). If we agree before 

a hearing that we used erroneous 

information in deciding to suspend the 

certificate, we will reinstate the 

certificate. 

179. Section 1068.435 is revised to 

read as follows: 

§ 1068.435 May I sell engines/equipment 

from a family with a suspended certificate 

of conformity? 

You may sell engines/equipment that 

you produce after we suspend the 

family’s certificate of conformity only if 

one of the following occurs: 

(a) You test each engine or piece of 

equipment you produce and show it 

complies with emission standards that 

apply. 

(b) We conditionally reinstate the 

certificate for the family. We may do so 

if you agree to recall all the affected 

engines/equipment and remedy any 

noncompliance at no expense to the 

owner if later testing shows that 

engines/equipment in the family still do 

not comply. 

180. Section 1068.440 is amended by 

revising paragraph (b) to read as follows: 

§ 1068.440 How do I ask EPA to reinstate 

my suspended certificate? 

* * * * * 

(b) Give us data from production-line 

testing showing that engines/equipment 

in the remedied family comply with all 

the emission standards that apply. 

181. Section 1068.445 is revised to 

read as follows: 

§ 1068.445 When may EPA revoke my 

certificate under this subpart and how may 

I sell these engines/equipment again? 

(a) We may revoke your certificate for 

a family in the following cases: 

(1) You do not meet the reporting 

requirements under this subpart. 

(2) Your family fails an SEA and your 

proposed remedy to address a 

suspended certificate is inadequate to 

solve the problem or requires you to 

change the engine/equipment’s design 

or emission control system. 

(b) To sell engines/equipment from a 

family with a revoked certificate of 

conformity, you must modify the family 

and then show it complies with the 

applicable requirements. 

(1) If we determine your proposed 

design change may not control 

emissions for the engine/equipment’s 

full useful life, we will tell you within 

five working days after receiving your 

report. In this case we will decide 

whether production-line testing will be 

enough for us to evaluate the change or 

whether you need to do more testing. 

(2) Unless we require more testing, 

you may show compliance by testing 

production-line engines/equipment as 

described in this subpart. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28387 

(3) We will issue a new or updated 

certificate of conformity when you have 

met these requirements. 

182. Section 1068.450 is amended by 

revising paragraphs (a), (b), and (c) to 

read as follows: 

§ 1068.450 What records must I send to 

EPA? 

(a) Within 30 calendar days of the end 

of each audit, send us a report with the 

following information: 

(1) Describe any facility used to test 

production-line engines/equipment and 

state its location. 

(2) State the total U.S.-directed 

production volume and number of tests 

for each family. 

(3) Describe your test engines/ 

equipment, including the family’s 

identification and the engine/ 

equipment’s model year, build date, 

model number, identification number, 

and number of hours of operation before 

testing for each test engine or piece of 

equipment. 

(4) Identify where you accumulated 

hours of operation on the engines/ 

equipment and describe the procedure 

and schedule you used. 

(5) Provide the test number; the date, 

time and duration of testing; test 

procedure; initial test results before and 

after rounding; final test results; and 

final deteriorated test results for all 

tests. Provide the emission figures for all 

measured pollutants. Include 

information for both valid and invalid 

tests and the reason for any 

invalidation. 

(6) Describe completely and justify 

any nonroutine adjustment, 

modification, repair, preparation, 

maintenance, or test for the test engine/ 

equipment if you did not report it 

separately under this subpart. Include 

the results of any emission 

measurements, regardless of the 

procedure or type of equipment. 

(7) Report on each failed engine or 

piece of equipment as described in 

§ 1068.425. 

(b) We may ask you to add 

information to your written report, so 

we can determine whether your new 

engines/equipment conform with the 

requirements of this subpart. 

(c) An authorized representative of 

your company must sign the following 

statement: 

We submit this report under Sections 

208 and 213 of the Clean Air Act. Our 

testing conformed completely with the 

requirements of 40 CFR part 1068. We 

have not changed production processes 

or quality-control procedures for the 

family in a way that might affect the 

emission control from production 

engines/equipment. All the information 

in this report is true and accurate, to the 

best of my knowledge. I know of the 

penalties for violating the Clean Air Act 

and the regulations. (Authorized 

Company Representative) 

* * * * * 

183. Section 1068.455 is amended by 

revising paragraphs (d)(2), (d)(3), and (e) 

to read as follows: 

§ 1068.455 What records must I keep? 

* * * * * 

(d) * * * 

(2) The name of anyone who 

authorizes adjusting, repairing, 

preparing, or modifying a test engine/ 

equipment and the names of all 

supervisors who oversee this work. 

(3) If you shipped the engine/ 

equipment for testing, the date you 

shipped it, the associated storage or port 

facility, and the date the engine/ 

equipment arrived at the testing facility. 

* * * * * 

(e) If we ask, you must give us 

projected or actual production for a 

family. Include each assembly plant if 

you produce engines/equipment at more 

than one plant. 

* * * * * 

184. Appendix A to Subpart E is 

amended by revising Table A–1 and the 

heading and footnote for Table A–2 to 

read as follows: 

Appendix A to Subpart E of Part 1068—

Plans for Selective Enforcement 

Auditing 

* * * * * 

TABLE A–1.—SAMPLING PLAN CODE LETTER

Projected family sales Code letter 1

Minimum number of tests Maximum 

number of 

To pass To fail tests 

20–50 ............................................................................................................................... AA 3 5 20 

20–99 ............................................................................................................................... A 4 6 30 

100–299 ........................................................................................................................... B 5 6 40 

300–499 ........................................................................................................................... C 5 6 50 

500+ ................................................................................................................................. D 5 6 60 

1A manufacturer may optionally use either the sampling plan for code letter ‘‘AA’’ or sampling plan for code letter ‘‘A’’ for Selective Enforcement Audits of families with annual sales between 20 and 50 engines/equipment. Additionally, the manufacturer may switch between these plans 

during the audit. 

Table A–2.— Sampling Plans for 

Different Family Sales Volumes 

* * * * * 

aStage refers to the cumulative number of 

engines/equipment tested. 

185. The heading of subpart F is 

revised to read as follows: 

Subpart F—Reporting Defects and 

Recalling Engines/Equipment 

186. Section 1068.501 is revised to 

read as follows: 

§ 1068.501 How do I report emissionrelated defects? 

This section addresses the certificate 

holder’s responsibility to investigate 

and report emission-related defects in 

design, materials, or workmanship. The 

provisions of this section do not limit 

your liability under this part or the 

Clean Air Act. For example, selling an 

engine/equipment that does not 

conform to your application for 

certification is a violation of 

§ 1068.101(a)(1), independent of the 

requirements of this section. The 

requirements of this section apply 

separately to each certificate holder if 

there is more than one certificate holder 

for the equipment. 

(a) General provisions. As a certifying 

manufacturer, you must investigate in 

certain circumstances whether engines/ 

equipment that have been introduced 

into U.S. commerce under your 

certificate have incorrect, improperly 

installed, or otherwise defective 

emission-related components or 

systems. This includes defects in 

design, materials, or workmanship. You 

must also send us reports as specified 

by this section. 

(1) This section addresses defects for 

any of the following emission-related 


sroberts on PROD1PC70 with PROPOSALS
28388 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

components, or systems containing the 

following components: 

(i) Electronic control units, 

aftertreatment devices, fuel-metering 

components, EGR-system components, 

crankcase-ventilation valves, all 

components related to charge-air 

compression and cooling, and all 

sensors associated with any of these 

components. 

(ii) For engines and equipment subject 

to evaporative emission standards, fuel 

tanks, fuel caps, and fuel lines and 

connectors. 

(iii) Any other component whose 

primary purpose is to reduce emissions. 

(iv) Any other component whose 

failure might increase emissions of any 

pollutant without significantly 

degrading engine/equipment 

performance. 

(2) The requirements of this section 

relate to defects in any of the 

components or systems identified in 

paragraph (a)(1) of this section if the 

defects might affect any of the 

parameters or specifications in 

Appendix II of this part or might 

otherwise affect the emissions of any 

pollutant. 

(3) For the purposes of this section, 

defects do not include damage to 

emission-related components or systems 

(or maladjustment of parameters) caused 

by owners improperly maintaining or 

abusing their engines/equipment. 

(4) The requirements of this section 

do not apply to emission control 

information labels. Note however, that 

§ 1068.101(a)(1) prohibits the sale of 

engines/equipment without proper 

labels, which also applies to misprinted 

labels. 

(5) You must track the information 

specified in paragraph (b)(1) of this 

section. You must assess this data at 

least every three months to evaluate 

whether you exceed the thresholds 

specified in paragraphs (e) and (f) of this 

section. Where thresholds are based on 

a percentage of engines/equipment in 

the family, use actual sales figures for 

the whole model year when they 

become available. Use projected sales 

figures until the actual sales figures 

become available. You are not required 

to collect additional information other 

than that specified in paragraph (b)(1) of 

this section before reaching a threshold 

for an investigation specified in 

paragraph (e) of this section. 

(6) You may ask us to allow you to 

use alternate methods for tracking, 

investigating, reporting, and correcting 

emission-related defects. In your 

request, explain and demonstrate why 

you believe your alternate system will 

be at least as effective in the aggregate 

in tracking, identifying, investigating, 

evaluating, reporting, and correcting 

potential and actual emissions-related 

defects as the requirements in this 

section. In this case, provide all 

available data necessary to demonstrate 

why an alternate system is appropriate 

for your engines/equipment and how it 

will result in a system at least as 

effective as that required under this 

section. 

(7) If we determine that emissionrelated defects result in a substantial 

number of properly maintained and 

used engines/equipment not conforming 

to the regulations of this chapter during 

their useful life, we may order you to 

conduct a recall of your engines/ 

equipment (see § 1068.505). 

(8) Send all reports required by this 

section to the Designated Officer. 

(9) This section distinguishes between 

defects and possible defects. A possible 

defect exists anytime there is an 

indication that an emission-related 

component or system might have a 

defect, as described in paragraph (b)(1) 

of this section. 

(b) Investigation of possible defects. 

Investigate possible defects as follows: 

(1) If the number of engines/ 

equipment that have a possible defect, 

as defined by this paragraph (b)(1), 

exceeds a threshold specified in 

paragraph (e) of this section, you must 

conduct an investigation to determine if 

an emission-related component or 

system is actually defective. You must 

classify an engine/equipment 

component or system as having a 

possible defect if any of the following 

sources of information shows there is a 

significant possibility that a defect 

exists: 

(i) A warranty claim is submitted for 

the component, whether this is under 

your emission-related warranty or any 

other warranty. 

(ii) Your quality-assurance procedures 

suggest that a defect may exist. 

(iii) You receive any other 

information for which good engineering 

judgment would indicate the 

component or system may be defective, 

such as information from dealers, fieldservice personnel, equipment 

manufacturers, hotline complaints, or 

engine diagnostic systems. 

(2) If the number of shipped 

replacement parts for any individual 

component is high enough that good 

engineering judgment would indicate a 

significant possibility that a defect 

exists, you must conduct an 

investigation to determine if it is 

actually defective. Note that this 

paragraph (b)(2) does not require datatracking or recording provisions related 

to shipment of replacement parts. 

(3) Your investigation must be 

prompt, thorough, consider all relevant 

information, follow accepted scientific 

and engineering principles, and be 

designed to obtain all the information 

specified in paragraph (d) of this 

section. 

(4) Your investigation needs to 

consider possible defects that occur 

only within the useful life period, or 

within five years after the end of the 

model year, whichever is longer. 

(5) You must continue your 

investigation until you are able to show 

that there is no emission-related defect 

or you obtain all the information 

specified for a defect report in 

paragraph (d) of this section. Send us an 

updated defect report anytime you have 

significant additional information. 

(6) If a component with a possible 

defect is used in additional families or 

model years, you must investigate 

whether the component may be 

defective when used in these additional 

families or model years, and include 

these results in any defect report you 

send under paragraph (c) of this section. 

(7) If your initial investigation 

concludes that the number of engines/ 

equipment with a defect is fewer than 

any of the thresholds specified in 

paragraph (f) of this section, but other 

information later becomes available that 

may show that the number of engines/ 

equipment with a defect exceeds a 

threshold, then you must resume your 

investigation. If you resume an 

investigation, you must include the 

information from the earlier 

investigation to determine whether to 

send a defect report. 

(c) Reporting defects. You must send 

us a defect report in either of the 

following cases: 

(1) Your investigation shows that the 

number of engines/equipment with a 

defect exceeds a threshold specified in 

paragraph (f) of this section. Send the 

defect report within 21 days after the 

date you identify this number of 

defective engines/equipment. See 

paragraph (h) of this section for 

reporting requirements that apply if the 

number of engines/equipment with a 

defect does not exceed any of the 

thresholds in paragraph (f) of this 

section. 

(2) You know there are emissionrelated defects for a component or 

system in a number of engines/ 

equipment that exceeds a threshold 

specified in paragraph (f) of this section, 

regardless of how you obtain this 

information. Send the defect report 

within 21 days after you learn that the 

number of defects exceeds a threshold. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28389 

(d) Contents of a defect report. 

Include the following information in a 

defect report: 

(1) Your corporate name and a person 

to contact regarding this defect. 

(2) A description of the defect, 

including a summary of any engineering 

analyses and associated data, if 

available. 

(3) A description of the engines/ 

equipment that have the defect, 

including families, models, and range of 

production dates. 

(4) An estimate of the number and 

percentage of each class or category of 

affected engines/equipment that have 

the defect, and an explanation of how 

you determined this number. Describe 

any statistical methods you used under 

paragraph (g)(6) of this section. 

(5) An estimate of the defect’s impact 

on emissions, with an explanation of 

how you calculated this estimate and a 

summary of any emission data 

demonstrating the impact of the defect, 

if available. 

(6) A description of your plan for 

addressing the defect or an explanation 

of your reasons for not believing the 

defects must be addressed. 

(e) Thresholds for conducting a defect 

investigation. You must begin a defect 

investigation based on the following 

number of engines/equipment that may 

have the defect: 

(1) For engines/equipment with 

maximum engine power at or below 560 

kW: 

(i) For families with annual sales 

below 500 units: 50 or more engines/ 

equipment. 

(ii) For families with annual sales 

from 500 to 50,000 units: more than 10.0 

percent of the total number of engines/ 

equipment in the family. 

(iii) For families with annual sales 

from 50,000 to 550,000 units: more than 

the total number of engines/equipment 

represented by the following equation: 

Investigation threshold = 5,000 + 

(Production units¥50,000) × 0.04 

(iv) For families with annual sales 

above 550,000 units: 25,000 or more 

engines/equipment. 

(2) For engines/equipment with 

maximum engine power greater than 

560 kW: 

(i) For families with annual sales 

below 250 units: 25 or more engines/ 

equipment. 

(ii) For families with annual sales at 

or above 250 units: more than 10.0 

percent of the total number of engines/ 

equipment in the family. 

(f) Thresholds for filing a defect 

report. You must send a defect report 

based on the following number of 

engines/equipment that have the defect: 

(1) For engines/equipment with 

maximum engine power at or below 560 

kW: 

(i) For families with annual sales 

below 1,000 units: 20 or more engines/ 

equipment. 

(ii) For families with annual sales 

from 1,000 to 50,000 units: more than 

2.0 percent of the total number of 

engines/equipment in the family. 

(iii) For families with annual sales 

from 50,000 to 550,000 units: more than 

the total number of engines/equipment 

represented by the following equation: 

Reporting threshold = 1,000 + 

(Production units ¥50,000) × 0.01 

(iv) For families with annual sales 

above 550,000 units: 6,000 or more 

engines/equipment. 

(2) For engines/equipment with 

maximum engine power greater than 

560 kW: 

(i) For families with annual sales 

below 150 units: 10 or more engines/ 

equipment. 

(ii) For families with annual sales 

from 150 to 750 units: 15 or more 

engines/equipment. 

(iii) For families with annual sales 

above 750 units: more than 2.0 percent 

of the total number of engines/ 

equipment in the family. 

(g) How to count defects. (1) Track 

defects separately for each model year 

and family as much as possible. If 

information is not identifiable by model 

year or family, use good engineering 

judgment to evaluate whether you 

exceed a threshold in paragraph (e) or 

(f) of this section. Consider only your 

U.S.-directed production volume. 

(2) Within a family, track defects 

together for all components or systems 

that are the same in all material 

respects. If multiple companies 

separately supply a particular 

component or system, treat each 

company’s component or system as 

unique. 

(3) For engine-based standards, if a 

possible defect is not attributed to any 

specific part of the engine, consider the 

complete engine a distinct component 

for evaluating whether you exceed a 

threshold in paragraph (e) of this 

section. For equipment-based standards, 

if a possible defect is not attributed to 

any specific part of the equipment, 

consider the complete piece of 

equipment a distinct component for 

evaluating whether you exceed a 

threshold in paragraph (e) of this 

section. 

(4) If you correct defects before they 

reach the ultimate purchaser as a result 

of your quality-assurance procedures, 

count these against the investigation 

thresholds in paragraph (e) of this 

section unless you routinely check 

every engine or piece of equipment in 

the family. Do not count any corrected 

defects as actual defects under 

paragraph (f) of this section. 

(5) Use aggregated data from all the 

different sources identified in paragraph 

(b)(1) of this section to determine 

whether you exceed a threshold in 

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

(6) If information is readily available 

to conclude that the possible defects 

identified in paragraph (b)(1) of this 

section are actual defects, count these 

toward the reporting thresholds in 

paragraph (f) of this section. 

(7) During an investigation, use 

appropriate statistical methods to 

project defect rates for engines/ 

equipment that you are not otherwise 

able to evaluate. For example, if 75 

percent of the components replaced 

under warranty are available for 

evaluation, it would be appropriate to 

extrapolate known information on 

failure rates to the components that are 

unavailable for evaluation. Take steps as 

necessary to prevent bias in sampled 

data. Make adjusted calculations to take 

into account any bias that may remain. 

(h) Investigation reports. Once you 

trigger an investigation threshold under 

paragraph (e) of this section, you must 

report your progress and conclusions. In 

your reports, include the information 

specified in paragraph (d) of this 

section, or explain why the information 

is not relevant. Send us the following 

reports: 

(1) While you are investigating, send 

us mid-year and end-of-year reports to 

describe the methods you are using and 

the status of the investigation. Send 

these status reports no later than June 30 

and December 31 of each year. 

(2) If you find that the number of 

components or systems with an 

emission-related defect exceeds a 

threshold specified in paragraph (f) of 

this section, send us a report describing 

your findings within 21 days after the 

date you reach this conclusion. 

(3) If you find that the number of 

components or systems with an 

emission-related defect does not exceed 

any of the thresholds specified in 

paragraph (f) of this section, send us a 

final report supporting this conclusion. 

For example, you may exclude warranty 

claims that resulted from misdiagnosis 

and you may exclude defects caused by 

improper maintenance, improper use, or 

misfueling. Send this report within 21 

days after the date you reach this 

conclusion. 

(i) Future production. If you identify 

a design or manufacturing defect that 

prevents engines/equipment from 

meeting the requirements of this part, 


sroberts on PROD1PC70 with PROPOSALS
28390 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

you must correct the defect as soon as 

possible for future production of 

engines/equipment in every family 

affected by the defect. This applies 

without regard to whether you are 

required to conduct a defect 

investigation or submit a defect report 

under this section. 

187. Section 1068.505 is revised to 

read as follows: 

§ 1068.505 How does the recall program 

work? 

(a) If we make a determination that a 

substantial number of properly 

maintained and used engines/ 

equipment do not conform to the 

regulations of this chapter during their 

useful life, you must submit a plan to 

remedy the nonconformity of your 

engines/equipment. We will notify you 

of our determination in writing. Our 

notice will identify the class or category 

of engines/equipment affected and 

describe how we reached our 

conclusion. If this happens, you must 

meet the requirements and follow the 

instructions in this subpart. You must 

remedy at your expense noncompliant 

engines/equipment that have been 

properly maintained and used, as 

described in § 1068.510(a)(7). You may 

not transfer this expense to a dealer (or 

equipment manufacturer for enginebased standards) through a franchise or 

other agreement. 

(b) You may ask for a hearing if you 

disagree with our determination (see 

subpart G of this part). 

(c) Unless we withdraw the 

determination of noncompliance, you 

must respond to it by sending a 

remedial plan to the Designated Officer 

by the later of these two deadlines: 

(1) Within 60 days after we notify 

you. 

(2) Within 60 days after a hearing. 

(d) Once you have sold engines/ 

equipment to the ultimate purchaser, we 

may inspect or test the engines/ 

equipment only if the purchaser permits 

it, or if state or local inspection 

programs separately provide for it. 

(e) You may ask us to allow you to 

conduct your recall differently than 

specified in this subpart, consistent 

with section 207(c) of the Act (42 U.S.C. 

7541(c)). 

(f) You may do a voluntary recall 

under § 1068.535, unless we have made 

the determination described in 

§ 1068.535(a). 

(g) For purposes of recall, owner 

means someone who owns an engine or 

piece of equipment affected by a 

remedial plan. 

188. Section 1068.510 is revised to 

read as follows: 

§ 1068.510 How do I prepare and apply my 

remedial plan? 

(a) In your remedial plan, describe all 

of the following: 

(1) The class or category of engines/ 

equipment to be recalled, including the 

number of engines/equipment involved 

and the model year or other information 

needed to identify the engines/ 

equipment. 

(2) The modifications, alterations, 

repairs, corrections, adjustments, or 

other changes you will make to correct 

the affected engines/equipment. 

(3) A brief description of the studies, 

tests, and data that support the 

effectiveness of the remedy you propose 

to use. 

(4) The instructions you will send to 

those who will repair the engines/ 

equipment under the remedial plan. 

(5) How you will determine the 

owners’ names and addresses. 

(6) How you will notify owners; 

include copies of any notification 

letters. 

(7) The proper maintenance or use 

you will specify, if any, as a condition 

to be eligible for repair under the 

remedial plan. Describe how these 

specifications meet the provisions of 

paragraph (e) of this section. Describe 

how the owners should show they meet 

your conditions. 

(8) The steps owners must take for 

you to do the repair. You may set a date 

or a range of dates, specify the amount 

of time you need, and designate certain 

facilities to do the repairs. 

(9) Which company (or group) you 

will assign to do or manage the repairs. 

(10) If your employees or authorized 

warranty agents will not be doing the 

work, state who will and describe their 

qualifications. 

(11) How you will ensure an adequate 

and timely supply of parts. 

(12) The effect of proposed changes 

on fuel consumption, driveability, and 

safety of the engines/equipment you 

will recall; include a brief summary of 

the information supporting these 

conclusions. 

(13) How you intend to label the 

engines/equipment you repair and 

where you will place the label on the 

engine/equipment (see § 1068.515). 

(b) We may require you to add 

information to your remedial plan. 

(c) We may require you to test the 

proposed repair to show it will remedy 

the noncompliance. 

(d) Use all reasonable means to locate 

owners. We may require you to use 

government or commercial registration 

lists to get owners’ names and 

addresses, so your notice will be 

effective. 

(e) The maintenance or use that you 

specify as a condition for eligibility 

under the remedial plan may include 

only things you can show would cause 

noncompliance. Do not require use of a 

component or service identified by 

brand, trade, or corporate name, unless 

we approved this approach with your 

original certificate of conformity. Also, 

do not place conditions on who 

maintained the engine/equipment. 

(f) We may require you to adjust your 

repair plan if we determine owners 

would be without their engines/ 

equipment or equipment for an 

unreasonably long time. 

(g) We will tell you in writing within 

15 days of receiving your remedial plan 

whether we have approved or 

disapproved it. We will explain our 

reasons for any disapproval. 

(h) Begin notifying owners within 15 

days after we approve your remedial 

plan. If we hold a hearing, but do not 

change our position about the 

noncompliance, you must begin 

notifying owners within 60 days after 

we complete the hearing, unless we 

specify otherwise. 

189. Section 1068.515 is revised to 

read as follows: 

§ 1068.515 How do I mark or label repaired 

engines/equipment? 

(a) Attach a label to engines/ 

equipment you repair under the 

remedial plan. At your discretion, you 

may label or mark engines/equipment 

you inspect but do not repair. 

(b) Make the label from a durable 

material suitable for its planned 

location. Make sure no one can remove 

the label without destroying or defacing 

it. 

(c) On the label, designate the specific 

recall campaign and state where you 

repaired or inspected the engine/ 

equipment. 

(d) We may waive or modify the 

labeling requirements if we determine 

they are overly burdensome. 

190. Section 1068.520 is revised to 

read as follows: 

§ 1068.520 How do I notify affected 

owners? 

(a) Notify owners by first class mail, 

unless we say otherwise. We may 

require you to use certified mail. 

Include the following in your notice: 

(1) State: ‘‘The U.S. Environmental 

Protection Agency has determined that 

your engine/equipment may be emitting 

pollutants in excess of the federal 

emission standards, as defined in Title 

40 of the Code of Federal Regulations. 

These emission standards were 

established to protect the public health 

or welfare from air pollution.’’. 

(2) State that you (or someone you 

designate) will repair these engines/ 

equipment at your expense. 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28391 

(3) If we approved maintenance and 

use conditions in your remedial plan, 

state that you will make these repairs 

only if owners show their engines/ 

equipment meet the conditions for 

proper maintenance and use. Describe 

these conditions and how owners 

should prove their engines/equipment 

are eligible for repair. 

(4) Describe the components your 

repair will affect and say generally how 

you will repair the engines/equipment. 

(5) State that the engine/equipment, if 

not repaired, may fail an emission 

inspection test if state or local law 

requires one. 

(6) Describe any adverse effects on its 

performance or driveability that would 

be caused by not repairing the engine/ 

equipment. 

(7) Describe any adverse effects on the 

functions of other components that 

would be caused by not repairing the 

engine/equipment. 

(8) Specify the date you will start the 

repairs, the amount of time you will 

need to do them, and where you will do 

them. Include any other information 

owners may need to know. 

(9) Include a self-addressed card that 

owners can mail back if they have sold 

the engine/equipment; include a space 

for owners to write the name and 

address of a buyer. 

(10) State that owners should call you 

at a phone number you give to report 

any difficulty in obtaining repairs. 

(11) State: ‘‘To ensure your full 

protection under the emission warranty 

on your [engine/equipment] by federal 

law, and your right to participate in 

future recalls, we recommend you have 

your [engine/equipment] serviced as 

soon as possible. We may consider your 

not servicing it to be improper 

maintenance.’’. 

(b) We may require you to add 

information to your notice or to send 

more notices. 

(c) You may not in any 

communication with owners or dealers 

say or imply that your noncompliance 

does not exist or that it will not degrade 

air quality. 

191. Section 1068.525 is amended by 

revising paragraphs (b) and (c) to read 

as follows: 

§ 1068.525 What records must I send to 

EPA? 

* * * * * 

(b) From the time you begin to notify 

owners, send us a report within 25 days 

of the end of each calendar quarter. 

Send reports for six consecutive 

quarters or until all the engines/ 

equipment are inspected, whichever 

comes first. In these reports, identify the 

following: 

(1) The range of dates you needed to 

notify owners. 

(2) The total number of notices sent. 

(3) The number of engines/equipment 

you estimate fall under the remedial 

plan (explain how you determined this 

number). 

(4) The cumulative number of 

engines/equipment you inspected under 

the remedial plan. 

(5) The cumulative number of these 

engines/equipment you found needed 

the specified repair. 

(6) The cumulative number of these 

engines/equipment you have repaired. 

(7) The cumulative number of 

engines/equipment you determined to 

be unavailable due to exportation, theft, 

retirement, or other reasons (specify). 

(8) The cumulative number of 

engines/equipment you disqualified for 

not being properly maintained or used. 

(c) If your estimated number of 

engines/equipment falling under the 

remedial plan changes, change the 

estimate in your next report and add an 

explanation for the change. 

* * * * * 

192. Section 1068.530 is amended by 

revising paragraph (b) to read as follows: 

§ 1068.530 What records must I keep? 

* * * * * 

(b) Keep a record of the names and 

addresses of owners you notified. For 

each engine or piece of equipment, state 

whether you did any of the following: 

(1) Inspected the engine/equipment. 

(2) Disqualified the engine/equipment 

for not being properly maintained or 

used. 

(3) Completed the prescribed repairs. 

* * * * * 

193. Section 1068.535 is amended by 

revising the introductory text and 

paragraph (c) to read as follows: 

§ 1068.535 How can I do a voluntary recall 

for emission-related problems? 

If we have made a determination that 

a substantial number of properly 

maintained and used engines/ 

equipment do not conform to the 

regulations of this chapter during their 

useful life, you may not use a voluntary 

recall or other alternate means to meet 

your obligation to remedy the 

noncompliance. Thus, this section only 

applies where you learn that your 

family does not meet the requirements 

of this chapter and we have not made 

such a determination. 

* * * * * 

(c) From the time you start the recall 

campaign, send us a report within 25 

days of the end of each calendar quarter, 

following the guidelines in 

§ 1068.525(b). Send reports for six 

consecutive quarters or until all the 

engines/equipment are inspected, 

whichever comes first. 

* * * * * 

194. Appendix I to part 1068 is 

amended by revising paragraph I to read 

as follows: 

Appendix I to Part 1068—EmissionRelated Components 

* * * * * 

I. Emission-related components include 

any engine/equipment parts related to the 

following systems: 

1. Air-induction system. 

2. Fuel system, including evaporative 

emission controls. 

3. Ignition system. 

4. Exhaust gas recirculation systems. 

5. All components comprising the 

combustion chamber, including the piston, 

piston rings, block, head, and valves. 

* * * * * 

195. A new part 1074 is added to 

subchapter U of chapter I to read as 

follows: 

PART 1074—PREEMPTION OF STATE 

STANDARDS AND PROCEDURES FOR 

WAIVER OF FEDERAL PREEMPTION 

FOR NONROAD ENGINES AND 

NONROAD VEHICLES 

Subpart A—Applicability and General 

Provisions 

Sec. 

1074.1 Applicability. 

1074.5 Definitions. 

1074.10 Scope of preemption. 

1074.12 Scope of preemption—specific 

provisions for locomotives and 

locomotive engines. 

Subpart B—Procedures for Authorization 

1074.101 Procedures for California nonroad 

authorization requests. 

1074.105 Criteria for granting authorization. 

1074.110 Adoption of California standards 

by other States. 

1074.115 Relationship of Federal and State 

standards. 

Authority: 42 U.S.C. 7401–7671q. 

Subpart A—Applicability and General 

Provisions 

§ 1074.1 Applicability. 

The requirements of this part apply 

with respect to state and local standards 

and other requirements relating to the 

control of emissions from nonroad 

engines and nonroad vehicles. 

§ 1074.5 Definitions. 

The definitions in this section apply 

to this part. As used in this part, all 

undefined terms have the meaning the 

Act gives to them. The definitions 

follow: 

Act means the Clean Air Act, as 

amended, 42 U.S.C. 7401–7671q. 

Administrator means the 

Administrator of the Environmental 


sroberts on PROD1PC70 with PROPOSALS
28392 Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 

Protection Agency and any authorized 

representatives. 

Commercial means an activity 

engaged in as a vocation. 

Construction equipment or vehicle 

means any internal combustion enginepowered machine primarily used in 

construction and located on commercial 

construction sites. 

Engine used in a locomotive means 

either an engine placed in a locomotive 

to move other equipment, freight, or 

passenger traffic, or an engine mounted 

on a locomotive to provide auxiliary 

power. 

Farm equipment or vehicle means any 

internal combustion engine-powered 

machine primarily used in the 

commercial production and/or 

commercial harvesting of food, fiber, 

wood, or commercial organic products 

or for the processing of such products 

for further use on the farm. 

Locomotive means a piece of 

equipment meeting the definition of 

locomotive in 40 CFR 1033.901 that is 

propelled by a nonroad engine. 

New has the following meanings: 

(1) For locomotives, new has the 

meaning given in 40 CFR 1033.901. 

(2) For engines used in locomotives, 

new means an engine incorporated in 

(or intended to be incorporated in) in a 

new locomotive. 

(3) For other nonroad engines and 

equipment, new means a domestic or 

imported nonroad engine or nonroad 

vehicle the equitable or legal title to 

which has never been transferred to an 

ultimate purchaser. Where the equitable 

or legal title to an engine or vehicle is 

not transferred to an ultimate purchaser 

until after the engine or vehicle is 

placed into service, then the engine or 

vehicle will no longer be new once it is 

placed into service. A nonroad engine or 

vehicle is placed into service when it is 

used for its functional purposes. This 

paragraph (3) does not apply to 

locomotives or engines used in 

locomotives. 

Nonroad engine has the meaning 

given in 40 CFR 1068.30 

Primarily used means used 51 percent 

or more. 

States and localities means any or all 

of the states, commonwealths, and 

territories in the United States including 

the District of Columbia and any or all 

of their political subdivisions. 

Ultimate purchaser means the first 

person who in good faith purchases a 

new nonroad engine or new nonroad 

vehicle or equipment for purposes other 

than resale. 

United States has the meaning given 

in 40 CFR 1068.30. 

§ 1074.10 Scope of preemption. 

(a) States and localities are preempted 

from adopting or enforcing standards or 

other requirements relating to the 

control of emissions from new engines 

smaller than 175 horsepower that are 

primarily used in farm or construction 

equipment or vehicles, as defined in 

this part. For equipment that is used in 

applications in addition to farming or 

construction activities, if the equipment 

is primarily used as farm and/or 

construction equipment or vehicles (as 

defined in this part), it is considered 

farm or construction equipment or 

vehicles. 

(b) For nonroad engines or vehicles 

other than those described in paragraph 

(a) of this section and § 1074.12, States 

and localities are preempted from 

enforcing any standards or other 

requirements relating to control of 

emissions from nonroad engines or 

vehicles except as provided in subpart 

B of this part. 

§ 1074.12 Scope of preemption specific 

provisions for locomotives and locomotive 

engines. 

(a) States and localities are preempted 

from adopting or enforcing standards or 

other requirements relating to the 

control of emissions from new 

locomotives and new engines used in 

locomotives. 

(b) During a period equivalent in 

length to 133 percent of the useful life, 

expressed as MW-hrs (or miles where 

applicable), beginning at the point at 

which the locomotive or engine 

becomes new, those standards or other 

requirements which are preempted 

include, but are not limited to, the 

following: emission standards, 

mandatory fleet average standards, 

certification requirements, retrofit and 

aftermarket equipment requirements, 

and nonfederal in-use testing 

requirements. The standards and other 

requirements specified in the preceding 

sentence are preempted whether 

applicable to new or other locomotives 

or locomotive engines. 

Subpart B—Procedures for 

Authorization 

§ 1074.101 Procedures for California 

nonroad authorization requests. 

(a) California must request 

authorization from the Administrator to 

enforce its adopted standards and other 

requirements relating to control of 

emissions from nonroad engines or 

vehicles that are not preempted by 

§ 1074.10(a) or § 1074.12. The request 

must include the record on which the 

state rulemaking was based. 

(b) After receiving the authorization 

request, the Administrator will provide 

notice and opportunity for a public 

hearing regarding such requests. 

§ 1074.105 Criteria for granting 

authorization. 

(a) The Administrator will grant the 

authorization if California determines 

that its standards will be, in the 

aggregate, at least as protective of public 

health and welfare as otherwise 

applicable federal standards. 

(b) The authorization will not be 

granted if the Administrator finds that 

any of the following are true: 

(1) California’s determination is 

arbitrary and capricious. 

(2) California does not need such 

standards to meet compelling and 

extraordinary conditions. 

(3) The California standards and 

accompanying enforcement procedures 

are not consistent with section 209 of 

the Act (42 U.S.C. 7543). 

(c) In considering any request from 

California to authorize the state to adopt 

or enforce standards or other 

requirements relating to control of 

emissions from new nonroad sparkignition engines smaller than 50 

horsepower, the Administrator will give 

appropriate consideration to safety 

factors (including the potential 

increased risk of burn or fire) associated 

with compliance with the California 

standard. 

§ 1074.110 Adoption of California 

standards by other States. 

(a) Except as described in paragraph 

(b) of this section, any state other than 

California that has plan provisions 

approved under Part D of Title I of the 

Act (42 U.S.C. 7501 to 7515) may adopt 

and enforce emission standards for any 

period for nonroad engines and vehicles 

subject to the following requirements: 

(1) The state must provide notice to 

the Administrator that it has adopted 

such standards. 

(2) Such standards may not apply to 

new engines smaller than 175 

horsepower that are used in farm or 

construction equipment or vehicles, or 

to new locomotives or new engines used 

in locomotives. 

(3) Such standards and 

implementation and enforcement must 

be identical, for the period concerned, 

to the California standards authorized 

by the Administrator. 

(4) The state must adopt such 

standards at least two years before the 

standards first take effect. 

(5) California must have adopted such 

standards two years before the standards 

first take effect in the state that is 

adopting them under this section. 

(b) States and localities, other than the 

State of California, may not adopt or 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 72, No. 96 / Friday, May 18, 2007 / Proposed Rules 28393 

attempt to enforce any standard or other 

requirement applicable to the control of 

emissions from spark-ignition engines 

smaller than 50 horsepower, except 

standards or other requirements that 

were adopted by that state before 

September 1, 2003. 

§ 1074.115 Relationship of Federal and 

State standards. 

If state standards apply to a new 

nonroad engine or vehicle pursuant to 

authorization granted under section 209 

of the Act (42 U.S.C. 7543), compliance 

with such state standards will be treated 

as compliance with the otherwise 

applicable standards of this chapter for 

engines or vehicles introduced into 

commerce in that state. 

[FR Doc. 07–1998 Filed 5–17–07; 8:45 am] 

BILLING CODE 6560–50–P 


sroberts on PROD1PC70 with PROPOSALS